What changed in this filing

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Item 1. Business

2025-02-21 compared with 2024-02-22 · 161 added, 151 removed, 561 unchanged (36% of the section changed)

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Electric Sales Forecast

Our service territory experienced slightly lower weather-normalized retail electric sales in 2023, compared with 2022, due to lower sales to large commercial and industrial customers.

We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to remain relatively flat for 2024, assuming normal weather.

Our service territory experienced relatively flat weather-normalized retail electric sales in 2024, compared with 2023.

We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to increase 0.7% for 2025, assuming normal weather.

Year Ended December 31

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Electric Commercial and Industrial Retail Customers

We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food products, and health services.

We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food manufacturing, and health services.

Electric Generation and Supply Mix

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Over the longer term, the target for our generation fleet is to be net carbon neutral by 2050.

As part of our path toward these goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units.

By the end of 2030, we expect to use coal as a backup fuel only, and we believe we will be in a position to eliminate coal as an energy source by the end of 2032.

As part of our path toward these goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units and plan to co-fire with natural gas at Weston Unit 4.

By the end of 2030, we expect to use coal as a backup fuel only and to be in a position to eliminate coal as an energy source by the end of 2032.

Creating a Sustainable Future

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 discussed in more detail below, should better balance our supply with our demand, while maintaining reliable, affordable energy for our customers.

We already have retired more than 1,900 MWs of coal-fired generation since the beginning of 2018, which included the 2019 retirement of the PIPP 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.

Our capital plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and reliable, efficient natural gas-fired generation.

The retirements are intended to address compliance with the EPA Clean Air rules as well as 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 reliable, efficient natural gas generation discussed in more detail below should better balance our supply with our demand, while helping to address compliance and maintaining reliable, affordable energy for our customers.

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 PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit.

See Note 6, Regulatory Assets and Liabilities, for more information related to these power plant retirements.

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.

We expect to retire approximately 1,200 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8, the jointly-owned Columbia Units 1 and 2 while investigating conversion of at least one unit to natural gas, and Weston Unit 3.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on the ESG Progress Plan.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on our capital plan.

Also see Item 1A.

Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of GHG gas legislation, regulation, and emission reduction goals.

Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of greenhouse gas legislation, regulation, and emission reduction goals.

Renewable Generation

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These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators.

In December 2018, WE received approval from the PSCW for the DRER pilot program, a program 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 addition, in July 2023, the PSCW approved the Renewable Pathway Pilot, which 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.

In April 2023, WPS, along with an unaffiliated utility, completed the acquisition of Red Barn, a commercially operational utility-scale wind-powered electric generating facility.

The project is located in Grant County, Wisconsin, and WPS owns 82 MWs of this project.

In September 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct Badger Hollow Wind and to acquire Whitetail, two utility-scale wind-powered electric generating facilities.

If approved, Badger Hollow Wind will be located in Iowa and Grant counties, Wisconsin, and Whitetail will be located in Grant County, Wisconsin.

Once fully constructed, WE and WPS will collectively own 100 MWs of wind generation of Badger Hollow Wind and 60 MWs of wind generation of Whitetail.

If approved, the construction of both of these projects is expected to be completed in 2027.

Solar and Battery Storage

In December 2023, the construction of Badger Hollow II located in Iowa County, Wisconsin was completed, and the facility became commercially operational.

Badger Hollow II is owned by WE and an unaffiliated utility, with WE owning 100 MWs of the facility.

In December 2024, the construction of the solar portion of Paris located in Kenosha County, Wisconsin was completed, and the facility became commercially operational.

Paris is owned by WE, WPS, and an unaffiliated utility, with WE and WPS collectively owning 180 MWs of solar generation.

WE and WPS will collectively own 99 MWs of battery storage of this project, with construction expected to be completed in 2025.

2024 Form 10-K 7

WEC Energy Group, Inc.

As part of our commitment to invest in additional zero-carbon generation within our Wisconsin segment, we have filed requests to acquire and construct 370 MWs of additional projects, including the following:

• In February 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct High Noon, a utility-scale solar-powered electric generating facility.

The project will be located in Columbia County, Wisconsin and once fully constructed, WE and WPS will collectively own 270 MWs of solar generation of this project.

