# EDGAR Filing Document

**Accession Number:** 0000107833
**File Stem:** 0000107833-26-000003
**Filing Date:** 2026-2
**Character Count:** 504050
**Document Hash:** bce4a9897be60758f14b4c23571be87e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000107833-26-000003.hdr.sgml**: 20260220

**ACCESSION NUMBER**: 0000107833-26-000003

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 154

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260220

**DATE AS OF CHANGE**: 20260220

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WISCONSIN PUBLIC SERVICE CORP
- **CENTRAL INDEX KEY:** 0000107833
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC & OTHER SERVICES COMBINED [4931]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 390715160
- **STATE OF INCORPORATION:** WI
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-03016
- **FILM NUMBER:** 26657459

**BUSINESS ADDRESS:**
- **STREET 1:** 700 NORTH ADAMS STREET
- **STREET 2:** PO BOX 19001
- **CITY:** GREEN BAY
- **STATE:** WI
- **ZIP:** 54307-9001
- **BUSINESS PHONE:** 9204331459

**MAIL ADDRESS:**
- **STREET 1:** 700 NORTH ADAMS STREET
- **STREET 2:** PO BOX 19001
- **CITY:** GREEN BAY
- **STATE:** WI
- **ZIP:** 54307-9001

?xml version='1.0' encoding='ASCII'? wps-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

**FORM 10-K** 

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

**OR**

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ___________________

---

| | | |
|:---|:---|:---|
| Commission<br>File Number | Registrant; State of Incorporation;<br>Address; and Telephone Number | IRS Employer<br>Identification No. |
| 001-03016 | **WISCONSIN PUBLIC SERVICE CORPORATION** | 39-0715160 |

---

(A Wisconsin Corporation)

2830 South Ashland Avenue

P.O. Box 19001

Green Bay, WI 54307-9001

(800) 450-7260

<u>Securities registered pursuant to Section 12(b) of the Act</u>:

None

<u>Securities registered pursuant to Section 12(g) of the Act</u>:

None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

------

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ | |
| Non-accelerated filer | ☒ | Smaller reporting company | Smaller reporting company | ☐ |
| | | Emerging growth company | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.&nbsp;&nbsp;&nbsp;&nbsp;☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.&nbsp;&nbsp;&nbsp;&nbsp; ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of June 30, 2025 (and currently), all of the common stock of Wisconsin Public Service Corporation is held by Integrys Holding, Inc., a wholly owned subsidiary of WEC Energy Group, Inc.

 <u>State the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant.</u>

None.

 Number of shares outstanding of each class of common stock, as of <br> <u>January 31, 2026</u>

Common Stock, $4 par value, 23,896,962 shares outstanding

The Registrant meets the conditions set forth in General Instructions I(1)(a) and (b) of Form 10-K and is therefore filing with the reduced disclosure format set forth in General Instruction I(2).

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**WISCONSIN PUBLIC SERVICE CORPORATION**

**ANNUAL REPORT ON FORM 10-K**

**For the Year Ended December 31, 2025**

**TABLE OF CONTENTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | | **Page** |
| <u>[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](#i301901e926ef452f991eaa0be03c223a_16)</u> | <u>[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](#i301901e926ef452f991eaa0be03c223a_16)</u> | <u>[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](#i301901e926ef452f991eaa0be03c223a_16)</u> | <u>[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](#i301901e926ef452f991eaa0be03c223a_16)</u> | <u>[CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](#i301901e926ef452f991eaa0be03c223a_16)</u> | <u>[1](#i301901e926ef452f991eaa0be03c223a_16)</u> |
| **<u>[PART I](#i301901e926ef452f991eaa0be03c223a_19)</u>** | | | | | <u>[4](#i301901e926ef452f991eaa0be03c223a_19)</u> |
| <u>[ITEM 1.](#i301901e926ef452f991eaa0be03c223a_22)</u> | <u>[BUSINESS](#i301901e926ef452f991eaa0be03c223a_22)</u> | <u>[BUSINESS](#i301901e926ef452f991eaa0be03c223a_22)</u> | <u>[BUSINESS](#i301901e926ef452f991eaa0be03c223a_22)</u> | <u>[BUSINESS](#i301901e926ef452f991eaa0be03c223a_22)</u> | <u>[4](#i301901e926ef452f991eaa0be03c223a_22)</u> |
| | <u>[A.](#i301901e926ef452f991eaa0be03c223a_25)</u> | <u>[INTRODUCTION](#i301901e926ef452f991eaa0be03c223a_25)</u> | <u>[INTRODUCTION](#i301901e926ef452f991eaa0be03c223a_25)</u> | <u>[INTRODUCTION](#i301901e926ef452f991eaa0be03c223a_25)</u> | <u>[4](#i301901e926ef452f991eaa0be03c223a_25)</u> |
| | <u>[B.](#i301901e926ef452f991eaa0be03c223a_28)</u> | <u>[UTILITY SEGMENT](#i301901e926ef452f991eaa0be03c223a_28)</u> | <u>[UTILITY SEGMENT](#i301901e926ef452f991eaa0be03c223a_28)</u> | <u>[UTILITY SEGMENT](#i301901e926ef452f991eaa0be03c223a_28)</u> | <u>[4](#i301901e926ef452f991eaa0be03c223a_28)</u> |
| | <u>[C.](#i301901e926ef452f991eaa0be03c223a_37)</u> | <u>[OTHER SEGMENT](#i301901e926ef452f991eaa0be03c223a_37)</u> | <u>[OTHER SEGMENT](#i301901e926ef452f991eaa0be03c223a_37)</u> | <u>[OTHER SEGMENT](#i301901e926ef452f991eaa0be03c223a_37)</u> | <u>[11](#i301901e926ef452f991eaa0be03c223a_37)</u> |
| | <u>[D.](#i301901e926ef452f991eaa0be03c223a_40)</u> | <u>[REGULATION](#i301901e926ef452f991eaa0be03c223a_40)</u> | <u>[REGULATION](#i301901e926ef452f991eaa0be03c223a_40)</u> | <u>[REGULATION](#i301901e926ef452f991eaa0be03c223a_40)</u> | <u>[11](#i301901e926ef452f991eaa0be03c223a_40)</u> |
| | <u>[E.](#i301901e926ef452f991eaa0be03c223a_43)</u> | <u>[ENVIRONMENTAL COMPLIANCE](#i301901e926ef452f991eaa0be03c223a_43)</u> | <u>[ENVIRONMENTAL COMPLIANCE](#i301901e926ef452f991eaa0be03c223a_43)</u> | <u>[ENVIRONMENTAL COMPLIANCE](#i301901e926ef452f991eaa0be03c223a_43)</u> | <u>[13](#i301901e926ef452f991eaa0be03c223a_43)</u> |
| | <u>[F.](#i301901e926ef452f991eaa0be03c223a_46)</u> | <u>[HUMAN CAPITAL](#i301901e926ef452f991eaa0be03c223a_46)</u> | <u>[HUMAN CAPITAL](#i301901e926ef452f991eaa0be03c223a_46)</u> | <u>[HUMAN CAPITAL](#i301901e926ef452f991eaa0be03c223a_46)</u> | <u>[13](#i301901e926ef452f991eaa0be03c223a_46)</u> |
| <u>[ITEM 1A.](#i301901e926ef452f991eaa0be03c223a_49)</u> | <u>[RISK FACTORS](#i301901e926ef452f991eaa0be03c223a_49)</u> | <u>[RISK FACTORS](#i301901e926ef452f991eaa0be03c223a_49)</u> | <u>[RISK FACTORS](#i301901e926ef452f991eaa0be03c223a_49)</u> | <u>[RISK FACTORS](#i301901e926ef452f991eaa0be03c223a_49)</u> | <u>[15](#i301901e926ef452f991eaa0be03c223a_49)</u> |
| <u>[ITEM 1B.](#i301901e926ef452f991eaa0be03c223a_52)</u> | <u>[UNRESOLVED STAFF COMMENTS](#i301901e926ef452f991eaa0be03c223a_52)</u> | <u>[UNRESOLVED STAFF COMMENTS](#i301901e926ef452f991eaa0be03c223a_52)</u> | <u>[UNRESOLVED STAFF COMMENTS](#i301901e926ef452f991eaa0be03c223a_52)</u> | <u>[UNRESOLVED STAFF COMMENTS](#i301901e926ef452f991eaa0be03c223a_52)</u> | <u>[26](#i301901e926ef452f991eaa0be03c223a_52)</u> |
| <u>[ITEM 1C.](#i301901e926ef452f991eaa0be03c223a_55)</u> | <u>[CYBERSECURITY](#i301901e926ef452f991eaa0be03c223a_55)</u> | <u>[CYBERSECURITY](#i301901e926ef452f991eaa0be03c223a_55)</u> | <u>[CYBERSECURITY](#i301901e926ef452f991eaa0be03c223a_55)</u> | <u>[CYBERSECURITY](#i301901e926ef452f991eaa0be03c223a_55)</u> | <u>[26](#i301901e926ef452f991eaa0be03c223a_55)</u> |
| <u>[ITEM 2.](#i301901e926ef452f991eaa0be03c223a_58)</u> | <u>[PROPERTIES](#i301901e926ef452f991eaa0be03c223a_58)</u> | <u>[PROPERTIES](#i301901e926ef452f991eaa0be03c223a_58)</u> | <u>[PROPERTIES](#i301901e926ef452f991eaa0be03c223a_58)</u> | <u>[PROPERTIES](#i301901e926ef452f991eaa0be03c223a_58)</u> | <u>[27](#i301901e926ef452f991eaa0be03c223a_58)</u> |
| <u>[ITEM 3.](#i301901e926ef452f991eaa0be03c223a_61)</u> | <u>[LEGAL PROCEEDINGS](#i301901e926ef452f991eaa0be03c223a_61)</u> | <u>[LEGAL PROCEEDINGS](#i301901e926ef452f991eaa0be03c223a_61)</u> | <u>[LEGAL PROCEEDINGS](#i301901e926ef452f991eaa0be03c223a_61)</u> | <u>[LEGAL PROCEEDINGS](#i301901e926ef452f991eaa0be03c223a_61)</u> | <u>[29](#i301901e926ef452f991eaa0be03c223a_61)</u> |
| <u>[ITEM 4.](#i301901e926ef452f991eaa0be03c223a_64)</u> | <u>[MINE SAFETY DISCLOSURES](#i301901e926ef452f991eaa0be03c223a_64)</u> | <u>[MINE SAFETY DISCLOSURES](#i301901e926ef452f991eaa0be03c223a_64)</u> | <u>[MINE SAFETY DISCLOSURES](#i301901e926ef452f991eaa0be03c223a_64)</u> | <u>[MINE SAFETY DISCLOSURES](#i301901e926ef452f991eaa0be03c223a_64)</u> | <u>[29](#i301901e926ef452f991eaa0be03c223a_64)</u> |
| **<u>[PART II](#i301901e926ef452f991eaa0be03c223a_67)</u>** | **<u>[PART II](#i301901e926ef452f991eaa0be03c223a_67)</u>** | **<u>[PART II](#i301901e926ef452f991eaa0be03c223a_67)</u>** | **<u>[PART II](#i301901e926ef452f991eaa0be03c223a_67)</u>** | **<u>[PART II](#i301901e926ef452f991eaa0be03c223a_67)</u>** | <u>[30](#i301901e926ef452f991eaa0be03c223a_67)</u> |
| <u>[ITEM 5.](#i301901e926ef452f991eaa0be03c223a_70)</u> | <u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#i301901e926ef452f991eaa0be03c223a_70)</u> | <u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#i301901e926ef452f991eaa0be03c223a_70)</u> | <u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#i301901e926ef452f991eaa0be03c223a_70)</u> | <u>[MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](#i301901e926ef452f991eaa0be03c223a_70)</u> | <u>[30](#i301901e926ef452f991eaa0be03c223a_70)</u> |
| <u>[ITEM 6.](#i301901e926ef452f991eaa0be03c223a_73)</u> | <u>[RESERVED](#i301901e926ef452f991eaa0be03c223a_73)</u> | <u>[RESERVED](#i301901e926ef452f991eaa0be03c223a_73)</u> | <u>[RESERVED](#i301901e926ef452f991eaa0be03c223a_73)</u> | <u>[RESERVED](#i301901e926ef452f991eaa0be03c223a_73)</u> | <u>[30](#i301901e926ef452f991eaa0be03c223a_73)</u> |
| <u>[ITEM 7.](#i301901e926ef452f991eaa0be03c223a_76)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i301901e926ef452f991eaa0be03c223a_76)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i301901e926ef452f991eaa0be03c223a_76)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i301901e926ef452f991eaa0be03c223a_76)</u> | <u>[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#i301901e926ef452f991eaa0be03c223a_76)</u> | <u>[30](#i301901e926ef452f991eaa0be03c223a_76)</u> |
| <u>[ITEM 7A.](#i301901e926ef452f991eaa0be03c223a_202)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i301901e926ef452f991eaa0be03c223a_202)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i301901e926ef452f991eaa0be03c223a_202)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i301901e926ef452f991eaa0be03c223a_202)</u> | <u>[QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#i301901e926ef452f991eaa0be03c223a_202)</u> | <u>[50](#i301901e926ef452f991eaa0be03c223a_202)</u> |
| <u>[ITEM 8.](#i301901e926ef452f991eaa0be03c223a_205)</u> | <u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i301901e926ef452f991eaa0be03c223a_205)</u> | <u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i301901e926ef452f991eaa0be03c223a_205)</u> | <u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i301901e926ef452f991eaa0be03c223a_205)</u> | <u>[FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#i301901e926ef452f991eaa0be03c223a_205)</u> | <u>[51](#i301901e926ef452f991eaa0be03c223a_205)</u> |
| | <u>[A.](#i301901e926ef452f991eaa0be03c223a_208)</u> | <u>[Report of Independent Registered Public Accounting Firm](#i301901e926ef452f991eaa0be03c223a_208)</u> | <u>[Report of Independent Registered Public Accounting Firm](#i301901e926ef452f991eaa0be03c223a_208)</u> | <u>[Report of Independent Registered Public Accounting Firm](#i301901e926ef452f991eaa0be03c223a_208)</u> | <u>[51](#i301901e926ef452f991eaa0be03c223a_208)</u> |
| | <u>[B.](#i301901e926ef452f991eaa0be03c223a_211)</u> | <u>[Income Statements](#i301901e926ef452f991eaa0be03c223a_211)</u> | <u>[Income Statements](#i301901e926ef452f991eaa0be03c223a_211)</u> | <u>[Income Statements](#i301901e926ef452f991eaa0be03c223a_211)</u> | <u>[53](#i301901e926ef452f991eaa0be03c223a_211)</u> |
| | <u>[C.](#i301901e926ef452f991eaa0be03c223a_214)</u> | <u>[Balance Sheets](#i301901e926ef452f991eaa0be03c223a_214)</u> | <u>[Balance Sheets](#i301901e926ef452f991eaa0be03c223a_214)</u> | <u>[Balance Sheets](#i301901e926ef452f991eaa0be03c223a_214)</u> | <u>[54](#i301901e926ef452f991eaa0be03c223a_214)</u> |
| | <u>[D.](#i301901e926ef452f991eaa0be03c223a_217)</u> | <u>[Statements of Cash Flows](#i301901e926ef452f991eaa0be03c223a_217)</u> | <u>[Statements of Cash Flows](#i301901e926ef452f991eaa0be03c223a_217)</u> | <u>[Statements of Cash Flows](#i301901e926ef452f991eaa0be03c223a_217)</u> | <u>[55](#i301901e926ef452f991eaa0be03c223a_217)</u> |
| | <u>[E.](#i301901e926ef452f991eaa0be03c223a_220)</u> | <u>[Statements of Equity](#i301901e926ef452f991eaa0be03c223a_220)</u> | <u>[Statements of Equity](#i301901e926ef452f991eaa0be03c223a_220)</u> | <u>[Statements of Equity](#i301901e926ef452f991eaa0be03c223a_220)</u> | <u>[56](#i301901e926ef452f991eaa0be03c223a_220)</u> |
| | <u>[F.](#i301901e926ef452f991eaa0be03c223a_223)</u> | <u>[Notes to Financial Statements](#i301901e926ef452f991eaa0be03c223a_223)</u> | <u>[Notes to Financial Statements](#i301901e926ef452f991eaa0be03c223a_223)</u> | <u>[Notes to Financial Statements](#i301901e926ef452f991eaa0be03c223a_223)</u> | <u>[57](#i301901e926ef452f991eaa0be03c223a_223)</u> |
| | | <u>[Note 1](#i301901e926ef452f991eaa0be03c223a_226)</u> | <u>[Summary of Significant Accounting Policies](#i301901e926ef452f991eaa0be03c223a_226)</u> | <u>[57](#i301901e926ef452f991eaa0be03c223a_226)</u> | |
| | | <u>[Note 2](#i301901e926ef452f991eaa0be03c223a_295)</u> | <u>[Acquisitions](#i301901e926ef452f991eaa0be03c223a_295)</u> | <u>[65](#i301901e926ef452f991eaa0be03c223a_295)</u> | |
| | | <u>[Note 3](#i301901e926ef452f991eaa0be03c223a_298)</u> | <u>[Related Parties](#i301901e926ef452f991eaa0be03c223a_298)</u> | <u>[65](#i301901e926ef452f991eaa0be03c223a_298)</u> | |
| | | <u>[Note 4](#i301901e926ef452f991eaa0be03c223a_301)</u> | <u>[Operating Revenues](#i301901e926ef452f991eaa0be03c223a_301)</u> | <u>[67](#i301901e926ef452f991eaa0be03c223a_301)</u> | |
| | | <u>[Note 5](#i301901e926ef452f991eaa0be03c223a_304)</u> | <u>[Credit Losses](#i301901e926ef452f991eaa0be03c223a_304)</u> | <u>[68](#i301901e926ef452f991eaa0be03c223a_304)</u> | |
| | | <u>[Note 6](#i301901e926ef452f991eaa0be03c223a_307)</u> | <u>[Regulatory Assets and Liabilities](#i301901e926ef452f991eaa0be03c223a_307)</u> | <u>[69](#i301901e926ef452f991eaa0be03c223a_307)</u> | |
| | | <u>[Note 7](#i301901e926ef452f991eaa0be03c223a_310)</u> | <u>[Property, Plant, and Equipment](#i301901e926ef452f991eaa0be03c223a_310)</u> | <u>[70](#i301901e926ef452f991eaa0be03c223a_310)</u> | |
| | | <u>[Note 8](#i301901e926ef452f991eaa0be03c223a_313)</u> | <u>[Jointly-Owned Utility Facilities](#i301901e926ef452f991eaa0be03c223a_313)</u> | <u>[71](#i301901e926ef452f991eaa0be03c223a_313)</u> | |
| | | <u>[Note 9](#i301901e926ef452f991eaa0be03c223a_316)</u> | <u>[Asset Retirement Obligations](#i301901e926ef452f991eaa0be03c223a_316)</u> | <u>[72](#i301901e926ef452f991eaa0be03c223a_316)</u> | |
| | | <u>[Note 10](#i301901e926ef452f991eaa0be03c223a_319)</u> | <u>[Goodwill and Intangible Assets](#i301901e926ef452f991eaa0be03c223a_319)</u> | <u>[72](#i301901e926ef452f991eaa0be03c223a_319)</u> | |
| | | <u>[Note 11](#i301901e926ef452f991eaa0be03c223a_322)</u> | <u>[Common Equity](#i301901e926ef452f991eaa0be03c223a_322)</u> | <u>[73](#i301901e926ef452f991eaa0be03c223a_322)</u> | |
| | | <u>[Note 12](#i301901e926ef452f991eaa0be03c223a_325)</u> | <u>[Preferred Stock](#i301901e926ef452f991eaa0be03c223a_325)</u> | <u>[75](#i301901e926ef452f991eaa0be03c223a_325)</u> | |
| | | <u>[Note 13](#i301901e926ef452f991eaa0be03c223a_328)</u> | <u>[Short-Term Debt and Lines of Credit](#i301901e926ef452f991eaa0be03c223a_328)</u> | <u>[75](#i301901e926ef452f991eaa0be03c223a_328)</u> | |
| | | <u>[Note 14](#i301901e926ef452f991eaa0be03c223a_331)</u> | <u>[Long-Term Debt](#i301901e926ef452f991eaa0be03c223a_331)</u> | <u>[76](#i301901e926ef452f991eaa0be03c223a_331)</u> | |
| | | <u>[Note 15](#i301901e926ef452f991eaa0be03c223a_334)</u> | <u>[Leases](#i301901e926ef452f991eaa0be03c223a_334)</u> | <u>[76](#i301901e926ef452f991eaa0be03c223a_334)</u> | |
| | | <u>[Note 16](#i301901e926ef452f991eaa0be03c223a_337)</u> | <u>[Income Taxes](#i301901e926ef452f991eaa0be03c223a_337)</u> | <u>[78](#i301901e926ef452f991eaa0be03c223a_337)</u> | |
| | | <u>[Note 17](#i301901e926ef452f991eaa0be03c223a_340)</u> | <u>[Fair Value Measurements](#i301901e926ef452f991eaa0be03c223a_340)</u> | <u>[80](#i301901e926ef452f991eaa0be03c223a_340)</u> | |
| | | <u>[Note 18](#i301901e926ef452f991eaa0be03c223a_343)</u> | <u>[Derivative Instruments](#i301901e926ef452f991eaa0be03c223a_343)</u> | <u>[81](#i301901e926ef452f991eaa0be03c223a_343)</u> | |
| | | <u>[Note 19](#i301901e926ef452f991eaa0be03c223a_346)</u> | <u>[Employee Benefits](#i301901e926ef452f991eaa0be03c223a_346)</u> | <u>[82](#i301901e926ef452f991eaa0be03c223a_346)</u> | |
| | | <u>[Note 20](#i301901e926ef452f991eaa0be03c223a_349)</u> | <u>[Segment Information](#i301901e926ef452f991eaa0be03c223a_349)</u> | <u>[86](#i301901e926ef452f991eaa0be03c223a_349)</u> | |

---

*2025 Form 10-K* i *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | <u>[Note 21](#i301901e926ef452f991eaa0be03c223a_352)</u> | <u>[Commitments and Contingencies](#i301901e926ef452f991eaa0be03c223a_352)</u> | <u>[88](#i301901e926ef452f991eaa0be03c223a_352)</u> | |
| | | <u>[Note 22](#i301901e926ef452f991eaa0be03c223a_355)</u> | <u>[Supplemental Cash Flow Information](#i301901e926ef452f991eaa0be03c223a_355)</u> | <u>[93](#i301901e926ef452f991eaa0be03c223a_355)</u> | |
| | | <u>[Note 23](#i301901e926ef452f991eaa0be03c223a_358)</u> | <u>[Regulatory Environment](#i301901e926ef452f991eaa0be03c223a_358)</u> | <u>[93](#i301901e926ef452f991eaa0be03c223a_358)</u> | |
| | | <u>[Note 24](#i301901e926ef452f991eaa0be03c223a_364)</u> | <u>[Other Income, Net](#i301901e926ef452f991eaa0be03c223a_364)</u> | <u>[94](#i301901e926ef452f991eaa0be03c223a_364)</u> | |
| | | <u>[Note 25](#i301901e926ef452f991eaa0be03c223a_370)</u> | <u>[New Accounting Pronouncements](#i301901e926ef452f991eaa0be03c223a_370)</u> | <u>[95](#i301901e926ef452f991eaa0be03c223a_370)</u> | |
| <u>[ITEM 9.](#i301901e926ef452f991eaa0be03c223a_373)</u> | <u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#i301901e926ef452f991eaa0be03c223a_373)</u> | <u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#i301901e926ef452f991eaa0be03c223a_373)</u> | <u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#i301901e926ef452f991eaa0be03c223a_373)</u> | <u>[CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#i301901e926ef452f991eaa0be03c223a_373)</u> | <u>[96](#i301901e926ef452f991eaa0be03c223a_373)</u> |
| <u>[ITEM 9A.](#i301901e926ef452f991eaa0be03c223a_376)</u> | <u>[CONTROLS AND PROCEDURES](#i301901e926ef452f991eaa0be03c223a_376)</u> | <u>[CONTROLS AND PROCEDURES](#i301901e926ef452f991eaa0be03c223a_376)</u> | <u>[CONTROLS AND PROCEDURES](#i301901e926ef452f991eaa0be03c223a_376)</u> | <u>[CONTROLS AND PROCEDURES](#i301901e926ef452f991eaa0be03c223a_376)</u> | <u>[96](#i301901e926ef452f991eaa0be03c223a_376)</u> |
| <u>[ITEM 9B.](#i301901e926ef452f991eaa0be03c223a_379)</u> | <u>[OTHER INFORMATION](#i301901e926ef452f991eaa0be03c223a_379)</u> | <u>[OTHER INFORMATION](#i301901e926ef452f991eaa0be03c223a_379)</u> | <u>[OTHER INFORMATION](#i301901e926ef452f991eaa0be03c223a_379)</u> | <u>[OTHER INFORMATION](#i301901e926ef452f991eaa0be03c223a_379)</u> | <u>[96](#i301901e926ef452f991eaa0be03c223a_379)</u> |
| <u>[ITEM 9C.](#i301901e926ef452f991eaa0be03c223a_382)</u> | <u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i301901e926ef452f991eaa0be03c223a_382)</u> | <u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i301901e926ef452f991eaa0be03c223a_382)</u> | <u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i301901e926ef452f991eaa0be03c223a_382)</u> | <u>[DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#i301901e926ef452f991eaa0be03c223a_382)</u> | <u>[96](#i301901e926ef452f991eaa0be03c223a_382)</u> |
| **<u>[PART III](#i301901e926ef452f991eaa0be03c223a_385)</u>** | **<u>[PART III](#i301901e926ef452f991eaa0be03c223a_385)</u>** | **<u>[PART III](#i301901e926ef452f991eaa0be03c223a_385)</u>** | **<u>[PART III](#i301901e926ef452f991eaa0be03c223a_385)</u>** | **<u>[PART III](#i301901e926ef452f991eaa0be03c223a_385)</u>** | <u>[97](#i301901e926ef452f991eaa0be03c223a_385)</u> |
| <u>[ITEM 10.](#i301901e926ef452f991eaa0be03c223a_388)</u> | <u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT](#i301901e926ef452f991eaa0be03c223a_388)</u> | <u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT](#i301901e926ef452f991eaa0be03c223a_388)</u> | <u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT](#i301901e926ef452f991eaa0be03c223a_388)</u> | <u>[DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT](#i301901e926ef452f991eaa0be03c223a_388)</u> | <u>[97](#i301901e926ef452f991eaa0be03c223a_388)</u> |
| <u>[ITEM 11.](#i301901e926ef452f991eaa0be03c223a_391)</u> | <u>[EXECUTIVE COMPENSATION](#i301901e926ef452f991eaa0be03c223a_391)</u> | <u>[EXECUTIVE COMPENSATION](#i301901e926ef452f991eaa0be03c223a_391)</u> | <u>[EXECUTIVE COMPENSATION](#i301901e926ef452f991eaa0be03c223a_391)</u> | <u>[EXECUTIVE COMPENSATION](#i301901e926ef452f991eaa0be03c223a_391)</u> | <u>[97](#i301901e926ef452f991eaa0be03c223a_391)</u> |
| <u>[ITEM 12.](#i301901e926ef452f991eaa0be03c223a_394)</u> | <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#i301901e926ef452f991eaa0be03c223a_394)</u> | <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#i301901e926ef452f991eaa0be03c223a_394)</u> | <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#i301901e926ef452f991eaa0be03c223a_394)</u> | <u>[SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#i301901e926ef452f991eaa0be03c223a_394)</u> | <u>[97](#i301901e926ef452f991eaa0be03c223a_394)</u> |
| <u>[ITEM 13.](#i301901e926ef452f991eaa0be03c223a_397)</u> | <u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i301901e926ef452f991eaa0be03c223a_397)</u> | <u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i301901e926ef452f991eaa0be03c223a_397)</u> | <u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i301901e926ef452f991eaa0be03c223a_397)</u> | <u>[CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#i301901e926ef452f991eaa0be03c223a_397)</u> | <u>[97](#i301901e926ef452f991eaa0be03c223a_397)</u> |
| <u>[ITEM 14.](#i301901e926ef452f991eaa0be03c223a_400)</u> | <u>[PRINCIPAL ACCOUNTING FEES AND SERVICES](#i301901e926ef452f991eaa0be03c223a_400)</u> | <u>[PRINCIPAL ACCOUNTING FEES AND SERVICES](#i301901e926ef452f991eaa0be03c223a_400)</u> | <u>[PRINCIPAL ACCOUNTING FEES AND SERVICES](#i301901e926ef452f991eaa0be03c223a_400)</u> | <u>[PRINCIPAL ACCOUNTING FEES AND SERVICES](#i301901e926ef452f991eaa0be03c223a_400)</u> | <u>[97](#i301901e926ef452f991eaa0be03c223a_400)</u> |
| **<u>[PART IV](#i301901e926ef452f991eaa0be03c223a_403)</u>** | **<u>[PART IV](#i301901e926ef452f991eaa0be03c223a_403)</u>** | **<u>[PART IV](#i301901e926ef452f991eaa0be03c223a_403)</u>** | **<u>[PART IV](#i301901e926ef452f991eaa0be03c223a_403)</u>** | **<u>[PART IV](#i301901e926ef452f991eaa0be03c223a_403)</u>** | <u>[99](#i301901e926ef452f991eaa0be03c223a_403)</u> |
| <u>[ITEM 15.](#i301901e926ef452f991eaa0be03c223a_406)</u> | <u>[EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#i301901e926ef452f991eaa0be03c223a_406)</u> | <u>[EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#i301901e926ef452f991eaa0be03c223a_406)</u> | <u>[EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#i301901e926ef452f991eaa0be03c223a_406)</u> | <u>[EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](#i301901e926ef452f991eaa0be03c223a_406)</u> | <u>[99](#i301901e926ef452f991eaa0be03c223a_406)</u> |
| <u>[ITEM 16.](#i301901e926ef452f991eaa0be03c223a_412)</u> | <u>[FORM 10-K SUMMARY](#i301901e926ef452f991eaa0be03c223a_412)</u> | <u>[FORM 10-K SUMMARY](#i301901e926ef452f991eaa0be03c223a_412)</u> | <u>[FORM 10-K SUMMARY](#i301901e926ef452f991eaa0be03c223a_412)</u> | <u>[FORM 10-K SUMMARY](#i301901e926ef452f991eaa0be03c223a_412)</u> | <u>[101](#i301901e926ef452f991eaa0be03c223a_412)</u> |
| <u>[SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[102](#i301901e926ef452f991eaa0be03c223a_415)</u> |
| <u>[SIGNATURES](#i301901e926ef452f991eaa0be03c223a_418)</u> | <u>[SIGNATURES](#i301901e926ef452f991eaa0be03c223a_418)</u> | <u>[SIGNATURES](#i301901e926ef452f991eaa0be03c223a_418)</u> | <u>[SIGNATURES](#i301901e926ef452f991eaa0be03c223a_418)</u> | <u>[SIGNATURES](#i301901e926ef452f991eaa0be03c223a_418)</u> | <u>[103](#i301901e926ef452f991eaa0be03c223a_418)</u> |

---

*2025 Form 10-K* ii *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**GLOSSARY OF TERMS AND ABBREVIATIONS**

The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below:

---

| | |
|:---|:---|
| **Subsidiaries and Affiliates** | |
| ATC | American Transmission Company LLC |
| Bluewater | Bluewater Natural Gas Holding, LLC |
| Integrys | Integrys Holding, Inc. |
| UMERC | Upper Michigan Energy Resources Corporation |
| WBS | WEC Business Services LLC |
| WE | Wisconsin Electric Power Company |
| WEC Energy Group | WEC Energy Group, Inc. |
| WG | Wisconsin Gas LLC |
| WPS | Wisconsin Public Service Corporation |
| WRPC | Wisconsin River Power Company |
| **Federal and State Regulatory Agencies** | **Federal and State Regulatory Agencies** |
| CBP | United States Customs and Border Protection Agency |
| DOC | United States Department of Commerce |
| DOE | United States Department of Energy |
| EPA | United States Environmental Protection Agency |
| FERC | Federal Energy Regulatory Commission |
| IRS | United States Internal Revenue Service |
| PSCW | Public Service Commission of Wisconsin |
| SEC | Securities and Exchange Commission |
| USITC | United States International Trade Commission |
| WDNR | Wisconsin Department of Natural Resources |
| **Accounting Terms** | **Accounting Terms** |
| AFUDC | Allowance for Funds Used During Construction |
| ARO | Asset Retirement Obligation |
| ASC | Accounting Standards Codification |
| ASU | Accounting Standards Update |
| CWIP | Construction Work in Progress |
| FASB | Financial Accounting Standards Board |
| GAAP | Generally Accepted Accounting Principles |
| OPEB | Other Postretirement Employee Benefits |
| **Environmental Terms** | **Environmental Terms** |
| Act 141 | 2005 Wisconsin Act 141 |
| BTA | Best Technology Available |
| CAA | Clean Air Act |
| CCR | Coal Combustion Residual |
| CO2 | Carbon Dioxide |
| ELG | Steam Electric Effluent Limitation Guidelines |
| GHG | Greenhouse Gas |
| GHG Power Plant Rule | 2024 Greenhouse Gas Power Plant Rule |
| MATS | Mercury and Air Toxics Standards |
| NAAQS | National Ambient Air Quality Standards |
| NOx | Nitrogen Oxide |
| PCCC | Permanent Cessation of Coal Combustion |
| PM2.5 | Particulates Less Than 2.5 Micrometers in Diameter |
| SO2 | Sulfur Dioxide |
| ZLD | Zero Liquid Discharge |

---

*2025 Form 10-K* iii *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

---

| | |
|:---|:---|
| **Measurements** | |
| Bcf | Billion Cubic Feet |
| Dth | Dekatherm |
| lb/MMBtu | Pound Per Million British Thermal Unit |
| MW | Megawatt |
| MWh | Megawatt-hour |
| µg/m3 | Micrograms Per Cubic Meter |
| **Other Terms and Abbreviations** |  |
| AD | Antidumping |
| AI | Artificial Intelligence |
| AIA | Affiliated Interest Agreement |
| AOC | Audit and Oversight Committee of the Board of Directors of WEC Energy Group, Inc. |
| ARR | Auction Revenue Right |
| Badger Hollow I | Badger Hollow Solar Park I |
| BESS | Battery Energy Storage System |
| CAO | Chief Administrative Officer |
| CEO | Chief Executive Officer |
| CFR | Code of Federal Regulations |
| CODM | Chief Operating Decision Maker |
| Columbia | Columbia Energy Center |
| Compensation Committee | Compensation Committee of the Board of Directors of WEC Energy Group, Inc. |
| CSIRT | Cybersecurity Incident Response Team |
| CT | Combustion Turbine |
| CVD | Countervailing Duty |
| D.C. Circuit Court of Appeals | United States Court of Appeals for the District of Columbia Circuit |
| Darien | Darien Solar Park |
| DER | Distributed Energy Resource |
| Edgewater | Edgewater Generating Station |
| Enterprise Security Director | Director of Enterprise Security & Compliance |
| ERSC | Enterprise Risk Steering Committee |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| Forward Wind | Forward Wind Energy Center |
| FTR | Financial Transmission Right |
| GCRM | Gas Cost Recovery Mechanism |
| High Noon | High Noon Solar Energy Center |
| IRA | Inflation Reduction Act |
| IT/OT | Information Technology and Operational Technology |
| ITC | Investment Tax Credit |
| Koshkonong | Koshkonong Solar Park |
| LDC | Local Natural Gas Distribution Company |
| LMP | Locational Marginal Price |
| LNG | Liquefied Natural Gas |
| MISO | Midcontinent Independent System Operator, Inc. |
| MISO Energy Markets | MISO Energy and Operating Reserves Market |
| NYMEX | New York Mercantile Exchange |
| OBBBA | One Big Beautiful Bill Act |
| OMB | Office of Management and Budget |
| Omnibus Stock Incentive Plan | WEC Energy Group Omnibus Stock Incentive Plan, Amended and Restated, Effective as of May 6, 2021 |
| Paris | Paris Solar-Battery Park |
| PHMSA | Pipeline and Hazardous Materials Safety Administration |
| PTC | Production Tax Credit |
| Pulliam | J. P. Pulliam Generating Station |
| Red Barn | Red Barn Wind Park |
| RICE | Reciprocating Internal Combustion Engine |

---

*2025 Form 10-K* iv *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

---

| | |
|:---|:---|
| RNG | Renewable Natural Gas |
| ROE | Return on Equity |
| RTO | Regional Transmission Organization |
| S&P | Standard & Poor's |
| Saratoga | Saratoga Solar Electric Generation and BESS Facility |
| Supreme Court | United States Supreme Court |
| Two Creeks | Two Creeks Solar Park |
| UFLPA | Uyghur Forced Labor Prevention Act |
| Weston | Weston Generating Station |
| Whitetail | Whitetail Wind Energy Generation Facility |
| Whitewater | Whitewater Cogeneration Facility |
| WPL | Wisconsin Power and Light Company |

---

*2025 Form 10-K* v *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION**

In this report, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements may be identified by reference to a future period or periods or by the use of terms such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goals," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "seeks," "should," "targets," "will," or variations of these terms.

Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings, completion of capital projects, sales and customer growth, rate actions and related filings with regulatory authorities, environmental and other regulations, including associated compliance costs, legal proceedings, effective tax rates, pension and OPEB plans, fuel costs, sources of electric energy supply, coal and natural gas deliveries, remediation costs, climate-related matters, the WEC Energy Group capital plan, liquidity and capital resources, and other matters.

Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include those described in Item 1A. Risk Factors and those identified below:

• Factors affecting utility operations such as catastrophic weather-related damage, environmental incidents, unplanned facility outages and repairs and maintenance, electric grid reliability, and electric transmission or natural gas pipeline system constraints;

• Factors affecting the demand for electricity and natural gas, including political or regulatory developments, varying, adverse, or unusually severe weather conditions, changes in economic conditions, including continued economic growth, customer growth and declines, commodity prices, energy conservation efforts, and continued adoption of distributed generation by customers or co-location of generation near data centers;

• The timing, resolution, and impact of rate cases and negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting our regulated operations;

• The impact of federal, state, and local legislative and/or regulatory changes, including changes in rate-setting policies or procedures, the results of rate orders, deregulation and restructuring of the electric and/or natural gas utility industries, transmission or distribution system operation, changes to address energy affordability concerns, the approval process for new construction, reliability standards, pipeline integrity and safety standards, allocation of energy assistance, energy efficiency mandates, electrification initiatives and other efforts to reduce the use of natural gas, and tax laws, including those that affect our ability to use PTCs and ITCs, as well as changes in the interpretation and/or enforcement of any laws or regulations by regulatory agencies;

• Federal, state, and local legislative and regulatory changes relating to the environment, including changing environmental regulations impacting generation facilities and renewable energy standards, the enforcement of these laws and regulations, changes in and uncertainty regarding the interpretation of regulations or permit conditions by regulatory agencies, and the recovery of associated remediation and compliance costs;

• The ability to obtain and retain customers, including wholesale customers, due to increased competition in our electric and natural gas markets from retail choice and alternative electric suppliers, and continued industry consolidation;

• The timely completion of capital projects within budgets and the ability to recover the related costs through rates;

• The impact of changing expectations and demands of our customers, regulators, investors, and other stakeholders;

• The risk of delays and shortages, and increased costs of equipment, materials, or other resources that are critical to our business operations and corporate strategy, as a result of changes to U.S. trade policy (including changes to tariffs on imports, port fees, and other trade policy tools) as well as changes to foreign governments' trade policies impacting U.S. exports, supply chain disruptions (including from rail congestion), inflation, and other factors;

*2025 Form 10-K* 1 *Wisconsin Public Service Corporation*

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• The impact of public health crises, including epidemics and pandemics, on our business functions, financial condition, liquidity, and results of operations;

• Risks inherent in electric generation and distribution and natural gas transportation, distribution, and storage activities, including leaks, accidental explosions, mechanical problems, fires, discharges or releases of toxic or hazardous substances or gases, and risks related to the ability to obtain adequate insurance to cover such events;

• Factors affecting the achievement of WEC Energy Group's CO2 emission reduction goal and related opportunities and actions, including related regulatory decisions, the cost of materials, supplies, and labor, technology advances, significant increases in demand, the feasibility of competing generation projects, and the ability to execute the WEC Energy Group capital plan;

• The risks associated with inflation and changing commodity prices, including natural gas and electricity;

• The availability and cost of sources of natural gas and other fossil fuels, purchased power, materials needed to operate environmental controls at our electric generating facilities, or water supply due to high demand, shortages, transportation problems, nonperformance by electric energy or natural gas suppliers under existing power purchase or natural gas supply contracts, or other developments;

• Any impacts on the global economy, including from sanctions, and impacts on supply chains and fuel prices, generally, from increasing tensions between the United States and other countries or from other new, protracted or escalating regional or international conflicts;

• Changes in credit ratings, interest rates, and our ability to access the capital markets, caused by volatility in the global credit markets, our capitalization structure, and market perceptions of the utility industry or us;

• Costs and effects of litigation, administrative proceedings, investigations, settlements, claims, and inquiries;

• The direct or indirect effect on our business resulting from terrorist or other physical attacks and cybersecurity intrusions, as well as the threat of such incidents, including the failure to maintain the security of personally identifiable information, the associated costs to protect our utility assets, technology systems, and personal information, and the costs to notify affected persons to mitigate their information security concerns and to comply with state notification laws;

• The risk of financial loss, including increases in bad debt expense, associated with the inability of our customers, counterparties, and affiliates to meet their obligations;

• Changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading markets and fuel suppliers and transporters;

• The investment performance of our employee benefit plan assets, as well as unanticipated changes in related actuarial assumptions, which could impact future funding requirements;

• Factors affecting the employee workforce, including loss of key personnel, internal restructuring, work stoppages, and collective bargaining agreements and negotiations with union employees;

• Advances in technology, and related legislation or regulation supporting the use of that technology, that result in competitive disadvantages and create the potential for impairment of existing assets;

• Risks involved in developing and implementing AI, including data privacy concerns or other legal liability, new or enhanced governmental or regulatory scrutiny or regulations governing the use of AI, the ability to meet expectations or requirements relating to adoption or implementation of AI technology, or other complications related to the use of AI;

• The risk associated with the values of goodwill and other long-lived assets, including intangible assets, and equity method investments, and their possible impairment;

• Potential business strategies to acquire and dispose of assets, which cannot be assured to be completed timely or within budgets;

• The timing and outcome of any audits, disputes, and other proceedings related to taxes;

*2025 Form 10-K* 2 *Wisconsin Public Service Corporation*

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• The effect of accounting pronouncements issued periodically by standard-setting bodies; and

• Other considerations disclosed elsewhere herein and in other reports we file with the SEC or in other publicly disseminated written documents.

**Except as may be required by law, we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.**

*2025 Form 10-K* 3 *Wisconsin Public Service Corporation*

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**PART I**

**ITEM 1. BUSINESS**

**A. INTRODUCTION**

In this report, when we refer to "us," "we," "our," or "ours," we are referring to Wisconsin Public Service Corporation. The term "utility" refers to our regulated activities, while the term "non-utility" refers to our activities that are not regulated. References to "Notes" are to the Notes to Financial Statements included in this Annual Report on Form 10-K.

We are an indirect, wholly owned subsidiary of WEC Energy Group and were incorporated in the state of Wisconsin in 1883. We serve customers in northeastern and central Wisconsin. We conduct our business primarily through our utility reportable segment.

For more information about our utility operations, including financial and geographic information, see Note 20, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.

**Available Information**

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports are made available on WEC Energy Group's website, www.wecenergygroup.com, free of charge, as soon as reasonably practicable after they are filed with or furnished to the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov.

**B. UTILITY SEGMENT**

**Electric Utility Operations**

We generate and distribute electric energy to customers located in northeastern and central Wisconsin.

***Operating Revenues***

For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.

**Electric Sales**

Our electric energy deliveries included supply and distribution sales to retail, wholesale, and resale customers. In 2025, retail revenues accounted for 90.9% of total electric operating revenues, wholesale revenues accounted for 4.2% of total electric operating revenues, and resale revenues accounted for 3.8% of total electric operating revenues. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Utility Segment Contribution to Net Income for information on MWh sales by customer class.

We are authorized to provide retail electric service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities.

We provide wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers.

The majority of our sales for resale are conducted within an energy market operated by MISO at market rates based on the availability of our generation and market demand. Retail fuel costs are reduced by the amount that revenue exceeds the costs of sales derived from these opportunity sales.

*2025 Form 10-K* 4 *Wisconsin Public Service Corporation*

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We buy and sell electric power by participating in the MISO Energy Markets. The cost of our individual generation offered into the MISO Energy Markets compared to our competitors affects how often our generating units are dispatched and whether we buy or sell power. For more information on the MISO Energy Markets, see D. Regulation.

**Electric Sales Forecast**

Our service territory experienced higher weather-normalized retail electric sales in 2025, compared with 2024, due to higher sales to residential and large commercial and industrial customers. We currently forecast retail electric sales volumes to slightly increase 0.1% in 2026, compared with 2025, assuming normal weather.

