WEC ENERGY GROUP, INC.

Previous wording

Economic growth continues in our Wisconsin service territories. Companies are investing in major projects, including data centers and modern manufacturing facilities. We anticipate electric demand growth in the years ahead from these economic developments. Microsoft has announced plans to invest over $20 billion in data centers in southeastern Wisconsin over the next several years, and we expect up to 2.6 GWs of load growth in the Milwaukee-to-Chicago corridor through 2030. Additionally, Vantage Data Centers plan to develop a large data center campus in Port Washington that is forecasted to add 1.3 GWs of demand through 2030. This site has the potential to add an incremental 2.2 GWs, for a total of up to 3.5 GWs over time. We are working closely with these large customers to provide power to meet this substantial projected demand. On April 24, 2026, we received verbal approval from the PSCW for new VLC and Bespoke Resources tariffs. These tariffs specifically address the unique needs of VLCs while protecting our other customers and shareholders. See Note 23, Regulatory Environment, for more information on the VLC and Bespoke Resources tariffs.

Current wording

Economic growth continues in our Wisconsin service territories. Companies are investing in major projects, including data centers and modern manufacturing facilities. We anticipate electric demand growth in the years ahead from these economic developments. Microsoft has announced plans to invest over $20 billion in data centers in southeastern Wisconsin over the next several years, and we expect up to 2.6 GWs of load growth in the Milwaukee-to-Chicago corridor through 2030. The first phase of the project went into service in April 2026. Additionally, Vantage Data Centers is developing a large data center campus in Port Washington that is forecasted to add 1.3 GWs of demand through 2030. This site has the potential to add an incremental 2.2 GWs, for a total of up to 3.5 GWs over time. We are working closely with these large customers to provide power to meet this substantial projected demand. In May 2026, the PSCW approved new VLC and Bespoke Resources tariffs, which specifically address the unique needs of VLCs while protecting our other customers and shareholders. Subsequent to its approval, Microsoft entered into a service agreement to obtain service under the VLC tariff. See Note 24, Regulatory Environment, for more information on the VLC and Bespoke Resources tariffs.

Previous wording

To meet the forecasted electric demand growth in the years ahead, greater capacity will be required to provide affordable, reliable, and clean energy for our communities. Our capital plan addresses that demand with a range of planned investments in natural gas-fired generation, renewables, and battery storage. We plan on investing approximately $5.4 billion from 2026 to 2030 in a combination of efficient natural gas-fired generation, including:

Current wording

To meet the forecasted electric demand growth in the years ahead, greater capacity will be required to provide affordable, reliable, and clean energy for our communities. Our capital plan addresses that demand with a range of planned investments in natural gas-fired generation, renewables, and battery storage. We plan on investing approximately $6.1 billion from 2026 to 2030 in efficient natural gas-fired generation and related infrastructure, including:

Previous wording

As part of our path toward this goal, we have started implementing co-firing with natural gas at the ERGS coal-fired units and at Weston Unit 4. 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, but continue to evaluate the conversion of both units to natural gas. Additionally, we have 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 Generating Station Unit 4 generating unit. We expect to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8 and Weston Unit 3. See Note 7, Property, Plant, and Equipment, for more information related to the planned retirement of OCPP Units 7 and 8.

Current wording

As part of our path toward this goal, we have started implementing co-firing with natural gas at the ERGS coal-fired units and at Weston Unit 4. 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, but continue to evaluate the conversion of both units to natural gas. Additionally, we have 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 J.P. Pulliam Generating power plant, and the jointly-owned Edgewater Generating Station Unit 4. We expect to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8 and Weston Unit 3. See Note 7, Property, Plant, and Equipment, for more information related to the planned retirement of OCPP Units 7 and 8.

Previous wording

•PGL had been working to replace old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system. In November 2023, the ICC ordered PGL to pause spending on these projects until the ICC completed a proceeding to determine the optimal method for replacing aging natural gas infrastructure and a prudent investment level. In a limited-scope rehearing of this order, PGL was authorized spending for completion of projects that had started in 2023. In February 2025, the ICC issued an order setting expectations for PGL's prospective retirement of its aging natural gas infrastructure. The ICC directed us to focus on retiring all cast and ductile iron pipe that has a diameter of less than 36 inches by January 1, 2035. PGL is working to retire this cast and ductile iron pipe through its PRP. For more information, see Note 23, Regulatory Environment, and Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Illinois Proceeding – Replacement of Aging Natural Gas Infrastructure.

