WEC ENERGY GROUP INC
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
WEC$115.87-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0000107815-24-000155
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000107815-24-000203
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 283 previous paragraphs and 414 current paragraphs.
166 unchanged; 82 reworded; 128 added; 30 removed; 5 previous and 38 current paragraphs rearranged.
Tables are not compared: 47 previous and 79 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (128)
Current report
Earnings decreased $78.4 million during the second quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the $78.4 million decrease in earnings were:
Current report
•A $53.5 million decrease in net income attributed to common shareholders at the Wisconsin segment, driven by higher operating expenses. Lower gains on the sale of land and increases in depreciation and amortization expense and storm restoration expenses all contributed to the higher operating expenses. A negative quarter-over-quarter impact from collections of fuel and purchased power costs and an increase in interest expense also drove the decrease in net income attributed to common shareholders.
Current report
•A $27.1 million increase in the net loss attributed to common shareholders at the corporate and other segment, driven by a negative impact from an increase in an interim income tax expense and higher interest expense.
Current report
These decreases in earnings were partially offset by a $7.4 million increase in net income attributed to common shareholders at the non-utility energy infrastructure segment, driven by a positive impact from We Power due to continued capital investment, higher operating income at WECI, and an increase in PTCs from our non-utility renewable generating facilities.
Current report
The Wisconsin segment's contribution to net income attributed to common shareholders was $132.1 million during the second quarter of 2024, representing a $53.5 million, or 28.8%, decrease over the same quarter in 2023. The decrease was driven by higher operating expenses. Lower gains on the sale of land and increases in depreciation and amortization expense and storm restoration expenses all contributed to the higher operating expenses. A negative quarter-over-quarter impact from collections of fuel and purchased power costs and an increase in interest expense also drove the decrease in net income attributed to common shareholders.
Current report
This decrease in margins was partially offset by a $3.6 million increase in margins related to higher retail sales volumes, driven by the impact of warmer spring weather in WE's service area during the second quarter of 2024, compared with the same quarter in 2023. As measured by cooling degree days, the second quarter of 2024 was 27.8% warmer than the same quarter in 2023 in the Milwaukee area.
Current report
Natural gas revenues decreased $25.3 million during the second quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas decreased approximately 16% during the second quarter of 2024, compared with the same quarter in 2023. The remaining drivers of changes in natural gas revenues are described in the discussion of natural gas utility margins below.
Current report
Other operating expenses at the Wisconsin segment increased $56.1 million during the second quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the increase in other operating expenses were:
Current report
•A $22.2 million decrease in pre-tax gains on the sales of land, related to the land sale at the site of our former Pleasant Prairie power plant in 2023. See Note 3, Disposition, for more information.
Current report
•An $18.0 million increase in depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.
Current report
•A $4.1 million increase in transmission expense due to a deferral approved by the PSCW in June 2023, in response to a FERC order eliminating reactive power compensation to our utilities.
Current report
Other income, net at the Wisconsin segment decreased $5.0 million during the second quarter of 2024, compared with the same quarter in 2023, due in part to lower AFUDC–Equity at WG driven by its LNG facility going into service in February 2024.
Current report
Income tax expense at the Wisconsin segment decreased $19.2 million during the second quarter of 2024, compared with the same quarter in 2023, driven by lower pre-tax income.
Current report
The Illinois segment's contribution to net income attributed to common shareholders was $25.7 million during the second quarter of 2024, representing a $4.4 million, or 14.6%, decrease over the same quarter in 2023. The lower earnings were driven by a decrease in natural gas utility margins related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. SMP costs that were previously being recovered under PGL's QIP rider are now included in PGL's base rates. As base revenues are lower during the second quarter when natural gas usage is lower, this rate design change drove a decrease in second quarter 2024 margins.
Current report
Natural gas revenues increased $3.3 million during the second quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas increased approximately 15% during the second quarter of 2024, compared with the same quarter 2023. The remaining drivers of changes in natural gas revenues are described in the discussion of margins below.
Current report
•An $11.1 million decrease in expenses driven by an ICC order received in May 2023 related to an annual prudency review of PGL's and NSG's UEA riders, which required refunds to ratepayers starting in September 2023. See Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Regulatory Recovery for more information.
Current report
•A $6.1 million decrease in benefit costs, primarily due to a ratemaking adjustment related to certain previously capitalized costs in rate base during the second quarter of 2023.
Current report
Interest expense at the Illinois segment increased $2.1 million during the second quarter of 2024, compared with the same quarter in 2023, due primarily to the impact of PGL and NSG issuing long-term debt in November 2023.
Current report
Income tax expense at the Illinois segment decreased $0.7 million during the second quarter of 2024, compared with the same quarter in 2023, driven by a decrease in pre-tax income.
Current report
The other states segment's net income attributed to common shareholders was $0.6 million during the second quarter of 2024, representing a $3.1 million, or 83.8%, decrease over the same quarter in 2023. The decrease was driven by higher operating expenses, primarily due to increases in bad debt expense and property and revenue taxes.
Current report
•A $1.5 million increase related to MGU's rate increase approved by the MPSC that was effective January 1, 2024. See Note 26, Regulatory Environment, in our 2023 Annual Report on Form 10-K for more information.
Current report
•A $1.2 million increase related to MERC's final rate increase approved by the MPUC in November 2023. See Note 25, Regulatory Environment, for more information.
Current report
These increases were partially offset by a $1.9 million decrease related to lower sales volumes, primarily driven by warmer weather. As measured by heating degree days, the three months ended June 30, 2024 were 6.8% and 29.9% warmer than the same quarter in 2023 at MERC and MGU, respectively.
