Wisconsin Electric Power Company Reports Strong Q1 2025 Financial Performance

Wisconsin Electric Power Company (WEPCo) reported a significant increase in financial performance for the first quarter of 2025, with operating revenues reaching $1.179 billion, up from $1.039 billion in the same period last year. The company's net income attributed to common shareholders also saw a notable rise, climbing to $196.1 million compared to $134.0 million in the first quarter of 2024. This increase in profitability was primarily driven by higher retail sales volumes and the impact of a rate order approved by the Public Service Commission of Wisconsin (PSCW), effective January 1, 2025.

Operating expenses for the quarter totaled $833.5 million, an increase from $764.2 million in the prior year. The cost of sales rose to $399.6 million, up from $352.2 million, while other operation and maintenance expenses increased to $252.1 million from $241.6 million. Despite these rising costs, the operating income improved to $345.6 million, compared to $274.6 million in the previous year. The company also reported a decrease in other income, net, which fell to $10.8 million from $16.3 million, and a slight increase in interest expense to $124.7 million from $120.8 million.

In terms of operational developments, WEPCo serves approximately 1.2 million electric customers and 0.5 million natural gas customers. The company has been actively expanding its renewable energy portfolio, with significant investments planned in solar and natural gas generation. Notably, WEPCo has received PSCW approval for several renewable energy projects, including the construction of utility-scale solar facilities and battery storage systems. The company is also working on enhancing its natural gas distribution systems to improve reliability and reduce methane emissions, with a target to achieve net-zero methane emissions by 2030.

Looking ahead, WEPCo's capital plan includes an estimated $9.1 billion investment in regulated renewable energy from 2025 to 2029, focusing on the construction of solar, wind, and natural gas facilities. The company anticipates that these investments will not only help meet regulatory compliance but also support its long-term goal of reducing carbon emissions by 60% by the end of 2025 and 80% by 2030, relative to a 2005 baseline. The company remains committed to maintaining financial discipline and ensuring adequate liquidity to support its ongoing operations and capital projects.