Wisconsin Electric Power Company Reports $513.2M Net Income, Pursues Renewable Energy Transition

Wisconsin Electric Power Company (WE) reported a net income of $513.2 million for the fiscal year ending December 31, 2024, marking an increase of 6.8% from $480.6 million in 2023. Operating revenues for the year totaled $3.98 billion, a decrease from $4.05 billion in the previous year. The decline in revenues was attributed to lower natural gas utility revenues, which fell to $443.7 million from $491.5 million in 2023, reflecting a broader trend of reduced energy consumption amid fluctuating market conditions. The company's operating expenses also decreased, primarily due to a significant reduction in the cost of sales, which dropped to $1.30 billion from $1.45 billion in 2023.

In terms of strategic developments, WE has been actively pursuing a transition towards renewable energy sources. The company completed the construction of the solar portion of the Paris project in December 2024, which will contribute 150 MW of solar generation and 82 MW of battery storage once fully operational in 2025. Additionally, WE has filed requests with the Public Service Commission of Wisconsin (PSCW) to acquire and construct several new renewable energy projects, including utility-scale solar and wind facilities, with a total expected capacity of 756 MW and 214 MW of battery storage. These initiatives are part of WE's broader strategy to achieve a 60% reduction in carbon emissions by 2025 and an 80% reduction by 2030, with a long-term goal of net carbon neutrality by 2050.

Operationally, WE's customer base has grown, with total electric customers increasing to 1.175 million in 2024 from 1.166 million in 2023. The company reported a 0.3% increase in weather-normalized retail electric sales, with expectations for a further 0.8% increase in 2025. The electric generation mix is also evolving, with coal accounting for 28.9% of the supply in 2024, down from 30.6% in 2023, while renewable sources increased to 5.1% from 4.0% in the same period. The company continues to invest in its infrastructure, with capital expenditures rising to $1.44 billion in 2024, up from $1.09 billion in 2023.

Looking ahead, WE anticipates continued growth in both customer numbers and energy demand, supported by its ongoing investments in renewable energy and infrastructure improvements. The company has filed for rate increases to support these initiatives, with the PSCW approving base rate increases effective January 1, 2025. However, the company also faces challenges, including regulatory scrutiny and market volatility, which could impact its financial performance and operational strategies. Overall, WE remains committed to enhancing its service offerings while transitioning to a more sustainable energy portfolio.