Current report
Other operating expenses at the other states segment increased $5.3 million during the second quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the increase in operating expenses were:
Current report
•A $2.1 million increase in bad debt expense, driven by the aging of MGU's arrears.
Current report
•A $0.9 million increase in depreciation and amortization expense related to continued capital investment.
Current report
Income tax expense at the other states segment decreased $1.0 million during the second quarter of 2024, compared with the same quarter in 2023, driven by lower pre-tax income.
Current report
Equity in Earnings of Transmission Affiliates
Current report
Equity in earnings of transmission affiliates increased $3.2 million during the second quarter of 2024, compared with the same quarter in 2023. This increase was primarily due to continued capital investment by ATC.
Current report
Income tax expense at the electric transmission segment increased $0.8 million during the second quarter of 2024, compared with the same quarter in 2023, driven by higher pre-tax income.
Current report
Operating income at the non-utility energy infrastructure segment increased $4.1 million during the second quarter of 2024, compared with the same quarter in 2023, driven by these items at WECI:
Current report
•A $15.2 million positive impact in 2024 related to the receipt of performance payments.
Current report
•A $3.7 million increase in PPA revenue resulting from increased generation driven by higher wind speeds.
Current report
These increases in operating income were partially offset by:
Current report
•A $7.8 million increase in operation and maintenance expenses due primarily to equipment failures at several of our renewable generation facilities.
Current report
•Recognition of $4.5 million in revenue related to Blooming Grove in 2023 for a capacity payment received from PJM Interconnection that was associated with a December 2022 cold weather event. The capacity payment was subject to a FERC complaint, so we recognized this as revenue in 2023 when FERC issued an order denying that complaint.
Current report
•A $3.7 million decrease in margin related to transmission congestion that reduced energy market prices.
Current report
•A $2.1 million decrease due to lower amounts recognized for REC sales in 2024 at Blooming Grove driven by lower contracted REC prices.
Current report
In addition to the above items at WECI, there was a $3.2 million positive impact from We Power due to continued capital investment.
Current report
Interest expense at the non-utility energy infrastructure segment decreased $1.0 million during the second quarter of 2024, compared with the same quarter in 2023, primarily due to a lower principal balance, as a result of the semi-annual principal payments on long-term debt.
Showing the first 40 of 128 passages. Open the source sections for the rest.
Removed paragraphs (30)
Previous report
•the purchase of 100 MWs of additional capacity in West Riverside.
Previous report
•Included in the capital plan are additional proposed LNG storage facilities providing approximately four Bcf of natural gas supply, which is needed to ensure gas supply for winter reliability.
Previous report
Earnings increased $114.8 million during the first quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the $114.8 million increase in earnings were:
Previous report
•A $19.2 million increase in earnings at the corporate and other segment, driven by a positive impact of an interim tax benefit and an increase in earnings from our equity method investments in technology and energy-focused investment funds. These increases were partially offset by higher interest expense.
Previous report
•A $9.2 million increase in net income attributed to common shareholders at the Wisconsin segment, driven by an increase in electric and natural gas margins related to a positive quarter-over-quarter impact from collections of fuel and purchased power costs and the impact of the Wisconsin rate case re-opener approved by the PSCW, effective January 1, 2024. These positive impacts were partially offset by a decrease in margins from lower sales volumes due to warmer winter weather, higher depreciation and amortization expense, higher costs for storm restoration, and an increase in interest expense.
Previous report
The Wisconsin segment's contribution to net income attributed to common shareholders was $266.4 million during the first quarter of 2024, representing a $9.2 million, or 3.6%, increase over the same quarter in 2023. The higher earnings were driven by an increase in electric and natural gas margins related to a positive quarter-over-quarter impact from collections of fuel and purchased power costs and the impact of the Wisconsin rate case re-opener approved by the PSCW, effective January 1, 2024. These positive impacts were partially offset by a decrease in margins from lower sales volumes due to warmer winter weather, higher depreciation and amortization expense, higher costs for storm restoration, and an increase in interest expense.
Previous report
Other operating expenses at the Wisconsin segment increased $27.6 million during the first quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the increase in other operating expenses were:
Previous report
•A $17.3 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan.
Previous report
•A $4.5 million increase in expense related to environmental remediation and related studies.
Previous report
Income tax expense at the Wisconsin segment increased $9.0 million during the first quarter of 2024, compared with the same quarter in 2023. The increase in income tax expense was due to higher pre-tax income.
Previous report
•A $5.0 million increase in depreciation and amortization expense, primarily driven by assets being placed into service as we continue to execute on our capital plan.
Previous report
•A $1.6 million increase in benefit costs, primarily due to higher deferred compensation expense during the first quarter of 2024, compared with the same quarter in 2023.
Previous report
Income tax expense at the Illinois segment increased $30.1 million during the first quarter of 2024, compared with the same quarter in 2023, driven by an increase in pre-tax income.
Previous report
The other states segment's net income attributed to common shareholders was $38.6 million during the first quarter of 2024, representing a $5.4 million, or 16.3%, increase over the same quarter in 2023. The increase was driven by lower operation and maintenance expense, primarily due to a decrease in bad debt expense. Higher natural gas margins, driven by MGU's rate increase approved by the MPSC that was effective January 1, 2024, also contributed to the increase in earnings.
Previous report
•A $4.5 million increase related to MGU's rate increase approved by the MPSC that was effective January 1, 2024. See Note 26, Regulatory Environment, in our 2023 Annual Report on Form 10-K for more information.
Previous report
•A $2.1 million increase related to MERC's final rate increase approved by MPUC in November 2023. See Note 22, Regulatory Environment, for more information.
Previous report
•A $1.0 million decrease in other non-service revenues due in part to lower late payment charges.
