Wisconsin Electric Power Co. Files 2023 Annual Report

TL;DR

<b>Wisconsin Electric Power Co. has submitted its 2023 10-K annual report detailing financial performance and position.</b>

AI Summary

WISCONSIN ELECTRIC POWER CO (WELPM) filed a Annual Report (10-K) with the SEC on February 22, 2024. Wisconsin Electric Power Co. filed its 10-K annual report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is Electric Services. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking WISCONSIN ELECTRIC POWER CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Wisconsin Electric Power Co.'s financial health and operational results for the fiscal year 2023, crucial for investors and stakeholders to assess performance. The detailed financial data, including historical comparisons, allows for trend analysis and informed decision-making regarding the company's stability and future prospects in the electric services sector.

Risk Assessment

Risk Level: medium — WISCONSIN ELECTRIC POWER CO shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains significant financial data, it does not inherently signal immediate positive or negative events, placing its risk profile in the medium category for analysis.

Analyst Insight

Review the detailed financial statements and disclosures within the 10-K to understand Wisconsin Electric Power Co.'s performance and identify any potential risks or opportunities.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-22 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Primary year of reporting)
• 2022 — Previous Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• WISCONSIN ELECTRIC POWER CO (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 4911 (industry_code) — Standard Industrial Classification for Electric Services
• WI (location) — State of incorporation
• 414-221-2345 (phone) — Business phone number

FAQ

Industry Context

Wisconsin Electric Power Co. operates within the Electric Services industry, providing electricity to customers. This sector is characterized by significant infrastructure investment and regulatory oversight.

Regulatory Implications

As an electric utility, Wisconsin Electric Power Co. is subject to extensive regulation by state and federal agencies, impacting its operations, pricing, and environmental compliance.

What Investors Should Do

1. Analyze the revenue and expense details for fiscal year 2023.
2. Examine the balance sheet for changes in assets, liabilities, and equity compared to prior years.
3. Review any disclosures related to regulatory matters or significant operational changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-22: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $100 — Serial Preferred Stock, 3.60% Series, $100 Par Value Six Per Cent. Preferred Stoc
• $10 — as of January 31, 2024 Common Stock, $10 par value, 33,289,327 shares outstandin

Filing Documents

• wep-20231231.htm (10-K) — 3205KB
• a2023we10kexhibit104.htm (EX-10.4) — 14KB
• a2023we10kexhibit231.htm (EX-23.1) — 2KB
• a2023we10kexhibit311.htm (EX-31.1) — 9KB
• a2023we10kexhibit312.htm (EX-31.2) — 9KB
• a2023we10kexhibit321.htm (EX-32.1) — 4KB
• a2023we10kexhibit322.htm (EX-32.2) — 4KB
• 0000107815-24-000097.txt (&nbsp;) — 17822KB
• wep-20231231.xsd (EX-101.SCH) — 130KB
• wep-20231231_cal.xml (EX-101.CAL) — 117KB
• wep-20231231_def.xml (EX-101.DEF) — 739KB
• wep-20231231_lab.xml (EX-101.LAB) — 1456KB
• wep-20231231_pre.xml (EX-101.PRE) — 1036KB
• wep-20231231_htm.xml (XML) — 3320KB

BUSINESS

BUSINESS 3 A. INTRODUCTION 3 B. UTILITY SEGMENT 3 C. REGULATION 12 D. ENVIRONMENTAL COMPLIANCE 14 E. HUMAN CAPITAL 14 ITEM 1A.

RISK FACTORS

RISK FACTORS 16 ITEM 1B. UNRESOLVED STAFF COMMENTS 28 ITEM 1C. CYBERSECURITY 28 ITEM 2.