The construction is expected to be completed by the end of 2026.

• In December 2023, UMERC filed a request with the MPSC to acquire and construct Renegade, a utility-scale solar-powered electric generating facility.

The project will be located in Delta County, Michigan and once fully constructed UMERC will own 100 MWs of solar generation.

As part of our commitment to invest in additional zero-carbon generation within our Wisconsin segment, we have filed requests to acquire and construct 868 MWs of additional renewable generation and 244 MWs of battery storage, including the following:

• In October 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct Good Oak and Gristmill, two utility-scale solar-powered electric generating facilities.

If approved, both Good Oak and Gristmill will be located in Columbia County, Wisconsin.

Once fully constructed, WE and WPS will collectively own 88 MWs of solar generation of Good Oak and 60 MWs of solar generation of Gristmill.

If approved, the construction for both projects is expected to be completed in 2028.

• In September 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire Dawn Harvest, a utility-scale solar-powered electric generating facility with a battery energy storage system.

If approved, the project will be located in Rock County, Wisconsin and once fully constructed, WE and WPS will collectively own 135 MWs of solar generation and WE will own 50 MWs of battery storage of this project.

If approved, the construction is expected to be completed in 2028.

• In September 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire Saratoga, a utility-scale solar-powered electric generating facility with a battery energy storage system, and Ursa, a utility-scale solar-powered electric generating facility.

If approved, Saratoga will be located in Wood County, Wisconsin and Ursa will be located in Columbia County, Wisconsin.

Once fully constructed, WE and WPS will collectively own 135 MWs of solar generation and 45 MWs of battery storage of Saratoga and 180 MWs of solar generation of Ursa.

If approved, the Ursa construction is expected to be completed in 2027, and the Saratoga construction is expected to be completed in 2028.

• In February 2024, WE and WPS, along with an unaffiliated utility, filed a request with the PSCW to acquire and construct High Noon, a utility-scale solar-powered electric generating facility with a battery energy storage system .

If approved, the project will be located in Columbia County, Wisconsin and once fully constructed, WE and WPS will collectively own 2 70 MWs of solar generation and 149 MWs of battery storage of this project .

If approved, the construction of the solar and battery storage is expected to be completed in 2027.

We have also received approvals from the PSCW to invest in 595 MWs of renewable generation and 217 MWs of battery storage currently under construction, including the following:

• In April 2024, UMERC received MPSC approval to acquire and construct Renegade, a utility-scale solar-powered electric generating facility.

The project will be located in Delta and Marquette counties, Michigan and once fully constructed, UMERC will own 100 MWs of solar generation.

The construction is expected to be completed by the end of 2026.

We have also received approvals from the PSCW to invest in 809 MWs of additional projects currently in construction, including the following:

• In April 2023, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire Koshkonong, a utility-scale solar-powered electric generating facility.

The project will be located in Dane County, Wisconsin and once fully constructed, WE and WPS will collectively own 270 MWs of solar generation.

The construction is expected to be completed in 2026.

• In December 2022, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Darien, a utility-scale solar-powered electric generating facility.

The project will be located in Rock and Walworth counties, Wisconsin and once fully constructed, WE and WPS will collectively own 225 MWs of solar generation.

The construction is expected to be completed in 2024.

• In January 2022, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Paris, a utility-scale solar-powered electric generating facility with a battery energy storage system.

The project will be located in Kenosha County, Wisconsin and once fully constructed, WE and WPS will collectively own 180 MWs of solar generation and 99 MWs of battery storage of this project.

• In April 2023, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire Koshkonong, a utility-scale solar-powered electric generating facility with a battery energy storage system.

The project will be located in Dane County, Wisconsin and once fully constructed, WE and WPS will collectively own 270 MWs of solar generation and 149 MWs of battery storage of this project.

The construction of the solar portion and battery storage is expected to be completed in 2026 and 2027, respectively.

• In December 2018, WE received approval from the PSCW for the Solar Now pilot program, which is expected to add a total of 35 MWs of solar generation to WE's portfolio, allowing non-profit and government 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 one under construction, together totaling more than 30 MWs.

WE and WPS actively review and pursue distribution system interconnected solar projects.

WE and WPS partner with proven developers to identify and purchase cost effective solar projects for our customers.