Previous report
Other operating expenses at the other states segment decreased $4.3 million during the first quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the decrease in operating expenses were:
Previous report
These decreases in other operating expenses were partially offset by a $1.0 million increase in depreciation and amortization related to continued capital investment.
Previous report
Income tax expense at the other states segment increased $1.8 million during the first quarter of 2024, compared with the same quarter in 2023, driven by higher pre-tax income.
Previous report
Operating income at the non-utility energy infrastructure segment increased $4.6 million during the first quarter of 2024, compared with the same quarter in 2023, primarily due to a $2.9 million positive impact from We Power due to continued capital investment.
Previous report
Income Tax Benefit
Previous report
The income tax benefit at the non-utility energy infrastructure segment increased $5.6 million during the first quarter of 2024, compared with the same quarter in 2023, primarily due to a $5.7 million increase in PTCs.
Previous report
Other Income, Net
Previous report
Other income, net at the corporate and other segment increased $7.0 million during the first quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the increase in other income, net were:
Previous report
Income Tax Benefit
Previous report
•A $1,100.0 million decrease in cash due to the issuance of long-term debt during the first quarter of 2023. We did not issue any long-term debt during the first quarter of 2024.
Previous report
•A $721.7 million decrease in cash due to increased retirements of long-term debt during the first quarter of 2024, compared with the same quarter in 2023.
Previous report
In February 2022, a California based company filed a petition (Antidumping and Countervailing Duties) with the DOC seeking to impose new tariffs on solar panels and cells imported from multiple countries, including Malaysia, Vietnam, Thailand, and Cambodia. The petitioners claimed that Chinese solar manufacturers are shifting products to these countries to avoid the tariffs required on products imported from China and requested that the DOC conduct a country-wide inquiry into each of the four countries.
Previous report
In August 2023, the DOC issued its final decision, substantially affirming its December 2022 preliminary determination that circumvention was occurring in each of the four Southeast Asian countries noted above. In its decision, the DOC affirmed that the Biden Administration’s current 24-month tariff moratorium will remain in effect until June 6, 2024, subject to certain use and installation requirements, at which time tariffs are expected to resume. In December 2023, two U.S. solar manufacturers filed a challenge to this moratorium in the United States Court of International Trade.
Reworded paragraphs (82)
Previous wording
Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and clean natural gas-fired generation. The retirements will contribute to meeting our goals to reduce CO 2 emissions from our electric generation. When taken together, the retirements and new investments in renewables and clean generation should better balance our supply with our demand, while maintaining reliable, affordable energy for our customers.
Current wording
Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and clean natural gas-fired generation. The retirements will contribute to meeting our goals to reduce CO 2 emissions from our electric generation. When taken together, the retirements and new investments in renewables and clean natural gas generation should better balance our supply with our demand, while maintaining reliable, affordable energy for our customers.
Previous wording
We already have retired more than 1,900 MWs of fossil-fueled generation since the beginning of 2018, which included the 2019 retirement of the Presque Isle Power Plant as well as the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating units. We expect to retire approximately 1,800 MWs of additional fossil-fueled generation by the end of 2031, which includes the planned retirement in 2024-2025 of OCPP Units 5-8, the planned retirement by June 2026 of jointly-owned Columbia Units 1 and 2, and the planned retirement in 2031 of Weston Unit 3. See Note 6, Property, Plant, and Equipment, for more information related to planned power plant retirements.
Current wording
We have already retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the retirement of OCPP Units 5 and 6 in May 2024, the 2019 retirement of the Presque Isle power plant, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater 4 generating unit. We expect to retire approximately 1,200 MWs of additional fossil-fueled generation by the end of 2031, which includes the planned retirement of OCPP Units 7 and 8 in late 2025, the planned retirement of the jointly-owned Columbia Units 1 and 2 by June 2026, and the planned retirement of Weston Unit 3 in 2031. For more information on the retirement of OCPP Units 5 and 6, see Note 6, Regulatory Assets and Liabilities. See Note 7, Property, Plant, and Equipment, for more information related to planned power plant retirements.
Previous wording
•1,100 MWs of combustion turbines to be constructed in Oak Creek (we plan on constructing a new natural gas lateral pipeline to support this generation);
Current wording
•1,100 MWs of combustion turbines to be constructed at our OCPP site (we plan on constructing a new natural gas lateral pipeline to support this generation); and
Previous wording
•128 MWs of RICE natural gas-fueled generation to be constructed in Kenosha County; and
Current wording
•128 MWs of RICE natural gas-fueled generation to be constructed in Kenosha County.
Previous wording
•In September 2023, WPS filed a request with the PSCW to exercise a second option to acquire an additional 100 MWs of capacity in West Riverside, a combined cycle natural gas plant operated by an unaffiliated utility in Rock County, Wisconsin, for $100 million. In October 2023, WPS filedfor approval to assign the second option to purchase part of West Riverside to WE. These requests were approved in February 2024 and our share of the cost of this ownership interest is expected to be approximately $100 million, with the transaction expected to close by June 2024.
Current wording
In May 2024, WE completed the acquisition of an additional 100 MWs of capacity in West Riverside, a combined cycle natural gas plant operated by an unaffiliated utility. See Note 2, Acquisitions, for more information.
Previous wording
For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.
Current wording
For more details on the projects discussed above, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.
