The company's own description of what it does — segments, products, customers, and how it makes money — from its annual 10-K filing (Item 1).
The text below is reproduced verbatim from WEC’s SEC filing. See also WEC’s supply chain and financial statements.
ITEM 1. BUSINESS
ITEM 1. BUSINESS A. INTRODUCTION In this report, when we refer to "WEC Energy Group," "the Company," "us," "we," "our," or "ours," we are referring to WEC Energy Group, Inc. and all of its subsidiaries. The term "utility" refers to the regulated activities of the electric and natural gas utility companies, while the term "non-utility" refers to the activities of the electric and natural gas companies that are not regulated, as well as We Power and Bluewater. The term "nonregulated" refers to activities at WECI, which holds interests in several renewable generating facilities, WEC Energy Group holding company, the Integrys holding company, the PELLC holding company, Wispark, Wisvest, WECC, WBS, and PDL. References to "Notes" are to the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. For more information about our business operations, including financial and geographic information, see Note 22, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments. WEC Energy Group, Inc. We were incorporated in the state of Wisconsin in 1981 and became a diversified holding company in 1986. We maintain our principal executive offices in Milwaukee, Wisconsin. On June 29, 2015, we acquired 100% of the outstanding common shares of Integrys and changed our name to WEC Energy Group, Inc. Our wholly owned subsidiaries provide or invest in regulated natural gas and electricity, and renewable energy, as well as nonregulated renewable energy. We have an approximately 60% equity interest in ATC (an electric transmission company operating in Illinois, Michigan, Minnesota, and Wisconsin). At December 31, 2025, we had six reportable segments, which are discussed below. For additional information about our reportable segments, see Note 22, Segment Information. Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports are made available on our website, www.wecenergygroup.com, free of charge, as soon as reasonably practicable after they are filed with or furnished to the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at www.sec.gov. Investors should note that WEC Energy Group announces material financial information in SEC filings, press releases, and public conference calls. In accordance with SEC guidelines, WEC Energy Group also uses the "Investors" tab on its website, www.wecenergygroup.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed material information. The information on WEC Energy Group's website is not part of this document. B. UTILITY ENERGY OPERATIONS Wisconsin Segment The Wisconsin segment includes the electric and natural gas utility operations of WE, WPS, WG, and UMERC. Electric Utility Operations Our electric utility operations include the operations of WE, WPS, and UMERC. • WE generates and distributes electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin. • WPS generates and distributes electric energy to customers located in northeastern and central Wisconsin. 2025 Form 10-K 4 WEC Energy Group, Inc. Table of Contents • UMERC generates and distributes electric energy to customers, including one iron ore mine owned by Tilden, located in the Upper Peninsula of Michigan. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues. Electric Sales Our electric energy deliveries included supply and distribution sales to retail, wholesale, and resale customers, and distribution sales to those customers who switched to an alternative electric supplier in the Upper Peninsula of Michigan. In 2025, retail revenues accounted for 92.3% of total electric operating revenues, wholesale revenues accounted for 1.9% of total electric operating revenues, and resale revenues accounted for 4.8% of total electric operating revenues. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders for information on MWh sales by customer class. Our electric utilities are authorized to provide retail electric service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities, and in certain territories in the state of Michigan pursuant to franchises granted by municipalities. We provide wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers. The majority of our sales for resale are conducted within an energy market operated by MISO at market rates based on the availability of our generation and market demand. Retail fuel costs are reduced by the amount that revenue exceeds the cost of sales derived from these opportunity sales. Our electric utilities buy and sell electric power by participating in the MISO Energy Markets. The cost of our individual generation offered into the MISO Energy Markets compared to our competitors affects how often our generating units are dispatched and whether we buy or sell power. For more information on the MISO Energy Markets, see E. Regulation. Steam Sales WE has a steam utility that generates, distributes, and sells steam supplied by the VAPP to customers in metropolitan Milwaukee, Wisconsin. Steam is used by customers for processing, space heating, domestic hot water, and humidification. Annual sales of steam fluctuate from year to year based on system growth and variations in weather conditions. Electric Sales Forecast Our service territory experienced higher weather-normalized retail electric sales in 2025, compared with 2024. We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to increase 1.6% for 2026, compared with 2025, assuming normal weather. Excluding the very large data center customers, we currently forecast sales volumes to be relatively flat for 2026, assuming normal weather. 