01—Abstract
Summary
Summary of the 8-K filed June 3, 2024. Cited figures are marked; the original filing is the authoritative source.
WEC Energy Group, Inc. filed this Form 8-K on June 3, 2024 under Item 7.01 (Regulation FD Disclosure) to furnish presentation slides for its upcoming investor meetings as Exhibit 99.1.
The June 2024 investor update presents the company's strategy and financial outlook, including 2024 EPS guidance of $4.80a-$4.90, a 2024-2028 capital plan of $23.7 billion, and a projected compound annual EPS growth rate of 6.5% to 7.0%. The company also reports a dividend increase of 7.0% to an annual rate of $3.34 per share in January 2024, its 21st consecutive year of higher dividends. The presentation highlights a large regulated investment program, including $7.0 billion in announced renewable projects totaling 3,830 MW and new gas-fueled generation and LNG storage.
It also outlines a plan to exit coal, with Oak Creek Units 5-6 retired as of May 31, 2024, and coal used only as backup fuel by end of 2030. Pending Wisconsin rate reviews propose electric and natural gas revenue increases for 2025 and 2026, with a commission order expected in Q4 2024. Illinois regulatory developments include an ICC order to pause Peoples Gas Safety Modernization Program spending and a May 30, 2024 order restoring $28.5 millionb of costs, with the company planning to appeal.
02—Key points
Key Highlights
- 2024 EPS guidance of $4.80-$4.90; the company states it has exceeded EPS guidance every year for 20 years.
- 2024-2028 capital plan totaling $23.7 billion, described as the largest five-year plan in company history, with projected compound annual EPS growth of 6.5% to 7.0%.
- Dividend raised 7.0% in January to an annual rate of $3.34 per share, the 21st consecutive year of higher dividends.
- Plans to build and own 3,800 MW of renewable generation with $7.0 billion of announced regulated renewable projects in the 2024-2028 plan.
- Coal exit planned: Oak Creek Units 5-6 (528 MW) retired May 31, 2024; Oak Creek Units 7-8 and Columbia Units 1-2 retirements scheduled, with full coal exit by end of 2032.
- Wisconsin rate reviews filed in April 2024 propose 2025 revenue increases, with a commission decision expected in Q4 2024 for rates effective January 1, 2025.
- Illinois ICC ordered Peoples Gas to pause Safety Modernization Program spending and ordered $28.5 million of costs restored on May 30, 2024; the company will appeal.
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
The company filed under Item 7.01 (Regulation FD Disclosure) to furnish, as Exhibit 99.1, the presentation slides representatives will use in upcoming meetings with investors.
What is WEC Energy Group's 2024 earnings guidance?
The presentation shows 2024 guidance of $4.80-$4.90 per share, with the company noting that its 2024 guidance midpoint of $4.85 per share is used for estimates.
How much does WEC plan to invest from 2024 to 2028?
The company projects a 2024-2028 capital plan of $23.7 billion, which it describes as its largest five-year plan in company history, and expects its average asset base to grow from $29.4 billion in 2023 to $43.4 billion in 2028.
What regulatory risks does the presentation identify?
The presentation notes the Illinois Commerce Commission ordered a pause in Peoples Gas Safety Modernization Program spending and opened a docket on the future of gas, with completion expected in 2025. It also cites pending Wisconsin rate reviews with a decision expected in Q4 2024, and states the company will appeal the ICC decisions in court.
What is the company's dividend outlook?
In January 2024, the company raised its dividend by 7.0% to a new annual rate of $3.34 per share, the 21st consecutive year of dividend increases, and the presentation describes its dividend growth as top decile in the industry.
04—Continue