Wec Energy Group, Inc. · NYSE:WEC
Wec Energy — Investor Presentation (January 2025)
49 slides from Wec Energy's investor presentation, Jan 6, 2025
Slide 1: Energizing the Future: Investor Update January 2025
1 Energizing the Future Investor Update: January 2025
Slide 2: Cautionary Statement Regarding Forward-Looking Information
2 Cautionary Statement Regarding Forward-Looking Information Much of the information contained in this presentation is forward-looking information based upon management’s current expectations and projections that involve risks and uncertainties. Forward-looking information includes, among other thin
Slide 3: The Premier Energy Company in America's Heartland
3 The Premier Energy Company in America’s Heartland * As of Dec. 31, 2024 $29.8 billion market cap* 4.7 million retail customers 60% ownership of American Transmission Company $45.2 billion of assets
Slide 4: A History of Strong Earnings Growth
4 A History of Strong Earnings Growth $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 * Estimated based on 2025 guidance midpoint of $5.22 per share. ** 2024 Guidance (GAAP) is $4.74 – $4.84. 2024 Adjusted Guidance is
Slide 5: Consistent Performance Over Time
5 EPS Guidance 2023 Exceeded* 2022 Exceeded 2021 Exceeded 2020 Exceeded 2019 Exceeded 2018 Exceeded 2017 Exceeded 2016 Exceeded 2015 Exceeded 2014 Exceeded 2013 Exceeded 2012 Exceeded 2011 Exceeded 2010 Exceeded 2009 Exceeded 2008 Exceeded 2007 Exceeded 2006 Exceede
Slide 6: Strong Dividend Growth Continues
6 The board of directors announced its plan to raise the dividend by 6.9% to a new annual rate of $3.57 per share* 22nd consecutive year of rewarding shareholders with higher dividends Top-decile dividend growth in industry** Included in S&P's High Yield Dividend Aristocrats Index Strong Div
Slide 7: What's New?
7 What’s New?
Slide 8: Wisconsin Rate Review Outcome
8 Wisconsin Electric Wisconsin Gas Wisconsin Public Service Electric Natural Gas Natural Gas Electric Natural Gas Authorized ROE 9.80% 9.80% 9.80% 9.80% 9.80% Authorized Equity Ratio 53.00% 53.00% 53.00% 53.00% 53.00% 2025 Rate Increase % 4.2%1 7.1% 4.2% 4.5%1 3.8% 2025 Rate Increase $ (in millions)
Slide 9: Powering Industry Leaders in Our Region
9 Powering Industry Leaders in Our Region
Slide 10: 1,800 MW of Additional Demand through 2029
10 1,800 MW of Additional Demand through 2029 ‘Mount Pleasant AI data center will be among the world’s most advanced’ –Brad Smith, President of Microsoft BizTimes Milwaukee Strong Regional Growth Robust demand along I-94 Milwaukee to Chicago corridor: Microsoft announced $3.3 billion investment (2
Slide 11: Longer-Term Sales and Load Growth Remain Strong
11 Longer-Term Sales and Load Growth Remain Strong Wisconsin Segment Year-Over-Year 2027-2029 Electric 4.5%-5.0% Gas 0.7%-1.0% Sales Growth Forecast (weather-normalized) 2025-2029 adding 1,800 MWs (~20%) of electric demand
Slide 12: Capital Plan – Key Drivers
12 Capital Plan – Key Drivers 2025-2029 Capital Plan Identified $4.3 billion of additional investments compared to previous five-year plan: Regulated renewables – $2.1 billion increase Natural gas generation – $0.9 billion increase LNG capacity – $400 million increase Electric distribution –
Slide 13: Increasing Five-Year Capital Plan by $4.3 Billion
13 Increasing Five-Year Capital Plan by $4.3 Billion 2025-2029 Capital Plan $9.5 $13.2 $1.0 $1.4 $3.8 $4.5 $5.2 $5.3 $3.0 $3.2 $1.2 $0.4 $23.7 $28.0 2024-2028 2025-2029 WEC Infrastructure (WECI) Electric Transmission (ATC)* Gas Distribution** Electric Distribution WI LNG Capacity Electric Generation
Slide 14: Robust Growth in Asset Base
14 $29.4 billion $48.8 billion 2023A 2029E* Robust Growth in Asset Base *Estimated year-end average asset base. Expect compound annual EPS growth of 6.5% to 7.0% 8.8% Growth
Slide 15: Diverse Portfolio of Businesses
15 Diverse Portfolio of Businesses Based on average asset base. 62% 16% 5% 7% 10% WI IL MI/MN WECI ATC* By Jurisdiction By Business 48% 33% 2% 7% 10% Electric generation and distribution Natural gas distribution LNG (distribution and generation) WECI Electric transmission* *ATC is accounted for usin
Slide 16: Exiting Coal
