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WEC · Wec Energy Group

37 filings

10-K

WEC 10-K Annual Reports

Wec Energy Group - 37 annual reports

Filing record · 2016–202610-K1110-Q338-K260

2025
Wec Energy Group Annual Report, Year Ended Dec 31, 2025
WEC Energy Group, Inc. reported 2025 net income attributed to common shareholders of $1,557.5 million, up from $1,527.2 million in 2024, with diluted EPS of $4.81 versus $4.83. The increase was driven primarily by the Wisconsin segment, which contributed $1,054.8 million (up $191.7 million) on higher margins from the Wisconsin rate orders effective January 1, 2025, higher retail sales volumes and certain income tax benefits. These gains were offset largely by a $130.0 million decline in the Illinois segment, which reflects a $205.0 million pre-tax charge tied to a proposed settlement with the Illinois Attorney General resolving open UEA and QIP rider proceedings, and by a $74.6 million increase in the corporate and other segment net loss driven by higher interest expense. Capital spending rose sharply to $4,398.1 million in 2025 from $2,781.1 million in 2024. The company plans total capital expenditures for its regulated utilities of approximately $33.4 billion from 2026 to 2030, plus about $4.1 billion for its share of ATC's projected capex, and has identified large data center load growth in its Wisconsin service territory, including VLC and Bespoke Resources tariffs pending before the PSCW. Total debt was $21,942.2 million at year-end, a debt-to-total-capitalization ratio of 61.7%, and the Board raised the quarterly dividend 6.7% to $0.9525 per share in January 2026. Key risks highlighted include the pending ICC approval of the PGL and NSG settlement, the outcome of the VLC tariff proceeding, ongoing QIP reconciliations for 2017 through 2023 with approximately $3.0 billion of aggregate capital costs under review, regulatory and environmental changes, and tax credit transferability under the OBBBA. Operating cash flow was $3,379.4 million, and investing outflows of $4,874.7 million were funded largely by net financing inflows of $1,524.0 million.
Feb 20, 2026
2024
Wec Energy Group Annual Report, Year Ended Dec 31, 2024
WEC Energy Group, Inc. reported 2024 net income attributed to common shareholders of $1,527.2 million, or $4.83 diluted earnings per share, up from $1,331.7 million, or $4.22 per share, in 2023. The increase was driven mainly by the Illinois segment, where a $178.9 million impairment recorded in 2023 related to ICC disallowances did not recur, along with higher margins from the PGL and NSG rate orders, and by the non-utility energy infrastructure and electric transmission segments. The Wisconsin segment contributed $863.1 million, up $11.8 million, reflecting limited rate case re-openers effective January 1, 2024. WEC's capital plan calls for approximately $28.0 billion of capital expenditures, including about $24.4 billion for regulated utilities from 2025 to 2029 and approximately $9.1 billion of regulated renewable investment in Wisconsin over that period. Capital expenditures were $2,781.1 million in 2024, and the company expects to spend approximately $4.5 billion on reliability projects from 2025 to 2029. Total debt was $20,023.7 million at year-end, with a debt-to-total-capitalization ratio of 61.7% on an actual basis. The company completed several renewable acquisitions in 2024, including Delilah I and Maple Flats, and acquired Hardin III in February 2025 for approximately $405.9 million. Regulatory and legal developments remain significant. The ICC's February 20, 2025 order directs PGL to replace cast and ductile iron pipe under 36 inches in diameter by January 1, 2035, and PGL is evaluating its impact on operations and capital plans. PGL and NSG have appealed the ICC's disallowances of capital costs. The PSCW approved 2025 and 2026 base rate increases for WE, WPS, and WG effective January 1, 2025 and 2026. The company also raised its quarterly dividend to $0.8925 per share in January 2025, an annual rate of $3.57 per share, and continues to target a 65-70% payout ratio.
Feb 21, 2025
2023
Wec Energy Group Annual Report, Year Ended Dec 31, 2023
WEC Energy Group, Inc. reported 2023 net income attributed to common shareholders of $1,331.7 million, down from $1,408.1 million in 2022, and diluted earnings per share of $4.22 versus $4.45. The decline was driven mainly by an $86.9 million decrease in Illinois segment earnings, largely due to an $178.9 million impairment tied to the ICC's November 2023 disallowance of previously incurred capital costs at PGL and NSG, and a $92.0 million increase in the corporate and other segment's net loss driven by higher interest expense. The Wisconsin segment offset part of this with a $92.9 million increase in net income to $851.3 million, reflecting the PSCW's 2023 rate orders, which took effect January 1, 2023. The company's capital plan is substantial. WEC expects to invest $23.7 billion under its ESG Progress Plan, including approximately $19.5 billion in regulated utility capital expenditures from 2024 to 2028, and forecasts 2024 total capital expenditures and acquisitions of $4.13 billion. The plan includes retiring roughly 1,800 MWs of additional fossil-fueled generation by 2031 and building renewable and natural gas-fired capacity. Operating cash flow rose to $3,018.4 million from $2,060.7 million, while financing activities provided $522.8 million, and total debt reached $18,797.9 million. Current liabilities exceeded current assets by $2,319.1 million. The board increased the quarterly dividend to $0.835 per share in January 2024, an annual rate of $3.34, and continues to target a 65-70% payout ratio. The filing also notes ongoing regulatory uncertainty in Illinois, including the pause on SMP spending pending a proceeding expected to last twelve months, and the ICC's limited-scope rehearing whose decision is expected in the second quarter of 2024.
Feb 22, 2024
2022
Wec Energy Group Annual Report, Year Ended Dec 31, 2022
WEC Energy Group, Inc. reported 2022 net income attributed to common shareholders of $1,408.1 million, up $107.8 million from $1,300.3 million in 2021, and diluted earnings per share of $4.45 versus $4.11. The increase was driven mainly by the Wisconsin segment (up $51.9 million, to $758.4 million), the non-utility energy infrastructure segment (up $45.2 million, to $324.4 million, largely from higher production tax credits), and the electric transmission segment (up $23.2 million, to $129.5 million, reflecting a D.C. Circuit Court of Appeals ROE opinion). These gains were partly offset by a $20.3 million larger loss at the corporate and other segment. Total operating revenues rose to $9,597.4 million from $8,316.0 million, while total capital expenditures were $2,314.9 million. The company expects capital expenditures of approximately $18.1 billion for its regulated utility and non-utility energy infrastructure businesses from 2023 to 2027, plus about $2.0 billion for its share of ATC's projected capital spending, which together make up the $20.1 billion ESG Progress Plan. The plan centers on retiring about 1,600 MW of additional fossil-fueled generation by the end of 2026 and reducing electric generation carbon emissions 60% by the end of 2025 and 80% by the end of 2030, both from a 2005 baseline. At year-end 2022, current liabilities exceeded current assets by $1,423.3 million, and total debt was $17,294.5 million, or 60.3% of total capitalization. The company reported $1,454.2 million of available revolving credit capacity. In January 2023, the Board increased the quarterly dividend to $0.78 per share, an annual rate of $3.12, and affirmed a target payout ratio of 65-70% of earnings. Wisconsin base rate orders effective January 1, 2023 include a 9.8% authorized ROE for WE, WPS and WG.