These projects are typically ground-mounted modules in the range of 5-10 MWs and are connected to the WE or WPS distribution systems, as applicable.

Currently, WE has 30 MWs of distribution connected projects under contract, which are estimated to go in-service in 2024.

• In December 2022, WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct Darien, a utility-scale solar-powered electric generating facility with a battery energy storage system.

The project will be located in Rock and Walworth counties, Wisconsin and once fully constructed, WE and WPS will collectively own 225 MWs of solar generation and 68 MWs of battery storage of this project.

The construction of the solar portion and battery storage is expected to be completed in 2025 and 2026, respectively .

Natural Gas-Fired Generation

In July 2023, WE and WPS completed construction of seven natural gas-fired generation RICE units with a rated capacity of 130 MWs at WPS's Weston power plant site.

In June 2023, WE completed the acquisition of 100 MWs of West Riverside's nameplate capacity, in the first of two potential option exercises.

In May 2024, WE completed the acquisition of an add itional 100 MWs o f West Riverside's nameplate capacity, in the second of two option exercises.

West Riverside is a commercially operational dual fueled combined cycle generation facility in Beloit, Wisconsin and is operated by an unaffiliated utility.

In addition, WPS filed a request with the PSCW in September 2023 to exercise a second option to acquire an additional 100 MWs of West Riverside's nameplate capacity.

As it did with the first option, in October 2023, WPS filed for approval to assign its ownership interest pursuant to this second option to WE , with the transaction expected to close in 2024.

In January 2023, WE and WPS completed the acquisition of Whitewater, a commercially operational dual fueled combined cycle generation facility in Whitewater, Wisconsin with a rated capacity of 242.8 MWs.

2024 Form 10-K 8

WEC Energy Group, Inc.

Other Sustainability Programs

In August 2021, the PSCW approved pilot programs for WE and WPS to install and maintain EV charging equipment for customers at their homes or businesses.

The programs provide direct benefits to customers by removing cost barriers associated with installing EV equipment.

In October 2021, subject to the receipt of any necessary regulatory approvals, we pledged to expand the EV charging network within the service territories of our electric utilities.

In doing so, we joined a coalition of utility companies in a unified effort to make EV charging convenient and widely available throughout the Midwest.

The coalition we joined is planning to help build and grow EV charging corridors, enabling the general public to safely and efficiently charge their vehicles.

In April 2024, WE filed requests with the PSCW for the following projects:

• Adding seven natural gas-fired RICE units near the Paris Generating Station.

The new RICE units would be fueled with natural gas and capable of producing approximately 128 MWs.

• Building five natural gas-fired combustion turbines capable of producing approximately 1,100 MWs, which would be located at the existing OCPP site.

Electric System Reliability

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The results of this hedging program, when used, are reflected in the average costs of fuel and purchased power.

We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants.

We have firm and interruptible transportation, as well as balancing and storage

2024 Form 10-K 9

WEC Energy Group, Inc.

We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants.

We have firm and interruptible transportation, as well as balancing and storage agreements, intended to support our plants' variable usage.

agreements, intended to support our plants' variable usage.

WE and WPS also have PSCW approval for a hedging program to mitigate against volatility related to natural gas price risk.

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In addition, our Wisconsin segment offers natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier.

Major industries served include real estate, food products, governmental, restaurants, and paper.

Major industries served include real estate, food manufacturing, governmental, restaurants, and paper.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class in Wisconsin and the Upper Peninsula of Michigan.

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Natural Gas Sales Forecast

Our combined Wisconsin service territories experienced lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2023 as compared to 2022.

Our combined Wisconsin service territories experienced slightly lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2024 as compared to 2023.

We currently forecast retail natural gas delivery volumes to grow 1.9% in 2025, assuming normal weather.

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Pipeline Capacity and Storage

The interstate pipelines serving Wisconsin access supply from natural gas producing areas in the Southern and Eastern United States, along with western Canada.

We have contracted for long-term firm capacity from a number of these sources.

We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.

This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio.

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We generally inject natural gas into storage during the spring and summer months and withdraw it in the winter months.

We hold daily transportation and storage capacity entitlements with interstate pipeline companies as well as other service providers under varied-length long-term contracts.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

We contract with interstate pipeline companies, as well as other service providers, to purchase firm transportation and storage services under varied-length long-term contracts.

