Company: WELPM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000107815-25-000207
Chunk: 9

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 as compared with the increase in utility margin (non-GAAP), was driven by the following items that are further described in Other Operating Expenses below:

•A $14.9 million increase in depreciation and amortization expense;

•A $12.7 million increase in property and revenues taxes; 

•A $5.1 million increase in transmission expense;

•A $4.6 million increase in electric and natural gas distribution expenses; and

•A $2.8 million increase in other operating and maintenance related to our power plants.

09/30/2025 Form 10-Q34Wisconsin Electric Power Company

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the utility segment increased $57.2 million during the third quarter of 2025, compared with the same quarter in 2024. The significant factors impacting the increase in other operating expenses were:

•A $14.9 million increase in depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.

•A $12.7 million increase in property and revenue taxes during the third quarter of 2025, compared with the same quarter in 2024, driven by a favorable 2024 adjustment related to a sales tax audit.

•A $10.6 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

•A $5.1 million increase in transmission expense as approved by the PSCW in our rate order, effective January 1, 2025. See the notes under the other operation and maintenance table above for more information. 

•A $4.6 million increase in electric and natural gas distribution expenses, driven by higher costs to maintain the distribution systems during the third quarter of 2025, compared with the same quarter in 2024.

•A $3.8 million increase in benefits expenses, driven by higher compensation costs.

•A $2.8 million increase in other operating and maintenance related to our power plants, partially driven by renewable generation facilities placed in service during 2025 and the fourth quarter of 2024.

Other Income, Net

Other income, net at the utility segment decreased $4.0 million during the third quarter of 2025, compared with the same quarter in 2024, driven by a $10.9 million negative impact from the non-service components of our net periodic pension and