Previous wording
In December 2018, WE received approval from the PSCW for two renewable energy pilot programs. The Solar Now pilot is expected to add a total of 35 MWs of solar generation to WE's portfolio, allowing non-profit and governmental entities, as well as commercial and industrial customers, to site utility owned solar arrays on their property. Under this program, WE has energized 28 Solar Now projects and currently has another two under construction, together totaling more than 30 MWs. The second program, the DRER pilot, is designed to allow large commercial and industrial customers to access renewable resources that WE would operate. The DRER pilot is intended to help these larger customers meet their sustainability and renewable energy goals, and could add up to 35 MWs of renewables to WE's portfolio. In July 2023, the PSCW approved the Renewable Pathway Pilot, the third renewable energy program. This program allows WE and WPS commercial and industrial customers to subscribe to a portion of a utility-scale, Wisconsin-based renewable energy generating facility for up to 125 MWs at WE and 40 MWs at WPS. Under this program, WE has signed up three customers for a total of 41 MWs of generation capacity.
Current wording
In December 2018, WE received approval from the PSCW for two renewable energy pilot programs. The Solar Now pilot is expected to add a total of 35 MWs of solar generation to WE's portfolio, allowing non-profit and governmental entities, as well as commercial and industrial customers, to site utility owned solar arrays on their property. Under this program, WE has energized 28 Solar Now projects and currently has another two under construction, together totaling more than 30 MWs. The second program, the DRER pilot, is designed to allow large commercial and industrial customers to access renewable resources that WE would operate. The DRER pilot is intended to help these larger customers meet their sustainability and renewable energy goals, and could add up to 35 MWs of renewables to WE's portfolio. In July 2023, the PSCW approved the Renewable Pathway Pilot, the third renewable energy program. This program allows WE and WPS commercial and industrial customers to subscribe to a portion of a utility-scale, Wisconsin-based renewable energy generating facility for up to 125 MWs at WE and 40 MWs at WPS. Under this program, WE has signed up five customers for a total of 44 MWs of generation capacity.
Previous wording
We also continue to reduce methane emissions by improving our natural gas distribution system. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our natural gas utility systems. In 2022, we received approval from the PSCW for our RNG pilots. We have since signed contracts for 1.8 Bcf of RNG for our natural gas distribution business in Wisconsin, which will be transporting the output of local dairy farms onto our gas distribution systems. The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes. RNG began flowing in 2023.
Current wording
We also continue to reduce methane emissions by improving our natural gas distribution system. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our natural gas utility systems. In 2022, we received approval from the PSCW for our RNG pilots and in 2023, we began transporting the output of local dairy farms onto our natural gas distribution systems in Wisconsin. The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes. We currently have contracts in place for 1.9 Bcf of RNG.
Previous wording
In December 2023, we started a pilot program with Electric Power Research Institute and CMBlu Energy, a Germany-based designer and manufacturer, to test a new form of long-duration energy storage on the U.S. electric grid at our Valley Power Plant. The program will test battery system performance, including the ability to store and discharge energy for up to twice as long as the typical lithium-ion batteries in use today. We expect the full pilot to be completed in 2024.
Current wording
In December 2023, we started a pilot program with Electric Power Research Institute and CMBlu Energy, a Germany-based designer and manufacturer of an organic solid flow battery, to test this new form of long-duration energy storage on the U.S. electric grid at our Valley power plant. The program will test battery system performance, including the ability to store and discharge energy for up to twice as long as the typical lithium-ion batteries in use today. We expect the full pilot to be completed in 2024.
Previous wording
On January 3, 2024, the ICC granted PGL a limited-scope rehearing, which is limited to the authorized spending for the completion of SMP projects that started in 2023 and the authorized spending for emergency repairs needed to ensure the safety and reliability of PGL's delivery system. See Note 22, Regulatory Environment, for more information.
Current wording
On January 3, 2024, the ICC granted PGL a limited-scope rehearing, which was limited to the authorized spending for the completion of SMP projects that started in 2023 and the authorized spending for emergency repairs needed to ensure the safety and reliability of PGL's delivery system. On May 30, 2024, the ICC issued a written order on the rehearing. The order approved $28.5 million of additional spending for emergency work, representing a $1.6 million increase to PGL's annual revenue requirement. See Note 25, Regulatory Environment, for more information.
Previous wording
The following table compares our consolidated results for the first quarter of 2024 with the first quarter of 2023, including favorable or better, "B", and unfavorable or worse, "W", variances:
Current wording
The following table compares our consolidated results for the second quarter of 2024 with the second quarter of 2023, including favorable or better, "B", and unfavorable or worse, "W", variances:
Previous wording
Our electric margins and natural gas margins may not be comparable to similar measures presented by other companies. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. The following table shows operating income by segment for our utility operations during the first quarter of 2024 and 2023:
Current wording
Our electric margins and natural gas margins may not be comparable to similar measures presented by other companies. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. The following table shows operating income by segment for our utility operations during the second quarter of 2024 and 2023:
Previous wording
(1)Represents transmission expense that our electric utilities are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses for WE and WPS. As a result, WE and WPS 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 the first quarter of 2024 and 2023, $137.8 million and $127.3 million, respectively, of costs were billed to our electric utilities by transmission providers.
Current wording
(1)Represents transmission expense that our electric utilities are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses for WE and WPS. As a result, WE and WPS 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 the second quarter of 2024 and 2023, $140.0 million and $127.9 million, respectively, of costs were billed to our electric utilities by transmission providers.
Previous wording
(3)Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE. During the first quarter of 2024 and 2023, $29.5 million and $26.6 million, respectively, of costs were billed to or incurred by WE related to the We Power generation units, with the difference in costs billed or incurred and expenses recognized, either deferred or deducted from the regulatory asset.
Current wording
(3)Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE. During the second quarter of 2024 and 2023, $29.3 million and $35.8 million, respectively, of costs were billed to or incurred by WE related to the We Power generation units, with the difference in costs billed or incurred and expenses recognized, either deferred or deducted from the regulatory asset.
Previous wording
Electric revenues decreased $18.3 million during the first quarter of 2024, compared with the same quarter in 2023. To the extent that changes in fuel and purchased power costs are passed through to customers, the changes are offset by comparable changes in revenues. See the discussion of electric utility margins below for more information related to the recovery of fuel and purchased power costs and the remaining drivers of the changes in electric revenues.