We believe that having diverse capacity and storage benefits our customers.

Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Our Wisconsin segment natural gas utilities' forecasted design peak-day throughput is 37.0 million therms for the 2024 through 2025 heating season.

Our Wisconsin segment natural gas utilities' peak daily send-out during 2024 was 25.3 million therms on January 16, 2024.

Peak or near-peak demand generally occurs only a few times each year.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand.

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For information on the GCRMs, see Note 1(d), Operating Revenues.

To ensure a reliable supply of natural gas during peak winter conditions, we have LNG and propane facilities located within our distribution system.

To ensure a reliable supply of natural gas during peak winter conditions, we have LNG facilities located within our distribution system.

These facilities are typically utilized during extreme demand conditions to ensure reliable supply to our customers.

WE recently finished construction of an LNG facility that was placed into service in November 2023, which provides approximately one Bcf of natural gas supply.

In addition to its existing facilities, WG is constructing an additional LNG facility, which will provide approximately one Bcf of natural gas supply.

Commercial operation of the WG LNG facility is targeted for 2024.

The use of LNG allows us to meet anticipated peak demand without requiring the construction of additional interstate pipeline capacity.

WE and WG completed construction of LNG facilities that were placed into service in November 2023 and February 2024, respectively, which

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WEC Energy Group, Inc.

Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Our Wisconsin segment natural gas utilities' forecasted design peak-day throughput is 36.7 million therms for the 2023 through 2024 heating season.

Our Wisconsin segment natural gas utilities' peak daily send-out during 2023 was 22.9 million therms on January 31, 2023.

together provide approximately 2.0 Bcf of natural gas supply.

In addition to its existing facilities, WE has filed a request with the PSCW to construct another LNG facility with a storage capacity of 2.0 Bcf.

In addition, the construction of additional LNG facilities in Wisconsin has been proposed as part of the 2025-2029 capital plan and would provide another approximately 4.0 Bcf of natural gas supply.

The use of LNG allows us to meet anticipated peak demand without requiring the construction of additional interstate pipeline capacity.

Natural Gas Supply

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Pipeline Capacity and Storage

The interstate pipelines serving Illinois access supply from natural gas producing areas in the Southern and Eastern United States, along with western Canada.

We have contracted for long-term firm capacity from a number of these sources.

We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.

This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio.

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These service fees reduce the cost of natural gas and services charged to retail customers in rates.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Our Illinois utilities' forecasted design peak-day throughput is 25.3 million therms for the 2024 through 2025 heating season.

Our Illinois utilities' peak daily send-out during 2024 was 19.6 million therms on January 14, 2024.

Peak or near-peak demand generally occurs only a few times each year.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand.

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For information on the GCRMs, see Note 1(d), Operating Revenues.

Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Our Illinois utilities' forecasted design peak-day throughput is 25.4 million therms for the 2023 through 2024 heating season.

Our Illinois utilities' peak daily send-out during 2023 was 15.9 million therms on January 31, 2023.

Natural Gas Supply

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Their hedging programs are reviewed by the ICC as part of the annual purchased gas adjustment reconciliation.

They hedge between 25% and 50% of natural gas purchases, with a target of 37.5%.

They hedge between 25% and 50% of planned natural gas purchases, with a target of 37.5%.

Natural Gas System Modernization Program

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Beginning December 1, 2023, recovery of SMP costs are included in PGL's base rates.

As part of the ICC's November 16, 2023 rate order issued in PGL's rate case, the ICC ordered PGL to pause spending on its SMP until the ICC has a proceeding to determine the optimal method of pipeline replacement and a prudent investment level.

The ICC initiated the proceeding on January 31, 2024, and the proceeding is expected to last twelve months.

PGL and NSG subsequently filed an application for rehearing with the ICC requesting reconsideration of various issues in the ICC's November 16, 2023 written orders.

On January 3, 2024, the ICC granted PGL and NSG a limited-scope rehearing, which includes 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 our delivery system.

As part of the ICC's November 16, 2023 rate order issued in PGL's rate case, the ICC ordered PGL to pause spending on its SMP until the ICC had a proceeding to determine the optimal method of pipeline replacement and a prudent investment level.

