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. 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.

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 3.2 GWs of load growth in the Milwaukee-to-Chicago corridor through 2031. 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 2031. 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 $6.1 billion from 2026 to 2030 in efficient natural gas-fired generation and related infrastructure, 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. In August 2026, we entered into an agreement to extend the PPA for the Point Beach nuclear power plant, which will allow us to continue purchasing approximately 1,000 MWs of capacity for an additional 20 years beyond the current agreement. This new agreement is subject to PSCW approval and if approved, will not take effect until the current PPA expires in 2030 for Unit 1 and 2033 for Unit 2. The forecasted demand growth is also addressed in our capital plan with a range of planned investments in natural gas-fired generation, renewables, and battery storage. We plan on investing approximately $9.4 billion from 2027 to 2031 in efficient natural gas-fired generation and related infrastructure, including:

Previous wording

•3,300 MWs of CTs (we plan on constructing a new natural gas lateral pipeline to support the CTs planned at our OCPP site); and

Current wording

•3,540 MWs of CTs and reciprocating internal combustion engine natural gas-fueled generation (we plan on constructing a new natural gas lateral pipeline to support the CTs planned at our OCPP site);

Previous wording

We expect to invest approximately $12.6 billion from 2026 to 2030 in regulated renewable energy in Wisconsin. Our plan is to build and own zero-carbon-emitting renewable generation facilities that are anticipated to include the following investments:

Current wording

We expect to invest approximately $13.7 billion from 2027 to 2031 in regulated renewable energy in Wisconsin. Our plan is to build and own zero-carbon-emitting renewable generation facilities that are anticipated to include the following investments:

Previous wording

•3,850 MWs of utility-scale solar;

Current wording

•3,100 MWs of utility-scale solar;

Previous wording

•2,130 MWs of battery storage; and

Current wording

•3,450 MWs of battery storage; and

Previous wording

Our capital plan also reflects the planned retirement of our older, fossil-fueled generation, which we expect to replace with the natural gas-fired generation and zero-carbon-emitting renewables discussed above. These retirements are intended to address compliance with EPA regulations established under the CAA, as well as contribute to meeting our goal to reduce CO 2 emissions from our electric generation. Our long-term goal is to achieve net carbon neutral electric generation by the end of 2050. We expect to achieve this goal by continuing to make operating refinements, retiring less efficient generating units, and executing our capital plan. We expect to use coal only as a backup fuel by the end of 2030 and to be in a position to eliminate coal as an energy source by the end of 2032.

Current wording

Our capital plan also reflects the planned retirement of our older, fossil-fueled generation, which we expect to replace with the natural gas-fired generation and zero-carbon-emitting renewables discussed above. Our long-term goal is to achieve net carbon neutral electric generation by the end of 2050. We expect to achieve this goal by continuing to make operating refinements, retiring less efficient generating units, and executing our capital plan.

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 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.

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. 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 additional coal-fired generation, including OCPP Units 7 and 8. See Note 7, Property, Plant, and Equipment, for more information related to the planned retirement of OCPP Units 7 and 8. We and the other co-owners of Columbia Units 1 and 2 currently plan to continue coal operations at these units through at least 2030.

Previous wording

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

Current wording

When taken together, the retirements and new investments in natural gas generation and renewables should better balance our supply with our demand, while helping to maintain reliable, affordable energy for our customers.

Previous wording

•The PSCW approved WE's request to construct an LNG facility with a storage capacity of two Bcf, which will be located on the OCPP site. In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of our capital plan and would provide another approximately four 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 wording

•The PSCW approved WE's request to construct an LNG facility with a storage capacity of two Bcf, which will be located on the OCPP site. In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of our 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.

Previous wording

•Our capital plan includes $2.9 billion of investments in battery energy storage systems from 2026 to 2030, which are intended to capture excess power and release it during peak demand or when power is limited due to weather or other unexpected disruptions.

Current wording

•Our capital plan includes investments in battery energy storage systems, which are intended to capture excess power and release it during peak demand or when power is limited due to weather or other unexpected disruptions.

Previous wording

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

Current wording

We expect to spend approximately $7.6 billion and $5.2 billion on reliability related to natural gas and electric distribution projects, respectively, from 2027 to 2031, with continued investment over the next decade. For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Previous wording

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

Current wording

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

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 our $37.5 billion capital plan, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Current wording

Our planned investment focus from 2027 to 2031 is in our regulated utilities and our investment in ATC. We expect total capital expenditures for our regulated utility businesses to be approximately $42.2 billion from 2027 to 2031. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be approximately $5.3 billion. For additional information regarding projects included in our $47.5 billion capital plan, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Previous wording

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

Current wording

Under our "Target Zero" mission, we have an ultimate goal of zero incidents, accidents, and injuries. Management and union leadership work together to reinforce the Target Zero culture. We set annual goals for safety results as well as measurable leading indicators, in order to raise awareness of at-risk behaviors and situations and guide injury-prevention activities. All employees are

Previous 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:

Current wording

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

Previous wording

These increases in earnings were partially offset by an $11.6 million increase in the net loss attributed to common shareholders at the corporate and other segment, driven by an increase in an interim income tax expense recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate. Higher interest expense also contributed to the increase in the net loss attributed to common shareholders.