Current wording
Electric revenues decreased $31.0 million during the second quarter of 2024, compared with the same quarter in 2023. To the extent that changes in fuel and purchased power costs are passed through to customers, the changes are offset by comparable changes in revenues. See the discussion of electric utility margins below for more information related to the recovery of fuel and purchased power costs and the remaining drivers of the changes in electric revenues.
Previous wording
Natural gas utility margins at the Wisconsin segment increased $7.6 million during the first quarter of 2024, compared with the same quarter in 2023. The most significant factor impacting the higher natural gas utility margins was a $24.5 million increase in margins related to the impact of the Wisconsin rate case re-opener approved by the PSCW, effective January 1, 2024. See Note 26, Regulatory Environment, in our 2023 Annual Report on Form 10-K, for more information on the 2024 limited rate case re-opener. This increase in margins was partially offset by a $16.2 million decrease in margins from lower sales volumes, driven by the impact of warmer winter weather during the first quarter of 2024, compared with the same quarter in 2023.
Current wording
Natural gas utility margins at the Wisconsin segment increased $0.2 million during the second quarter of 2024, compared with the same quarter in 2023. The most significant factor impacting the higher natural gas utility margins was a $7.2 million increase in margins related to the impact of the Wisconsin limited rate case re-openers approved by the PSCW, effective January 1, 2024. See Note 26, Regulatory Environment, in our 2023 Annual Report on Form 10-K, for more information on the 2024 limited rate case re-openers. This increase in margins was partially offset by a $6.3 million decrease in margins from lower retail sales volumes, driven by the impact of warmer spring weather during the second quarter of 2024, compared with the same quarter in 2023. As measured by heating degree days, the second quarter of 2024 was 16.8% and 12.9% warmer than the same quarter in 2023 in the Milwaukee area and Green Bay area, respectively.
Previous wording
•A $7.0 million increase in electric and natural gas distribution expenses, driven by higher costs for storm restoration during the first quarter of 2024, compared with the same quarter in 2023.
Current wording
•A $9.4 million increase in electric and natural gas distribution expenses, primarily driven by higher costs to maintain the distribution systems and for storm restoration during the second quarter of 2024, compared with the same quarter in 2023.
Previous wording
Interest expense at the Wisconsin segment increased $7.2 million during the first quarter of 2024, compared with the same quarter in 2023, driven by higher average short-term debt balances and increased short-term debt interest rates.
Current wording
Interest expense at the Wisconsin segment increased $7.2 million during the second quarter of 2024, compared with the same quarter in 2023, driven by higher average short-term debt balances, increased short-term debt interest rates, and the impact of WE's $350.0 million long-term debt issuance in May 2024.
Previous wording
Other operating expenses at the Illinois segment increased $8.6 million, net of the $5.1 million impact of the riders referenced in the table above, during the first quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the increase in other operating expenses were:
Current wording
Other operating expenses at the Illinois segment decreased $3.2 million, net of the $9.1 million impact of the riders referenced in the table above, during the second quarter of 2024, compared with the same quarter in 2023. The significant factors impacting the decrease in other operating expenses were:
Previous wording
•A $3.5 million increase in natural gas distribution and maintenance costs, primarily related to maintaining the natural gas infrastructure.
Current wording
•A $4.7 million increase in natural gas distribution and maintenance costs, primarily related to maintaining the natural gas infrastructure.
Previous wording
•A $5.2 million increase in property and revenue taxes, driven by a $6.2 million increase in the invested capital tax. This increase was related to an increase in regulatory amortizations and the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively.
Current wording
•A $3.4 million increase in property and revenue taxes, driven by an increase in the invested capital tax. This increase was related to an increase in regulatory amortizations as approved in the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively.
Previous wording
Natural gas revenues decreased $65.4 million during the first quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas decreased approximately 39% during the first quarter of 2024, compared with the same quarter in 2023. See the discussion of natural gas utility margins below for the remaining drivers of changes in natural gas revenues.
Current wording
Natural gas revenues decreased $10.9 million during the second quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas decreased approximately 25% during the second quarter of 2024, compared with the same quarter in 2023. See the discussion of natural gas utility margins below for the remaining drivers of changes in natural gas revenues.
Previous wording
Natural gas utility margins increased $3.0 million during the first quarter of 2024, compared with the same quarter in 2023. The primary factors impacting the increase in natural gas utility margins were:
Current wording
Natural gas utility margins increased $1.0 million during the second quarter of 2024, compared with the same quarter in 2023. The primary factors impacting the increase in natural gas utility margins were:
Previous wording
•A $1.2 million decrease in property and revenue taxes, primarily at MERC.
Current wording
•A $1.6 million increase in property and revenue taxes, primarily at MERC.
Previous wording
Interest expense at the corporate and other segment increased $11.0 million during the first quarter of 2024, compared with the same quarter in 2023, driven by higher average short-term debt balances and increased short-term debt interest rates. Also contributing to the increase was the impact of long-term debt issuances by WEC Energy Group in January, April, and September 2023. Partially offsetting these increases in interest expense was the impact of the Integrys long-term debt redemption in August 2023, the WEC Energy Group long-term debt maturity in September 2023, and the WEC Energy Group tender offer in January and February 2024.
Current wording
Interest expense at the corporate and other segment increased $14.5 million during the second quarter of 2024, compared with the same quarter in 2023, due to the impact of long-term debt issuances by WEC Energy Group in September 2023 and May 2024, higher average short-term debt balances, and increased short-term debt interest rates. Partially offsetting these increases in interest expense was the impact of Integrys' long-term debt redemption in August 2023, WEC Energy Group's long-term debt maturity in September 2023, WEC Energy Group's tender offer for its 2007 Junior Notes in January and February 2024, and WEC Energy Group's repurchase of $19.0 million of its 2007 Junior Notes in May 2024.
