The company's capital plan aims for net carbon neutral electric generation by 2050, with expected investments of approximately $9.1 billion from 2025-2029 in regulated renewable energy in Wisconsin. This includes 2,900 MWs of utility-scale solar, 900 MWs of wind, and 565 MWs of battery storage, alongside the retirement of older fossil-fueled generation.

WECI completed the acquisition of a 90% ownership interest in Hardin III, a 250 MW solar generating facility in Ohio, for $406.1 million in February 2025. This acquisition, along with an additional 10% ownership interest in Samson I in January 2024, demonstrates a clear strategy to expand the non-utility energy infrastructure segment's renewable asset base.

In Q3 2025, management decided to reconsider near-term CO2 emission reduction goals due to tightened energy supply requirements in the Midwest power market and the need to ensure safe, reliable, and affordable energy for customers. While the long-term 2050 net carbon neutral goal remains, this indicates a pragmatic adjustment to immediate market realities.

Management effectively secured and implemented Wisconsin rate orders, effective January 1, 2025, which significantly contributed to a $50.3 million increase in net income for the Wisconsin segment in Q2 2025. This demonstrates strong regulatory management and ability to secure favorable rate adjustments.

The company is making progress on its Advanced Metering Infrastructure (AMI) program, replacing aging equipment and integrating smart meters for enhanced operational efficiency and outage management. A multiyear effort is also underway to standardize digital customer service across all utilities, reflecting a commitment to operational and customer service improvements.

The ICC disallowed $236.2 million of capital costs for PGL and NSG and ordered PGL to pause spending on natural gas delivery system upgrades in November 2023. Additionally, the ICC denied recovery of $116.0 million in capital investments in current rates, leading to a $12.5 million decrease in net income for the Illinois segment YTD Q2 2025 and indicating challenges in regulatory cost recovery.

Increased AD/CVD duties on solar panels from Southeast Asian countries, effective May 2025, have already impacted the cost and availability of solar panels. New petitions filed in July 2025 for investigations into alleged illegal trade practices by manufacturers in Laos, Indonesia, and India could further strain the solar panel industry, potentially affecting project costs and timelines.

The EPA's announcement of a large-scale deregulatory effort in March 2025, including a proposed repeal of the 2024 MATS Final Action and co-proposals for the GHG Power Plant Rule, introduces considerable uncertainty. Ongoing litigation regarding the Good Neighbor Rule, the 2024 Supplemental ELG Rule, and the Coal Combustion Residuals Rule could alter compliance plans and costs, posing a material risk to operations.

PGL's QIP reconciliations from 2017 through 2023 are still pending, with ICC staff recommending significant disallowances in the 2017 proceeding. The aggregate capital costs under the rider total approximately $2.9 billion as of June 30, 2025, and there is no assurance that all these costs will be recoverable, which could have a material adverse impact on results of operations.

The company is investing approximately $9.1 billion from 2025-2029 in regulated renewable energy, including 2,900 MWs of solar, 900 MWs of wind, and 565 MWs of battery storage. These investments, along with the retirement of fossil-fueled generation, position WEC for a cleaner energy future and strengthen its competitive standing in a decarbonizing industry.

WE filed an application with the PSCW in March 2025 to implement Very Large Customer (VLC) and Bespoke Resources Tariffs. These tariffs are designed to provide reliable power to new large customers, such as data centers, while ensuring they directly pay for associated costs, preventing cost shifting to existing residential or business customers and potentially attracting significant new load.

The ICC's order for PGL to pause spending on natural gas delivery system upgrades and the disallowance of $236.2 million in capital costs could hinder PGL's ability to maintain and upgrade its infrastructure. This regulatory environment, coupled with Chicago's proposed Clean and Affordable Buildings Ordinance (CABO), could negatively impact future natural gas investment opportunities and competitive position.

The company is making progress on its Advanced Metering Infrastructure (AMI) program, which involves replacing aging meter-reading equipment with smart meters, communication networks, and data management systems. This integrated system is expected to reduce manual effort for disconnects/reconnects and enhance outage management capabilities, improving overall operational efficiency.

