WEC Energy Group, Inc., through its wholly owned subsidiaries, provides or invests in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy.
Utility Energy Operations
Wisconsin segment
The Wisconsin segment includes the electric and natural gas utility operations of Wisconsin Electric Power Company (WE), Wisconsin Public Service Corporation (WPS), Wisconsin Gas LLC (WG), and Upper Michigan Energy Resources Corporation (UMERC).
Electric Utility...
WEC Energy Group, Inc., through its wholly owned subsidiaries, provides or invests in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy.
Utility Energy Operations
Wisconsin segment
The Wisconsin segment includes the electric and natural gas utility operations of Wisconsin Electric Power Company (WE), Wisconsin Public Service Corporation (WPS), Wisconsin Gas LLC (WG), and Upper Michigan Energy Resources Corporation (UMERC).
Electric Utility Operations
The company’s electric utility operations include the operations of WE, WPS, and UMERC.
WE generate and distributes electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin.
WPS generates and distributes electric energy to customers located in northeastern and central Wisconsin.
UMERC generates and distributes electric energy to customers, including one iron ore mine owned by Tilden, located in the Upper Peninsula of Michigan.
Electric Sales
The company’s electric energy deliveries included supply and distribution sales to retail, wholesale, and resale customers, and distribution sales to those customers who switched to an alternative electric supplier in the Upper Peninsula of Michigan.
The company’s electric utilities are authorized to provide retail electric service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities, and in certain territories in the state of Michigan pursuant to franchises granted by municipalities.
The company provides wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers.
The majority of the company’s sales for resale are sold into an energy market operated by MISO at market rates based on the availability of the company’s generation and market demand.
The company’s electric utilities buy and sell electric power by participating in the MISO Energy Markets (MISO Energy and Operating Reserves Market).
Steam Sales
WE have a steam utility that generates, distributes, and sells steam supplied by the VAPP to customers in metropolitan Milwaukee, Wisconsin. Steam is used by customers for processing, space heating, domestic hot water, and humidification.
Electric Sales Forecast
The company’s service territory experienced relatively flat weather-normalized retail electric sales in 2024, compared with 2023. The company 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.
Customers
Electric Commercial and Industrial Retail Customers
The company provides electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food manufacturing, and health services. Through the company’s participation in the MISO Energy Markets, it supplies a significant amount of electricity to the company’s customers from generation it owns. The company supplements its internally generated power supply with long-term PPAs, including the Point Beach PPA discussed under the heading ‘Power Purchase Commitments,’ and through spot purchases in the MISO Energy Markets. The company also sell excess power supply into the MISO Energy Markets.
Electric Generation Facilities
The company’s generation portfolio is a mix of energy resources having different operating characteristics and fuel sources designed to balance providing energy that is stable, reliable, and affordable with environmental stewardship. The company owns 8,158 MWs of generation capacity, including wholly owned and jointly owned facilities. The company’s Power's generating units are also included in the generation capacity. The company’s facilities include natural gas-fired plants, coal-fired plants, and renewable generation. Certain of the company’s natural gas-fired generation units have the ability to burn oil if natural gas is not available due to delivery constraints.
Renewable Generation
The company’s electric utilities meet a portion of their electric generation supply with various renewable energy resources, including wind, solar, hydroelectric, and biomass. This helps the company’s electric utilities work towards its goals of reducing carbon emissions while also maintaining compliance with renewable energy legislation.
Wind
In September 2024, WE and WPS, along with an unaffiliated utility, filed a request with the Public Service Commission of Wisconsin (PSCW) to acquire and construct Badger Hollow Wind and to acquire Whitetail, two utility-scale wind-powered electric generating facilities.
Solar and Battery Storage
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.
As part of the company’s commitment to invest in additional zero-carbon generation within its Wisconsin segment, the company has 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 Public Service Commission of Wisconsin (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 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.
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 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.
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 in Wood County, Wisconsin and Ursa will be 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.
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 in Columbia 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 company also received approvals from the PSCW to invest in 595 MWs of renewable generation and 217 MWs of battery storage 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 in Delta and Marquette counties, Michigan and once fully constructed, UMERC will own 100 MWs of solar generation.
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 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.
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 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.
Natural Gas-Fired Generation
In May 2024, WE completed the acquisition of an additional 100 MWs of 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 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
The PSCW requires the company to maintain a planning reserve margin above its projected annual peak demand forecast to help ensure reliability of electric service to the company’s customers.
In both the company’s Wisconsin and Michigan jurisdictions, it has adequate capacity through company-owned generation units and power purchase contracts to meet the MISO calculated planning reserve margin during the current planning year. The company also fully anticipate that it will have adequate capacity to meet the planning reserve margin requirements for the upcoming planning year in both jurisdictions.
Fuel and Purchased Power Costs
The company’s retail electric rates in Wisconsin are established by the PSCW and include base amounts for fuel and purchased power costs. The electric fuel rules set by the PSCW generally allow the company to defer, for subsequent rate recovery or refund, under- or over-collections of actual fuel.