***Customers***

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in thousands)*** | **2025** | **2024** | **2023** |
| **Electric customers – end of year** |  |  |  |
| Residential | **417.6** | 413.9 | 409.7 |
| Small commercial and industrial | **56.6** | 56.2 | 55.7 |
| Large commercial and industrial | **0.2** | 0.2 | 0.2 |
| **Total electric customers – end of year** | **474.4** | 470.3 | 465.6 |

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**Electric Commercial and Industrial Retail Customers**

We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, utilities, food manufacturing, and merchant wholesalers.

***Electric Generation and Supply Mix***

Our electric supply strategy is to provide our customers with energy from a diverse generation portfolio that balances a stable, reliable, and affordable supply of electricity with environmental stewardship. Through our participation in the MISO Energy Markets, we supply a significant amount of electricity to our customers from generation that we own. We supplement our internally generated power supply with long-term purchase power agreements and through spot purchases in the MISO Energy Markets. We also sell excess power supply into the MISO Energy Markets when it is economical, which reduces net fuel costs by offsetting costs of purchased power. On a real time basis, the MISO Energy Market continuously evaluates system load requirements and dispatches the lowest-cost generation resources, while respecting any limitations on the transmission system.

The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for 2026:

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|:---|:---|:---|:---|:---|
| | **Estimate** <sup>(1)</sup> | **Actual** | **Actual** | **Actual** |
| | **2026** | **2025** | **2024** | **2023** |
| **Company-owned generation units:** |  |  |  |  |
| Coal | 40.8% | **40.5%** | 34.9% | 29.7% |
| Natural gas combined cycle | 33.1% | **26.8%** | 34.6% | 33.7% |
| Natural gas/oil peaking units | 2.3% | **6.6%** | 5.3% | 5.7% |
| Renewables <sup>(2)</sup> | 11.0% | **11.4%** | 10.5% | 9.8% |
| **Total company-owned generation units** | 87.2% | **85.3%** | 85.3% | 78.9% |
| **Power purchase contracts:** |  |  |  |  |
| Renewables <sup>(3)</sup> | 3.9% | **3.6%** | 4.8% | 5.0% |
| Other | —% | **0.4%** | —% | —% |
| Total power purchase contracts | 3.9% | **4.0%** | 4.8% | 5.0% |
| Purchased power from MISO | 8.9% | **10.7%** | 9.9% | 16.1% |
| Total purchased power | 12.8% | **14.7%** | 14.7% | 21.1% |
| **Total electric utility supply** | 100.0% | **100.0%** | 100.0% | 100.0% |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The values included in the estimate assume a natural gas price based on the December 2025 NYMEX.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes hydroelectric, solar, BESS, and wind generation.

*2025 Form 10-K* 5 *Wisconsin Public Service Corporation*

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<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes hydroelectric, wind, and customer-owned renewable generation.

***Electric Generation Facilities***

Our generation portfolio is a mix of energy resources having different operating characteristics and fuel sources. We own 2,730 MWs of generation capacity, including wholly owned and jointly owned facilities. Our generation facilities include natural gas-fired plants, coal-fired plants, renewable generation, and BESSs. Certain of our natural gas-fired generation units have the ability to burn oil if natural gas is not available due to delivery constraints. For more information about our facilities, see Item 2. Properties.

**Supporting Economic Growth Within Our Communities**

WEC Energy Group's capital plan reflects the planned retirement of older, fossil-fueled generation, which we expect to replace with natural gas-fired generation and zero-carbon-emitting renewables. These retirements are intended to address compliance with EPA regulations established under the CAA, as well as contribute to meeting WEC Energy Group's and our goal to reduce CO2 emissions from electric generation. When taken together, the retirements and new investments in renewables discussed in more detail below should better balance WEC Energy Group's supply with its demand, while helping to address compliance and maintaining reliable, affordable energy for our customers.

**Environmental Goal**

WEC Energy Group's long-term goal is to achieve net carbon neutral electric generation by the end of 2050. WEC Energy Group expects to achieve this goal by continuing to make operating refinements, retiring less efficient generating units, and executing its capital plan. WEC Energy Group expects to use coal only as a backup fuel by the end of 2030 and to be in a position to eliminate coal as an energy source by the end of 2032. As of the end of 2025, WEC Energy Group's electric generation fleet has achieved a 53% reduction in carbon emissions from the 2005 baseline.

As part of our path toward this goal, we have started implementing co-firing with natural gas at Weston Unit 4. WEC Energy Group has already retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the 2018 retirements of the Pulliam power plant and the jointly-owned Edgewater Unit 4 generating unit. See Note 6, Regulatory Assets and Liabilities, for more information related to certain of these power plant retirements. WEC Energy Group expects to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirement of Weston Unit 3.

See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on WEC Energy Group's capital plan.

Also see Item 1A. Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of GHG legislation, regulation, and our emission reduction goal.

***Renewable Generation***

We meet a portion of our electric generation supply with various renewable energy resources, including wind, solar, and hydroelectric. This helps us work towards our goal of reducing carbon emissions while also maintaining compliance with renewable energy legislation. These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators.

**Wind**

We continue to invest in and upgrade our wind-powered generation systems to enhance reliability. We have received approval from the PSCW to acquire and construct 18 MWs of additional wind-powered generation. We will jointly own these generation facilities with WE and an unaffiliated entity. See Note 8, Jointly-Owned Utility Facilities, for more information.

*2025 Form 10-K* 6 *Wisconsin Public Service Corporation*

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**Solar and Battery Storage**

In June 2025, the construction of the battery portion of Paris located in Kenosha County, Wisconsin was completed, and the facility became commercially operational. The solar portion of Paris was commercially operational in December 2024. Paris is owned by us, WE, and an unaffiliated entity. We own 30 MWs of solar generation and 17 MWs of battery storage associated with this project.

In March 2025, the construction of the solar portion of Darien located in Rock and Walworth counties, Wisconsin was completed, and the facility became commercially operational. Darien is owned by us, WE, and an unaffiliated entity. We own 37 MWs of solar generation and will own 11 MWs of battery storage associated with this project, with construction expected to be completed in 2027.

As part of our commitment to invest in additional zero-carbon generation, we have received approval from the PSCW to acquire and construct 125 MWs of additional solar-powered generation and 66 MWs of battery storage. See Note 8, Jointly-Owned Utility Facilities, for more information.

We have also filed requests with the PSCW to acquire and construct 122 MWs of solar-powered generation.

***Electric System Reliability***

The PSCW requires us to maintain a planning reserve margin above our projected annual peak demand forecast to help ensure reliability of electric service to our customers. These planning reserve requirements are consistent with the MISO calculated planning reserve margin. In 2008, the PSCW established a 14.5% reserve margin requirement for long-term planning (planning years two through ten). For short-term planning (planning year one), the PSCW requires Wisconsin utilities to follow the planning reserve margin established by MISO. MISO implemented seasonal requirements effective June 1, 2023. The installed capacity reserve margins for the planning year June 1, 2025 through May 31, 2026 are as follows: 15.7% summer (June – August); 25.3% fall (September – November); 38.6% winter (December – February); and 38.8% spring (March – May). MISO's short-term reserve margin requirements experience year-to-year and season-to-season fluctuations, primarily due to changes in the generation resource mix and average forced outage rate of generation within the MISO footprint.

We believe that we have adequate capacity through company-owned generation units and power purchase contracts to meet the MISO calculated planning reserve margin during the current planning year. We also fully anticipate that we will have adequate capacity to meet the planning reserve margin requirements for the upcoming planning year.

***Fuel and Purchased Power Costs***

Our retail electric rates are established by the PSCW and include base amounts for fuel and purchased power costs. The electric fuel rules set by the PSCW generally allow us to defer, for subsequent rate recovery or refund, under- or over-collections of actual fuel and purchased power costs beyond a 2% price variance from the costs included in the rates charged to customers. For more information about the fuel rules, see D. Regulation.

Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| Coal | $**26.63** | $25.86 | $26.09 |
| Natural gas combined cycle | **26.76** | 19.75 | 31.88 |
| Natural gas/oil peaking units | **41.26** | 35.41 | 34.94 |
| Purchased power | **50.31** | 42.75 | 39.38 |

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We purchase coal under long-term contracts, which helps with price stability. Coal and associated transportation services are exposed to volatility in pricing due to changing domestic and world-wide demand for coal and diesel fuel. To mitigate against this volatility risk, we have PSCW approval for a hedging program. This program allows us to hedge, over a 60-month period, up to 75% of our potential risks related to rail transportation fuel surcharge exposure. The results of this hedging program, when used, are reflected in the average costs of fuel and purchased power.

*2025 Form 10-K* 7 *Wisconsin Public Service Corporation*

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We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants. We have firm and interruptible transportation, as well as balancing and storage agreements, intended to support our plants' variable usage. We also have PSCW approval for a hedging program to mitigate against volatility related to natural gas price risk. This program allows us to hedge, over a 60-month period, up to 75% of our estimated natural gas use for electric generation. The results of this hedging program are reflected in the average costs of natural gas.

**Coal Supply**

We diversify the coal supply for our jointly-owned electric generating facilities by purchasing coal from several mines in Wyoming and Pennsylvania, as well as from various other states. For 2026, 46% of our total projected coal requirements of 3.9 million tons are contracted under fixed-price contracts. See Note 21, Commitments and Contingencies, for more information on amounts of coal purchases and coal deliveries under contract.

The annual tonnage amounts contracted for the next three years are as follows:

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| | |
|:---|:---|
| ***(in thousands)*** | **Annual Tonnage** |
| 2026 | 1,792 |
| 2027 | 550 |
| 2028 |  |

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**Coal Deliveries**

All of our coal requirements are expected to be shipped by unit trains that we own or lease under existing transportation agreements. The unit trains transport the coal for electric generating facilities from mines in Wyoming and Pennsylvania. Additional small volume agreements may also be used to supplement the normal coal supply for our facilities. For additional information concerning risks related to coal supply chain disruptions, see the risk factor below.

• Item 1A. Risk Factors – Risks Related to Economic and Market Volatility – We may not be able to obtain an adequate supply of coal, which could limit our ability to operate our coal-fired facilities.

***Power Purchase Commitments***

We enter into short- and long-term power purchase commitments to meet a portion of our anticipated electric energy supply needs. Excluding planning capacity purchases, our power purchase commitments with unaffiliated parties consist of 100 MWs per year for 2026 through 2029. If necessary, we purchase planning capacity from the MISO annual auction to ensure that we maintain our compliance with planning reserve requirements as established by the PSCW and MISO.

***Seasonality***

Our electric utility sales are impacted by seasonal factors and varying weather conditions. We sell more electricity during the summer months because of the residential cooling load. We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers. In 2025, our generating plants performed as expected during the most demanding periods of the year, and all power purchase commitments under firm contract were received. During this period, we did not make any public appeals for conservation, and we did not interrupt or curtail service to non-firm customers who participate in load management programs. We did have economic interruption events; however, service to customers was not curtailed. Economic interruptions are declared during times in which the price of electricity in the regional market exceeds the cost of operating our peaking generation. During this time, customers taking service under these interruptible programs can choose to continue using electricity at a price based on wholesale market prices or to reduce their load.

***Competition***

We face competition from various entities and other forms of energy sources available to customers, including self-generation by customers and alternative energy sources. We compete with other utilities for sales to municipalities and cooperatives as well as with other utilities and marketers for wholesale electric business.

*2025 Form 10-K* 8 *Wisconsin Public Service Corporation*

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For more information on competition in our service territory, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Competitive Markets.

**Natural Gas Utility Operations**

We are authorized to provide retail natural gas distribution service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities. We provide service to customers located in northeastern Wisconsin.

We provide service to residential and commercial and industrial customers. In addition, we offer natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include paper, food manufacturing, governmental, utilities, and education. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Utility Segment Contribution to Net Income for information on natural gas sales volumes by customer class.

***Operating Revenues***

For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues.

***Natural Gas Sales Forecast***

Our service territory experienced slightly higher weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2025 as compared to 2024. We currently forecast retail natural gas delivery volumes to decrease by 0.8% in 2026, as compared to 2025, assuming normal weather.

***Customers***

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in thousands)*** | **2025** | **2024** | **2023** |
| **Customers – end of year** |  |  |  |
| Residential | **313.2** | 310.5 | 307.6 |
| Commercial and industrial | **35.6** | 35.3 | 35.2 |
| Transportation | **0.9** | 1.0 | 1.0 |
| **Total customers** | **349.7** | 346.8 | 343.8 |

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***Natural Gas Supply, Pipeline Capacity and Storage***

We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns. For more information on our natural gas utility supply and transportation contracts, see Note 21, Commitments and Contingencies.

**Pipeline Capacity and Storage**

We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas. This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio.

Due to variations in natural gas usage in Wisconsin, we have also contracted for substantial underground storage capacity, primarily in Michigan. We have entered into a long-term service agreement for natural gas storage with a wholly owned subsidiary of Bluewater. Bluewater, a wholly owned subsidiary of WEC Energy Group, owns natural gas storage facilities in Michigan and provides approximately one-third of our current storage needs. We target storage inventory levels at approximately 40% of forecasted demand for November through March. Diversity of natural gas supply enables us to manage significant changes in demand and to optimize our overall natural gas supply and capacity costs. We generally inject natural gas into storage during the spring and summer months and withdraw it in the winter months.

*2025 Form 10-K* 9 *Wisconsin Public Service Corporation*

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We contract with interstate pipeline companies, as well as other service providers, to purchase firm transportation and storage services under varied-length long-term contracts. We believe that having diverse capacity and storage benefits our customers.

Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Our forecasted design peak-day throughput is 9.4 million therms for the 2025 through 2026 heating season. Our peak daily send-out during 2025 was 6.7 million therms on January 20, 2025. Peak or near-peak demand generally occurs only a few times each year. Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRM. For information on our GCRM, see Note 1(d), Operating Revenues.

**Natural Gas Supply**

Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets.

**Hedging Natural Gas Supply Prices**

As part of our hedging program, we further reduce our supply cost volatility through the use of a mix of financial instruments, such as NYMEX-based natural gas options and futures contracts. We have PSCW approval to hedge up to 60% of planned winter demand and up to 15% of planned summer demand. This approval allows us to pass 100% of the hedging costs (premiums, brokerage fees and losses) and proceeds (gains) to customers through our GCRM.

***Seasonality***

Since the majority of our customers use natural gas for heating, customer use is sensitive to weather and is generally higher during the winter months. Accordingly, we are subject to some variations in earnings and working capital throughout the year as a result of changes in weather.

Our working capital needs are met by cash generated from operations and debt (both long-term and short-term). The seasonality of natural gas revenues causes the timing of cash collections to be concentrated from January through June. A portion of our winter natural gas supply needs is typically purchased and stored from April through November. Also, planned capital spending on our natural gas distribution facilities is concentrated in April through November. Because of these timing differences, the cash flow from customers is typically supplemented with temporary increases in short-term borrowings (from external sources) during the late summer and fall. Short-term debt is typically reduced over the January through June period.

***Competition***

We face varying degrees of competition from other entities and other forms of energy available to consumers. Many large commercial and industrial customers have the ability to switch between natural gas and alternative fuels. Electrification initiatives or mandates are being considered or proposed by certain states and municipalities near our service territory. In addition, all of our customers have the opportunity to choose a natural gas supplier other than us. We offer natural gas transportation services for customers that elect to purchase natural gas directly from a third-party supplier. We continue to earn distribution revenues from these transportation customers for their use of our distribution system to transport natural gas to their facilities. As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is offset by an equal reduction to natural gas costs.

For more information on competition in our service territory, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Competitive Markets.

*2025 Form 10-K* 10 *Wisconsin Public Service Corporation*

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***Methane Emission Reductions***

We plan to achieve methane emission reductions through continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our natural gas utility system. The RNG supplied will directly replace higher emission methane from natural gas that would have entered our pipes.

**C. OTHER SEGMENT**

Our other segment includes our non-utility activities as well as equity earnings from our investment in WRPC. We own 50% of the stock of WRPC. WRPC owns two hydroelectric plants, and we are entitled to 50% of the total capacity from its plants.

**D. REGULATION**

In addition to the specific regulations noted below, we are also subject to various other regulations, which primarily consist of regulations, where applicable, of the EPA, the WDNR, and the United States Army Corps of Engineers.

**Rates**

Our retail electric and natural gas rates are regulated by the PSCW, and the FERC regulates our wholesale electric rates. Decisions by these regulators can significantly impact our liquidity, financial condition, and results of operations. The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|<br>***(in millions)*** | **Amount** | **Percent** | **Amount** | **Percent** | **Amount** | **Percent** |
| **Electric** |  |  |  |  |  |  |
| Wisconsin | $**1313.9** | **91.5%** | $1154.2 | 92.8% | $1211.2 | 92.3% |
| FERC – Wholesale | **121.6** | **8.5%** | 90.2 | 7.2% | 100.9 | 7.7% |
| **Total** | **1435.5** | **100.0%** | 1244.4 | 100.0% | 1312.1 | 100.0% |
| **Natural Gas – Wisconsin** | **401.4** | **100.0%** | 316.0 | 100.0% | 369.3 | 100.0% |
| **Total utility operating revenues** | $**1836.9** |  | $1560.4 |  | $1681.4 |  |

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***Retail Rates***

The PSCW has general supervisory and regulatory powers over public utilities in its jurisdiction including, but not limited to, approval of retail utility rates and standards of service, security issuances, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility facilities.

Historically, retail rates approved by the PSCW have been designed to provide utilities the opportunity to generate revenues to recover all prudently-incurred costs, along with a return on investment sufficient to pay interest on debt and provide a reasonable ROE. Rates charged to customers vary according to customer class and rate jurisdiction. We are subject to an earnings sharing mechanism in which a portion of our earnings are required to be refunded to customers if we earn above our authorized ROE. See Note 23, Regulatory Environment, for more information on our earnings sharing mechanism. The table below reflects our approved ROE and capital structure during 2025.

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|:---|:---|:---|:---|
| **Regulated Retail Rates** | **Regulatory Commission** | **Authorized ROE** | **Average Common Equity Component** |
| Electric and natural gas | PSCW | 9.80% | 53.0% |

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In addition to amounts collected from customers through approved base rates, we have certain recovery mechanisms in place that allow us to recover or refund prudently incurred costs that differ from those approved in base rates.

Embedded within our electric rates is an amount to recover fuel and purchased power costs. The Wisconsin retail fuel rules require us to defer, for subsequent rate recovery or refund, any under-collection or over-collection of fuel and purchased power costs that are outside of our symmetrical fuel cost tolerance, which the PSCW typically sets at plus or minus 2% of our approved fuel and purchased power cost plan. Our deferred fuel and purchased power costs are subject to an excess revenues test. If our ROE in a

*2025 Form 10-K* 11 *Wisconsin Public Service Corporation*

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given year exceeds the ROE authorized by the PSCW, the recovery of under-collected fuel and purchased power costs would be reduced by the amount by which our return exceeds the authorized amount.

Our natural gas utility operates under a GCRM as approved by the PSCW. Generally, the GCRM allows for a dollar-for-dollar recovery of prudently incurred natural gas costs.

See Note 1(d), Operating Revenues, for more information on the significant mechanisms we had in place during 2025 that allowed us to recover or refund changes in prudently incurred costs from rate case-approved amounts.

We file periodic requests with the PSCW for changes in retail rates. Our rate requests are based on forward looking test years, which reflect additions to infrastructure and changes in costs incurred or expected to be incurred. For information on our regulatory proceedings, see Note 23, Regulatory Environment. Orders from the PSCW can be viewed at https://psc.wi.gov/. The material and information contained on this website are not intended to be a part of, nor are they incorporated by reference into, this Annual Report on Form 10-K.

***Wholesale Rates***

The FERC regulates our wholesale sales of electric energy, capacity, and ancillary services. We have received market-based rate authority from the FERC. Market-based rate authority allows wholesale electric sales to be made in the MISO market and directly to third parties based on the negotiated market value of the transaction. We also make wholesale sales pursuant to cost-based formula rates. Cost-based formula rates provide for recovery of our costs and an approved rate of return. The predetermined formula is initially based on our expenses from the previous year, but is eventually trued up to reflect actual, current-year costs.

**Electric Transmission, Capacity, and Energy Markets**

In connection with its status as a FERC-approved RTO, MISO operates an energy and ancillary services market and manages the flow of high-voltage electricity across the transmission system in its region. MISO is responsible for monitoring and ensuring equal access to the electric transmission system in its footprint.

In MISO, transmission costs are allocated in accordance with the MISO tariff, which is reviewed and approved by the FERC. Base transmission costs are paid by load-serving entities located in the service territories of each MISO transmission owner. Costs for new regional transmission projects are allocated to load-serving entities throughout the MISO footprint, while the costs for new generation interconnections are allocated to the interconnection customer.

Within MISO, transmission congestion is monetized and included within an LMP that is established through the energy market. The LMP system includes the ability to hedge transmission congestion costs through ARRs and FTRs. ARRs are allocated to market participants by MISO, and FTRs are purchased through auctions. A new allocation and auction was completed for the period of June 1, 2025, through May 31, 2026. The resulting ARR allocation and the secured FTRs are expected to mitigate our transmission congestion risk for that period.

MISO has seasonal zonal resource adequacy requirements to ensure there is sufficient generation capacity to serve load within each zone and the MISO footprint. To meet this requirement, load-serving entities can own generation and demand response resources, acquire generation capacity through MISO's annual capacity auction, or acquire generation capacity through bilateral contracts. The zone in which our load resides, along with the MISO North region as a whole, has sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2025 and May 31, 2026.

We manage our electric generation portfolio to minimize our exposure within MISO's annual capacity auction. This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to help avoid a significant short position.

**Other Electric Regulations**

We are subject to the Federal Power Act and the corresponding regulations developed by certain federal agencies. Among other things, the Federal Power Act makes electric utility industry consolidation more feasible and authorizes the FERC to review proposed mergers and the acquisition of generation facilities. The FERC also oversees the Electric Reliability Organization, which establishes mandatory electric reliability standards and has the authority to levy monetary sanctions for failure to comply with these standards.

*2025 Form 10-K* 12 *Wisconsin Public Service Corporation*

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We are subject to Act 141 in Wisconsin which contains certain minimum requirements for renewable energy generation.

**Other Natural Gas Regulations**

Almost all of the natural gas we distribute is transported to our distribution systems by interstate pipelines. The pipelines' transportation and storage services are regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the PHMSA and the PSCW are responsible for monitoring and enforcing requirements governing our natural gas safety compliance programs for our pipelines under United States Department of Transportation regulations. These regulations include 49 CFR Part 191 (Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports), 49 CFR Part 192 (Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline).

We also continue to monitor the progress of the PHMSA's proposed rulemaking titled "Gas Pipeline Leak Detection and Repair," which could have a significant impact on us.

We are required to provide natural gas service and grant credit (with applicable deposit requirements) to customers within our service territory. We are generally not allowed to discontinue natural gas service during winter moratorium months to residential heating customers who do not pay their bills. Federal and certain state governments have programs that provide for a limited amount of funding for assistance to our low-income customers.

**Compliance Costs**

The regulations and oversight described above significantly influence our operating environment, and may cause us to incur compliance and other related costs and may affect our ability to recover these costs from our utility customers. Any anticipated capital expenditures for compliance with government regulations for the next three years are included in the estimated capital expenditures described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash Requirements.

**E. ENVIRONMENTAL COMPLIANCE**

Our operations, especially as they relate to our coal-fired generating facilities, are subject to extensive environmental regulation by state and federal environmental agencies governing air and water quality, hazardous and solid waste management, environmental remediation, and management of natural resources. Costs associated with complying with these requirements are significant. Additional future environmental regulations or revisions to existing laws, including for example, additional regulation related to GHG emissions, coal combustion products, air emissions, water use, or wastewater discharges and other climate change issues, could significantly increase these environmental compliance costs.

Anticipated expenditures for environmental compliance and certain remediation issues for the next three years are included in the estimated capital expenditures described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash Requirements. For a discussion of certain environmental matters affecting us, including rules and regulations relating to air quality, water quality, land quality, and climate change, see Note 21, Commitments and Contingencies.

**F. HUMAN CAPITAL**

We believe our employees are among our most important resources, so investing in human capital is critical to our success. We strive to attract, retain, and develop talented personnel and keep our employees safe, healthy, and engaged.

WEC Energy Group's Board of Directors retains collective responsibility for comprehensive risk oversight of WEC Energy Group and its subsidiaries, including critical areas that could impact our sustainability, such as human capital. Management regularly reports to WEC Energy Group's Board of Directors on human capital management topics, including corporate culture, succession planning, training and employee development, and safety and health. WEC Energy Group's Board of Directors delegates specified duties to its committees. In addition to its responsibilities relative to executive compensation, the Compensation Committee has oversight responsibility for reviewing organizational matters that could significantly impact us. The Compensation Committee reviews

*2025 Form 10-K* 13 *Wisconsin Public Service Corporation*

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recruiting and development programs and priorities, receives updates on key talent, and assesses workforce composition across WEC Energy Group and its subsidiaries.

**Workforce**

As of December 31, 2025, we had 1,220 employees, including 876 that are represented under union agreements. We believe we have very good overall relations with our workforce. In order to attract and retain talent, we provide competitive wages and benefits to our employees based on their performance, role, location, and market data. Our compensation package also includes a 401(k) savings plan with an employer match, an annual incentive plan based on meeting company goals, healthcare and insurance benefits, vacation and paid time off days, as well as other benefits.

**Engagement**

We are committed to ensuring a fair workplace and an engaged workforce. Our commitment is a core strategic competency and an integral part of our culture, with longstanding programs for individual development, reinforcement of our core values, and a recruitment strategy that is focused on building a deep talent pipeline to support our business needs. During 2025, we demonstrated this commitment through training and development of employees at all levels of the organization, our comprehensive merit review and succession planning processes, and a range of community partnerships. In addition, WEC Energy Group has a number of initiatives that promote workforce contributions and participation and ensure its companies, including us, are attractive employers for persons of all backgrounds. These initiatives include nine business resource groups (voluntary, employee-led groups organized around a particular shared background or interest), mentoring programs, and education and training for all employees in order to develop and support inclusive teams. We are committed to a workplace free from bias and harassment. We also support external leadership and educational programs that support, train, and promote individuals in the communities we serve.

**Safety and Health**

WEC Energy Group's Executive Safety Committee directs our safety and health strategy, works to ensure consistency across groups, and reinforces our ongoing safety commitment that we refer to as "Target Zero." Under our Target Zero commitment, we have an ultimate goal of zero incidents, accidents, and injuries. Our corporate safety program provides a forum for addressing employee concerns, training employees and contractors on current safety standards, and recognizing those who demonstrate a safety focus. We monitor and set goals for days away, restricted or transferred metrics, and measurable leading indicators, which together raise awareness about employee safety and guide injury-prevention activities.

We also provide employees various benefits and resources designed to promote healthy living, both at work and at home. We encourage employees to receive preventive examinations and to proactively care for their health through free health screenings, wellness challenges, and other resources.

**Development and Training**

Employee training and development of both technical and leadership skills are integral aspects of our human capital strategy. We provide employees with a wide range of development opportunities, including online training, simulations, live classes, and mentoring to assist with their career advancement. These programs include safety and technical job skill training as well as soft-skill programs focused on relevant subjects, including communication and change management. Development of leadership skills remains a top priority and is specialized for all levels of employees. We have specific leadership programs for aspiring leaders and new supervisors, managers, and directors. This development of our employees is an integral part of our succession planning and provides continuity for our senior leadership.

*2025 Form 10-K* 14 *Wisconsin Public Service Corporation*

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**ITEM 1A. RISK FACTORS** 

We are subject to a variety of risks, many of which are beyond our control, that may adversely affect our business, financial condition, and results of operations. You should carefully consider the following risk factors, as well as the other information included in this report and other documents filed by us with the SEC from time to time, when making an investment decision.

**Risks Related to Legislation and Regulation**

***Our business is significantly impacted by governmental legislation, regulation, and oversight.***

We are subject to significant state, local, and federal governmental legislation and regulations, including regulations by the PSCW and the FERC. Legislation and regulation significantly influence our operating environment, may affect our ability to recover costs from utility customers, affect our ability to implement WEC Energy Group's corporate strategy, and cause us to incur substantial compliance and other costs. Changes in legislation or regulations, their interpretation, or the imposition of new legislation or regulations could also significantly impact our business operations. Many aspects of our operations are impacted by government legislation and regulations, including, but not limited to: the rates we charge our retail electric and natural gas customers; our authorized rate of return; construction and operation of electric generating facilities and electric and natural gas distribution systems, including the ability to recover such costs; decommissioning generating facilities, the ability to recover the related costs, and continuing to recover the return on the net book value of these facilities; wholesale power service practices; electric reliability requirements; participation in the interstate natural gas pipeline capacity market; standards of service; issuance of debt securities; short-term debt obligations; transactions with affiliates; and billing practices. Failure to comply with any applicable rules or regulations may lead to customer refunds, penalties, and other payments, which could materially and adversely affect our results of operations and financial condition.

The rates we are allowed to charge our customers for retail and wholesale services have the most significant impact on our financial condition, results of operations, and liquidity. Rate regulation provides us an opportunity to recover prudently incurred costs and earn a reasonable rate of return on invested capital. However, our ability to obtain rate adjustments in the future is dependent upon regulatory action, the outcome of which can be influenced by the level of opposition by intervening parties; potential rate impacts; increasing levels of regulatory review; and changes in the political, regulatory, or legislative environments. There is no assurance that our regulators will consider all of our costs to have been prudently incurred. In addition, our rate proceedings may not always result in rates that fully recover our costs or provide for a reasonable ROE. We defer certain costs and revenues as regulatory assets and liabilities for future recovery from or refund to customers, as authorized by our regulators. Future recovery of regulatory assets is not assured and is subject to review and approval by our regulators. If recovery is not approved or is no longer deemed probable, these costs would be recognized in current period expense and could have a material adverse impact on our results of operations, cash flows, and financial condition.

Changes in the local and national political, regulatory, and economic environment, including significant attention on energy affordability concerns, have had, and may in the future have, an adverse effect on regulatory decisions, which could impair our ability to recover costs historically collected from customers. These decisions, which may come from any level of government, may cause us to cancel or delay current or planned projects, to reduce or delay other planned capital expenditures, or to pay for investments or otherwise incur costs that we may not be able to recover through rates or otherwise.

We believe we have obtained the necessary permits, approvals, authorizations, certificates, and licenses for our existing operations, have complied in all material respects with all of their associated terms, and that our business is conducted in accordance with applicable laws. These permits, approvals, authorizations, certificates, and licenses may be revoked or modified by the agencies that granted them if facts develop that differ significantly from the facts assumed when they were issued. In addition, permits and other approvals and licenses are often granted for a term that is less than the expected life of the associated facility and may require periodic renewal, which may result in additional requirements being imposed by the granting agency. In addition, existing regulations may be revised or reinterpreted by federal, state, and local agencies, or these agencies may adopt new laws and regulations that apply to us. We cannot predict the impact on our business and operating results of any such actions by these agencies.

If we are unable to recover regulatory compliance costs or other associated costs in customer rates in a timely manner, or if we are unable to obtain, renew, or comply with these governmental permits, approvals, authorizations, certificates, or licenses, our results of operations and financial condition could be materially and adversely affected.

*2025 Form 10-K* 15 *Wisconsin Public Service Corporation*

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***We face significant costs to comply with existing and future environmental laws and regulations.***

Our operations are subject to extensive and evolving federal, state, and local environmental laws, regulations, and permit requirements related to, among other things, air emissions (including, but not limited to: CO2, methane, mercury, SO2, NOx, ozone and other pollutants), protection of natural resources, water quality, wastewater discharges, management of hazardous and toxic substances and solid wastes and soils, and climate change. Many of these rules are now the subject of a large deregulatory effort by the EPA and have resulted, and are expected to continue to result in, the adoption of new federal, state, and/or local level laws and regulations. Any EPA actions will require formal rulemaking proceedings and are likely to be subject to legal challenges. In addition, at the end of 2025, the President issued executive orders directing the DOE to issue orders keeping certain coal plants running for grid reliability despite utilities' plans to retire them. Future orders impacting our planned retirements of coal plants could impact our ability to execute on our capital plan and to meet our environmental goal. We continue to monitor the evolving regulatory landscape and standards for impacts on our business operations and financial condition.

We incur significant capital costs and expend operating resources to comply with environmental laws, regulations, and requirements, including costs associated with the installation of pollution control equipment; operating restrictions on our facilities; and environmental monitoring, emissions fees, and permits at our facilities. The operation of emission control equipment and compliance with rules regulating our intake and discharge of water could also increase our operating costs and reduce the generating capacity of our power plants. These regulations may create substantial additional costs in the form of taxes or emission allowances and could affect the availability and/or cost of fossil fuels and our ability to continue operating certain generating units. Failure to comply with these laws, regulations, and requirements, even if caused by factors beyond our control, may result in the assessment of civil or criminal penalties and fines. We continue to assess the cost of compliance and to explore different compliance alternatives with these and other environmental regulations. The cost of compliance with these regulations, and other factors, has resulted in certain of our coal-fired electric generating units being retired or converted to an alternative type of fuel, and may impact the future operations of our existing fossil-fueled generation.

We are also subject to significant liabilities related to the investigation and remediation of environmental impacts at certain of our current and former facilities and at third-party owned sites. We accrue liabilities and defer costs (recorded as regulatory assets) incurred in connection with our former manufactured gas plant sites. These costs include all costs incurred to date that we expect to recover, management's best estimates of future costs for investigation and remediation and related legal expenses, and are net of amounts recovered (or that may be recovered) from insurance or other third parties. Due to the potential for the imposition of stricter standards and greater regulation in the future, the possibility that other potentially responsible parties may not be willing or financially able to contribute to cleanup costs, a change in conditions or the discovery of additional contamination, our remediation costs could increase, and the timing of our capital and/or operating expenditures in the future may accelerate or could vary from the amounts currently accrued.

Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental laws and regulations, occurs frequently throughout the United States. This litigation has included claims for damages alleged to have been caused by GHG and other emissions and exposure to regulated substances and/or requests for injunctive relief in connection with such matters. In addition to claims relating to our current facilities, we may also be subject to potential liability in connection with the environmental condition of facilities that we previously owned and operated, regardless of whether the liabilities arose before, during, or after the time we owned or operated these facilities. If we fail to comply with environmental laws and regulations or cause (or caused) harm to the environment or persons, that failure or harm may result in the assessment of civil penalties and damages against us. The incurrence of a material environmental liability or a material judgment in any action for personal injury or property damage related to environmental matters could have a material adverse effect on our results of operations and financial condition.

In the event we are not able to recover all of our environmental expenditures and related costs from our customers in the future, our results of operations and financial condition could be adversely affected. Further, increased costs recovered through rates could contribute to reduced demand for electricity and natural gas, which could adversely affect our results of operations, cash flows, and financial condition.

***Our operations, capital expenditures, and financial results may be affected by the impact of greenhouse gas legislation, regulation, and our emission reduction goal.***

There has been significant attention to issues concerning climate change as well as activism from certain stakeholders, including institutional investors and other sources of financing, to accelerate the transition to limit GHG emissions. Although the EPA is pursuing a large deregulatory effort of GHG laws and regulations, significant laws and regulations restricting emissions of GHGs

*2025 Form 10-K* 16 *Wisconsin Public Service Corporation*

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continue to impact our current and planned operations. Costs associated with such legislation, regulation, and our emission reduction goal could be significant within our electric and natural gas operations. New or additional restrictive GHG legislation or regulations may cause our environmental compliance spending to differ materially from the amounts currently estimated. There is no guarantee that we will be allowed to fully recover compliance costs of these and other federal and state regulations or that cost recovery will not be delayed or otherwise conditioned. GHG legislation, regulation, or the emission reduction goal, as well as changes in the fuel markets and advances in technology, could make electric generating units uneconomic to maintain, may impact how we operate our existing fossil-fueled power plants, and could cause us to retire and replace units earlier than planned under the WEC Energy Group capital plan, which could lead to a possible loss on abandonment and reduced revenues.

In a movement toward electrification, certain states and municipalities near our service territory have passed legislation or are considering ordinances banning natural gas used in new construction in order to limit GHG emissions. There have also been efforts to restrict residential natural gas-fired appliances. Future actions like these to regulate GHG emissions in our service territory could increase the price of natural gas resulting in reduced demand for, and revenues from, natural gas, cause us to accelerate the replacement and/or updating of our natural gas delivery system, and adversely affect our ability to operate our natural gas facilities. The adoption of electrification initiatives and/or mandates could also result in an increase in electrical demand and increased investment costs for existing or new electrical systems. These types of initiatives and/or mandates could result in increased costs associated with permitting and siting of new technologies and delayed installation and start-up timelines. In addition, financial investments in older carbon-intensive technologies may not be fully realized.

WEC Energy Group has set a goal for its generation fleet, which includes us, to be net carbon neutral by the end of 2050. WEC Energy Group expects to be in a position to eliminate coal as an energy source by the end of 2032. In addition, we continue to monitor the financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases. The ability to achieve this goal depends on many external factors, including the ability to make operating refinements, the retirement of less efficient generating units, the development of relevant energy technologies, the use of RNG throughout our natural gas utility system, the ability to procure renewable thermal credits, legislative and regulatory support for renewable generation, the ability to maintain reliability with demand growth, and the ability of WEC Energy Group to execute its capital plan.

***Changes in tax legislation, IRS audits, or our inability to use certain tax benefits and carryforwards, may adversely affect our financial condition, results of operations, and cash flows, as well as our credit ratings.***

Tax legislation and regulations can adversely affect, among other things, our financial condition, results of operations, cash flows, liquidity, and credit ratings. In July 2025, the OBBBA was signed into law, enacting significant modifications to clean-energy tax credits previously provided under the IRA. The OBBBA provides companies the ability to earn solar and wind tax credits at current credit rates under new beginning of construction rules. Solar and wind tax incentives can be denied for energy projects that use equipment beyond statutory guidelines from prohibited foreign entities or for taxpayers that exceed certain thresholds of equity or debt held by prohibited foreign entities.

Future changes to corporate tax rates or policies, including under Treasury Regulations and guidance issued in connection with the IRA and OBBBA, could require us to take material charges against earnings. Such changes include, among other things, increasing the federal corporate income tax rate, disallowing or limiting the use of solar and wind tax incentives and other tax benefits and carryforwards, limiting interest deductions, and altering the expensing of capital expenditures. Our inability to manage these changes, an adverse determination by one of the applicable taxing jurisdictions, or additional interpretations, implementing regulations, amendments, or technical corrections by the Treasury Department, the IRS, or state income tax authorities, could significantly impact our financial results and cash flows.

We have significantly reduced our federal and state income tax liabilities in the past through tax credits, net operating losses, and charitable contribution deductions. A reduction in or disallowance of these tax benefits could adversely affect our earnings and cash flows. We have not fully used these allowed tax benefits in our previous tax filings and have carried them forward to use against future taxable income. Our inability to generate sufficient taxable income in the future to fully use these tax carryforwards before they expire, or to transfer future tax credits as discussed below, could significantly affect our tax obligations and financial results.

In addition, we have invested, and plan to continue to invest, in renewable energy generating facilities. These facilities generate PTCs or ITCs that we can use to reduce our federal tax obligations. Under the IRA, a transferability option also allows us to sell these tax credits to third parties. The amount of tax credits we earn depends on available government incentives and policies, the amount of electricity produced, the applicable tax credit rate, or the amount of the investment in qualifying property. Reductions or eliminations of tax credits or other governmental incentives that promote renewable energy generating facilities, or the imposition

*2025 Form 10-K* 17 *Wisconsin Public Service Corporation*

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of additional taxes, tariffs, or other assessments related to renewable energy projects or the equipment necessary to generate or deliver it, may limit our ability to make further investments in renewable energy generating facilities or reduce the returns on our existing investments. In addition, a variety of operating and economic factors, including transmission constraints, adverse weather conditions, and breakdown or failure of equipment, could significantly reduce the PTCs generated by the renewable projects we have invested in, any of which could result in a material adverse impact on our financial condition and results of operations.

We are also uncertain as to how credit rating agencies, capital markets, the FERC, or state public utility commissions will treat any future changes to federal or state tax legislation. These impacts could subject us to credit rating downgrades. In addition, certain financial metrics used by credit rating agencies, such as our funds from operations-to-debt percentage, could be negatively impacted by changes in federal or state income tax legislation.

***We could be subject to higher costs and penalties as a result of mandatory reliability standards.***

We are subject to mandatory reliability and critical infrastructure protection standards established by the North American Electric Reliability Corporation and enforced by the FERC. The critical infrastructure protection standards focus on controlling access to critical physical and cybersecurity assets. Compliance with the mandatory reliability standards could subject us to higher operating costs. Noncompliance with the mandatory reliability standards could result in sanctions, including substantial monetary penalties, or damage to our reputation.

**Risks Related to the Operation of Our Business**

***Public health crises, including epidemics and pandemics, could adversely affect our business functions, financial condition, liquidity, and results of operations.***

Public health crises, including epidemics and pandemics, and any related government responses may adversely impact the economy and financial markets and could have a variety of adverse impacts on us, including a decrease in revenues; increased bad debt expense; increases in past due accounts receivable balances; and access to the capital markets at unreasonable terms or rates. These crises and any related government responses could also impair our ability to develop, construct, and operate facilities. Risks include extended disruptions to supply chains and inflation, resulting in increased costs for labor, materials, and services, which could adversely impact WEC Energy Group's ability to implement its corporate strategy. We may also be adversely impacted by labor disruptions and productivity as a result of infections, employee attrition, or the inability to replace or maintain appropriate staffing. The extent to which future public health crises may affect us depends on factors beyond our knowledge or control. As a result, we are unable to determine the potential impact any such public health crises may have on our business plans and operations, liquidity, financial condition, and results of operations.

***Our operations are subject to risks arising from the reliability and safety of our electric generation, transmission, and distribution facilities, natural gas infrastructure facilities, renewable energy facilities, and other facilities, as well as the reliability of third-party transmission providers.***

Our financial performance depends on the successful operation of our electric generation and transmission, natural gas and electric distribution facilities, and renewable energy facilities. Inherent in electric generation and distribution and natural gas transportation and distribution activities are a variety of hazards and operational risks, including accidents, operator error, and the breakdown or failure of equipment or processes including leaks, accidental explosions, mechanical problems, fires, discharges or releases of toxic or hazardous substances or gases, and other environmental risks. Potential breakdown or failure may occur due to severe weather (i.e., storms, tornadoes, floods, droughts, etc.); catastrophic events (i.e., fires, earthquakes, and explosions); public health crises; significant changes in water levels in waterways; fuel supply or transportation disruptions; accidents; employee labor disputes; construction delays or cost overruns; delays in the replacement of aging infrastructure; shortages of or delays in obtaining equipment, material, and/or labor; performance below expected levels; operating limitations that may be imposed by environmental or other regulatory requirements; terrorist or other physical attacks; or cybersecurity intrusions.

The location of natural gas pipelines near populated areas could increase the level of damages resulting from these risks. Unplanned outages at our power plants may cause us to incur significant costs if we are required to operate our higher cost electric generators or purchase replacement power to satisfy our obligations. Because our electric generation and renewable energy facilities are interconnected with third-party transmission facilities, the operation of our facilities could also be adversely affected by events impacting their systems.

*2025 Form 10-K* 18 *Wisconsin Public Service Corporation*

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These hazards and operational risks could result in serious injury to employees and non-employees, loss of human life, significant damage to property, environmental pollution, and impairment of operations. They may also subject us to litigation and/or administrative proceedings from time to time, which could result in substantial monetary judgments, fines, or penalties against us, or be resolved on unfavorable terms. Any of these events could lead to substantial financial losses, including increased maintenance costs, unanticipated capital expenditures, and a reduction of revenues, which could materially and adversely affect our results of operations, financial condition, and cash flows.

***Our natural gas operations depend upon the availability of adequate interstate pipeline transportation capacity and natural gas.***

We purchase almost all of our natural gas supply from interstate sources that must be transported to our service territory. Interstate pipeline companies transport the natural gas to our natural gas systems under firm service agreements that are designed to meet the requirements of our core markets. A significant disruption to interstate pipelines capacity or reduction in natural gas supply due to events including, but not limited to, operational failures or disruptions, hurricanes, tornadoes, floods, freeze-off of natural gas wells, terrorist or physical attacks, cyberattacks, other acts of war, or legislative or regulatory actions or requirements, including remediation related to integrity inspections or regulations and laws enacted to address climate change or other environmental matters, could reduce the normal interstate supply of natural gas and thereby significantly disrupt our operations and/or reduce earnings.

***Our operations are subject to various conditions that can result in fluctuations in energy sales to customers, including fluctuations in customer growth and general economic conditions in our service area, varying weather conditions, and energy conservation efforts.***

Our results of operations and cash flows are affected by the demand for electricity and natural gas, which can vary greatly based upon:

• *Fluctuations in customer growth and general economic conditions in our service area.* Customer growth and energy use can be negatively impacted by population declines as well as economic factors in our service territory, including workforce reductions, stagnant wage growth, changing levels of support from state and local government for economic development, business closings, and reductions in the level of business investment. Our electric and natural gas operations are impacted by economic cycles and the competitiveness of the commercial and industrial customers we serve. Any economic downturn, disruption of financial markets, or reduced incentives by state government for economic development could adversely affect the financial condition of our customers and demand for their products or services. These risks could directly influence the demand for electricity and natural gas as well as the need for additional power generation and generating facilities. We could also be exposed to greater risks of accounts receivable write-offs if customers are unable to pay their bills.

