Wec Energy Group, Inc. · NYSE:WEC

Wec Energy — Investor Presentation (March 2025)

50 slides from Wec Energy's investor presentation, Mar 3, 2025

  1. Slide 1: Energizing the Future: Investor Update March 2025

    1 Energizing the Future Investor Update: March 2025

  2. 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

  3. Slide 3: The Premier Energy Company in America's Heartland

    3 The Premier Energy Company in America’s Heartland * As of Jan. 31, 2025 $31.4 billion market cap* 4.7 million retail customers 60% ownership of American Transmission Company $47.4 billion of assets Ranked first overall in the 2024 E Source Large Business Customer Satisfaction Study

  4. Slide 4: History of Consistent, Strong Earnings and Dividend Growth

    4 $1 $2 $3 $4 $5 $6 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25E * Estimated based on 2025 guidance midpoint of $5.22 per share. ** See Appendix for reconciliation of adjusted amounts to GAAP amounts. $5.17-$5.27 $3.57** $1 $2 $3 $4 '15* '16 '17 '18 '19 '20 '21 '22 '23 '24 '25E * Annualized based on

  5. Slide 5: Consistent and Robust Long Term EPS Growth Outlook

    5 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 2015 2020 2025E 2026 2027 2028 2029 Consistent and Robust Long Term EPS Growth Outlook GAAP 2015 Adjusted (3) 2025 Guidance (1) Growth rate off 2015 base of $2.73 adjusted EPS and 2025 guidance midpoint of $5.22 per share. (2) Based on 2025 guidance

  6. Slide 6: Consistent Performance Over Time

    6 21 consecutive years of exceeding or meeting top end of earnings guidance* Consistent Performance Over Time * On an adjusted basis

  7. Slide 7: Strong Dividend Growth Continues

    7  In January, dividend was raised 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 Dividend Growth Continues * Annuali

  8. Slide 8: What's New?

    8 What’s New?

  9. Slide 9: Safety Modernization Program (SMP) Review Order

    9  In February 2025, the ICC lifted the SMP pause and directed Peoples Gas to focus on replacing all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035.  The final order does not specifically support one of the three program options presented by Peoples Gas.  The IC

  10. Slide 10: Powering Industry Leaders in Our Region

    10 Powering Industry Leaders in Our Region

  11. Slide 11: 1,800 MW of Additional Demand through 2029

    11 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

  12. Slide 12: Incremental Data Center Demand

    12 Incremental Data Center Demand* Strong Regional Growth *Not currently included in 2025-2029 capital plan Milwaukee Cloverleaf site Cloverleaf Infrastructure announced plans to develop a large data center campus in Port Washington:  Initial announcement referenced 1 GW of load  Approximately 1,7

  13. Slide 13: Longer-Term Sales and Load Growth Remain Strong

    13 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 expecting to add 1,800 MWs (~20%) of electric demand *Does not include incremental sales or load growth from Cloverleaf

  14. Slide 14: Largest Five-Year Plan in Company History

    14 Largest Five-Year Plan in Company History 2025-2029 Capital Plan $13.2 $1.4 $4.5 $5.3 $3.2 $0.4 $28.0 2025-2029 WEC Infrastructure (WECI) Electric Transmission (ATC)* Gas Distribution** Electric Distribution WI LNG Capacity Electric Generation $ In billions *ATC is accounted for using the equity

  15. Slide 15: Diverse Portfolio of Businesses

    15 Diverse Portfolio of Businesses Based on average asset base. 63% 16% 4% 7% 10% WI IL MI/MN WECI ATC* By Jurisdiction By Business 49% 32% 2% 7% 10% Electric generation and distribution Natural gas distribution LNG (distribution and generation) WECI Electric transmission* *ATC is accounted for usin

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. Slide 21: ATC Future Transmission Investment: Long-Range Transmission Planning Tranche 2.1

    21 Long-Range Transmission Planning Tranche 2.1  $2.0 billion – Estimate for projects ATC expects to be directly assigned  $1.8 billion – Estimate for projects in/connected to ATC’s footprint open to competition.  If right of first refusal is enacted in Wisconsin, ATC expects its share would be $

  22. Slide 22: Projected Cash Flows and Financing Plan

    22 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

  23. Slide 23: Credit Quality – Maintaining a Healthy Balance Sheet

    23 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

  24. Slide 24: Carbon Reduction Goals – Electric Generation

    24 *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:

