WEC ENERGY GROUP, INC. WEC

WEC Energy Group is experiencing significant economic growth in its service territory, particularly along the I-94 corridor between Milwaukee and Chicago. Eli Lilly announced a $3 billion expansion, adding 750 highly skilled jobs. Microsoft is progressing on its large data center complex, investing $3.3 billion by the end of 2026, and recently purchased an additional 240 acres. Cloverleaf announced plans for a 1,700-acre data center campus in Port Washington, projecting a 1 gigawatt load, which is incremental to current plans.

The company's updated $28 billion 5-year capital plan is its largest ever, driven by the need to serve the growing economy. This includes $9.1 billion for 4,300 megawatts of renewable energy over the next 5 years, with Paris Solar Park (180 MW, $319M investment) brought online in 2024 and Darian Solar Park (225 MW) expected in 2025. Natural gas generation is also critical, with 1,200 MW of efficient natural gas generation, a 33-mile lateral, and 2 Bcf of LNG storage awaiting Wisconsin Commission rulings.

The WEC Infrastructure business completed investments in Delilah I and Maple Flats Solar projects (550 MW, $890M for 90% ownership) and expects to close on the Harden 3 project (250 MW, $407M for 90% ownership) in Q1. This fulfills their 5-year planned investment in WEC Infrastructure. MISO's Tranche 2.1 capital investments are expected to assign ATC (60% owned by WEC) approximately $2 billion, with an additional opportunity of up to $1.5 billion to $1.8 billion through ROFR or competitive bid.

WEC currently has no planned or active rate cases. The Wisconsin Commission maintained a 53% financial equity layer and a 9.8% return on equity for Wisconsin utilities for test years 2025 and 2026. In Illinois, two proceedings are ongoing: one evaluating the future of natural gas (extending into 2026) and a review of the Safety Modernization Program, with a decision expected this quarter.

WEC reported 2024 adjusted earnings of $4.88 per share, overcoming a $0.25 per share weather headwind^🌐 through O&M and financing initiatives. Utility operations grew $0.06 year-over-year, ATC earnings increased $0.07 (including $0.05 from a FERC ROE order), and Energy Infrastructure grew $0.13. The company reaffirmed its 2025 adjusted EPS guidance of $5.17 to $5.27 per share and a long-term EPS CAGR of 6.5% to 7%.

In 2024, WEC executed over $4.5 billion in external funding, including nearly $200 million in common equity. For 2025, they expect to issue $700 million to $800 million of common equity via ATM and other plans, with total common equity financing of $2.7 billion to $3.2 billion over the next 5 years. The Board increased the dividend by 6.9% to an annualized $3.57 per share, consistent with its 65% to 70% payout policy and marking 22 consecutive years of increases.