2025 Form 10-K 5 WEC Energy Group, Inc. Table of Contents Customers Year Ended December 31 (in thousands) 2025 2024 2023 Electric customers – end of year Residential 1,512.2 1,499.4 1,487.9 Small commercial and industrial 181.9 180.8 179.0 Large commercial and industrial 0.8 0.8 0.8 Wholesale and other 1.7 1.7 1.6 Total electric customers – end of year 1,696.6 1,682.7 1,669.3 Steam customers – end of year 0.4 0.4 0.4 Electric Commercial and Industrial Retail Customers We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, paper, governmental, food manufacturing, and health services. Electric Generation and Supply Mix Our electric supply strategy is to provide our customers with energy from a diverse generation portfolio that balances a stable, reliable, and affordable supply of electricity with environmental stewardship. Through our participation in the MISO Energy Markets, we supply a significant amount of electricity to our customers from generation that we own. We supplement our internally generated power supply with long-term PPAs, including the Point Beach PPA discussed under the heading "Power Purchase Commitments," and through spot purchases in the MISO Energy Markets. We also sell excess power supply into the MISO Energy Markets when it is economical, which reduces net fuel costs by offsetting costs of purchased power. On a real time basis, the MISO Energy Market continuously evaluates system load requirements and dispatches the lowest-cost generation resources, while respecting any limitations on the transmission system. The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for 2026: Estimate (1) Actual 2026 2025 2024 2023 Company-owned generation: Coal 30.7 % 30.5 % 29.4 % 29.0 % Natural gas: Combined cycle 27.7 % 24.1 % 27.2 % 28.7 % Steam turbine 0.5 % 0.8 % 1.0 % 0.9 % Natural gas/oil peaking units 5.0 % 7.9 % 7.2 % 5.5 % Renewables (2) 9.1 % 8.4 % 6.5 % 5.5 % Total company-owned generation 73.0 % 71.7 % 71.3 % 69.6 % Power purchase contracts: Nuclear 19.2 % 19.8 % 20.3 % 20.1 % Renewables (3) 1.6 % 1.5 % 1.9 % 2.0 % Other — % 0.2 % — % 0.1 % Total power purchase contracts 20.8 % 21.5 % 22.2 % 22.2 % Purchased power from MISO 6.2 % 6.8 % 6.5 % 8.2 % Total purchased power 27.0 % 28.3 % 28.7 % 30.4 % Total electric utility supply 100.0 % 100.0 % 100.0 % 100.0 % (1) The values included in the estimate assume a natural gas price based on the December 2025 NYMEX. (2) Includes hydroelectric, biomass, solar, BESS, and wind generation. (3) Includes hydroelectric, wind, and customer-owned renewable generation. 2025 Form 10-K 6 WEC Energy Group, Inc. Table of Contents Electric Generation Facilities Our generation portfolio is a mix of energy resources having different operating characteristics and fuel sources. We own 8,375 MWs of generation capacity, including wholly owned and jointly owned facilities. We Power's generating units are also included in the generation capacity. Our generation facilities include natural gas-fired plants, coal-fired plants, renewable generation, and BESSs. Certain of our natural gas-fired generation units have the ability to burn oil if natural gas is not available due to delivery constraints. For more information about our facilities, see Item 2. Properties. We are engaged in discussions with a small number of customers to provide power to large-scale data centers being constructed in our service territories. We anticipate electric demand growth in the years ahead from these VLCs. Subject to pending regulatory approvals from the PSCW as discussed below, WE is planning to make significant infrastructure investments in new natural gas-fired plants, wind, solar and battery projects, and other generation and distribution assets to power and serve these large-scale data centers and other projects. We are working closely with the new data center customers to provide bespoke resources, which are generation resources assigned to the VLCs that match their growing demand in order to minimize the impact on our other retail customers. Supporting Economic Growth Within Our Communities Our capital plan reflects the planned retirement of our older, fossil-fueled generation, which we expect to replace with natural gas-fired generation and zero-carbon-emitting renewables. These retirements are intended to address compliance with EPA regulations established under the CAA, as well as contribute to meeting our goal to reduce CO 2 emissions from our electric generation. When taken together, the retirements and new investments in natural gas generation and renewables discussed in more detail below should better balance our supply with our demand, while helping to address compliance and maintaining reliable, affordable energy for our customers. As described in the preceding section, we are planning to make significant investments in generation and distribution assets for the future demands of VLCs. Environmental Goal Our long-term goal is to achieve net