WEC Energy Group, Inc. (WEC) SEC Filings & Earnings Calls

Regulatory approval risk for Point Beach PPA extension; construction risks for Oak Creek site.

“Company is seeking PSCW approval of the PPA; construction risks mentioned in forward-looking statements.” · word for word

PPA is subject to PSCW approval; termination possible if not approved by early 2028.

“WEPCO is seeking approval of the PPA by the Public Service Commission of Wisconsin... PPA may be terminated by either WEPCO or NEPB if PSCW approval has not been obtained prior to January 1, 2028” · word for word

Succession risk is low as transition is planned and Garcia has relevant experience.

“Orderly transition with Garcia starting August 31, 2026 and Guc staying as advisor.”

Data center demand uncertainty

“Risks related to providing service to data centers and other large-scale customers including project termination, cancellation or delay, failure to receive regulatory approvals of projects or tariffs or other necessary permitting or siting approvals, delays in recovery of contractual reimbursement for project costs, the ability to fully recover our investmen” · word for word

Tariff and trade policy cost risk

“The risk of delays and shortages, and increased costs of equipment, materials, or other resources that are critical to our business operations and corporate strategy, as a result of changes to United States trade policy (including changes to tariffs on imports, port fees, and other trade policy tools) as well as changes to foreign governments' trade policies” · word for word

Weather sensitivity

“The margin impact from unfavorable spring weather during the second quarter of 2026, compared with the same quarter in 2025. As measured by heating degree days, the second quarter of 2026 was 20.4% warmer than the same quarter in 2025 in the combined WE and WG service area.” · word for word

Regulatory and weather risks; data center demand execution risk.

“Risk factors include regulatory decisions, weather, supply chain disruptions, and data center project execution.”

Execution risk on data center projects and large customer tariff

“Forward-looking statements mention ability to execute capital plan including data center projects”

Data Center Demand Uncertainty

“Risks related to providing service to data centers including project termination, cancellation or delay, failure to receive regulatory approvals, and lower than anticipated need for electricity by these customers.” · word for word

Weather Sensitivity

“First quarter 2026 was 4.0% warmer than the same quarter in 2025 in the Milwaukee area, impacting natural gas sales volumes.”

Regulatory Risk

“The timing, resolution, and impact of rate cases and negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment.” · word for word

Weather dependency for earnings guidance

“This assumes normal weather for the remainder of the year” · word for word

Natural gas delivery decline

“natural gas deliveries in Wisconsin decreased by 3.5 percent”

Regulatory risk from PSCW rate case decisions; operational risk from plant extension and new generation timeline.

“Possibility that PSCW orders differ from proposals; extension of aging units until late 2027.”

Illinois regulatory disallowance risk

“a $0.46 per share charge, reflecting an agreement on the terms of a proposed settlement that would resolve all open rider reconciliation proceedings in Illinois.” · word for word

Coal phase-out execution risk

“We affirmed our plan to eliminate coal as an energy source by the end of 2032.” · word for word

Capital plan execution risk

“management reviewed the plan with the Board. Management and the Board discussed the foundation underlying the $36.5 billion in projected investments over five years (2026-2030)” · word for word

Regulatory risk in Illinois; proposed settlement subject to ICC approval.

“Slide 9: 'Settlement subject to ICC approval'”

Data center demand may not materialize as expected; construction and supply chain risks.

“Slide 2 risk factors: 'projects related to providing services to data centers and other large-scale customers' and 'supply chain disruptions'”

Increased debt load may lead to higher interest expense and leverage.

“Issuance of additional $400M in senior notes, increasing total debt to $850M”

Illinois regulatory disallowance risk

“Future disallowances by the ICC could be material. The aggregate capital costs included in the rider during the open reconciliation years, along with any previously recognized return on these investments, totaled approximately $3.0 billion as of December 31, 2025.” · word for word

Chicago decarbonization ordinance risk

“PGL's future natural gas operations could be materially adversely impacted if the CABO is passed.” · word for word

Solar panel tariff and supply chain risk

“As a result of these duties, the cost and availability of solar panels in the U.S. has been impacted and the U.S. solar industry overall has experienced higher costs of materials as well as delays. Some of these impacts have already been reflected in the estimated cost and in-service dates for certain of our solar projects.” · word for word

Interest rate risk

“An increase in interest rates may adversely affect our results of operations and the ability of our regulated subsidiaries to earn their approved rates of return.” · word for word

Counterparty credit risk

“Should the counterparties to these arrangements fail to perform or if capacity is inadequate, we may be required to replace the underlying commitment at current market prices or we may be unable to meet all of our customers' electric and natural gas requirements unless or until alternative supply arrangements are put in place.” · word for word

Regulatory risk from Illinois settlement and rate reviews; $130M rate base reduction and $125M cash credits proposed.

“Proposed settlement terms: $130 million rate base reduction, $75 million cash credit (Rider QIP), $50 million cash credit (Rider UEA).” · word for word

Illinois regulatory settlement charge of $0.46 per share, resolved but indicates regulatory risk in Illinois operations.

“Full-year 2025 earnings include a charge of 46 cents per share, reflecting an agreement on the terms of a proposed settlement the company reached with the Illinois Attorney General that would resolve all open proceedings in Illinois related to the QIP rider and the UEA rider.” · word for word

Regulatory settlement increases costs and reduces rate base; potential for further regulatory scrutiny.

“PGL agreed to permanently remove $130.0 million of qualified infrastructure investment costs from rate base starting in 2027 and to distribute $75.0 million to its customers as bill credits” · word for word

Regulatory disallowance risk from ICC proceedings

“disallowance recommendations by interveners relating to unresolved Qualifying Infrastructure Plant (QIP) and Uncollectible Expense Adjustment (UEA) expense reconciliation dockets” · word for word

No material risk signals

Forward-looking statements include risks from supply chain disruptions, inflation, and regulatory changes

“Cautionary statement lists numerous risk factors including supply chain disruptions, inflation, and regulatory changes”

Regulatory risk: rate case outcomes and environmental regulations.

“Timing, resolution and impact of rate cases; changes in environmental laws.” · word for word

Execution risk on large data center projects.

“Ability to execute on capital plan including data center projects.”

Increased leverage from $600M junior subordinated note issuance; higher interest expense at 5.625%.

“Issuance of $600M in junior subordinated notes with 5.625% coupon.”

Regulatory disallowance risk in Illinois

“the ICC's disallowance of certain capital costs in PGL's 2016 rider QIP reconciliation” · word for word

Data center project cancellation risk

“Risks related to providing service to our data center and other large-scale customers including project termination, cancellation or delay” · word for word

Supply chain and tariff risk

“The risk of delays and shortages, and increased costs of equipment, materials, or other resources that are critical to our business operations and corporate strategy, as a result of changes to U.S. trade policy” · word for word

Potential dilution from equity forward sales.

“Equity distribution agreement could lead to share issuance.”

Regulatory disallowance risk from Illinois Commerce Commission (ICC) on QIP rider capital expenditures.

“Third quarter 2024 earnings included a 6 cents per share charge related to certain capital expenditures under the QIP rider that were disallowed by the Illinois Commerce Commission.” · word for word

Weather dependency for earnings; normal weather assumption for guidance.

“This assumes normal weather for the remainder of the year.” · word for word