The company purchases natural gas for its plants on the spot market from natural gas marketers, utilities, and producers, and the company arranges for transportation of the natural gas to its plants. The company’s firm and interruptible transportation, as well as balancing and storage agreements, intended to support its plants' variable usage.
Coal Supply
The company diversifies the coal supply for its electric generating facilities and jointly owned plants by purchasing coal from several mines in Wyoming and Pennsylvania, as well as from various other states. For 2025, 100% of the company’s total projected coal requirements of 4.3 million tons are contracted under fixed-price contracts.
Coal Deliveries
The company’s coal requirements to be shipped by unit trains it owns or lease under existing transportation agreements. The unit trains transport the coal for electric generating facilities from mines in Wyoming and Pennsylvania.
Power Purchase Commitments
The company enters short- and long-term power purchase commitments to meet a portion of the company’s anticipated electric energy supply needs. Excluding planning capacity purchases, the company power purchase commitments with unaffiliated parties consist of 1,133 MWs per year for 2025 through 2029. This amount includes 1,033 MWs per year related to a long-term PPA for electricity generated by Point Beach. To procure additional planning capacity, the company purchases capacity from the MISO annual auction to ensure that it maintains the company’s compliance with planning reserve requirements as established by the PSCW, MPSC, and MISO.
Natural Gas Utility Operations
WE, WPS, and WG are authorized to provide retail natural gas distribution service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities. The company’s Wisconsin natural gas utilities operate throughout the state of Wisconsin, including the City of Milwaukee and surrounding areas, northeastern Wisconsin, and in large areas of both central and western Wisconsin. In addition, UMERC is authorized to provide retail natural gas distribution service in designated territories in the Upper Peninsula of Michigan.
The company’s Wisconsin segment natural gas utilities provide service to residential and commercial and industrial customers. In addition, the company’s Wisconsin segment offers natural gas transportation services to its customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, food manufacturing, governmental, restaurants, and paper.
Natural Gas Sales Forecast
The company combined Wisconsin service territories experienced slightly lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2024. The company forecast retail natural gas delivery volumes to grow 1.9% in 2025, assuming normal weather.
Natural Gas Supply, Pipeline Capacity and Storage
The company manages portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Pipeline Capacity and Storage
The company has long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.
Due to variations in natural gas usage in Wisconsin, the company’s Wisconsin natural gas utilities have also contracted for substantial underground storage capacity, primarily in Michigan. WE, WPS, and WG have entered into long-term service agreements for approximately 99% of a wholly owned subsidiary of Bluewater's natural gas storage. Bluewater owns natural gas storage facilities in Michigan and provides approximately one-third of the current storage needs for the company’s Wisconsin natural gas utilities.
The company’s contract with interstate pipeline companies, as well as other service providers, to purchase firm transportation and storage services under varied-length long-term contracts.
To ensure a reliable supply of natural gas during peak winter conditions, the company has LNG facilities located within its distribution system. These facilities are typically utilized during extreme demand conditions to ensure reliable supply to the company’s customers.
Natural Gas Supply
The company’s natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. The company’s contract for fixed-term firm natural gas supplies each year to meet the demand of firm system sales customers.
Illinois segment
The company’s Illinois segment includes the natural gas utility operations of PGL and NSG. The company’s customers are in Chicago and the northern suburbs of Chicago. PGL and NSG provide service to residential and commercial and industrial customers. In addition, PGL and NSG offer natural gas transportation services to the company’s customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, education, non-profits, wholesale distributors, and food manufacturing.
Natural Gas Supply, Pipeline Capacity, and Storage
The company manages portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Pipeline Capacity and Storage
The company has long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas.
The company owns a 38.8 Bcf storage field (Manlove Field in central Illinois) and contract with various other underground storage service providers for additional storage services. Storage allows the company to manage significant changes in daily natural gas demand and to purchase steady levels of natural gas on a year-round basis, which provides a hedge against supply cost volatility. The company also owns a natural gas pipeline system that connects Manlove Field to Chicago and nine major interstate pipelines. These assets are directed primarily to serving rate-regulated retail customers and are included in the company’s regulatory rate base. The company also uses a portion of these company-owned storage and pipeline assets as a natural gas hub, which consists of providing transportation and storage services in interstate commerce to its wholesale customers. Customers deliver natural gas to the company for storage through an injection into the storage reservoir, and it returns the natural gas to the customers under an agreed schedule through a withdrawal from the storage reservoir. The company recognizes service fees associated with the natural gas hub services provided to wholesale customers. These service fees reduce the cost of natural gas and services charged to retail customers in rates.
Natural Gas Supply
The company’s natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. The company’s contract for fixed-term firm natural gas supplies each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, the company purchases additional natural gas supply on the monthly and daily spot markets.
Natural Gas System Modernization Program
During 2023, The Peoples Gas Light and Coke Company (PGL) continued work on the SMP, a project to replace approximately 2,000 miles of Chicago's aging natural gas pipeline infrastructure that began in 2011.
In accordance with the November 16, 2023, rate order, the Illinois Commerce Commission (ICC) initiated the SMP proceeding in January 2024. The ICC directed the company to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.