Current wording

•PGL had been working to replace old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system. In November 2023, the ICC ordered PGL to pause spending on these projects until the ICC completed a proceeding to determine the optimal method for replacing aging natural gas infrastructure and a prudent investment level. In February 2025, the ICC issued an order setting expectations for PGL's prospective retirement of its aging natural gas infrastructure. The ICC directed PGL to focus on retiring all cast and ductile iron pipes that have a diameter of less than 36 inches by January 1, 2035. PGL is working to retire this cast and ductile iron pipe through its PRP. For more information, see Note 24, Regulatory Environment, and Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Illinois Proceeding – Replacement of Aging Natural Gas Infrastructure.

Previous wording

Our planned investment focus from 2026 to 2030 is in our regulated utilities and our investment in ATC. We expect total capital expenditures for our regulated utility businesses to be approximately $33.4 billion from 2026 to 2030. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion. For additional information regarding projects included in the $37.5 billion capital plan, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Current wording

Our planned investment focus from 2026 to 2030 is in our regulated utilities and our investment in ATC. We expect total capital expenditures for our regulated utility businesses to be approximately $33.4 billion from 2026 to 2030. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion. For additional information regarding projects included in our $37.5 billion capital plan, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Previous wording

The following table compares our consolidated results for the first quarter of 2026 with the first quarter of 2025, 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 2026 with the second quarter of 2025, including favorable or better, "B", and unfavorable or worse, "W", variances:

Previous wording

•An $11.8 million increase in net income attributed to common shareholders at the non-utility energy infrastructure segment, driven by higher operating income at WECI.

Current wording

•A $36.4 million increase in net income attributed to common shareholders at the non-utility energy infrastructure segment, driven by higher operating income at WECI, reflecting improved market conditions, lower operating costs, and lower losses from storm damage.

Previous wording

•A $48.2 million increase in net income attributed to common shareholders at the Wisconsin segment, primarily due to higher margins from the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K for more information. Higher AFUDC-Equity and increases in certain income tax benefits also contributed to the higher earnings. These positive impacts were partially offset by higher operating expenses, primarily due to an increase in regulatory amortizations and other pass through expenses, higher depreciation and amortization expense, and an increase in transmission expense.

Current wording

•A $25.8 million increase in net income attributed to common shareholders at the Wisconsin segment, primarily due to higher margins from the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K, for more information. Higher AFUDC-Equity and increases in certain income tax benefits also contributed to the higher earnings. These positive impacts were partially offset by higher operating expenses, primarily due to an increase in regulatory amortizations and other pass through expenses, higher depreciation and amortization expense, and an increase in transmission expense.

Previous wording

The Wisconsin segment's contribution to net income attributed to common shareholders was $408.1 million during the first quarter of 2026, representing a $48.2 million, or 13.4%, increase over the same quarter in 2025. The increase in earnings was primarily due to higher margins from the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K for more information. Higher AFUDC-Equity and increases in certain income tax benefits also contributed to the higher earnings. These positive impacts were partially offset by higher operating expenses, primarily due to an increase in regulatory amortizations and other pass through expenses, higher depreciation and amortization expense, and an increase in transmission expense.

Current wording

The Wisconsin segment's contribution to net income attributed to common shareholders was $208.2 million during the second quarter of 2026, representing a $25.8 million, or 14.1%, increase over the same quarter in 2025. The increase in earnings was primarily due to higher margins from the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K, for more information. Higher AFUDC-Equity and increases in certain income tax benefits also contributed to the higher earnings. These positive impacts were partially offset by higher operating expenses, primarily due to an increase in regulatory amortizations and other pass through expenses, higher depreciation and amortization expense, and an increase in transmission expense.

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 2026 and 2025, $164.3 million and $149.0 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 2026 and 2025, $194.5 million and $159.9 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 2026 and 2025, $34.9 million and $27.1 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 2026 and 2025, $30.1 million and $32.9 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 or liability.

Previous wording

•A $73.4 million increase in margins driven by the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K, for more information.

Current wording

•A $44.2 million increase in margins driven by the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K, for more information.

Previous wording

•A $5.3 million increase in property and revenues taxes; and

Current wording

•A $4.0 million increase in property and revenues taxes.

Previous wording

•A $26.9 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

Current wording

•A $22.4 million increase in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

Previous wording

•A $15.3 million increase in transmission expense as approved by the PSCW in our Wisconsin rate orders, effective January 1, 2026. See the notes under the other operation and maintenance table above for more information.

Current wording

•A $16.0 million increase in transmission expense as approved by the PSCW in our Wisconsin rate orders, effective January 1, 2026. See the notes under the other operation and maintenance table above for more information.

Previous wording

•A $5.3 million increase in property and revenue taxes, driven by gross receipt taxes.

Current wording

•A $4.0 million increase in property and revenue taxes, driven by gross receipt taxes.

Previous wording

Other income, net at the Wisconsin segment increased $25.5 million during the first quarter of 2026, compared with the same quarter in 2025, driven by a $26.8 million positive impact from higher AFUDC-Equity due to continued capital investment.

