WEC ENERGY GROUP, INC. (WEC) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that WEC ENERGY GROUP, INC. surfaced in its latest filing.

• The ICC's 2023 final rate order disallowed certain previously incurred capital costs, causing PGL and NSG to record impairment losses in Q4 2023 and pausing PGL's PRP spending.2023
• In February 2025, the ICC directed PGL to replace all cast and ductile iron pipe under 36 inches by January 1, 2035, with non-compliance subject to civil penalties.February 2025
• The QIP rider, which provided PGL cost recovery and return on qualifying infrastructure investments, expired in December 2023 but remains subject to annual reconciliation for accuracy and prudency.December 2023
• In February 2026, PGL agreed to a proposed settlement resolving all open QIP rider reconciliation years, leading to a Q4 2025 impairment charge, pending ICC approval.February 2026
• Certain Wisconsin service territories were classified as 'serious' nonattainment under the EPA ozone standard in December 2024, affecting future permit activities and costs.December 2024
• Wisconsin filed a petition for review in the U.S. Court of Appeals for the Seventh Circuit in February 2025, with a stay granted in September 2025 returning status to 'moderate' pending review.February 2025
• The President issued executive orders at the end of 2025 directing the DOE to keep certain coal plants running for grid reliability, potentially impacting planned retirements and capital plan.2025
• In July 2025, the OBBBA was signed into law, modifying clean-energy tax credits under the IRA.July 2025
• WE filed an application with the PSCW in March 2025 for a VLC Tariff and a Bespoke Resources Tariff.March 2025
• The mandatory reliability and critical infrastructure protection standards are established by the North American Electric Reliability Corporation and enforced by the FERC.
• Provisions of the Wisconsin Utility Holding Company Act limit our ability to invest in non-utility businesses.
• Michigan law limits customer choice to 10% of our Michigan retail load, with the Upper Peninsula iron ore mine excluded.
• MISO implemented bid-based energy markets and an ancillary services market that schedules energy and operating reserves simultaneously, potentially increasing costs related to transmission, generation dispatching, participation, and payment settlements.