16 We plan to eliminate coal as an energy source by end of 2032. Since 2018, we have retired nearly 2,500 MW of fossil fuel generation, including Oak Creek Units 5-6 (May 2024). Retirements planned: Oak Creek Units 7-8: 611 MW (late in 2025) Columbia Units 1-2: 300 MW (end of 2029) Explori
Slide 17: Investing $9.1 Billion in Regulated Renewables
17 Solar Total 2,900 MW $5.5 billion Battery Storage Total 565 MW $0.9 billion Wind Total 900 MW $2.7 billion Grand Total 4,365 MW $9.1 billion 2025-2029 Plan includes: Plan to build and own 4,300 MW – more than quadrupling our carbon-free generation. Investing $9.1 Billion in Regulated Renewables
Slide 18: Modernizing Our Gas-Fueled Generation Fleet
18 Modern, efficient natural gas generation serves as a critical resource in our energy transformation. Modernizing Our Gas-Fueled Generation Fleet 2025-2029 Capital Plan Weston RICE * Filed and pending regulatory approval. Combustion Turbines Filed: Oak Creek * 1,100 MW planned Expected investm
Slide 19: Investing in Reliability for Our Natural Gas Network
19 Investing in Reliability for Our Natural Gas Network New proposed LNG storage facilities are needed to ensure gas supply for winter reliability. Oak Creek LNG facility* 2 Bcf Expected investment: $456 million Plans underway for an additional 4 Bcf Expected investment: $940 million LNG p
Slide 20: Future Transmission Investment
20 $812 $908 $1,133 $1,250 $1,250 $487 $545 $680 $750 $750 2025 2026 2027 2028 2029 ATC WEC portion 60% Capital Drivers: Economic Growth Reliability / Asset Renewal LRTP Tranche 1 in 2024 dollars: ATC: $1.2 billion WEC portion: $700 million $580 million in this plan LRTP Tranche 2 plan
Slide 21: Projected Cash Flows and Financing Plan
21 Projected Cash Flows and Financing Plan ($ in billions) Cash from Operations $18.5 - $19.5 (60%) Common Equity $2.7 - $3.2 (9%) Dividends $6.8 - $7.0 Capital Plan $24.8 Cash Uses Cash Sources Incremental Debt 2 $9.5 - $10.0 (31%) 1. Excludes ATC’s capital. ATC is accounted for using the equity me
Slide 22: Credit Quality – Maintaining a Healthy Balance Sheet
22 Credit Quality – Maintaining a Healthy Balance Sheet Current Issuer Credit Ratings Entity S&P Rating Moody’s Rating WEC Energy Group A- Baa1 Wisconsin Electric A- A2 Wisconsin Gas A A3 Wisconsin Public Service A- A2 Peoples Gas A- A2 FFO/Debt Metrics 2025-2029 WEC Energy Group Target S&P FFO to D
Slide 23: Carbon Reduction Goals – Electric Generation
23 *Includes projection of potential carbon offsets by 2050. Carbon Reduction Goals – Electric Generation We have established aggressive carbon reduction goals for our electric generating fleet, aligned with or surpassing global emissions pathways aimed at limiting warming to 1.5°C. Reduction goals:
Slide 24: Methane Reduction
24 -100% -80% -60% -40% -20% 0% 2011 2023 2030 Achieved1 and anticipated methane emission reduction from natural gas distribution. Aligns with effort to limit warming to 1.5°C. -23% Goal: Net zero by end of 20302 Use of renewable natural gas (RNG) is expected to contribute to our goal.3 Methane Redu
Slide 25: Key Takeaways for WEC Energy Group
25 Consistent, industry leading earnings growth. Top-decile dividend growth. Capital plan supported by economic growth Drives premium long-term EPS growth of 6.5% to 7.0%. 98%+ of capital allocated to regulated businesses. Aggressive environmental goals in place. By end of 2030, we exp
Slide 26: Appendix
Appendix Wa wec VA Energy Group
Slide 27: Electric Distribution Electric Transmission 60% ownership Electric Generation Energy Infrastructure Natural Gas Distr…
27 Electric Distribution Electric Transmission 60% ownership Electric Generation Energy Infrastructure Natural Gas Distribution
Slide 28: Regulated Renewable Generation and Storage Projects – Solar
28 Solar Projects Docket Anticipated Approval WEC Capacity (MW) WEC Investment ($M) Ownership Anticipated In-Service Paris Solar Park 5-BS-254 Approved 180 319E WEPCO/ WPS 90%1 In-Service Darien Solar Park 5-BS-255 225 427E 2025 Koshkonong Solar Park 5-BS-258 270 621E 2026 High Noon Solar Park 5-BS-
Slide 29: Regulated Renewable Generation and Storage Projects – Battery and Wind
29 Battery Projects Docket Anticipated Approval WEC Capacity (MW) WEC Investment ($M) Ownership Anticipated In-Service Paris Battery Park 5-BS-254 Approved 99 223E WEPCO/WPS 90%1 2025 Darien Battery Park 5-BS-255 68 140E 2026 Koshkonong Battery Park 5-BS-258 149 309E 2027 High Noon Battery Park 5-BS
