Company: WELPM
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000107815-25-000184
Chunk: 118

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 118
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 utility operations since the majority of prudently incurred fuel and purchased power costs, as well as prudently incurred natural gas costs, are passed through to customers in current rates. As a result, management uses utility margin internally when assessing the operating performance of our utility segment as this measure excludes the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of utility margin herein is intended to provide supplemental information for investors regarding our operating performance.

Our utility margin may not be comparable to similar measures presented by other companies. Furthermore, this measure is not intended to replace gross margin as determined in accordance with GAAP as an indicator of operating performance. Our utility segment discussion below includes a table that provides the calculation of both gross margin as determined in accordance with GAAP and utility margin, as well as a reconciliation between the two measures.

03/31/2025 Form 10-Q28Wisconsin Electric Power Company

Utility Segment Contribution to Net Income Attributed to Common Shareholder

The following table compares our utility segment's contribution to net income for the first quarter of 2025, with the same quarter in 2024, including favorable or better, "B", and unfavorable or worse, "W", variances.

Three Months Ended March 31(in millions)20252024B (W)Operating revenues$1,179.1 $1,038.8 $140.3 Operating expensesCost of sales (1)399.6 352.2 (47.4)Other operation and maintenance252.1 241.6 (10.5)Depreciation and amortization150.9 139.6 (11.3)Property and revenue taxes30.9 30.8 (0.1)Operating income345.6 274.6 71.0 Other income, net10.8 16.3 (5.5)Interest expense124.7 120.8 (3.9)Income before income taxes231.7 170.1 61.6 Income tax expense35.3 35.8 0.5 Preferred stock dividend requirements0.3 0.3 — Net income attributed to common shareholder$196.1 $134.0 $62.1 

(1)    Cost of sales includes fuel and purchased power and cost of natural gas sold.

The following table shows a breakdown of other operation and maintenance:

Three Months Ended March 31(in millions