Previous wording
The income tax benefit at the corporate and other segment increased $21.9 million during the first quarter of 2024, compared with the same quarter in 2023. This increase was driven by a $21.0 million increase in the interim tax benefit recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate during the first quarter of 2024, compared with the same quarter in 2023.
Current wording
At the corporate and other segment, $6.4 million of income tax expense was recorded during the second quarter of 2024, compared with $7.3 million of income tax benefit recorded during the same quarter in 2023. This change was driven by a $17.6 million increase in the interim tax expense recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate during the second quarter of 2024, compared with the same quarter in 2023.
Previous wording
•A $74.4 million increase in net income attributed to common shareholders at the Illinois segment, driven by an increase in natural gas margins related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. SMP costs that were previously being recovered under PGL's QIP rider are now included in PGL's base rates. As base revenues are concentrated in the winter months when natural gas usage is highest, this rate design change drove a large increase in the first quarter 2024 margins. See Note 22, Regulatory Environment, for more information on the rate orders. This positive impact was partially offset by higher operating expenses, driven by increases in property and revenue taxes and depreciation and amortization expense.
Current wording
•A $70.0 million increase in net income attributed to common shareholders at the Illinois segment, driven by an increase in natural gas margins related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. SMP costs that were previously being recovered under PGL's QIP rider are now included in PGL's base rates. As base revenues are concentrated in the winter months (first and fourth quarters) when natural gas usage is highest, this rate design change drove a large increase in the first quarter 2024 margins. See Note 25, Regulatory Environment, for more information on the rate orders.
Previous wording
We expect our 2024 annual effective tax rate to be between 11.5% and 12.5%. 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.
Current wording
We expect our 2024 annual effective tax rate to be between 12.5% and 13.5%. 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.
Previous wording
Electric utility margins at the Wisconsin segment increased $44.2 million during the first quarter of 2024, compared with the same quarter in 2023. The significant factor impacting the higher electric utility margins was a $39.8 million quarter-over-quarter positive
Current wording
Electric utility margins at the Wisconsin segment increased $39.6 million during the six months ended June 30, 2024, compared with the same period in 2023. The significant factors impacting the higher electric utility margins were:
Previous wording
impact from collections of fuel and purchased power costs. Under the Wisconsin fuel rules, the margins of our electric utilities 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 beyond the 2% price variance is generally deferred for future recovery or refund to customers.
Current wording
•A $32.6 million period-over-period positive impact from collections of fuel and purchased power costs. Under the Wisconsin fuel rules, the margins of our electric utilities 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 beyond the 2% price variance is generally deferred for either future recovery or refund to customers.
Previous wording
This increase in margins was partially offset by a $0.8 million decrease in margins related to lower retail sales volumes, including steam operations, driven by the impact of warmer winter weather during the first quarter of 2024, compared with the same quarter in 2023. As measured by heating degree days, the first quarter of 2024 was 4.7% and 9.5% warmer than the same quarter in 2023 in the Milwaukee area and Green Bay area, respectively.
Current wording
•A $2.8 million increase in margins related to higher sales volumes, including steam operations, driven by the impact of warmer spring weather in WE's service area during the six months ended June 30, 2024, compared with the same period in 2023. As measured by cooling degree days, the six months ended June 30, 2024 were 27.8% warmer than the same period in 2023 in the Milwaukee area.
Previous wording
The Illinois segment's contribution to net income attributed to common shareholders was $187.5 million during the first quarter of 2024, representing a $74.4 million, or 65.8%, increase over the same quarter in 2023. The higher earnings were driven by an increase in natural gas margins related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. SMP costs that were previously being recovered under PGL's QIP rider are now included in PGL's base rates. As base revenues are concentrated in the winter months when natural gas usage is highest, this rate design change drove a large increase in the first quarter 2024 margins. See Note 22, Regulatory Environment, for more information on the rate orders. This positive impact was partially offset by higher operating expenses, driven by increases in property and revenue taxes and depreciation and amortization expense.
Current wording
The Illinois segment's contribution to net income attributed to common shareholders was $213.2 million during the six months ended June 30, 2024, representing a $70.0 million, or 48.9%, increase over the same period in 2023. The increase was driven by higher natural gas margins related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. SMP costs that were previously being recovered under PGL's QIP rider are now included in PGL's base rates. As base revenues are concentrated in the winter months (first and fourth quarters) when natural gas usage is highest, this rate design change drove a large increase in the first quarter 2024 margins. See Note 25, Regulatory Environment, for more information on the rate orders.
Previous wording
Natural gas revenues increased $66.3 million during the first quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The drivers of changes in natural gas revenues are described in the discussion of margins below.
Current wording
Natural gas revenues increased $69.6 million during the six months ended June 30, 2024, compared with the same period in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The remaining drivers of changes in natural gas revenues are described in the discussion of margins below.
Previous wording
Natural gas utility margins at the Illinois segment, net of the $5.1 million impact of the riders referenced in the table above, increased $115.9 million during the first quarter of 2024, compared with the same quarter in 2023. The higher natural gas utility margins were driven by a $118.0 million increase related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. PGL’s rate order includes the recovery of costs related to PGL’s SMP in base rates. Previously, these costs were being recovered under its QIP rider. As base revenues are concentrated in the winter months when natural gas usage is highest, this rate design change drove a large increase in first quarter 2024 margins.