Slide 30: Commitment to ESG
30 Reduce carbon dioxide emissions from electric generation 60% by end of 2025 and 80% by end of 2030 – both from a 2005 baseline. Long- term goal of net-zero carbon emissions from our generating fleet by 2050 Planned exit from coal by end of 2032 Targeting net-zero methane emissions from natural ga
Slide 31: Electricity Supply by Fuel Type
31 Electricity Supply by Fuel Type (megawatt-hours delivered to regulated utility customers) 73% 32% 7% 37% 43% 17% 22% 21% 3% 9% 34% 2005 2023 2030E 2032 2050 Coal Natural Gas Nuclear Renewables Exiting Coal <2% Net carbon neutral goal Planned exit from coal
Slide 32: Investing in Innovation: Clean Energy Pilot Projects
32 Organic Flow Battery Storage Leading a pilot project to test a new ‘green battery’ – a form of long-duration energy storage that incorporates environmentally friendly materials. Partnering with EPRI and CMBlu Energy Project will test battery system performance, including the ability to stor
Slide 33: WEC Infrastructure Portfolio
33 In service Under development 1. Investment is part of the 2025-2029 capital plan. Total Project Capacity (MW) Investment (in millions) Wind ● Upstream 200 $307 ● Bishop Hill III 132 166 ● Coyote Ridge 97 145 ● Blooming Grove 250 389 ● Tatanka Ridge 155 240 ● Jayhawk 190 282 ● Thunderhead 300 381
Slide 34: WEC Infrastructure Project Ownership and Offtake Agreements
34 Project Ownership Percentage Offtake Agreement WEC Commercial Operations Bishop Hill III Wind Energy Center 90% ownership WPPI Energy – 22 years 8/31/18 Upstream Wind Energy Center 90% ownership Affiliate of Allianz – 10 years 1/10/19 Coyote Ridge Wind Farm 82% ownership and 99% of tax benefits G
Slide 35: Utility Capital Plan Drives EPS Growth
35 Utility Capital Plan Drives EPS Growth $27.6 Billion Projected Capital Spend From 2025-2029 2,550 2,610 2,854 2,611 2,560 243 299 529 345 940 943 840 877 925 998 1,118 1,179 963 1,085 487 545 680 750 750 $5,218 $5,515 $6,082 $5,546 $5,320 - 1,000 2,000 3,000 4,000 5,000 6,000 2025 2026 2027 2028
Slide 36: Capital Plan Projections
36 Company 2025 2026 2027 Wisconsin Electric $3,047.3 $3,281.2 $3,501.6 Wisconsin Gas 216.0 283.9 288.8 Wisconsin Public Service 801.8 806.4 1,063.5 Upper Michigan Energy 137.3 39.2 19.3 Wisconsin Segment $4,202.4 $4,410.7 $4,873.2 Peoples Gas 321.6 343.5 322.8 North Shore Gas 52.1 61.3 46.9 Illinoi
Slide 37: Composition of Asset Base
37 Composition of Asset Base Total 2023 Average Asset Base of $29.4 Billion Note: We Power value represents investment book value. Company Asset Base - $B % of Total Wisconsin Electric $8.2 27.9% Wisconsin Gas 2.1 7.1 Wisconsin Public Service 4.6 15.6 Upper Michigan Energy Resources 0.4 1.4 Peoples
Slide 38: Power the Future Investments
38 Power the Future Investments1 Port Washington (Natural Gas) Oak Creek Expansion (Coal/Co-Fire Gas3) Capacity 1,090 MW 1,030 MW 2 Investment $664 million $2 billion 2 ROE 12.7% 12.7% Equity 53% 55% In Service Dates Unit 1 – July 2005 Unit 2 – May 2008 Unit 1 – February 2010 Unit 2 – January 2011 L
Slide 39: National Leader in Operating Efficiency and Financial Discipline
39 National Leader in Operating Efficiency and Financial Discipline $29.47 $12.20 $17.50 $18.40 $18.50 $21.10 $22.00 $24.00 $25.40 $42.70 $92.90 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 2023 Non-Fuel O&M per MWh* Source: FERC Form 1 Reports *For all companies, excluded 1) pensions and other employee b
Slide 40: Focused on Efficiency
40 Focused on Efficiency $1,342 $1,281 $1,234 $1,143 $1,107 $1,088 $1,082 $1,088 2016 2017 2018 2019 2020 2021 2022 2023 2024E $ I n m ill io n s *Excludes costs that have a revenue offset such as operation and maintenance costs associated with the We Power generation units, transmission expenses th
Slide 41: Projected Financing Plans for 2025
41 Projected Financing Plans for 20251 $1,000 - $1,400 $2,300 - $2,700 $700 - $800 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 Holding Company Utilities & Energy Infrastructure Equity Issuances (i n m ill io n s ) Planned Financing Existing Facilities $2.2B net liquidity (as of December 31, 2024) $3.
