01—Abstract
Summary
Summary of the 8-K filed May 17, 2024. Cited figures are marked; the original filing is the authoritative source.
WEC Energy Group, Inc. filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) on May 17, 2024, furnishing as Exhibit 99.1 presentation slides for its "Investor Update: May 2024," to be used in upcoming meetings with investors.
The filing itself contains no new financial results; the substance lies in the attached slides, which outline the company's outlook. The slides describe a 2024-2028 capital plan of $23.7 billiona, which the company calls its largest five-year plan in history, and state that the company expects compound annual EPS growth of 6.5% to 7.0%. The 2024 EPS guidance is $4.80-$4.90.
The company also reports a 2024 dividend increase of 7.0% to an annual rate of $3.34b per share, its 21st consecutive year of dividend increases. Projected cash from operations for 2024-2028 is $16.5 to $17.5 billion, with incremental debt of $7.15 to $8.15 billion and common equity of $1.95 to $2.35 billion.
Key risks highlighted include pending Wisconsin rate reviews, with proposed revenue increases for 2025, and an Illinois Commerce Commission order directing Peoples Gas to pause spending on its Safety Modernization Program, with an order expected by June 1, 2024. The slides also describe a plan to exit coal by the end of 2032 and a $7.0 billionc renewables investment program.
02—Key points
Key Highlights
- 2024-2028 capital plan of $23.7 billion, described as the largest five-year plan in company history.
- Expected compound annual EPS growth of 6.5% to 7.0%, with 2024 EPS guidance of $4.80-$4.90.
- Dividend increased 7.0% in January to a new annual rate of $3.34 per share, the 21st consecutive year of higher dividends.
- Wisconsin utilities filed rate applications in April; proposed 2025 electric revenue increases include 6.9% (Wisconsin Electric) and 8.5% (Wisconsin Public Service), with a Commission order expected in Q4 2024.
- Illinois Commerce Commission ordered Peoples Gas to pause all Safety Modernization Program spending; a limited rehearing seeks to restore $145 million of costs, with an order expected by June 1, 2024.
- $7.0 billion planned investment in 3,830 MW of regulated renewables and battery storage, plus gas-fueled generation and LNG projects.
- Projected 2024-2028 financing: cash from operations of $16.5-$17.5 billion against a capital plan that excludes ATC capital.
03—Questions
Frequently Asked Questions
Does this 8-K report new financial results?
No. Item 7.01 furnishes presentation slides for upcoming investor meetings under Regulation FD. The filing itself does not report new financial results; it attaches Exhibit 99.1, the slides.
What is the company's long-term earnings outlook?
The slides project compound annual EPS growth of 6.5% to 7.0%, supported by a 2024-2028 capital plan of $23.7 billion. The 2024 EPS guidance is $4.80-$4.90.
What regulatory risks do the slides identify?
They cite Wisconsin rate reviews with a Commission decision expected in Q4 2024 for rates effective January 1, 2025, and an Illinois Commerce Commission order pausing Peoples Gas's Safety Modernization Program spending. The company says it will appeal a 2023 Illinois disallowance that produced a non-cash charge of 41 cents per share.
How does the company plan to change its generation mix?
The slides state a plan to eliminate coal as an energy source by the end of 2032, with Oak Creek Units 5-6 (528 MW) retiring in May 2024 and Oak Creek Units 7-8 (611 MW) retiring in late 2025. The company also plans to build and own 3,800 MW of carbon-free generation in the 2024-2028 plan.
What is the company's dividend outlook?
The company raised its dividend by 7.0% in January 2024 to an annual rate of $3.34 per share. The slides describe this as top-decile dividend growth in the industry and state that the company was added to the S&P High Yield Dividend Aristocrats Index.
04—Continue