Other States segment
The company’s other states segment includes the natural gas utility operations of Minnesota Energy Resources Corporation (MERC) and Michigan Gas Utilities Corporation (MGU) and the non-utility operations of MERC related to servicing appliances for customers. MERC serves customers in various cities and communities throughout Minnesota, and MGU serves customers in southern and western Michigan. MERC and MGU provide service to residential and commercial and industrial customers. In addition, MERC and MGU offer natural gas transportation services to the company’s customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, education, wholesale distributors, restaurants, and metals manufacturing.
Natural Gas Supply, Pipeline Capacity and Storage
The company manages portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns.
Pipeline Capacity and Storage
MGU owns a 2.9 Bcf storage field (Partello in Michigan) and contracts with various other underground storage service providers for additional storage services. The company’s contract with local distribution companies and interstate pipelines to purchase firm transportation services.
Natural Gas Supply
The company’s 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. The company’s contract for fixed-term firm natural gas supplies each year to meet the demand of firm system sales customers. To supplement natural gas supply, the company purchases additional natural gas supply on the monthly and daily spot markets.
Seasonality
Electric Utility Operations – Wisconsin segment
The company’s electric utility sales are impacted by seasonal factors and varying weather conditions. The company sells more electricity during the summer months because of the residential cooling load. The company continues to upgrade its electric distribution system, including substations, transformers, and lines, to meet the demand of the company’s customers.
Natural Gas Utility Operations – Wisconsin, Illinois, and Other States segments
Since the majority of the company’s customers use natural gas for heating, customer use is sensitive to weather and is generally higher during the winter months.
Non-Utility Operations
Non-Utility Energy Infrastructure segment
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.
W.E. Power, LLC
We Power, through wholly owned subsidiaries, designed and built approximately 2,500 MWs of generation in Wisconsin. This generation is made up of capacity from the two coal-fired ERGS units, ER 1 and ER 2, which were placed in service in February 2010 and January 2011, respectively, and the two natural gas-fired PWGS units, PWGS 1 and PWGS 2, which were placed in service in July 2005 and May 2008, respectively. Two unaffiliated entities collectively own approximately 17%, or approximately 211 MWs, of ER 1 and ER 2. 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). As part of the company’s carbon emission reduction goals, it has started implementing co-firing with natural gas at the ERGS coal-fired units.
Because of the significant investment necessary to construct these generating units, the company 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.
Bluewater Natural Gas Holding, LLC
Bluewater, located in Michigan, primarily provides natural gas storage and hub services to the company’s Wisconsin natural gas utilities.
WEC Infrastructure LLC
On December 31, 2024, the company’s non-utility energy infrastructure segment included WECI's ownership interests in the renewable generating facilities.
Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Maple Flats, and Delilah I has offtake agreements with creditworthy counterparties for the sale of all the energy they produce over periods ranging from 10 to 22 years following commercial operation.
Corporate and Other Segment
The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, and the PELLC holding company, as well as the operations of Wispark and WBS. Wispark develops and invests in real estate, primarily in southeastern Wisconsin. WBS is a wholly owned centralized service company that provides administrative and general support services to the company’s regulated entities. WBS also provides certain administrative and support services to the company’s nonregulated entities.
Regulation
The company is a holding company and are subject to the requirements of the PUHCA 2005. The company also has various subsidiaries that meet the definition of a holding company under the PUHCA 2005 and are also subject to its requirements.
Regulated Utility Operations
The company’s utilities are subject to various other regulations, which primarily consist of regulations, where applicable, of the United States Environmental Protection Agency (EPA); the Wisconsin Department of Natural Resources (WDNR); the Illinois Department of Natural Resources; the Illinois Environmental Protection Agency; the Michigan Department of Environment, Great Lakes, and Energy; the Michigan Department of Natural Resources; the United States Army Corps of Engineers; the Minnesota Department of Natural Resources; and the Minnesota Pollution Control Agency.
The Federal Energy Regulatory Commission (FERC) regulates the company’s wholesale sales of electric energy, capacity, and ancillary services. The company’s electric utilities has received market-based rate authority from the FERC.
Other Electric Regulations
The company’s electric utilities are subject to the Federal Power Act and the corresponding regulations developed by certain federal agencies.
Other Natural Gas Regulations
All the natural gas the company distributes is transported to its distribution systems by interstate pipelines. The pipelines' transportation and storage services, including PGL's natural gas hub, are regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the PHMSA and the state commissions are responsible for monitoring and enforcing requirements governing the company’s natural gas utilities' safety compliance programs for its pipelines under the United States Department of Transportation regulations. These regulations include 49 CFR Part 191 (Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports), 49 CFR Part 192 (Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline).
Non-Utility Energy Infrastructure Operations
All the company’s operational renewable generating facilities in its non-utility energy infrastructure segment are also subject to the FERC’s regulation of wholesale energy under the Federal Power Act.
History
The company was founded in 1896. It was incorporated in the state of Wisconsin in 1981. It was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in 2015.
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