The ICC conducted a limited-scope rehearing related to 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.

On June 7, 2024, PGL filed a petition with the Illinois Appellate Court for review of the November 16, 2023 and May 30, 2024 orders, including the disallowance of SMP capital investments needed to meet safety and reliability requirements.

Although the ICC ordered PGL to complete safety and reliability work in 2024, it denied the recovery of these costs.

2024 Form 10-K 13

WEC Energy Group, Inc.

For information on regulatory proceedings related to the SMP and future recovery of SMP costs, see Note 26, Regulatory Environment, and Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Future Illinois Proceedings.

In accordance with the November 16, 2023 rate order, the ICC initiated the SMP proceeding in January 2024.

On February 20, 2025, the ICC issued an order setting expectations for PGL's prospective operations under its SMP.

The ICC directed us to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.

The ICC also indicated that failure to comply with this directive could subject us to civil penalties under Illinois statute.

We are evaluating the impact of this order on our operations and capital plan.

For information on regulatory proceedings related to the SMP, see Note 26, Regulatory Environment, and Item 7.

Other States Segment

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In addition, MERC and MGU offer natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier.

Major industries served include education, wholesale distributors, real estate, non-profits, and restaurants.

Major industries served include real estate, education, wholesale distributors, restaurants, and metals manufacturing.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Other States Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class.

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We believe that having diverse capacity and storage benefits our customers.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

Combined with our storage capability, management believes that the volume of gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Forecasted design peak-day throughput for our other states utilities is 9.6 million therms for the 2024 through 2025 heating season.

Our other states utilities' peak daily send-out during 2024 was 7.5 million therms on January 15, 2024.

Peak or near-peak demand generally occurs only a few times each year.

Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets.

The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand.

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For information on the GCRMs, see Note 1(d), Operating Revenues.

Combined with our storage capability, management believes that the volume of gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand.

Forecasted design peak-day throughput for our other states utilities is 9.7 million therms for the 2023 through 2024 heating season.

Our other states utilities' peak daily send-out during 2023 was 6.8 million therms on February 3, 2023.

Natural Gas Supply

Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, contracted and owned storage, and natural gas supply call options.

We contract for fixed-term firm natural gas supply each year to meet the

2024 Form 10-K 14

WEC Energy Group, Inc.

demand of firm system sales customers.

Natural Gas Supply

Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, contracted and owned storage, and natural gas supply call options.

We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers.

To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets.

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We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers.

In 2023, our generating plants performed as expected during the warmest periods of the summer, and all power purchase commitments under firm contract were received.

In 2024, our generating plants performed as expected during the most demanding periods of the year, and all power purchase commitments under firm contract were received.

During this period, our electric utilities did not make any public appeals for conservation, and they did not interrupt or curtail service to non-firm customers who participate in load management programs.

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Our electric utilities compete with other utilities for sales to municipalities and cooperatives as well as with other utilities and marketers for wholesale electric business.

2024 Form 10-K 15

WEC Energy Group, Inc.

Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments

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Electrification initiatives or mandates are being considered or proposed by local and state governments.

In addition, the majority of

2023 Form 10-K 15

WEC Energy Group, Inc.

our natural gas customers have the opportunity to choose a natural gas supplier other than us.

In addition, the majority of our natural gas customers have the opportunity to choose a natural gas supplier other than us.

Our natural gas utilities offer transportation services for customers that elect to purchase natural gas directly from a third-party supplier.

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As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is offset by an equal reduction to natural gas costs.

For more information on electrification initiatives in certain of our Illinois service territories, see Item 7.

For more information on competition in each of our service territories, see Item 7.

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Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments

We continue to reduce methane emissions by improving our natural gas distribution system.

We also continue to focus on methane emission reductions by improving our natural gas distribution systems.

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 RNG for our natural gas distribution business in Wisconsin, which will be transporting the output of local dairy farms onto our gas distribution systems.

We plan to achieve our net-zero goal through an effort that includes 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.

These contracts bring us to 1.8 Bcf of RNG planned to enter our systems.

RNG began flowing in 2023.

We currently have contracts in place for 2.1 Bcf of RNG.

In addition, subject to regulatory approval, we expect to procure RTCs.