*• Weather conditions*. Demand for electricity is greater in the summer and winter months when cooling and heating is necessary. Demand for natural gas peaks in the winter heating season. As a result, our overall results may fluctuate on a seasonal basis and could be negatively impacted by milder temperatures during the summer cooling season and winter heating season.

• *Our customers' continued focus on energy conservation*. Our customers' use of electricity and natural gas has decreased as a result of continued individual conservation efforts, including the use of more energy efficient technologies, and could be further reduced by new building codes, DERs, energy storage technology, and private solar. Customers could also voluntarily reduce their consumption of energy in response to decreases in their disposable income and increases in energy prices. Conservation of energy can be influenced by certain federal and state programs that are intended to influence how consumers use energy. For example, several states, including Wisconsin, have adopted energy efficiency targets to reduce energy consumption.

As part of our planning process, we estimate the impacts of changes in customer growth and general economic conditions, weather, and customer energy conservation efforts, but risks still remain. Any of these matters, as well as any regulatory delay in adjusting rates as a result of fluctuations in energy demand or the adoption of new technologies, could adversely impact our results of operations and financial condition. In addition, elimination or reduced financial support of programs that provide energy assistance to our customers, including the Low Income Home Energy Assistance Program, could impact the demand for energy and/or adversely impact our liquidity.

***Our operations are subject to the effects of global climate change.***

A changing climate creates uncertainty and could result in broad changes, both physical and financial in nature, to our service territory. If climate changes occur that result in extreme temperatures in our service territory, our financial results could be adversely impacted by lower electric and natural gas usage and higher natural gas costs. Our operations could be adversely affected and our facilities placed at greater risk of damage should changes in global climate produce, among other possible conditions,

*2025 Form 10-K* 19 *Wisconsin Public Service Corporation*

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unusual variations in temperature and weather patterns, which could result in more intense, frequent and extreme weather events, such as storms, including derecho events, with high winds, lightning, and hail, floods, drought, wild fires, tornadoes, snow and ice storms, or abnormal levels of precipitation. An extreme weather event could result in damage to distribution and transmission infrastructure, wind and solar generation facilities, or other operating equipment. This could result in us incurring significant restoration costs, and foregoing sales of energy and lost revenues. Extreme weather in summer could cause electric load to be interrupted or certain customers to be curtailed who participate in load management programs. Additionally, an extreme weather event could also cause the cost of natural gas purchased for our natural gas utility customers and for the use of fuel at our generation facilities to be temporarily driven significantly higher than our normal winter weather expectations. Although we have a regulatory mechanism in place for recovering all prudently incurred natural gas costs, our regulators could disallow recovery or order the refund of any costs determined to be imprudent.

Extreme weather may also result in unexpected increases in customer load, requiring us to procure additional power at wholesale prices for our retail operations, unpredictable curtailment of customer load by MISO to maintain grid reliability, or other grid reliability issues. Any of these events could lead to substantial financial losses including increased maintenance costs or unanticipated capital expenditures. The cost of storm restoration efforts may also not be fully recoverable through the regulatory process.

Changes in WEC Energy Group's corporate strategy to combat climate change, including mitigation and adaptation efforts and technology advancement, may materially adversely impact our results of operations and cash flows.

***Our operations and future results may be impacted by changing expectations and demands of our customers, regulators, investors, and other stakeholders.***

Our ability to execute WEC Energy Group's corporate strategy and achieve anticipated financial outcomes are influenced by the expectations of our customers, regulators, investors, and other stakeholders. Those expectations are based in part on the core fundamentals of affordability and reliability but are also increasingly focused on our ability to meet rapidly changing demands for new and varied products, services, and offerings. Efforts to roll back certain environmental rules and social policies and programs may conflict with the expectations of our customers, regulators, or investors, creating additional uncertainty as we look to balance our stakeholders' competing priorities, and could lead to litigation and government investigations. Failure to meet these expectations or to adequately address the risks and external pressures may impact our reputation and affect our ability to achieve favorable outcomes in future rate cases or our results of operations. Furthermore, the increasing use of social media may accelerate and increase the potential scope of negative publicity we might receive and could increase the negative impact on our reputation, business, results of operations, and financial condition.

***Our operations and WEC Energy Group's corporate strategy may be adversely affected by supply chain disruptions, inflation, and tariffs.***

Our business is dependent on the global supply chain to ensure that equipment, materials, and other resources are available to both expand and maintain services in a safe and reliable manner. Increased tensions between the United States and other countries, as well as new, protracted, or escalating regional or international conflicts, could result in domestic and global supply chain disruptions that delay the delivery, or result in shortages of, materials, equipment, and other resources that are critical to our business operations. Failure to eliminate or manage the constraints in the supply chain may eventually impact the availability of items that are necessary to support normal operations as well as materials that are required to implement WEC Energy Group's corporate strategy for continued utility and infrastructure growth, including our renewable energy projects.

Prices of equipment, materials, and other resources have increased and may continue to increase in the future, as a result of supply chain disruptions, inflation, and tariffs. Further governmental actions related to trade policy could exacerbate global supply chain disruptions and/or inflation. Increased costs for labor, materials, and services, as a result of supply chain disruptions, inflation, or tariffs, and failure to secure these resources on economically acceptable terms, as well as any regulatory delay in adjusting rates to account for increased costs, may adversely impact our business operations, financial condition, and/or capital plan.

***We are actively involved with multiple significant capital projects, which are subject to a number of risks and uncertainties that could adversely affect project costs and completion of construction projects.***

Our business requires substantial capital expenditures for investments in, among other things, capital improvements to our electric generating facilities, electric and natural gas distribution infrastructure, LNG storage, and other projects, including projects for environmental compliance. We also expect to continue constructing and investing in renewable energy and natural gas generating

*2025 Form 10-K* 20 *Wisconsin Public Service Corporation*

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facilities as part of the WEC Energy Group capital plan and its goal to be net carbon neutral by the end of 2050. In addition, we continue to invest in technology and the development of software applications to support our business.

Achieving the intended benefits of any large construction project is subject to many uncertainties, some of which we will have limited or no control over, that could adversely affect project costs and completion time. Supply chain disruptions, including solar panel shortages and delays, increasing material costs, government regulations and tariffs, and other factors, could impact the timing of completion of our renewable projects. Additional risks include, but are not limited to, the ability to adhere to established budgets and time frames; the availability of labor or materials at estimated costs; the ability of contractors to perform under their contracts; strikes; adverse weather conditions; potential legal challenges; changes in applicable laws or regulations; rising interest rates; inflation; tariffs; the impact of public health crises; other governmental actions; continued public and policymaker support for such projects; and events in the global economy.

Certain of these projects require the approval of the PSCW. If construction of PSCW-approved projects should materially and adversely deviate from the schedules, estimates, and/or projections on which the approval was based, the PSCW may deem the additional capital costs as imprudent and disallow recovery of them through rates, and otherwise available PTCs and ITCs for renewable energy projects could be lost or lose value. Efforts to pause approvals related to wind development could threaten our ability to execute our capital plan. Other renewable energy sources, including solar developments, could also be at risk. In addition, the PSCW, in a future rate proceeding, may alter the timing or amount of certain costs for which recovery is allowed.

To the extent that delays occur, costs become unrecoverable, tax credits are lost or lose value, or we or third parties with whom we invest and/or partner otherwise become unable to effectively manage and complete capital projects, our results of operations, cash flows, and financial condition may be adversely affected.

***Our operations are subject to risks beyond our control, including but not limited to, cybersecurity intrusions, terrorist or other physical attacks, acts of war, or unauthorized access to personally identifiable information.***

We have been subject to attempted cyber attacks from time to time, and will likely continue to be subject to such attempted attacks; however, these prior attacks have not had a material impact on our system or business operations. All of our assets and systems are potentially vulnerable to disability, failures, or unauthorized access due to physical or cybersecurity intrusions caused by human error, vendor bugs, terrorist or other physical attacks (including potential attacks on our substations and other electric distribution equipment), acts of war, or other malicious acts. Cybersecurity threats could result in a full or partial disruption of our ability to generate, transmit, purchase, or distribute electricity or natural gas or cause environmental repercussions. If our assets or systems were to fail, be physically damaged, or be breached, and were not recovered in a timely manner, we may be unable to perform critical business functions, and data, including sensitive information, could be compromised. Cybersecurity attacks, including attacks targeting utility systems and other critical infrastructure, may increase during periods of heightened or escalating geopolitical tensions.

We operate in an industry that requires the use of sophisticated information technology systems and network infrastructure, which in turn control an interconnected network of generation, distribution, and transmission systems shared with third parties. A successful physical or cybersecurity intrusion may occur despite our security measures or those we require of our vendors, including compliance with reliability and critical infrastructure protection standards. Successful cybersecurity intrusions, including those targeting the electronic control systems used at our generating facilities and electric and natural gas transmission and distribution systems, could disrupt our operations and result in loss of service to customers. Attacks may come through ransomware, software updates or patches, or firmware that hackers can manipulate. These intrusions may cause unplanned outages at our power plants, which may reduce our revenues or cause us to incur significant costs if we are required to operate our higher cost electric generators or purchase replacement power to satisfy our obligations, and could result in additional maintenance expenses. The risk of such intrusions may also increase our capital and operating costs as a result of having to implement increased security measures for protection of our information technology and infrastructure.

Our continued efforts to integrate, consolidate, and streamline our operations with those of WEC Energy Group's other subsidiaries have also resulted in increased reliance on current and recently completed projects for technology systems. The failure to enhance existing information technology systems and adopt or successfully implement new technology, could adversely affect our operations. Cybersecurity threats, including those leveraging AI, continue to increase, and the security measures and preventative actions we take to reduce the risk of cybersecurity incidents and protect our systems against unauthorized access to secured data and systems may be insufficient to safeguard against all security breaches. The failure of any of these important technologies, or our inability to support, update, expand, and/or integrate these technologies with those of our affiliates, could materially and adversely

*2025 Form 10-K* 21 *Wisconsin Public Service Corporation*

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impact our operations, diminish customer confidence and our reputation, materially increase the costs we incur to protect against these risks, and subject us to possible financial liability or increased regulation or litigation.

Our business requires the collection and retention of personally identifiable information of our customers and employees, who expect that we will adequately protect such information. In some cases, we rely on third-party hosted services to support our business operations. Malicious actors may target these providers to disrupt the services they provide to us, or to use those third parties to attack us. Security breaches of our or our third-party service providers' systems may expose us to a risk of loss or misuse of confidential and proprietary information. A significant theft, loss, or fraudulent use of personally identifiable information may lead to potentially large costs to notify and protect the impacted persons, and/or could cause us to become subject to significant litigation, costs, liability, fines, or penalties, any of which could materially and adversely impact our results of operations as well as our reputation with customers and regulators, among others. In addition, we may be required to incur significant costs associated with governmental actions in response to such intrusions or to strengthen our information and electronic control systems. We may also need to obtain additional insurance coverage related to the threat of such intrusions.

Threats to our systems and operations continue to emerge as new ways to compromise components into our systems or networks are developed. Any operational disruption or environmental repercussions caused by on-going or future threats to our assets and technology systems could result in a significant decrease in our revenues or significant reconstruction or remediation costs, which could materially and adversely affect our results of operations, financial condition, and cash flows. The costs of repairing damage to our facilities, operational disruptions, protecting personally identifiable information, and notifying impacted persons, as well as related legal claims, may also not be recoverable in rates, may exceed the insurance limits on our insurance policies, or, in some cases, may not be covered by insurance.

***Adoption of AI technologies could adversely affect our business, reputation, or financial results.***

We are using AI primarily through services provided by our third party vendors. In addition, we are exploring the use of AI, including generative AI, and its ability to enhance the services we offer. There are significant risks involved in developing and deploying AI, and there can be no assurance that the use of AI will enhance our services or be beneficial to our business, including with respect to the efficiency and resiliency of our systems. Our AI-related efforts may give rise to risks related to accuracy, bias, discrimination, intellectual property infringement or misappropriation, data privacy, and cybersecurity, among others. In addition, the adoption of AI may subject us to new or enhanced governmental or regulatory scrutiny, laws, rules, directives, or regulations governing the use of AI, as well as litigation, ethical concerns, negative customer perceptions as to automation and AI, legal liability or other complications that could adversely affect our business, reputation, or financial results. We may not be able to recover our investments in AI technology through our regulatory proceedings. Similarly, as AI continues to evolve, we may not be able to adopt and implement AI as quickly as our customers or communities desire or regulators may require. AI is a relatively new and rapidly evolving technology, and we are unable to predict all of the risks that may result from our and our vendors' adoption of AI initiatives.

***Advances in technology, and legislation or regulations supporting such technology, could make our electric generating facilities less competitive and may impact the demand for natural gas.***

Advances in new technologies that produce or store power or reduce power consumption are ongoing and include renewable energy technologies, customer-oriented generation, energy storage devices, and energy efficiency technologies. We generate power at central station power plants and utility-scale renewable generation facilities to achieve economies of scale and produce power at a competitive cost. Distributed generation technologies that produce power, including fuel cells, microturbines, wind turbines, solar cells, and related energy storage devices, have technologically improved and have become more cost competitive than they were in the past.

Legislation, including the IRA and the Infrastructure Investment and Jobs Act, has promoted the construction and cost-effectiveness of renewable energy generation, including distributed generation technologies for self-supply of electricity by our customers and third parties. Increased use of technologies such as private solar and battery storage in our service territories could reduce our recovery of fixed costs, could result in customers leaving the electric distribution system, and could cause an increase in customer net energy metering, which allows customers with private solar to receive bill credits for surplus power at the full retail amount. Over time, customer adoption of these technologies could result in us not being able to fully recover the costs and investment in generation.

Federal and state regulations and other efforts designed to promote and expand the use of distributed generation technologies also incentivize modernization of the electric distribution grid to, among other things, accommodate two-way flows of electricity and

*2025 Form 10-K* 22 *Wisconsin Public Service Corporation*

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increase the grid's capacity to interconnect to these distributed generation technologies. Other legislation or regulations could be adopted supporting the use of these technologies at below cost or that permit third-party sales from such facilities, and allow these facilities to interconnect to our distribution system. There is also a risk that advances in technology will continue to reduce the costs of these alternative methods of producing power to a level that is competitive with that of central station and utility-scale renewable power production. In addition, regulatory support of co-locating generation near data centers could impact our generation planning and its related cost recovery and could cause our generation to be less cost effective.

We also cannot predict the effect that development of alternative energy sources or new technology may have on our natural gas operations, including whether subsidies of alternative energy sources by local, state, and federal governments might be expanded, or what impact this might have on the supply of or the demand for natural gas.

If these technologies become cost competitive and achieve economies of scale, our market share could be eroded, and the value of our generating facilities and natural gas distribution systems could be reduced. Advances in technology, or changes in legislation or regulations, could also change the channels through which our customers purchase or use power and natural gas, which could reduce our sales and revenues or increase our expenses.

***We may fail to attract and retain an appropriately qualified workforce.***

We operate in an industry that requires many of our employees to possess unique technical skill sets. Events such as an aging workforce without appropriate replacements, the mismatch of skill sets to future needs, or the unavailability of contract resources may lead to operating challenges or increased costs. These operating challenges include lack of resources, loss of knowledge, and a lengthy time period associated with skill development. Failure to hire and obtain replacement employees, including the ability to transfer significant internal historical knowledge and expertise to the new employees, may adversely affect our ability to manage and operate our business. If we are unable to successfully attract and retain an appropriately qualified workforce, our results of operations could be adversely affected.

***Our counterparties may fail to meet their obligations, including obligations under power purchase, natural gas supply, natural gas pipeline capacity, and transportation agreements.***

We are exposed to the risk that counterparties to various arrangements who owe us money, electricity, natural gas, or other commodities or services will not be able to perform their obligations. Should the counterparties to these arrangements fail to perform or if capacity is inadequate, we may be required to replace the underlying commitment at current market prices or we may be unable to meet all of our customers' electric and natural gas requirements unless or until alternative supply arrangements are put in place. In such event, we may incur losses, and our results of operations, financial position, or liquidity could be adversely affected.

We have entered into several power purchase, natural gas supply, natural gas pipeline capacity, and transportation agreements with non-affiliated companies. Revenues are dependent on the continued performance by the counterparties of their obligations under these agreements. Although we have a comprehensive credit evaluation process and contractual protections, it is possible that one or more counterparties could fail to perform their obligations. If this were to occur, we generally would expect that any operating and other costs that were initially allocated to a defaulting customer's power purchase, natural gas supply, natural gas pipeline capacity, or transportation agreement would be reallocated among our retail customers. To the extent these costs are not allowed to be reallocated by our regulators or there is any regulatory delay in adjusting rates, a counterparty default under these agreements could have a negative impact on our results of operations and cash flows.

**Risks Related to Economic and Market Volatility**

***Our business is dependent on our ability to successfully access credit and capital markets on competitive terms and rates.***

We rely on access to credit and capital markets to support our capital requirements, including expenditures for our utility infrastructure and to comply with future regulatory requirements, to the extent not satisfied by the cash flow generated by our operations. We have historically secured funds from a variety of sources, including the issuance of short-term and long-term debt securities. In addition, we rely on a committed bank credit agreement as back-up liquidity, which allows us to access the low cost commercial paper markets. The availability of credit depends upon the ability of banks providing commitments under the facility to provide funds when their obligations to do so arise. Systemic risk of the banking system and the financial markets could prevent a bank from meeting its obligations under the credit agreement.

*2025 Form 10-K* 23 *Wisconsin Public Service Corporation*

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Successful implementation of our long-term business strategies, including capital investment, is dependent upon our ability to access the capital markets, including the banking and commercial paper markets, on competitive terms and rates. An increase in interest rates may adversely affect our results of operations and our ability to earn our approved rate of return. High interest rates may also impair our ability to cost-effectively finance capital expenditures and to refinance maturing debt.

Our access to the credit and capital markets could be limited, or our cost of capital significantly increased, due to any of the following risks and uncertainties:

• A rating downgrade;

• Failure to comply with debt covenants;

• An economic downturn or uncertainty;

• Prevailing market conditions and rules;

• Political tensions, including civil unrest and election volatility;

• Concerns over foreign economic conditions;

• Changes in tax policy;

• Changes in investment criteria of institutional investors or banks;

• War or the threat of war;

• Growth in AFUDC during periods of significant construction; and

• The overall health and view of the utility and financial institution industries.

If any of these risks or uncertainties limit our access to the credit and capital markets or significantly increase our cost of capital, it could limit our ability to implement, or increase the costs of implementing, our business plan, which, in turn, could materially and adversely affect our results of operations, cash flows, and financial condition.

***A downgrade in our credit ratings could negatively affect our ability to access capital at reasonable costs and/or require the posting of collateral.***

There are a number of factors that impact our credit ratings, including, but not limited to, capital structure, regulatory environment, the ability to cover liquidity requirements, and other requirements for capital. We could experience a downgrade in ratings if the rating agencies determine that our level of business or financial risk, or that of the utility industry, has deteriorated. Changes in rating methodologies by the rating agencies could also have a negative impact on credit ratings. Any downgrade by the rating agencies could increase borrowing costs under our existing credit facility or future financings, decrease funding sources, limit the availability of adequate credit support for our operations, and trigger collateral requirements in various contracts.

***The fluctuation in demand for certain commodities and their respective prices could negatively impact our operations.***

Our operating and liquidity requirements are impacted by changes in the forward and current market prices of natural gas, coal, electricity, renewable energy credits, and ancillary services.

We burn natural gas in several of our electric generation plants and as a supplemental fuel at one of our coal-fired plants. In many instances the cost of purchased power is tied to the cost of natural gas. The cost of natural gas may increase because of disruptions in the supply of natural gas due to a curtailment in production or distribution, international market conditions, the demand for natural gas, and the availability of shale gas and potential regulations and/or other government action affecting its accessibility. We also burn coal at certain of our electric generation facilities. We may be obligated to pay for coal deliveries under our contracts even if our coal-fired generating facilities do not operate enough to fully utilize the amounts of coal covered by the contracts.

For Wisconsin retail electric customers, we bear the risk for the recovery of fuel and purchased power costs within a symmetrical 2% fuel tolerance band compared to the forecast of fuel and purchased power costs established in our rate structure. Prudently incurred fuel and purchased power costs are recovered dollar-for-dollar from our wholesale electric customers. We receive dollar-for-dollar recovery of prudently incurred natural gas costs from our natural gas customers.

Changes in the demand for commodities and their respective prices could result in:

• Higher working capital requirements, particularly related to natural gas inventory, accounts receivable, and cash collateral postings;

• Reduced profitability to the extent that lower revenues, higher fuel costs, increased bad debt, and higher interest expense are not recovered through rates;

*2025 Form 10-K* 24 *Wisconsin Public Service Corporation*

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• Higher rates charged to our customers, which could impact our competitive position;

• Reduced demand for energy, which could impact revenues and operating expenses; and

• Shutting down of generation facilities if the cost of generation exceeds the market price for electricity.

***We may not be able to obtain an adequate supply of coal, which could limit our ability to operate our coal-fired facilities.***

We operate jointly-owned coal-fired electric generating units. Although we generally carry sufficient coal inventory at our generating facilities to protect against an interruption or decline in supply, there can be no assurance that the inventory levels will be adequate. While we have coal supply and transportation contracts in place, we cannot assure that the counterparties to these agreements will be able to fulfill their obligations to supply coal to us or that we will be able to take delivery of all the coal volume contracted for. Coal deliveries may occasionally be restricted because of rail congestion and maintenance, derailments, weather, public health crises, and supplier financial hardship as a result of decreased demand for coal. If we are unable to obtain our coal requirements under our coal supply and transportation contracts, we may be required to purchase coal at higher prices or we may be forced to reduce generation at our jointly-owned coal-fired units, which could lead to increased fuel costs. The increase in fuel costs could result in either reduced margins on net sales into the MISO Energy Markets, a reduction in the volume of net sales into the MISO Energy Markets, and/or an increase in net power purchases in the MISO Energy Markets. There is no guarantee that we would be able to fully recover any increased costs in rates or that recovery would not otherwise be delayed, either of which could adversely affect our results of operations and cash flows.

***Our use of derivative contracts could result in financial losses.***

We use derivative instruments such as swaps, options, futures, and forwards to manage commodity price exposure. We could recognize financial losses as a result of volatility in the market value of these contracts or if a counterparty fails to perform. These risks are managed through risk management policies, which might not work as planned and cannot entirely eliminate the risks associated with these activities. In addition, although our hedging programs must be approved by the PSCW, derivative contracts entered into for hedging purposes might not offset the underlying exposure being hedged as expected, resulting in financial losses. In the absence of actively quoted market prices and pricing information from external sources, the value of these financial instruments can involve management's judgment or use of estimates. Changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts.

***Restructuring in the regulated energy industry and competition in the retail and wholesale markets could have a negative impact on our business and revenues.***

The regulated energy industry continues to experience significant structural changes. Deregulation or other changes in law in Wisconsin could allow third-party suppliers to contract directly with customers for their natural gas and electric supply requirements. Increased competition in these markets could have a material adverse financial impact on us.

The FERC continues to support the existing RTOs that affect the structure of the wholesale market within these RTOs. In connection with its status as a FERC-approved RTO, MISO implemented bid-based energy markets that are part of the MISO Energy Markets. MISO also implemented an ancillary services market for operating reserves that schedules energy and ancillary services at the same time as part of the energy market. These market designs have the potential to increase costs related to transmission, inefficient generation dispatching, participation in the MISO Energy Markets, and estimated payment settlements.

The FERC rules related to transmission are designed to facilitate competition in the wholesale electricity markets among regulated utilities, non-utility generators, wholesale power marketers, and brokers by providing greater flexibility and more choices to wholesale customers, including initiatives designed to encourage the integration of renewable sources of supply. In addition, along with transactions contemplating physical delivery of energy, financial laws and regulations impact hedging and trading based on futures contracts and derivatives that are traded on various commodities exchanges, as well as over-the-counter. Technology changes in the power and fuel industries also have significant impacts on wholesale transactions and related costs. We currently cannot predict the impact of these and other developments or the effect of changes in levels of wholesale supply and demand, which are driven by factors beyond our control.

***Volatility in the securities markets, interest rates, changes in assumptions, market conditions, and other factors may impact the performance of our benefit plan holdings and other investment funds.***

We have significant obligations related to pension and OPEB plans. If WEC Energy Group is unable to successfully manage our benefit plan assets and medical costs, our cash flows, financial condition, or results of operations could be adversely impacted. Our cost of

*2025 Form 10-K* 25 *Wisconsin Public Service Corporation*

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providing these plans is dependent upon a number of factors, including actual plan experience, changes made to the plans, and assumptions concerning the future. Types of assumptions include earnings on plan assets, discount rates, the level of interest rates used to measure the required minimum funding levels of the plans, future government regulation, estimated withdrawals by retirees, and our required or voluntary contributions to the plans. Plan assets are subject to market fluctuations and may yield returns that fall below projected return rates. In addition, medical costs for both active and retired employees may increase at a rate that is significantly higher than we currently anticipate. Our funding requirements could be impacted by a decline in the market value of plan assets, changes in interest rates, changes in demographics (including the number of retirements), or changes in life expectancy assumptions.

**General Risks**

***We may be unable to obtain insurance on acceptable terms or at all, and the insurance coverage we do obtain may not provide protection against all significant losses.***

Our ability to obtain insurance, as well as the cost and coverage of such insurance, could be affected by developments affecting our business; international, national, state, or local events; and the financial condition of insurers and our contractors that are required to acquire and maintain insurance for our benefit. Insurance coverage may not continue to be available at all or at rates or terms similar to those presently available to us. In addition, our insurance may not be sufficient or effective under all circumstances and against all hazards or liabilities to which we may be subject. Any losses for which we are not fully insured or that are not covered by insurance at all could materially adversely affect our results of operations, cash flows, and financial position.

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

None.

**ITEM 1C. CYBERSECURITY**

As a wholly-owned subsidiary of WEC Energy Group, our cybersecurity-related risks are managed by WEC Energy Group's cybersecurity risk management program.

WEC Energy Group's Board of Directors is responsible for general oversight of the risk environment and associated management policies and practices of WEC Energy Group and its subsidiaries, including us. The WEC Energy Group Board of Directors has delegated to its AOC the responsibility for oversight of our major risk categories and exposures, including with respect to cybersecurity, and management's processes to monitor and control them. The AOC meets regularly throughout the year and receives and reviews various risk management reports about IT/OT cybersecurity, data security, and physical security risks, and discusses these matters with appropriate management and other personnel. WEC Energy Group's CEO (who also serves as our CEO) and its CAO regularly report to the AOC and the WEC Energy Group Board of Directors about cybersecurity matters and risks as well as the adequacy and effectiveness of the cybersecurity risk management program.

To foster an enterprise-wide approach to risk management, WEC Energy Group has established an ERSC chaired by its CEO and comprised of a cross-functional group of senior leaders from across WEC Energy Group's organization. The ERSC regularly reviews key risk areas and oversees the development and implementation of effective compliance and risk management practices, including the use of internal and external audits. WEC Energy Group's Board of Directors and the AOC receive reports regarding the same. Governance of WEC Energy Group's cybersecurity risk management program is overseen by the ERSC, along with steering committees for information security, operational technology security, third-party vendor security controls, Sarbanes-Oxley security controls, and North American Electric Reliability Corporation Critical Infrastructure Protection compliance.

WEC Energy Group's CAO is responsible for enterprise-wide information technology services and cybersecurity system strategy. In this capacity, the CAO oversees the cybersecurity risk management program, which is maintained and implemented by the Enterprise Security Director. WEC Energy Group's CAO has 26 years of experience at the company, during which time she has held a number of management and leadership positions, including Chief Information Officer, through which she has developed expertise in WEC Energy Group's IT/OT cybersecurity, data security, and physical security environment and risk profile.

The Enterprise Security Director, in collaboration with her team, is responsible for IT/OT cybersecurity, data security, and physical security. The Enterprise Security Director identifies, evaluates, and facilitates mitigation of cyber, data, and physical security risks and reports on cybersecurity matters and risks to the ERSC and the AOC. The Enterprise Security Director has over 28 years of

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experience in IT/OT cybersecurity, data security and physical security, and is a certified information system security professional. She is also a member of numerous state and national cybersecurity organizations.

**Cybersecurity Risk Management Program**

Our cybersecurity-related risks are managed through monitoring, defense and response tools, audits and assessments of the program's effectiveness, industry collaboration, and employee training and awareness. WEC Energy Group's cybersecurity risk management program utilizes the cybersecurity framework and maturity models from the National Institute of Standards and Technology and the DOE to continually assess its maturity. This includes regular internal security audits and vulnerability assessments, as well as regular engagement with third-party security experts for external assessments of WEC Energy Group's security controls, including technical, physical, and social aspects. To better comprehend the scope and magnitude of any active threats to our industry and nation and their potential impact on our IT/OT systems, we communicate with other utility companies, government agencies, and other sectors of the economy concerning cybersecurity incidents. All employees are required to complete training annually regarding information security and acceptable use of corporate electronic resources. Annual role-based cybersecurity training as well as ongoing participation in a corporate phishing campaign program, is also required of employees and contractors. In addition, as part of the cybersecurity program, WEC Energy Group has established controls and procedures to assess the adequacy of controls in place at third-party vendors to protect corporate information, including restricted and confidential restricted information we provide to third-party vendors, their employees, or authorized agents. These third-party vendors are also subject to a background investigation prior to being granted physical or electronic access to the company's private property, or physical access to customer premises on behalf of the company.

As part of the cybersecurity program, WEC Energy Group has adopted a cybersecurity incident response plan (the "Plan") designed to identify, evaluate, respond to, and resolve cybersecurity incidents impacting IT/OT systems. Pursuant to the terms of the Plan, WEC Energy Group has established a CSIRT Steering Committee which includes, among others, WEC Energy Group's Chief Financial Officer (who also serves as our Chief Financial Officer), CAO, and the Enterprise Security Director. The CSIRT Steering Committee is responsible for overseeing and implementing the Plan in the event of a cybersecurity threat or incident and provides updates regarding the status of the response to senior management, including WEC Energy Group's CEO, who provides updates and reports regarding cybersecurity incidents to the AOC and/or the WEC Energy Group Board of Directors at regularly scheduled meetings or more frequently, as needed.

In response to an identified cybersecurity incident, or as it deems appropriate, the CSIRT Steering Committee will assemble and oversee a CSIRT, comprised of appropriate personnel and subject matter experts depending on the scope and severity of the incident, relevant or impacted business units and entities, and type of information or systems potentially compromised by the cybersecurity incident. When assembled, the CSIRT is responsible for developing and implementing an overall response strategy to contain, control, and remediate the cybersecurity incident, including securing affected systems and/or information, mitigating harmful effects of the incident, preventing further compromises, and communicating information to affected parties, regulatory agencies and law enforcement, as necessary. The CSIRT may seek assistance from or engage external support providers including legal counsel, outside technology or forensic experts, investigation service providers, and others, as appropriate, to assist in the response to the incident, based on its nature and scope. Pursuant to the Plan and at the direction of WEC Energy Group's CAO, the Enterprise Security Director will conduct a post-incident remediation analysis and report findings to the CSIRT Steering Committee. The Plan is tested and reviewed at least annually.

We have been subject to attempted cybersecurity attacks from time to time, and will likely continue to be subject to such attempted attacks; however, these prior attacks have not had a material impact on our system or business operations. For information about cybersecurity risks to our business, see Item 1A. Risk Factors and the risk factor titled "Our operations are subject to risks beyond our control, including but not limited to, cybersecurity intrusions, terrorist or other physical attacks, acts of war, or unauthorized access to personally identifiable information."

**ITEM 2. PROPERTIES**

We own our principal properties outright. However, the major portion of our electric utility distribution lines and natural gas utility distribution mains and services are located on or under streets and highways, on land owned by others, and are generally subject to granted easements, consents, or permits.

*2025 Form 10-K* 27 *Wisconsin Public Service Corporation*

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**Electric Facilities** 

The following table summarizes information on our electric generation facilities, including wholly owned and jointly owned facilities, as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Location** | **Fuel** | **Number of Generating Units** | **Capacity In MW** <sup>(1)</sup> | **Capacity In MW** <sup>(1)</sup> |
| **Natural gas-fired plants** | | | | | |
| Fox Energy Center | Wrightstown, WI | Natural Gas | 3 | 579 |  |
| De Pere Energy Center | De Pere, WI | Natural Gas/Oil | 1 | 170 |  |
| West Marinette Power Plant | Marinette, WI | Natural Gas | 3 | 149 |  |
| Whitewater | Whitewater, WI | Natural Gas/Oil | 1 | 117 | <sup>(2)</sup> |
| Pulliam | Green Bay, WI | Natural Gas | 1 | 82 |  |
| Weston | Rothschild, WI | Natural Gas | 7 | 65 | <sup>(2)</sup> |
| **Total natural gas-fired plants** |  |  | 16 | 1162 |  |
| **Coal-fired plants** |  |  |  |  |  |
| Weston | Rothschild, WI | Coal | 2 | 699 | <sup>(2) (5)</sup> |
| Columbia | Portage, WI | Coal | 2 | 306 | <sup>(2)</sup> |
| **Total coal-fired plants** |  |  | 4 | 1005 |  |
| **Wind facilities** |  |  |  |  |  |
| Crane Creek Wind Park | Howard County, IA | Wind | 66 | 99 |  |
| Red Barn | Grant County, WI | Wind | 28 | 82 | <sup>(2)</sup> |
| Forward Wind | Fond du Lac County, WI | Wind | 86 | 62 | <sup>(2)</sup> |
| **Total wind facilities** |  |  | 180 | 243 |  |
| **Solar facilities** |  |  |  |  |  |
| Two Creeks | Manitowoc County WI | Solar | 48 | 100 | <sup>(2)</sup> |
| Badger Hollow I | Iowa County, WI | Solar | 41 | 100 | <sup>(2)</sup> |
| Darien | Rock and Walworth counties, WI | Solar | 65 | 37 | <sup>(2)</sup> |
| Paris | Kenosha County, WI | Solar | 53 | 30 | <sup>(2)</sup> |
| DER facility | Oneida County, WI | Solar | 3 | 8 | <sup>(6)</sup> |
| **Total solar facilities** |  |  | 210 | 275 |  |
| **Other renewable facilities** |  |  |  |  |  |
| Hydro plants (17 in number) | WI | Hydro | 50 | 45 | <sup>(3) (4)</sup> |
| **Total other renewable facilities** |  |  | 50 | 45 |  |
| **Total system** |  |  | 460 | 2730 |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Capacity for our electric generation facilities, other than wind and solar generating facilities, is based on rated capacity, which is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. Values are primarily based on the net dependable expected capacity ratings for summer 2026 established by tests and may change slightly from year to year. The summer period is the most relevant for capacity planning purposes. This is a result of continually reaching demand peaks in the summer months, primarily due to air conditioning demand. Capacity for wind generating facilities is based on nameplate capacity, which is the amount of energy a turbine should produce at optimal wind speeds. Capacity for solar generating facilities is based on nameplate capacity, which is the maximum output that a generator should produce at continuous full power.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>We jointly own these facilities with various other affiliated and unaffiliated entities. The capacity indicated for each of these units is equal to our portion of total plant capacity based on our percent of ownership. See Note 8, Jointly-Owned Utility Facilities, for more information.

<sup>(3) &nbsp;&nbsp;&nbsp;&nbsp;</sup>All of our hydroelectric facilities follow FERC guidelines and/or regulations.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>WRPC owns and operates the Castle Rock and Petenwell units. We hold a 50.0% ownership interest in WRPC and are entitled to 50.0% of the total capacity at Castle Rock and Petenwell. Our share of capacity for Castle Rock and Petenwell is 7.0 MWs and 10.3 MWs, respectively.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>WEC Energy Group expects to retire approximately 900 MWs of additional coal-fired generation, which includes the planned retirement of Weston Unit 3.

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>DER facilities are distribution system interconnected solar projects that are typically 5-10 MWs each.

*2025 Form 10-K* 28 *Wisconsin Public Service Corporation*

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As of December 31, 2025, we operated approximately 13,600 miles of overhead distribution lines and approximately 9,500 miles of underground distribution cable, as well as 118 electric distribution substations and approximately 312,200 line transformers.

**Battery Energy Storage Systems**

We also own 16.5 MWs of BESS at Paris located in Kenosha County, WI which was completed in June 2025.

**Natural Gas Facilities** 

At December 31, 2025, our natural gas properties were located in northeastern Wisconsin and consisted of the following:

• Approximately 8,600 miles of natural gas distribution mains,

• Approximately 250 miles of natural gas transmission mains,

• Approximately 319,800 natural gas lateral services, and

• Approximately 100 natural gas distribution and transmission gate stations.

Our natural gas distribution and gas storage systems included distribution and transmission mains connected to the pipeline transmission systems of ANR Pipeline Company, Great Lakes Transmission Company, Guardian Pipeline L.L.C., and Vector Pipeline.

We also own office buildings, natural gas regulating and metering stations, and major service centers, including garage and warehouse facilities, in certain communities we serve. Where distribution lines and services and natural gas distribution mains and services occupy private property, we have in some, but not all instances, obtained consents, permits, or easements for these installations from the apparent owners or those in possession of those properties, generally without an examination of ownership records or title.

**ITEM 3. LEGAL PROCEEDINGS**

In addition to those legal proceedings discussed in Note 21, Commitments and Contingencies, and Note 23, Regulatory Environment, we are currently, and from time to time, subject to claims and suits arising in the ordinary course of business. Although the results of these additional legal proceedings cannot be predicted with certainty, management believes, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material impact on our financial statements.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

*2025 Form 10-K* 29 *Wisconsin Public Service Corporation*

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**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

There is no established public trading market for our common stock, as Integrys, a wholly owned subsidiary of WEC Energy Group, owns all of our outstanding common stock. See Note 11, Common Equity, for more information.

**ITEM 6. RESERVED**

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**CORPORATE DEVELOPMENTS**

**Introduction**

We are an electric and natural gas utility and an indirect wholly owned subsidiary of WEC Energy Group. We derive revenues primarily from the distribution and sale of electricity and natural gas to retail customers in Wisconsin. We also provide wholesale electric service to numerous utilities and cooperatives for resale. We conduct our business primarily through our utility reportable segment. See Note 20, Segment Information, for more information on our reportable business segments.

**Corporate Strategy**

We are working to build and sustain long-term value for our customers and WEC Energy Group's shareholders by supporting economic growth in our region while focusing on the fundamentals of our business: reliability, operating efficiency, financial discipline, environmental stewardship, exceptional customer care, and safety. WEC Energy Group's capital plan provides a roadmap to achieve this goal. It is a plan premised upon maintaining superior reliability, delivering savings for customers, and growing WEC Energy Group's and our investment in the future of energy.

Throughout its strategic planning process, WEC Energy Group takes into account important developments, risks and opportunities, including new technologies, customer preferences and affordability, energy resiliency efforts, and sustainability.

***Supporting Economic Growth Within Our Communities***

Our service territory is starting to see economic growth, and WEC Energy Group anticipates continued electric demand growth in the years ahead. To meet the anticipated electric demand growth, greater capacity will be required to provide affordable, reliable, and clean energy for our communities. WEC Energy Group's capital plan addresses that demand with a range of planned investments in natural gas-fired generation, renewables, and battery storage. WEC Energy Group plans on investing approximately $5.4 billion from 2026 to 2030 in efficient natural gas-fired generation and approximately $12.6 billion from 2026 to 2030 in regulated renewable energy in Wisconsin. WEC Energy Group's plan is to build and own zero-carbon-emitting renewable generation facilities that are anticipated to include the following investments to be made by either us or WE based on specific customer needs:

• 3,850 MWs of utility-scale solar;

• 2,130 MWs of battery storage; and

• 555 MWs of wind.

For more details on the projects discussed above, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

WEC Energy Group's capital plan also reflects the planned retirement of older, fossil-fueled generation, which it expects to replace with the natural gas-fired generation and zero-carbon-emitting renewables discussed above. These retirements are intended to address compliance with EPA regulations established under the CAA, as well as contribute to meeting WEC Energy Group's and our goal to reduce CO2 emissions from our electric generation. Over the long-term, the goal is to achieve net carbon neutral electric generation by the end of 2050. WEC Energy Group expects to achieve this goal by continuing to make operating refinements, retiring

*2025 Form 10-K* 30 *Wisconsin Public Service Corporation*

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less efficient generating units, and executing its capital plan. WEC Energy Group expects to use coal only as a backup fuel by the end of 2030 and to be in a position to eliminate coal as an energy source by the end of 2032.

As part of our path toward this goal, we have started implementing co-firing with natural gas at Weston Unit 4. Additionally, WEC Energy Group has retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the 2018 retirements of the Pulliam power plant and the jointly-owned Edgewater Unit 4 generating unit. WEC Energy Group expects to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirement of Weston Unit 3. In conjunction with WEC Energy Group's new capital plan, we and the other co-owners of Columbia Units 1 and 2 currently plan to continue coal operations at these units through at least 2029, and continue to evaluate the conversion of both units to natural gas. See Note 7, Property, Plant, and Equipment, for more information.

When taken together, the retirements and new investments in natural gas generation and renewables should better balance WEC Energy Group's supply with its demand, while helping to address compliance and maintaining reliable, affordable energy for our customers.

WEC Energy Group also continues to focus on methane emission reductions by improving and upgrading its natural gas distribution systems and using RNG throughout its natural gas utility systems. In 2023, we began transporting the output of local dairy farms onto our natural gas distribution system. The RNG supplied is replacing higher-emission methane from natural gas that would have entered our pipes.

***Reliability***

We have made significant reliability-related investments in recent years, and in accordance with the WEC Energy Group capital plan, expect to continue strengthening and modernizing our generation fleet, as well as our electric and natural gas distribution networks to further improve reliability.

Below are a few examples of projects that are proposed, currently underway, or recently completed.

• The construction of additional LNG facilities in Wisconsin has been proposed as part of WEC Energy Group's capital plan, which includes us. The facilities would provide approximately four Bcf of natural gas supply (of which our portion is expected to be approximately two Bcf) and are expected to reduce the likelihood of constraints on our natural gas distribution system during the highest demand days of winter.

• The WEC Energy Group capital plan includes $2.9 billion of investments in BESSs from 2026 to 2030, which are intended to capture excess power and release it during peak demand or when power is limited due to weather or other unexpected disruptions.

• We continue to upgrade our electric and natural gas distribution systems to enhance reliability and storm hardening.

WEC Energy Group expects to spend approximately $7.1 billion and $4.7 billion on reliability related to natural gas and electric distribution projects, respectively, from 2026 to 2030, with continued investment over the next decade. For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

***Operating Efficiency***

We continually look for ways to optimize the operating efficiency of our company and will continue to do so under the WEC Energy Group capital plan. For example, we are making progress on our advanced metering infrastructure program, replacing aging meter-reading equipment on both our network and customer property. An integrated system of smart meters, communication networks, and data management programs enables two-way communication between us and our customers. This program reduces the manual effort for customer connections and enhances outage management capabilities.

Through WEC Energy Group's multiyear Energy Delivery Program, we are planning to implement capabilities and standard processes for customer service, natural gas and electric operations, work management, and field operations. This includes improvements to outage management, geographic information systems, and work and asset management systems, as well as the implementation of new capabilities through advanced distribution management systems.

*2025 Form 10-K* 31 *Wisconsin Public Service Corporation*

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WEC Energy Group continues to focus on integrating the resources of all its businesses and improving its business processes to find the best and most efficient processes possible, including evaluating the use of AI tools. WEC Energy Group expects these efforts to continue to drive operational efficiency and to put it in a position to effectively support plans for future growth.

***Financial Discipline***

A strong adherence to financial discipline is essential to meeting our earnings projections and maintaining a strong balance sheet, stable cash flows, and quality credit ratings. We work to earn allowed rates of return through a focus on cost control and strategic investment.

We follow an asset management strategy that focuses on investing in and acquiring assets consistent with our strategic plans, as well as disposing of assets, including property, plants, and equipment, that are no longer strategic to operations, are not performing as intended, or have an unacceptable risk profile. See Note 2, Acquisitions, for more information.

***Exceptional Customer Care***

Our approach is driven by an intense focus on delivering exceptional customer care every day. We strive to provide the best value for our customers by demonstrating personal responsibility for results, leveraging our capabilities and expertise, and using creative solutions to meet or exceed our customers' expectations.

A multiyear effort is driving a standardized, seamless approach to digital customer service across all of the WEC Energy Group companies. It has moved all utilities, including us, to a common platform for all customer-facing self-service options. Using common systems and processes reduces costs, provides greater flexibility and enhances the consistent delivery of exceptional service to customers.

***Safety***

Safety is one of our core values and a critical component of our culture. We are committed to keeping our employees and the public safe through a comprehensive corporate safety program that focuses on employee engagement and elimination of at-risk behaviors. To further protect public safety, we monitor the integrity of our distribution systems, have emergency response and business continuity plans in place, and provide key safety information to customers, contractors, and first responders.