PROPERTIES

PROPERTIES 30 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 31 ITEM 4. MINE SAFETY DISCLOSURES 31 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 32 PART II 33 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 33 ITEM 6. RESERVED 33 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 34 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 53 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 54 A. Report of Independent Registered Public Accounting Firm 54 B. Consolidated Income Statements 56 C. Consolidated Balance Sheets 57 D. Consolidated Statements of Cash Flows 58 E. Consolidated Statements of Equity 59 F.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 60 Note 1 Summary of Significant Accounting Policies 60 Note 2 Acquisitions 68 Note 3 Disposition 68 Note 4 Related Parties 69 Note 5 Operating Revenues 71 Note 6 Credit Losses 72 Note 7 Regulatory Assets and Liabilities 73 Note 8 Property, Plant, and Equipment 75 Note 9 Jointly Owned Utility Facilities 76 Note 10 Asset Retirement Obligations 77 Note 11 Common Equity 77 Note 12 Preferred Stock 79 Note 13 Short-Term Debt and Lines of Credit 79 Note 14 Long-Term Debt 80 Note 15 Leases 81 Note 16 Income Taxes 85 Note 17 Fair Value Measurements 87 Note 18 Derivative Instruments 88 Note 19 Employee Benefits 88 2023 Form 10-K i Wisconsin Electric Power Company Table of Contents Note 20 Segment Information 93 Note 21 Variable Interest Entities 93 Note 22 Commitments and Contingencies 94 Note 23 Supplemental Cash Flow Information 100 Note 24 Regulatory Environment 100 Note 25 Other Income, Net 103 Note 26 New Accounting Pronouncements 103 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 104 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 104 ITEM 9B. OTHER INFORMATION 104 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 104 PART III 105 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT 105 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 105 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 105 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 105 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 105 PART IV 106 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 106 ITEM 16. FORM 10-K SUMMARY 109 SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS 110

SIGNATURES

SIGNATURES 111 2023 Form 10-K ii Wisconsin Electric Power Company Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: Subsidiaries and Affiliates ATC American Transmission Company LLC Bluewater Bluewater Natural Gas Holding, LLC UMERC Upper Michigan Energy Resources Corporation WBS WEC Business Services LLC WE Wisconsin Electric Power Company We Power W.E. Power, LLC WEC Energy Group WEC Energy Group, Inc. WEPCo Environmental Trust WEPCo Environmental Trust Finance I, LLC WG Wisconsin Gas LLC WPS Wisconsin Public Service Corporation Federal and State Regulatory Agencies Army Corps United States Army Corps of Engineers CBP United States Customs and Border Protection Agency DOC United States Department of Commerce EPA United States Environmental Protection Agency FERC Federal Energy Regulatory Commission IRS United States Internal Revenue Service PSCW Public Service Commission of Wisconsin SEC Securities and Exchange Commission WDNR Wisconsin Department of Natural Resources Accounting Terms AFUDC Allowance for Funds Used During Construction ARO Asset Retirement Obligation ASC Accounting Standards Codification ASU Accounting Standards Update CWIP Construction Work in Progress FASB Financial Accounting Standards Board GAAP Generally Accepted Accounting Principles OPEB Other Postretirement Employee Benefits VIE Variable Interest Entity Environmental Terms Act 141 2005 Wisconsin Act 141 BATW Bottom Ash Transport Water BTA Best Technology Available CASAC Clean Air Scientific Advisory Committee CCR Coal Combustion Residual CO 2 Carbon Dioxide CWA Clean Water Act ELG Steam Electric Effluent Limitation Guidelines FGD Flue Gas Desulfurization GHG Greenhouse Gas LDC Local Natural Gas Distribution Company MATS Mercury and Air Toxics Standards NAAQS National Ambient Air Quality Standards NOx Nitrog

BUSINESS

ITEM 1. BUSINESS A. INTRODUCTION In this report, when we refer to "us," "we," "our," or "ours," we are referring to Wisconsin Electric Power Company. The term "utility" refers to our regulated activities, while the term "non-utility" refers to our activities that are not regulated. References to "Notes" are to the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. We are a subsidiary of WEC Energy Group and were incorporated in the state of Wisconsin in 1896. We maintain our principal executive offices in Milwaukee, Wisconsin and serve customers in Wisconsin. We conduct our business primarily through our utility reportable segment. For more information about our utility operations, including financial and geographic information, see Note 20, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments. Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports are made available on WEC Energy Group's website, www.wecenergygroup.com, free of charge, as soon as reasonably practicable after they are filed with or furnished to the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov. B. UTILITY SEGMENT Electric Utility Operations We generate and distribute electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2023

View Full Filing

View this 10-K filing on SEC EDGAR