Feb 23, 2023
2021
Wec Energy Group Annual Report, Year Ended Dec 31, 2021
WEC Energy Group, Inc. reported 2021 net income attributed to common shareholders of $1,300.3 million, up from $1,199.9 million in 2020, with diluted earnings per share of $4.11 versus $3.79. The increase was driven mainly by the corporate and other segment (a $55.9 million smaller net loss, reflecting lower interest expense), the non-utility energy infrastructure segment (up $18.4 million on higher production tax credits from new wind parks), the Illinois segment (up $19.5 million on the SMP investment under the QIP rider), and the Wisconsin segment (up $16.1 million on higher retail sales volumes and rate increases). Operating revenues rose to $8,316.0 million from $7,241.7 million, largely reflecting higher natural gas costs passed through to customers after the February 2021 cold weather event. The company's capital plan is centered on its ESG Progress Plan, which calls for capital expenditures of approximately $16.4 billion for its regulated utility and non-utility energy infrastructure businesses from 2022 to 2026, plus a $1.3 billion share of ATC's projected capital expenditures. The plan includes retiring about 1,600 MW of additional fossil-fueled generation by 2025 and reducing electric generation carbon emissions 60% by 2025 and 80% by 2030 from a 2005 baseline. Total debt rose to $15,590.1 million, and the ratio of debt to total capitalization was 58.8%. The Board increased the quarterly dividend to $0.7275 per share in January 2022, equal to $2.91 annually, and reaffirmed a 65-70% payout ratio target. The filing also flags material risks, including rate case outcomes, environmental and greenhouse gas regulation, supply chain disruptions and inflation, the expiration of the QIP rider after 2023, credit rating and capital market access, and the ATC return-on-equity complaints, for which the company maintains a $39.1 million liability for potential refunds.
Feb 24, 2022
2020
Wec Energy Group Annual Report, Year Ended Dec 31, 2020
WEC Energy Group, Inc. reported 2020 net income attributed to common shareholders of $1,199.9 million, or $3.79 per diluted share, up from $1,134.0 million ($3.58 per diluted share) in 2019. The increase was driven mainly by the Wisconsin segment (up $40.5 million), the Illinois segment (up $33.2 million), and the electric transmission segment (up $25.2 million, reflecting FERC ROE orders affecting ATC), partly offset by a $43.6 million larger net loss at corporate and other, which included make-whole premiums on early debt redemptions. Operating revenues were $7,241.7 million, down from $7,523.1 million, with lower retail sales volumes attributed to the COVID-19 pandemic and warmer winter weather. The company's ESG Progress Plan for 2021-2025 targets approximately $15.0 billion of capital expenditures for its regulated utility and non-utility energy infrastructure businesses, plus an expected $1.1 billion share of ATC's capital expenditures. The plan includes retiring about 1,800 MW of additional fossil-fueled generation by 2025 and adding solar, battery storage, wind, and natural gas capacity. Total long-term debt including current portion was $12,513.9 million at year-end, and the debt-to-total-capitalization ratio was 57.6% on an actual basis. Management affirmed a dividend payout target of 65-70% of earnings, and the quarterly dividend was raised to $0.6775 per share in January 2021. Key risks highlighted include the ongoing COVID-19 pandemic, environmental and greenhouse gas regulation, rate-case and regulatory outcomes, and the uncertain resolution of ATC ROE refund petitions, for which the company carries a $39.1 million liability. The auditor, Deloitte & Touche LLP, issued unqualified opinions on the financial statements and internal control over financial reporting.
Feb 25, 2021
2019
Wec Energy Group Annual Report, Year Ended Dec 31, 2019
WEC Energy Group, Inc. reported operating revenues of $7,523.1 million and net income attributed to common shareholders of $1,134.0 million for 2019, compared with $7,679.5 million and $1,059.3 million in 2018. Diluted earnings per share rose to $3.58 from $3.34. The increase in earnings was driven primarily by a $389.4 million rise in Wisconsin segment operating income, which benefited from lower operation and maintenance expense tied to power plant retirements and the adoption of new lease guidance, along with a $36.1 million increase in Illinois segment operating income and a $31.9 million increase in other income, net. These gains were partly offset by a $56.4 million increase in interest expense, driven mainly by higher long-term debt balances used to fund capital investments. The company's capital program remains large. Total capital expenditures were $2,260.8 million in 2019, and management expects regulated utility and non-utility energy infrastructure capital expenditures of approximately $13.7 billion from 2020 to 2024. Long-term debt, including the current portion, rose to $11,904.2 million at year-end 2019 from $10,359.0 million, and total debt to total capitalization was 55.7%. Operating cash flow declined slightly to $2,345.5 million from $2,445.5 million, while investing outflows increased to $2,494.9 million, including the acquisition of an 80% interest in Upstream for $268.2 million. The filing also highlights ongoing generation reshaping, with more than 1,800 MW of coal-fired generation retired since the beginning of 2018, and continued expansion of wind and solar investments. Management reports that the company met its 2030 CO2 reduction goal of 40% below 2005 levels and is re-evaluating longer-term goals. The Tax Cuts and Jobs Act continues to affect rates, with Wisconsin rate orders issued in December 2019 for 2020 and 2021. The quarterly dividend was raised to $0.6325 per share in January 2020, an annualized $2.53, and the dividend policy targets a 65-70% payout ratio.
Feb 27, 2020
2018
Wec Energy Group Annual Report, Year Ended Dec 31, 2018
WEC Energy Group, Inc. reported 2018 operating revenues of $7,679.5 million and net income attributed to common shareholders of $1,059.3 million, compared with $1,203.7 million in 2017. Diluted EPS was $3.34 versus $3.79 in 2017. The earnings decline was driven largely by the Tax Cuts and Jobs Act: 2017 included a $206.7 million one-time net reduction in income tax expense from revaluing deferred taxes, and the 2018 flow-through of tax repairs and Tax Legislation impacts reduced earnings. Absent the Tax Legislation effect, the company states earnings increased $78.8 million, driven by higher Wisconsin margins from favorable weather and growth, and higher other states and transmission earnings. The company is executing a generation reshaping plan targeting retirement of approximately 1,800 MW of coal-fired generation by 2020, with 1,500 MW retired in 2018, and reducing CO2 emissions by approximately 40% below 2005 levels by 2030 and 80% by 2050. It projects regulated utility and non-utility energy infrastructure capital expenditures of almost $12.7 billion from 2019 to 2023. Operating cash flow rose to $2,445.5 million in 2018 from $2,078.6 million, while total debt reached $11,799.1 million, a debt-to-total-capitalization ratio of 54.6%. The company also acquired several wind and storage assets, including Bishop Hill III, Forward Wind Energy Center, Coyote Ridge, and Upstream (acquired January 2019 for $276.0 million). The company declared a quarterly dividend of $0.59 per share in January 2019, equal to $2.36 annually, and affirmed a dividend payout target of 65-70% of earnings. Moody's downgraded several WEC senior unsecured ratings to Baa1 in July 2018, citing reduced cash flow from the Tax Legislation.
Feb 26, 2019
2017
Wec Energy Group Annual Report, Year Ended Dec 31, 2017
WEC Energy Group, Inc. (WEC) reported 2017 operating revenues of $7,648.5 million and net income attributed to common shareholders of $1,203.7 million, or $3.79 diluted earnings per share, up from $939.0 million, or $2.96 per diluted share, in 2016. The increase was driven in large part by a $206.7 million one-time net reduction in income tax expense from revaluing deferred taxes under the Tax Cuts and Jobs Act of 2017, and by higher operating income at the Wisconsin, Illinois, and non-utility energy infrastructure segments. The company's effective tax rate fell to 24.1% in 2017 from 37.6% in 2016. Total assets rose to $31,590.5 million, and long-term debt excluding the current portion declined to $8,746.6 million. The company is pursuing a generation reshaping plan that calls for retiring approximately 1,800 MW of coal generation by 2020 and reducing CO2 emissions by approximately 40% below 2005 levels by 2030. Management expects total capital expenditures for its regulated utility and non-utility energy infrastructure businesses to be almost $12 billion from 2018 to 2022. Its 2018 estimated capital expenditures total $2,465.0 million. The Board increased the quarterly dividend to $0.5525 per share, or $2.21 annually, and targets a dividend payout ratio of 65.0–70.0% of earnings. Key risks flagged in the filing include the uncertain effects of the Tax Legislation on credit ratings and regulatory treatment, Moody's July 2017 downgrades of several subsidiaries' senior unsecured ratings to A2 from A1, ongoing regulatory outcomes for the ATC return-on-equity complaints, and environmental regulation of greenhouse gases, including the Clean Power Plan, which faces uncertainty after federal policy changes.