Slide 42: Balanced and Diverse Sales Mix
42 33% Large C&I by Segment Paper/Packaging 24% Mining/Minerals 11% Foundry (SIC 33) 10% Other Manufacturing 8% Metal (SIC 34,35,37) 7% Food/Agriculture 6% Medical 6% Education 4% Printing 2% Chemical 2% Office 2% Other 17% Balanced and Diverse Sales Mix Large C&I 33% Residential and Farm 31% Small
Slide 43: Regulatory Matters
43 Estimated Decision Date Wisconsin (apps.psc.wi.gov) Commission decision on general rate review for new base rates effective Jan. 1, 2025 (Dockets: WEPCO and WG: 5-UR-111 and WPS: 6690-UR-128) Decision on Paris RICE generation (Docket: 6630-CE-316 filed 4/5/24) Q3 2025 Decision on Oak Cree
Slide 44: Illinois Proceedings
44 Illinois Proceedings Safety Modernization Program (SMP) Review The Illinois Commerce Commission (ICC) ordered Peoples Gas to pause all spending on the Safety Modernization Program until it determines ‘the optimal method’ of pipe replacement and investment level. ALJ proposed order consistent
Slide 45: Regulatory Environment
45 Regulatory Environment Wisconsin Governor Tony Evers (D) Term ends January 2027 Commission Gubernatorial appointment, Senate confirmation Chairman: Gubernatorial appointment 6-year staggered terms Illinois Governor J.B. Pritzker (D) Term ends January 2027 Commission Gubernator
Slide 46: Rate-Making Parameters by Company
46 Rate-Making Parameters by Company Utility Equity Layer1 Authorized ROE Wisconsin Electric 50.50%-55.50% 9.80% Wisconsin Public Service 50.50%-55.50% 9.80% Wisconsin Gas 50.50%-55.50% 9.80% Peoples Gas 50.79% 9.38% North Shore Gas 52.58% 9.38% Minnesota Energy Resources 53.00% 9.65% Michigan Gas U
Slide 47: Key Rate-Making Components
47 Key Rate-Making Components State Illinois Minnesota Michigan Wisconsin Utility Gas Gas Electric and Gas Gas Electric Gas Pipeline Replacement Rider MGU Bad Debt Rider ✓ Bad Debt Escrow Accounting Residential Residential Decoupling ✓ ✓ Fuel Cost Recovery 1 for 1 recovery of prudent fuel costs +/-
Slide 48: Reconciliation of EPS (GAAP) to Adjusted EPS (Non-GAAP)
48 Reconciliation of EPS (GAAP) to Adjusted EPS (Non-GAAP) 2014 2015 2016 2017 2023 2024 Guidance EPS – GAAP basis $2.59 $2.34 $ 2.96 $ 3.79 $4.22 $4.74 - $4.84 Acquisition Costs 0.06 0.39 0.01 – Integrys Earnings (0.47) Impact of Additional Shares 0.47 Tax Benefit Related to Tax Cuts and Jobs Act o
Slide 49: Contact Information
49 Contact Information M. Beth Straka Senior Vice President – Investor Relations and Corporate Communications Beth.Straka@wecenergygroup.com 414-221-4639 Ashley Pless Investor Relations Analyst Ashley.Pless@wecenergygroup.com 414-221-4088
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