ELECTRIC TRANSMISSION SEGMENT

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Properties, for more information on our non-utility energy infrastructure facilities.

2024 Form 10-K 16

WEC Energy Group, Inc.

We Power, through wholly owned subsidiaries, designed and built approximately 2,500 MWs of generation in Wisconsin.

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We Power's share of the ERGS units and both PWGS units are being leased to WE under long-term leases (the ERGS units have 30-year leases that began on the in-service dates of the generating units and the PWGS units have 25-year leases that began on the in-service dates of the generating units).

2023 Form 10-K 16

WEC Energy Group, Inc.

As part of our carbon emission reduction goals, we have started implementing co-firing with natural gas at the ERGS coal-fired units.

For information on our carbon emission reduction goals, see Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.

Because of the significant investment necessary to construct these generating units, we constructed the plants under Wisconsin's Leased Generation Law, which allows a non-utility affiliate to construct an electric generating facility and lease it to the public utility.

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Sapphire Sky 90.0% February 2023

Maple Flats 90.0% November 2024

Delilah I 90.0% December 2024

(1) Although Samson I was commercially operational in May 2022, WECI didn't complete the purchase of its initial 80.0% ownership interest in this solar facility until February 2023.

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See Note 2, Acquisitions, for more information.

Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, and Sapphire Sky have offtake agreements with creditworthy counterparties for the sale of all of the energy they produce over periods ranging from 10 to 22 years following commercial operation.

Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Maple Flats, and Delilah I have offtake agreements with creditworthy counterparties for the sale of all of the energy they produce over periods

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ranging from 10 to 22 years following commercial operation.

In addition, Upstream's revenue is substantially fixed over the 10-year period following commercial operation through an agreement with a creditworthy counterparty.

Under the Tax Legislation, all of these investments qualify for PTCs.

WECI is entitled to the tax benefits of Bishop Hill III, Upstream, Blooming Grove, Thunderhead, Samson I, and Sapphire Sky in proportion to its ownership interest.

WECI is entitled to 99% of the tax benefits of Coyote Ridge and Tatanka Ridge for the first 11 years following commercial operation, and is entitled to 99% of the tax benefits of Jayhawk for the first 10 years following commercial operation, after which WECI will be entitled to any tax benefits equal to its ownership interests.

WECI is entitled to the tax benefits of Bishop Hill III, Upstream, Blooming Grove, Thunderhead, Samson I, Sapphire Sky, Maple Flats, and Delilah I in proportion to its ownership interest.

WECI recognizes PTCs as power is generated over a period of 10 years following commercial operation.

Under the new IRA transferability option, WEC Energy Group entered into a sales agreement in September 2023 to sell substantially all of the PTCs generated by the WECI generating facilities in 2023 to a third party.

Under the IRA transferability option, WEC Energy Group sold substantially all of its 2023 generated PTCs, including those generated by WECI, to a third party.

In addition, WEC Energy Group has entered into agreements to sell substantially all of its 2024 generated PTCs and the majority of the PTCs expected to be generated in 2025, including PTCs generated by WECI, to third parties.

See Note 1(q), Income Taxes, for more information about the impact of these sales.

In October 2022, WECI signed an agreement to acquire an 80% ownership interest in Maple Flats, a 250 MW solar generating facility under construction in Clay County, Illinois.

The project has an offtake agreement for all of the energy to be produced by the facility

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for a period of 15 years following commencement of commercial operation.

WECI's investment in Maple Flats is expected to qualify for PTCs.

See Note 25, Supplemental Cash Flow Information, for more information on proceeds received in 2024 and 2023 related to the sale of PTCs.

In February 2025, WECI completed the acquisition of a 90.0% ownership interest in Hardin III, a 250 MW solar generating facility located in Hardin County, Ohio.

The project has an offtake agreement for all of the energy to be produced by the facility for a period of 15 years from the date of commercial operation.

Hardin III qualifies for PTCs and is included in the non-utility energy infrastructure segment.

See Note 2, Acquisitions, for more information on certain of these renewable generating facilities.

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Historically, wind production has been greater in the first and fourth quarters.

The electricity produced and revenues generated by our Samson I solar generating facility is also variable and depends heavily on seasonality and weather conditions.

