Company: WELPM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000107815-25-000105
Chunk: 98

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 98
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ization573.7 525.0 479.7 48.7 45.3 Property and revenue taxes106.8 115.3 125.6 (8.5)(10.3)Utility margin (non-GAAP)$2,679.6 $2,593.6 $2,377.0 $86.0 $216.6 

(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. 

2024 Compared with 2023

Gross margin (GAAP) at the utility segment increased $78.7 million during 2024, compared with 2023, and utility margin (non-GAAP) increased $86.0 million during 2024, compared with 2023. Both measures were driven by:

•A $39.3 million year-over-year positive impact from collections of fuel and purchased power costs. Under the Wisconsin fuel rules, our margins are impacted by under- or over-collections of certain fuel and purchased power costs that are within a 2% price variance from the costs included in rates, and the remaining variance above or below the 2% is generally deferred for either future recovery from or refund to customers.

•A $14.9 million increase in margins driven by the impact of our limited rate case re-opener approved by the PSCW, effective January 1, 2024. This amount includes a negative impact from amortization of unprotected excess deferred tax benefits related to 2023, which was approved in a previous rate order from the PSCW and is offset in income taxes.

•A $12.7 million increase in margins related to higher retail sales volumes, driven by our electric residential and commercial and industrial customers during 2024, compared with 2023.

•A $6.9 million increase in revenues primarily related to third-party use of our assets. 

•Higher margins of $5.0 million related to wholesale sales volumes. 

•A $2.9 million increase in securitization revenues during 2024, compared with 2023, related to an environmental control charge collected from our retail electric distribution customers on behalf of WEPCo Environmental Trust. These revenues are offset in depreciation and