WEC ENERGY GROUP, INC.

WEC Energy Group, Inc. is a diversified holding company whose wholly owned subsidiaries provide or invest in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy. The company has an approximately 60% equity interest in ATC, an electric transmission company operating in Illinois, Michigan, Minnesota, and Wisconsin. At December 31, 2025, the company had six reportable segments: Wisconsin (electric and natural gas utility operations of WE, WPS, WG, and UMERC), Illinois (natural gas utility operations of PGL and NSG), Other States (natural gas utility operations of MERC and MGU), Electric Transmission (ATC), Non-Utility Energy Infrastructure (We Power, Bluewater, and WECI), and Corporate and Other.

The company's competitive positioning is built on a diversified generation portfolio that balances stable, reliable, and affordable electricity with environmental stewardship. Management emphasizes that the company's capital plan provides a roadmap premised upon maintaining superior reliability, delivering savings for customers, and growing investment in the future of energy. The company faces competition from various entities and other forms of energy sources, including self-generation by customers and alternative energy sources, as well as from other utilities for wholesale electric business and from other entities and other forms of energy for natural gas customers.

The company generates revenue primarily through regulated electric and natural gas utility operations, with rates subject to regulation by state commissions and the FERC. The core business model involves recovering prudently incurred costs and earning a reasonable return on invested capital through approved rates. The company's utility operations include electric generation, transmission, and distribution, as well as natural gas distribution and storage. Non-utility operations include leasing generation assets to WE, providing natural gas storage and hub services, and holding ownership interests in renewable generating facilities. The company also has an approximately 60% equity interest in ATC, an electric transmission company.

The Wisconsin segment includes electric utility operations of WE, WPS, and UMERC, and natural gas utility operations of WE, WPS, WG, and UMERC. In 2025, retail revenues accounted for 92.3% of total electric operating revenues, wholesale revenues accounted for 1.9% of total electric operating revenues, and resale revenues accounted for 4.8% of total electric operating revenues. The company owns 8,375 MWs of generation capacity, including wholly owned and jointly owned facilities. The generation portfolio includes natural gas-fired plants, coal-fired plants, renewable generation, and BESSs. The company's long-term goal is to achieve net carbon neutral electric generation by the end of 2050, and as of the end of 2025, the electric generation fleet has achieved a 53% reduction in carbon emissions from the 2005 baseline. The company expects 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. The company has retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, and expects to retire approximately 900 MWs of additional coal-fired generation by the end of 2031.

The Illinois segment includes the natural gas utility operations of PGL and NSG, serving customers in Chicago and the northern suburbs of Chicago. The Other States segment includes the natural gas utility operations of MERC and MGU, serving customers in Minnesota and Michigan. The Non-Utility Energy Infrastructure segment includes We Power, which owns and leases generating facilities to WE; Bluewater, which owns underground natural gas storage facilities in Michigan; and WECI, which holds ownership interests in several renewable generating facilities. At December 31, 2025, WECI had ownership interests in twelve renewable generating facilities, including wind and solar facilities, with total nameplate capacity of 2,654.2 MWs. The Electric Transmission segment includes ATC, a regional transmission company that owns, maintains, monitors, and operates electric transmission systems in Wisconsin, Michigan, Illinois, and Minnesota, in which the company has an approximately 60% equity interest.

In 2025, the company submitted a proposal to the PSCW for new Very Large Customer and Bespoke Resources tariffs. The company plans on investing approximately $5.4 billion from 2026 to 2030 in natural gas-fired generation, including 3,300 MWs of CTs and 180 MWs of RICE natural gas-fueled generation. The company expects to invest approximately $12.6 billion from 2026 to 2030 in regulated renewable energy in Wisconsin, including 3,850 MWs of utility-scale solar, 2,130 MWs of battery storage, and 555 MWs of wind. The company expects total capital expenditures for its regulated utility businesses to be approximately $33.4 billion from 2026 to 2030, and currently forecasts that its share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion. In February 2025, the ICC issued an order setting expectations for PGL's prospective operations, directing the company to focus on retiring all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035. In February 2026, PGL agreed on the terms of a proposed settlement that would resolve all proceedings of the open reconciliation years related to the QIP rider, resulting in a charge to income during the fourth quarter of 2025 through an impairment to net property, plant, and equipment and a reduction to revenues.

For the year ended December 31, 2025, consolidated net income attributed to common shareholders was $1,557.5 million ¹, compared to $1,527.2 million ² in 2024, an increase of $30.3 million ³. Diluted EPS was $4.81 ⁴ in 2025, compared to $4.83 ⁵ in 2024. The Wisconsin segment contributed $1,054.8 million ⁶ to net income, an increase of $191.7 million ⁷ from 2024. The Illinois segment contributed $122.1 million ⁸, a decrease of $130.0 million ⁹ from 2024. The Non-Utility Energy Infrastructure segment contributed $411.1 million ¹⁰, an increase of $30.3 million ¹¹ from 2024. The Corporate and Other segment had a net loss of $238.9 million ¹², compared to a net loss of $164.3 million ¹³ in 2024.