  25. Slide 25: Methane Reduction

    25 -100% -80% -60% -40% -20% 0% 2011 2024 2030 Achieved1 and anticipated methane emission reduction from natural gas distribution. Aligns with effort to limit warming to 1.5°C. -23%4 Goal: Net zero by end of 20302 Use of renewable natural gas (RNG) is expected to contribute to our goal.3 Methane Red

  26. Slide 26: Key Takeaways for WEC Energy Group

    26  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 ex

  27. Slide 27: Appendix

    Appendix Wa wec VA Energy Group

  28. Slide 28: WEC Energy Group business overview

    28 Electric Distribution Electric Transmission 60% ownership Electric Generation Energy Infrastructure Natural Gas Distribution

  29. Slide 29: Regulated Renewable Generation and Storage Projects: Solar

    29 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-

  30. Slide 30: Regulated Renewable Generation and Storage Projects: Battery and Wind

    30 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

  31. Slide 31: Commitment to Stewardship and Governance

    31 Responsible Governance Appointed six new independent directors since 2020 — increasing depth of utility experience of our board of directors $20+ million Contributed by our companies and foundations to nonprofit organizations in 2024 $332.4 million Spent with certified minority-, women-, service

  32. Slide 32: Electricity Supply by Fuel Type

    32 Electricity Supply by Fuel Type (megawatt-hours delivered to regulated utility customers) 73% 31% 7% 40% 43% 17% 21% 21% 3% 8% 34% 2005 2024 2030E 2032 2050 Coal Natural Gas Nuclear Renewables Exiting Coal <2% Net carbon neutral goal Planned exit from coal

  33. Slide 33: Investing in Innovation: Clean Energy Pilot Projects

    33 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

  34. Slide 34: WEC Infrastructure Portfolio

    34 In service 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 ● Sapphire Sky 250

  35. Slide 35: WEC Infrastructure project ownership and offtake agreements

    35 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

  36. Slide 36: Utility Capital Plan Drives EPS Growth

    36 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

  37. Slide 37: Capital Plan Projections

    37 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

  38. Slide 38: Composition of Asset Base

    38 Composition of Asset Base Total 2024 Average Asset Base of $30.8 Billion Note: We Power value represents investment book value. Company Asset Base - $B % of Total Wisconsin Electric $9.0 29.2% Wisconsin Gas 2.2 7.1 Wisconsin Public Service 4.8 15.6 Upper Michigan Energy Resources 0.4 1.3 Peoples

  39. Slide 39: Power the Future Investments

    39 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

  40. Slide 40: National Leader in Operating Efficiency and Financial Discipline

    40 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

  41. 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 January 31, 2025) $3.1

  42. Slide 42: Balanced and Diverse Sales Mix

    42 33% Large C&I by Segment Paper/Packaging 25% Mining/Minerals 11% Foundry (SIC 33) 9% Other Manufacturing 8% Metal (SIC 34,35,37) 7% Medical 7% Food/Agriculture 6% Education 4% Chemical 3% Printing 3% Office 2% Other 15% Balanced and Diverse Sales Mix Large C&I 33% Residential and Farm 31% Small C

  43. 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

  44. Slide 44: Wisconsin Rate Review Outcome

    44 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

  45. Slide 45: Illinois Proceedings

    45 Illinois Proceedings Future of Gas Investigation  ICC opened a docket to examine the Future of Gas across the state of Illinois.  Second series of workshops ongoing and completion date extended to the first quarter of 2026. 2023 Rate Order  Peoples Gas booked a non-cash charge of 41 cents per

  46. Slide 46: Regulatory Environment

    46 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

  47. Slide 47: Rate-Making Parameters by Company

    47 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

  48. Slide 48: Key Rate-Making Components

    48 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 +/-

  49. Slide 49: Reconciliation of EPS (GAAP) to Adjusted EPS (Non-GAAP)

    49 Reconciliation of EPS (GAAP) to Adjusted EPS (Non-GAAP) 2015 2016 2017 2023 2024 EPS – GAAP basis $2.34 $ 2.96 $ 3.79 $4.22 $4.83 Acquisition Costs 0.39 0.01 – Integrys Earnings (0.47) Impact of Additional Shares 0.47 Tax Benefit Related to Tax Cuts and Jobs Act of 2017 (0.65) Illinois Disallowan

  50. Slide 50: Contact Information

    50 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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