Current wording
Natural gas utility margins at the Illinois segment, net of the $4.0 million impact of the riders referenced in the table above, increased $108.9 million during the six months ended June 30, 2024, compared with the same period in 2023. The higher natural gas utility margins were driven by a $111.8 million increase related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. PGL’s rate order includes the recovery of costs related to PGL’s SMP in base rates. Previously, these costs were being recovered under its QIP rider. As base revenues are concentrated in the winter months (first and fourth quarters) when natural gas usage is highest, this rate design change drove a large increase in margins during the six months ended June 30, 2024.
Previous wording
These increases in operating expenses were partially offset by a $10.5 million decrease in expenses associated with the favorable settlement of a legal claim during the first quarter of 2024.
Current wording
•A $10.5 million decrease in expenses associated with the favorable settlement of a legal claim during the six months ended June 30, 2024.
Previous wording
Interest expense at the Illinois segment increased $3.4 million during the first quarter of 2024, compared with the same quarter in 2023, due to the impact of PGL and NSG issuing long-term debt in November 2023, higher average short-term debt balances, and increased short-term debt interest rates.
Current wording
Interest expense at the Illinois segment increased $5.5 million during the six months ended June 30, 2024, compared with the same period in 2023, driven by the impact of PGL and NSG issuing long-term debt in November 2023. Also contributing to the increase was higher average short-term debt balances and increased short-term debt interest rates.
Previous wording
Natural gas revenues decreased $199.2 million during the first quarter of 2024, compared with the same quarter in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas decreased approximately 36% during the first quarter of 2024, compared with the same quarter in 2023. The remaining drivers of changes in natural gas revenues are described in the discussion of natural gas utility margins below.
Current wording
Natural gas revenues decreased $76.3 million during the six months ended June 30, 2024, compared with the same period in 2023. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas decreased approximately 36% during the six months ended June 30, 2024, compared with the same period in 2023. See the discussion of natural gas utility margins below for the remaining drivers of changes in natural gas revenues.
Previous wording
These increases were partially offset by the following factors:
Current wording
These increases were partially offset by:
Previous wording
•A $0.9 million decrease related to MERC CIP revenue, which was offset in operation and maintenance expense. Rebates and programs are available to residential and commercial customers of MERC through the CIP, which is funded by rate payers using the Conservation Cost Recovery Charge and the Conservation Cost Recovery Adjustment funds that are collected on their monthly billing statements.
Current wording
•A $1.2 million decrease related to MERC CIP revenue, which was offset in operation and maintenance expense. Rebates and programs are available to residential and commercial customers of MERC through the CIP, which is funded by rate payers using the Conservation Cost Recovery Charge and the Conservation Cost Recovery Adjustment funds that are collected on their monthly billing statements.
Previous wording
•A $4.3 million decrease in bad debt expense related to improvements in our loss rates.
Current wording
•A $2.0 million decrease in bad debt expense at MERC related to improvements in its loss rates.
Showing the first 40 of 82 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
•In April 2024, WE filed a request with the PSCW to construct an LNG facility with a storage capacity of two Bcf, which would be located on the OCPP site. In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of the 2024-2028 capital plan and would provide another approximately two Bcf of natural gas supply. The LNG facilities are expected to reduce the likelihood of constraints on our natural gas distribution system during the highest demand days of winter.
Current report — wording carried from elsewhere
Electric utility margins at the Wisconsin segment decreased $4.6 million during the second quarter of 2024, compared with the same quarter in 2023. The significant factor impacting the lower electric utility margins was a $7.2 million quarter-over-quarter negative impact from collections of fuel and purchased power costs. Under the Wisconsin fuel rules, the margins of our electric utilities 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 beyond the 2% price variance is generally deferred for either future recovery or refund to customers.
Current report — wording carried from elsewhere
Natural gas utility margins at the Illinois segment, net of the $9.1 million impact of the riders referenced in the table above, decreased $7.0 million during the second quarter of 2024, compared with the same quarter in 2023. The lower natural gas utility margins were driven by a $6.2 million decrease related to the impacts of the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively. PGL’s rate order includes the recovery of costs related to PGL’s SMP in base rates. Previously, these costs were being recovered under its QIP rider. As base revenues are lower during the second quarter when natural gas usage is lower, this rate design change drove a decrease in second quarter 2024 margins.
Current report — wording carried from elsewhere
These decreases in operating expenses were partially offset by:
Current report — wording carried from elsewhere
•A $5.2 million increase in depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.
Current report — wording carried from elsewhere
The following table compares our consolidated results for the six months ended June 30, 2024 with the six months ended June 30, 2023, including favorable or better, "B", and unfavorable or worse, "W", variances:
Current report — wording carried from elsewhere
The discussions below address the contribution of each of our segments to net income attributed to common shareholders. The discussions include financial information prepared in accordance with GAAP, as well as electric margins and natural gas margins, which are not measures of financial performance under GAAP. Electric margins (electric revenues less fuel and purchased power costs) and natural gas margins (natural gas revenues less cost of natural gas sold) are non-GAAP financial measures because they exclude other operation and maintenance expense, depreciation and amortization, and property and revenue taxes.
Current report — wording carried from elsewhere
We believe that electric and natural gas margins provide 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 electric and natural gas margins internally when assessing the operating performance of our segments as these measures exclude the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of electric and natural gas margins herein is intended to provide supplemental information for investors regarding our operating performance.
Current report — wording carried from elsewhere
Our electric margins and natural gas margins may not be comparable to similar measures presented by other companies. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. The following table shows operating income by segment for our utility operations during the six months ended June 30, 2024 and 2023:
Current report — wording carried from elsewhere
Each applicable segment discussion below includes a table that provides the calculation of electric margins and natural gas margins, as applicable, along with a reconciliation to the most directly comparable GAAP measure, operating income.