Under our "Target Zero" mission, we have an ultimate goal of zero incidents, accidents, and injuries. Management and union leadership work together to reinforce the Target Zero culture. We set annual goals for safety results as well as measurable leading indicators, in order to raise awareness of at-risk behaviors and situations and guide injury-prevention activities. All employees are encouraged to report unsafe conditions or incidents that could have led to an injury. Injuries and tasks with high levels of risk are assessed, and findings and best practices are shared across the WEC Energy Group companies.

Our corporate safety program provides a forum for addressing employee concerns, training employees and contractors on current safety standards, and recognizing those who demonstrate a safety focus.

**RESULTS OF OPERATIONS**

The following discussion and analysis of our Results of Operations includes comparisons of our results for the year ended December 31, 2025 with the year ended December 31, 2024. For a similar discussion that compares our results for the year ended December 31, 2024 with the year ended December 31, 2023, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations in Part II of our 2024 Annual Report on Form 10-K, which was filed with the SEC on February 21, 2025.

**Earnings**

Our earnings for the year ended December 31, 2025 were $293.6 million, compared with $252.9 million for the year ended December 31, 2024. See below for additional information on the $40.7 million increase in earnings.

*2025 Form 10-K* 32 *Wisconsin Public Service Corporation*

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***Non-GAAP Financial Measures***

The discussion below addresses the contribution of our utility segment to net income. The discussion includes financial information prepared in accordance with GAAP, as well as utility margin, which is not a measure of financial performance under GAAP. Utility margin (operating revenues less fuel and purchased power costs and cost of natural gas sold) is a non-GAAP financial measure because it excludes certain operation and maintenance expenses applicable to revenues, as well as depreciation and amortization and property and revenue taxes.

We believe that utility margin provides a useful basis for evaluating 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.

**Utility Segment Contribution to Net Income**

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **B (W)** |
| **Operating revenues** | $**1836.9** | $1560.4 | $276.5 |
| **Operating expenses** |  |  |  |
| Cost of sales <sup>(1)</sup> | **609.3** | 485.3 | (124.0) |
| Other operation and maintenance | **480.5** | 440.3 | (40.2) |
| Depreciation and amortization | **268.0** | 238.5 | (29.5) |
| Property and revenue taxes | **44.3** | 46.9 | 2.6 |
| Operating income | **434.8** | 349.4 | 85.4 |
| Other income, net | **17.9** | 48.2 | (30.3) |
| Interest expense | **94.3** | 95.0 | 0.7 |
| Income before income taxes | **358.4** | 302.6 | 55.8 |
| Income tax expense | **66.3** | 51.2 | (15.1) |
| **Net income** | $**292.1** | $251.4 | $40.7 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>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:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **B (W)** |
| Operation and maintenance not included in line items below | $**239.2** | $210.6 | $(28.6) |
| Transmission <sup>(1)</sup> | **181.9** | 162.4 | (19.5) |
| Regulatory amortizations and other pass through expenses <sup>(2)</sup> | **54.6** | 69.8 | 15.2 |
| Earnings sharing mechanism <sup>(3)</sup> | **4.8** | (2.5) | (7.3) |
| **Total other operation and maintenance** | $**480.5** | $440.3 | $(40.2) |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents transmission expense that we are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses. As a result, we defer as a regulatory asset or liability, the difference between actual transmission costs and those included in rates until recovery or refund is authorized in a future rate proceeding. During 2025 and 2024, $190.2 million and $175.4 million, respectively, of costs were billed to us by transmission providers.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant impact on net income.

*2025 Form 10-K* 33 *Wisconsin Public Service Corporation*

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<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents operation and maintenance associated with the earnings sharing mechanism we have in place. See Note 23, Regulatory Environment, for more information.

The following tables provide information on delivered sales volumes by customer class and weather statistics:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>**Electric Sales Volumes *(MWh - in thousands)*** | **2025** | **2024** | **B (W)** |
| **Customer class** |  |  |  |
| Residential | **3071.7** | 2940.4 | 131.3 |
| Small commercial and industrial | **4067.2** | 4028.2 | 39.0 |
| Large commercial and industrial | **3919.2** | 3810.9 | 108.3 |
| Other | **21.1** | 21.7 | (0.6) |
| Total retail | **11079.2** | 10801.2 | 278.0 |
| Wholesale | **1079.7** | 1073.7 | 6.0 |
| Resale | **921.1** | 754.5 | 166.6 |
| **Total sales in MWh** | **13080.0** | 12629.4 | 450.6 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>**Natural Gas Sales Volumes *(Therms - in millions)*** | **2025** | **2024** | **B (W)** |
| **Customer class** |  |  |  |
| Residential | **261.1** | 218.8 | 42.3 |
| Commercial and industrial | **204.9** | 165.7 | 39.2 |
| Total retail | **466.0** | 384.5 | 81.5 |
| Transportation | **496.9** | 474.8 | 22.1 |
| **Total sales in therms** | **962.9** | 859.3 | 103.6 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>**Weather *(Degree Days)*** <sup>(1)</sup> | **2025** | **2024** | **B (W)** |
| Heating (7,210 Normal) | **7217** | 6015 | 20.0% |
| Cooling (580 Normal) | **653** | 608 | 7.4% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Normal degree days are based on a 20-year moving average of monthly temperature readings from National Oceanic and Atmospheric Administration weather stations within our service territory.

*2025 Form 10-K* 34 *Wisconsin Public Service Corporation*

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***Gross Margin GAAP and Utility Margin Non-GAAP***

The following table summarizes our utility segment gross margin (GAAP) and reconciles gross margin (GAAP) to utility margin (non-GAAP). See "Non-GAAP Financial Measures" above for additional information regarding gross margin (GAAP) and utility margin (non-GAAP).

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **B (W)** |
| Electric revenues | $**1435.5** | $1244.4 | $191.1 |
| Natural gas revenues | **401.4** | 316.0 | 85.4 |
| **Operating revenues** | **1836.9** | 1560.4 | 276.5 |
| **Operating expenses** |  |  |  |
| Fuel and purchased power | **(392.0)** | (321.5) | (70.5) |
| Cost of natural gas sold | **(217.3)** | (163.8) | (53.5) |
| Other operation and maintenance <sup>(1)</sup> | **(346.2)** | (296.2) | (50.0) |
| Depreciation and amortization | **(268.0)** | (238.5) | (29.5) |
| Property and revenue taxes | **(44.3)** | (46.9) | 2.6 |
| **Gross margin (GAAP)** | **569.1** | 493.5 | 75.6 |
| Other operation and maintenance <sup>(1)</sup> | **346.2** | 296.2 | 50.0 |
| Depreciation and amortization | **268.0** | 238.5 | 29.5 |
| Property and revenue taxes | **44.3** | 46.9 | (2.6) |
| **Utility margin (non-GAAP)** | $**1227.6** | $1075.1 | $152.5 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>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, transmission, distribution, and customer service expenses. These expenses are included in the above table to calculate gross margin as defined under GAAP.

Gross margin (GAAP) at the utility segment increased $75.6 million during 2025, compared with 2024, and utility margin (non-GAAP) increased $152.5 million during 2025, compared with 2024. Both measures were driven by:

• A $115.2 million increase in margins driven by the impact of our rate order approved by the PSCW, effective January 1, 2025. See Note 23, Regulatory Environment, for more information.

• A $33.7 million increase in margins related to higher sales volumes, driven by the impact of favorable weather during 2025, compared with 2024. As measured by heating degree days, 2025 was 20.0% colder than 2024. As measured by cooling degree days, 2025 was 7.4% warmer than 2024.

• A $4.6 million increase in margins driven by increased capacity rates related to wholesale volumes.

These increases in margins were partially offset by a $3.3 million year-over-year negative 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.

Additionally, the smaller increase in gross margin (GAAP) 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 $29.5 million increase in depreciation and amortization expense;

• A $20.1 million increase in other operating and maintenance related to our power plants;

• A $19.5 million increase in transmission expense; and

• An $11.1 million increase in electric and natural gas distribution expenses.

*2025 Form 10-K* 35 *Wisconsin Public Service Corporation*

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

Other operating expenses at the utility segment increased $67.1 million during 2025, compared with 2024. The significant factors impacting the increase in other operating expenses were:

• A $29.5 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on WEC Energy Group's capital plan.

• A $20.1 million increase in other operating and maintenance related to our power plants, driven by the resolution of certain items as a result of our December 2024 rate order approved by the PSCW, outages at the Weston coal-fired generation facility, and inspections at the Fox Energy Center natural gas-fired facility, as well as new renewable generation facilities placed in service during 2025.

• A $19.5 million increase in transmission expense as approved by the PSCW in our Wisconsin rate order, effective January 1, 2025. See the notes under the other operation and maintenance table above for more information.

• An $11.1 million increase in electric and natural gas distribution expenses, driven by higher costs to maintain the distribution systems and storm restoration.

• A $7.3 million increase in expense related to the earnings sharing mechanisms in place, as discussed in the notes under the other operation and maintenance table above. See Note 23, Regulatory Environment, for more information.

These increases in other operating expenses were partially offset by a $15.2 million decrease in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

***Other Income, Net***

Other income, net decreased $30.3 million during 2025, compared with 2024, driven by a $31.5 million negative impact from the non-service components of our net periodic pension and OPEB costs. In accordance with our December 2024 PSCW rate order, in 2025 we began amortizing our pension and OPEB costs that were previously deferred under escrow accounting. During 2025, we amortized $22.5 million of the previously deferred non-service costs as we are now collecting these costs in rates. See Note 19, Employee Benefits, for more information on our benefit costs.

***Interest Expense***

Interest expense decreased $0.7 million during 2025, compared with 2024, driven by both lower average short-term debt balances and interest rates. This decrease was partially offset by the impact of our long-term debt issuance in December 2024.

***Income Tax Expense***

Income tax expense increased $15.1 million during 2025, compared with 2024, driven by higher pre-tax income.

**Other Segment Contribution to Net Income**

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **B (W)** |
| **Net income** | $**1.5** | $1.5 | $— |

---

*2025 Form 10-K* 36 *Wisconsin Public Service Corporation*

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**LIQUIDITY AND CAPITAL RESOURCES**

**Overview**

We expect to maintain adequate liquidity to meet our cash requirements for operation of our business and implementation of our corporate strategy through internal generation of cash from operations and access to the capital markets.

The following discussion and analysis of our Liquidity and Capital Resources includes comparisons of our cash flows for the year ended December 31, 2025 with the year ended December 31, 2024. For a similar discussion that compares our cash flows for the year ended December 31, 2024 with the year ended December 31, 2023, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources in Part II of our 2024 Annual Report on Form 10-K, which was filed with the SEC on February 21, 2025.

**Cash Flows**

The following table summarizes our cash flows during the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **Change in 2025 Over 2024** |
| **Cash provided by (used in):** |  |  |  |
| Operating activities | $**514.4** | $532.9 | $(18.5) |
| Investing activities | **(681.2)** | (486.9) | (194.3) |
| Financing activities | **166.0** | (45.9) | 211.9 |

---

***Operating Activities***

Net cash provided by operating activities decreased $18.5 million during 2025, compared with 2024, driven by:

• A $25.4 million decrease in cash from higher payments for fuel and purchased power at our generation plants during 2025, compared with 2024, primarily driven by the higher per-unit cost of natural gas.

• A $9.8 million decrease in cash from higher cash paid for income taxes driven by higher taxable income during 2025, compared with 2024.

These decreases in net cash provided by operating activities were partially offset by:

• An $11.0 million increase in cash related to lower payments for other operation and maintenance expenses, driven by the timing of payments for accounts payable during 2025, compared with 2024.

• An $8.0 million increase in cash from lower payments for environmental remediation related to work completed on former manufactured gas plant sites during 2025, compared with 2024.

***Investing Activities***

Net cash used in investing activities increased $194.3 million during 2025, compared with 2024, driven by a $210.6 million increase in cash paid for capital expenditures, which is discussed in more detail below.

This increase in net cash used in investing activities was partially offset by:

• Proceeds of $9.8 million received from the cash surrender of life insurance during 2025. There were no proceeds received from the cash surrender of life insurance during 2024.

• A $6.2 million increase in cash received from ATC for the reimbursement of transmission infrastructure upgrades during 2025, compared with 2024.

*2025 Form 10-K* 37 *Wisconsin Public Service Corporation*

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***Capital Expenditures***

Capital expenditures for the years ended December 31 were as follows:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **Change in 2025 Over 2024** |
| Capital expenditures | $**704.4** | $493.8 | $210.6 |

---

The increase in cash paid for capital expenditures during 2025, compared with 2024, was driven by higher payments for renewable energy projects and our electric distribution system. These increases in capital expenditures were partially offset by decreased payments for construction of our service center completed in October 2024.

See Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects below for more information.

***Financing Activities***

Net cash related to financing activities increased $211.9 million during 2025, compared with 2024, driven by:

• A $415.0 million increase in equity contributions received from our parent during 2025, compared with 2024, to balance our capital structure.

• A $345.8 million increase in cash due to $97.5 million of net borrowings of commercial paper during 2025, compared with $248.3 million of net repayments of commercial paper during 2024.

• A $50.0 million increase in cash due to lower dividends paid to our parent during 2025, compared with 2024, to balance our capital structure.

These increases in cash were partially offset by:

• A $300.0 million decrease in cash due to the retirement of long-term debt during 2025. We did not retire any long-term debt during 2024.

• A $299.8 million decrease in cash due the issuance of long-term debt during 2024. We did not issue any long-term debt during 2025.

**Significant Financing Activities**

For more information on our financing activities, see Note 11, Common Equity, Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt.

**Cash Requirements**

We require funds to support and grow our business. Our significant cash requirements primarily consist of capital and investment expenditures, payments to retire and pay interest on long-term debt, the payment of common stock dividends to our parent, and the funding of our ongoing operations. Our significant cash requirements are discussed in further detail below.

*2025 Form 10-K* 38 *Wisconsin Public Service Corporation*

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***Significant Capital Projects***

We have several capital projects and acquisitions that will require significant capital expenditures over the next three years and beyond. All projected capital requirements are subject to periodic review and may vary significantly from estimates, depending on a number of factors. These factors include environmental and regulatory requirements, changes in tax laws and regulations, acquisition and development opportunities, market volatility, economic trends, supply chain disruptions, inflation, and interest rates. Our estimated capital expenditures and acquisitions for the next three years are reflected below. These amounts include anticipated expenditures for environmental compliance and certain remediation issues. For a discussion of certain environmental matters affecting us, see Note 21, Commitments and Contingencies.

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| | |
|:---|:---|
| ***(in millions)*** | |
| 2026 | $706.3 |
| 2027 | 959.0 |
| 2028 | 999.4 |
| **Total** | $2664.7 |

---

WEC Energy Group is committed to investing in solar, wind, battery storage, and natural gas-fired generation. In addition, we continue to upgrade our electric and natural gas distribution systems to enhance reliability. Below are the anticipated amounts for the next three years for generation, LNG, and distribution projects that are proposed or currently underway.

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2026** | **2027** | **2028** |
| Generation: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Solar | $116.6 | $235.3 | $170.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wind | 17.9 | 34.6 | 72.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Battery | 42.9 | 42.3 | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thermal | 7.2 | 125.7 | 112.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 164.6 | 137.2 | 147.0 |
| LNG |  |  | 50.0 |
| Distribution: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric distribution | 248.3 | 268.4 | 305.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas distribution | 108.8 | 115.5 | 139.1 |
| **Total** | $706.3 | $959.0 | $999.4 |

---

The DOC set duties on solar panels and cells imported from four southeast Asian countries and is investigating additional AD/CVD allegations relating to Chinese-owned manufacturers in Laos and Indonesia, as well as India-headquartered companies. See Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – United States Department of Commerce Complaints and Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Uyghur Forced Labor Prevention Act for information on the duties set by the DOC and its current investigation, as well as CBP actions, respectively. The expected in-service dates and costs identified above already reflect some of these impacts.

See Factors Affecting Results, Liquidity, and Capital Resources — Regulatory, Legislative, and Legal Matters — Renewable Energy Legislation for potential impacts to our capital projects as a result of the OBBBA.

***Long-Term Debt***

A significant amount of cash is required to retire and pay interest on our long-term debt obligations. See Note 14, Long-Term Debt, for more information on our outstanding long-term debt, including a schedule of our long-term debt maturities over the next five years. The following table summarizes our required interest payments on long-term debt as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Interest Payments Due by Period** | **Interest Payments Due by Period** | **Interest Payments Due by Period** | **Interest Payments Due by Period** | **Interest Payments Due by Period** |
|<br>***(in millions)*** | **Total** | **Less Than 1 Year** | **1-3 Years** | **3-5 Years** | **More Than 5 Years** |
| Interest payments due on long-term debt | $1293.8 | $78.8 | $157.2 | $136.6 | $921.2 |

---

*2025 Form 10-K* 39 *Wisconsin Public Service Corporation*

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***Common Stock Dividends***

During the years ended December 31, 2025, 2024, and 2023, we paid common stock dividends of $120.0 million, $170.0 million, and $255.0 million, respectively, to the sole holder of our common stock, Integrys. Any payment of future dividends is subject to approval by our Board of Directors and is dependent upon future earnings, capital requirements, and financial and other business conditions. In addition, various financing arrangements and regulatory requirements impose certain restrictions on our ability to transfer funds to Integrys in the form of cash dividends, loans, or advances. We do not believe that these restrictions will materially affect our operations or limit any dividend payments in the foreseeable future. See Note 11, Common Equity, for more information related to these restrictions and our other common stock matters.

***Other Significant Cash Requirements***

Our utility operations have purchase obligations under various contracts for the procurement of fuel, power, and gas supply, as well as the related storage and transportation. These costs are a significant component of funding our ongoing operations. See Note 21, Commitments and Contingencies, for more information, including our minimum future commitments related to these purchase obligations.

In addition to our energy-related purchase obligations, we have commitments for other costs incurred in the normal course of business, including costs related to information technology services, meter reading services, maintenance and other service agreements for certain generating facilities, and various engineering agreements. Our estimated future cash requirements related to these purchase obligations, excluding energy-related obligations, are reflected below.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
|<br>***(in millions)*** | **Total** | **Less Than 1 Year** | **1-3 Years** | **3-5 Years** | **More Than 5 Years** |
| Purchase orders | $37.2 | $26.1 | $9.1 | $2.0 | $— |

---

We have various finance and operating lease obligations. Our finance lease obligations primarily relate to land leases for our renewable generation projects. See Note 15, Leases, for more information, including an analysis of our minimum lease payments due in future years.

We make contributions to our pension and OPEB plans based upon various factors affecting us, including our liquidity position and tax law changes. See Note 19, Employee Benefits, for our expected contributions in 2026 and our expected pension and OPEB payments for the next 10 years. We expect the majority of these future pension and OPEB payments to be paid from our outside trusts. See Sources of Cash–Investments in Outside Trusts below for more information.

In addition to the above, our balance sheet at December 31, 2025 included various other liabilities that, due to the nature of the liabilities, the amount and timing of future payments cannot be determined with certainty. These liabilities include AROs, liabilities for the remediation of manufactured gas plant sites, and liabilities related to the accounting treatment for uncertainty in income taxes. For additional information on these liabilities, see Note 9, Asset Retirement Obligations, Note 16, Income Taxes, and Note 21, Commitments and Contingencies, respectively.

***Off-Balance Sheet Arrangements***

We are a party to various financial instruments with off-balance sheet risk as a part of our normal course of business, including financial guarantees and letters of credit that support construction projects, commodity contracts, and other payment obligations. We believe that these agreements do not have, and are not reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. See Note 1(q), Guarantees, and Note 13, Short-Term Debt and Lines of Credit, for more information.

**Sources of Cash**

***Liquidity***

We anticipate meeting our short-term and long-term cash requirements to operate our business and implement our corporate strategy through internal generation of cash from operations, equity contributions from our parent, and access to the capital

*2025 Form 10-K* 40 *Wisconsin Public Service Corporation*

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markets, which allows us to obtain external short-term borrowings, including commercial paper, and intermediate or long-term debt securities. Cash generated from operations is primarily driven by sales of electricity and natural gas to our utility customers, reduced by costs of operations. Our access to the capital markets is critical to our overall strategic plan and allows us to supplement cash flows from operations with external borrowings to manage seasonal variations, working capital needs, commodity price fluctuations, unplanned expenses, and unanticipated events.

We maintain a bank back-up credit facility, which provides liquidity support for our obligations with respect to commercial paper and for general corporate purposes. We review our bank back-up credit facility needs on an ongoing basis and expect to be able to maintain adequate credit facilities to support our operations.

The amount, type, and timing of any financings in 2026, as well as in subsequent years, will be contingent on investment opportunities and our cash requirements and will depend upon prevailing market conditions, regulatory approvals, and other factors. We plan to maintain a capital structure consistent with that approved by the PSCW. For more information on our approved capital structure, see Item 1. Business – D. Regulation.

The issuance of our securities is subject to the approval of the PSCW. Additionally, with respect to the public offering of securities, we file registration statements with the SEC under the Securities Act of 1933, as amended (1933 Act). The amounts of securities authorized by the PSCW, as well as the securities registered under the 1933 Act, are closely monitored and appropriate filings are made to ensure flexibility in the capital markets.

Although not the case as of December 31, 2025, our current liabilities sometimes exceeded our current assets. If this occurs, we do not expect this to have an impact on our liquidity as we currently believe that our cash and cash equivalents, our available capacity under our existing revolving credit facility, cash generated from ongoing operations, and access to the capital markets are adequate to meet our short-term and long-term cash requirements.

See Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt, for more information about our commercial paper, credit facility, and debt securities.

***Investments in Outside Trusts***

We maintain investments in outside trusts to fund the obligation to provide pension and certain OPEB benefits to current and future retirees. As of December 31, 2025, these trusts had investments of approximately $1.0 billion, consisting of fixed income and equity securities, that are subject to the volatility of the stock market and interest rates. The performance of existing plan assets, long-term discount rates, changes in assumptions, and other factors could affect our future contributions to the plans, our financial position if our accumulated benefit obligation exceeds the fair value of the plan assets, and future results of operations related to changes in pension and OPEB expense and the assumed rate of return. For additional information, see Note 19, Employee Benefits.

***Debt Covenants***

Our credit facility contains financial covenants that we must satisfy, including a debt to capitalization ratio. At December 31, 2025, we were in compliance with all such covenants. We expect to be in compliance with all such debt covenants for the foreseeable future. See Note 13, Short-Term Debt and Lines of Credit, and Note 14, Long-Term Debt, for more information.

***Credit Rating Risk***

Cash collateral postings and prepayments made with external parties, including postings related to exchange-traded contracts, and cash collateral posted by external parties were immaterial as of December 31, 2025. From time to time, we may enter into commodity contracts that could require collateral or a termination payment in the event of a credit rating change to below BBB- at S&P Global Ratings, a division of S&P Global Inc., and/or Baa3 at Moody's Investors Service, Inc. We also have other commodity contracts that, in the event of a credit rating downgrade, could result in a reduction of our unsecured credit granted by counterparties.

In addition, access to capital markets at a reasonable cost is determined in large part by credit quality. Any credit ratings downgrade could impact our ability to access capital markets.

*2025 Form 10-K* 41 *Wisconsin Public Service Corporation*

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In November 2025, Moody's changed our rating outlook from stable to negative. The negative outlook reflects the change in our financial ratios during 2025 along with the growing leverage associated with our investments. Moody's also affirmed our ratings, including our A2 Issuer and senior unsecured ratings and Prime-1 commercial paper rating.

Subject to other factors affecting the credit markets as a whole, we believe our current ratings should provide a significant degree of flexibility in obtaining funds on competitive terms. However, these security ratings reflect the views of the rating agency only. An explanation of the significance of these ratings may be obtained from the rating agency. Such ratings are not a recommendation to buy, sell, or hold securities. Any rating can be revised upward or downward or withdrawn at any time by a rating agency.

**FACTORS AFFECTING RESULTS, LIQUIDITY, AND CAPITAL RESOURCES**

**Competitive Markets**

***Electric Utility Industry***

The FERC supports large RTOs, which directly impacts the structure of the wholesale electric market. Due to the FERC's support of RTOs, MISO uses the MISO Energy Markets to carry out its operations, including the use of LMPs to value electric transmission congestion and losses. Increased competition in the retail and wholesale markets, which may result from restructuring efforts, could have a significant and adverse financial impact on us.

Electric utility revenues in Wisconsin are regulated by the PSCW. The PSCW continues to maintain the position that the question of whether to implement electric retail competition in Wisconsin should ultimately be decided by the Wisconsin legislature. No such legislation has been introduced in Wisconsin to date, and it is uncertain when, if at all, retail choice might be implemented in Wisconsin.

***Natural Gas Utility Industry***

We offer both natural gas transportation service and interruptible natural gas sales to enable customers to better manage their energy costs. Customers continue to switch between firm system supply, interruptible system supply, and transportation service each year as the economics and service options change.

Due to the PSCW's previous proceedings on natural gas industry regulation in a competitive environment, the PSCW currently provides all Wisconsin customer classes with competitive markets the option to choose a third-party natural gas supplier. All of our Wisconsin non-residential customer classes have competitive market choices and, therefore, can purchase natural gas directly from either a third-party supplier or us. Since third-party suppliers can be used in Wisconsin, the PSCW has also adopted standards for transactions between a utility and its natural gas marketing affiliates.

We offer natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Since these transportation customers continue to use our distribution systems to transport natural gas to their facilities, we earn distribution revenues from them. As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is substantially offset by an equal reduction to natural gas costs.

We are currently unable to predict the impact, if any, of potential future industry restructuring on our results of operations or financial position.

**Regulatory, Legislative, and Legal Matters**

***Regulatory Recovery***

We account for our regulated operations in accordance with accounting guidance under the Regulated Operations Topic of the FASB ASC. Our rates are determined by the PSCW and the FERC. See Item 1. Business – D. Regulation for more information on these commissions. See Note 23, Regulatory Environment, for additional information regarding recent rate proceedings and orders.

*2025 Form 10-K* 42 *Wisconsin Public Service Corporation*

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Regulated entities are allowed to defer certain costs that would otherwise be charged to expense if the regulated entity believes the recovery of those costs is probable. We record regulatory assets pursuant to generic and/or specific orders issued by our regulators. Recovery of the deferred costs in future rates is subject to the review and approval by our regulators. We assume the risks and benefits of ultimate recovery of these items in future rates. If the recovery of the deferred costs is not approved by our regulators, the costs would be charged to income in the current period. Regulators can impose liabilities on a prospective basis for amounts previously collected from customers and for amounts that are expected to be refunded to customers. We record these items as regulatory liabilities. See Note 6, Regulatory Assets and Liabilities, for more information on our regulatory assets and liabilities.

***Uyghur Forced Labor Prevention Act***

In June 2022, the CBP implemented the UFLPA, which establishes a rebuttable presumption that certain silica-based products wholly or partially manufactured in the Xinjiang Uyghur Autonomous Region of China, such as polysilicon included in the manufacturing of solar panels, are prohibited from entering the United States. While our suppliers have been able to provide the CBP sufficient documentation to meet the UFLPA compliance requirements, and we expect the same will be true for subsequent projects, we cannot currently predict what, if any, long-term impact the UFLPA will have on the overall supply of solar panels into the United States and whether we will experience any further impacts to the timing and cost of our solar projects included in WEC Energy Group's long-term capital plan.

In 2025, the Department of Homeland Security announced the addition of more Chinese businesses to the UFLPA, including several solar supply chain providers. We are working to avoid doing business with these companies and remain in compliance with the UFLPA.

***United States Department of Commerce Complaints***

Starting in June 2024, the DOC began applying duties to certain imports of solar cells from Malaysia, Vietnam, Thailand and Cambodia, with the potential for enhanced duties in certain circumstances, based on final findings by both the DOC and the USITC in their AD/CVD investigations that Chinese manufacturers were shifting products to those four Southeast Asian countries to avoid tariffs required on products imported from China.

In April 2025, based upon investigation in response to a new petition, the DOC reached affirmative findings that some Chinese companies had moved their solar operations to avoid penalties imposed in the first investigation, increasing tariff rates, in some cases significantly. These increased rates became effective and enforceable in May 2025 upon the USITC's final affirmative determination. As a result of these duties, the cost and availability of solar panels in the U.S. has been impacted and the U.S. solar industry overall has experienced higher costs of materials as well as delays. Some of these impacts have already been reflected in the estimated cost and in-service dates for certain of our solar projects.

In August 2025, in response to another petition filed by a coalition of trade groups, the DOC and USITC initiated new AD/CVD investigations based on the coalition's claims that Chinese-owned manufacturers in Laos and Indonesia, as well as India-headquartered companies, are benefiting from illegal subsidies and selling solar products below cost in the US. Affirmative findings in these investigations could cause further strain on the solar panel industry. We are monitoring the status of these petitions.

***Renewable Energy Legislation***

**Infrastructure Investment and Jobs Act** 

In November 2021, the Infrastructure Investment and Jobs Act was signed into law and provides for approximately $1.2 trillion of federal spending through 2026, including approximately $85 billion for investments in power, utilities, and renewables infrastructure across the United States. Funding from this Act supports the work we are doing to reduce GHG emissions and to strengthen and protect the energy grid. In January 2025, disbursement of funds was paused until agency heads can determine whether grants, loans, contracts, and other disbursements are consistent with the current administration's energy policy. In some cases, the pause has disrupted, and could continue to disrupt, funding, temporarily or permanently, for infrastructure projects already in progress, may cause project delays and cancellations, and may impact continuing payment obligations for downstream contractors and suppliers.

*2025 Form 10-K* 43 *Wisconsin Public Service Corporation*

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**Inflation Reduction Act**

In August 2022, the IRA was signed into law and provides for $258 billion in energy-related provisions over a 10-year period. The IRA has helped reduce our cost of investing in projects that will support our commitment to reduce emissions and provide affordable, reliable, and clean energy for our communities. We and our customers have benefited from the IRA's provisions to extend tax benefits for renewable technologies, increase or restore higher rates for PTCs, claim PTCs for solar projects, expand qualified ITC facilities to include standalone energy storage, and allow companies to transfer tax credits generated from renewable projects.

Under the IRA transferability option, WEC Energy Group entered into agreements in October 2024, April 2025, and September 2025 to sell the majority of the PTCs and ITCs we generated, or expect to generate, in 2025 and 2026, respectively, to third parties. In May 2025, WEC Energy Group entered into an agreement to sell the majority of our remaining unsold PTCs we generated in 2024 to a third party. See Note 1(n), Income Taxes, for more information about the impact of these sales. The IRA also implements a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases. Although significant regulatory guidance is expected on the tax provisions in the IRA, we currently believe the provisions on alternative minimum tax and stock repurchases will not have a material impact on us.

**One Big Beautiful Bill Act**

In July 2025, the OBBBA was signed into law, enacting significant modifications to clean-energy tax credits previously provided under the IRA. The OBBBA provides companies the ability to earn solar and wind tax credits at current credit rates if construction of projects begins by July 4, 2026, and the projects are placed in-service within four years after beginning construction. However, wind and solar projects that begin construction more than one year after enactment of the OBBBA must be placed in service by December 31, 2027 to qualify for PTCs and ITCs. In addition, wind and solar projects that begin construction after December 31, 2025 must also satisfy prohibited foreign entity material assistance requirements. The incentives can also be denied for taxpayers that exceed certain thresholds of equity or debt held by specified foreign entities. The phase out of PTCs and ITCs does not apply to energy storage, hydroelectric facilities, nuclear, or any other zero emission technology. The OBBBA preserves the ability to transfer tax credits, with the exception of transfers to a prohibited foreign entity. In August 2025, the U.S. Treasury Department implemented new beginning-of-construction safe harbor rules that became effective in September 2025. WEC Energy Group's capital plan for 2026 through 2030 reflects the impacts of OBBBA, including the revised beginning-of-construction rules.

***Environmental Matters***

See Note 21, Commitments and Contingencies, for a discussion of certain environmental matters affecting us, including rules and regulations relating to air quality, water quality, and land quality.

**Market Risks and Other Significant Risks**

We are exposed to market and other significant risks as a result of the nature of our businesses and the environments in which those businesses operate. These include, but are not limited to, the risks described below. In addition, there is continuing uncertainty over the impact of increasing tensions between the U.S. and other countries and new, protracted or escalating regional and international conflicts on the global economy, supply chains, and fuel prices.

***Commodity Costs***

In the normal course of providing energy, we are subject to market fluctuations in the costs of coal, natural gas, purchased power, and fuel oil used in the delivery of coal. We manage our fuel and natural gas supply costs through a portfolio of short and long-term procurement contracts with various suppliers for the purchase of coal, natural gas, and fuel oil. In addition, we manage the risk of price volatility through natural gas and electric hedging programs.

Embedded within our rates are amounts to recover fuel, natural gas, and purchased power costs. We have recovery mechanisms in place that generally allow us to recover or refund all or a portion of the changes in prudently incurred fuel, natural gas, and purchased power costs from rate case-approved amounts. See Item 1. Business – D. Regulation for more information on these mechanisms.

Higher commodity costs can increase our working capital requirements, result in higher gross receipts taxes, and lead to increased energy efficiency investments by our customers to reduce utility usage and/or fuel substitution. Higher commodity costs combined

*2025 Form 10-K* 44 *Wisconsin Public Service Corporation*

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with slower economic conditions also expose us to greater risks of accounts receivable write-offs as more customers are unable to pay their bills. See Note 5, Credit Losses, for more information on our mechanism that allows for cost recovery or refund of uncollectible expense.

***Weather***

Our utility rates are based upon estimated normal temperatures. Our electric utility margins are unfavorably sensitive to below normal temperatures during the summer cooling season and, to some extent, to above normal temperatures during the winter heating season. Our natural gas utility margins are unfavorably sensitive to above normal temperatures during the winter heating season. The fixed charge included in our natural gas rates helps to mitigate the impacts of weather. A summary of actual weather information in our service territory, as measured by degree days, can be found in Results of Operations.

Our operations, primarily our electric operations, can be negatively impacted from storms. High wind conditions, lightning, hail, and flooding from storms can result in downed wires and poles, as well as damage to wind and solar generation facilities and other operating equipment. This can result in us incurring significant restoration costs and lost revenue to our customers. Our rates include a fixed amount for expected storm restoration costs. To the extent actual storm restoration costs are above what is included in these rates, our earnings are negatively impacted and it becomes more difficult to achieve our authorized ROE.

***Interest Rates***

We are exposed to interest rate risk resulting from our short-term borrowings and projected near-term debt financing needs. We manage exposure to interest rate risk by limiting the amount of our variable rate obligations and continually monitoring the effects of market changes on interest rates. When it is advantageous to do so, we enter into long-term fixed rate debt.

Based on our variable rate debt outstanding at December 31, 2025 and 2024, a hypothetical increase in market interest rates of one percentage point would have increased annual interest expense by $1.6 million and $0.6 million in 2025 and 2024, respectively. This sensitivity analysis was performed assuming a constant level of variable rate debt during the period and an immediate increase in interest rates, with no other changes for the remainder of the period.

***Marketable Securities Return***

We use various trusts to fund our pension and OPEB obligations. These trusts invest in debt and equity securities. Changes in the market prices of these assets can affect future pension and OPEB expenses. Additionally, future contributions can also be affected by the investment returns on trust fund assets. The financial risks associated with investment returns are mitigated through the requirement that we implement escrow accounting treatment for pension and OPEB costs in 2023 through 2026, as required by the December 2022 and December 2024 rate orders issued by the PSCW. As a result, we defer as a regulatory asset or liability, the difference between actual pension and OPEB costs and those included in rates until recovery or refund is authorized in a future rate proceeding.

The fair value of our trust fund assets and expected long-term returns were approximately:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **As of December 31, 2025** | **Expected Return on Assets in 2026** |
| Pension trust funds | $**740.3** | 6.75% |
| OPEB trust funds | $**303.0** | 6.50% |

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Fiduciary oversight of the pension and OPEB trust fund investments is the responsibility of an Investment Trust Policy Committee. The Committee works with external actuaries and investment consultants on an ongoing basis to establish and monitor investment strategies and target asset allocations. Forecasted cash flows for plan liabilities are regularly updated based on annual valuation results. Target asset allocations are determined utilizing projected benefit payment cash flows and risk analyses of appropriate investments. The targeted asset allocations are intended to reduce risk, provide long-term financial stability for the plans and maintain funded levels which meet long-term plan obligations while preserving sufficient liquidity for near-term benefit payments. Investment strategies utilize a wide diversification of asset types and qualified external investment managers.

*2025 Form 10-K* 45 *Wisconsin Public Service Corporation*

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WEC Energy Group consults with its investment advisors on an annual basis to help it forecast expected long-term returns on plan assets by reviewing actual historical returns and calculating expected total trust returns using the weighted-average of long-term market returns for each of the major target asset categories utilized in the funds.

***Economic Conditions***

Our service territories are within the state of Wisconsin. As such, we are exposed to market risks in the regional Midwest economy. In addition, any economic downturn or disruption of national or international markets could adversely affect the financial condition of our customers and demand for their products, which could affect their demand for our products.

***Changes to United States Trade Policy (Tariff Activity)***

The U.S. continues to implement changes to its international trade policy including changes to tariffs, port fees and other policies relating to exports from and imports into the United States. In response to these changes, foreign governments also continue to adjust their trade policies, including the imposition of additional tariffs. There remains significant uncertainty as to the ultimate scope of the U.S. and foreign trade policies. Both the U.S. and foreign trade policy changes could increase the cost of materials or disrupt supply chains, which could impact our ability to repair or maintain our infrastructure; the timing, cost or completion of our infrastructure projects; and/or our ability to execute on our projects included in WEC Energy Group's capital plan. In addition, these changes, including any impact they may have to economic conditions, could lead to reduced energy demand by our customers. Consequently, these policy changes could have a material adverse effect on our business, results of operations and financial condition.

***Inflation and Supply Chain Disruptions***

We continue to monitor the impact of inflation and supply chain disruptions. We monitor the costs of medical plans, fuel, transmission access, construction costs, regulatory and environmental compliance costs, and other costs in order to minimize inflationary effects in future years, to the extent possible, through pricing strategies, productivity improvements, and cost reductions. We monitor the global supply chain, and related disruptions, in order to ensure we are able to procure the materials and other resources necessary to both maintain our energy services in a safe and reliable manner and to grow our infrastructure in accordance with WEC Energy Group's capital plan, which includes us. For additional information concerning risks related to inflation and supply chain disruptions, see the four risk factors below.

• Item 1A. Risk Factors – Risks Related to the Operation of Our Business – Public health crises, including epidemics and pandemics, could adversely affect our business functions, financial condition, liquidity, and results of operations.

• Item 1A. Risk Factors – Risks Related to the Operation of Our Business – Our operations and WEC Energy Group's corporate strategy may be adversely affected by supply chain disruptions, inflation, and tariffs.

*•* Item 1A. Risk Factors – Risks Related to the Operation of Our Business – We are actively involved with multiple significant capital projects, which are subject to a number of risks and uncertainties that could adversely affect project costs and completion of construction projects.

• Item 1A. Risk Factors – Risks Related to Economic and Market Volatility – The fluctuation in demand for certain commodities and their respective prices could negatively impact our operations.

For additional information concerning risk factors, including market risks, see the Cautionary Statement Regarding Forward-Looking Information at the beginning of this report and Item 1A. Risk Factors.

**Critical Accounting Policies and Estimates**

The preparation of financial statements in compliance with GAAP requires the application of accounting policies, as well as the use of estimates, assumptions, and judgments that could have a material impact on our financial statements and related disclosures. Judgments regarding future events may include the likelihood of success of particular projects, legal and regulatory challenges, and anticipated recovery of costs. Actual results may differ significantly from estimated amounts based on varying assumptions.

*2025 Form 10-K* 46 *Wisconsin Public Service Corporation*

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Our significant accounting policies are described in Note 1, Summary of Significant Accounting Policies. The following is a list of accounting policies and estimates that require management's most difficult, subjective, or complex judgments and may change in subsequent periods.

***Regulatory Accounting***

Our utility operations follow the guidance under the Regulated Operations Topic of the FASB ASC (Topic 980). Our financial statements reflect the effects of the ratemaking principles followed by the jurisdictions regulating us. Certain items that would otherwise be immediately recognized as revenues and expenses are deferred as regulatory assets and regulatory liabilities for future recovery or refund to customers, as authorized by our regulators.

Future recovery of regulatory assets, including the timeliness of recovery and our ability to earn a reasonable return, is not assured and is generally subject to review by regulators in rate proceedings for matters such as prudence and reasonableness. Once approved, the regulatory assets and liabilities are amortized into earnings over the rate recovery or refund period. If recovery or refund of costs is not approved or is no longer considered probable, these regulatory assets or liabilities are recognized in current period earnings. Management regularly assesses whether these regulatory assets and liabilities are probable of future recovery or refund by considering factors such as changes in the regulatory environment, earnings from our electric and natural gas utility operations, rate orders issued by our regulators, historical decisions by our regulators regarding regulatory assets and liabilities, and the status of any pending or potential deregulation legislation.

The application of the Regulated Operations Topic of the FASB ASC would be discontinued if all or a separable portion of our utility operations no longer met the criteria for application. Our regulatory assets and liabilities would be written off to income as an unusual or infrequently occurring item in the period in which discontinuation occurred. See Note 6, Regulatory Assets and Liabilities, for more information on our regulatory assets and liabilities.

***Goodwill***

We completed our annual goodwill impairment test for our utility reporting unit that carried $36.4 million of goodwill as of July 1, 2025. No impairment was recorded as a result of this test. The fair value calculated in step one of the test was greater than its carrying value. The fair value of our reporting unit was calculated using a combination of the income approach and the market approach.

For the income approach, we used internal forecasts to project cash flows. Any forecast contains a degree of uncertainty, and changes in these cash flows could significantly increase or decrease the calculated fair value of a reporting unit. Since our reporting unit is regulated, a fair recovery of and return on costs prudently incurred to serve customers is assumed. An unfavorable outcome in a rate case could cause the fair value of our reporting unit to decrease.

Key assumptions used in the income approach include ROE, the long-term growth rate used to determine the terminal value at the end of the discrete forecast period, and the discount rate. The discount rate is applied to estimated future cash flows and is one of the most significant assumptions used to determine fair value under the income approach. As interest rates rise, the calculated fair value will decrease. The discount rate is based on the weighted-average cost of capital, taking into account both the after-tax cost of debt and cost of equity. The terminal year ROE is driven by our current allowed ROE. The terminal growth rate is based primarily on a combination of historical and forecasted statistics for real gross domestic product and personal income for our service area.

For the market approach, we used a higher weighting for the guideline public company method than the guideline merged and acquired company method due to a low number of mergers and acquisitions in recent years. The guideline public company method uses financial metrics from similar utility companies to determine fair value. The guideline merged and acquired company method calculates fair value by analyzing the actual prices paid for recent mergers and acquisitions in the industry. We applied multiples derived from these two methods to the appropriate operating metrics for our reporting unit to determine fair value.

The underlying assumptions and estimates used in the impairment test were made as of a point in time. Subsequent changes in these assumptions and estimates could change the result of the test.

At July 1, 2025, the fair value of our reporting unit exceeded its carrying value by over 50%. Based on this result, our reporting unit is not at risk of failing step one of the goodwill impairment test.

*2025 Form 10-K* 47 *Wisconsin Public Service Corporation*

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See Note 10, Goodwill and Intangible Assets, for more information.

***Long-Lived Assets***

In accordance with ASC 980-360, Regulated Operations – Property, Plant, and Equipment, we periodically assess the recoverability of certain long-lived assets when events or changes in circumstances indicate that the carrying amount of those long-lived assets may not be recoverable. Examples of events or changes in circumstances include, but are not limited to, a significant decrease in the market price, a significant change in use, a regulatory decision related to recovery of assets from customers, adverse legal factors or a change in business climate, operating or cash flow losses, or an expectation that the asset might be sold or abandoned. See Note 1(j), Asset Impairment, for our policy on accounting for abandonments and recently completed plant subject to disallowance.

Performing an impairment evaluation involves a significant degree of estimation and judgment by management in areas such as identifying circumstances that indicate an impairment may exist, identifying and grouping affected assets, and developing the undiscounted future cash flows. An impairment loss is measured as the excess of the carrying amount of the asset in comparison to the fair value of the asset. The fair value of the asset is assessed using various methods, including internally developed discounted cash flow analysis, expected recovery of regulated assets, and analysis from outside advisors.

See Note 7, Property, Plant, and Equipment, for more information on our generating units probable of being retired. See Note 6, Regulatory Assets and Liabilities, for more information on our retired generating units.

***Pension and Other Postretirement Employee Benefits***

The costs of providing non-contributory defined pension benefits and OPEB, described in Note 19, Employee Benefits, are dependent upon numerous factors resulting from actual plan experience and assumptions of future experience.

Pension and OPEB costs are impacted by actual employee demographics (including age, compensation levels, and employment periods), the level of contributions made to the plans, and earnings on plan assets. Pension and OPEB costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets, mortality and discount rates, and expected health care cost trends. Changes made to the plan provisions may also impact current and future pension and OPEB costs.

Pension and OPEB plan assets are primarily made up of equity and fixed income investments. Fluctuations in actual equity and fixed income market returns, as well as changes in general interest rates, may result in increased or decreased benefit costs in future periods. Changes in benefit costs are mitigated through the requirement that we implement escrow accounting treatment for pension and OPEB costs, as required by rate orders issued by the PSCW. See Note 23, Regulatory Environment, for more information on our rates.