carbon neutral electric generation by the end of 2050. We expect to achieve this goal by continuing to make operating refinements, retiring less efficient generating units, and executing our capital plan. We expect to use coal only as a backup fuel by the end of 2030 and to be in a position to eliminate coal as an energy source by the end of 2032. As of the end of 2025, our electric generation fleet has achieved a 53% reduction in carbon emissions from the 2005 baseline. As part of our path toward this goal, we have started implementing co-firing with natural gas at the ERGS coal-fired units and at Weston Unit 4. Additionally, we have retired nearly 2,500 MWs of fossil-fueled generation since the beginning of 2018, which includes the 2024 retirements of OCPP Units 5 and 6, the 2019 retirement of the PIPP, and the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating unit. See Note 6, Regulatory Assets and Liabilities, for more information related to certain of these power plant retirements. We expect to retire approximately 900 MWs of additional coal-fired generation by the end of 2031, which includes the planned retirements of OCPP Units 7 and 8 and Weston Unit 3. See Note 7, Property, Plant, and Equipment, for more information. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments for more information on our capital plan. Also see Item 1A. Risk Factors - Risks Related to Legislation and Regulation - Our operations, capital expenditures, and financial results may be affected by the impact of GHG legislation, regulation, and our emission reduction goal. Renewable Generation Our electric utilities meet a portion of their electric generation supply with various renewable energy resources, including wind, solar, hydroelectric, and biomass. This helps our electric utilities work towards our goal of reducing carbon emissions while also maintaining compliance with renewable energy legislation. These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators. 2025 Form 10-K 7 WEC Energy Group, Inc. Table of Contents Wind Our utilities continue to invest in and upgrade their wind-powered generation systems to enhance reliability. We have received approval from the PSCW to acquire and construct 160 MWs of additional wind-powered generation. Our subsidiaries will jointly own these generation facilities with an unaffiliated entity. See Note 8, Jointly-Owned Utility Facilities, for more information. Solar and Battery Storage In June 2025, the construction of the battery portion of Paris located in Kenosha County, Wisconsin was completed, and the facility became commercially operational. The solar portion of Paris was commercially operational in December 2024. Paris is owned by WE, WPS, and an unaffiliated entity, with WE and WPS collectively owning 180 MWs of solar generation. WE and WPS also collectively own 99 MWs of battery storage associated with this project. In March 2025, the construction of the solar portion of Darien located in Rock and Walworth counties, Wisconsin was completed, and the facility became commercially operational. Darien is owned by WE, WPS, and an unaffiliated entity, with WE and WPS collectively owning 225 MWs of solar generation. WE and WPS will collectively own 68 MWs of battery storage associated with this project, with construction expected to be completed in 2027. As part of our commitment to invest in additional zero-carbon generation within our Wisconsin segment, we have received approval from the PSCW to acquire and construct 955 MWs of additional solar-powered generation and 411 MWs of battery storage. See Note 8, Jointly-Owned Utility Facilities, for more information. We have also filed requests with the PSCW to acquire and construct 1,333 MWs of solar-powered generation and 212 MWs of battery storage. Thermal Generation As part of our commitment to invest in additional thermal generation within our Wisconsin segment, we have received approval from the PSCW to acquire and construct 1,228 MWs of additional natural gas-fired generation. We have also filed requests with the PSCW to acquire and construct 1,660 MWs of additional natural gas-fired generation. Some of the generation projects pending approval are for bespoke resources to serve VLCs. See Note 26, Regulatory Environment, for more information on bespoke resources and the proposed VLC tariff. Electric System Reliability The PSCW requires us to maintain a planning reserve margin above our projected annual peak demand forecast to help ensure reliability of electric service to our customers. These planning reserve requirements are consistent with the MISO calculated planning reserve margin. In 2008, the PSCW established a 14.5% reserve margin requirement for long-term planning (planning years two through ten). For short-term planning (planning year one), the PSCW requires Wisconsin utilities to follow the planning reserve margin established by MISO. MISO implemented seasonal requirements effective June 1, 2023. The installed capacity reserve margins for the planning year June 1, 2025 through May 31, 2026 are as follows: 15.7% summer (June – August); 25.3% fall (September – November); 38.6% winter (December – February); and 38.8% spring (March – May). MISO's short-term reserve margin requirements experience year-to-year and season-to-season fluctuations, primarily due to changes in the