Wisconsin Electric Power Co. Files Q3 2024 10-Q

TL;DR

WEPCO's Q3 2024 10-Q is in. Financials and operations detailed.

AI Summary

Wisconsin Electric Power Co. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the company, which operates in the electric services sector. Key financial metrics and business segments are presented for the third quarter and the year-to-date period.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Wisconsin Electric Power Co., crucial for understanding the company's stability and future prospects in the energy sector.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures for a publicly traded utility company.

Key Players & Entities

• WISCONSIN ELECTRIC POWER CO (company) — Filer
• 20240930 (date) — Period of Report
• 20241101 (date) — Filed as of Date
• 414-221-2345 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $10 — atest practicable date: Common Stock, $10 Par Value, 33,289,327 shares outstandi

Filing Documents

• wep-20240930.htm (10-Q) — 1696KB
• a2024q3we10qexhibit311.htm (EX-31.1) — 11KB
• a2024q3we10qexhibit312.htm (EX-31.2) — 11KB
• a2024q3we10qexhibit321.htm (EX-32.1) — 4KB
• a2024q3we10qexhibit322.htm (EX-32.2) — 4KB
• 0000107815-24-000250.txt ( ) — 8810KB
• wep-20240930.xsd (EX-101.SCH) — 64KB
• wep-20240930_cal.xml (EX-101.CAL) — 80KB
• wep-20240930_def.xml (EX-101.DEF) — 305KB
• wep-20240930_lab.xml (EX-101.LAB) — 729KB
• wep-20240930_pre.xml (EX-101.PRE) — 522KB
• wep-20240930_htm.xml (XML) — 1454KB

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) 3 Condensed Consolidated Income Statements 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Cash Flows 5 Condensed Consolidated Statements of Equity 6 Notes to Condensed Consolidated Financial Statements 7 Page Note 1 General Information 7 Note 2 Acquisitions 7 Note 3 Disposition 7 Note 4 Operating Revenues 8 Note 5 Credit Losses 9 Note 6 Regulatory Assets and Liabilities 11 Note 7 Property, Plant, and Equipment 12 Note 8 Asset Retirement Obligations 12 Note 9 Common Equity 12 Note 10 Short-Term Debt and Lines of Credit 12 Note 11 Long-Term Debt 13 Note 12 Leases 13 Note 13 Materials, Supplies, and Inventories 14 Note 14 Income Taxes 14 Note 15 Fair Value Measurements 15 Note 16 Derivative Instruments 16 Note 17 Guarantees 18 Note 18 Employee Benefits 18 Note 19 Segment Information 18 Note 20 Variable Interest Entities 19 Note 21 Commitments and Contingencies 20 Note 22 Supplemental Cash Flow Information 24 Note 23 Regulatory Environment 24 Note 24 New Accounting Pronouncements 25 ITEM 2.

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

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 26 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 46 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 46 PART II. OTHER INFORMATION 47 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 47 ITEM 1A.

RISK FACTORS

RISK FACTORS 47 ITEM 5. OTHER INFORMATION 47 ITEM 6. EXHIBITS 48 SIGNATURE 49 09/30/2024 Form 10-Q i 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: Affiliates ATC American Transmission Company LLC We Power W.E. Power, LLC WEC Energy Group WEC Energy Group, Inc. WEPCo Environmental Trust WEPCo Environmental Trust Finance I, LLC WPS Wisconsin Public Service Corporation Federal and State Regulatory Agencies CBP United States Customs and Border Protection Agency DOC United States Department of Commerce EPA United States Environmental Protection Agency IRS United States Internal Revenue Service PSCW Public Service Commission of Wisconsin SEC United States Securities and Exchange Commission USITC United States International Trade Commission WDNR Wisconsin Department of Natural Resources Accounting Terms AFUDC Allowance for Funds Used During Construction ARO Asset Retirement Obligation ASU Accounting Standards Update FASB Financial Accounting Standards Board GAAP United States Generally Accepted Accounting Principles OPEB Other Postretirement Employee Benefits VIE Variable Interest Entity Environmental Terms BATW Bottom Ash Transport Water BTA Best Technology Available CASAC Clean Air Scientific Advisory Committee CCR Coal Combustion Residuals CO 2 Carbon Dioxide CRL Combustine Residual Leachate CWA Clean Water Act ELG Steam Electric Effluent Limitation Guidelines FGD Flue Gas Desulfurization GHG Greenhouse Gas MATS Mercury and Air Toxics Standards NAAQS National Ambient Air Quality Standards NOx Nitrogen Oxide PM Particulate Matter WPDES Wisconsin Pollutant Discharge Elimination System Measurements Bcf Billion Cubic Feet Dth Dekatherm lb/MMBtu Pound Per Million British Thermal Unit MW Megawatt MWh Megawatt-hours g/m3 Micrograms Per Cubic Met

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS WISCONSIN ELECTRIC POWER COMPANY CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 (in millions) 2024 2023 2024 2023 Operating revenues $ 1,079.3 $ 1,103.1 $ 3,020.1 $ 3,095.3 Operating expenses Cost of sales 353.9 394.3 986.0 1,131.3 Other operation and maintenance 241.6 236.6 720.6 674.9 Depreciation and amortization 145.5 132.8 427.1 389.9 Property and revenue taxes 17.0 28.5 77.1 86.8 Total operating expenses 758.0 792.2 2,210.8 2,282.9 Operating income 321.3 310.9 809.3 812.4 Other income, net 19.5 17.9 52.0 52.0 Interest expense 123.3 115.3 364.5 350.0 Other expense ( 103.8 ) ( 97.4 ) ( 312.5 ) ( 298.0 ) Income before income taxes 217.5 213.5 496.8 514.4 Income tax expense 47.8 49.7 107.2 116.7 Net income 169.7 163.8 389.6 397.7 Preferred stock dividend requirements 0.3 0.3 0.9 0.9 Net income attributed to common shareholder $ 169.4 $ 163.5 $ 388.7 $ 396.8 The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements. 09/30/2024 Form 10-Q 3 Wisconsin Electric Power Company Table of Contents WISCONSIN ELECTRIC POWER COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts) September 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 253.4 $ 6.1 Accounts receivable and unbilled revenues, net of reserves of $ 40.8 and $ 44.5 , respectively 558.0 573.0 Accounts receivable from related parties 101.3 143.9 Materials, supplies, and inventories 313.8 310.6 Prepaid taxes 82.0 112.7 Other prepayments 16.0 26.7 Other 25.4 32.3 Current assets 1,349.9 1,205.3 Long-term assets Property, plant, and equipment, net of accumulated depreciation and amortization of $ 5,857.6 and $ 5,779.2 , respectively 12,385.8 11,585.5 Regulatory assets (September 30, 2024 and December 31, 2023 include $ 79.1 and

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View this 10-Q filing on SEC EDGAR