The company anticipates electric demand growth in the years ahead from economic developments, including data centers and modern manufacturing facilities. Microsoft has announced plans to invest over $20 billion in data centers in southern Wisconsin over the next several years, and the company expects up to 2.6 GWs of load growth in the Milwaukee-to-Chicago corridor through 2030. Additionally, Vantage Data Centers plans to develop a large data center campus in Port Washington that is forecasted to add 1.3 GWs of demand through 2030, with the potential to add an incremental 2.2 GWs for a total of up to 3.5 GWs over time. The company is working closely with these large customers to provide power to meet this substantial projected demand. The company plans on investing approximately $5.4 billion ¹⁴ from 2026 to 2030 in natural gas-fired generation, including 3,300 MWs ¹⁵ of CTs and 180 MWs ¹⁶ of RICE natural gas-fueled generation. The company expects to invest approximately $12.6 billion ¹⁷ from 2026 to 2030 in regulated renewable energy in Wisconsin, including 3,850 MWs ¹⁸ of utility-scale solar, 2,130 MWs ¹⁹ of battery storage, and 555 MWs ²⁰ of wind.

The company expects total capital expenditures for its regulated utility businesses to be approximately $33.4 billion ²¹ from 2026 to 2030. The company currently forecasts that its share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion ²². The company's capital plan includes $2.9 billion ²³ of investments in BESSs from 2026 to 2030. The company expects to spend approximately $7.1 billion ²⁴ and $4.7 billion ²⁵ on reliability related to natural gas and electric distribution projects, respectively, from 2026 to 2030.The company is making progress on its advanced metering infrastructure program, replacing aging meter-reading equipment. Through its multiyear Energy Delivery Program, the company is planning to implement capabilities and standard processes for customer service, natural gas and electric operations, work management, and field operations. The company continues to focus on integrating the resources of all its businesses and improving business processes, including evaluating the use of AI tools.

The company's capital plan includes significant investments in generation, distribution, and transmission assets. The company expects total capital expenditures for its regulated utility businesses to be approximately $33.4 billion ²⁶ from 2026 to 2030. The company currently forecasts that its share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion ²⁷. The filing does not specify R&D spending levels or share repurchase authorization amounts. The company reviews its dividend policy on a regular basis, and future dividends will be at the discretion of the Board of Directors.

The company faces risks related to providing service to its large-scale data center customers, including project termination, cancellation or delay, failure to receive regulatory approvals, and the ability to fully recover investment on assets developed to serve these customers. The company also faces risks from supply chain disruptions, inflation, and tariffs that could delay the delivery or result in shortages of materials, equipment, and other resources critical to business operations. The company's operations are subject to the effects of global climate change, which could result in extreme temperatures, more intense and frequent weather events, and other conditions that could adversely affect operations and financial results.

The company's operations are subject to significant state, local, and federal governmental legislation and regulation, including regulations by various utility commissions. Changes in legislation or regulations, their interpretation, or the imposition of new legislation or regulations could significantly impact business operations. The company faces significant costs to comply with existing and future environmental laws and regulations, including those related to air emissions, water quality, and climate change. The company's ability to obtain rate adjustments in the future is dependent upon regulatory action, and there is no assurance that regulators will consider all costs to have been prudently incurred or that rate proceedings will result in rates that fully recover costs or provide for a reasonable ROE.

The company's business is significantly impacted by governmental legislation, regulation, and oversight, and changes in legislation or regulations could significantly impact business operations. The company faces significant costs to comply with existing and future environmental laws and regulations, including those related to GHG emissions, and there is no guarantee that compliance costs will be fully recovered in rates. The company's operations are subject to risks arising from the reliability and safety of its electric generation, transmission, and distribution facilities, natural gas infrastructure, and renewable energy facilities, including hazards such as leaks, explosions, fires, and releases of toxic substances. The company faces risks related to providing service to large-scale data center customers, including project cancellation, failure to receive regulatory approvals, and the ability to fully recover investment on assets developed to serve these customers. The company's non-utility renewable energy facilities are subject to risks including unfavorable weather conditions, performance issues, and the ability to replace expiring PPAs on acceptable terms.

Management's message emphasizes building and sustaining long-term value for shareholders and customers by supporting economic growth in the region while focusing on the fundamentals of the business: reliability, operating efficiency, financial discipline, environmental stewardship, exceptional customer care, and safety. The strategic priorities emphasized for the period ahead include executing the capital plan to meet forecasted electric demand growth from data centers and other large customers, achieving the long-term goal of net carbon neutral electric generation by the end of 2050, and maintaining a strong balance sheet, stable cash flows, a growing dividend, and quality credit ratings. Management states that the company plans on investing approximately $5.4 billion ²⁸ from 2026 to 2030 in natural gas-fired generation and approximately $12.6 billion ²⁹ from 2026 to 2030 in regulated renewable energy in Wisconsin. The company expects total capital expenditures for its regulated utility businesses to be approximately $33.4 billion ³⁰ from 2026 to 2030, and currently forecasts that its share of ATC's projected capital expenditures over the next five years will be approximately $4.1 billion ³¹.