Company: WELPM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000107815-25-000204
Chunk: 147

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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)(54.0)Cost of natural gas sold(163.3)(123.5)(39.8)Other operation and maintenance (1)(385.7)(376.8)(8.9)Depreciation and amortization(307.2)(281.6)(25.6)Property and revenue taxes(60.5)(60.1)(0.4)Gross margin (GAAP)710.6 590.2 120.4 Other operation and maintenance (1)385.7 376.8 8.9 Depreciation and amortization307.2 281.6 25.6 Property and revenue taxes60.5 60.1 0.4 Utility margin (non-GAAP)$1,464.0 $1,308.7 $155.3 

(1)    Operating and maintenance expenses deemed to be directly attributable to our revenue-producing activities include plant operating and maintenance expenses related to our generating units; costs associated with the We Power generating units; and transmission, distribution and customer service expenses. These expenses are included in the above table to calculate gross margin as defined under GAAP. 

Gross margin (GAAP) at the utility segment increased $120.4 million during the six months ended June 30, 2025, compared with the same period in 2024, and utility margin (non-GAAP) increased $155.3 million during the six months ended June 30, 2025, compared with the same period in 2024. Both measures were driven by:

•A $125.6 million increase in margins driven by the impact of our rate order approved by the PSCW, effective January 1, 2025.

•A $36.5 million increase in margins related to higher retail sales volumes driven by the impact of colder weather during the six months ended June 30, 2025, compared with the same period in 2024. As measured by heating degree days, the six months ended June 30, 2025 were 28.9% colder than the same period in 2024. 

These increases in margins were partially offset by:

•A $2.8 million decrease in margins driven by higher ash removal and fuel handling costs at certain of our plants.

•Lower margins of $2.1 million related to wholesale volumes.

Additionally, the smaller increase in gross margin (GAAP) as compared with the increase in utility margin (