WEC ENERGY GROUP INC
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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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.
Sep 30, 2024 · Filed Nov 1, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
For the quarterly period ended September 30, 2024
OR
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from ________________ to ___________________
| Commission File Number | Registrant; State of Incorporation;Address; and Telephone Number | IRS EmployerIdentification No. |
|---|---|---|
| 001-09057 | WEC ENERGY GROUP, INC. | 39-1391525 |
(AWisconsin Corporation)
231 West Michigan Street
P.O. Box 1331
Milwaukee, WI 53201
(414)221-2345
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
|---|---|---|
| Common Stock, $.01 Par Value | WEC | New York Stock Exchange |
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 ☒ 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 ☒ 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 | ☐ |
| 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes☐ No☒
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date (September 30, 2024):
Common Stock, $.01 Par Value,316,354,446 shares outstanding
QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended September 30, 2024
TABLE OF CONTENTS
| Page | |||
|---|---|---|---|
| CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION | 1 | ||
| PART I. | FINANCIAL INFORMATION | 4 | |
| ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED) | 4 | |
| Condensed Consolidated Income Statements | 4 | ||
| Condensed Consolidated Statements of Comprehensive Income | 5 | ||
| Condensed Consolidated Balance Sheets | 6 | ||
| Condensed Consolidated Statements of Cash Flows | 7 | ||
| Condensed Consolidated Statements of Equity | 8 | ||
| Notes to Condensed Consolidated Financial Statements | 10 | ||
| Page | |||
| Note 1 | General Information | 10 | |
| Note 2 | Acquisitions | 10 | |
| Note 3 | Disposition | 11 | |
| Note 4 | Operating Revenues | 12 | |
| Note 5 | Credit Losses | 15 | |
| Note 6 | Regulatory Assets and Liabilities | 18 | |
| Note 7 | Property, Plant, and Equipment | 19 | |
| Note 8 | Asset Retirement Obligations | 19 | |
| Note 9 | Common Equity | 20 | |
| Note 10 | Short-Term Debt and Lines of Credit | 21 | |
| Note 11 | Long-Term Debt | 22 | |
| Note 12 | Leases | 24 | |
| Note 13 | Materials, Supplies, and Inventories | 24 | |
| Note 14 | Income Taxes | 25 | |
| Note 15 | Fair Value Measurements | 26 | |
| Note 16 | Derivative Instruments | 28 | |
| Note 17 | Guarantees | 29 | |
| Note 18 | Employee Benefits | 30 | |
| Note 19 | Goodwill and Intangibles | 30 | |
| Note 20 | Investment in Transmission Affiliates | 32 | |
| Note 21 | Segment Information | 33 | |
| Note 22 | Variable Interest Entities | 35 | |
| Note 23 | Commitments and Contingencies | 37 | |
| Note 24 | Supplemental Cash Flow Information | 41 | |
| Note 25 | Regulatory Environment | 42 | |
| Note 26 | New Accounting Pronouncements | 45 | |
| ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 46 | |
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 90 | |
| ITEM 4. | CONTROLS AND PROCEDURES | 90 | |
| PART II. | OTHER INFORMATION | 91 | |
| ITEM 1. | LEGAL PROCEEDINGS | 91 | |
| ITEM 1A. | RISK FACTORS | 91 | |
| ITEM 5. | OTHER INFORMATION | 91 | |
| ITEM 6. | EXHIBITS | 92 | |
| SIGNATURE | 93 | ||
| 09/30/2024 Form 10-Q | i | WEC Energy Group, Inc. |
|---|
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 |
| ATC Holdco | ATC Holdco LLC |
| Blooming Grove | Blooming Grove Wind Energy Center LLC |
| Bluewater | Bluewater Natural Gas Holding, LLC |
| Integrys | Integrys Holding, Inc. |
| Jayhawk | Jayhawk Wind, LLC |
| MERC | Minnesota Energy Resources Corporation |
| MGU | Michigan Gas Utilities Corporation |
| NSG | North Shore Gas Company |
| PGL | The Peoples Gas Light and Coke Company |
| Samson I | Samson I Solar Energy Center LLC |
| Sapphire Sky | Sapphire Sky Wind Energy LLC |
| Tatanka Ridge | Tatanka Ridge Wind LLC |
| UMERC | Upper Michigan Energy Resources Corporation |
| WBS | WEC Business Services LLC |
| WE | Wisconsin Electric Power Company |
| We Power | W.E. Power, LLC |
| WEC Energy Group | WEC Energy Group, Inc. |
| WECI | WEC Infrastructure LLC |
| WEPCo Environmental Trust | WEPCo Environmental Trust Finance I, LLC |
| WG | Wisconsin Gas LLC |
| Wispark | Wispark LLC |
| WPS | Wisconsin Public Service Corporation |
| Federal and State Regulatory Agencies | |
| CBP | United States Customs and Border Protection Agency |
| DOC | United States Department of Commerce |
| EPA | United States Environmental Protection Agency |
| FERC | Federal Energy Regulatory Commission |
| ICC | Illinois Commerce Commission |
| IRS | United States Internal Revenue Service |