Current report — wording carried from elsewhere
Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
(1)Represents transmission expense that our electric utilities are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses for WE and WPS. As a result, WE and WPS 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 the six months ended June 30, 2024 and 2023, $277.8 million and $255.2 million, respectively, of costs were billed to our electric utilities by transmission providers.
Current report — wording carried from elsewhere
(2)Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant impact on net income.
Current report — wording carried from elsewhere
(3)Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE. During the six months ended June 30, 2024 and 2023, $58.8 million and $62.4 million, respectively, of costs were billed to or incurred by WE related to the We Power generation units, with the difference in costs billed or incurred and expenses recognized, either deferred or deducted from the regulatory asset.
Current report — wording carried from elsewhere
(1)Includes distribution sales for customers who have purchased power from an alternative electric supplier in Michigan.
Current report — wording carried from elsewhere
(1)Normal degree days are based on a 20-year moving average of monthly temperatures from Mitchell International Airport in Milwaukee, Wisconsin.
Current report — wording carried from elsewhere
(2)Normal degree days are based on a 20-year moving average of monthly temperatures from the Green Bay, Wisconsin weather station.
Current report — wording carried from elsewhere
(3)Normal degree days are based on a 20-year moving average of monthly temperatures from the Iron Mountain, Michigan weather station.
Current report — wording carried from elsewhere
Electric revenues decreased $49.3 million during the six months ended June 30, 2024, compared with the same period in 2023. To the extent that changes in fuel and purchased power costs are passed through to customers, the changes are offset by comparable changes in revenues. See the discussion of electric utility margins below for more information related to the recovery of fuel and purchased power costs and the remaining drivers of the changes in electric revenues.
Current report — wording carried from elsewhere
Illinois Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
Since the majority of PGL and NSG customers use natural gas for heating, net income attributed to common shareholders at the Illinois segment is sensitive to weather and is generally higher during the winter months.
Current report — wording carried from elsewhere
(1)These riders and regulatory amortizations are substantially offset in margins and therefore do not have a significant impact on net income.
Current report — wording carried from elsewhere
(1)Normal heating degree days are based on a 12-year moving average of monthly temperatures from Chicago's O'Hare Airport.
Current report — wording carried from elsewhere
•An $8.6 million increase in property and revenue taxes, driven by an increase in the invested capital tax. This increase was related to an increase in regulatory amortizations as approved in the PGL and NSG rate orders issued by the ICC, effective December 1, 2023 and February 1, 2024, respectively.
Current report — wording carried from elsewhere
•An $8.2 million increase in natural gas distribution and maintenance costs, primarily related to maintaining the natural gas infrastructure.
Current report — wording carried from elsewhere
Other States Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
Since the majority of MERC and MGU customers use natural gas for heating, net income attributed to common shareholders at the other states segment is sensitive to weather and is generally higher during the winter months.
Current report — wording carried from elsewhere
(1)Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant impact on net income.
Current report — wording carried from elsewhere
(1)Normal heating degree days for MERC and MGU are based on a 20-year moving average and 15-year moving average, respectively, of monthly temperatures from various weather stations throughout their respective service territories.
Current report — wording carried from elsewhere
Electric Transmission Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
Non-Utility Energy Infrastructure Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
Corporate and Other Segment Contribution to Net Income Attributed to Common Shareholders
Current report — wording carried from elsewhere
The income tax benefit at the corporate and other segment increased $8.2 million during the six months ended June 30, 2024, compared with the same period in 2023, driven by a higher pre-tax loss and a $3.4 million increase in the interim tax benefit recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate.
Current report — wording carried from elsewhere
•The acquisition of a 90% ownership interest in Red Barn in April 2023 for $143.8 million.
Current report — wording carried from elsewhere
These decreases in net cash used in investing activities were partially offset by:
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approximately$578 million, with construction expected to be completed in 2026. As part of its order, the PSCW approved battery capacity at this project, which is no longer included in the current capital plan. We will continue to evaluate timing, cost, and feasibility of the installation of batteries.
Current report — wording carried from elsewhere
•In May 2024, WE completed the acquisition of an additional 100 MWs of capacity in West Riverside, a combined cycle natural gas plant operated by an unaffiliated utility in Rock County, Wisconsin, for $98.2 million.
Current report — wording carried from elsewhere
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.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
rating agencies. Therefore, we believe the non-GAAP adjusted presentation reflecting this treatment is useful and relevant to investors in understanding how management and the rating agencies evaluate our capitalization structure.
Previous report — wording carried elsewhere
The rates of PGL and NSG include a UEA rider for cost recovery or refund of uncollectible expense based on the difference between actual uncollectible write-offs and the amounts recovered in rates. The UEA rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency by the ICC. In May 2023, the ICC issued a written order on PGL's and NSG's 2018 UEA rider reconciliation. The order requires a $15.4 million and $0.7 million refund to ratepayers at PGL and NSG, respectively. These amounts are being refunded over a period of nine months, which began on September 1, 2023. In June 2023, the ICC denied PGL's
Previous report — wording carried elsewhere
In May 2022, a petition was filed with the PSCW requesting a declaratory ruling that the owner of a third-party financed DER is not a "public utility" as defined under Wisconsin law and, therefore, is not subject to the PSCW’s jurisdiction under any statute or rule
Previous report — wording carried elsewhere
In August 2022, President Biden signed into law the IRA, which provides for $258 billion in energy-related provisions over a 10-year period. The provisions of the IRA are intended to, among other things, lower gasoline and electricity prices, incentivize domestic clean energy investment, manufacturing, and production, and promote reductions in carbon emissions. We believe that we and our
Previous report — wording carried elsewhere
period covered by the first complaint. Various parties then filed requests to rehear certain parts of the May 2020 Order with the FERC.