Company: WELPM
Filing Date: 2025-03-27
Form Type: DEF 14C
Source: 0000107815-25-000155
Chunk: 196

Company: WISCONSIN ELECTRIC POWER CO
Filing Date: 2025-03-27
Form: DEF 14C
Chunk 196
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 Power Company |     | B-66 |     | 2024 Annual Financial Statements |

In December 2022, the PSCW issued a final written order approving electric, natural gas, and steam base rate increases, effective January 1, 2023. The final order reflected the following:

| 2023 base rate increase                              |     |       |       |         |   |     |       |
|:-----------------------------------------------------|:----|:------|------:|:--------|:--|:----|:------|
| Electric                                             |     | $     | 283.5 | million | / |     | 9.1%  |
| Gas                                                  |     | $     |  46.1 | million | / |     | 9.6%  |
| Steam                                                |     | $     |   7.6 | million | / |     | 35.3% |
| ROE                                                  |     | 9.8%  |       |         |   |     |       |
| Common equity component average on a financial basis |     | 53.0% |       |         |   |     |       |

In addition to the above, the final order included the following terms:

• We kept our then current earnings sharing mechanism, under which, if we earned above our authorized ROE: (i) we retained 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points was refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings was required to be refunded to ratepayers.

• We were required to complete an analysis of alternative recovery scenarios for generating units that will be retired prior to the end of their useful life.

• We were not allowed to propose any changes to our real time pricing rates for large commercial and industrial electric customers through the end of 2024.

• We were required to lower monthly residential and small commercial electric customer fixed charges by $1.00 from previously authorized rates.

• We were required to offer an additional voluntary renewable energy pilot for commercial and industrial customers.

• We were required to continue to work with PSCW staff and other interested parties to develop alternative low income assistance programs. We, along with WPS, also collectively contributed $4.0 million to the Keep Wisconsin Warm Fund.

• We were required to implement escrow accounting treatment for pension and