Feb 28, 2018
2016
Wec Energy Group Annual Report, Year Ended Dec 31, 2016
WEC Energy Group, Inc. reported 2016 operating revenues of $7,472.3 million and net income attributed to common shareholders of $939.0 million, up from $638.5 million in 2015. Diluted EPS was $2.96 versus $2.34 in 2015. The company attributed the earnings increase primarily to a full year of Integrys results (versus six months in 2015), which contributed $201.7 million of the increase, and to a $104.1 million pre-tax decrease in acquisition costs. Integrys was acquired on June 29, 2015, and the company operates six reportable segments spanning Wisconsin, Illinois, other states natural gas utilities, electric transmission (an approximately 60% interest in ATC), We Power, and corporate and other. Capital spending remains heavy: total capital expenditures were $1,423.7 million in 2016, and the company expects $2,182.2 million in 2017 and $1,956.8 million in 2018. Long-term debt was $9,158.2 million at year-end, and the ratio of debt to total capitalization was 53.2%. Operating cash flow rose to $2,103.5 million from $1,293.6 million. On January 19, 2017, the board raised the quarterly dividend to $0.52 per share, an annual rate of $2.08, and affirmed a payout target of 65-70% of earnings. Key risks flagged in the filing include uncertainty around federal climate rules such as the Clean Power Plan, potential federal tax reform that could eliminate the interest expense deduction, a pending FERC ROE complaint process that will reduce ATC's allowed return going forward, and continued regulatory and competitive pressures in its service territories. The company also disclosed a $225 million agreement, signed in January 2017, to acquire a Michigan natural gas storage facility, and the formation of UMERC, a new stand-alone Upper Peninsula utility effective January 1, 2017.
Feb 28, 2017
2015
Wec Energy Group Annual Report, Year Ended Dec 31, 2015
WEC Energy Group, Inc. (formerly Wisconsin Energy Corporation, which acquired Integrys on June 29, 2015 and changed its name) reported 2015 operating revenues of $5,926.1 million, up from $4,997.1 million in 2014, and net income attributed to common shareholders of $638.5 million, compared with $588.3 million in 2014. Diluted EPS was $2.34, versus $2.59 in 2014. The Integrys acquisition, financed with about 90.2 million shares, $1.2 billion of long-term debt and $300.0 million of commercial paper, drove a large expansion of the balance sheet: total assets rose to $29,355.2 million from $14,905.0 million, and long-term debt (excluding current portion) rose to $9,124.1 million from $4,170.7 million. Management attributes the earnings increase in part to a $20.8 million pre-tax gain on the sale of Minergy LLC, while acquisition costs of $107.6 million weighed on results. Capital spending rose to $1,266.2 million in 2015 from $761.2 million, and management estimates total capital expenditures of $1,510.4 million in 2016. The filing reports a ratio of debt to total capitalization of 54.4% at year-end 2015, and the board raised the quarterly dividend to $0.4950 per share, targeting a payout ratio of 65–70% of earnings. Key regulatory and environmental matters include the EPA Clean Power Plan (stayed by the Supreme Court on February 9, 2016), the ICC investigations into PGL's AMRP program, and FERC complaints that could lower ATC's base ROE. Retail electric sales were slightly declining on a weather-normalized basis in 2015, and the owner of two Michigan iron ore mines plans to shut one in 2017. The filing also notes that Gale E. Klappa will retire as CEO effective May 1, 2016, and Allen L. Leverett has been appointed to succeed him.
Feb 26, 2016
2014
Wec Energy Group Annual Report, Year Ended Dec 31, 2014
Wisconsin Energy Corporation reported 2014 net income of $588.3 million, or $2.59 diluted earnings per share, compared with $577.4 million ($2.51 diluted) in 2013. Total operating revenues were $4,997.1 million in 2014 versus $4,519.0 million in 2013. The company operates primarily in two segments: a utility energy segment (Wisconsin Electric and Wisconsin Gas, operating as We Energies) that generated $770.2 million of operating income, and a non-utility energy segment (We Power) that generated $368.2 million, with the non-utility assets consisting of the Power the Future plants leased to Wisconsin Electric under long-term leases. The dominant strategic development is the pending acquisition of Integrys Energy Group, Inc., agreed June 22, 2014 and expected to close in the second half of 2015. Integrys shareholders will receive 1.128 shares of Wisconsin Energy common stock and $18.58 in cash per share, with the company expecting to issue approximately 91 million shares and about $1.5 billion of debt, and to assume Integrys' outstanding debt with an estimated fair value of $3.3 billion. The combined company will be named WEC Energy Group, Inc. Litigation over the deal was settled in principle via a Memorandum of Understanding, and a Michigan settlement agreement was reached in January 2015 that contemplates selling Michigan electric distribution assets and the Presque Isle Power Plant to UPPCO. Financially, cash from operations was $1,197.7 million in 2014, capital expenditures were $736.1 million, and common dividends paid were $352.0 million. Long-term debt including current maturities was $4,610.5 million and total assets were $15,163.4 million at year-end 2014. The Board raised the quarterly dividend to $0.4225 per share in January 2015, and the company expects to increase the dividend 7-8% upon closing of the Integrys acquisition.
Feb 27, 2015
2013
Wec Energy Group Annual Report, Year Ended Dec 31, 2013
Wisconsin Energy Corporation reported 2013 net income of $577.4 million, or $2.51 diluted earnings per share from continuing operations, up from $546.3 million and $2.35 in 2012. Total operating revenues were $4.52 billion, compared with $4.25 billion in 2012. Utility energy operating income rose to $719.4 million from $647.7 million, driven mainly by favorable winter weather and pricing increases. Non-utility energy operating income was $367.1 million, and the company expects comparable earnings from that segment in 2014. The company is pursuing a capital program of $3.2 billion to $3.5 billion over 2014 through 2018, including estimated capital expenditures of $711.0 million in 2014, $804.2 million in 2015 and $621.8 million in 2016. Investors should note a growing set of regulatory and environmental exposures: loss of two iron ore mine customers in Michigan that switched to an alternative electric supplier effective September 1, 2013; the planned conversion of the Valley Power Plant from coal to natural gas at a cost of $65 million to $70 million; and pending EPA greenhouse gas and coal combustion product rules. The Board increased the quarterly dividend to $0.39 per share in January 2014 and approved a new share repurchase program of up to $300 million for 2014 through 2017. Balance sheet metrics were stable, with total assets of $14.77 billion and a debt-to-total-capitalization ratio of 55.2% as reported, or 52.5% on an adjusted basis that treats the Junior Notes partly as equity. The company made no federal income tax payments for 2013 and does not expect to make any for 2014, due to bonus depreciation provisions.
