Company: WELPM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000107815-25-000105
Chunk: 103

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 103
---
 to a $500.0 million issuance in September 2022, and higher short-term debt interest rates. The increase was partially offset 

2024 Form 10-K43Wisconsin Electric Power Company

by higher AFUDC-Debt due to continued capital investment and lower interest expense on finance lease liabilities, primarily related to the We Power leases, as finance lease liabilities decrease each year as payments are made.

Income Tax Expense

Income tax expense increased $9.6 million during 2023, compared with 2022, primarily due to higher pre-tax income. This increase in income tax expense was partially offset by a $9.3 million increase in PTCs and a $4.7 million increase in income tax benefits associated with AFUDC-Equity, both driven by continued capital investment.

LIQUIDITY AND CAPITAL RESOURCES

Overview

We expect to maintain adequate liquidity to meet our cash requirements for operation of our business and implementation of our corporate strategy through internal generation of cash from operations and access to the capital markets.

The following discussion and analysis of our Liquidity and Capital Resources includes comparisons of our cash flows for the year ended December 31, 2024 with the year ended December 31, 2023. For a similar discussion that compares our cash flows for the year ended December 31, 2023 with the year ended December 31, 2022, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in Part II of our 2023 Annual Report on Form 10-K, which was filed with the SEC on February 22, 2024.

Cash Flows

The following table summarizes our cash flows during the years ended December 31:

(in millions)20242023Change in 2024 Over 2023Cash provided by (used in):Operating activities$1,264.5 $939.1 $325.4 Investing activities(1,537.7)(1,227.3)(310.4)Financing activities268.2 248.0 20.2 

Operating Activities

Net cash provided by operating activities increased $325.4 million during 2024, compared with 2023, driven by: 

•A $130.0 million increase in cash related to lower payments for other operation and maintenance expenses. During 2024, our payments were lower associated with previous commitments to charitable projects and operation and maintenance related to We Power and our