The following table shows how a given change in certain actuarial assumptions would impact the projected benefit obligation and the reported net periodic pension cost (including amounts capitalized to our balance sheets). Each factor below reflects an evaluation of the change based on a change in that assumption only.

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| | | | |
|:---|:---|:---|:---|
| **Actuarial Assumption**<br>***(in millions, except percentages)*** | **Percentage-Point Change in Assumption** | **Impact on Projected Benefit Obligation** | **Impact on 2025**<br>**Pension Cost** |
| Discount rate | (0.5) | $31.3 | $(0.6) |
| Discount rate | 0.5 | (28.0) | 0.6 |
| Rate of return on plan assets | (0.5) | N/A | 3.7 |
| Rate of return on plan assets | 0.5 | N/A | (3.7) |

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*2025 Form 10-K* 48 *Wisconsin Public Service Corporation*

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The following table shows how a given change in certain actuarial assumptions would impact the accumulated OPEB obligation and the reported net periodic OPEB cost (including amounts capitalized to our balance sheets). Each factor below reflects an evaluation of the change based on a change in that assumption only.

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| | | | |
|:---|:---|:---|:---|
| **Actuarial Assumption**<br>***(in millions, except percentages)*** | **Percentage-Point Change in Assumption** | **Impact on Postretirement<br>Benefit Obligation** | **Impact on 2025 Postretirement**<br>**Benefit Cost** |
| Discount rate | (0.5) | $8.3 | $— |
| Discount rate | 0.5 | (7.5) | (0.6) |
| Health care cost trend rate | (0.5) | (6.2) | (1.1) |
| Health care cost trend rate | 0.5 | 7.0 | 0.6 |
| Rate of return on plan assets | (0.5) | N/A | 1.4 |
| Rate of return on plan assets | 0.5 | N/A | (1.4) |

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The discount rates are selected based on hypothetical bond portfolios consisting of noncallable, high-quality corporate bonds across the full maturity spectrum. From the hypothetical bond portfolios, a single rate is determined that equates the market value of the bonds purchased to the discounted value of the plans' expected future benefit payments.

We establish our expected return on assets based on consideration of historical and projected asset class returns, as well as the target allocations of the benefit trust portfolios. The assumed long-term rate of return on pension plan assets was 6.75% in 2025, 2024, and 2023, respectively. The actual rate of return on pension plan assets, net of fees, was 9.54%, 4.28%, and 10.43% in 2025, 2024, and 2023, respectively.

In selecting assumed health care cost trend rates, past performance and forecasts of health care costs are considered. For more information on health care cost trend rates and a table showing future payments that we expect to make for our pension and OPEB, see Note 19, Employee Benefits.

***Unbilled Revenues***

We record utility operating revenues when energy is delivered to our customers. However, the determination of energy sales to individual customers is based upon the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to customers since the date of their last meter reading are estimated and corresponding unbilled revenues are calculated.

Unbilled revenues are estimated each month based upon actual generation and throughput volumes, recorded sales, estimated customer usage by class, weather factors, estimated line losses, and applicable customer rates. Energy demand for the unbilled period or changes in rate mix due to fluctuations in usage patterns of customer classes could impact the accuracy of the unbilled revenue estimate. Total unbilled utility revenues were $86.2 million and $65.8 million as of December 31, 2025 and 2024, respectively. The changes in unbilled revenues are primarily due to changes in the cost of natural gas, weather, and customer rates.

***Income Tax Expense***

Significant management judgment is required in determining our provision for income taxes, deferred income tax assets and liabilities, the liability for unrecognized tax benefits, and any valuation allowance recorded against deferred income tax assets. The assumptions involved are supported by historical data, reasonable projections, and interpretations of applicable tax laws and regulations across multiple taxing jurisdictions. Significant changes in these assumptions could have a material impact on our financial condition and results of operations. See Note 1(n), Income Taxes, and Note 16, Income Taxes, for a discussion of accounting for income taxes.

We are required to estimate income taxes for each of our applicable tax jurisdictions as part of the process of preparing financial statements. This process involves estimating current income tax liabilities together with assessing temporary differences resulting from differing treatment of items, such as depreciation, for income tax and accounting purposes. These differences result in deferred income tax assets and liabilities, which are included within our balance sheets. We also assess the likelihood that our deferred income tax assets will be recovered through future taxable income. To the extent we believe that realization is not likely, we establish a valuation allowance, which is offset by an adjustment to income tax expense in our income statements.

*2025 Form 10-K* 49 *Wisconsin Public Service Corporation*

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Uncertainty associated with the application of tax statutes and regulations, the outcomes of tax audits and appeals, changes in income tax law, enacted tax rates or amounts subject to income tax, and changes in the regulatory treatment of any tax reform benefits requires that judgments and estimates be made in the accrual process and in the calculation of effective tax rates. Only income tax benefits that meet the "more likely than not" recognition threshold may be recognized or continue to be recognized. Unrecognized tax benefits are re-evaluated quarterly and changes are recorded based on new information, including the issuance of relevant guidance by the courts or tax authorities and developments occurring in the examinations of our tax returns.

We expect our 2026 annual effective tax rate to be between 15.5% and 16.5%. Our effective tax rate calculations are revised every quarter based on the best available year-end tax assumptions, adjusted in the following year after returns are filed. Tax accrual estimates are trued-up to the actual amounts claimed on the tax returns and further adjusted after examinations by taxing authorities, as needed.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Market Risks and Other Significant Risks, as well as Note 1(o), Fair Value Measurements, Note 1(p), Derivative Instruments, and Note 1(q), Guarantees, for information concerning potential market risks to which we are exposed.

*2025 Form 10-K* 50 *Wisconsin Public Service Corporation*

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**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**A. REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the shareholder and the Board of Directors of Wisconsin Public Service Corporation

**Opinion on the Financial Statements**

We have audited the accompanying balance sheets of Wisconsin Public Service Corporation (the "Company") as of December 31, 2025 and 2024, the related statements of income, equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

***Regulatory Assets and Liabilities - Impact of rate regulation on financial statements — Refer to Notes 6 and 23 to the financial statements***

*Critical Audit Matter Description*

The Company is subject to regulation by state and federal regulatory bodies (collectively the "Commissions") which have jurisdiction with respect to the rates of electric and gas utilities. Management has determined the Company meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the Regulated Operations Topic of the Financial Accounting Standards Board's Accounting Standard Codification.

*2025 Form 10-K* 51 *Wisconsin Public Service Corporation*

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Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Current and future regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered through rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Certain items that would otherwise be immediately recognized as revenues and expenses are deferred as regulatory assets and regulatory liabilities for future recovery or refund to customers, as authorized by the Company's regulators. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve: (1) full recovery of the costs of providing utility service, (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment or (3) timely recovery of costs incurred.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about the impacted account balances and disclosures and the subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs and/or (2) a refund to customers. Auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the impact of rate regulation on certain assets and liabilities included the following procedures, among others:

• We tested the effectiveness of management's controls over regulatory assets and liabilities, including management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred reported as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities. We also tested the effectiveness of management's controls over the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.

• We inquired of Company management and independently obtained and read: (1) relevant regulatory orders issued by the Commissions for the Company, (2) Company filings with the Commissions, (3) filings made by intervenors and (4) other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances. To assess completeness, we evaluated the information obtained and compared it to management's recorded regulatory asset and liability balances.

• For regulatory matters in process, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.

• We evaluated management's conclusions regarding the probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order.

• We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

**<u>/s/ DELOITTE & TOUCHE LLP</u>**

Milwaukee, Wisconsin

February 20, 2026

We have served as the Company's auditor since 2002.

*2025 Form 10-K* 52 *Wisconsin Public Service Corporation*

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**B. INCOME STATEMENTS**

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| | | | |
|:---|:---|:---|:---|
| **Year Ended December 31**<br>***(in millions)*** | **2025** | **2024** | **2023** |
| **Operating revenues** | $**1836.9** | $1560.4 | $1681.4 |
| **Operating expenses** |  |  |  |
| Cost of sales | **609.3** | 485.3 | 606.8 |
| Other operation and maintenance | **480.5** | 440.3 | 434.3 |
| Depreciation and amortization | **268.0** | 238.5 | 226.9 |
| Property and revenue taxes | **44.3** | 46.9 | 47.4 |
| **Total operating expenses** | **1402.1** | 1211.0 | 1315.4 |
| **Operating income** | **434.8** | 349.4 | 366.0 |
| Other income, net | **19.9** | 50.1 | 45.9 |
| Interest expense | **94.3** | 95.0 | 89.0 |
| **Other expense** | **(74.4)** | (44.9) | (43.1) |
| Income before income taxes | **360.4** | 304.5 | 322.9 |
| Income tax expense | **66.8** | 51.6 | 62.7 |
| **Net income** | $**293.6** | $252.9 | $260.2 |

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The accompanying Notes to Financial Statements are an integral part of these financial statements.

*2025 Form 10-K* 53 *Wisconsin Public Service Corporation*

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**C. BALANCE SHEETS**

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| | | |
|:---|:---|:---|
| **At December 31**<br>***(in millions, except share and per share amounts)*** | **2025** | **2024** |
| **Assets** |  |  |
| **Current assets** |  |  |
| Cash and cash equivalents | $**0.7** | $1.5 |
| Accounts receivable and unbilled revenues, net of reserves of $7.8 and $8.6, respectively | **293.9** | 225.1 |
| Accounts receivable from related parties | **26.6** | 29.6 |
| Materials, supplies, and inventories | **170.6** | 167.1 |
| Prepaid taxes | **44.9** | 57.4 |
| Other prepayments | **7.7** | 8.2 |
| Other | **18.0** | 13.8 |
| **Current assets** | **562.4** | 502.7 |
| **Long-term assets** |  |  |
| Property, plant, and equipment, net of accumulated depreciation and amortization of $2,320.2 and $2,190.8, respectively | **6611.6** | 6139.2 |
| Regulatory assets | **446.2** | 449.7 |
| Goodwill | **36.4** | 36.4 |
| Pension and OPEB assets | **357.7** | 328.9 |
| Other | **40.3** | 38.8 |
| **Long-term assets** | **7492.2** | 6993.0 |
| **Total assets** | $**8054.6** | $7495.7 |
| **Liabilities and Equity** |  |  |
| **Current liabilities** |  |  |
| Short-term debt | $**159.5** | $62.0 |
| Current portion of long-term debt | **—** | 300.0 |
| Accounts payable | **129.6** | 118.9 |
| Accounts payable to related parties | **79.0** | 77.5 |
| Accrued payroll and vacation | **28.8** | 25.1 |
| Customer credit balances | **42.4** | 33.7 |
| Other | **40.1** | 27.9 |
| **Current liabilities** | **479.4** | 645.1 |
| **Long-term liabilities** |  |  |
| Long-term debt | **1959.3** | 1958.0 |
| Finance lease obligations | **77.8** | 65.7 |
| Deferred income taxes | **1034.2** | 996.9 |
| Deferred ITCs | **77.9** | 68.2 |
| Regulatory liabilities | **643.4** | 696.3 |
| Environmental remediation liabilities | **104.7** | 77.3 |
| AROs | **205.8** | 191.2 |
| Other | **96.6** | 85.2 |
| **Long-term liabilities** | **4199.7** | 4138.8 |
| Commitments and contingencies (Note 21) |  |  |
| **Common shareholder's equity** |  |  |
| Common stock – $4 par value; 32,000,000 shares authorized; 23,896,962 shares issued and outstanding | **95.6** | 95.6 |
| Additional paid in capital | **2347.3** | 1857.2 |
| Retained earnings | **932.6** | 759.0 |
| **Common shareholder's equity** | **3375.5** | 2711.8 |
| **Total liabilities and equity** | $**8054.6** | $7495.7 |

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The accompanying Notes to Financial Statements are an integral part of these financial statements.

*2025 Form 10-K* 54 *Wisconsin Public Service Corporation*

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**D. STATEMENTS OF CASH FLOWS**

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| | | | |
|:---|:---|:---|:---|
| **Year Ended December 31**<br>***(in millions)*** | **2025** | **2024** | **2023** |
| **Operating activities** |  |  |  |
| Net income | $**293.6** | $252.9 | $260.2 |
| Reconciliation to cash provided by operating activities |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **268.0** | 238.5 | 226.9 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes and ITCs, net | **36.9** | 52.5 | 44.9 |
| &nbsp;&nbsp;&nbsp;Pension and OPEB income | **(12.2)** | (8.0) | (7.6) |
| &nbsp;&nbsp;&nbsp;Change in – |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable and unbilled revenues, net | **(75.2)** | 6.2 | 47.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materials, supplies, and inventories | **(3.5)** | 4.0 | (1.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid taxes | **12.5** | (8.5) | 9.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collateral on deposit | **(4.1)** | 10.3 | 10.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | **0.5** | (1.8) | 2.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **13.0** | (13.2) | (45.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts refundable to customers | **11.1** | (8.2) | (1.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | **9.5** | 9.2 | 5.0 |
| &nbsp;&nbsp;&nbsp;Other, net | **(35.7)** | (1.0) | 24.9 |
| **Net cash provided by operating activities** | **514.4** | 532.9 | 575.7 |
| **Investing activities** |  |  |  |
| Capital expenditures | **(704.4)** | (493.8) | (453.8) |
| Acquisition of Whitewater | **—** |  | (38.0) |
| Acquisition of Red Barn | **—** | (2.1) | (143.8) |
| Proceeds from cash surrender value of life insurance | **9.8** |  |  |
| Reimbursement for ATC's transmission infrastructure upgrades | **6.6** | 0.4 | 0.1 |
| Other, net | **6.8** | 8.6 | (2.5) |
| **Net cash used in investing activities** | **(681.2)** | (486.9) | (638.0) |
| **Financing activities** |  |  |  |
| Retirement of long-term debt | **(300.0)** |  |  |
| Issuance of long-term debt | **—** | 299.8 |  |
| Change in short-term debt | **97.5** | (248.3) | 115.4 |
| Payment of dividends to parent | **(120.0)** | (170.0) | (255.0) |
| Equity contribution from parent | **490.0** | 75.0 | 165.0 |
| Other, net | **(1.5)** | (2.4) | (0.2) |
| **Net cash provided by (used in) financing activities** | **166.0** | (45.9) | 25.2 |
| **Net change in cash, cash equivalents, and restricted cash** | **(0.8)** | 0.1 | (37.1) |
| Cash, cash equivalents, and restricted cash at beginning of year | **1.5** | 1.4 | 38.5 |
| **Cash, cash equivalents, and restricted cash at end of year** | $**0.7** | $1.5 | $1.4 |

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The accompanying Notes to Financial Statements are an integral part of these financial statements.

*2025 Form 10-K* 55 *Wisconsin Public Service Corporation*

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**E. STATEMENTS OF EQUITY**

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| | | | | |
|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Common<br>Stock** | **Additional<br>Paid In<br>Capital** | **Retained<br>Earnings** | **Total Common Shareholder's Equity** |
| **Balance at December 31, 2022** | $95.6 | $1616.8 | $670.9 | $2383.3 |
| Net income |  |  | 260.2 | 260.2 |
| Equity contribution from parent |  | 165.0 |  | 165.0 |
| Payment of dividends to parent |  |  | (255.0) | (255.0) |
| Stock-based compensation and other |  | 0.2 |  | 0.2 |
| **Balance at December 31, 2023** | $95.6 | $1782.0 | $676.1 | $2553.7 |
| Net income |  |  | 252.9 | 252.9 |
| Equity contribution from parent |  | 75.0 |  | 75.0 |
| Payment of dividends to parent |  |  | (170.0) | (170.0) |
| Stock-based compensation and other |  | 0.2 |  | 0.2 |
| **Balance at December 31, 2024** | $95.6 | $1857.2 | $759.0 | $2711.8 |
| Net income | **—** | **—** | **293.6** | **293.6** |
| Equity contribution from parent | **—** | **490.0** | **—** | **490.0** |
| Payment of dividends to parent | **—** | **—** | **(120.0)** | **(120.0)** |
| Stock-based compensation and other | **—** | **0.1** | **—** | **0.1** |
| **Balance at December 31, 2025** | $**95.6** | $**2347.3** | $**932.6** | $**3375.5** |

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The accompanying Notes to Financial Statements are an integral part of these financial statements.

*2025 Form 10-K* 56 *Wisconsin Public Service Corporation*

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**F. NOTES TO FINANCIAL STATEMENTS**

**NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**(a) Nature of Operations**—We are an electric and natural gas utility company that serves electric and natural gas customers in northeastern Wisconsin. We are subject to the jurisdiction of, and regulation by, the PSCW, which has general supervisory and regulatory powers over virtually all phases of the public utility industry in Wisconsin. In addition, we are subject to the jurisdiction of the FERC, which regulates our natural gas pipelines and wholesale electric rates. We are an indirect, wholly owned subsidiary of WEC Energy Group.

As used in these notes, the term "financial statements" includes the income statements, balance sheets, statements of cash flows, and statements of equity, unless otherwise noted.

These financial statements reflect our proportionate interests in certain jointly owned utility facilities. See Note 8, Jointly-Owned Utility Facilities, for more information. Investments in companies not controlled by us, but over which we have significant influence regarding the operating and financial policies of the investee, are accounted for using the equity method.

**(b) Basis of Presentation**—We prepare our financial statements in conformity with GAAP. We make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates.

**(c) Cash and Cash Equivalents**—Cash and cash equivalents include marketable debt securities with an original maturity of three months or less.

**(d) Operating Revenues**—The following discussion includes our significant accounting policies related to operating revenues. For additional required disclosures on disaggregation of operating revenues, see Note 4, Operating Revenues.

***Revenues from Contracts with Customers***

**Electric Utility Operating Revenues**

Electricity sales to residential and commercial and industrial customers are generally accomplished through requirements contracts, which provide for the delivery of as much electricity as the customer needs. These contracts represent discrete deliveries of electricity and consist of one distinct performance obligation satisfied over time, as the electricity is delivered and consumed by the customer simultaneously. For our residential and commercial and industrial customers, our performance obligation is bundled to consist of both the sale and the delivery of the electric commodity.

The transaction price of the performance obligations for residential and commercial and industrial customers is valued using the rates, charges, terms, and conditions of service included in our tariffs, which have been approved by the PSCW. These rates often have a fixed component customer charge and a usage-based variable component charge. We recognize revenue for the fixed component customer charge monthly using a time-based output method. We recognize revenue for the usage-based variable component charge using an output method based on the quantity of electricity delivered each month. Our retail electric rates include base amounts for fuel and purchased power costs, which also impact our revenues. The electric fuel rules set by the PSCW allow us to defer, for subsequent rate recovery or refund, under- or over-collections of actual fuel and purchased power costs beyond a 2% price variance from the costs included in the rates charged to customers. We monitor the deferral of under-collected costs to ensure that it does not cause us to earn a greater ROE than authorized by the PSCW. In addition, our residential tariffs include a mechanism for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates.

Wholesale customers who resell power can choose to either bundle capacity and electricity services together under one contract with a supplier or purchase capacity and electricity separately from multiple suppliers. Furthermore, wholesale customers can choose to have us provide generation to match the customer's load, similar to requirements contracts, or they can purchase specified quantities of electricity and capacity. Contracts with wholesale customers that include capacity bundled with the delivery of electricity contain two performance obligations, as capacity and electricity are often transacted separately in the marketplace at the wholesale level. When recognizing revenue associated with these contracts, the transaction price is allocated to each

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performance obligation based on its relative standalone selling price. Revenue is recognized as control of each individual component is transferred to the customer. Electricity is the primary product sold by our electric operations and represents a single performance obligation satisfied over time through discrete deliveries to a customer. Revenue from electricity sales is generally recognized as units are produced and delivered to the customer within the production month. Capacity represents the reservation of an electric generating facility and conveys the ability to call on a plant to produce electricity when needed by the customer. The nature of our performance obligation as it relates to capacity is to stand ready to deliver power. This represents a single performance obligation transferred over time, which generally represents a monthly obligation. Accordingly, capacity revenue is recognized on a monthly basis.

The transaction price of the performance obligations for wholesale customers is valued using the rates, charges, terms, and conditions of service, which have been approved by the FERC. These wholesale rates include recovery of fuel and purchased power costs from customers on a one-for-one basis. For the majority of our wholesale customers, the price billed for energy and capacity is a formula-based rate. Formula-based rates initially set a customer's current year rates based on the previous year's expenses. This is a predetermined formula derived from the utility's costs and a reasonable rate of return. Because these rates are eventually trued up to reflect actual current-year costs, they represent a form of variable consideration in certain circumstances. The variable consideration is estimated and recognized over time as wholesale customers receive and consume the capacity and electricity services.

We are an active participant in the MISO Energy Markets, where we bid our generation into the Day Ahead and Real Time markets and procure electricity for our retail and wholesale customers at prices determined by the MISO Energy Markets. Purchase and sale transactions are recorded using settlement information provided by MISO. These purchase and sale transactions are accounted for on a net hourly position. Net purchases in a single hour are recorded as purchased power in cost of sales, and net sales in a single hour are recorded as resale revenues on our income statements. For resale revenues, our performance obligation is created only when electricity is sold into the MISO Energy Markets.

For all of our customers, consistent with the timing of when we recognize revenue, customer billings generally occur on a monthly basis, with payments typically due in full within 30 days.

**Natural Gas Utility Operating Revenues**

We recognize natural gas utility operating revenues under requirements contracts with residential, commercial and industrial, and transportation customers served under our tariffs. Tariffs provide our customers with the standard terms and conditions, including rates, related to the services offered. Requirements contracts provide for the delivery of as much natural gas as the customer needs. These requirements contracts represent discrete deliveries of natural gas and constitute a single performance obligation satisfied over time. Our performance obligation is both created and satisfied with the transfer of control of natural gas upon delivery to the customer. For most of our customers, natural gas is delivered and consumed by the customer simultaneously. A performance obligation can be bundled to consist of both the sale and the delivery of the natural gas commodity. In Wisconsin, our customers can purchase the commodity from a third party. In this case, the performance obligation only includes the delivery of the natural gas to the customer.

The transaction price of the performance obligations for our natural gas customers is valued using the rates, charges, terms, and conditions of service included in our tariffs, which have been approved by the PSCW. These rates often have a fixed component customer charge and a usage-based variable component charge. We recognize revenue for the fixed component customer charge monthly using a time-based output method. We recognize revenue for the usage-based variable component charge using an output method based on natural gas delivered each month.

Our tariffs include various rate mechanisms that allow us to recover or refund changes in prudently incurred costs from rate case-approved amounts. Our rates include a one-for-one recovery mechanism for natural gas commodity costs. Under normal circumstances, we defer any difference between actual natural gas costs incurred and costs recovered through rates as a current asset or liability. The deferred balance is returned to or recovered from customers at intervals throughout the year.

In addition, our residential tariffs include a mechanism for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates.

Consistent with the timing of when we recognize revenue, customer billings generally occur on a monthly basis, with payments typically due in full within 30 days.

*2025 Form 10-K* 58 *Wisconsin Public Service Corporation*

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***Other Operating Revenues***

**Alternative Revenues** 

Alternative revenues are created from programs authorized by regulators that allow us to record additional revenues by adjusting rates in the future, usually as a surcharge applied to future billings, in response to past activities or completed events. We record alternative revenues when the regulator-specified conditions for recognition have been met. We reverse these alternative revenues as the customer is billed, at which time this revenue is presented as revenues from contracts with customers.

Our only alternative revenue program relates to the wholesale electric service that we provide to customers under market-based rates and FERC formula rates. The customer is charged a base rate each year based upon a formula using prior year actual costs and customer demand. A true-up is calculated based on the difference between the amount billed to customers for the demand component of their rates and what the actual cost of service was for the year. The true-up can result in an amount that we will recover from or refund to the customer. We consider the true-up portion of the wholesale electric revenues to be alternative revenues.

**(e) Credit Losses**—The following discussion includes our significant accounting policies related to credit losses. For additional required disclosures on credit losses, see Note 5, Credit Losses.

Our exposure to credit losses is related to our accounts receivable and unbilled revenue balances, which are generated from the sale of electricity and natural gas by our regulated utility operations. Our regulated utility operations are included in our utility segment. No accounts receivable and unbilled revenue balances were reported in the other segment at December 31, 2025 and 2024.

We evaluate the collectability of our accounts receivable and unbilled revenue balances considering a combination of factors. For some of our larger customers and also in circumstances where we become aware of a specific customer's inability to meet its financial obligations to us, we record a specific allowance for credit losses against amounts due in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we use the accounts receivable aging method to calculate an allowance for credit losses. Using this method, we classify accounts receivable into different aging buckets and calculate a reserve percentage for each aging bucket based upon historical loss rates. The calculated reserve percentages are updated on at least an annual basis, in order to ensure recent macroeconomic, political, and regulatory trends are captured in the calculation, to the extent possible. Risks identified that we do not believe are reflected in the calculated reserve percentages, are assessed on a quarterly basis to determine whether further adjustments are required.

We monitor our ongoing credit exposure through active review of counterparty accounts receivable balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. To the extent possible, we work with customers with past due balances to negotiate payment plans, but will disconnect customers for non-payment as allowed by the PSCW, if necessary, and employ collection agencies and legal counsel to pursue recovery of defaulted receivables. For our larger customers, detailed credit review procedures may be performed in advance of any sales being made. We sometimes require letters of credit, parental guarantees, prepayments or other forms of credit assurance from our larger customers to mitigate credit risk.

**(f) Materials, Supplies, and Inventories**—Our inventories as of December 31 consisted of:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Materials and supplies | $**101.8** | $100.8 |
| Fossil fuel | **40.7** | 39.9 |
| Natural gas in storage | **28.1** | 26.4 |
| **Total** | $**170.6** | $167.1 |

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Substantially all materials and supplies, fossil fuel, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

**(g) Regulatory Assets and Liabilities**—The economic effects of regulation can result in regulated companies recording costs and revenues that are allowed in the ratemaking process in a period different from the period they would have been recognized by a nonregulated company. When this occurs, regulatory assets and liabilities are recorded on the balance sheet. Regulatory assets represent deferred costs probable of recovery from customers that would have otherwise been charged to expense. Regulatory

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liabilities represent amounts that are expected to be refunded to customers in future rates or future costs already collected from customers in rates.

The recovery or refund of regulatory assets and liabilities is based on specific periods determined by our regulators or occurs over the normal operating period of the related assets and liabilities. If a previously recorded regulatory asset is no longer probable of recovery, the regulatory asset is reduced to the amount considered probable of recovery, and the reduction is charged to expense in the current period. See Note 6, Regulatory Assets and Liabilities, for more information.

**(h) Property, Plant, and Equipment**—We record property, plant, and equipment at cost. Cost includes material, labor, overhead, and both debt and equity components of AFUDC. Additions to and significant replacements of property are charged to property, plant, and equipment at cost; minor items are charged to other operation and maintenance expense. The cost of depreciable utility property less salvage value is charged to accumulated depreciation when property is retired.

We record straight-line depreciation expense over the estimated useful life of utility property using depreciation rates approved by the PSCW that include estimates for salvage value and removal costs. Annual utility composite depreciation rates were 3.01%, 2.92%, and 2.93% in 2025, 2024, and 2023, respectively.

We capitalize certain costs related to software developed or obtained for internal use and record these costs to amortization expense over the estimated useful life of the related software, which ranges from 3 to 15 years. If software is retired prior to being fully amortized, the difference is recorded as a loss on the income statement.

Third parties reimburse us for all or a portion of expenditures for certain capital projects. Such contributions in aid of construction costs are recorded as a reduction to property, plant, and equipment.

See Note 7, Property, Plant, and Equipment, for more information.

**(i) Allowance for Funds Used During Construction**—AFUDC is included in utility plant accounts and represents the cost of borrowed funds (AFUDC-Debt) used during plant construction, and a return on shareholders' capital (AFUDC-Equity) used for construction purposes. AFUDC-Debt is recorded as a reduction of interest expense, and AFUDC-Equity is recorded in other income, net.

Approximately 50% of our retail jurisdictional CWIP expenditures are subject to the AFUDC calculation. Our average AFUDC retail rates were 7.82%, 7.46%, and 7.46% for 2025, 2024, and 2023, respectively. Our average AFUDC wholesale rates were 6.62%, 5.53%, and 4.60% for 2025, 2024, and 2023, respectively.

We recorded the following AFUDC for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| AFUDC-Debt | $**4.7** | $3.6 | $2.9 |
| AFUDC-Equity | **12.2** | 9.2 | 7.6 |

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**(j) Asset Impairment**—Goodwill and other intangible assets with indefinite lives are subject to an annual impairment test. Interim impairment tests are performed when impairment indicators are present. During the third quarter of each year, we perform an annual goodwill impairment test. The carrying amount of our goodwill is considered not recoverable if the carrying amount of our net assets exceeds our fair value. An impairment loss is recorded as the excess of the carrying amount of the goodwill over its fair value. For our indefinite-lived intangible assets, an impairment loss is recognized when the carrying amount of an asset is not recoverable and exceeds its fair value. An impairment loss is measured as the excess of the carrying amount of the intangible asset over its fair value. No impairment losses were recorded for our indefinite-lived intangible assets during the years ended December 31, 2025, 2024, and 2023. See Note 10, Goodwill and Intangible Assets, for more information.

We periodically assess the recoverability of certain long-lived assets when factors indicate the carrying value of such assets may be impaired or such assets are planned to be sold. Long-lived assets that would be subject to an impairment assessment generally include any assets within regulated operations that may not be fully recovered from our customers as a result of regulatory decisions that will be made in the future. An impairment loss is recognized when the carrying amount of an asset is not recoverable and exceeds its fair value. The carrying amount of an asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the excess of the carrying amount of the asset over its fair value.

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We assess the likelihood of a disallowance of part of the cost of recently completed plant by considering factors such as applicable regulatory environment changes, our own recent rate orders, as well as recent rate orders of other regulated entities in similar jurisdictions. When it becomes probable that part of the cost of recently completed plant will be disallowed for rate-making purposes, we assess whether a reasonable estimate of the amount of the disallowance can be made. The estimated amount of the probable disallowance will then be deducted from the reported cost of the plant and recognized as an impairment loss.

When it becomes probable that a generating unit will be retired before the end of its useful life, we assess whether the generating unit meets the criteria for abandonment accounting. Generating units that are considered probable of abandonment are expected to cease operations in the near term, significantly before the end of their original estimated useful lives. If a generating unit meets the applicable criteria to be considered probable of abandonment, and the unit has been abandoned, we assess the likelihood of recovery of the remaining net book value of that generating unit at the end of each reporting period. If it becomes probable that regulators will disallow full recovery as well as a return on the remaining net book value of a generating unit that is either abandoned or probable of being abandoned, an impairment loss may be required. An impairment loss would be recorded if the remaining net book value of the generating unit is greater than the present value of the amount expected to be recovered from ratepayers, using an incremental borrowing rate. See Note 6, Regulatory Assets and Liabilities, and Note 7, Property, Plant, and Equipment, for more information.

We periodically assess the recoverability of equity method investments when factors indicate the carrying amount of such assets may be impaired. Equity method investments are assessed for impairment by comparing the fair values of these investments to their carrying amounts if a fair value assessment was completed or by reviewing for the presence of impairment indicators. If an impairment exists, and it is determined to be other-than-temporary, an impairment loss is recognized equal to the amount by which the carrying amount exceeds the investment's fair value.

**(k) Asset Retirement Obligations**—We recognize, at fair value, legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development, and normal operation of the assets. An ARO liability is recorded, when incurred, for these obligations as long as the fair value can be reasonably estimated, even if the timing or method of settling the obligation is unknown. The associated retirement costs are capitalized as part of the related long-lived asset and are depreciated over the useful life of the asset. The ARO liabilities are accreted each period using the credit-adjusted risk-free interest rates associated with the expected settlement dates of the AROs. These rates are determined when the obligations are incurred. Subsequent changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease to the carrying amount of the liability and the associated capitalized retirement costs. We recognize regulatory assets or liabilities for the timing differences between when we recover an ARO in rates and when we recognize the associated retirement costs. See Note 9, Asset Retirement Obligations, for more information.

**(l) Stock-Based Compensation**—Our employees participate in the WEC Energy Group stock-based compensation plans. In accordance with the Omnibus Stock Incentive Plan, WEC Energy Group provides long-term incentives through its equity interests to its non-employee directors, officers, and other key employees. The plan provides for the granting of stock options, restricted stock, performance shares, and other stock-based awards. Awards may be paid in WEC Energy Group common stock, cash, or a combination thereof. In addition to those shares of WEC Energy Group common stock that were subject to awards outstanding as of May 6, 2021, when the plan was last approved by shareholders, 9.0 million shares of WEC Energy Group common stock were reserved for issuance under the plan.

Stock-based compensation expense is allocated to us based on the outstanding awards held by our employees and our allocation of labor costs. Awards classified as equity awards are measured based on their grant-date fair value. Awards classified as liability awards are recorded at fair value each reporting period. We account for forfeitures as they occur.

***Stock Options***

Our employees are granted WEC Energy Group non-qualified stock options that generally vest on a cliff-basis after three years. The exercise price of a stock option under the plan cannot be less than 100% of the fair market value of WEC Energy Group common stock on the grant date. Historically, all stock options have been granted with an exercise price equal to the fair market value of WEC Energy Group common stock on the date of the grant. Options vest immediately upon retirement, death, or disability; however, they may not be exercised within six months of the grant date except in connection with certain termination of employment events following a change in control. Options expire no later than 10 years from the date of grant.

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WEC Energy Group stock options are classified as equity awards. The fair value of each stock option was calculated using a binomial option-pricing model. The following table shows the estimated weighted-average fair value per stock option granted to our employees along with the weighted-average assumptions used in the valuation models:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| Stock options granted | **10117** | **10117** | 11878 | 11878 | 10655 | 10655 |
| Estimated weighted-average fair value per stock option | **$** | **18.23** | $| 16.20 | $| 19.58 |
| **Assumptions used to value the options:** |  |  |  |  |  |  |
| Risk-free interest rate | **4.2% – 4.6%** | **4.2% – 4.6%** | 3.9% – 5.2% | 3.9% – 5.2% | 3.8% – 4.8% | 3.8% – 4.8% |
| Dividend yield | **4.1** | **4.1%** | 3.8 | 3.8% | 3.2 | 3.2% |
| Expected volatility | **22.0** | **22.0%** | 22.0 | 22.0% | 22.0 | 22.0% |
| Expected life (years) | **8.3** | **8.3** | 8.4 | 8.4 | 8.3 | 8.3 |

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The risk-free interest rate was based on the United States Treasury interest rate with a term consistent with the expected life of the stock options. The dividend yield was based on WEC Energy Group's dividend rate at the time of the grant and historical stock prices. Expected volatility and expected life assumptions were based on WEC Energy Group's historical experience.

***Restricted Shares***

WEC Energy Group restricted shares granted to our employees have a vesting period of three years with one-third of the award vesting on each anniversary of the grant date. The restricted shares are classified as equity awards.

***Performance Units***

Officers and other key employees are granted performance units under the WEC Energy Group Performance Unit Plan. All grants of performance units are settled in cash and are accounted for as liability awards accordingly. Performance units accrue forfeitable dividend equivalents in the form of additional performance units. The fair value of the performance units reflects our estimate of the final expected value of the awards, which is based on WEC Energy Group's stock price and performance achievement under the terms of the award. Stock-based compensation costs are generally recorded over the performance period, which is three years.

Pursuant to the terms of the WEC Energy Group Performance Unit Plan, the Compensation Committee selected multiple performance measures that will be weighted to determine the ultimate payout of the performance unit awards. The ultimate number of units that will be paid out will be based on WEC Energy Group's total shareholder return compared to the total shareholder return of a peer group of companies over three years (55%), and WEC Energy Group's performance against the weighted average authorized ROE of all of its utility subsidiaries (45%). In addition, the Compensation Committee selected the level of WEC Energy Group's stock price to earnings ratio compared to its peer companies as a performance measure that can increase the payout by up to 25%. In no event can the performance unit payout be greater than 200% of the target award.

See Note 11, Common Equity, for more information on WEC Energy Group's stock-based compensation plans.

**(m) Leases**—We recognize a right of use asset and lease liability for operating and finance leases with a term of greater than one year. As a policy election, we account for each lease component separately from the nonlease components of a contract.

We are currently party to several easement agreements that allow us access to land we do not own for the purpose of constructing and maintaining certain electric power and natural gas equipment. The majority of payments we make related to easements relate to our renewable generating facilities. We have not classified our easements as leases because we view the entire parcel of land specified in our easement agreements to be the identified asset, not just that portion of the parcel that contains our easement. As such, we have concluded that we do not control the use of an identified asset related to our easement agreements, nor do we obtain substantially all of the economic benefits associated with these shared-use assets.

See Note 15, Leases, for more information.

**(n) Income Taxes**—In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require additional disclosures, primarily related to income taxes paid and the rate reconciliation table.

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The amendments require disclosures on specific categories in the rate reconciliation table, as well as additional information for reconciling items that meet a quantitative threshold. For income taxes paid, additional disclosures are required to disaggregate federal, state, and foreign income taxes paid, with additional disclosures for income taxes paid that meet a quantitative threshold. We adopted ASU No. 2023-09 on January 1, 2025, on a retroactive basis, with the required disclosures first included in our 2025 Annual Report on Form 10-K.

We follow the liability method in accounting for income taxes. Accounting guidance for income taxes requires the recording of deferred assets and liabilities to recognize the expected future tax consequences of events that have been reflected in our financial statements or tax returns and the adjustment of deferred tax balances to reflect tax rate changes. We are required to assess the likelihood that our deferred tax assets would expire before being realized. If we conclude that certain deferred tax assets are likely to expire before being realized, a valuation allowance would be established against those assets. GAAP requires that, if we conclude in a future period that it is more likely than not that some or all of the deferred tax assets would be realized before expiration, we reverse the related valuation allowance in that period. Any change to the allowance, as a result of a change in judgment about the realization of deferred tax assets, is reported in income tax expense.

ITCs associated with regulated operations are deferred and amortized over the life of the assets. PTCs are recognized in the period in which such credits are generated. The amount of the credit is based upon power production from our qualifying generation facilities. We are included in WEC Energy Group's consolidated federal and state income tax returns. In accordance with our tax allocation agreement with WEC Energy Group, we are allocated income tax payments and refunds based upon the benefit for loss method, where attributes are realized when WEC Energy Group is able to realize them.

We recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense in our income statements.

The IRA contains a tax credit transferability provision that allows us to sell PTCs and ITCs produced after December 31, 2022, to third parties. Under this transferability provision, WEC Energy Group entered into agreements to sell the majority of the PTCs and ITCs we generated in 2023, 2024, and 2025 to third parties. See Note 16, Income Taxes, for more information on the PTCs that were sold. WEC Energy Group has also entered into an agreement to sell the majority of PTCs that we expect to generate in 2026 to third parties. We elect to account for tax credits transferred under the scope of ASC 740. We include the discount from the sale of tax credits as a component of income tax expense. We also include any expected proceeds from the sale of tax credits in the evaluation of the realizability of deferred tax assets related to PTCs and ITCs. The sale of tax credits is presented in the operating activities section of the statements of cash flows consistent with the presentation of cash taxes paid.

In April 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. We adopted the safe harbor method of accounting on our 2023 tax return, which increased our deferred tax liabilities.

See Note 16, Income Taxes, for more information.

**(o) Fair Value Measurements**—Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods that result in management's best estimate of fair value. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs.

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Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. We primarily use a market approach for recurring fair value measurements and attempt to use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

When possible, we base the valuations of our derivative assets and liabilities on quoted prices for identical assets and liabilities in active markets. These valuations are classified in Level 1. The valuations of certain contracts not classified as Level 1 may be based on quoted market prices received from counterparties and/or observable inputs for similar instruments. Transactions valued using these inputs are classified in Level 2. Certain derivatives, such as FTRs, are categorized in Level 3 due to the significance of unobservable or internally-developed inputs. Our FTRs are valued using MISO auction prices.

See Note 17, Fair Value Measurements, for more information.

**(p) Derivative Instruments**—We use derivatives as part of our risk management program to manage the risks associated with the price volatility of purchased power, generation, and natural gas costs for the benefit of our customers. Our approach is non-speculative and designed to mitigate risk. Our regulated hedging programs are approved by the PSCW.

We record derivative instruments on our balance sheets as assets or liabilities measured at fair value, unless they qualify for the normal purchases and sales exception, and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, the PSCW allows the effects of fair value accounting to be offset to regulatory assets and liabilities.

We classify derivative assets and liabilities as current or long-term on our balance sheets based on the maturities of the underlying contracts. Cash flows from derivative activities are presented in the same category as the item being hedged within operating activities on our statements of cash flows.

Derivative accounting rules provide the option to present certain asset and liability derivative positions net on the balance sheets and to net the related cash collateral against these net derivative positions. We elected not to net these items. On our balance sheets, cash collateral provided to others is reflected in other current assets, and cash collateral received is reflected in other current liabilities. See Note 18, Derivative Instruments, for more information.

**(q) Guarantees**—We follow the guidance of the Guarantees Topic of the FASB ASC, which requires, under certain circumstances, that the guarantor recognize a liability for the fair value of the obligation undertaken in issuing the guarantee at its inception. As of December 31, 2025, we had $20.6 million of standby letters of credit issued by financial institutions for the benefit of third parties that have extended credit to us, which automatically renew each year unless proper termination notice is given. These amounts are not reflected on our balance sheets.

**(r) Employee Benefits**—The costs of pension and OPEB plans are expensed over the periods during which employees render service. These costs are distributed among WEC Energy Group's subsidiaries based on current employment status and actuarial calculations, as applicable. Our regulators allow recovery in rates for our net periodic benefit cost calculated under GAAP. See Note 19, Employee Benefits, for more information.

**(s) Customer Deposits and Credit Balances**—When utility customers apply for new service, they may be required to provide a deposit for the service. Customer deposits are recorded within other current liabilities on our balance sheets.

Utility customers can elect to be on a budget plan. Under this type of plan, a monthly installment amount is calculated based on estimated annual usage. During the year, the monthly installment amount is reviewed by comparing it to actual usage. If necessary, an adjustment is made to the monthly amount. Annually, the budget plan is reconciled to actual annual usage. Payments in excess of actual customer usage are recorded within other current liabilities on our balance sheets.

**(t) Environmental Remediation Costs**—We are subject to federal and state environmental laws and regulations that in the future may require us to pay for environmental remediation at sites where we have been, or may be, identified as a potentially responsible party. Loss contingencies may exist for the remediation of hazardous substances at various potential sites, including CCR

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landfills and manufactured gas plant sites. See Note 9, Asset Retirement Obligations, for more information regarding CCR landfills and Note 21, Commitments and Contingencies, for more information regarding manufactured gas plant sites.

We record environmental remediation liabilities when site assessments indicate remediation is probable, and we can reasonably estimate the loss or a range of losses. The estimate includes both our share of the liability and any additional amounts that will not be paid by other potentially responsible parties or the government. When possible, we estimate costs using site-specific information but also consider historical experience for costs incurred at similar sites. Remediation efforts for a particular site generally extend over a period of several years. During this period, the laws governing the remediation process may change, as well as site conditions, potentially affecting the cost of remediation.

We have received approval to defer certain environmental remediation costs, as well as estimated future costs, through a regulatory asset. The recovery of deferred costs is subject to the PSCW's approval.

We review our estimated costs of remediation annually for our manufactured gas plant sites and CCR landfills. We adjust the liabilities and related regulatory assets, as appropriate, to reflect the new cost estimates. Any material changes in cost estimates are adjusted throughout the year.

**(u) Customer Concentrations of Credit Risk**—The geographic concentration of our customers did not contribute significantly to our overall exposure to credit risk. We periodically review customers' credit ratings, financial statements, and historical payment performance and require them to provide collateral or other security as needed. Although we have a comprehensive credit evaluation process and contractual protections, it is possible that one or more counterparties could fail to perform their obligations, and we could recognize financial losses as a result. Our credit risk exposure is mitigated by our recovery mechanism for uncollectible expense discussed in Note 1(d), Operating Revenues. As a result, we did not have any significant concentrations of credit risk at December 31, 2025. In addition, there were no customers that accounted for more than 10% of our revenues for the year ended December 31, 2025.

**NOTE 2—ACQUISITIONS** 

In accordance with Topic 805: Clarifying the Definition of a Business (ASU 2017-01), transactions are evaluated and are accounted for as acquisitions of assets or businesses, and transaction costs are capitalized in asset acquisitions. It was determined that all of the below acquisitions met the criteria of asset acquisitions.

**Acquisitions of Electric Generation Facilities in Wisconsin**

In December 2025, we, along with WE and an unaffiliated utility, signed an agreement to acquire Whitetail, a wind-powered electric generation project with a total capacity of 67.2 MW. This project will be located in Grant County, Wisconsin. We will own 10% and our portion of the purchase price is expected to be approximately $22 million. The project is expected to close in late 2027 and it is expected to qualify for PTCs.

In April 2023, we, along with an unaffiliated utility, completed the acquisition of Red Barn, a commercially operational utility-scale wind-powered electric generating facility. The project is located in Grant County, Wisconsin and we own 82 MWs of this project. Our share of the cost of this project was $145.9 million. Red Barn qualifies for PTCs.