Feb 27, 2014
2012
Wec Energy Group Annual Report, Year Ended Dec 31, 2012
Wisconsin Energy Corporation, now WEC Energy Group, Inc., reported 2012 net income of $546.3 million, or $2.35 diluted earnings per share from continuing operations, up from $2.18 in 2011. Total operating revenues were $4,246.4 million, down from $4,486.4 million in 2011, while operating income rose to $1,000.3 million from $887.3 million. The utility energy segment contributed $647.7 million of operating income and the non-utility energy segment $358.8 million. Lower other operation and maintenance expense, largely from a one-year suspension of $148 million of regulatory asset amortization under the 2012 Wisconsin rate case, drove much of the improvement. Electric sales were flat, and the company guided to 0.5% to 1.0% annual retail kWh growth over the next five years. The company's capital program and balance sheet are central to the investor case. Capital expenditures were $707.0 million in 2012 and are estimated at $692.7 million for 2013. The company expects to invest approximately $2.0 billion in its regulated utility business over the next three years, including a biomass plant in Rothschild and conversion of the Valley Power Plant from coal to natural gas. Total assets were $14,285.0 million at year-end, and the debt-to-total-capitalization ratio was 55.8%. Cash from operations rose to $1,173.9 million, and the company did not make federal income tax payments for 2012 due to bonus depreciation. The filing also highlights regulatory and environmental exposure. The Oak Creek AQCS project was completed at a final cost of approximately $740 million, and the company faces uncertainty from the vacated Cross-State Air Pollution Rule, potential greenhouse gas regulation, and a proposed rule that could classify coal combustion products as hazardous waste. The dividend was raised to $0.34 per quarter in January 2013, with a new policy targeting a 65-70% payout ratio in 2017.
Feb 27, 2013
2011
Wec Energy Group Annual Report, Year Ended Dec 31, 2011
Wisconsin Energy Corporation reported 2011 net income of $526.2 million, or $2.24 diluted earnings per share, up from $456.5 million ($1.93 per diluted share) in 2010. Income from continuing operations was $512.8 million versus $454.4 million. Total operating revenues rose to $4,486.4 million from $4,202.5 million. The utility energy segment's operating income declined to $544.8 million from $564.0 million, mainly due to higher other operation and maintenance expense and unfavorable weather, while the non-utility energy segment (the Power the Future plants) grew operating income to $348.9 million from $252.4 million as Oak Creek expansion Unit 2 entered service in January 2011. Cash from operations rose to $993.4 million, though the company contributed $277.4 million to qualified benefit plans in 2011 versus none in 2010. Capital expenditures were $830.8 million. Total assets were $13.86 billion and long-term debt including current maturities was $4.65 billion. The debt-to-total-capitalization ratio was 57.1% on an actual basis and 54.4% on an adjusted basis that treats the $500 million Junior Notes as partly equity. The company also repurchased shares under a $300 million program authorized in May 2011 and, in January 2012, raised its quarterly dividend to $0.30 per share with a target payout ratio trending toward 60% in 2014. Key risks flagged in the filing include regulatory outcomes on Oak Creek expansion cost recovery (estimated final cost about $181 million, or 8.3%, over the amount approved by the PSCW), environmental compliance costs (the Consent Decree is estimated at about $1.1 billion through 2013), possible reclassification of coal combustion products as hazardous waste, greenhouse gas regulation, and the October 2011 bluff collapse at the Oak Creek Power Plant, for which the WDNR had not yet released findings.
Feb 28, 2012
2010
Wec Energy Group Annual Report, Year Ended Dec 31, 2010
Wisconsin Energy Corporation reported 2010 net income of $456.5 million, or $3.86 diluted earnings per share, up from $382.4 million, or $3.24 per diluted share, in 2009. Income from continuing operations was $454.4 million, compared with $375.7 million in 2009. Total operating revenues were $4,202.5 million, and operating income rose to $810.4 million from $660.3 million. The utility energy segment contributed $564.0 million of operating income, while the non-utility energy segment, driven by the Power the Future (PTF) generating units, contributed $252.4 million, up from $120.1 million. Oak Creek expansion Unit 1 entered service in February 2010 and Unit 2 entered service on January 12, 2011. The company expects 2011 non-utility operating income of $340 million to $350 million. The company's near-term investor considerations center on capital spending and financing. Total capital expenditures were $798.2 million in 2010 and are estimated at $951.2 million for 2011. Commercial paper stood at $657.9 million at year-end, and the company issued $420 million of long-term debt in January 2011 to repay short-term borrowings used for Oak Creek Unit 2. Net working capital was negative by about $390.0 million at December 31, 2010. The filing estimates the final Oak Creek expansion cost at about $191 million, or 8.7%, above the amount initially approved by the PSCW, of which the company's share is $162 million, and it expects to seek PSCW recovery of those costs. The board approved a new dividend policy targeting a 50% to 55% payout ratio, raised the quarterly dividend to $0.52 per share (pre-split) in January 2011, and declared a two-for-one stock split distributed March 1, 2011. The filing also discloses pending matters, including a lawsuit against the company's cash balance pension plan, EPA air-emission activity under a Consent Decree, and greenhouse gas regulation, which management says it cannot yet quantify.
Feb 25, 2011
2009
Wec Energy Group Annual Report, Year Ended Dec 31, 2009
Wisconsin Energy Corporation, a diversified holding company headquartered in Milwaukee, reported 2009 net income of $382.4 million, or $3.24 diluted earnings per share, on operating revenues of $4.13 billion, compared with $359.1 million net income on $4.43 billion of revenues in 2008. Its utility energy segment, anchored by Wisconsin Electric and Wisconsin Gas (operating as We Energies), contributed $554.3 million of operating income in 2009, while the non-utility segment, centered on We Power, contributed $120.1 million. Results were weighed down by a recession that cut electric sales volumes, with total electric sales falling to 29.2 million MWh from 31.9 million MWh, and by milder weather. Net income was supported by lower fuel and purchased power costs and by rate adjustments. The central strategic story is the Power the Future (PTF) program. Oak Creek Unit 1 entered service on February 2, 2010, and Unit 2 is targeted for commercial operation by the end of August 2010, with a settlement with contractor Bechtel that adds $72 million in costs, of which the company is responsible for about 85%. Capital expenditures were $817.7 million in 2009 and are estimated at $950.5 million for 2010. Working capital was negative by approximately $420.2 million at year-end because of short-term debt used to finance the construction, which the company expects to refinance with long-term debt, including $530 million issued in February 2010. The filing also notes the planned sale of Edison Sault Electric for approximately $61.5 million and a January 2010 PSCW rate order, which raised Wisconsin electric rates by approximately $85.8 million (3.35%). The board increased the quarterly dividend to $0.40 per share. Key risks include environmental compliance costs of about $300 million expected in 2010, possible regulation of greenhouse gases and coal ash, rising natural gas and coal costs, and the dependence on regulatory approval for cost recovery. The ratio of debt to total capitalization was 58.1% at December 31, 2009.
Feb 26, 2010
2008
Wec Energy Group Annual Report, Year Ended Dec 31, 2008
Wisconsin Energy Corporation's 2008 Form 10-K, filed February 27, 2009, reports 2008 net income of $359.1 million, or $3.04 diluted earnings per share, compared with $335.6 million ($2.83 diluted) in 2007. Total operating revenues were $4,431.0 million, up from $4,237.8 million. Results were shaped by the September 2007 sale of Point Beach to an affiliate of FPL for about $924 million, which now generates bill credits and a power purchase agreement cost, and by a January 2008 Wisconsin rate order that authorized a 17.2% electric rate increase, partly offset by bill credits for a net 3.2% increase. Operating income in the utility segment fell slightly to $581.9 million from $586.0 million, while the non-utility segment rose to $89.3 million from $47.4 million on lease income from Port Washington Generating Station Unit 2, which entered service in May 2008. The company's main forward risk is its Power the Future strategy, centered on the Oak Creek expansion, where OC 1 is scheduled for late 2009 and OC 2 for fall 2010. Bechtel, the fixed-price contractor, submitted claims of approximately $413 million and $72 million in December 2008, which the company says are without merit and is contesting through dispute resolution. The filing states that each month of delay in OC 1 would reduce 2009 earnings by $0.03 per share. Liquidity was affected by the credit market contraction, with $1.6 billion of undrawn bank credit lines excluding Lehman's commitments, and the company's debt to total capitalization ratio was 58.5%. In January 2009 the board raised the quarterly dividend 25% to $0.3375 per share and adopted a new payout policy of 40% to 45% of earnings for 2009 through 2011.