Current wording

Other income, net at the Wisconsin segment increased $32.4 million during the second quarter of 2026, compared with the same quarter in 2025, driven by a $29.6 million positive impact from higher AFUDC-Equity due to continued capital investment.

Previous wording

Interest expense at the Wisconsin segment increased $0.5 million during the first quarter of 2026, compared with the same quarter in 2025. The increase was primarily due to the impact of long-term debt issuances in 2025 and 2026. Also contributing to the increase was higher average short-term debt balances. These increases were substantially offset by AFUDC-Debt that was $11.2 million higher quarter-over-quarter due to continued capital investment and the impact of long-term debt maturities in 2025.

Current wording

Interest expense at the Wisconsin segment increased $3.9 million during the second quarter of 2026, compared with the same quarter in 2025. The increase was primarily due to the impact of long-term debt issuances in 2025 and 2026. Also contributing to the increase was higher average short-term debt balances. These increases were substantially offset by AFUDC-Debt that was $14.1 million higher quarter-over-quarter due to continued capital investment, and the impact of long-term debt maturities in 2025.

Previous wording

•An $8.0 million increase in income tax benefits associated with AFUDC-Equity, driven by continued capital investment;

Current wording

•A $5.8 million increase in income tax benefits associated with AFUDC-Equity, driven by continued capital investment;

Previous wording

•A $4.6 million increase in PTCs.

Current wording

•A $2.2 million increase in PTCs.

Previous wording

•A $9.4 million decrease in revenues associated with the invested capital tax adjustment rider, which was offset in property and revenue taxes and therefore does not have a significant impact on net income. The invested capital tax adjustment rider is a mechanism that allows us to recover or refund the difference between the cost of invested capital tax incurred and the amount collected through base rates.

Current wording

•A $1.5 million decrease in revenues associated with the invested capital tax adjustment rider, which was offset in property and revenue taxes and therefore does not have a significant impact on net income. The invested capital tax adjustment rider is a mechanism that allows us to recover or refund the difference between the cost of invested capital tax incurred and the amount collected through base rates.

Previous wording

Other operating expenses at the Illinois segment decreased $23.3 million, net of the $17.3 million impact of the riders referenced above, during the first quarter of 2026, compared with the same quarter in 2025. The significant factors impacting the decrease in other operating expenses were:

Current wording

Other operating expenses at the Illinois segment increased $5.9 million, net of the $11.3 million impact of the riders referenced above, during the second quarter of 2026, compared with the same quarter in 2025. The significant factors impacting the increase in other operating expenses were:

Previous wording

These increases in margins were partially offset by a $6.6 million decrease related to lower sales volumes, driven by retail natural gas sales, including the impact of warmer weather during the first quarter of 2026, compared with the same quarter in 2025. As measured by heating degree days, the first quarter of 2026 was 4.0% warmer than the same quarter in 2025 in the Milwaukee area.

Current wording

These increases in operating expenses were partially offset by:

Previous wording

Interest expense at the Illinois segment decreased $0.8 million during the first quarter of 2026, compared with the same quarter in 2025, driven by both lower short-term debt balances and interest rates.

Current wording

Interest expense at the Illinois segment decreased $2.3 million during the second quarter of 2026, compared with the same quarter in 2025, driven by both lower short-term debt balances and interest rates and the impact of PGL's Series VV and Series ZZ mortgage bonds redemptions in March 2026. See Note 10, Long-Term Debt, for more information.

Previous wording

Gross margin (GAAP) decreased $5.7 million during the first quarter of 2026, compared with the same quarter in 2025, and utility margin (non-GAAP) decreased $3.9 million during the first quarter of 2026, compared with the same quarter in 2025. Both measures were driven by a $3.6 million decrease in margins related to lower retail sales volumes, including the impact of weather, during the first quarter of 2026, compared with the same quarter in 2025.

Current wording

Gross margin (GAAP) decreased $3.5 million during the second quarter of 2026, compared with the same quarter in 2025, and utility margin (non-GAAP) decreased $2.2 million during the second quarter of 2026, compared with the same quarter in 2025. Both measures were driven by a $2.6 million decrease in margins related to lower residential sales volumes, including the unfavorable impact of weather at MGU, during the second quarter of 2026, compared with the same quarter in 2025.

Previous wording

Additionally, the larger decrease in gross margin (GAAP) as compared to the decrease in utility margin (non-GAAP), was driven by a $0.9 million increase in depreciation and amortization expense that is further described in Other Operating Expenses below.

Current wording

Additionally, the larger decrease in gross margin (GAAP) as compared to the decrease in utility margin (non-GAAP), was driven by the following items that are further described in Other Operating Expenses below:

Previous wording

•A $0.9 million increase in depreciation and amortization expense related to continued capital investment.