In January 2023, we, along with WE, completed the acquisition of Whitewater, a commercially operational 236.5 MW dual fueled (natural gas and low sulfur fuel oil) combined cycle electric generation facility in Whitewater, Wisconsin. Our share of the cost of this facility was $38.0 million for 50% of the capacity.

**NOTE 3—RELATED PARTIES**

We routinely enter into transactions with related parties, including WEC Energy Group, its other subsidiaries, ATC, and other affiliated entities.

We provide and receive services, property, and other items of value to and from our ultimate parent, WEC Energy Group, and other subsidiaries of WEC Energy Group pursuant to an AIA that became effective in 2017. The AIA was approved by the appropriate regulators, including the PSCW. In accordance with the AIA, WBS provides several categories of services to us (including financial, human resource, and administrative services). As required by FERC regulations for centralized service companies, WBS renders

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services at cost. Services provided by any regulated subsidiary of WEC Energy Group to another regulated subsidiary or WBS are provided at cost, and any services provided by a regulated subsidiary to a nonregulated subsidiary of WEC Energy Group are provided at the greater of cost or fair market value.

We provide services to WRPC under an operating agreement approved by the PSCW. We are also under a service agreement with WRPC where we are billed for services provided by WRPC. Services are billed to and from WRPC under these agreements at a fully allocated cost.

We pay ATC for transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. Services are billed to and from ATC under agreements approved by the PSCW, at each of our fully allocated costs. We are also required to initially fund the construction of transmission infrastructure upgrades needed for new generation projects. ATC owns these transmission assets and reimburses us for these costs when the new generation is placed in service.

Our balance sheets included the following receivables and payables for services provided to or received from ATC:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2025** | **December 31, 2024** |
| **Accounts receivable** | | |
| Services provided to ATC | $**0.9** | $0.5 |
| Amounts due from ATC for transmission infrastructure upgrades <sup>(1)</sup> | **3.5** | 7.9 |
| **Accounts payable** |  |  |
| Services received from ATC | **11.6** | 10.5 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The transmission infrastructure upgrades were primarily related to the construction of our renewable energy projects.

The following table shows activity associated with our related party transactions for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| **Transactions with WE** |  |  |  |
| Natural gas related sales to WE <sup>(1)</sup> | $**2.5** | $1 | $1.3 |
| Charges to WE for services and other items <sup>(2)</sup> | **34.4** | 12.8 | 11.3 |
| Charges from WE for services and other items <sup>(2)</sup> | **46.4** | 18.6 | 16.2 |
| **Transactions with WG** |  |  |  |
| Natural gas related sales to WG <sup>(1)</sup> | **—** | **—** | 1.4 |
| Charges to WG for services and other items <sup>(2)</sup> | **1.6** | 2.1 | 1.0 |
| Charges from WG for services and other items <sup>(2)</sup> | **0.9** | 0.8 | 0.7 |
| **Transactions with UMERC** |  |  |  |
| Natural gas related sales to UMERC <sup>(1)</sup> | **2.6** | 2.1 | 3.1 |
| Charges to UMERC for services and other items <sup>(2)</sup> | **5.4** | 5.1 | 2.2 |
| **Transactions with Bluewater** |  |  |  |
| Charges from Bluewater for storage service fees <sup>(3)</sup> | **12.1** | 14.1 | 12.1 |
| Charges from Bluewater for other operating fees <sup>(3)</sup> | **1.1** | 2.7 | 2.7 |
| Natural gas related sales to Bluewater <sup>(1)</sup> | **1.9** | 1.9 | 1.9 |
| **Transactions with WBS** |  |  |  |
| Charges to WBS for services and other items <sup>(2)</sup> | **13.7** | 7.7 | 13.1 |
| Charges from WBS for services and other items <sup>(2)</sup> | **69.1** | 60.5 | 55.6 |
| **Transactions with ATC** |  |  |  |
| Charges to ATC for services and construction | **11.0** | 9.2 | 9.3 |
| Charges from ATC for network transmission services | **141.1** | 126.0 | 114.2 |
| Net refund from ATC related to FERC ROE orders | **1.6** |  |  |
| **Transactions with WRPC** |  |  |  |
| Rental payments to WRPC <sup>(4)</sup> | **2.5** | 2.5 | 2.5 |
| Charges to WRPC for services | **0.4** | 0.3 | 0.4 |
| Charges from WRPC for services | **3.1** | 3.0 | 2.8 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes amounts related to the sale of natural gas and/or pipeline capacity.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes amounts charged for services, pass through costs, asset and liability transfers, and other items in accordance with the approved AIA.

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<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>We have a long-term service agreement with a wholly owned subsidiary of Bluewater that was previously approved by the PSCW. Bluewater owns natural gas storage facilities in Michigan and provides a portion of our current storage needs.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>We have an agreement with WRPC whereby we receive 50% of the energy generated from its hydroelectric power generation facilities.

**NOTE 4—OPERATING REVENUES**

For more information about our significant accounting policies related to operating revenues, see Note 1(d), Operating Revenues.

**Disaggregation of Operating Revenues** 

The following tables present our operating revenues disaggregated by revenue source for our utility segment. We do not have any revenues associated with our other segment. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. Revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations has different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions.

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| **Wisconsin Public Service Corporation** |  |  |  |
| Electric utility | $**1432.9** | $1245.2 | $1309.9 |
| Natural gas utility | **400.5** | 315.2 | 368.0 |
| **Total revenues from contracts with customers** | **1833.4** | 1560.4 | 1677.9 |
| Other operating revenues | **3.5** |  | 3.5 |
| **Total operating revenues** | $**1836.9** | $1560.4 | $1681.4 |

---

***Revenues from Contracts with Customers***

**Electric Utility Operating Revenues**

The following table disaggregates electric utility operating revenues into customer class:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| Residential | $**529.7** | $460.1 | $479.9 |
| Small commercial and industrial | **470.4** | 421.7 | 445.9 |
| Large commercial and industrial | **294.4** | 256.2 | 273.1 |
| Other | **8.7** | 8.5 | 8.7 |
| **Total retail revenues** | **1303.2** | 1146.5 | 1207.6 |
| Wholesale | **59.8** | 57.1 | 79.2 |
| Resale | **54.3** | 29.8 | 17.8 |
| Other utility revenues | **15.6** | 11.8 | 5.3 |
| **Total electric utility operating revenues** | $**1432.9** | $1245.2 | $1309.9 |

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**Natural Gas Utility Operating Revenues** 

The following table disaggregates natural gas utility operating revenues into customer class:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| Residential | $**239.7** | $185.5 | $219.8 |
| Commercial and industrial | **143.9** | 99.1 | 124.2 |
| **Total retail revenues** | **383.6** | 284.6 | 344.0 |
| Transportation | **28.0** | 22.5 | 22.3 |
| Other utility revenues <sup>(1)</sup> | **(11.1)** | 8.1 | 1.7 |
| **Total natural gas utility operating revenues** | $**400.5** | $315.2 | $368.0 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes the revenues subject to our purchased gas recovery mechanism, which fluctuate based on actual natural gas costs incurred, compared with the recovery of natural gas costs that were anticipated in rates.

***Other Operating Revenues***

Other operating revenues consist of the following:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| Late payment charges | $**3.1** | $3.3 | $3.9 |
| Rental revenues | **0.4** | 0.4 | 0.3 |
| Alternative revenues <sup>(1)</sup> | **—** | (3.7) | (0.7) |
| **Total other operating revenues** | $**3.5** | $— | $3.5 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Alternative revenues consist of amounts to be recovered or refunded to customers subject to wholesale true-ups. Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. For more information about our alternative revenues, see Note 1(d), Operating Revenues.

**NOTE 5—CREDIT LOSSES**

The table below shows our gross third-party receivable balances and related allowance for credit losses.

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **December 31, 2025** | **December 31, 2024** |
| Accounts receivable and unbilled revenues | $**301.7** | $233.7 |
| Allowance for credit losses | **7.8** | 8.6 |
| **Accounts receivable and unbilled revenues, net** <sup>(1)</sup>  | $**293.9** | $225.1 |
| Total accounts receivable, net – past due greater than 90 days <sup>(1)</sup> | $**6.3** | $7.4 |
| Past due greater than 90 days – collection risk mitigated by regulatory mechanisms <sup>(1)</sup> | **95.7%** | 93.9% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Our exposure to credit losses for certain regulated utility customers is mitigated by a regulatory mechanism we have in place. Specifically, our residential tariffs include a mechanism for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates. As a result, at December 31, 2025, $169.0 million, or 57.5%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

A rollforward of the allowance for credit losses is included below:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| Balance at January 1 | $**8.6** | $10.9 | $11.7 |
| Provision for credit losses | **17.4** | 7.8 | 5.6 |
| Provision for credit losses deferred for future recovery or refund | **(7.8)** | 0.8 | 3.3 |
| Write-offs charged against the allowance | **(15.1)** | (15.5) | (14.9) |
| Recoveries of amounts previously written off | **4.7** | 4.6 | 5.2 |
| **Balance at December 31** | $**7.8** | $8.6 | $10.9 |

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The allowance for credit losses decreased during the year ended December 31, 2025, largely driven by customer write-offs in addition to a decrease in past due account balances that we believe was related to a continued focus on collection efforts and lower energy bills in the spring and summer months, enabling customers to pay down their arrears. After a customer is disconnected for a period of time without payment on their account, we will write off that customer balance.

The allowance for credit losses decreased during the year ended December 31, 2024, largely driven by increased customer write-offs. We also believe that the lower energy costs that customers were seeing, which were driven by warmer than normal weather conditions during most of 2024 and low average natural gas prices, contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses.

The allowance for credit losses decreased during the year ended December 31, 2023, primarily related to lower customer energy costs (driven by the warmer weather during the fourth quarter of 2023 when compared to the same quarter in 2022 and lower natural gas prices), which contributed to a reduction in past due accounts receivable balances and a related decrease in the allowance for credit losses. Customer write-offs also contributed to the decrease in the allowance for credit losses.

**NOTE 6—REGULATORY ASSETS AND LIABILITIES** 

The following regulatory assets were reflected on our balance sheets as of December 31:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **See Note** |
| **Regulatory assets** <sup>(1) (2)</sup> |  |  |  |
| Environmental remediation costs <sup>(3)</sup> | $**133.5** | $114.0 | 21 |
| Plant retirement related items <sup>(4)</sup> | **122.9** | 143.6 |  |
| Income tax related items | **59.3** | 55.1 | 16 |
| AROs | **49.1** | 27.5 | 1(k), 9 |
| Pension and OPEB costs <sup>(5)</sup> | **19.8** | 45.6 | 19, 23 |
| Electric transmission costs <sup>(6)</sup> | **15.4** | 0.4 |  |
| Finance and operating leases | **10.2** | 7.5 | 15 |
| Bluewater <sup>(7)</sup> | **8.7** | 13.4 |  |
| Reactive power <sup>(8)</sup> | **6.7** | 13.4 |  |
| Uncollectible expense | **1.9** | 9.7 | 5 |
| Other, net | **18.7** | 19.5 |  |
| **Total regulatory assets** | $**446.2** | $449.7 |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Based on prior and current rate treatment, we believe it is probable that we will continue to recover from customers the regulatory assets in this table. In accordance with GAAP, our regulatory assets do not include the allowance for ROE that is capitalized for regulatory purposes. This allowance was $3.9 million and $5.8 million at December 31, 2025 and 2024, respectively.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>As of December 31, 2025, we had $44.1 million of regulatory assets not earning a return. The regulatory assets not earning a return primarily relate to certain environmental remediation costs and electric transmission costs. The other regulatory assets in the table either earn a return at our weighted average cost of capital or the cash has not yet been expended, in which case the regulatory assets are offset by liabilities.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>As of December 31, 2025, we had made cash expenditures of $28.8 million related to these environmental remediation costs. The remaining $104.7 million represents our estimated future cash expenditures.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Primarily represents the net book value of power plants we have both abandoned and retired. For all of these plants, we have approval to collect a return of and on their remaining net book value. These regulatory assets are amortized on a straight-line basis, using the composite depreciation rates approved before the plants were retired, and the amortization is included in depreciation and amortization in the income statement.

<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Primarily represents the impact of escrow accounting treatment for our pension and OPEB costs. Also included in this amount are the unrecognized future pension and OPEB costs related to our defined benefit pension and OPEB plans, which we are authorized recovery of over the average remaining service life of each plan.

<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup>In accordance with the PSCW's approval of escrow accounting for our ATC and MISO network transmission expenses, we defer as a regulatory asset or liability the difference between actual transmission costs and those included in rates until recovery or refund is authorized in a future rate proceeding.

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<sup>(7)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Primarily relates to costs associated with our long-term service agreement with Bluewater for natural gas storage services. The PSCW has approved escrow accounting for these costs. As a result, we defer as a regulatory asset or liability the difference between actual storage costs and those included in rates until recovery or refund is authorized in a future rate proceeding.

<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup>In January 2023, the FERC issued an order that eliminated the reactive power reimbursement from MISO, retroactive to December 1, 2022. Due to this FERC order, in August 2023, the PSCW approved the deferral of the previously reimbursed transmission expenses from December 1, 2022 through December 31, 2024. We are recovering this regulatory asset over a period of two years that began on January 1, 2025. As of January 1, 2025, these transmission expenses are included in our base rates.

The following regulatory liabilities were reflected on our balance sheets as of December 31:

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| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **See Note** |
| **Regulatory liabilities** |  |  |  |
| Income tax related items | $**305.9** | $322.0 | 16 |
| Removal costs <sup>(1)</sup> | **219.4** | 206.6 |  |
| Pension and OPEB benefits <sup>(2)</sup> | **85.7** | 88.6 | 19, 23 |
| Energy costs refundable through rate adjustments | **11.4** | 49.2 | 1(d) |
| Derivatives | **8.3** | 8.0 | 1(p) |
| Other, net | **24.1** | 22.2 |  |
| **Total regulatory liabilities** | $**654.8** | $696.6 |  |
| **Balance sheet presentation** |  |  |  |
| Other current liabilities | $**11.4** | $0.3 |  |
| Regulatory liabilities | **643.4** | 696.3 |  |
| **Total regulatory liabilities** | $**654.8** | $696.6 |  |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents amounts collected from customers to cover the future cost of property, plant, and equipment removals that are not legally required. Legal obligations related to the removal of property, plant, and equipment are recorded as AROs. See Note 9, Asset Retirement Obligations, for more information on our legal obligations.

<sup>(2) &nbsp;&nbsp;&nbsp;&nbsp;</sup>Primarily represents the unrecognized future pension and OPEB benefits related to our defined benefit pension and OPEB plans. We will amortize these regulatory liabilities into net periodic benefit cost over the average remaining service life of each plan.

**NOTE 7—PROPERTY, PLANT, AND EQUIPMENT**

Property, plant, and equipment consisted of the following at December 31:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Electric – generation | $**3745.9** | $3164.0 |
| Electric – distribution | **2730.2** | 2516.5 |
| Natural gas – distribution, storage, and transmission | **1405.9** | 1328.0 |
| Property, plant, and equipment to be retired, net | **—** | 248.9 |
| Other | **543.4** | 553.7 |
| Less: Accumulated depreciation | **2314.8** | 1999.9 |
| Net | **6110.6** | 5811.2 |
| CWIP | **433.4** | 269.8 |
| Net property, plant, and equipment | **6544.0** | 6081.0 |
| Property under finance leases | **73.0** | 62.3 |
| Less: Accumulated amortization | **5.4** | 4.1 |
| Net leased facilities | **67.6** | 58.2 |
| **Total property, plant, and equipment** | $**6611.6** | $6139.2 |

---

*2025 Form 10-K* 70 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**Severance Liability for Plant Retirements**

We have severance liabilities related to Columbia Units 1 and 2 recorded in other current and other long-term liabilities on our balance sheets. Activity related to these severance liabilities for the years ended December 31 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |  | **2023** |
| Severance liability at January 1 | $**2.2** | $2.7 |  | $2.7 |
| Severance expense | **—** | (0.5) | <sup>(1)</sup> |  |
| **Total severance liability at December 31** | $**2.2** | $2.2 |  | $2.7 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The severance accrual was lowered in 2024 due to workforce realignment efforts.

**Columbia Energy Center Units 1 and 2**

As a result of a MISO ruling received in June 2021, retirement of the jointly-owned Columbia Units 1 and 2 became probable. Through June 30, 2025, Columbia Units 1 and 2 were expected to be retired by the end of 2029 and, therefore, met the criteria to be considered probable of abandonment.

In conjunction with WEC Energy Group's new capital plan (which includes us), we and the other co-owners currently plan to continue coal operations at Columbia Units 1 and 2 through at least 2029, and continue to evaluate the conversion of both units to natural gas. As a result, we and the other co-owners concluded that Columbia Units 1 and 2 (net book value of our ownership share of Columbia Units 1 and 2 was $236.8 million at December 31, 2025, which does not include deferred taxes) no longer meet the criteria necessary to be considered probable of abandonment.

At December 31, 2025, these units continue to be included in rate base, and we continue to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW.

**NOTE 8—JOINTLY-OWNED UTILITY FACILITIES**

We hold joint ownership interests in certain electric generating facilities. We are entitled to our share of generating capability and output of each facility equal to our respective ownership interest. We have supplied our own financing for all jointly owned projects. We pay our ownership share of additional construction costs, fuel inventory purchases, and operating expenses, unless specific agreements have been executed to limit our maximum exposure to additional costs. We record our proportionate share of significant jointly owned electric generating facilities as property, plant, and equipment on the balance sheets. In addition, our proportionate share of direct expenses for the joint operation of these plants is recorded within operating expenses in the income statements.

Information related to jointly owned utility facilities in-service at December 31, 2025 was as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Jointly-Owned Utility Facilities** | **Ownership** | **Share of Capacity (MW)** | **In-Service /Acquisition Date** | **Operating Owner** | **Property, Plant, and Equipment** | **Accumulated Depreciation** | **CWIP** |
| ***(in millions, except for percentages and MW)*** | ***(in millions, except for percentages and MW)*** | | | | | | |
| Weston Unit 4 <sup>(1)</sup> | **70.0%** | **379.8** | **2008** | **WPS** | $**600.6** | $**(242.7)** | $**4.5** |
| Columbia Units 1 and 2 <sup>(1)</sup>  | **27.5%** | **306.2** | **1975 & 1978** | **WPL** | **439.1** | **(201.6)** | **5.0** |
| Forward Wind <sup>(2)</sup> | **44.6%** | **61.5** | **2008** | **WPS** | **120.3** | **(63.3)** | **13.9** |
| Two Creeks <sup>(3)</sup> | **66.7%** | **100.0** | **2020** | **WPS** | **135.7** | **(22.9)** | **—** |
| Badger Hollow I <sup>(3)</sup> | **66.7%** | **100.0** | **2021** | **WPS** | **146.0** | **(19.0)** | **—** |
| Red Barn <sup>(2)</sup> | **90.0%** | **82.4** | **2023** | **WPS** | **150.7** | **(12.8)** | **—** |
| Weston RICE units <sup>(1)</sup> | **50.0%** | **65.0** | **2023** | **WPS** | **92.0** | **(7.4)** | **—** |
| Whitewater <sup>(1)</sup> | **50.0%** | **117.2** | **2023** | **WE** | **126.7** | **(98.3)** | **12.8** |
| Paris Solar <sup>(3)</sup> | **15.0%** | **30.0** | **2024** | **WE** | **59.0** | **(1.8)** | **—** |
| Paris Battery | **15.0%** | **16.5** | **2025** | **WE** | **39.0** | **(0.9)** | **—** |
| Darien Solar <sup>(3)</sup> | **15.0%** | **37.5** | **2025** | **WE** | **75.9** | **(1.8)** | **—** |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Capacity is based on rated capacity, which is the net power output under average operating conditions with equipment in an average state of repair as of a given month in a given year. Values are primarily based on the net dependable expected capacity ratings for summer 2026

*2025 Form 10-K* 71 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

established by tests and may change slightly from year to year. The summer period is the most relevant for capacity planning purposes. This is a result of continually reaching demand peaks in the summer months, primarily due to air conditioning demand.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Capacity for wind generating facilities is based on nameplate capacity, which is the amount of energy a turbine should produce at optimal wind speeds.

<sup>(3) &nbsp;&nbsp;&nbsp;&nbsp;</sup>Capacity for solar generating facilities is based on nameplate capacity, which is the maximum output that a generator should produce at continuous full power.

Information related to jointly owned utility facilities approved by the PSCW at December 31, 2025 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Jointly-Owned Utility Facilities** | **Ownership** | **Share of Capacity (MW)** | **Date of Expected In-Service** | **CWIP** |
| ***(in millions, except for percentages and MW)*** | ***(in millions, except for percentages and MW)*** | | | |
| Koshkonong Solar | **15.0%** | **45.0** | **2026** | $**76.4** |
| Koshkonong Battery | **15.0%** | **24.8** | **2027** | **25.0** |
| Darien Battery | **15.0%** | **11.3** | **2027** | **11.4** |
| High Noon Solar | **15.0%** | **45.0** | **2027** | **67.1** |
| High Noon Battery | **15.0%** | **24.8** | **2027** | **25.1** |
| Ursa Solar Electric Generation Facility | **10.0%** | **20.0** | **2027** | **6.3** |
| Saratoga Solar | **10.0%** | **15.0** | **2028** | **4.4** |
| Saratoga Battery | **10.0%** | **5.0** | **2028** | **5.9** |
| Badger Hollow Wind Energy Generation Facility | **10.0%** | **11.1** | **2027** | **5.6** |
| Whitetail | **10.0%** | **6.7** | **2027** | **1.0** |

---

**NOTE 9—ASSET RETIREMENT OBLIGATIONS**

We have recorded AROs primarily for asbestos abatement at certain generation facilities, office buildings, and service centers; the dismantling of solar and wind generation projects; the removal and dismantlement of a battery storage facility; the disposal of polychlorinated biphenyls-contaminated transformers; and the closure of CCR landfills at certain generation facilities. We establish regulatory assets and liabilities to record the differences between ongoing expense recognition under the ARO accounting rules and the ratemaking practices for retirement costs authorized by the PSCW.

The following table shows changes to our AROs during the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |  | **2023** |
| Balance as of January 1 | $**191.2** | $56.7 |  | $55.1 |
| Accretion | **9.3** | 5.3 |  | 2.1 |
| Additions | **4.4** | 140.1 | <sup>(1)</sup> | 2.2 |
| Revisions to estimated cash flows | **3.5** | (5.6) |  | 1.6 |
| Liabilities settled | **(2.6)** | (5.3) |  | (4.3) |
| **Balance as of December 31** | $**205.8** | $191.2 |  | $56.7 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>AROs increased primarily as a result of AROs being recorded related to the new EPA CCR Rule that was enacted in April 2024. See Note 21, Commitments and Contingencies, for more information.

**NOTE 10—GOODWILL AND INTANGIBLE ASSETS**

**Goodwill**

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. We had no changes to the carrying amount of goodwill during the years ended December 31, 2025 and 2024. We had no accumulated impairment losses related to our goodwill as of December 31, 2025.

During the third quarter of 2025, we completed our annual goodwill impairment test for goodwill we carried as of July 1, 2025. No impairment resulted from this test.

*2025 Form 10-K* 72 *Wisconsin Public Service Corporation*

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**Other Indefinite-Lived Intangible Assets**

At December 31, 2025 and 2024, we had $5.3 million of other indefinite-lived intangible assets included in other long-term assets on our balance sheets. These assets consist of spectrum frequencies, which enable us to transmit data and voice communications over a wavelength dedicated to us throughout our service territory.

**NOTE 11—COMMON EQUITY**

**Stock-Based Compensation**

The following table summarizes our pre-tax stock-based compensation expense, including amounts allocated from WBS, and the related tax benefit recognized in income for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |  |
| Stock options | $**0.7** | $0.8 | $1.0 |  |
| Restricted stock | **1.1** | 1.3 | 1.1 |  |
| Performance units | **7.1** | 4.8 | (0.4) | <sup>(1)</sup> |
| Stock-based compensation expense | $**8.9** | $6.9 | $1.7 |  |
| Related tax benefit | $**2.4** | $1.9 | $0.5 |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The reduction in expense was due to a decrease in the fair value of the outstanding performance units.

Stock-based compensation costs capitalized during 2025, 2024, and 2023 were not significant.

***Stock Options***

The following is a summary of our employees' WEC Energy Group stock option activity during 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Stock Options** | **Number of Options** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Life**<br>***(in years)*** | **Aggregate Intrinsic Value**<br>***(in millions)*** |
| Outstanding as of January 1, 2025 | 73284 | $88.54 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | **10117** | **94.55** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | **(18658)** | **85.90** |  |  |
| **Outstanding as of December 31, 2025** | **64743** | **90.24** | **6.3** | $**1.0** |
| **Exercisable as of December 31, 2025** | **33818** | **89.62** | **4.7** | $**0.5** |

---

The aggregate intrinsic value of outstanding and exercisable options in the above table represents the total pre-tax intrinsic value that would have been received by the option holders had they exercised all of their options on December 31, 2025. This is calculated as the difference between WEC Energy Group's closing stock price on December 31, 2025, and the option exercise price, multiplied by the number of in-the-money stock options. The intrinsic value of options exercised during the years ended December 31, 2025 and 2024 was $0.4 million and $0.3 million, respectively. No stock options were exercised by our employees during the year ended December 31, 2023. Cash received by WEC Energy Group from exercises of its options by our employees was $1.6 million and $1.1 million during the years ended December 31, 2025 and 2024, respectively. The tax benefit from option exercises for the same years was approximately $0.1 million each year. These amounts do not account for the compensation limitations under Internal Revenue Code Section 162(m).

As of December 31, 2025, we expected to recognize approximately $0.2 million of unrecognized compensation cost related to unvested and outstanding WEC Energy Group stock options over the next 1.7 years on a weighted-average basis.

During the first quarter of 2026, the Compensation Committee awarded 12,992 non-qualified WEC Energy Group stock options with an exercise price of $106.09 and a weighted-average grant date fair value of $21.20 per option to certain of our officers and other key employees under its normal schedule of awarding long-term incentive compensation.

*2025 Form 10-K* 73 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

***Restricted Shares***

The following is a summary of our employees' WEC Energy Group restricted stock activity during 2025:

---

| | | |
|:---|:---|:---|
| **Restricted Shares** | **Number of Shares** | **Weighted-Average Grant Date Fair Value** |
| Outstanding and unvested as of January 1, 2025 | 3977 | $88.39 |
| &nbsp;&nbsp;&nbsp;Granted | **2501** | **94.55** |
| &nbsp;&nbsp;&nbsp;Released | **(1769)** | **90.13** |
| **Outstanding and unvested as of December 31, 2025** | **4709** | **91.01** |

---

The intrinsic value of WEC Energy Group restricted stock held by our employees that was released was $0.2 million for the year ended December 31, 2025 and $0.1 million for each of the years ended December 31, 2024 and 2023. The tax benefit from released restricted shares for the same years was not significant.

As of December 31, 2025, we expected to recognize approximately $0.9 million of unrecognized compensation cost related to unvested and outstanding WEC Energy Group restricted stock over the next 1.7 years on a weighted-average basis.

During the first quarter of 2026, the Compensation Committee awarded 2,700 WEC Energy Group restricted shares to our officers and other key employees under its normal schedule of awarding long-term incentive compensation. The grant date fair value of these awards was $106.09 per share.

***Performance Units***

During 2025, 2024, and 2023, the Compensation Committee awarded 8,144; 9,061; and 6,905 WEC Energy Group performance units, respectively, to our officers and other key employees under the WEC Energy Group Performance Unit Plan.

Performance units with an intrinsic value of $0.7 million, $0.1 million, and $0.4 million were settled during 2025, 2024, and 2023, respectively. The actual tax benefit from the distribution of performance units for the years ended December 31, 2025 and 2023 was $0.1 million each year. For the year ended December 31, 2024, the tax benefit from the distribution of performance units was not significant.

At December 31, 2025, our employees held 24,492 WEC Energy Group performance units, including dividend equivalents. A liability of $2.8 million was recorded on our balance sheet at December 31, 2025 related to these outstanding units. As of December 31, 2025, we expected to recognize approximately $5.9 million of unrecognized compensation cost related to unvested and outstanding WEC Energy Group performance units over the next 1.7 years on a weighted-average basis.

During the first quarter of 2026, performance units held by our employees with an intrinsic value of $1.3 million were settled. The tax benefit from the distribution of these awards was $0.3 million. This amount and the tax benefits disclosed above do not account for the compensation limitations under Internal Revenue Code Section 162(m). In January 2026, the Compensation Committee also awarded 8,793 WEC Energy Group performance units to our officers and other key employees under its normal schedule of awarding long-term incentive compensation.

**Restrictions**

Various financing arrangements and regulatory requirements impose certain restrictions on our ability to transfer funds to the sole holder of our common stock, Integrys, in the form of cash dividends, loans, or advances. In addition, Wisconsin law prohibits us from making loans to or guaranteeing obligations of WEC Energy Group, Integrys, or their subsidiaries.

In accordance with our most recent rate order, we may not pay common dividends above the test year forecasted amount reflected in our rate case, if it would cause our average common equity ratio, on a financial basis, to fall below our authorized level of 53.0%. A return of capital in excess of the test year amount can be paid by us at the end of the year provided that our average common equity ratio does not fall below the authorized level.

See Note 13, Short-Term Debt and Lines of Credit, for a discussion of certain financial covenants related to our short-term debt obligations.

*2025 Form 10-K* 74 *Wisconsin Public Service Corporation*

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As of December 31, 2025, our restricted retained earnings totaled $885 million. Our equity in undistributed earnings of investees accounted for by the equity method was approximately $13 million.

We do not believe that these restrictions will materially affect our operations or limit any dividend payments in the foreseeable future.

**NOTE 12—PREFERRED STOCK**

We have 1,000,000 shares of preferred stock with a $100 par value authorized for issuance, of which none were issued and outstanding at December 31, 2025 and 2024.

**NOTE 13—SHORT-TERM DEBT AND LINES OF CREDIT**

The following table shows our short-term borrowings and their corresponding weighted-average interest rates as of December 31:

---

| | | |
|:---|:---|:---|
| ***(in millions, except percentages)*** | **2025** | **2024** |
| **Commercial paper** |  |  |
| Amount outstanding at December 31 | $**159.5** | $62.0 |
| Average interest rate on amounts outstanding at December 31 | **3.90%** | 4.52% |

---

Our average amount of commercial paper borrowings based on daily outstanding balances during 2025 was $63.7 million, with a weighted-average interest rate during the period of 4.29%.

We have entered into a bank back-up credit facility to maintain short-term credit liquidity which, among other terms, requires us to maintain, subject to certain exclusions, a total funded debt to capitalization ratio of 65% or less. As of December 31, 2025, we were in compliance with this ratio.

The information in the table below relates to our revolving credit facility used to support our commercial paper borrowing program, including remaining available capacity under this facility as of December 31:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **Maturity** | **2025** |
| Revolving credit facility <sup>(1)</sup> | August 2030 | $**450.0** |
| **Less:** |  |  |
| Letters of credit issued inside credit facility |  | **1.3** |
| Commercial paper outstanding |  | **159.5** |
| **Available capacity under existing agreement** |  | $**289.2** |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>In August 2025, we increased our credit facility to $450.0 million and extended the maturity to August 2030.

This facility has a renewal provision for two extensions, subject to lender approval. Each extension is for a period of one year.

Our bank back-up credit facility contains customary covenants, including certain limitations on our ability to sell assets. The credit facility also contains customary events of default, including payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy proceedings, certain judgments, Employee Retirement Income Security Act of 1974 defaults and change of control.

*2025 Form 10-K* 75 *Wisconsin Public Service Corporation*

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**NOTE 14—LONG-TERM DEBT**

The following table is a summary of our long-term debt outstanding as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(in millions)*** | **Interest Rate** | **Year Due** | **2025** | **2024** |
| Senior Notes (unsecured) | 5.35% | N/A | $**—** | $300.0 |
|  | 6.08% | 2028 | **50.0** | 50.0 |
|  | 4.55% | 2029 | **300.0** | 300.0 |
|  | 5.55% | 2036 | **125.0** | 125.0 |
|  | 3.671% | 2042 | **300.0** | 300.0 |
|  | 4.752% | 2044 | **450.0** | 450.0 |
|  | 3.30% | 2049 | **300.0** | 300.0 |
|  | 2.85% | 2051 | **450.0** | 450.0 |
| **Total** |  |  | **1975.0** | 2275.0 |
| Unamortized debt issuance costs |  |  | **(14.3)** | (15.4) |
| Unamortized discount, net |  |  | **(1.4)** | (1.6) |
| **Total long-term debt, including current portion** |  |  | **1959.3** | 2258.0 |
| Current portion of long-term debt |  |  | **—** | (300.0) |
| **Total long-term debt** |  |  | $**1959.3** | $1958.0 |

---

We amortize debt premiums, discounts, and debt issuance costs over the life of the debt using the straight-line method and we include the costs in interest expense.

In November 2025, our $300.0 million of 5.35% Senior Notes, due November 10, 2025, matured, and outstanding principal and accrued interest were paid with proceeds received from issuing commercial paper.

In January 2026, we issued $300.0 million of 4.25% Senior Notes, due January 15, 2031, and used the net proceeds to repay short-term debt and for other general corporate purposes.

The following table shows the future maturities of our long-term debt outstanding as of December 31, 2025:

---

| | |
|:---|:---|
| ***(in millions)*** | **Payments** |
| 2026 | $— |
| 2027 |  |
| 2028 | 50.0 |
| 2029 | 300.0 |
| 2030 |  |
| Thereafter | 1625.0 |
| **Total** | $1975.0 |

---

Our long-term debt obligations contain covenants related to payment of principal and interest when due and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.

**NOTE 15—LEASES**

**Obligations Under Finance Leases**

In accordance with ASC Subtopic 980-842, Regulated Operations – Leases (Subtopic 980-842), the timing of expense recognition associated with our finance leases is modified to conform to the rate treatment. Amortization of the right-of-use asset is modified so that the total of the imputed interest and amortization costs equals the lease expense that is allowed for rate-making purposes. The difference between the lease expense that is allowed for rate-making purposes and the unadjusted lease expense calculated under Topic 842 is deferred as a regulatory asset on our balance sheets in accordance with Subtopic 980-842.

*2025 Form 10-K* 76 *Wisconsin Public Service Corporation*

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***Land Leases – Utility Solar Generation***

We have various land leases related to our investments in utility solar generation. Each lease has an initial term and one or more optional extensions. We expect the optional extensions to be exercised, and, as a result, all of the land leases are being amortized over an extended term which can range from 40 to 50 years. Once a solar project achieves commercial operation, the lease liability is remeasured to reflect the final total acres being leased. Our payments related to these leases are being recovered through rates.

**Amounts Recognized in the Financial Statements and Other Information**

Lease expense and cash payments related to our finance leases were not significant in 2025, 2024, or 2023. Other information related to these leases for the years ended December 31 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Other information *(in millions)*** | **2025** | **2024** | **2023** |
| Non-cash activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right of use assets obtained in exchange for finance lease liabilities <sup>(1)</sup> | $**10.9** | $15.5 | $6.6 |
| Weighted-average remaining lease term | **48.2 years** | 48.8 years | 48.4 years |
| Weighted-average discount rate <sup>(2)</sup> | **5.3%** | 5.1% | 4.3% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts are net of any reductions to right of use assets and finance lease liabilities resulting from remeasurements.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Because these leases do not provide an implicit rate of return, we used an estimate of the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments.

The following table summarizes our finance lease right of use assets and obligations at December 31:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **Balance Sheet Location** |
| **Right of use assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance lease right of use assets, net <sup>(1)</sup> | $**67.6** | $58.2 | Property, plant, and equipment, net |
| **Lease obligations** |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term finance lease liabilities | $**77.8** | $65.7 | Finance lease obligations |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts are net of accumulated amortization of $5.4 million and $4.1 million at December 31, 2025 and 2024, respectively.

Future minimum lease payments under our finance leases and the present value of our net minimum lease payments as of December 31, 2025, were as follows:

---

| | |
|:---|:---|
| ***(in millions)*** | **Total Finance Leases** |
| 2026 | $2.1 |
| 2027 | 2.9 |
| 2028 | 3.2 |
| 2029 | 3.3 |
| 2030 | 3.4 |
| Thereafter | 243.0 |
| Total minimum lease payments | 257.9 |
| Less: Interest | (180.1) |
| Present value of minimum lease payments | 77.8 |
| Less: Short-term lease liabilities |  |
| **Long-term lease liabilities** | $77.8 |

---

As of February 20, 2026, we have not entered into any material leases that have not yet commenced.

*2025 Form 10-K* 77 *Wisconsin Public Service Corporation*

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**NOTE 16—INCOME TAXES**

We adopted the new disclosure provisions of ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, effective January 1, 2025. See Note 1(n), Income Taxes, for more information on the adoption of this ASU.

**Income Tax Expense**

The following table is a summary of the components of income tax expense for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| Current tax expense (benefit) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $**16.4** | $(5.5) | $12.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **13.5** | 4.5 | 5.5 |
| Deferred income taxes, net |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | **25.7** | 36.7 | 28.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **14.8** | 19.5 | 20.0 |
| ITCs, net | **(3.6)** | (3.6) | (3.8) |
| **Total income tax expense** | $**66.8** | $51.6 | $62.7 |

---

**Statutory Rate Reconciliation**

The provision for income taxes for each of the years ended December 31 differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
|<br>***(in millions)*** | **Amount** | **Effective Tax Rate** | **Amount** | **Effective Tax Rate** | **Amount** | **Effective Tax Rate** |
| Income before income taxes | $**360.4** |  | $304.5 |  | $322.9 |  |
| US federal statutory income tax rate | $**75.7** | **21.0%** | $63.9 | 21.0% | $67.8 | 21.0% |
| State and local income taxes net of federal tax effect <sup>(1)</sup> | **22.4** | **6.2%** | 18.9 | 6.2% | 20.2 | 6.3% |
| Tax credits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PTCs, net <sup>(2)</sup> | **(20.5)** | **(5.7)%** | (17.1) | (5.6)% | (14.4) | (4.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp; ITCs, net <sup>(3)</sup> | **(3.6)** | **(1.0)%** | (3.6) | (1.2)% | (3.8) | (1.2)% |
| Nontaxable or nondeductible items |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | **(0.4)** | **(0.1)%** | (1.3) | (0.4)% | (0.9) | (0.3)% |
| Other adjustments |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal excess deferred tax amortization <sup>(4)</sup>  | **(10.4)** | **(2.9)%** | (5.7) | (1.9)% | (9.5) | (3.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other, net | **3.6** | **1.0%** | (3.5) | (1.2)% | 3.3 | 1.1% |
| **Total income tax expense** | $**66.8** | **18.5%** | $51.6 | 16.9% | $62.7 | 19.4% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>State taxes in Wisconsin made up the majority of the tax effect in this category.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>PTCs are an inflation adjusted US federal income tax credit for each kilowatt hour of electricity generated by certain renewable energy projects.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>ITCs are tax incentives that allow us to deduct a certain percentage of our capital investment cost of certain renewable projects. ITCs are deferred and amortized over the life of the assets.

<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The Tax Cuts and Jobs Act of 2017 required us to remeasure our deferred income taxes and we began to amortize the resulting excess deferred income taxes beginning in 2018, in accordance with normalization requirements. The decrease in income tax expense related to the amortization of the deferred tax benefits is offset by a decrease in revenue as the benefits are returned to customers, resulting in no impact on net income.

*2025 Form 10-K* 78 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**Deferred Income Tax Assets and Liabilities** 

The components of deferred income taxes as of December 31 were as follows:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| **Deferred tax assets** |  |  |
| Tax gross up – regulatory items | $**89.3** | $89.4 |
| Future tax benefits | **18.7** | 4.8 |
| Other | **22.7** | 21.9 |
| **Total deferred tax assets** | $**130.7** | $116.1 |
| **Deferred tax liabilities** |  |  |
| Property-related | **1041.2** | 986.7 |
| Employee benefits and compensation | **75.3** | 70.5 |
| Other | **48.4** | 55.8 |
| **Total deferred tax liabilities** | **1164.9** | 1113.0 |
| **Deferred tax liability, net** | $**1034.2** | $996.9 |

---

Consistent with ratemaking treatment, deferred taxes in the table above are offset for temporary differences that have related regulatory assets and liabilities.

The components of net deferred tax assets associated with federal tax benefit carryforwards as of December 31, 2025 and 2024 are summarized in the tables below:

---

| | | | |
|:---|:---|:---|:---|
| **2025 *(in millions)*** | **Gross Value** | **Deferred Tax Effect** | **Earliest Year of Expiration** |
| **Future tax benefits as of December 31, 2025** | | | |
| Federal tax credit | $**—** | $**18.7** | **2042** |
| **Balance as of December 31, 2025** | $**—** | $**18.7** |  |

---

---

| | | | |
|:---|:---|:---|:---|
| **2024 *(in millions)*** | **Gross Value** | **Deferred Tax Effect** | **Earliest Year of Expiration** |
| **Future tax benefits as of December 31, 2024** | | | |
| Federal tax credit | $— | $4.8 | 2042 |
| **Balance as of December 31, 2024** | $— | $4.8 |  |

---

**Unrecognized Tax Benefits**

We had no unrecognized tax benefits at December 31, 2025 and 2024.

For the years ended December 31, 2025, 2024, and 2023, we recognized no interest expense and no penalties related to unrecognized tax benefits in our income statements. At December 31, 2025 and 2024, we had no interest accrued and no penalties accrued related to unrecognized tax benefits on our balance sheets.

Our primary tax jurisdictions include federal and the state of Wisconsin. With a few exceptions, we are no longer subject to federal income tax examinations by the IRS for years prior to 2022. As of December 31, 2025, we were subject to examination by the Wisconsin taxing authority for tax years 2021 through 2025.

*2025 Form 10-K* 79 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**Cash Paid For Income Taxes, Net**

The table below is a summary of income taxes paid by jurisdiction for the years ended December 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ***(in millions)*** | **2025** |  | **2024** |  | **2023** |  |
| Federal | $**8.5** | <sup>(1)</sup> | $1.5 | <sup>(2)</sup> | $1.9 | <sup>(3)</sup> |
| State | **10.1** |  | 7.3 |  | 1.0 |  |
| **Total income taxes paid, net** | $**18.6** |  | $8.8 |  | $2.9 |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amount is net of $19.4 million of cash received, related to 2025 and 2024 PTCs that were sold to third parties.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amount is net of $22.7 million of cash received, related to 2024 and 2023 PTCs that were sold to third parties.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amount is net of $4.9 million of cash received, related to 2023 PTCs that were sold to third parties.

Income taxes paid exceeded 5 percent of total income taxes paid in the following jurisdiction:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| Wisconsin | $**10.1** | $7.3 | $1.0 |

---

**NOTE 17—FAIR VALUE MEASUREMENTS**

The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|<br>***(in millions)*** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Derivative assets** | | | | |
| Natural gas contracts | $**0.1** | $**5.5** | $**—** | $**5.6** |
| FTRs | **—** | **—** | **2.3** | **2.3** |
| **Total derivative assets** | $**0.1** | $**5.5** | $**2.3** | $**7.9** |
| **Derivative liabilities** |  |  |  |  |
| Natural gas contracts | $**3.4** | $**0.6** | $**—** | $**4.0** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>***(in millions)*** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Derivative assets** | | | | |
| Natural gas contracts | $3.3 | $2.8 | $— | $6.1 |
| FTRs |  |  | 2.0 | 2.0 |
| **Total derivative assets** | $3.3 | $2.8 | $2.0 | $8.1 |
| **Derivative liabilities** |  |  |  |  |
| Natural gas contracts | $0.6 | $0.3 | $— | $0.9 |

---

The derivative assets and liabilities listed in the tables above include options, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO Energy Markets.

The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy at December 31:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| Balance at the beginning of the period | $**2.0** | $2.0 | $4.1 |
| Purchases | **7.2** | 8.2 | 6.3 |
| Sales | **(0.3)** |  |  |
| Settlements | **(6.6)** | (8.2) | (8.4) |
| **Balance at the end of the period** | $**2.3** | $2.0 | $2.0 |

---

*2025 Form 10-K* 80 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**Fair Value of Financial Instruments**

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>***(in millions)*** | **Carrying Amount** | **Fair Value** | **Carrying Amount** | **Fair Value** |
| Long-term debt, including current portion | $**1959.3** | $**1626.0** | $2258.0 | $1882.1 |

---

The fair value of our long-term debt is categorized within Level 2 of the fair value hierarchy.

