Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 97

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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31, 2025December 31, 2024(in millions)DerivativeAssetsDerivativeLiabilitiesDerivativeAssetsDerivativeLiabilitiesCurrentNatural gas contracts$27.8 $0.7 $10.0 $1.1 FTRs1.1 — 2.9 — Total current28.9 0.7 12.9 1.1 Long-termNatural gas contracts0.7 — 0.5 — Total$29.6 $0.7 $13.4 $1.1 Realized gains and losses on derivatives are primarily recorded in cost of sales upon settlement; however, they may be subsequently deferred for future rate recovery or refund as the gains and losses are included in our fuel and natural gas cost recovery mechanisms. Our estimated notional sales volumes and realized gains and losses were as follows:Three Months Ended March 31, 2025Three Months Ended March 31, 2024(in millions)VolumesGainsVolumesGains (Losses)Natural gas contracts18.2 Dth$1.5 22.9 Dth$(17.0)FTRs4.7 MWh1.0 4.9 MWh1.9 Total$2.5 $(15.1)On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At both March 31, 2025 and December 31, 2024, we had posted cash collateral of $4.9 million. These amounts were recorded on our balance sheets in other current assets. At March 31, 2025 and December 31, 2024, we had 

03/31/2025 Form 10-Q15Wisconsin Electric Power Company

also received cash collateral of $15.9 million and $2.8 million, respectively. These amounts were recorded on our balance sheets in other current liabilities. The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:March 31, 2025December 31, 2024(in millions)DerivativeAssetsDerivativeLiabilitiesDerivativeAssetsDerivativeLiabilitiesGross amount recognized on the balance sheet$29.6 $0.7 $13.