Current wording

•A $0.8 million increase in depreciation and amortization expense related to continued capital investment.

Previous wording

•A $0.8 million increase related to MGU's energy optimization program, which provides rebates, incentives, and energy efficiency education to customers.

Current wording

•A $0.8 million increase related to MGU's energy optimization program, which provides rebates, incentives, and energy efficiency

Previous wording

Interest expense at the other states segment increased $1.0 million during the first quarter of 2026, compared with the same quarter in 2025, driven by the impact of MERC and MGU issuing long-term debt in April 2025.

Current wording

Interest expense at the other states segment increased $0.2 million during the second quarter of 2026, compared with the same quarter in 2025, driven by the impact of MERC and MGU issuing long-term debt in April 2025. This increase was partially offset by MERC and MGU long-term debt maturities in May 2025 and lower average short-term debt interest rates.

Previous wording

Income tax expense at the other states segment decreased $1.7 million during the first quarter of 2026, compared with the same quarter in 2025, driven by lower pre-tax income.

Current wording

Income tax expense at the other states segment decreased $0.8 million during the second quarter of 2026, compared with the same quarter in 2025, driven by lower pre-tax income.

Previous wording

Interest expense at the electric transmission segment decreased $0.9 million during the first quarter of 2026, compared with the same quarter in 2025, due to the maturity of long-term debt.

Current wording

Interest expense at the electric transmission segment decreased $0.9 million during the second quarter of 2026, compared with the same quarter in 2025, due to the maturity of long-term debt in December 2025.

Previous wording

Income tax expense at the electric transmission segment increased $1.8 million during the first quarter of 2026, compared with the same quarter in 2025, driven by higher pre-tax income.

Current wording

Income tax expense at the electric transmission segment increased $3.0 million during the second quarter of 2026, compared with the same quarter in 2025, driven by higher pre-tax income.

Previous wording

Operating income at the non-utility energy infrastructure segment increased $15.6 million during the first quarter of 2026, compared with the same quarter in 2025, driven by these items at WECI:

Current wording

Operating income at the non-utility energy infrastructure segment increased $49.4 million during the second quarter of 2026, compared with the same quarter in 2025, driven by these items at WECI:

Previous wording

•A $10.1 million improvement in revenue related to lower congestion related costs.

Current wording

•An $8.0 million increase in revenue related to lower congestion related costs.

Previous wording

These increases in operating income were partially offset by a $5.4 million increase in operation and maintenance expenses due primarily to having higher fixed cost full service agreements in place in 2026 compared to the same period in 2025 when we performed less maintenance due to the cold weather.

Current wording

•A $6.4 million reduction in operation and maintenance expenses due primarily to having fixed cost full service agreements in place in 2026 compared to the same period in 2025.

Previous wording

•A $7.9 million positive impact related to the receipt of performance payments in the first quarter of 2026.

Current wording

•A $6.3 million positive impact related to the receipt of performance payments in the second quarter of 2026.

Previous wording

In addition to the above items at WECI, there was a $2.2 million positive impact from We Power due to continued capital investment.

Current wording

In addition to the above items at WECI, there was a $2.3 million positive impact from We Power due to continued capital investment.

Previous wording

Interest expense at the non-utility energy infrastructure segment decreased $0.9 million during the first quarter of 2026, compared with the same quarter in 2025, primarily due to a lower principal balance, as a result of the semi-annual principal payments on long-term debt.

Current wording

Interest expense at the non-utility energy infrastructure segment decreased $0.6 million during the second quarter of 2026, compared with the same quarter in 2025, primarily due to a lower principal balance, as a result of the semi-annual principal payments on long-term debt. Partially offsetting the decrease was a $1.3 million increase in interest expense due to WECI's issuance of a $100.0 million long-term intercompany note to WEC Energy Group in April 2026. This intercompany interest expense is offset by higher interest income at our corporate and other segment and is eliminated in consolidation.

Previous wording

The income tax benefit at the corporate and other segment increased $8.5 million during the first quarter of 2026, compared with the same quarter in 2025. This increase was driven by a $9.9 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 2026, compared with the same quarter in 2025. Partially offsetting this increase in the income tax benefit was a $1.1 million decrease in excess tax benefits recognized related to stock option exercises.

Current wording

Income tax expense at the corporate and other segment increased $3.5 million during the second quarter of 2026, compared with the same quarter in 2025. This increase was driven by an $8.3 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 2026, compared with the same quarter in 2025.

Previous wording

We expect our 2026 annual effective tax rate to be between 5.5% and 6.5%. 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 2026 annual effective tax rate to be between 6.5% and 7.5%. 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.