**NOTE 18—DERIVATIVE INSTRUMENTS**

Derivative assets and liabilities are included in the other current and other long-term line items on our balance sheets. The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below were designated as hedging instruments.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|<br>***(in millions)*** | **Derivative<br>Assets** | **Derivative<br>Liabilities** | **Derivative<br>Assets** | **Derivative<br>Liabilities** |
| **Current** | | | | |
| Natural gas contracts | $**5.6** | $**3.8** | $5.8 | $0.9 |
| FTRs | **2.3** | **—** | 2.0 |  |
| **Total current** | **7.9** | **3.8** | 7.8 | 0.9 |
| **Long-term** |  |  |  |  |
| Natural gas contracts | **—** | **0.2** | 0.3 |  |
| **Total** | $**7.9** | $**4.0** | $8.1 | $0.9 |

---

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 realized gains and losses and the estimated notional volumes related to these settlements were as follows for the years ended:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
|<br>***(in millions)*** | **Volumes** | **Gains (Losses)** | **Volumes** | **Gains (Losses)** | **Volumes** | **Gains (Losses)** |
| Natural gas contracts | **37.2 Dth** | $**(3.7)** | 43.2 Dth | $(19.6) | 40.6 Dth | $(52.0) |
| FTRs | **8.3 MWh** | **8.0** | 8.6 MWh | 2.0 | 8.3 MWh | 10.2 |
| **Total** |  | $**4.3** |  | $(17.6) |  | $(41.8) |

---

At December 31, 2025 and 2024, we had posted cash collateral of $9.8 million and $5.7 million, respectively. We had also received cash collateral of $1.1 million at December 31, 2024.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>***(in millions)*** | **Derivative<br>Assets** | **Derivative<br>Liabilities** | | **Derivative<br>Assets** | | **Derivative<br>Liabilities** |
| Gross amount recognized on the balance sheet | $**7.9** | $**4.0** |  | $8.1 |  | $0.9 |
| Gross amount not offset on the balance sheet | **(0.1)** | **(3.4)** | <sup>(1)</sup> | (1.6) | <sup>(2)</sup> | (0.5) |
| **Net amount** | $**7.8** | $**0.6** |  | $6.5 |  | $0.4 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes cash collateral posted of $3.3 million.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes cash collateral received of $1.1 million.

*2025 Form 10-K* 81 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**NOTE 19—EMPLOYEE BENEFITS**

**Pension and Other Postretirement Employee Benefits**

We have our own noncontributory, qualified pension plan.

We serve as plan sponsor and administrator for certain OPEB plans. The benefits are funded through irrevocable trusts, as allowed for income tax purposes. Our balance sheets reflect only the liabilities associated with our past and current employees and our share of the plan assets and obligations. WEC Energy Group also offers medical, dental, and life insurance benefits to our active employees and their dependents. We expense the allocated costs of these benefits as incurred.

The defined benefit pension plans are closed to all new hires. In addition, the service accruals for the defined benefit pension plans were frozen for non-union employees as of January 1, 2013. These employees receive an annual company contribution to their 401(k) savings plan, which is calculated based on age, wages, and full years of vesting service as of December 31 each year.

We use a year-end measurement date to measure the funded status of all of the pension and OPEB plans. Due to the regulated nature of our business, we have concluded that substantially all of the unrecognized costs resulting from the recognition of the funded status of the pension and OPEB plans qualify as a regulatory asset.

The following tables provide a reconciliation of the changes in our share of the plans' benefit obligations and fair value of assets:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **OPEB Benefits** | **OPEB Benefits** |
|<br>***(in millions)*** | **2025** | **2024** | **2025** | **2024** |
| **Change in benefit obligation** |  |  |  |  |
| Obligation at January 1 | $**550.5** | $586.7 | $**130.0** | $128.7 |
| Service cost | **4.2** | 5.0 | **3.0** | 3.1 |
| Interest cost | **30.5** | 29.3 | **7.5** | 6.6 |
| Plan amendments | **—** |  | **0.7** |  |
| Actuarial (gain) loss | **6.4** | (34.8) | **13.6** | 0.2 |
| Participant contributions | **—** |  | **0.7** | 0.7 |
| Benefit payments | **(36.2)** | (35.7) | **(9.7)** | (9.3) |
| **Obligation at December 31** | $**555.4** | $550.5 | $**145.8** | $130.0 |
| **Change in fair value of plan assets** |  |  |  |  |
| Fair value at January 1 | $**713.6** | $713.7 | $**281.1** | $271.9 |
| Actual return on plan assets | **62.4** | 35.1 | **30.0** | 17.0 |
| Employer contributions | **0.5** | 0.5 | **0.9** | 0.8 |
| Participant contributions | **—** |  | **0.7** | 0.7 |
| Benefit payments | **(36.2)** | (35.7) | **(9.7)** | (9.3) |
| **Fair value at December 31** | $**740.3** | $713.6 | $**303.0** | $281.1 |
| **Funded status at December 31** | $**184.9** | $163.1 | $**157.2** | $151.1 |

---

In 2025, we had actuarial losses related to our pension benefit obligations of $6.4 million and actuarial gains in 2024 of $34.8 million. The primary driver for the actuarial loss was the decrease in discount rate. The primary driver for the actuarial gain was a higher discount rate in 2024. Partially offsetting the gain in 2024, was lower than expected asset returns. The discount rate for our pension benefits was 5.60%, 5.70%, and 5.15% in 2025, 2024, and 2023, respectively.

In 2025 and 2024, we had actuarial losses related to our OPEB benefit obligation of $13.6 million and $0.2 million, respectively, both of which were driven by changes to medical trend assumptions and claims and premium updates. The 2025 loss was also driven by a lower discount rate. Partially offsetting the loss in 2024, was a higher discount rate. The discount rate for our OPEB benefits was 5.61%, 5.74%, and 5.16% in 2025, 2024, and 2023, respectively.

*2025 Form 10-K* 82 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

The amounts recognized on our balance sheets at December 31 related to the funded status of the benefit plans were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **OPEB Benefits** | **OPEB Benefits** |
|<br>***(in millions)*** | **2025** | **2024** | **2025** | **2024** |
| Pension and OPEB assets | $**188.6** | $167.3 | $**169.1** | $161.6 |
| Other long-term liabilities | **3.7** | 4.2 | **11.9** | 10.5 |
| **Total net assets** | $**184.9** | $163.1 | $**157.2** | $151.1 |

---

The accumulated benefit obligation for the defined benefit pension plans was $526.8 million and $521.7 million at December 31, 2025 and 2024, respectively.

The following table shows information for pension plans with an accumulated benefit obligation in excess of plan assets. There were no plan assets related to these pension plans. Amounts presented are as of December 31:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Accumulated benefit obligation | $**3.6** | $4.2 |

---

The following table shows information for pension plans with a projected benefit obligation in excess of plan assets. There were no plan assets related to these pension plans. Amounts presented are as of December 31:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Projected benefit obligation | $**3.6** | $4.2 |

---

The following table shows information for OPEB plans with an accumulated benefit obligation in excess of plan assets. Amounts presented are as of December 31:

---

| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Accumulated benefit obligation | $**15.7** | $15.0 |
| Fair value of plan assets | **3.7** | 4.4 |

---

The following table shows the amounts that had not yet been recognized in our net periodic benefit cost as of December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **OPEB Benefits** | **OPEB Benefits** |
|<br>***(in millions)*** | **2025** | **2024** | **2025** | **2024** |
| **Net regulatory assets (liabilities)** |  |  |  |  |
| Net actuarial loss (gain) | $**5.3** | $17.0 | $**(28.9)** | $(29.8) |
| Prior service credits | **—** |  | **(5.2)** | (10.8) |
| **Total** | $**5.3** | $17.0 | $**(34.1)** | $(40.6) |

---

The components of net periodic benefit cost (credit) (including amounts capitalized to our balance sheets) for the years ended December 31 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Pension Benefits** | **OPEB Benefits** | **OPEB Benefits** | **OPEB Benefits** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** | **2025** | **2024** | **2023** |
| Service cost | $**4.2** | $5 | $4.8 | $**3.0** | $3.1 | $2.8 |
| Interest cost | **30.5** | 29.3 | 30.1 | **7.5** | 6.6 | 6.1 |
| Expected return on plan assets | **(49.5)** | (51.1) | (51.3) | **(18.0)** | (17.3) | (16.3) |
| Amortization of prior service credit | **—** |  |  | **(4.9)** | (10.2) | (10.2) |
| Amortization of net actuarial loss | **5.2** | 17.3 | 17.3 | **0.7** | 2.4 | 1.0 |
| **Net periodic benefit cost (credit)** | $**(9.6)** | $0.5 | $0.9 | $**(11.7)** | $(15.4) | $(16.6) |

---

Effective January 1, 2023, the PSCW approved escrow accounting for pension and OPEB costs. As a result, as of December 31, 2025 and 2024, we recorded a $2.4 million regulatory liability and a $12.9 million regulatory asset for pension costs, respectively, and a $0.3 million regulatory liability and a $14.6 million regulatory asset for OPEB costs, respectively. The above table does not reflect any adjustments for the creation of these regulatory assets and liabilities.

*2025 Form 10-K* 83 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

The weighted-average assumptions used to determine the benefit obligations for the plans were as follows for the years ended December 31:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **OPEB Benefits** | **OPEB Benefits** |
| | **2025** | **2024** | **2025** | **2024** |
| Discount rate | **5.60%** | 5.70% | **5.61%** | 5.74% |
| Rate of compensation increase | **4.00%** | 4.00% | **N/A** | N/A |
| Interest credit rate | **4.50%** | 4.50% | **N/A** | N/A |
| Assumed medical cost trend rate (Pre 65) | **N/A** | N/A | **8.00%** | 7.00% |
| Ultimate trend rate (Pre 65) | **N/A** | N/A | **5.00%** | 5.00% |
| Year ultimate trend rate is reached (Pre 65) | **N/A** | N/A | **2032** | 2033 |
| Assumed medical cost trend rate (Post 65) | **N/A** | N/A | **10.00%** | 6.00% |
| Ultimate trend rate (Post 65) | **N/A** | N/A | **5.00%** | 5.00% |
| Year ultimate trend rate is reached (Post 65) | **N/A** | N/A | **2034** | 2030 |

---

The weighted-average assumptions used to determine net periodic benefit cost for the plans were as follows for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| | **Pension Benefits** | **Pension Benefits** | **Pension Benefits** |
| | **2025** | **2024** | **2023** |
| Discount rate | **5.70%** | 5.15% | 5.50% |
| Expected return on plan assets | **6.75%** | 6.75% | 6.75% |
| Rate of compensation increase | **4.00%** | 4.00% | 4.00% |
| Interest credit rate | **4.50%** | 4.50% | 4.00% |

---

---

| | | | |
|:---|:---|:---|:---|
| | **OPEB Benefits** | **OPEB Benefits** | **OPEB Benefits** |
| | **2025** | **2024** | **2023** |
| Discount rate | **5.74%** | 5.16% | 5.50% |
| Expected return on plan assets | **6.50%** | 6.50% | 6.50% |
| Assumed medical cost trend rate (Pre 65) | **7.00%** | 6.25% | 6.50% |
| Ultimate trend rate (Pre 65) | **5.00%** | 5.00% | 5.00% |
| Year ultimate trend rate is reached (Pre 65) | **2033** | 2031 | 2031 |
| Assumed medical cost trend rate (Post 65) | **6.00%** | 6.25% | 6.00% |
| Ultimate trend rate (Post 65) | **5.00%** | 5.00% | 5.00% |
| Year ultimate trend rate is reached (Post 65) | **2030** | 2030 | 2031 |

---

WEC Energy Group consults with its investment advisors on an annual basis to help forecast expected long-term returns on plan assets by reviewing historical returns as well as calculating expected total trust returns using the weighted-average of long-term market returns for each of the major target asset categories utilized in the trust. For 2026, the expected return on asset assumption is 6.75% for the pension plan and 6.50% for the OPEB plan.

**Plan Assets**

Current pension trust assets and amounts which are expected to be contributed to the trusts in the future are expected to be adequate to meet pension payment obligations to current and future retirees.

The Investment Trust Policy Committee oversees investment matters related to all of our funded benefit plans. The Committee works with external actuaries and investment consultants on an on-going basis to establish and monitor investment strategies and target asset allocations. Forecasted cash flows for plan liabilities are regularly updated based on annual valuation results. Target allocations are determined utilizing projected benefit payment cash flows and risk analyses of appropriate investments. They are intended to reduce risk, provide long-term financial stability for the plans and maintain funded levels which meet long-term plan obligations while preserving sufficient liquidity for near-term benefit payments.

Our pension trust target asset allocations are 25% equity investments, 55% fixed income investments, and 20% private equity and real estate investments. The OPEB trust has a target asset allocation of 45% equity investments, 45% fixed income investments, and 10% real estate investments. Equity securities include investments in large-cap, mid-cap, and small-cap companies. Fixed income

*2025 Form 10-K* 84 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

securities include corporate bonds of companies from diversified industries, mortgage and other asset backed securities, commercial paper, and United States Treasuries.

Pension and OPEB plan investments are recorded at fair value. See Note 1(o), Fair Value Measurements, for more information regarding the fair value hierarchy and the classification of fair value measurements based on the types of inputs used.

The following tables provide the fair values of our investments by asset class:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Pension Plan Assets** | **Pension Plan Assets** | **Pension Plan Assets** | **Pension Plan Assets** | **OPEB Assets** | **OPEB Assets** | **OPEB Assets** | **OPEB Assets** |
|<br>***(in millions)*** | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Asset Class** | | | | | | | | |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States equity | $**45.8** | $**—** | $**—** | $**45.8** | $**35.7** | $**—** | $**—** | $**35.7** |
| &nbsp;&nbsp;&nbsp;International equity | **50.4** | **—** | **—** | **50.4** | **36.4** | **—** | **—** | **36.4** |
| Fixed income securities: <sup>(1)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States bonds | **—** | **190.7** | **0.2** | **190.9** | **39.9** | **68.8** | **—** | **108.7** |
| &nbsp;&nbsp;&nbsp;International bonds | **—** | **18.5** | **—** | **18.5** | **—** | **1.9** | **—** | **1.9** |
|  | $**96.2** | $**209.2** | $**0.2** | $**305.6** | $**112.0** | $**70.7** | $**—** | $**182.7** |
| Investments measured at net asset value: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities |  |  |  | **116.4** |  |  |  | **72.8** |
| &nbsp;&nbsp;&nbsp;Fixed income securities |  |  |  | **70.4** |  |  |  | **20.1** |
| &nbsp;&nbsp;&nbsp;Other |  |  |  | **247.9** |  |  |  | **27.4** |
| **Total** |  |  |  | $**740.3** |  |  |  | $**303.0** |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Pension Plan Assets** | **Pension Plan Assets** | **Pension Plan Assets** | **Pension Plan Assets** | **OPEB Assets** | **OPEB Assets** | **OPEB Assets** | **OPEB Assets** |
|<br>***(in millions)*** | **Level 1** | **Level 2** | **Level 3** | **Total** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Asset Class** | | | | | | | | |
| Equity securities: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States equity | $47.9 | $— | $— | $47.9 | $33.3 | $— | $— | $33.3 |
| &nbsp;&nbsp;&nbsp;International equity | 45.0 |  |  | 45.0 | 30.7 |  |  | 30.7 |
| Fixed income securities: <sup>(1)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;United States bonds |  | 172.4 |  | 172.4 | 36.5 | 63.9 |  | 100.4 |
| &nbsp;&nbsp;&nbsp;International bonds |  | 22.3 |  | 22.3 |  | 2.9 |  | 2.9 |
|  | $92.9 | $194.7 | $— | $287.6 | $100.5 | $66.8 | $— | $167.3 |
| Investments measured at net asset value: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity securities |  |  |  | 117.3 |  |  |  | 66.4 |
| &nbsp;&nbsp;&nbsp;Fixed income securities |  |  |  | 67.9 |  |  |  | 18.8 |
| &nbsp;&nbsp;&nbsp;Other |  |  |  | 240.8 |  |  |  | 28.6 |
| **Total** |  |  |  | $713.6 |  |  |  | $281.1 |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>This category represents investment grade bonds of United States and foreign issuers denominated in United States dollars from diverse industries.

*2025 Form 10-K* 85 *Wisconsin Public Service Corporation*

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The following tables set forth a reconciliation of changes in fair values of pension and OPEB plan assets categorized as Level 3 in the fair value hierarchy:

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| | |
|:---|:---|
| | **United States Bonds** |
|<br>***(in millions)*** | **Pension** |
| Beginning balance at January 1, 2025 | $**—** |
| Purchases | **0.2** |
| **Ending balance at December 31, 2025** | $**0.2** |

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**Cash Flows**

We expect to contribute $0.5 million to the pension plans and $0.9 million to the OPEB plans in 2026, dependent upon various factors affecting us, including our liquidity position and possible tax law changes.

The following table shows the payments, reflecting expected future service, that we expect to make for pension and OPEB over the next 10 years:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **Pension Benefits** | **OPEB Benefits** |
| 2026 | $38.6 | $9.8 |
| 2027 | 39.2 | 10.4 |
| 2028 | 39.1 | 10.8 |
| 2029 | 38.9 | 11.0 |
| 2030 | 39.2 | 11.1 |
| 2031-2035 | 191.5 | 56.3 |

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**Savings Plans**

WEC Energy Group sponsors 401(k) savings plans that allow substantially all of our full-time employees to contribute a portion of their pre-tax and/or after-tax income in accordance with plan-specified guidelines. A percentage of employee contributions are matched by us through a contribution into the employee's savings plan account, up to certain limits. The 401(k) savings plans include an Employee Stock Ownership Plan. Certain employees receive a retirement contribution in lieu of receiving a pension benefit. Total costs incurred under all of these plans were $15.3 million, $13.8 million, and $12.8 million in 2025, 2024, and 2023, respectively.

**NOTE 20—SEGMENT INFORMATION**

Our President, who is our CODM, reviews financial information presented on a segment basis for purposes of making operating decisions and assessing performance. The CODM regularly reviews net income to measure segment profitability and to allocate resources, including assets, to our business. Net income best measures our segment profitability as it reflects all revenues and costs, including the impact on our tax provision from tax credits generated through investments in renewable generation facilities.

Our CODM allocates resources such as employees as well as financial and capital resources to our segments during the annual review of budgets and the capital plan. Our CODM also reviews and revises the resources throughout the year during the monthly forecasting process in order to make timely decisions that align with our overall corporate strategy. The CODM uses each segment's net income to evaluate performance by comparing actual results to budgeted and forecasted amounts, as well as the ROE earned.

Segments were determined based on a combination of factors, including the regulatory environment of each geographical jurisdiction in which the segment operates, equity investment interests, as well as the revenue streams for the products or services provided to customers through electric and natural gas operations. See Note 4, Operating Revenues, for more information on disaggregation of operating revenues. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies.

At December 31, 2025, we reported two segments, which are described below. All of our operations are located within the United States.

Our utility segment includes our electric and natural gas utility operations, which serve customers in northeastern and central Wisconsin. Our electric utility operations are engaged in the generation, distribution, and sale of electricity. Our natural gas utility

*2025 Form 10-K* 86 *Wisconsin Public Service Corporation*

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operations are engaged in the purchase, distribution, and sale of natural gas to retail customers as well as the transportation of customer-owned natural gas.

Our other segment primarily consists of equity earnings from our investment in WRPC.

The following tables show summarized financial information related to our reportable segments for the years ended December 31, 2025, 2024, and 2023.

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| | | | |
|:---|:---|:---|:---|
| **2025 *(in millions)*** | **Utility** | **Other** | **Wisconsin Public Service Corporation** |
| External revenues | $**1836.9** | $**—** | $**1836.9** |
| Fuel and purchased power | **392.0** | **—** | **392.0** |
| Cost of natural gas sold | **217.3** | **—** | **217.3** |
| Other operation and maintenance | **480.5** | **—** | **480.5** |
| Depreciation and amortization | **268.0** | **—** | **268.0** |
| Property and revenue taxes | **44.3** | **—** | **44.3** |
| Other income, net <sup>(1)</sup> | **17.9** | **2.0** | **19.9** |
| Interest expense | **94.3** | **—** | **94.3** |
| Income tax expense | **66.3** | **0.5** | **66.8** |
| Net income | $**292.1** | $**1.5** | $**293.6** |
| **Other Segment Disclosures** |  |  |  |
| Capital expenditures | $**704.4** | $**—** | $**704.4** |
| Equity method investments | **0.9** | **16.9** | **17.8** |
| Total assets | **8037.7** | **16.9** | **8054.6** |

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<sup>(1)</sup> Includes equity earnings from equity method investments of $2.0 million included in the other segment, as well as amounts that are not material for interest income.

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| | | | |
|:---|:---|:---|:---|
| **2024 *(in millions)*** | **Utility** | **Other** | **Wisconsin Public Service Corporation** |
| External revenues | $1560.4 | $— | $1560.4 |
| Fuel and purchased power | 321.5 |  | 321.5 |
| Cost of natural gas sold | 163.8 |  | 163.8 |
| Other operation and maintenance | 440.3 |  | 440.3 |
| Depreciation and amortization | 238.5 |  | 238.5 |
| Property and revenue taxes | 46.9 |  | 46.9 |
| Other income, net <sup>(1)</sup> | 48.2 | 1.9 | 50.1 |
| Interest expense | 95.0 |  | 95.0 |
| Income tax expense | 51.2 | 0.4 | 51.6 |
| Net income | $251.4 | $1.5 | $252.9 |
| **Other Segment Disclosures** |  |  |  |
| Capital expenditures and asset acquisitions | $495.9 | $— | $495.9 |
| Equity method investments | 0.9 | 14.9 | 15.8 |
| Total assets | 7480.8 | 14.9 | 7495.7 |

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<sup>(1)</sup> Includes equity earnings from equity method investments of $1.9 million included in the other segment, as well as amounts that are not material for interest income.

*2025 Form 10-K* 87 *Wisconsin Public Service Corporation*

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| | | | |
|:---|:---|:---|:---|
| **2023 *(in millions)*** | **Utility** | **Other** | **Wisconsin Public Service Corporation** |
| External revenues | $1681.4 | $— | $1681.4 |
| Fuel and purchased power | 388.1 |  | 388.1 |
| Cost of natural gas sold | 218.7 |  | 218.7 |
| Other operation and maintenance | 434.3 |  | 434.3 |
| Depreciation and amortization | 226.9 |  | 226.9 |
| Property and revenue taxes | 47.4 |  | 47.4 |
| Other income, net <sup>(1)</sup> | 43.8 | 2.1 | 45.9 |
| Interest expense | 89.0 |  | 89.0 |
| Income tax expense | 62.3 | 0.4 | 62.7 |
| Net income | $258.5 | $1.7 | $260.2 |
| **Other Segment Disclosures** |  |  |  |
| Capital expenditures and asset acquisitions | $635.6 | $— | $635.6 |
| Equity method investments | 0.8 | 13.6 | 14.4 |
| Total assets | 7017.5 | 13.6 | 7031.1 |

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<sup>(1)</sup> Includes equity earnings from equity method investments of $2.1 million included in the other segment, as well as amounts that are not material for interest income.

**NOTE 21—COMMITMENTS AND CONTINGENCIES**

We have significant commitments and contingencies arising from our operations, including those related to unconditional purchase obligations, environmental matters, and enforcement and litigation matters.

**Unconditional Purchase Obligations**

We have obligations to distribute and sell electricity and natural gas to our customers and expect to recover costs related to these obligations in future customer rates. In order to meet these obligations, we routinely enter into long-term purchase and sale commitments for various quantities and lengths of time.

The following table shows our minimum future commitments related to these purchase obligations as of December 31, 2025:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** |
|<br>***(in millions)*** |<br>**Date Contracts Extend Through** |<br>**Total Amounts Committed** | **2026** | **2027** | **2028** | **2029** | **2030** | **Later Years** |
| Electric utility: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchased power | 2063 | $207.6 | $57.4 | $52.0 | $48.1 | $21.2 | $1.4 | $27.5 |
| &nbsp;&nbsp;&nbsp;Coal supply and transportation | 2028 | 149.9 | 97.9 | 34.7 | 17.3 |  |  |  |
| &nbsp;&nbsp;&nbsp;Other | 2043 | 85.5 | 12.0 | 12.1 | 9.6 | 8.4 | 8.5 | 34.9 |
| Natural gas utility supply and transportation | 2048 | 774.6 | 83.5 | 79.9 | 78.4 | 71.6 | 60.6 | 400.6 |
| **Total** |  | $1217.6 | $250.8 | $178.7 | $153.4 | $101.2 | $70.5 | $463.0 |

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**Environmental Matters**

Consistent with other companies in the energy industry, we face significant ongoing environmental compliance and remediation obligations related to current and past operations. Specific environmental issues affecting us include, but are not limited to, current and future regulation of air emissions such as SO2, NOx, fine particulates, ozone, mercury, and GHGs; water intake and discharges; management of coal combustion products such as fly ash; and remediation of impacted properties, including former manufactured gas plant sites.

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We have continued to pursue a proactive strategy to manage our environmental compliance obligations, including:

• the development of additional sources of renewable electric energy supply, battery storage, and natural gas storage facilities;

• the addition of improvements for water quality matters such as treatment technologies to meet regulatory discharge limits and improvements to our cooling water intake systems;

• the addition of emission control equipment to existing facilities to comply with ambient air quality standards and federal clean air rules;

• the protection of wetlands and waterways, biodiversity including threatened and endangered species, and cultural resources associated with construction projects;

• the retirement of older coal-fired power plants and conversion to modern, efficient, natural gas generation, and/or replacement with renewable generation;

• the beneficial use of ash and other products from coal-fired generating units;

• the remediation of former manufactured gas plant sites;

• the reduction of methane emissions across our natural gas distribution system by upgrading infrastructure; and

• the tracking and reporting of GHG emissions.

***Federal Deregulatory Actions***

In March 2025, the EPA announced a large-scale deregulatory effort that will likely take multiple years to complete. Of the proposed deregulatory actions, those that would apply to us include actions impacting the Good Neighbor Rule, MATS, the PM2.5 Standard, the GHG Power Plant Rule, the Mandatory Greenhouse Gas Reporting Rule, the ELG, and the CCR Rule. Any EPA actions will require formal rulemaking proceedings and are likely to be subject to legal challenges. We continue to monitor and evaluate these deregulatory actions for potential risks and benefits.

In February 2026, the EPA published a final rule rescinding the 2009 declaration that determined that CO2 and other GHGs endanger public health and welfare. The "endangerment finding" has been the legal underpinning of a host of climate regulations under the CAA. The rule is expected to face litigation.

***Air Quality***

**Cross State Air Pollution Rule – Good Neighbor Rule** 

In 2023, the EPA issued a final Good Neighbor Rule, which required significant reductions in ozone-forming emissions of NOx from power plants and industrial facilities. In June 2024, the rule was stayed by the Supreme Court with respect to the specific applicant states, pending ongoing judicial review.

In response to the Supreme Court's order, in November 2024, the EPA administratively stayed the effectiveness of the Good Neighbor Rule through an interim final rule which extends a stay to all states to which the rule originally applied, including states in which we operate. The interim final rule also includes provisions to ensure that covered facilities in states with previously established requirements to mitigate interstate air pollution with respect to the 2008 ozone NAAQS will remain subject to equivalent requirements while the Good Neighbor Rule's effectiveness is stayed. Regardless of the outcome, we believe we are well positioned to comply with either standard. See the Federal Deregulatory Actions discussion above for more information regarding potential deregulatory actions regarding this rule.

**Mercury and Air Toxics Standards**

The EPA issued the MATS rule to limit emissions of mercury, acid gases, and other hazardous air pollutants. In May 2024, the EPA finalized amendments to the MATS rule (the "2024 Amendments") which among other things, lowered the PM limit from 0.03 lb/MMBtu to 0.01 lb/MMBtu. We believe we are well positioned to comply with the requirements of the 2024 Amendments.

In June 2025, the EPA proposed to repeal the 2024 Amendments which would result in a return of the PM limit to 0.03 lb/MMBtu. In December 2025, the EPA submitted a draft of the rule to the OMB for interagency review. Following completion of the OMB review process, the EPA has stated it expects the rule to be finalized in the first quarter of 2026.

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**National Ambient Air Quality Standards**

***Particulate Matter***

All counties within our service territory are currently in attainment with current 2012 NAAQS for PM2.5. In February 2024, the EPA finalized a rule which lowered the primary (health-based) annual PM2.5 NAAQS from 12 µg/m<sup>3</sup> to 9 µg/m<sup>3</sup> (the "2024 PM2.5 Standard"). In February 2025, the WDNR submitted a State Implementation Plan to the EPA recommending Wisconsin be designated as an attainment area under the 2024 PM2.5 Standard. The EPA has not yet issued its attainment designations and has indicated it may extend the designation period. A designation of nonattainment status could impact future permitting activities for facilities in applicable locations, including the potential need for improved or new air pollution control equipment. With our planned transition from coal-fired plants to natural gas-fired plants and renewable generating facilities, we do not expect the 2024 PM2.5 Standard to have a material impact on our units.

In November 2025, the EPA filed a motion with the D.C. Circuit Court of Appeals to vacate the 2024 PM2.5 Standard. The 2024 PM2.5 Standard remains in effect while the motion is being considered. See the Federal Deregulatory Actions discussion above for more information regarding potential deregulatory actions regarding this rule.

**New Source Performance Standards**

***Nitrogen Oxides***

In January 2026, the EPA released a pre-publication version of its final rule regulating NOx for CTs constructed, modified, or reconstructed after December 13, 2024. The final rule, which became effective January 15, 2026 and established NOx emissions standards for several subcategories of new, modified, and reconstructed CTs based on the size, rates of utilization, design efficiency, and fuel type of these turbines. We believe we are well positioned to comply with this rule.

**Climate Change**

Pursuant to the final GHG Power Plant Rule, there are no applicable GHG emission standards for coal plants until the end of 2031. Thereafter, the applicable standard is dependent upon the unit's retirement date. Numerous parties have challenged the GHG Power Plant Rule through litigation pending in the D.C. Circuit Court of Appeals, and it is being held in abeyance at the request of the parties.

In March 2024, the EPA announced it had removed regulations on existing natural gas CTs from the rule. At that time, the EPA indicated it would work on new rulemaking in phases, focusing on CO2 emissions, as well as NOx and hazardous air pollutants emissions. See New Source Performance Standards - Nitrogen Oxides above for a discussion of the EPA's recent actions addressing NOx.

In June 2025, the EPA issued a proposed rule that contains a primary and an alternative proposal which, depending on which version is finalized, would result in either a broad repeal of GHG emissions standards or a more narrow repeal of the rule's carbon capture and storage requirements. WEC Energy Group does not expect either alternative to have any impact on its current capital plan. Any final rule would likely be subject to litigation. See the Federal Deregulatory Actions discussion above for more information regarding potential deregulatory actions regarding this rule.

In April 2024, the EPA issued its final Mandatory Greenhouse Gas Reporting Rule, which includes updates to the global warming potentials to determine CO2 equivalency for threshold reporting and the addition of a new section regarding energy consumption. In its current form, the rule will impact the reporting required for our electric generation facilities, LDCs, and underground natural gas storage facilities. In May 2024, the EPA also issued its final rule to amend reporting requirements for petroleum and natural gas systems. Under the current form of this rule, new leak emission factors and reporting requirements for large release events will impact the reporting required for our LDCs and underground natural gas storage facilities; however, under the Federal Deregulatory Actions discussion above, in September 2025, the EPA released a proposal to amend the GHG Reporting Program to permanently remove program obligations for most source categories, including our generation facilities. The EPA is also proposing to suspend program reporting requirements that would be applicable to our underground storage, LNG, and transmission affiliates until 2034. We continue to monitor the status of these deregulatory actions.

WEC Energy Group's capital plan includes the planned retirement of older, fossil-fueled generation, to be replaced with natural gas-fired generation and zero-carbon-emitting renewables. We have retired approximately 400 MWs of fossil-fueled generation since

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the beginning of 2018. WEC Energy Group expects to retire approximately 900 MWs of additional coal-fired generation by the end of 2031. In conjunction with WEC Energy Group's new capital plan, we and the other co-owners of Columbia Units 1 and 2 currently plan to continue coal operations at these units through at least 2029, and continue to evaluate the conversion of both units to natural gas. See Note 7, Property, Plant, and Equipment, for more information related to Columbia Units 1 and 2 and our planned power plant retirements. WEC Energy Group has a long-term goal to achieve net carbon-neutral electric generation by the end of 2050. It expects to achieve this goal by continuing to make operating refinements, retiring less efficient generating units, and executing its capital plan. As part of our path toward this goal, we have started implementing co-firing with natural gas at Weston Unit 4 in 2025. WEC Energy Group expects to use coal only as a backup fuel by the end of 2030 and to be in a position to eliminate coal as an energy source by the end of 2032.

WEC Energy Group also continues to focus on methane emission reductions by improving and upgrading its natural gas distribution system and using RNG throughout its natural gas utility systems.

***Water Quality***

**Clean Water Act Cooling Water Intake Structure Rule**

The Clean Water Act Cooling Water Intake Structure Rule requires the location, design, construction, and capacity of cooling water intake structures at existing power plants reflect the BTA for minimizing adverse environmental impacts. The rule applies to all of our existing generating facilities with cooling water intake structures.

We have received a final BTA determination for all generation facilities where applicable.

**Steam Electric Effluent Limitation Guidelines** 

The EPA's 2024 Supplemental ELG Rule (the "2024 ELG Rule") established ZLD requirements for bottom ash transport water, flue gas desulfurization, and combustion residual leachate wastewaters at coal-fueled facilities. The 2024 ELG Rule also established a new subcategory, providing an alternative compliance pathway for facility owners that commit to the PCCC at a particular facility by December 31, 2034. In exchange for this commitment, ZLD technologies will not be required and less stringent standards will apply at applicable facilities. The 2024 ELG Rule also allows owners of coal-fired units who opted into a cessation of coal subcategory to operate beyond the end of 2034 if needed for reliability concerns (i.e., energy emergencies and reliability must run agreements) as determined by the United States DOE, a public utility commission, or independent system operator. Based on current electric generation resource planning, in December 2025, we filed Notice of Planned Participations to opt into the PCCC subcategory for certain of our past and current coal-fueled facilities.

In December 2025, the EPA published a final rule, effective March 2, 2026, that extends the deadline for facility owners to opt into a subcategory under the 2024 ELG Rule, allowing them more time to assess potential compliance pathways to continue producing low-cost electricity into the future while meeting wastewater standards.

When the deadline extension rule was proposed, the EPA also solicited public comments related to the economic achievability and technical availability of ZLD technologies. Additional ELG rulemaking is anticipated that may lead to substantive changes to the ZLD technology-based requirements established in the 2024 ELG Rule.

In addition, numerous parties have challenged the 2024 ELG Rule through litigation in *SWEPCO v. U.S. EPA* pending in the United States Court of Appeals for the Eighth Circuit, which has been held in abeyance since February 2025. The 2024 ELG Rule, as well as the deadline extension rule, remain in effect during the pendency of the legal challenge. The outcome of this case may affect our compliance plans.

***Land Quality***

**Manufactured Gas Plant Remediation**

We have identified sites at which we or a predecessor company owned or operated a manufactured gas plant or stored manufactured gas. We have also identified other sites that may have been impacted by historical manufactured gas plant activities. We are responsible for the environmental remediation of these sites. We are working with the EPA and the state of Wisconsin in our

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investigation and remediation planning and efforts. These sites are at various stages of investigation, monitoring, remediation, and closure.

The future costs for detailed site investigation, future remediation, and monitoring are dependent upon several variables including, among other things, the extent of remediation, changes in technology, and changes in regulation. Historically, our regulators have allowed us to recover incurred costs, net of insurance recoveries and recoveries from potentially responsible parties, associated with the remediation of manufactured gas plant sites. Accordingly, we have established regulatory assets for costs associated with these sites.

We have established the following regulatory assets and reserves for manufactured gas plant sites as of December 31:

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| | | |
|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** |
| Regulatory assets for environmental remediation costs | $**133.5** | $114.0 |
| Reserves for future environmental remediation | **104.7** | 77.3 |

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**Coal Combustion Residuals Rule**

An EPA rule for CCR that applies to landfills, historic fill sites, and projects where CCR was placed at a power plant site became effective in November 2024. The rule also regulates previously exempt closed landfills.

We anticipate this rule will have an impact on some of our coal ash landfills, requiring additional remediation that is not currently required under the state programs. We expect the cost of additional remediation would be recoverable through future rates.

The rule is being challenged through litigation pending in the D.C. Circuit Court of Appeals. In December 2025, the D.C. Circuit Court of Appeals granted the EPA's motion to extend the ongoing abeyance while the EPA reconsiders certain aspects of the rule. In February 2026, the EPA published a final rule extending certain deadlines and making various corrections to the 2024 CCR Rule. The EPA has stated it plans to publish a new final rule by the end of 2026. See the Federal Deregulatory Actions discussion above for more information regarding potential deregulatory actions regarding this rule.

***Renewables, Efficiency, and Conservation***

**Wisconsin Legislation** 

In 2005, Wisconsin enacted Act 141, which established a goal that 10% of all electricity consumed in Wisconsin be generated by renewable resources annually. We have achieved our required renewable energy percentage of 9.74% by constructing various wind parks, solar parks, and by also relying on renewable energy purchases. We continue to review our renewable energy portfolio and acquire cost-effective renewables as needed to meet our requirements on an ongoing basis. The PSCW administers the renewable program related to Act 141, and we fund the program, along with other utilities, based on 1.2% of our annual retail operating revenues.

**Enforcement and Litigation Matters**

We are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although we are unable to predict the outcome of these matters, management believes that appropriate reserves have been established and that final settlement of these actions will not have a material impact on our financial condition or results of operations.

*2025 Form 10-K* 92 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**NOTE 22—SUPPLEMENTAL CASH FLOW INFORMATION**

The following table provides additional information regarding our statements of cash flows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|<br>***(in millions)*** | **2025** | **2024** | **2023** |
| Cash paid for interest, net of amount capitalized | $**94.4** | $92.4 | $87.6 |
| Cash paid for income taxes, net | **18.6** | 8.8 | 2.9 |
| Significant non-cash investing and financing transactions: |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable related to construction costs | **50.0** | 50.9 | 24.8 |
| &nbsp;&nbsp;&nbsp;Increase in receivable for corporate-owned life insurance proceeds | **—** | 5.6 |  |
| &nbsp;&nbsp;&nbsp;Liabilities accrued for software licensing agreements | **4.4** | 0.2 |  |

---

**NOTE 23—REGULATORY ENVIRONMENT**

**2025 and 2026 Rates**

In April 2024, we filed a request with the PSCW to increase our retail electric and natural gas rates. The primary drivers of the requested increases in electric rates were continued capital investments to transition our generation fleet from coal to renewables and natural gas-fueled generation, increased costs driven by higher inflation and interest rates, and the recovery of regulatory assets previously approved by the PSCW. The requested increases in natural gas rates were driven by our ongoing capital investments in reliability and safety projects, as well as the impacts from higher inflation and increased interest rates.

In December 2024, the PSCW issued a final written order approving electric and natural gas base rate increases, effective January 1, 2025 and 2026, as applicable. The final written order reflected the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 2025 rate increase |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric <sup>(1)</sup> | $| 55.1 | million | / | 4.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas | $| 14.9 | million | / | 3.8% |
| 2026 rate increase <sup>(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric <sup>(1)</sup> | $| 30.0 | million | / | 2.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas | $| 13.5 | million | / | 3.1% |
| ROE | 9.8% | 9.8% | 9.8% | 9.8% | 9.8% |
| Common equity component average on a financial basis | 53.0% | 53.0% | 53.0% | 53.0% | 53.0% |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Amounts reflect the impact to our Wisconsin retail electric operations and include the incremental decrease resulting from updated fuel costs.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>The 2026 rate increases are incremental to the previously authorized revenue plus the approved rate increases for 2025.

We were required to maintain our then current earnings sharing mechanism. Under this mechanism, if we earn above our authorized ROE: (i) we retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points is required to be refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings is required to be refunded to ratepayers.

**2024 Limited Rate Case Re-Opener**

In accordance with our rate order approved by the PSCW in December 2022, we filed a request with the PSCW in May 2023 for a limited electric rate case re-opener. The request reflected updated fuel costs and revenue requirements for the generation projects that were previously approved by the PSCW and were placed into service in 2023 or were expected to be placed into service in 2024.

In December 2023, the PSCW issued a final written order approving an electric rate decrease of $32.7 million (2.6%) for our Wisconsin retail electric operations, effective January 1, 2024. This amount includes the incremental decrease to our revenue requirements resulting from updated fuel costs.

Our ROE and common equity component average were not addressed in the limited rate case re-opener.

*2025 Form 10-K* 93 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**2023 and 2024 Rates**

In April 2022, we filed a request with the PSCW to increase our retail electric and natural gas rates. Our request was updated in July 2022 to reflect new developments that impacted the original proposal. The requested increase in electric rates was driven by capital investments in new wind, solar, and battery storage; capital investments in natural gas generation; and changes in wholesale business with other utilities. Many of these investments had already been approved by the PSCW. The requested increase in natural gas rates primarily related to capital investments that had been made to maintain and improve safety and reliability.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 2023 base rate increase |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electric | $| 120.5 | million | / | 9.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gas | $| 26.4 | million | / | 7.1% |
| ROE | 9.8% | 9.8% | 9.8% | 9.8% | 9.8% |
| Common equity component average on a financial basis | 53.0% | 53.0% | 53.0% | 53.0% | 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 $3.33 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 WE, also collectively contributed $4.0 million to the Keep Wisconsin Warm Fund.

• We were required to implement escrow accounting treatment for pension and OPEB costs. As a result, we defer as a regulatory asset or liability, the difference between actual pension and OPEB costs and those included in rates until recovery or refund is authorized in a future rate proceeding.

• As discussed above, we were authorized to file a limited electric rate case re-opener for 2024.

**NOTE 24—OTHER INCOME, NET** 

Total other income, net was as follows for the years ended December 31:

---

| | | | |
|:---|:---|:---|:---|
| ***(in millions)*** | **2025** | **2024** | **2023** |
| AFUDC-Equity | $**12.2** | $9.2 | $7.6 |
| Non-service components of net periodic benefit costs | **5.2** | 36.7 | 35.4 |
| Earnings from equity method investments | **2.0** | 1.9 | 2.1 |
| Other, net | **0.5** | 2.3 | 0.8 |
| **Other income, net** | $**19.9** | $50.1 | $45.9 |

---

*2025 Form 10-K* 94 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**NOTE 25—NEW ACCOUNTING PRONOUNCEMENTS**

**Improvements to Interim Reporting**

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements. The amendments clarify interim disclosure requirements and the applicability of Topic 270. The amendments include a comprehensive list of interim disclosures that are currently required under GAAP. The amendments also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. Finally, the amendments clarify the types of interim reporting and the form and content of interim financial statements in accordance with GAAP. The amendments are effective for interim periods within annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

**Accounting for Government Grants**

In December 2025, the FASB issued ASU No. 2025-10, Government Grants (Topic 832) Accounting for Government Grants Received by Business Entities. The amendments establish the accounting for a government grant received by a business entity, including guidance for a grant related to an asset and a grant related to income. The amendments also require disclosures, including the nature of the government grant received, the accounting policies used to account for the grant, and significant terms and conditions of the grant. The amendments are effective for annual periods beginning after December 15, 2028, and interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

**Disaggregation of Income Statement Expenses**

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. The amendments require disclosure of certain costs and expenses in the notes to financial statements, which are disaggregated from relevant expense captions on the income statement. The amendments also require additional qualitative disclosures of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. Finally, the amendments require disclosure of the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. The amendments are effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We plan to adopt these amendments beginning with our fiscal year ending on December 31, 2027, and are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

*2025 Form 10-K* 95 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 9A. CONTROLS AND PROCEDURES** 

**Disclosure Controls and Procedures**

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon such evaluation, our principal executive officer and principal financial officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective: (i) in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act; and (ii) to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in *Internal Control* – *Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2025.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

This Annual Report on Form 10-K does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm pursuant to rules of the SEC that permit us to provide only management's report in this annual report.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the fourth quarter of 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 9B. OTHER INFORMATION**

During the three months ended December 31, 2025, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K).

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

*2025 Form 10-K* 96 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT**

Omitted pursuant to General Instruction I(2)c**.**

**ITEM 11. EXECUTIVE COMPENSATION**

Omitted pursuant to General Instruction I(2)c**.**

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

Omitted pursuant to General Instruction I(2)c**.**

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

Omitted pursuant to General Instruction I(2)c**.**

**ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES**

The following is a summary of the fees for professional services provided to us by Deloitte & Touche LLP in 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **Fees** | **2025** | **2024** |
| Audit fees <sup>(1)</sup> | $**1343970** | $1094217 |
| Tax fees <sup>(2)</sup> | **74731** | 35795 |
| All other fees <sup>(3)</sup> | **673** | 673 |
| **Total fees** | $**1419374** | $1130685 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>*Audit fees*. Consists of aggregate fees for the audits of the annual financial statements and reviews of the interim condensed financial statements included in quarterly reports. Audit fees also include services that are normally provided by Deloitte & Touche LLP in connection with statutory and regulatory filings or engagements, including comfort letters, consents, and other services related to SEC matters, and consultations arising during the course of the audits and reviews concerning financial accounting and reporting standards.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>*Tax fees*. Consists of fees for professional services rendered with respect to federal and state tax compliance and tax advice. This can include preparation of tax returns, claims for refunds, payment planning, and tax law interpretation.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>*All other fees*. Consists of fees for services provided to us by Deloitte & Touche LLP for products and services other than the services reported above. All Other Fees relate to utility training seminars and a subscription cost for the use of a Deloitte & Touche LLP accounting research tool.