Feb 27, 2009
2007
Wec Energy Group Annual Report, Year Ended Dec 31, 2007
Wisconsin Energy Corporation, now WEC Energy Group, Inc., reported 2007 income from continuing operations of $336.5 million, or $2.84 diluted EPS, up from $312.5 million and $2.64 in 2006. Total operating revenues were $4,237.8 million and total assets were $11,720.3 million at December 31, 2007. The company's results were driven by its utility energy segment, which contributed $586.0 million of operating income, compared with $532.8 million in 2006. The sale of Point Beach to an affiliate of FPL for approximately $924 million on September 28, 2007 is a major event: the company retained about $506 million of proceeds, deferred an approximately $418 million net gain as a regulatory liability, and expects that gain to be returned to customers largely through bill credits. The company's main growth driver is its Power the Future (PTF) strategy, under which We Power is building generating units leased to Wisconsin Electric. Construction work in progress for PTF units was about $1,453 million at year-end 2007, and capital expenditures were $1,211.5 million in 2007, with estimated capital expenditures of $1,183.4 million in 2008. The PSCW approved January 2008 electric price increases of $389.1 million (17.2%) for Wisconsin Electric, partly offset by bill credits, and lowered the return on equity from 11.2% to 10.75%. Wisconsin Electric also filed a Michigan rate increase request in January 2008. The filing also highlights risks investors should weigh: cash from operations fell to $532.5 million from $730.0 million, largely due to higher tax payments, and the company's debt to total capitalization ratio was 58.6%. The Oak Creek expansion faces a WPDES permit challenge, and the company reports $1.7 billion of unused bank back-up credit facilities. The Board raised the quarterly dividend 8.0% to $0.27 per share in January 2008, an annual rate of $1.08.
Feb 28, 2008
2006
Wec Energy Group Annual Report, Year Ended Dec 31, 2006
Wisconsin Energy Corporation's 2006 Form 10-K reports consolidated operating revenues of $3,996.4 million and net income of $316.4 million, with diluted EPS of $2.67 (continuing operations $2.64), up from $2.61 in 2005. Utility energy operating income was $532.8 million, down from $542.4 million, as mild weather reduced sales and operation and maintenance expenses rose, while the non-utility energy segment's operating income increased to $43.1 million from $19.5 million on a full year of PWGS 1 operations. Total assets were $11.13 billion at year-end, and the debt-to-total-capital ratio was 59.5%. The central strategic initiative is the Power the Future (PTF) program, which the company says will add 2,320 MW of generating capacity through 2010, with roughly $1.2 billion of the approximately $2.6 billion estimated cost spent through December 31, 2006. In December 2006 Wisconsin Electric agreed to sell Point Beach Nuclear Plant to an affiliate of FPL for approximately $998 million, subject to closing price adjustments and regulatory approval; the company anticipates closing in the third quarter of 2007 and expects over $1 billion of after-tax proceeds if the sale is completed. Capital expenditures were $928.7 million in 2006 and are estimated at $1,371.0 million for 2007. Risks highlighted in the filing include regulatory outcomes, PTF construction costs and schedules, the Point Beach sale approvals (including a possible IRS private letter ruling affecting the purchase price), environmental regulation including an EPA consent decree estimated at about $1 billion through 2013, and the outcome of formal arbitration with two iron ore mine customers. The board also raised the quarterly dividend 8.7% to $0.25 per share, equivalent to $1.00 annually.
Feb 28, 2007
2005
Wec Energy Group Annual Report, Year Ended Dec 31, 2005
Wisconsin Energy Corporation, a diversified holding company with a utility energy segment and a non-utility energy segment, reported 2005 total operating revenues of $3,815.5 million and net income of $308.7 million, compared with $306.4 million in 2004. Income from continuing operations rose to $303.6 million from $219.6 million, and diluted earnings per share from continuing operations were $2.56 versus $1.84. The utility segment contributed $542.4 million of operating income, while the non-utility segment's operating income rose to $19.5 million, largely due to Port Washington Generating Station Unit 1 entering service in July 2005. Management highlighted higher fuel and purchased power costs, a coal delivery shortfall, and MISO Midwest Market charges as pressures during 2005, and the company has deferred and sought recovery of part of these costs. The company's central strategy is Power the Future, a plan to add 2,320 megawatts of gas- and coal-fired capacity by 2010, with the Oak Creek coal units (about $2.191 billion target cost) and the second Port Washington unit still under construction. The filing states that management expects to finance the majority of this program with internally generated cash and debt, with no new equity planned, and that the debt-to-total-capital ratio was 59.5% at December 31, 2005. Rate increases approved by the PSCW in January 2006, including $222.0 million for retail electric service, are expected to support recovery of these costs. Key risks include construction cost and schedule overruns, regulatory approvals, the pending FERC authorization required under the Energy Policy Act of 2005, the pending review of Point Beach nuclear plant ownership and operation, and the Department of Energy's breach of its used fuel removal obligation.
Mar 2, 2006
2004
Wec Energy Group Annual Report, Year Ended Dec 31, 2004
Wisconsin Energy Corporation's 2004 Form 10-K reports that 2004 net income rose to $306.4 million, or $2.57 diluted earnings per share, from $244.3 million, or $2.06, in 2003. The result includes $184.2 million of income from discontinued operations, mainly from the July 31, 2004 sale of the manufacturing segment (WICOR Industries) to Pentair, Inc. Income from continuing operations fell to $122.2 million from $200.4 million, reflected in $150.4 million of asset valuation charges, including a $122.0 million non-cash charge on the Calumet Energy facility. Operating income was $379.8 million compared with $482.2 million in 2003. The utility energy segment remains the core business, with operating income of $528.6 million in 2004 versus $544.1 million in 2003. The company is executing its Power the Future strategy: two 545-megawatt natural gas units at Port Washington, with the first expected in service early in the third quarter of 2005, and two 615-megawatt coal units at Oak Creek (Elm Road), whose CPCN was vacated by the Dane County Circuit Court and is being reviewed by the Supreme Court of Wisconsin, with oral arguments set for March 30, 2005. The filing states the company expects Power the Future capital needs of about $2.5 billion net, and total debt was reduced by $654.2 million during 2004 using sale proceeds. Balance sheet and cash flow data show total assets of $9,565.4 million, a debt-to-total-capital ratio of 59.3% at December 31, 2004 (down from 64.4% in 2003), and operating cash flow of $598.7 million. The company also raised its quarterly dividend 4.8% to $0.22 per share in January 2005, bringing the annual rate to $0.88, and the Elm Road approval process is the main near-term regulatory risk.
Mar 4, 2005
2003
Wec Energy Group Annual Report, Year Ended Dec 31, 2003
Wisconsin Energy Corporation (now WEC Energy Group, Inc.) reported 2003 net income of $244.3 million, or $2.06 diluted EPS, up from $167.0 million in 2002, on total operating revenues of $4.05 billion. Results were shaped by a cooler summer, higher fuel and purchased power costs, and higher benefit and nuclear costs in the utility segment, partly offset by gas margins and lower financing costs. Operating income in the utility energy segment fell to $544.1 million from $562.1 million, while the non-utility segment's operating loss narrowed to $61.5 million from $132.0 million, largely because 2002 carried larger asset valuation charges. The company reported a $45.6 million asset valuation charge in 2003 related primarily to non-utility investments. The most significant strategic development is the agreement announced in February 2004 to sell the manufacturing segment (WICOR Industries) to Pentair, Inc. for $850 million in cash plus assumption of about $25 million of debt, with net cash proceeds expected to be about $740 million after taxes and transaction costs. The company expects to use proceeds to pay down debt and repurchase up to $50 million of common stock, and expects the sale to close in the second or third quarter of 2004. Management also highlighted its Power the Future strategy, which calls for about 2,120 megawatts of new generation at an estimated cost of about $2.5 billion, with Port Washington and Elm Road units approved by the Public Service Commission of Wisconsin but subject to legal challenges. Capital expenditures were $659.4 million in 2003 and are estimated at $699.2 million for 2004. Total assets were $10.03 billion at year-end, and the company's credit ratings were lowered by S&P and Moody's and Fitch during 2003, though outlooks were stable as of early 2004. The dividend was raised 5% to $0.84 annualized in February 2004.
