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Wec Energy Group 8-K Report, Regulation FD Disclosure (Jan 9, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed January 9, 2024
Period End
January 9, 2024
Security
WEC
In the record · 2016–202610-K1110-Q338-K260

WEC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 260 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’20Oct ’20
  2. Leadership change8-K · Oct ’22Oct ’22
  3. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed January 9, 2024. Cited figures are marked; the original filing is the authoritative source.

WEC Energy Group, Inc. filed this Form 8-K on January 9, 2024 under Item 7.01 (Regulation FD Disclosure) to furnish investor presentation slides (Exhibit 99.1, titled "Investing in Efficiency, Sustainability and Growth: Investor Update, January 2024") for upcoming meetings with investors.

The presentation sets out a 2024-2028 capital plan of $23.4 billiona, with the company citing a projected compound annual EPS growth of 6.5% to 7.0%, a 7.0% dividend increase to an annual rate of $3.34 per share, and 2023 adjusted EPS guidance of $4.58-$4.62 (GAAP guidance of $4.17-$4.21). The most material item for investors is the regulatory update in Illinois. The company says it will book a non-cash charge of 41 cents per share related to the disallowance of construction costs for modern service centers and facilities.

The Illinois Commerce Commission also ordered Peoples Gas to pause all spending on its Safety Modernization Program until it determines the optimal method of pipe replacement and investment level, with ICC Staff to initiate that proceeding no later than February 1, 2024. On January 3, 2024, the ICC granted a limited rehearing request seeking to restore $134 millionb of costs related to unfinished and emergency work under that program.

Other disclosed plans include accelerating the exit from coal to end of 2032 (three years earlier than previously planned), with the Oak Creek Units 5-6 retirement scheduled for May 2024, and a regulated renewables program of 3,830 MW at a total investment of $6.8 billionc. The presentation also states that the company expects to be the only utility to have beaten its EPS guidance every year for 19 years running, and projects Wisconsin electric sales growth of 4.5%-5.0% and gas growth of 0.7%-1.0% for 2026-2028.

02—Key points

Key Highlights

  1. Item 7.01 Regulation FD filing furnishing investor presentation slides (Exhibit 99.1) for upcoming investor meetings; signed by William J. Guc, Vice President and Controller
  2. Illinois charge: non-cash charge of 41 cents per share for disallowed construction costs for modern service centers and facilities
  3. Peoples Gas ordered by ICC to pause all Safety Modernization Program spending pending determination of pipe replacement method and investment level; ICC Staff proceeding to start no later than February 1, 2024
  4. Limited rehearing granted January 3, 2024 to seek restoration of $134 million of unfinished and emergency Safety Modernization Program costs
  5. 2024-2028 capital plan of $23.4 billion (before potential adjustments), with a revised plan to be presented on the 2023 earnings call; projected compound annual EPS growth of 6.5% to 7.0%
  6. Dividend increase of 7.0% to an annual rate of $3.34 per share, the 21st consecutive year of higher dividends
  7. Coal exit accelerated to end of 2032 (three years earlier), with Oak Creek Units 5-6 (528 MW) retiring May 2024 and Columbia Units 1-2 (300 MW) by June 1, 2026

03—Questions

Frequently Asked Questions

  1. Why is the company taking a charge in the Illinois rate case?

    The filing states that WEC Energy Group will book a non-cash charge of 41 cents per share related to the disallowance of construction costs for modern service centers and facilities by the Illinois Commerce Commission.

  2. What does the ICC order on Peoples Gas's Safety Modernization Program mean for spending?

    The 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 Staff is to initiate that proceeding no later than February 1, 2024.

  3. What is the company's capital plan and expected earnings growth?

    The presentation shows a 2024-2028 capital plan of $23.4 billion before potential adjustments, with asset base growing from $29.4 billion (2023E) to $43.3 billion (2028E). The company expects compound annual EPS growth of 6.5% to 7.0%, and a revised capital plan will be presented during the 2023 earnings call.

  4. What are the company's dividend plans?

    The board announced a plan to raise the dividend by 7.0% to an annual rate of $3.34 per share, with the quarterly dividend of 83.5 cents per share planned for the first quarter of 2024. This marks the 21st consecutive year of dividend increases.

  5. How is the company changing its coal and renewables strategy?

    The company plans to eliminate coal as an energy source by end of 2032, three years earlier than before, and expects to use coal only as backup fuel by end of 2030. The 2024-2028 plan includes building and owning 3,800 MW of renewable capacity with a $6.8 billion investment.

04—Continue

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