The electricity produced and revenues generated by solar generating facilities is also variable and depends heavily on seasonality and weather conditions.

Spring and summer are usually the peak solar production seasons due to increased direct sunlight and longer days.

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Also, major storms can damage solar panels and other equipment and lead to lower power generation until equipment can be repaired or replaced and brought back online.

See Note 7, Property, Plant, and Equipment, for more information on the wind storms that damaged equipment at Samson I in 2023.

See Note 7, Property, Plant, and Equipment, for more information on the wind storms that damaged equipment at Samson I.

Corporate and Other Segment

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We report to the PSCW annually on our compliance with this law and provide supporting documentation to show that our non-utility assets are below the non-utility asset cap.

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Regulated Utility Operations

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the Michigan Department of Natural Resources;

the Army Corps;

the United States Army Corps of Engineers;

the Minnesota Department of Natural Resources;

and the Minnesota Pollution Control Agency.

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Our utilities' rates are subject to the regulations and oversight of various state regulatory commissions and the FERC, as applicable.

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See Note 26, Regulatory Environment, for more information on these earnings sharing mechanisms.

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The table below reflects the various state commissions that regulated each of our utilities' retail rates during 2024, along with the approved ROE and capital structure for each utility during 2024.

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WG – Natural gas PSCW 9.80% 53.0%

UMERC – Electric (former WE customers) MPSC 10.1% 55.3%

UMERC – Electric (former WPS customers) MPSC 10.2% 52.94%

PGL – Natural gas (1)

ICC 9.05% / 9.38% 50.33% / 50.79%

UMERC – Electric (former WE customers) (1)

MPSC 10.1% 55.3%

UMERC – Electric (former WPS customers) (1)

MPSC 10.2% 52.94%

PGL – Natural gas ICC 9.38% 50.79%

NSG – Natural gas (2)

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MPSC 9.80% 51.0%

(1) In accordance with its most recent rate order, effective December 1, 2023, PGL's base rates reflect a 9.38% authorized ROE and an average common equity component of 50.79%.

(1) Effective January 1, 2025, UMERC's electric base rates for non-mine customers reflect a 9.86% authorized ROE and an average common equity component of 50.0%.

See Note 26, Regulatory Environment, for more information.

(2) In accordance with its most recent rate order, effective February 1, 2024, NSG's new base rates reflect a 9.38% authorized ROE and an average common equity component of 52.58%.

(2) Effective February 1, 2024, NSG's base rates reflect a 9.38% authorized ROE and an average common equity component of 52.58%.

See Note 26, Regulatory Environment, for more information.

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(3) In accordance with its most recent rate order, effective March 1, 2024, MERC's base rates will reflect a 9.65% authorized ROE and an average common equity component of 53.0%.

(3) MERC's final rates approved by the MPUC in November 2023 were retroactive to January 1, 2023.

See Note 26, Regulatory Environment, for more information.

(4) In accordance with its most recent rate order, effective January 1, 2024, MGU's base rates reflect a 9.80% authorized ROE and an average common equity component of 51.0%.

(4) Effective January 1, 2025, MGU's base rates reflect a 9.86% authorized ROE and an average common equity component of 50.0%.

See Note 26, Regulatory Environment, for more information.

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The material and information contained on these websites are not intended to be a part of, nor are they incorporated by reference into, this Annual Report on Form 10-K.

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Wholesale Rates

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Costs for new regional transmission projects are allocated to load-serving entities throughout the MISO footprint, while the costs for new generation interconnections are allocated to the interconnection customer.

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Within MISO, transmission congestion is monetized and included within an LMP that is established through the energy market.

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To meet this requirement, load-serving entities can own generation and demand response resources, acquire generation capacity through MISO's annual capacity auction, or acquire generation capacity through bilateral contracts.

The zone in which our electric utilities’ load resides, along with the MISO North region as a whole, had sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2023 and May 31, 2024.

The zone in which our electric utilities’ load resides, along with the MISO North region as a whole, has sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2024 and May 31, 2025.

We manage our electric generation portfolios to minimize their exposure within MISO’s annual capacity auction.

This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to ensure we do not have a significant short position.

This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to help avoid a significant short position.

Other Electric Regulations

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Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline).

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

A final rule is expected to be released in 2024.