Mar 2, 2004
2002
Wec Energy Group Annual Report, Year Ended Dec 31, 2002
Wisconsin Energy Corporation reported 2002 net income of $167.0 million, or $1.44 diluted earnings per share, down from $219.0 million ($1.86 per diluted share) in 2001. The decline was driven primarily by a $141.5 million pre-tax ($92.0 million after tax, or $0.79 per share) non-cash asset valuation charge in the first quarter of 2002 on non-utility energy assets, including the Wisvest-Connecticut plants, which were sold on December 6, 2002. Adjusted earnings, which exclude that charge and other items, rose to $2.32 per share from $2.11. The utility energy segment was the main driver, with net earnings of $295.2 million, and the manufacturing segment's net earnings were $24.0 million. The company is executing its 10-year, $7 billion Power the Future strategy to add generation and upgrade the distribution system in Wisconsin. It plans to invest approximately $3.0 billion in 2,800 megawatts of new generation, about $1.3 billion in upgrades to existing generating assets, and about $2.7 billion in distribution assets. The Public Service Commission of Wisconsin issued a certificate of public convenience and necessity in December 2002 for the Port Washington gas-fired units, and a decision on the Oak Creek coal site is expected in late 2003. Total capital expenditures are estimated at $693 million for 2003. The company also divested about $1.0 billion of non-core assets since 2000 and reported total assets of $8.36 billion at December 31, 2002. Key risks include pending regulatory approvals for Power the Future, Moody's review for possible downgrade of Wisconsin Energy's security ratings in February 2003, exposure to the Point Beach nuclear plant's auxiliary feedwater issues cited by the NRC, and a Court of Federal Claims lawsuit against the U.S. Department of Energy over used fuel storage, where damages exceed $35 million. The company's 2003 dividend remained at $0.80 per share, the same as in 2002 after the reduction that began in 2001.
Feb 28, 2003
2001
Wec Energy Group Annual Report, Year Ended Dec 31, 2001
Wisconsin Energy Corporation reported 2001 net income of $219.0 million, or $1.86 diluted earnings per share, compared with $154.2 million, or $1.27 per diluted share, in 2000. Total operating revenues rose to $3,928.5 million from $3,362.7 million. Management reported adjusted earnings of $2.04 per share for 2001, an increase of $0.53 per share over 2000 adjusted earnings. The company operates through a utility energy segment (Wisconsin Electric, Wisconsin Gas and Edison Sault), a non-utility energy segment (Wisvest and W.E. Power) and a manufacturing segment (WICOR Industries pump businesses). The central strategic initiative is Power the Future, a 10-year, $7 billion plan announced in September 2000 and enhanced in February 2001. It calls for about $3.0 billion to build 2,800 megawatts of new natural gas and coal generation through W.E. Power, about $1.3 billion to upgrade existing generating assets, and about $2.7 billion for distribution system assets. Implementation is subject to state and federal regulatory approvals. The company is divesting non-core assets, including most of Wisvest's holdings and a large part of Wispark's real estate, and received total proceeds of almost $700 million from non-core divestitures in 2000 and 2001. The quarterly dividend was cut to $0.20 per share in 2000, and a share repurchase program was active. Key risks include a five-year PSCW rate restriction period that froze electric and gas rates from January 1, 2001, a lawsuit with a $100 million punitive damage award that was overturned on appeal and remanded for retrial, environmental remediation and NOx compliance costs, and the Department of Energy's failure to begin removing used nuclear fuel from Point Beach. Total capital expenditures were $672.5 million in 2001 and are estimated at $661 million for 2002.
Mar 26, 2002
2000
Wec Energy Group Annual Report, Year Ended Dec 31, 2000
Wisconsin Energy Corporation (now WEC Energy Group, Inc.) reported a 2000 year in which the April 26, 2000 acquisition of WICOR, Inc. transformed the company into a three-segment holding company: utility energy, non-utility energy and manufacturing. Total operating revenues rose to $3,354.7 million from $2,272.6 million, and net income fell to $154.2 million from $209.0 million. Diluted earnings per share were $1.27 versus $1.79, while earnings before non-recurring items were $1.51 per share versus $1.88. The filing attributes the decline to WICOR merger costs of $0.41 per share, $0.69 per share of December 2000 non-recurring charges, partly offset by a $0.45 per share gain on the SkyGen sale, along with higher fuel and purchased power costs and cooler summer weather. The company is pursuing a "Power the Future" strategy, described as a 10-year, $7 billion program to add at least 2,800 megawatts of new gas- and coal-fired capacity, to be leased back to Wisconsin Electric. Management is also divesting non-core assets: the two Connecticut power plants are under contract for expected gross proceeds of about $350 million, with closing expected in the second quarter of 2001, and about 80% of the Wispark real estate portfolio is slated for sale. For 2001, diluted EPS is forecast at $2.00 to $2.25, and capital expenditures are estimated at $715.0 million. Balance sheet and financing pressures are significant. Total assets grew to $8,406.1 million from $6,061.8 million, and short-term debt rose to $1,386.1 million from $507.5 million, largely to fund the $1.2 billion WICOR purchase. The dividend was cut to $0.20 per quarter from $0.39 beginning in December 2000, and Moody's lowered the company's issuer rating to A2 from A1. Investors should weigh the expected 2001 earnings recovery and asset sale proceeds against the leverage, the regulatory and litigation risks (including the $100 million punitive damages verdict under appeal), and the company's exposure to natural gas price increases.
Mar 23, 2001
1999-A2
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1999
This Amendment No. 2 to Wisconsin Energy Corporation's Form 10-K for the fiscal year ended December 31, 1999, filed June 23, 2000, is a limited filing. Its sole purpose is to add Exhibit 99.1, which furnishes the annual financial statements of the Wisconsin Electric Power Company Employee Retirement Savings Plan in lieu of Form 11-K. The filing does not contain the company's full operating, financial or segment results for 1999. The exhibit shows the plan's net assets available for benefits of $553,314,669 at December 31, 1999, up from $462,098,147 at December 31, 1998. Net increase for 1999 was $91,216,522, which included $9,319,288 transferred in from the merged Edison Sault Electric Company plans. Investments were $552,629,548, and the largest holding was WEC Common Stock, with 4,702,518 shares valued at $90,523,472. Net appreciation in investment value was $20,383,798 in 1999, compared with $36,488,660 in 1998, and common stock showed a $44,870,717 depreciation. The amendment also lists exhibits and recent Form 8-K filings. Those 8-Ks concerned the West Allis lawsuit, a contamination case in which a Wisconsin trial court entered judgment against Wisconsin Electric. Wisconsin Electric tendered $110.2 million, including interest, to stop further 12% per annum interest accrual on the judgment. The exhibit index also lists the merger agreement with WICOR, Inc. dated June 27, 1999.