Current wording

•A $14.3 million decrease in the net loss attributed to common shareholders at the corporate and other segment, driven by a decrease in an interim income tax expense recorded to adjust consolidated income tax expense to the projected, annualized consolidated effective income tax rate. Net earnings from our equity method investments in technology and energy-focused investment funds during the third quarter of 2026, compared with net losses during the same quarter in 2025 also contributed to the lower net loss attributed to common shareholders.

Previous wording

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

Current wording

financial performance under GAAP. Utility margin (operating revenues less fuel and purchased power costs and cost of natural gas sold) is a non-GAAP financial measure because it excludes certain operation and maintenance expenses applicable to revenues, as well as depreciation and amortization and property and revenue taxes.

Previous 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.

Current wording

The Wisconsin segment's contribution to net income attributed to common shareholders was $361.7 million during the third quarter of 2026, representing an $80.4 million, or 28.6%, increase over the same quarter in 2025. The increase in earnings was driven by higher margins due to the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2026, higher retail sales volumes due to warmer summer weather and the impact of our VLCs, and carrying costs earned during the third quarter of 2026 on the construction of certain Bespoke Resources assigned to our VLCs. See Note 26, Regulatory Environment, in our 2025 Annual Report on Form 10-K, for more information on our Wisconsin rate orders. 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, an increase in transmission expense, and higher depreciation and amortization expense. These increases in operating expenses were partially offset by lower benefit 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 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.

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 third quarter of 2026 and 2025, $184.4 million and $157.9 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 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.

Current wording

(3)Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE. During the third quarter of 2026 and 2025, $28.2 million and $29.0 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 $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.

Current wording

•A $54.8 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 current return of $10.8 million consisting of carrying costs earned during the construction of certain bespoke resources assigned to our VLCs during the second quarter of 2026. See Note 4, Operating Revenues, for more information.

Current wording

•A current return of $38.3 million consisting of carrying costs earned during the construction of certain Bespoke Resources assigned to our VLCs during the third quarter of 2026. See Note 4, Operating Revenues, for more information.

Previous 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.

Current wording

•A $29.9 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 $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.

Current wording

•A $17.5 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

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.

Current wording

Other income, net at the Wisconsin segment increased $18.6 million during the third quarter of 2026, compared with the same quarter in 2025, driven by a $19.7 million positive impact from higher AFUDC-Equity due to continued capital investment.

Previous 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.

Current wording

Interest expense at the Wisconsin segment increased $16.1 million during the third quarter of 2026, compared with the same quarter in 2025. The increase was primarily due to the impact of long-term debt issuances in the fourth quarter of 2025 and 2026. This increase was partially offset by AFUDC-Debt that was $8.8 million higher quarter-over-quarter due to continued capital investment, and the impact of long-term debt maturities in 2025.

Previous wording

•A $7.9 million favorable income tax impact associated with certain tax-related regulatory deferrals; and

Current wording

•A $5.3 million favorable income tax impact associated with certain tax-related regulatory deferrals;

Previous wording

•A $5.4 million increase in benefit expenses, driven by higher deferred compensation and an increase in employees.

Current wording

•A $5.4 million increase in PTCs and ITCs; and

Previous wording

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

Current wording

•A $3.6 million increase in income tax benefits associated with AFUDC-Equity, driven by continued capital investment.

Previous 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:

Current wording

Additionally, the larger decrease in gross margin (GAAP) as compared with 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 $0.7 million decrease in costs at the Manlove Gas Storage Field; and

Current wording

•A partially offsetting $0.6 million decrease in costs at the Manlove Gas Storage Field.

Previous 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:

Current wording

Other operating expenses at the Illinois segment decreased $7.6 million, net of the $9.3 million impact of the riders referenced above, during the third quarter of 2026, compared with the same quarter in 2025. The significant factors impacting the decrease in other operating expenses were:

Previous wording

•A $0.7 million decrease in costs at the Manlove Gas Storage Field.

Current wording

•A $0.6 million decrease in costs at the Manlove Gas Storage Field.

Previous 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.

Current wording

Interest expense at the Illinois segment decreased $0.7 million during the third quarter of 2026, compared with the same quarter in 2025, driven by 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

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

Current wording

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

Previous wording

•A $1.0 million increase in natural gas operations and customer service expense.

Current wording

Additionally, the smaller increase in gross margin (GAAP) as compared to the increase in utility margin (non-GAAP), was driven by a $1.0 million increase in depreciation and amortization expense that is further described in Other Operating Expenses below.

Previous wording

•A $1.7 million increase in depreciation and amortization expense; and

Current wording

•A $1.7 million increase in the provision for credit losses, primarily driven by the aging of MGU's customer receivables.

Previous wording

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

Current wording

•A $1.0 million increase in depreciation and amortization expense related to continued capital investment.

Previous wording

•A $1.6 million increase related to MGU's energy optimization program, which provides rebates, incentives, and energy efficiency

Current wording

•A $0.8 million increase related to MGU's energy optimization program.