| MPSC | Michigan Public Service Commission |
| MPUC | Minnesota Public Utilities Commission |
| PSCW | Public Service Commission of Wisconsin |
| SEC | United States Securities and Exchange Commission |
| USITC | United States International Trade Commission |
| WDNR | Wisconsin Department of Natural Resources |
| Accounting Terms | |
| AFUDC | Allowance for Funds Used During Construction |
| ARO | Asset Retirement Obligation |
| ASC | Accounting Standards Codification |
| ASU | Accounting Standards Update |
| FASB | Financial Accounting Standards Board |
| GAAP | United States Generally Accepted Accounting Principles |
| LIFO | Last-In, First-Out |
| OPEB | Other Postretirement Employee Benefits |
| VIE | Variable Interest Entity |
| Environmental Terms | |
| BATW | Bottom Ash Transport Water |
| BTA | Best Technology Available |
| 09/30/2024 Form 10-Q | ii | WEC Energy Group, Inc. |
|---|
| CAA | Clean Air Act |
|---|---|
| CASAC | Clean Air Scientific Advisory Committee |
| CCR | Coal Combustion Residuals |
| CO2 | Carbon Dioxide |
| CRL | Combustine Residual Leachate |
| CWA | Clean Water Act |
| ELG | Steam Electric Effluent Limitation Guidelines |
| FGD | Flue Gas Desulfurization |
| GHG | Greenhouse Gas |
| MATS | Mercury and Air Toxics Standards |
| NAAQS | National Ambient Air Quality Standards |
| NOV | Notice of Violation |
| NOx | Nitrogen Oxide |
| PCB | Polychlorinated Biphenyl |
| PM | Particulate Matter |
| WPDES | Wisconsin Pollutant Discharge Elimination System |
| Measurements | |
| Bcf | Billion Cubic Feet |
| Dth | Dekatherm |
| lb/MMBtu | Pound Per Million British Thermal Unit |
| MW | Megawatt |
| MWh | Megawatt-hours |
| µg/m3 | Micrograms Per Cubic Meter |
| Other Terms and Abbreviations | |
| 2007 Junior Notes | WEC Energy Group, Inc.'s 2007 Series A Junior Subordinated Notes Due 2067 |
| 2027 Notes | WEC Energy Group, Inc.'s 4.375% Convertible Senior Notes Due 2027 |
| 2029 Notes | WEC Energy Group, Inc.'s 4.375% Convertible Senior Notes Due 2029 |
| AD | Antidumping |
| AMI | Advanced Metering Infrastructure |
| Badger Hollow | Badger Hollow Wind Energy Generation Facility |
| CABO | Clean and Affordable Buildings Ordinance |
| Chicago, IL-IN-WI | Chicago, Illinois, Indiana, and Wisconsin |
| CIP | Conservation Improvement Program |
| Compensation Committee | Compensation Committee of the Board of Directors |
| CVD | Countervailing Duty |
| D.C. Circuit Court of Appeals | United States Court of Appeals for the District of Columbia Circuit |
| Darien | Darien Solar Park |
| Delilah I | Delilah I Solar Energy Center |
| DER | Distributed Energy Resource |
| DRER | Dedicated Renewable Energy Resource |
| EDA | Equity Distribution Agreement |
| ERGS | Elm Road Generating Station |
| ESG Progress Plan | WEC Energy Group's Capital Investment Plan for Efficiency, Sustainability, and Growth for 2025-2029 |
| ETB | Environmental Trust Bond |
| EV | Electric Vehicle |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| FTR | Financial Transmission Right |
| Good Oak | Good Oak Solar Generation Facility |
| Gristmill | Gristmill Solar Generation Facility |
| Hardin III | Hardin Solar III Energy Center |
| IRA | Inflation Reduction Act |
| ITC | Investment Tax Credit |
| Koshkonong | Koshkonong Solar Park |
| LDC | Local Natural Gas Distribution Company |
| 09/30/2024 Form 10-Q | iii | WEC Energy Group, Inc. |
|---|
| LNG | Liquefied Natural Gas |
|---|---|
| Maple Flats | Maple Flats Solar Energy Center LLC |
| MG&E | Madison Gas and Electric Company |
| MISO | Midcontinent Independent System Operator, Inc. |
| OCPP | Oak Creek Power Plant |
| Paris | Paris Solar-Battery Park |
| PPA | Power Purchase Agreement |
| PTC | Production Tax Credit |
| QIP | Qualifying Infrastructure Plant |
| REC | Renewable Energy Credit |
| Red Barn | Red Barn Wind Park |
| Renegade | Renegade Solar Energy Center |
| RICE | Reciprocating Internal Combustion Engine |
| RNG | Renewable Natural Gas |
| ROE | Return on Equity |
| RTC | Renewable Thermal Credit |
| S&P | Standard & Poor's |
| Saratoga | Saratoga Solar Electric Generation and BESS Facility |
| SIP | State Implementation Plan |
| SMP | Safety Modernization Program |
| Supreme Court | United States Supreme Court |
| Tax Legislation | Tax Cuts and Jobs Act of 2017 |
| TCR | Transmission Congestion Right |
| UEA | Uncollectible Expense Adjustment |
| UFLPA | Uyghur Forced Labor Prevention Act |
| Ursa | Ursa Solar Electric Generation Facility |
| West Riverside | West Riverside Energy Center |
| Whitetail | Whitetail Wind Energy Generation Facility |
| Whitewater | Whitewater Cogeneration Facility |
| WPL | Wisconsin Power and Light Company |
| WRO | Withhold Release Order |
| 09/30/2024 Form 10-Q | iv | WEC Energy Group, Inc. |
|---|
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.