Jun 23, 2000
1999-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1999
Wisconsin Energy Corporation, now WEC Energy Group, Inc., filed this Form 10-K/A (Amendment No. 1) to its 1999 Annual Report to amend Item 5, Market for Registrant's Common Equity and Related Stockholder Matters. The amendment reports 91,062 registered stockholders as of year-end 1999, including accounts in the company's dividend reinvestment and stock purchase plan. Its common stock is listed on the New York Stock Exchange under the ticker WEC. The company reported quarterly dividends of $.39 per share throughout 1999, totaling $1.56 for the year, compared with $1.555 for 1998. The 1999 stock price ranged from a high of $31-9/16 to a low of $19-1/16, with the fourth-quarter range of $24-3/16 to $19-1/16. Dividends remain subject to regulatory restrictions and the board's discretion. The filing also discloses that Wisconsin Electric Power Company paid cash dividends of $179,572,000 in 1999 and $179,001,000 in 1998 to its sole common stockholder, Wisconsin Energy. The main new disclosure is an administrative error discovered in April 2000 under the Stock Plus Investment Plan. Plan sales of common stock exceeded the shares registered under the Securities Act of 1933 beginning in December 1999. The oversales were 124,622 shares in December 1999 for $2,451,702, 615,754 shares in the first quarter of 2000 for $11,242,716, and 78,963 shares through April 3, 2000 for $1,576,794. The company says it promptly registered additional shares once it discovered the error.
Apr 14, 2000
1999
Wec Energy Group Annual Report, Year Ended Dec 31, 1999
Wisconsin Energy Corporation (now WEC Energy Group, Inc.) and its principal subsidiary Wisconsin Electric Power Company filed a combined 10-K for the year ended December 31, 1999. Wisconsin Energy reported 1999 net income of $208,989 thousand, or $1.79 per share, up from $188,132 thousand and $1.65 per share in 1998. Excluding an $18 million one-time litigation settlement charge (about $10.8 million after tax, or $0.09 per share), earnings from continuing operations were $220 million. Total operating revenues rose to $2.27 billion from $2.04 billion, driven by the non-utility segment, which began independent power production after the April 1999 acquisition of two Connecticut power plants for $277 million. Total assets grew to $6.23 billion from $5.36 billion. The pending $1.2 billion acquisition of WICOR, Inc., which owns Wisconsin Gas Company, was expected to close on or about April 26, 2000. The Public Service Commission of Wisconsin approved the merger in March 2000 with a qualified five-year rate freeze, and the company expects about $35 million in annual net merger-related cost savings. The company plans to fund the cash portion through commercial paper backed by new bank facilities. Wisconsin Electric's Point Beach nuclear plant supplied 22% of its 1999 net energy supply, up from 18% in 1998. The key risk for investors is the West Allis lawsuit, in which a jury in July 1999 awarded $4.5 million in actual damages and $100 million in punitive damages against Wisconsin Electric. The company has tendered a $110 million contested liability payment, has not established a reserve, and considers the verdict unsupported and likely to be reversed or substantially reduced on appeal.
Mar 30, 2000
1998-A2
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1998
This Amendment No. 2 to Wisconsin Energy Corporation's Form 10-K for the fiscal year ended December 31, 1998 does not contain the company's full financial statements or business discussion. Its sole purpose, as stated in Item 14, is to add Exhibit 99.1, which furnishes the 1998 annual report for the Wisconsin Electric Power Company Employee Retirement Savings Plan (ERSP) in lieu of Form 11-K. The amendment otherwise leaves Item 14, the exhibit index and the remainder of the original report unchanged. The amendment is dated June 25, 1999, and the accompanying auditor consent is dated June 29, 1999. The exhibit reports that the plan held net assets available for benefits of $462,098,147 at December 31, 1998, up from $378,537,107 at December 31, 1997. The largest participant-directed holding was the WEC Common Stock Fund, valued at $109,914,813 at year-end 1998, compared with $101,877,660 a year earlier. Net assets were $68,585,262 for the Blended Rate Income Fund and $81,535,742 for the Fidelity Equity Income Fund at year-end 1998. Participant contributions totaled $30,229,463 in 1998, and the employer contributed $7,793,332, of which the WEC Common Stock Fund received $5,386,262 in interest and dividends. Benefits paid to participants totaled $14,236,649 in 1998. For investors, the filing is primarily an administrative amendment about a retirement savings plan. It contains no consolidated income statement, balance sheet, or cash flow information for Wisconsin Energy Corporation itself, and the figures above relate only to the employee plan's assets.
Jun 29, 1999
1998-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1998
Wisconsin Energy Corporation's Form 10-K/A (Amendment No. 1) for fiscal year 1998 does not restate the company's results; it corrects line descriptions in the Consolidated Statement of Cash Flows (1996–1998) and adds the missing "Net Income" line to the 1998 Consolidated Common Stock Equity Statement. The remainder of Item 8, including the financial statements, notes and the PricewaterhouseCoopers report dated January 27, 1999, is unchanged. Per the filing, the company reported 1998 net income of $188.1 million ($1.65 basic and diluted EPS), down from $218.1 million in 1996 but up from $60.7 million in 1997, which included a $30.7 million merger-cost write-off and a $30.0 million equipment impairment. Operating revenues rose to $1.98 billion in 1998 from $1.79 billion in 1997, led by electric revenues of $1.66 billion. Total assets grew to $5.36 billion from $5.04 billion, and long-term debt increased to $1.75 billion from $1.53 billion, reflecting several 1998 medium-term note and debenture issuances. Cash provided by operating activities was $459.9 million, and construction expenditures were $399.0 million. The filing also discloses pending and ongoing items relevant to investors: WISVEST Connecticut, LLC's agreement to purchase the Bridgeport Harbor and New Haven Harbor stations for $272 million, expected to close in the second quarter of 1999 subject to regulatory approvals; the ESELCO, Inc. acquisition accounted for as a pooling of interests; and remediation of eleven former manufactured gas plant sites with estimated future costs of $25 million to $40 million.
Apr 15, 1999
1998
Wec Energy Group Annual Report, Year Ended Dec 31, 1998
Wisconsin Energy Corporation (now WEC Energy Group, Inc.) and its subsidiary Wisconsin Electric Power Company filed this combined Form 10-K for the fiscal year ended December 31, 1998. Wisconsin Energy reported 1998 net income of $188.1 million, or $1.65 per share, compared with $60.7 million, or $0.54 per share, in 1997. Operating revenues rose to $1.98 billion from $1.79 billion. The increase was driven mainly by final and interim 1998 Wisconsin retail electric rate increases and a 6.5% rise in electric kilowatt-hour sales at Wisconsin Electric. Gas therm deliveries fell 6.2%, and steam sales decreased 12%. The 1997 results had been hurt by a $31 million merger write-off and a $30 million Kimberly Cogeneration Equipment impairment, and 1997 fuel and purchased power costs were significantly higher. Point Beach Nuclear Plant returned to stronger performance, with 18% of Wisconsin Electric's 1998 net energy supply versus 6% in 1997. The company guided to 1999 earnings of $1.85 to $2.05 per share, an increase of 12% to 24% over 1998. Management plans a 1999 construction budget of about $889 million, including $350 million for Wisconsin Electric and $539 million for non-utility subsidiaries and Edison Sault. The largest pending transaction is WISVEST Connecticut, LLC's $272 million purchase of two Connecticut fossil-fueled power plants, expected to close in the second quarter of 1999 and funded partly by a $245 million nonrecourse project financing. The filing also notes that Wisconsin Energy's non-utility assets would rise from about 12% to over 18% of public utility assets under the Wisconsin asset cap once that acquisition closes. The company also acquired ESELCO, Inc., parent of Edison Sault Electric Company, effective May 31, 1998. Wisconsin Electric's Year 2000 program expects core critical business functions to be Year 2000 Ready by June 30, 1999, with total program expenses of about $44 million over 1998 through 2000.
