Wec Energy Group, Inc. · NYSE:WEC

Wec Energy — Investor Presentation (November 2024)

51 slides from Wec Energy's investor presentation, Nov 8, 2024

1. Slide 1: Energizing the Future: Investor Update November 2024

   1 Energizing the Future Investor Update: November 2024

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 Oct. 31, 2024 $30.2 billion market cap* 4.7 million retail customers 60% ownership of American Transmission Company $45.2 billion of assets

4. 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 * 2024 Guidance (GAAP) is $4.74 – $4.84. 2024 Adjusted Guidance is $4.80 – $4.90. __CAGR is estimated based on 2024 adjusted guidance mi

5. Slide 5: EPS Guidance Exceeded: 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

6. Slide 6: Strong Dividend Growth Continues

   6  In January, raised the dividend by 7.0% to a new annual rate of $3.34 per share*  21st 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

7. Slide 7: What's New?

   7 What’s New?

8. Slide 8: Wisconsin Rate Review Outcome

   8 Wisconsin Rate Review Outcome  Authorized return on equity maintained at 9.80 percent  Equity ratio maintained at 53.0 percent  Updated earnings sharing mechanism at Wisconsin Electric:  Final written order expected before year-end WE WG and WPS Treatment 9.80% - 9.95% 9.80% - 9.95% No sharing

9. Slide 9: Wisconsin Rate Review Outcome by utility

   9 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 % 4.1%2 7.0% 4.3% 3.7%2 3.7% 2025 Rate Increase $ (in millions)

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: Longer-Term Sales and Load Growth Remain Strong

    12 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

13. Slide 13: Capital Plan – Key Drivers Identified

    13 Capital Plan – Key Drivers 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 – $700 million increase

14. Slide 14: 2025-2029 Capital Plan Increasing by $4.3 Billion

    14 $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 Transmision (ATC)* Gas Distribution** Electric Distribution WI LNG Capacity Electric Generation N e w p la n F o rm e r p la n $ In billions *ATC is accounted for using

15. Slide 15: Robust Growth in Asset Base

    15 $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

16. Slide 16: Diverse Portfolio of Businesses

    16 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

17. Slide 17: Exiting Coal

    17 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  Weston Unit 3: 328 MW

18. Slide 18: Investing $9.1 Billion in Regulated Renewables

    18 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

19. Slide 19: Modernizing Our Gas-Fueled Generation Fleet

    19 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

20. Slide 20: Investing in Reliability for Our Natural Gas Network

    20 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

21. Slide 21: Future Transmission Investment

    21 $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

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 GAAP FFO to

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 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

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 exp

27. Slide 27: Appendix

    Appendix Wa wec VA Energy Group

28. Slide 28: Electric Distribution Electric Transmission 60% ownership Electric Generation Energy Infrastructure Natural Gas Distr…

    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 2024 Darien Solar Park 5-BS-255 225 427E 2025 Koshkonong Solar Park 5-BS-258 270 621E 2026 High Noon Solar Park 5-BS-276 Q4

30. Slide 30: Battery and Wind Projects

    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 ESG

    31 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

32. Slide 32: Electricity Supply by Fuel Type

    32 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

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 Under development 1. Investment is part of the 2025-2029 capital plan. WEC Infrastructure Portfolio 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 1

35. Slide 35: Infrastructure Projects and Offtake Agreements

    35 Project Investment Offtake Agreement WEC Commercial Operations Bishop Hill III Wind Energy Center $166M for 90% ownership WPPI Energy – 22 years 8/31/18 Upstream Wind Energy Center $307M for 90% ownership Affiliate of Allianz – 10 years 1/10/19 Coyote Ridge Wind Farm $145M for 80% ownership and 9

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 1,334 2,550 2,610 2,854 2,611 2,560 32 243 299 529 345 - 877 940 943 840 877 925 984 998 1,118 1,179 963 1,085 410 487 545 680 750 750 $3,637 $5,218 $5,515 $6,082 $5,546 $5,320 - 1,000 2,000 3,000 4,000 5,

37. Slide 37: Capital Plan Projections

    37 Company 2024 2025 2026 Wisconsin Electric $1,792.7 $3,047.3 $3,281.2 Wisconsin Gas 216.3 216.0 283.9 Wisconsin Public Service 562.5 801.8 806.4 Upper Michigan Energy 121.1 137.3 39.2 Wisconsin Segment $2,692.6 $4,202.4 $4,410.7 Peoples Gas 314.2 321.6 343.5 North Shore Gas 39.2 52.1 61.3 Illinois

38. Slide 38: Composition of Asset Base

    38 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

39. Slide 39: Power the Future Investments

    39 Power the Future Investments 1 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

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: Focused on Efficiency

    41 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

42. Slide 42: External Financing Plans for 2024

    42 External Financing Plans for 2024 1 $800 - $900 $100-$200 $0 $500 $1,000 $1,500 $2,000 $2,500 Holding Company Utilities & Energy Infrastructure Equity Issuances (i n m ill io n s ) YTD Financing Planned Financing $1,725 2 1. Amounts and timing are subject to material change based upon numerous fa

43. Slide 43: Projected Financing Plans for 2025

    43 Projected Financing Plans for 2025 1 $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 $3.0B net liquidity (as of September 30, 2024) $

44. Slide 44: Balanced and Diverse Sales Mix

    44 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

45. Slide 45: Regulatory Matters

    45 Estimated Decision Date Wisconsin (apps.psc.wi.gov)  Commission decision on general rate review for new base rates effective Jan. 1, 2025 (Dockets: WE 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 Creek C

46. Slide 46: Illinois Proceedings

    46 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.  ICC order expected in the fi

47. Slide 47: Regulatory Environment

    47 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

48. Slide 48: Rate-Making Parameters by Company

    48 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

49. Slide 49: Key Rate-Making Components

    49 Key Rate-Making Components Area Illinois– Gas Minnesota– Gas Michigan– Electric and Gas Wisconsin– Gas Wisconsin– 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 cost

50. Slide 50: Reconciliation of EPS (GAAP) to Adjusted EPS (Non-GAAP)

    50 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

51. Slide 51: Contact Information

    51 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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