No fees were paid to Deloitte & Touche LLP pursuant to the "de minimus" exception to the pre-approval policy permitted under the Exchange Act.

**Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm**

The AOC, which is comprised solely of independent directors, is responsible for reviewing and approving, in advance, all audit, audit-related, tax, and other services of the independent auditor. The AOC has the sole authority to select, evaluate, and where appropriate, terminate and replace the independent auditor.

The AOC is committed to ensuring the independence of the auditor, both in appearance as well as in fact. In order to assure continuing auditor independence, the AOC periodically considers whether there should be a regular rotation of the independent external audit firm. In addition, the AOC is directly involved in the selection of the independent auditor's lead audit partner.

*2025 Form 10-K* 97 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**Pre-Approval Process**

Before engagement of the independent auditor for the next year's audit, the independent auditor will submit (i) a description of all services anticipated to be rendered during the following year, as well as an estimate of the fees for each of the services, for the AOC to approve, and (ii) written confirmation that the performance of any non-audit services is permissible and will not impact the firm's independence. Annual pre-approval will be deemed effective for a period of twelve months from the date of the pre-approval, unless the AOC specifically provides for a different period. A fee level will be established for all permissible, pre-approved non-audit services. Any additional audit service, audit related service, tax service and other service must also be pre-approved.

The AOC delegated pre-approval authority to the AOC's chair. The AOC chair is required to report any pre-approval decisions at the next AOC meeting. Under the pre-approval policy, the AOC may not delegate to management its responsibilities to pre-approve services performed by the independent auditor.

**Prohibited Activities** are services prohibited by the SEC or by the Public Company Accounting Oversight Board to be performed by our independent auditor. These services include:

• bookkeeping or other services related to the accounting records or financial statements of WEC Energy Group or its subsidiaries;

• financial information systems design and implementation;

• appraisal or valuation services, fairness opinions or contribution-in-kind reports;

• actuarial services;

• internal audit outsourcing services;

• management functions or human resources;

• broker-dealer, investment advisor or investment banking services;

• legal services and expert services unrelated to the audit;

• services provided for a contingent fee or commission; and

• services related to planning, marketing or opining in favor of the tax treatment of a confidential transaction or aggressive tax position transaction that was initially recommended, directly or indirectly, by the independent auditor.

In addition, the independent auditor may not provide any services, including personal financial counseling and tax services, to any officer or other employee of WEC Energy Group or its subsidiaries who serves in a financial reporting oversight role or to the chair of the AOC or to an immediate family member of these individuals, including spouses, spousal equivalents, and dependents.

*2025 Form 10-K* 98 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**PART IV**

**ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

---

| | | |
|:---|:---|:---|
| **1.** | **Financial Statements and Report of Independent Registered Public Accounting Firm Included in Part II of This Report** | |
| | **Description** | **Page in 10-K** |
| | <u>[Report of Independent Registered Public Accounting Firm](#i301901e926ef452f991eaa0be03c223a_208)</u> (PCAOB No. 34). | <u>[51](#i301901e926ef452f991eaa0be03c223a_208)</u> |
| | <u>[Income Statements for the three years ended December 31, 2025, 2024, and 2023.](#i301901e926ef452f991eaa0be03c223a_211)</u> | <u>[53](#i301901e926ef452f991eaa0be03c223a_211)</u> |
| | <u>[Balance Sheets as of December 31, 2025 and 2024.](#i301901e926ef452f991eaa0be03c223a_214)</u> | <u>[54](#i301901e926ef452f991eaa0be03c223a_214)</u> |
| | <u>[Statements of Cash Flows for the three years ended December 31, 2025, 2024, and 2023.](#i301901e926ef452f991eaa0be03c223a_217)</u> | <u>[55](#i301901e926ef452f991eaa0be03c223a_217)</u> |
| | <u>[Statements of Equity for the three years ended December 31, 2025, 2024, and 2023.](#i301901e926ef452f991eaa0be03c223a_220)</u> | <u>[56](#i301901e926ef452f991eaa0be03c223a_220)</u> |
| | <u>[Notes to Financial Statements.](#i301901e926ef452f991eaa0be03c223a_223)</u> | <u>[57](#i301901e926ef452f991eaa0be03c223a_223)</u> |
| **2.** | **Financial Statement Schedules Included in Part IV of This Report** | |
| | <u>[Schedule II, Valuation and Qualifying Accounts, for the three years ended December 31, 2025, 2024, and 2023.](#i301901e926ef452f991eaa0be03c223a_415)</u> | <u>[102](#i301901e926ef452f991eaa0be03c223a_415)</u> |
| | Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto. | |
| **3.** | **Exhibits and Exhibit Index** | |
| | The following exhibits are filed or furnished with or incorporated by reference in the report with respect to Wisconsin Public Service Corporation (File No. 1-3016). An asterisk (\*) indicates that the exhibit has previously been filed with the SEC and is incorporated herein by reference. | The following exhibits are filed or furnished with or incorporated by reference in the report with respect to Wisconsin Public Service Corporation (File No. 1-3016). An asterisk (\*) indicates that the exhibit has previously been filed with the SEC and is incorporated herein by reference. |

---

---

| | | |
|:---|:---|:---|
| **Number** | | **Exhibit** |
| **3** | **Articles of Incorporation and By-laws** | **Articles of Incorporation and By-laws** |
|  | <u>[3.1\*](https://www.sec.gov/Archives/edgar/data/107833/000091686312000140/exh41.htm)</u> | <u>[Restated Articles of Incorporation of WPS, as effective May 26, 1972, and amended through May 31, 1988 and Articles of Amendment to Restated Articles of Incorporation of WPS dated June 9, 1993. (Exhibit 4.1 to Registration Statement on Form S-3, Reg. No. 333-182491, filed 07/02/12.)](https://www.sec.gov/Archives/edgar/data/107833/000091686312000140/exh41.htm)</u> |
|  | <u>[3.2\*](https://www.sec.gov/Archives/edgar/data/107833/000010781516000250/a2015wps10-kexhibit32.htm)</u> | <u>[By-Laws of WPS, as amended through June 29, 2015, Inclusive. (Exhibit 3.2 to Form 10-K for the year ended 12/31/15.)](https://www.sec.gov/Archives/edgar/data/107833/000010781516000250/a2015wps10-kexhibit32.htm)</u> |
| **4** | **Instruments defining the rights of security holders, including indentures** | **Instruments defining the rights of security holders, including indentures** |
|  | <u>[4.1\*](https://www.sec.gov/Archives/edgar/data/107833/0001047469-98-044426.txt)</u> | <u>[Indenture, dated as of December 1, 1998, by and between WPS and U.S. Bank National Association (successor to Firstar Bank Milwaukee, N.A., National Association). (Exhibit 4A to Form 8-K filed 12/18/98.)](https://www.sec.gov/Archives/edgar/data/107833/0001047469-98-044426.txt)</u> |
|  | <u>[4.2\*](https://www.sec.gov/Archives/edgar/data/107833/0001047469-98-044426.txt)</u> | <u>[First Supplemental Indenture, dated as of December 1, 1998, by and between WPS and Firstar Bank Milwaukee, N.A., National Association. (Exhibit 4C to Form 8-K filed 12/18/98.)](https://www.sec.gov/Archives/edgar/data/107833/0001047469-98-044426.txt)</u> |
|  | <u>[4.3\*](https://www.sec.gov/Archives/edgar/data/107833/000089706906002496/cmw2429b.htm)</u> | <u>[Fifth Supplemental Indenture, dated as of December 1, 2006, by and between WPS and U.S. Bank National Association. (Exhibit 4.1 to Form 8-K filed 11/30/06.)](https://www.sec.gov/Archives/edgar/data/107833/000089706906002496/cmw2429b.htm)</u> |
|  | <u>[4.4\*](https://www.sec.gov/Archives/edgar/data/107833/000091686312000165/exh41.htm)</u> | <u>[Ninth Supplemental Indenture, dated as of December 1, 2012, by and between WPS and U.S. Bank National Association. (Exhibit 4.1 to Form 8-K filed 11/29/12.)](https://www.sec.gov/Archives/edgar/data/107833/000091686312000165/exh41.htm)</u> |

---

*2025 Form 10-K* 99 *Wisconsin Public Service Corporation*

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*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

---

| | | |
|:---|:---|:---|
| **Number** | | **Exhibit** |
|  | <u>[4.5\*](https://www.sec.gov/Archives/edgar/data/107833/000010783313000009/exhibit41tenthsupplemental.htm)</u> | <u>[Tenth Supplemental Indenture, dated as of November 1, 2013, by and between WPS and U.S. Bank National Association. (Exhibit 4.1 to Form 8-K filed 11/18/13.)](https://www.sec.gov/Archives/edgar/data/107833/000010783313000009/exhibit41tenthsupplemental.htm)</u> |
|  | <u>[4.6\*](https://www.sec.gov/Archives/edgar/data/107833/000114420419039658/tv527408_ex4-1.htm)</u> | <u>[Thirteenth Supplemental Indenture, dated as of August 14, 2019, by and between WPS and U.S. Bank National Association. (Exhibit 4.1 to Form 8-K filed 08/14/19.)](https://www.sec.gov/Archives/edgar/data/107833/000114420419039658/tv527408_ex4-1.htm)</u> |
|  | <u>[4.7\*](https://www.sec.gov/Archives/edgar/data/107833/000110465921140796/tm2133273d1_ex4-1.htm)</u> | <u>[Fourteenth Supplemental Indenture, dated as of November 18, 2021, by and between WPS and U.S. Bank National Association. (Exhibit 4.1 to Form 8-K filed 11/18/21.)](https://www.sec.gov/Archives/edgar/data/107833/000110465921140796/tm2133273d1_ex4-1.htm)</u> |
|  | <u>[4.8\*](https://www.sec.gov/Archives/edgar/data/107833/000110465924126133/tm2430298d1_ex4-1.htm)</u> | <u>[Sixteenth Supplemental Indenture, dated as of December 6, 2024, by and between WPS and U.S. Bank Trust Company, National Association (successor to Firstar Bank, Milwaukee, N.A., National Association (Exhibit 4.1 to Form 8-K filed December 6, 2024).](https://www.sec.gov/Archives/edgar/data/107833/000110465924126133/tm2430298d1_ex4-1.htm)</u> |
|  | <u>[4.9\*](https://www.sec.gov/Archives/edgar/data/107833/000110465926001962/tm262460d1_ex4-1.htm)</u> | <u>[Seventeenth Supplemental Indenture, dated as of January 8, 2026, by and between WPS and U.S. Bank Trust Company, National Association (successor to Firstar Bank, Milwaukee, N.A., National Association) (Exhibit 4.1 to Form 8-K filed January 8, 2026) (File No. 1-3016).](https://www.sec.gov/Archives/edgar/data/107833/000110465926001962/tm262460d1_ex4-1.htm)</u> |
|  |  | The forgoing list of exhibits does not include certain unregistered long-term debt instruments of the Registrant where the total amount of securities authorized to be issued under the instrument does not exceed 10% of the total assets of the Registrant. We agree pursuant to Item 601(b)(4) of Regulation S-K to furnish to the Securities and Exchange Commission, upon request, a copy of all such agreement and instruments. |
| **10** | **Material Contracts** | **Material Contracts** |
|  | <u>[10.1\* #](https://www.sec.gov/Archives/edgar/data/107833/000091686305000098/exh1019.htm)</u> | <u>[Joint Plant Agreement by and between WPS and Dairyland Power Cooperative, dated as of November 23, 2004. (Exhibit 10.19 to Integrys Energy Group's and WPS's Form 10-K for the year ended 12/31/04.)](https://www.sec.gov/Archives/edgar/data/107833/000091686305000098/exh1019.htm)</u> |
|  |  | Note: Certain compensatory plans, contracts or arrangements in which directors or executive officers of WPS participate are not filed as WPS exhibits in reliance on the exclusion in Item 601(b)(10)(iii)(C)(6) of Regulation S-K. WPS is a wholly-owned subsidiary of WEC Energy Group, Inc., Commission File No. 001-09057, and such compensatory plans, contracts or arrangements are filed as exhibits to WEC Energy Group's periodic reports under the Securities Exchange Act of 1934. |
| **19** | **Insider Trading Policies and Procedures** | **Insider Trading Policies and Procedures** |
|  | <u>[19.1](a2025wps10kexhibit191.htm)</u> | <u>[Corporate Securities Trading Policy](a2025wps10kexhibit191.htm)</u> |
| **23** | **Consents of Experts and Counsel** | **Consents of Experts and Counsel** |
|  | <u>[23.1](a2025wps10kexhibit231.htm)</u> | <u>[Deloitte & Touche LLP – Milwaukee, WI, Consent of Independent Registered Public Accounting Firm for WPS.](a2025wps10kexhibit231.htm)</u> |
| **31** | **Rule 13a-14(a) / 15d-14(a) Certifications** | **Rule 13a-14(a) / 15d-14(a) Certifications** |
|  | <u>[31.1](a2025wps10kexhibit311.htm)</u> | <u>[Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a2025wps10kexhibit311.htm)</u> |
|  | <u>[31.2](a2025wps10kexhibit312.htm)</u> | <u>[Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a2025wps10kexhibit312.htm)</u> |
| **32** | **Section 1350 Certifications** | **Section 1350 Certifications** |
|  | <u>[32.1](a2025wps10kexhibit321.htm)</u> | <u>[Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a2025wps10kexhibit321.htm)</u> |
|  | <u>[32.2](a2025wps10kexhibit322.htm)</u> | <u>[Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](a2025wps10kexhibit322.htm)</u> |

---

*2025 Form 10-K* 100 *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

---

| | | |
|:---|:---|:---|
| **Number** | | **Exhibit** |
| **101** | **Interactive Data File** | **Interactive Data File** |
|  | 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
|  | 101.SCH | Inline XBRL Taxonomy Extension Schema |
|  | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase |
|  | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase |
|  | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase |
|  | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase |
| **104** | **Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)** | **Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)** |

---

# Portions of this exhibit have been redacted and are subject to a confidential treatment request filed with the Secretary of the SEC pursuant to Rule 24b-2 under the Securities and Exchange Act of 1934, as amended. The redacted material was filed separately with the SEC.

**ITEM 16. FORM 10-K SUMMARY**

None.

*2025 Form 10-K* 101 *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**SCHEDULE II**

**WISCONSIN PUBLIC SERVICE CORPORATION**

**VALUATION AND QUALIFYING ACCOUNTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Allowance for Doubtful Accounts**<br>***(in millions)*** | **Balance at Beginning of Period** | **Expense** <sup>(1)</sup> | **Deferral** | **Net Write-offs** <sup>(2)</sup> | **Balance at End of Period** |
| **December 31, 2025** | $**8.6** | $**17.4** | $**(7.8)** | $**(10.4)** | $**7.8** |
| December 31, 2024 | 10.9 | 7.8 | 0.8 | (10.9) | 8.6 |
| December 31, 2023 | 11.7 | 5.6 | 3.3 | (9.7) | 10.9 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Net of recoveries.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Represents amounts written off to the reserve, net of adjustments to regulatory assets.

*2025 Form 10-K* 102 *Wisconsin Public Service Corporation*

------

*<u>[**Table of Contents**](#i301901e926ef452f991eaa0be03c223a_10)</u>*

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | By | **WISCONSIN PUBLIC SERVICE CORPORATION**<br>/s/ SCOTT J. LAUBER |
| **Date:** | February 20, 2026 | Scott J. Lauber |
| | | Chairman of the Board and Chief Executive Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| /s/ SCOTT J. LAUBER | February 20, 2026 |
| Scott J. Lauber, Chairman of the Board, Chief Executive Officer and Director -- |  |
| Principal Executive Officer |  |
| /s/ XIA LIU | February 20, 2026 |
| Xia Liu, Executive Vice President, Chief Financial Officer and Director -- |  |
| Principal Financial Officer |  |
| /s/ WILLIAM J. GUC | February 20, 2026 |
| William J. Guc, Vice President and Controller -- |  |
| Principal Accounting Officer |  |
| /s/ MICHAEL W. HOOPER | February 20, 2026 |
| Michael W. Hooper, Director |  |
| /s/ KYLE A. HOOPS | February 20, 2026 |
| Kyle A. Hoops, Director |  |
| /s/ MARGARET C. KELSEY | February 20, 2026 |
| Margaret C. Kelsey, Director |  |

---

**Supplemental Information to be Furnished with Reports Filed Pursuant to Section 15(d) of the Act by Registrants Which Have Not Registered Securities Pursuant to Section 12 of the Act:**

Wisconsin Public Service Corporation is not required to send an annual report or proxy statement to its sole shareholder, Integrys Holding, Inc., a wholly owned subsidiary of WEC Energy Group, Inc., and will not prepare such a report after the filing of this Annual Report on Form 10-K for the year ended December 31, 2025. Accordingly, Wisconsin Public Service Corporation will not file such a report with the Securities and Exchange Commission.

*2025 Form 10-K* 103 *Wisconsin Public Service Corporation*

## Exhibit 19.1

**Exhibit 19.1**

**WEC Energy Group, Inc.**

**Corporate Securities Trading Policy**

**Introduction**

The purchase or sale of securities while aware of material, non-public information, or the disclosure of material, non-public information to others who then trade in securities of WEC Energy Group or its subsidiaries (collectively, the "Company"), is prohibited by the federal securities laws. Insider trading violations are pursued vigorously by the U.S. Securities and Exchange Commission ("SEC") and Department of Justice and are punished severely. While the regulatory authorities concentrate their efforts on the individuals who trade, or who tip inside information to others who trade, the federal securities laws also impose potential liability on companies and other "controlling persons" if they fail to take reasonable steps to prevent insider trading by Company personnel.

The purpose of this policy is to promote compliance with applicable securities laws and to help all Company personnel, including directors, officers and other employees, avoid the severe consequences associated with violations of insider trading laws. The policy also is intended to prevent even the appearance of improper conduct by any such Company personnel.

***Company personnel may not trade in any type of Company securities while in possession of material, non- public information (other than pursuant to a pre-approved 10b5-1 trading plan), as more fully described in this policy.***

Directors, officers and certain other designated employees of the Company may only trade in Company securities during designated trading windows and must first obtain pre-clearance from the General Counsel before doing so, as described under the heading Additional Restrictions and Guidelines for Directors, Officers, and Certain Other Persons Designated by the General Counsel.

The policy sets forth additional minimum standards Company personnel must follow when trading in Company securities.

The policy sets forth additional minimum standards Company personnel must follow when trading in Company securities.

This policy is not intended to serve as legal advice. If you have any questions or concerns, you should consult with the General Counsel or seek the advice of legal counsel as to the law and its application to your specific situation.

**Applicability**

Except as otherwise provided, all directors, officers and other active employees of the Company, as well as their immediate families and members of their household, are subject to the policies set forth herein.

**Policy Statement**

It is the policy of the Company that no director, officer or other employee of the Company (a) may directly or through family members or other persons or entities, trade any Company security while in possession of material, non-public information relating to the Company (other than pursuant to a pre-approved 10b5-1 trading plan); (b) may pass material, non-public information on to others inside or outside the Company, including family and friends; or (c) who, in the course of working for the Company, learns of material, non-public information about a company with which the Company does business, including a customer or supplier of the Company, or a company that is involved in a potential transaction with the Company, may trade in that company's securities until the information becomes public or is no longer material.

Trading activity includes transactions involving stock; derivative securities, such as put and call options; and debt securities, such as bonds, notes and debentures.

Transactions that may be necessary or justifiable for independent reasons (such as the need to raise money for an emergency expenditure) are not exempt from the policy. The securities laws do not recognize such mitigating circumstances.

It is also the policy of the Company that the Company itself will not engage in transactions in securities of the Company while aware of material non-public information relating to the Company or its securities.

*Twenty-Twenty Hindsight:* Remember, anyone scrutinizing your transactions will be doing so after the fact, with the benefit of hindsight. As a practical matter, before engaging in any transaction, you should carefully consider how enforcement authorities and others might view the transaction in hindsight.

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*Directors, officers and certain employees of the Company designated by the Board of Directors and/or the General Counsel are subject to trading windows and must obtain pre-clearance from the General Counsel or her/his designee before buying or selling any securities of the Company. See heading Additional Restrictions and Guidelines for Directors, Officers, and Certain Other Persons Designated by the General Counsel.*

**Definitions and Explanations**

**a)&nbsp;&nbsp;&nbsp;&nbsp;"Material" Information**

Under Company policy and United States laws, information is material if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A reasonable investor would consider the information important in determining whether to buy, hold or sell securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The information, whether positive or negative, would likely affect the market price of a company's securities.

While it is not possible to define all categories of material information, some examples of information that ordinarily would be regarded as material are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Projections of future earnings or losses, or other earnings guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant write-downs and additions to reserves for bad debts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Earnings that are inconsistent with the consensus expectations of the investment community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Impending bankruptcy or the existence of severe liquidity problems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A pending or proposed merger, acquisition or tender offer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A pending or proposed acquisition or disposition of a significant asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A change in dividend policy, the declaration of a stock split, or an offering of additional equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A change in senior management or extraordinary management developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The gain or loss of a significant customer or supplier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cybersecurity risks and incidents, including vulnerabilities and breaches; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Major litigation.

Information may be material even if it relates to future, speculative or contingent events. Non-public information could be material even with respect to companies that do not have publicly traded stock, such as those with outstanding bonds or bank loans.

**b)&nbsp;&nbsp;&nbsp;&nbsp;"Non-public" Information**

Information is considered to be non-public unless it has been adequately disclosed to the public, which means that the information must be *publicly disseminated and sufficient time* must have passed for the securities markets to digest the information. You may not attempt to "beat the market" by trading simultaneously with, or shortly after, the official release of material information. To avoid the appearance of impropriety, as a general rule, information should not be considered fully absorbed by the marketplace until after the first full trading day after the information is released. If, for example, the Company were to make an announcement during the day on a Monday, you should not trade in the Company's securities until the market opens Wednesday. If an announcement is made prior to the market opening on a Friday, Monday generally would be the first eligible trading day. Despite this general rule, individuals subject to trading windows may not trade until the trading window opens, which generally occurs two full trading days after earnings are released. You should presume that information is non-public unless you can point to its official release by the Company in at least one of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Public filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Issuance of press releases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Meetings with members of the press and the public; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• External website.

It is important to note that information is not necessarily public merely because it has been discussed in the press, which will sometimes report rumors.

*Confidential Corporate Information*

The Company has strict guidelines and safeguards that are stated in its Financial Communications Disclosure Policy, Code of Business Conduct, Information Security Policy, and this policy, that prohibit all employees and directors from sharing confidential corporate information with anyone other than those whose job responsibilities require them to know such information.

------

**c)&nbsp;&nbsp;&nbsp;&nbsp;"Tipping" of Material, Non-Public Information is Prohibited**

The Company prohibits the sharing of confidential corporate information with those whose job does not require such information. It is also illegal for you or anyone else to convey material, non-public information to another ("tipping") if you know or have reason to believe that the person will misuse such information by trading securities based on that information or pass such information onto others. This applies regardless of whether the "tippee" is related to you or is an entity, such as a trust or a corporation, and regardless of whether you receive any monetary benefit from the tippee.

Trading on or conveying material, non-public information may also breach contractual obligations assumed by the Company to or on behalf of others. Apart from contractual remedies (such as damages and injunctions), severe, and possibly irreparable, damage to the reputation of the Company may result from trading on, tipping or other improper use of material, non-public information.

**d)&nbsp;&nbsp;&nbsp;&nbsp;Transactions by Family Members**

This policy also applies to your family members who reside with you (including a spouse, a child living with you or away at college, stepchildren, grandchildren, parents, stepparents, grandparents, siblings and in-laws), anyone else who lives in your household, and any family members who do not live in your household but whose transactions in Company securities are directed by you or are subject to your influence or control, such as parents or children who consult with you before they trade in Company securities (collectively referred to as "Family Members").

You are responsible for the transactions of these other persons and therefore should make them aware of the need to confer with you before they trade in Company securities, and you should treat all such transactions for the purposes of this policy and applicable securities laws as if the transactions were for your own account. This policy does not, however, apply to personal securities transactions of Family Members where the purchase or sale decision is made by a third party not controlled by, influenced by or related to you or your Family Members.

**e)&nbsp;&nbsp;&nbsp;&nbsp;Transactions by Entities that You Influence or Control**

This Policy applies to any entities that you influence or control, including any corporations, partnerships or trusts (collectively referred to as "Controlled Entities"), and transactions by these Controlled Entities should be treated for the purposes of this Policy and applicable securities laws as if they were for your own account.

**Penalties for Violations of the Policy and Insider Trading Laws**

The personal consequences to you of illegally trading securities while in possession of material, non-public information can be quite severe. Certain securities laws provide that an individual is subject to possible imprisonment and significant fines. These laws apply to all employees, not just officers and directors. Subject to applicable law, Company employees who violate this policy may also be subject to discipline by the Company, up to and including termination of employment, even if the conduct is not considered illegal.

**Transactions under Company Plans**

**a)&nbsp;&nbsp;&nbsp;&nbsp;401(k) Plan**

Purchases of Company stock under the 401(k) plan based on your previous instructions to regularly deduct money from your paycheck for contribution to the plan **are *not*** affected by the Company's policy. The policy ***does apply***, however, to certain elections if such election will affect holdings in the WEC Energy Group stock funds, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increasing or decreasing the percentage of your periodic contributions that will be allocated to the WEC Energy Group stock funds,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making an intra-plan transfer of an existing account balance into or out of the WEC Energy Group stock funds,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Borrowing money against your 401(k) plan account if the loan will result in a liquidation of some or all of your WEC Energy Group stock funds balance, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pre-payment of a loan if such pre-payment will result in allocation of loan proceeds to the WEC Energy Group stock funds.

**b)&nbsp;&nbsp;&nbsp;&nbsp;Executive and Director Deferred Compensation Plans (EDCP and DDCP)**

Purchases in the WEC Energy Group measurement fund resulting from your regular contribution of money to the EDCP or DDCP pursuant to your payroll or other deduction elections **are *not*** affected by the Company's policy. The policy ***does apply***, however, to certain elections you may make under the plan, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An election to increase or decrease the percentage of your periodic contributions that will be allocated to the WEC Energy Group measurement fund,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An election to make an intra-plan transfer of an existing account balance into or out of the WEC Energy Group measurement fund, and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A hardship withdrawal if it would result in a liquidation of some or all of your WEC Energy Group measurement fund balance.

**c)&nbsp;&nbsp;&nbsp;&nbsp;Stock Purchase and Dividend Reinvestment Plan ("Stock Plus Investment Plan")**

The Company's policy does ***not*** apply to shares acquired as a result of the regular reinvestment of cash dividends in Company stock, participation in the Automatic Investment Option, stock splits, stock dividends, or similar distributions within the Stock Plus Investment Plan. The policy ***does apply***, however, to your election to participate in the Stock Plus Investment Plan or change your level of participation in that plan, as well as any voluntary purchases of Company stock resulting from additional contributions you choose to make within the Stock Plus Investment Plan. The policy also applies to your sale of any Company stock, whether the sale is through the Stock Plus Investment Plan or through an independent broker.

**d)&nbsp;&nbsp;&nbsp;&nbsp;Stock Option Exercises**

The policy ***applies*** to any sale of stock as part of a broker-assisted cashless exercise of an option, or any other market sale of Company securities for the purpose of generating the cash needed to pay the exercise price of an option or tax obligation due on vesting of an equity award. Other than in very limited circumstances, the policy also applies to the exercise of an employee stock option where the employee holds all of the shares acquired upon exercise.

**Transactions that are Prohibited**

The Company considers it improper and inappropriate to engage in short-term or speculative transactions in the Company's securities. Therefore, it is the Company's policy that the following transactions are entirely prohibited:

**a)&nbsp;&nbsp;&nbsp;&nbsp;Short Sales**

Short sales of the Company's securities evidence an expectation on the part of the seller that the securities will decline in value, where the securities are sold with the intention of subsequently repurchasing them at a lower price, and therefore signal to the market that the seller has no confidence in the Company or its short- term prospects. In addition, short sales may reduce the seller's incentive to improve the Company's performance. For these reasons, short sales of the Company's securities are prohibited. In addition, Section 16(c) of the Exchange Act prohibits certain officers and directors from engaging in short sales.

**b)&nbsp;&nbsp;&nbsp;&nbsp;Publicly Traded Options**

A transaction in publicly traded options is, in effect, a bet on the short-term movement of the Company's stock and therefore creates the appearance that such trading is based on inside information. Transactions in options also may focus a person's attention on short-term performance at the expense of the Company's long-term objectives. Accordingly, transactions in puts, calls or other derivative securities, on an exchange or in any other organized market, are prohibited.

**c)&nbsp;&nbsp;&nbsp;&nbsp;Hedging Transactions**

Certain financial instruments are designed to hedge or offset any potential decrease in the market value of Company securities. Individuals engaged in such transactions may no longer have the same objectives as the Company's other stockholders. Therefore, hedging or monetization transactions (including, but not limited to, prepaid variable forward contracts, equity swaps, collars and exchange funds) are prohibited.

**d)&nbsp;&nbsp;&nbsp;&nbsp;Margin Accounts and Pledges**

Securities held in a margin account may be sold by the broker without the customer's consent if the customer fails to meet a margin call. Similarly, securities pledged as collateral for a loan may be sold in foreclosure if the borrower defaults on the loan. Because a margin sale or foreclosure sale may occur at a time when the pledgor is aware of material, non-public information or otherwise is not permitted to trade in Company securities, holding Company securities in a margin account or pledging Company securities as collateral for a loan is prohibited.

**Post-Termination Transactions**

This policy continues to apply to your transactions in Company securities even after termination of employment. If you are in possession of material, non-public information when your employment terminates, you may not trade in Company securities until at least one full trading day after that information has become public or is no longer material.

------

**Additional Restrictions and Guidelines for Directors, Officers, and Certain Other Persons Designated by the General Counsel**

**a)&nbsp;&nbsp;&nbsp;&nbsp;Mandatory Pre-clearance Procedure**

Directors and officers of the Company and any other persons designated by the General Counsel as being subject to the Company's pre-clearance procedures, along with their Family Members and Controlled Entities, may not engage in any transaction involving the Company's securities (including entering into a 10b5-1 trading plan or any gift involving Company securities) without first obtaining pre-clearance of the transaction. A request for pre-clearance should be submitted to the General Counsel or her/his designee using the WEC Pre-Clearance Request Form only after a trading window has opened and at least one business day prior to the date of the proposed transaction. The General Counsel or her/his designee will then determine whether the transaction may proceed and, if so, assist in complying with any reporting requirements. It may take up to one full day to obtain pre-clearance. Clearance of a transaction is only valid for a five-day period (or until the closing of the trading window, whichever is shorter). If the transaction order is not placed within that five-day period, a new request must be submitted using the WEC Pre-Clearance Request Form before conducting the transaction.

**b)&nbsp;&nbsp;&nbsp;&nbsp;Trading Window**

Except as otherwise explicitly provided in this policy, individuals subject to pre-clearance procedures, as well as their Family Members and Controlled Entities, may only trade in, or enter into a 10b5-1 trading plan involving Company securities, during an open trading window, which generally begins two full trading days after the public release of the Company's quarterly or annual earnings and ends at the close of business on the fourth calendar day in the last month of the respective fiscal quarter. Trading in the Company's securities during the trading window should not be considered a "safe harbor," and all directors, officers and the other designated persons should use good judgement at all time. To review the current trading calendar, click on the link to the Trading Windows.

From time to time, an event may occur that is material to the Company and is known by only a few directors, officers and/or employees. In this case, the General Counsel may impose special blackout periods during which certain persons will be prohibited from trading in Company securities, even though the trading window would otherwise be open. If a special blackout period is imposed, the General Counsel, or her/his designee, will notify affected individuals, who should thereafter not engage in any transaction involving the purchase or sale of the Company's securities and should not disclose to others the fact of such blackout period. If a person subject to the pre-clearance procedures is notified of a special blackout period after receiving approval to trade but before the transaction is placed, such pre-clearance will be considered terminated. Similarly, individuals subject to the pre-clearance procedures may not be pre-cleared during the special blackout period and the Company may not disclose the reason for the special blackout period.

**c)&nbsp;&nbsp;&nbsp;&nbsp;Short-term Trading**

Section 16(b) of the Securities Exchange Act of 1934 ("Exchange Act") prohibits directors and certain officers from engaging in short-term trading. Therefore, any such director or officer who purchases Company stock in the open market may not sell Company stock during the six months following the purchase and vice versa. This prohibition does not apply to most employee benefit plan acquisitions and dispositions.

**d)&nbsp;&nbsp;&nbsp;&nbsp;Rule 10b5-1 Trading Plans**

A 10b5-1 trading plan is a contract to purchase or sell securities that is established by a Company insider, prior to effecting any transactions.

Rule 10b5-1 under the Exchange Act provides a defense from insider trading liability under Rule 10b-5. In order to be eligible to rely on this defense, a person must enter into a Rule 10b5-1 plan for transactions in Company securities that meets certain conditions specified in the Rule. If the plan meets the requirements of Rule 10b5-1, Company securities may be purchased or sold without regard to certain insider trading restrictions. A person must enter into a Rule 10b5-1 plan in good faith (*i.e.,* not as part of a scheme or plan to evade the prohibitions of the Rule) and act in good faith with respect to the plan. A Rule 10b5-1 plan must be entered into at a time when the person entering into the plan is not aware of material, non-public information. Once the plan is adopted, the person must not exercise any influence over the amount of securities to be traded or the date of the trade. The plan must either specify the amount, pricing and timing of transactions in advance or delegate discretion on these matters to an independent third party.

A Rule 10b5-1 plan and any modification to a plan must be approved by the Company's General Counsel and meet the requirements of Rule 10b5-1 and these guidelines. Any plan or modification to a plan must be submitted for approval at least one business day prior to the entry into the Rule 10b5-1 plan. No further pre-approval of transactions conducted pursuant to the Rule 10b5-1 plan will be required.

You are not required to seek approval from the Company to terminate a Rule 10b5-1 plan. You should carefully analyze all the relevant facts and circumstances before terminating a Rule 10b5-1 plan, bearing in mind that the SEC has indicated that once the plan is terminated the affirmative defense may not apply to any trades that were made pursuant to the plan if such

------

termination calls into question whether the good faith requirement was met. If you do terminate a Rule 10b5-1 plan, you must notify the Company in writing within one business day of such termination.

The following guidelines apply to all Rule 10b5-1 plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may only enter into or modify a Rule 10b5-1 plan during an open trading window and only at a time when you are not in possession of material, non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must request pre-clearance before entering into or modifying a Rule 10b5-1 plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Rule 10b5-1 plan is terminated early, you must wait at least 30 days before trading in any Company securities outside of the plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Rule 10b5-1 plan is terminated early, you must wait until the commencement of the next open trading window before a new plan may be adopted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directors and officers subject to Section 16 may not commence sales under a Rule 10b5-1 plan until the later of 1) 90 days following the date of adoption of the plan or 2) two business days after the filing of the Company's Form 10-Q or 10-K for the quarter in which the plan was adopted. The cooling-off period cannot exceed 120 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insiders that are not Section 16 reporting persons may not commence sales under a Rule 10b5-1 plan until at least 30 days following the date of adoption of the plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any modification to the price, amount or timing of purchase or sales under a plan is subject to the applicable cooling-off period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may not enter into any transaction in the same type of Company securities that are the subject of a Rule 10b5-1 plan while such plan is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may not have more than one Rule 10b5-1 plan in effect for any type of Company securities, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may enter into a series of separate contracts using different brokers to execute trades pursuant to a single trading plan if all contracts, taken as a whole, comply with the applicable provisions of Rule 10b5-1. Any modification of one plan will also be a modification to all other plans held with any other broker. You may substitute one broker for another broker as long as any terms with respect to the amount, pricing and timing of transactions remain identical after the substitution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may maintain two separate plans at the same time if trading under the later-commencing plan does not begin until after all trades under the earlier plan have been completed or expire without execution. However, if the first trading plan is terminated early, the first trade under the later commencing plan must not be scheduled to occur until after the effective cooling-off period following the termination of the earlier plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may maintain, in addition to a Rule 10b5-1 plan, a "sell-to-cover" plan to satisfy tax withholding obligations at the time a compensatory award vests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may enter into a plan designed to cover a single-trade if you have not adopted another single-trade plan during the 12 months preceding the adoption of such plan.

**SEC Reporting Requirements**

Section 16 of the Exchange Act and Rule 144 of the Securities Act of 1933 require directors and executive officers to file reports regarding their ownership of and transactions in Company equity securities with the Securities and Exchange Commission. These reports include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Within ten days of election or appointment, a Form 3 stating the insider's beneficial ownership of Company securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whenever there has been a change in their beneficial ownership (including changes resulting from a gift), an insider must file a Form 4 within two business days unless the transaction qualifies for delayed reporting on Form 5; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Within 45 days after the close of the Company's fiscal year, an insider must file a Form 5 to cover any transactions in Company securities which were eligible for delayed reporting (and not earlier reported on Form 4) and transactions that should have been but were not reported on Form 4.

*Covered Persons*

The filing requirements apply to all Section 16 reporting persons.

*Covered Transactions*

In addition to purchases and sales, the two-day reporting requirement applies to most changes in ownership, including stock and option grants, as well as certain other transfers. The reporting requirement also applies to transactions in Company stock by Family Members and Controlled Entities.

------

*Automatic Dividend Reinvestments*

Generally, directors and executive officers are not required to report purchases of Company stock as a result of the automatic reinvestment of dividends. However, when a transaction occurs in which a Form 4 filing is required, the adjusted ownership total that is reported must be inclusive of those purchases.

**e)&nbsp;&nbsp;&nbsp;&nbsp;Broker Interface Procedures**

The accelerated reporting of transactions requires tight interface with brokers handling transactions for our directors and executive officers. A knowledgeable, alert broker can act as a gatekeeper, helping ensure compliance with the pre-clearance procedures and helping prevent inadvertent violations. We have established a coordinated procedure with the Morgan Stanley Smith Barney (MSSB) brokerage firm. As a result, directors and executive officers are encouraged to use MSSB as their broker.

Whether you choose to utilize MSSB or your own broker, we will require that you and your broker comply with the following requirements regarding the broker handling your transaction in Company stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)&nbsp;&nbsp;&nbsp;&nbsp;That your broker has put a restriction on your accounts so that the broker may not transact in Company securities without your knowledge and approval.

ii)&nbsp;&nbsp;&nbsp;&nbsp;Not to enter any order (except for orders under pre-approved Rule 10b5-1 plans) without:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First verifying with the Company that your transaction was pre-cleared; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Complying with the brokerage firm's compliance procedures (e.g., Rule 144).

iii)&nbsp;&nbsp;&nbsp;&nbsp;To report immediately to the Company the details of every transaction involving Company stock, including gifts, transfers, pledges, and all 10b5-1 transactions, as well as changes in ownership as a result of automatic dividend reinvestments.

The General Counsel or her/his designee can assist in making the necessary arrangements to establish a coordinated procedure with your broker.

**Compliance and Certification**

**a)&nbsp;&nbsp;&nbsp;&nbsp;Individual Responsibility**

Every director, officer and other employee has the individual responsibility to comply with this Policy and applicable law. Such individuals may, from time to time, have to forego a proposed transaction in the Company's securities even if he or she planned to make the transaction before learning of the material, non- public information and even though the individual believes he or she may suffer an economic loss or forego anticipated profit by waiting.

**b)&nbsp;&nbsp;&nbsp;&nbsp;Reporting Violations/Seeking Advice**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If you receive material, non-public information that you are not authorized to receive or that you do not legitimately need to know to perform your employment responsibilities, you may not share it with anyone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If you receive confidential information and are unsure if it is within the definition of material, non-public information or whether its release might be contrary to a fiduciary or other duty or obligation, you may not share it with anyone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You should refer suspected violations of this policy to the Compliance Officer.

Any person who has a question about this policy or its application to any proposed transaction may obtain additional guidance from the General Counsel. Consulting your colleagues can have the effect of exacerbating the problem.

**c)&nbsp;&nbsp;&nbsp;&nbsp;Certifications**

Directors, officers and certain employees shall periodically be required to submit certification of their training and compliance with this policy.

**Related Resources**

Code of Business Conduct

Financial Communication Disclosure

Information Security Policy

Trading Windows

Pre-Clearance Trading Form

------

**WEC ENERGY GROUP, INC.** 

**PRE-CLEARANCE REQUEST FORM**

**<u>Name:</u>** ____________________________________________________________________

**<u>Is this request for a pre-clearance extension?</u>** □ Yes □ No

**<u>Transaction Type (Please check all the boxes that are applicable)</u>**

---

| | |
|:---|:---|
| □ Exercise and sell options | □ Exercise and hold options |
| □ Sell stock on open market | □ Purchase stock on open market |
| □ Modify dividend reinvestment | □ Contribution to trust or charitable account |
| □ Gift or charitable donation | □ Transfer due to Domestic Relations Order |
| &nbsp;&nbsp;&nbsp;&nbsp;□ Set-up or modify 10b5-1 Plan<br>□ 401(k) transaction\* (check applicable boxes)<br>□ Increase/decrease allocation to WEC Energy Group<br>stock fun<br>□ 401(k) loan transaction<br>□ Intra-plan transfer into/out of WEC Energy Group<br>stock fund | &nbsp;&nbsp;&nbsp;&nbsp;□ Modify Executive Deferred Compensation Plan (EDCP) allocations or contributions (check applicable boxes)<br>□ Increase/decrease allocation to WEC Energy Group<br>measurement fund<br>□ Intra-plan transfer into/out of WEC Energy Group<br>measurement fund<br>□ Hardship withdrawal that impacts your WEC Energy<br>Group measurement fund balance |
| \* You do not need to seek pre-clearance if you are changing the % of your compensation (e.g., 3% to 4%) being deducted for future contributions to your 401(k) account, unless you are starting, modifying or terminating an allocation to the WEC Energy Group stock funds. | \* You do not need to seek pre-clearance if you are changing the % of your compensation (e.g., 3% to 4%) being deducted for future contributions to your 401(k) account, unless you are starting, modifying or terminating an allocation to the WEC Energy Group stock funds. |

---

<u>Number of options/shares or monetary value of the transaction(s). In the case of options, please indicate the grand date(s):</u>

<u>If setting up a 10b5-1 Plan, please describe the transaction(s) to be covered by the plan. If the plan will cover options, please indicate the grant date(s) and number of options</u>

□ Yes □ No&nbsp;&nbsp;&nbsp;&nbsp;<u>Are you subject to a current blackout restriction due to the creation or termination of a 10b5-1 plan?</u>

□ Yes □ No&nbsp;&nbsp;&nbsp;&nbsp;<u>Do you possess any material non-public information?</u>

<u>Please describe the transaction(s) in your own words:</u> 

By signing below, I confirm that to the best of my knowledge, this information is correct.

Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date

Please email your request to the Corporate Affairs Department (ca-dept@wecenergygroup.com). It may take up to 24-hours to obtain pre-clearance. Clearance of a transaction is valid for a five-day period (or until the trading window closes, whichever occurs first). If the transaction order is not placed within that five-day period, you must seek a pre-clearance extension.

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in Registration Statement No. 333-279582 on Form S-3 of our report dated February 20, 2026, relating to the financial statements and financial statement schedule of Wisconsin Public Service Corporation appearing in this Annual Report on Form 10-K of Wisconsin Public Service Corporation for the year ended December 31, 2025.

**<u>/s/ DELOITTE & TOUCHE LLP</u>**

Milwaukee, Wisconsin

February 20, 2026

## Exhibit 31.1

**Exhibit 31.1**

**Certification Pursuant to**

**Rule 13a-14(a) or 15d-14(a),** 

**as Adopted Pursuant to**

**Section 302 of the Sarbanes-Oxley Act of 2002**

I, Scott J. Lauber, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Annual Report on Form 10-K of Wisconsin Public Service Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 20, 2026

---

| |
|:---|
| /s/ SCOTT J. LAUBER |
| Scott J. Lauber<br>Chairman of the Board and Chief Executive Officer<br>(Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification Pursuant to**

**Rule 13a-14(a) or 15d-14(a),** 

**as Adopted Pursuant to**

**Section 302 of the Sarbanes-Oxley Act of 2002**

I, Xia Liu, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Annual Report on Form 10-K of Wisconsin Public Service Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 20, 2026

---

| |
|:---|
| /s/ XIA LIU |
| Xia Liu<br>Executive Vice President and Chief Financial Officer<br>(Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification Pursuant to**

**18 U.S.C. Section 1350, As Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report of Wisconsin Public Service Corporation (the "Company") on Form 10-K for the period ended December 31, 2025, as filed with the Securities and Exchange Commission on February 20, 2026 (the "Report"), I, Scott J. Lauber, Chairman of the Board and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ SCOTT J. LAUBER |
| Scott J. Lauber<br>Chairman of the Board and Chief Executive Officer |
| February 20, 2026 |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification Pursuant to**

**18 U.S.C. Section 1350, As Adopted Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report of Wisconsin Public Service Corporation (the "Company") on Form 10-K for the period ended December 31, 2025, as filed with the Securities and Exchange Commission on February 20, 2026 (the "Report"), I, Xia Liu, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ XIA LIU |
| Xia Liu<br>Executive Vice President and Chief Financial Officer |
| February 20, 2026 |

---

<br>