Mar 31, 1999
1997-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1997
This Form 10-K/A (Amendment No. 1) of Wisconsin Energy Corporation, filed June 29, 1998 for the fiscal year ended December 31, 1997, does not contain the company's full annual financial statements. Its sole purpose is to add Exhibit 99.1, which furnishes the Form 11-K annual report for the Wisconsin Electric Power Company Employee Retirement Savings Plan (ERSP) for 1997, in lieu of a separate 11-K filing. The amendment also restates the Item 14 exhibit index, which is otherwise unchanged from the original report. The exhibit reports that the ERSP's net assets available for benefits were $378,537,107 at December 31, 1997, up from $149,528,115 at December 31, 1996, with the increase driven largely by plan transfers of $159,141,486 from the WE Management Employee Savings Plan merged in during 1997. Plan contributions in 1997 totaled $29,653,013, including employer contributions of $6,590,584 invested in the WEC Common Stock Fund. The WEC Common Stock Fund held $101,877,660 of assets at year-end 1997, the largest single holding, and 1,291 participant loans were outstanding at year-end. For investors in Wisconsin Energy Corporation, this filing carries limited financial information about the parent company's operations. Its substance concerns the employee savings plan of its subsidiary, Wisconsin Electric Power Company, and the Form 10-K exhibit index it amends. The report of Price Waterhouse LLP, dated June 23, 1998, gives an unqualified opinion on the plan's financial statements.
Jun 29, 1998
1996-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1996
This Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 1996, filed by Wisconsin Energy Corporation on June 27, 1997, does not contain a full annual financial package. Its stated purpose is to add Exhibits 99.1 and 99.2, which are Form 11-K annual reports for the Wisconsin Electric Power Company Management Employee Savings Plan and Represented Employee Savings Plan. The amendment also includes Schedule I condensed parent-company financial statements, a list of exhibits, and the unaudited pro forma combined condensed financial information referenced in Item 14 for Primergy Corporation and Wisconsin Energy Company. The parent-company schedule shows 1996 net income of $218,135 thousand, compared with $234,034 thousand in 1995 and $180,868 thousand in 1994. Equity in subsidiaries' earnings was $217,289 thousand in 1996, and dividends from subsidiaries were $167,889 thousand. At December 31, 1996, total assets were $1,957,128 thousand and total stockholders' equity was $1,948,133 thousand, up from $1,874,054 thousand a year earlier. The two savings plan exhibits report net assets available for benefits of $159,141,488 for the Management Employee Savings Plan and $149,528,115 for the Represented Employee Savings Plan at December 31, 1996. Both plans invest employer contributions in the WEC Common Stock Fund, which held $45,708,902 and $65,335,953 respectively at year-end 1996. Investors seeking the consolidated operating results should refer to the original 10-K filing rather than this amendment.
Jun 27, 1997
1995-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1995
Wisconsin Energy Corporation (now WEC Energy Group, Inc.) filed this Amendment No. 1 to its 1995 Annual Report on Form 10-K on June 28, 1996. The amendment does not restate the full annual report. It adds two exhibits, information furnished in lieu of Form 11-K annual reports for the Management Employee Savings Plan and the Represented Employee Savings Plan, and it includes the parent-company-only Condensed Financial Statements (Schedule I) for 1995, 1994 and 1993. The filing also references the pending combination with Northern States Power Company (NSP) under an Amended and Restated Agreement and Plan of Merger dated April 28, 1995, as amended July 26, 1995, and notes that Primergy Corporation pro forma combined financial information was previously filed. According to Schedule I, parent-company net income was $234.0 million in 1995, up from $180.9 million in 1994 and $190.1 million in 1993. Equity in subsidiaries' earnings was $233.9 million in 1995. Dividends from subsidiaries were $159.6 million in 1995, and dividends paid on common stock were $159.7 million. Total stockholders' equity at year-end 1995 was $1.87 billion, compared with $1.75 billion at year-end 1994, and parent-only total assets were $1.88 billion. Cash provided by operating activities was $151.6 million, and the parent raised $52.4 million from the sale of common stock. These figures are for the holding company alone and reflect its investment in subsidiaries. The amendment is limited in scope. Its main investor relevance lies in the parent-only figures, which show a growing equity base and earnings flowing up from subsidiaries, along with the status of the NSP combination. Readers seeking consolidated operating results, segment data or the full financial statements should refer to the original 1995 Form 10-K.
Jun 28, 1996
1994-A
Wec Energy Group Annual Report (Amendment), Year Ended Dec 31, 1994
Wisconsin Energy Corporation filed this Amendment No. 1 to its 1994 Annual Report on Form 10-K, dated June 23, 1995, for the sole purpose of adding two exhibits: Exhibit (99)-1 and Exhibit (99)-2, which are information furnished in lieu of Form 11-K annual reports for its Management Employee Savings Plan and Represented Employee Savings Plan for the year ended December 31, 1994. The amendment does not revise the company's consolidated financial statements or business discussion, and the rest of Item 14 and the Exhibit Index are stated to be unchanged. The included schedules are condensed parent-company financial statements (Schedule I). They show 1994 net income of $180,868 thousand, compared with $190,135 thousand in 1993 and $171,239 thousand in 1992, with equity in subsidiaries' earnings of $180,898 thousand in 1994. Total stockholders' equity at year-end 1994 was $1,747,355 thousand, up from $1,666,701 thousand in 1993, and common stock rose from $577,935 thousand to $628,446 thousand, with the company reporting $50,494 thousand from sales of common stock in 1994. The savings plan statements show total net assets available for benefits of $116,003,835 for the Management Employee Savings Plan and $109,338,095 for the Represented Employee Savings Plan at December 31, 1994. Plan transfers in were significant in 1994, largely reflecting rollovers of Tax Reduction Act Stock Ownership Plan (TRASOP) balances after that plan was terminated on September 21, 1994. The WEC Common Stock Fund is the largest single investment in both plans, with a market value of $44,877,961 in the Management plan and $59,584,708 in the Represented plan.
Jun 26, 1995
1994
Wec Energy Group Annual Report, Year Ended Dec 31, 1994
Wisconsin Energy Corporation, the holding company for Wisconsin Electric Power Company and Wisconsin Natural Gas Company, reported 1994 net income of $180.9 million, or $1.67 per share, down from $190.1 million, or $1.80 per share, in 1993. Results include a non-recurring $73.9 million revitalization charge taken in the first quarter of 1994 ($45 million net of tax, or 42 cents a share). Excluding that charge, earnings per share were $2.09, a 16.1 percent increase over 1993. Total operating revenues were $1.74 billion, with electric revenues of $1.40 billion and gas revenues of $324.3 million. Electric kilowatt-hour sales rose 4.8 percent, driven by warmer summer weather and economic activity, and a 5.7 percent reduction in non-fuel operation and maintenance expenses was cited. The company is restructuring its utility operations under a "revitalization" program, with 403 employees electing early retirement and 651 enrolling in severance packages. Management expects the restructuring charge to be offset by operation and maintenance savings by the end of 1995, and plans to merge Wisconsin Natural into Wisconsin Electric by year-end 1995. Capital requirements for the utility subsidiaries for 1995-1999 total $291 million in 1995 and $315 million in 1999, with construction spending estimated at $248 million in 1995 declining to $174 million in 1999. Key risks include regulatory uncertainty, as the Public Service Commission of Wisconsin is investigating possible fundamental changes to the state's electric utility industry, and a pending decision on replacing the Point Beach Unit 2 steam generators estimated at $119 million. The company also reports a $70 million expenditure on the Kimberly cogeneration facility, whose future is under evaluation after the PSCW selected an independent power producer project. Total assets were $4.41 billion at December 31, 1994.
Mar 30, 1995