Total operating expenses increased by $197.4 million in Q2 2025 and $542.6 million YTD Q2 2025, primarily due to higher depreciation and amortization, transmission expenses, and electric and natural gas distribution costs. These increases are largely driven by assets being placed into service as part of the capital plan and higher maintenance costs to support distribution systems.

The PSCW verbally approved WE's request to construct an LNG facility with a storage capacity of two Bcf on the OCPP site, with an estimated cost of $456 million and completion in 2027. This project is expected to reduce the likelihood of constraints on the natural gas distribution system during peak winter demand, enhancing reliability and operational stability.

In December 2023, the company initiated a pilot program with Electric Power Research Institute and CMBlu Energy to test an organic solid flow battery for long-duration energy storage at its VAPP facility. This initiative demonstrates an investment in evaluating new technologies to enhance grid reliability and efficiency beyond traditional lithium-ion solutions.

A multiyear effort is underway to implement a standardized, seamless approach to digital customer service, migrating all utilities to a common platform for customer-facing self-service options. This digital transformation is expected to reduce costs, provide greater flexibility, and enhance the consistent delivery of exceptional service to customers.

The company acknowledges risks associated with developing and implementing AI, including data privacy concerns, potential legal liability, and new or enhanced governmental or regulatory scrutiny. The ability to meet expectations or requirements related to AI technology adoption and implementation is cited as a potential complication, highlighting the need for careful risk management.

The Board of Directors increased the quarterly cash dividend by $0.0575 per share (6.9%) effective with the March 2025 dividend payment, bringing the annual dividend to $3.57 per share. This action signals management's confidence in the company's sustained financial performance and future cash flow generation.

The company plans to invest approximately $9.1 billion from 2025-2029 in regulated renewable energy projects in Wisconsin, including utility-scale solar, wind, and battery storage. This substantial capital allocation underscores a strategic shift towards clean energy and a commitment to modernizing the generation fleet, with total regulated utility capital expenditures projected at $24.4 billion over the same period.

Interest expense at the corporate and other segment increased by $32.3 million for the six months ended June 30, 2025, primarily due to long-term debt issuances in June 2024, December 2024, and June 2025, including $900.0 million of 3.375% Convertible Senior Notes issued in June 2025. This indicates a higher cost of capital, partially offset by lower short-term debt balances and rates.

WEC Energy Group reaffirms its long-term goal to achieve net carbon neutral electric generation by 2050, demonstrating a sustained commitment to environmental stewardship. While near-term CO2 emission reduction goals were reconsidered in Q3 2025 due to energy supply needs, the overarching decarbonization strategy, including eliminating coal as an energy source by 2032, remains intact.

The capital plan includes substantial investments in zero-carbon-emitting renewables, such as 2,900 MWs of solar, 900 MWs of wind, and 565 MWs of battery storage from 2025-2029. This aggressive shift away from fossil fuels, coupled with co-firing natural gas at coal units, underscores concrete actions toward a sustainable energy future.

In Q3 2025, the company decided to reassess its previous, standalone goal related to methane emissions from natural gas distribution. This decision was influenced by significant uncertainty surrounding the market for renewable thermal credits and a desire to focus on long-term, enterprise-wide GHG emissions reduction, indicating a strategic re-evaluation of specific environmental targets.

The Wisconsin segment saw an $84.1 million increase in margins from higher retail sales volumes for the six months ended June 30, 2025, compared to 2024. This was driven by colder weather, with heating degree days in Milwaukee and Green Bay areas being 28.9% and 16.2% colder, respectively, positively impacting demand for electric and natural gas.

WE filed an application with the PSCW in March 2025 for a Very Large Customer (VLC) Tariff and a Bespoke Resources Tariff. These tariffs are designed to serve new customers using 500 MWs or more, such as large data centers, by providing reliable power and ensuring direct cost recovery, reflecting adaptation to evolving industrial demand trends.

The company continues to monitor global economic impacts from regional conflicts and changes to U.S. and foreign trade policies, including tariffs on solar panel imports. These factors contribute to risks of delays, shortages, and increased costs of equipment and materials, which could materially affect business operations and the execution of capital projects.