We are required to provide natural gas service and grant credit (with applicable deposit requirements) to customers within our service territories.

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Bluewater is regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978.

In addition, the Pipeline and Hazardous Materials Safety Administration is responsible for monitoring and enforcing requirements governing Bluewater's safety compliance programs for its pipelines under the United States Department of Transportation regulations.

In addition, the PHMSA is responsible for monitoring and enforcing requirements governing Bluewater's safety compliance programs for its pipelines under the United States Department of Transportation regulations.

These regulations include 49 CFR Parts 191, 192, and 195.

Given that Bluewater is required to route some of its natural gas through Canada, applicable

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reporting and licensing with the United States Department of Energy and the Canadian National Energy Board are also required, along with routine reporting related to imports and exports.

Given that Bluewater is required to route some of its natural gas through Canada, applicable reporting and licensing with the DOE and the Canadian National Energy Board are also required, along with routine reporting related to imports and exports.

All of our operational renewable generating facilities in our non-utility energy infrastructure segment are also subject to the FERC’s regulation of wholesale energy under the Federal Power Act.

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We believe our employees are among our most important resources, so investing in human capital is critical to our success.

We strive to foster a diverse workforce and inclusive workplace;

attract, retain and develop talented personnel;

and keep our employees safe and healthy.

We strive to attract, retain, and develop talented personnel and keep our employees safe, healthy, and engaged.

Our Board of Directors retains collective responsibility for comprehensive risk oversight, including critical areas that could impact our sustainability, such as human capital.

Management regularly reports to the Board of Directors on human capital management topics, including corporate culture, diversity, equity, and inclusion, employee development, and safety and health.

The Board of Directors delegates specified duties to its committees.

In addition to its responsibilities relative to executive compensation, the Compensation Committee has oversight responsibility for reviewing organizational matters that could significantly impact us, including succession planning.

The Compensation Committee reviews recruiting and development programs and priorities, receives updates on key talent, and assesses workforce diversity across the organization.

Management regularly reports to the Board of Directors on human capital management topics, including corporate culture, succession planning, training and employee development, and safety and health.

The Board of Directors

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delegates specified duties to its committees.

The Compensation Committee reviews recruiting and development programs and priorities, receives updates on key talent, and assesses workforce composition across the organization.

As of December 31, 2024, we had the following number of employees, including those represented under union agreements:

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Our compensation package also includes a 401(k) savings plan with an employer match, an annual incentive plan based on meeting company goals, healthcare and insurance benefits, vacation and paid time off days, as well as other benefits.

Diversity, Equity, and Inclusion

We are committed to fostering a diverse workforce and inclusive workplace.

Our commitment is a core strategic competency and an integral part of our culture.

As of December 31, 2023, women and racial minorities represented approximately 25% and 26%, respectively, of our workforce.

We have a number of initiatives that promote diverse workforce contributions, educate employees about diversity, equity, and inclusion, and ensure our companies are attractive employers for persons of diverse backgrounds.

These initiatives include nine business resource groups (voluntary, employee-led groups organized around a particular shared background or interest), mentoring programs, and training for leaders on countering unconscious bias, building inclusive teams, and preventing workplace harassment.

We also support external leadership and educational programs that support, train, and promote women and minorities in the communities we serve.

We are committed to ensuring a fair workplace and an engaged workforce.

Our commitment is a core strategic competency and an integral part of our culture, with longstanding programs for individual development, reinforcement of our core values, and a recruitment strategy that is focused on building a deep talent pipeline to support our business needs.

During 2024, we demonstrated this commitment through training and development of employees at all levels of the organization, our comprehensive merit review and succession planning processes, and a range of community partnerships.

In addition, we have a number of initiatives that promote workforce contributions and participation and ensure our companies are attractive employers for persons of all backgrounds.

These initiatives include nine business resource groups (voluntary, employee-led groups organized around a particular shared background or interest), mentoring programs, and education and training for all employees in order to develop and support inclusive teams.

We are committed to a workplace free from bias and harassment.

We also support external leadership and educational programs that support, train, and promote individuals in the communities we serve.

Safety and Health

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We encourage employees to receive preventive examinations and to proactively care for their health through free health screenings, wellness challenges, and other resources.

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Development and Training

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business