generation resource mix and average forced outage rate of generation within the MISO footprint. Michigan legislation requires all electric providers to annually demonstrate to the MPSC that they have adequate resources to serve the anticipated needs of their customers for a minimum of four consecutive planning years beginning in the upcoming planning year June 1, 2026, through May 31, 2027. The MPSC has established future planning reserve margin requirements based on the same study conducted by MISO that determines the short-term reserve margin requirements. In both our Wisconsin and Michigan jurisdictions, we believe that we have adequate capacity through company-owned generation units and power purchase contracts to meet the MISO calculated planning reserve margin during the current planning year. We also fully anticipate that we will have adequate capacity to meet the planning reserve margin requirements for the upcoming planning year in both jurisdictions. 2025 Form 10-K 8 WEC Energy Group, Inc. Table of Contents Fuel and Purchased Power Costs Our retail electric rates in Wisconsin are established by the PSCW and include base amounts for fuel and purchased power costs. The electric fuel rules set by the PSCW generally allow us to defer, for subsequent rate recovery or refund, under- or over-collections of actual fuel and purchased power costs beyond a 2% price variance from the costs included in the rates charged to customers. Prudently incurred fuel and purchased power costs are recovered dollar-for-dollar from our Michigan retail electric customers. For more information about the fuel rules, see E. Regulation. Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31: 2025 2024 2023 Coal $ 27.54 $ 25.38 $ 25.80 Natural gas combined cycle 26.49 20.52 30.41 Natural gas/oil peaking units 56.82 42.41 56.41 Biomass 79.32 81.33 87.73 Purchased power 63.06 57.39 53.90 WE and WPS purchase coal under long-term contracts, which helps with price stability. Coal and associated transportation services are exposed to volatility in pricing due to changing domestic and world-wide demand for coal and diesel fuel. To mitigate against this volatility risk, WE and WPS have PSCW approval for a hedging program. This program allows them to hedge, over a 60-month period, up to 75% of their potential risks related to rail transportation fuel surcharge exposure. The results of this hedging program, when used, are reflected in the average costs of fuel and purchased power. We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants. We have firm and interruptible transportation, as well as balancing and storage agreements, intended to support our plants' variable usage. WE and WPS also have PSCW approval for a hedging program to mitigate against volatility related to natural gas price risk. This program allows them to hedge, over a 60-month period, up to 75% of their estimated natural gas use for electric generation. The results of this hedging program are reflected in the average costs of natural gas. Coal Supply We diversify the coal supply for our electric generating facilities and jointly-owned plants by purchasing coal from several mines in Wyoming and Pennsylvania, as well as from various other states. For 2026, 51% of our total projected coal requirements of 8.9 million tons are contracted under fixed-price contracts. See Note 24, Commitments and Contingencies, for more information on amounts of coal purchases and coal deliveries under contract. The annual tonnage amounts contracted for the next three years are as follows. (in thousands) Annual Tonnage 2026 4,542 2027 1,125 2028 — Coal Deliveries All of our coal requirements are expected to be shipped by unit trains that we own or lease under existing transportation agreements. The unit trains transport the coal for electric generating facilities from mines in Wyoming and Pennsylvania. Additional small volume agreements may also be used to supplement the normal coal supply for our facilities. For additional information concerning risks related to coal supply chain disruptions, see the risk factor below. • Item 1A. Risk Factors – Risks Related to Economic and Market Volatility – We may not be able to obtain an adequate supply of coal, which could limit our ability to operate our coal-fired facilities. 2025 Form 10-K 9 WEC Energy Group, Inc. Table of Contents Power Purchase Commitments We enter into short- and long-term power purchase commitments to meet a portion of our anticipated electric energy supply needs. Excluding planning capacity purchases, our power purchase commitments with unaffiliated parties consist of 1,133 MWs per year for 2026 through 2029 and 1,033 MWs in 2030. This amount includes 1,033 MWs per year related to a long-term PPA for electricity generated by Point Beach. If necessary, we purchase planning capacity from the MISO annual auction to ensure that we maintain our compliance with planning reserve requirements as established by the PSCW, MPSC, and MISO. Natural Gas Utility Operations WE, WPS, and WG are authorized to provide retail natural gas distribution service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities. Our Wisconsin natural gas utilities operate throughout the state of Wisconsin, including the City of Milwaukee and surrounding areas, northeastern Wisconsin, and in large areas of both central and western Wisconsin. In addition, UMERC is authorized to provide retail natural gas distribution service in designated territories in the Upper Peninsula of Michigan. Our Wisconsin segment natural gas utilities provide service to residential and commercial and industrial customers. In addition, our Wisconsin segment offers natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, food manufacturing, governmental, restaurants, and paper. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class in Wisconsin and the Upper Peninsula of Michigan. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues. Natural Gas Sales Forecast Our combined Wisconsin service territories experienced slightly lower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 2025 as compared to 2024. We currently forecast retail natural gas delivery volumes to decrease slightly in 2026 as compared to 2025, assuming normal weather. Customers Year Ended December 31 (in thousands) 2025 2024 2023 Customers – end of year Residential 1,404.9 1,391.7 1,381.7 Commercial and industrial 136.6 135.7 134.8 Transportation 3.5 3.5 3.5 Total customers 1,545.0 1,530.9 1,520.0 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns. For more information on our natural gas utility supply and transportation contracts, see Note 24, Commitments and Contingencies. Pipeline Capacity and Storage We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas. This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio. 2025 Form 10-K 10 WEC Energy Group, Inc. Table of Contents Due to variations in natural gas usage in Wisconsin, our Wisconsin natural gas utilities have also contracted for substantial underground storage capacity, primarily in Michigan. WE, WPS, and WG have entered into long-term service agreements for approximately 99% of a wholly owned subsidiary of Bluewater's natural gas storage. Bluewater owns natural gas storage facilities in Michigan and provides approximately one-third of the current storage needs for our Wisconsin natural gas utilities. We target storage inventory levels at approximately 40% of forecasted demand for November through March. Diversity of natural gas supply enables us to manage significant changes in demand and to optimize our overall natural gas supply and capacity costs. We generally inject natural gas into storage during the spring and summer months and withdraw it in the winter months. We contract with interstate pipeline companies, as well as other service providers, to purchase firm transportation and storage services under varied-length long-term contracts. We believe that having diverse capacity and storage benefits our customers. Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Our Wisconsin segment natural gas utilities' forecasted design peak-day throughput is 39.9 million therms for the 2025 through 2026 heating season. Our Wisconsin segment natural gas utilities' peak daily send-out during 2025 was 24.2 million therms on January 20, 2025. Peak or near-peak demand generally occurs only a few times each year. Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRMs. For information on the GCRMs, see Note 1(d), Operating Revenues. To ensure a reliable supply of natural gas during peak winter conditions, we have LNG facilities located within our distribution system. These facilities are typically utilized during extreme demand conditions to ensure reliable supply to our customers. WE and WG each have LNG facilities, which together provide approximately two Bcf of natural gas supply. The PSCW approved WE's request to construct an additional LNG facility with a storage capacity of two Bcf. The construction of additional LNG facilities in Wisconsin has been proposed as part of the 2026-2030 capital plan and would provide another approximately four Bcf of natural gas supply. The use of LNG allows us to meet anticipated peak demand without requiring the construction of additional interstate pipeline capacity. Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets. Hedging Natural Gas Supply Prices As part of their hedging programs, our Wisconsin utilities further reduce their supply cost volatility through the use of a mix of financial instruments, such as NYMEX-based natural gas options and futures contracts. WE, WPS, and WG have PSCW approval to hedge up to 60% of planned winter demand and up to 15% of planned summer demand. These approvals allow these companies to pass 100% of the hedging costs (premiums, brokerage fees, and losses) and proceeds (gains) to customers through their respective GCRMs. Illinois Segment Our Illinois segment includes the natural gas utility operations of PGL and NSG. Our customers are located in Chicago and the northern suburbs of Chicago. PGL and NSG provide service to residential and commercial and industrial customers. In addition, PGL and NSG offer natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, non-profits, education, restaurants, and wholesale distributors. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Illinois Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class. 2025 Form 10-K 11 WEC Energy Group, Inc. Table of Contents Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues. Customers Year Ended December 31 (in thousands) 2025 2024 2023 Customers – end of year Residential 937.9 929.0 922.9 Commercial and industrial 70.9 71.0 71.3 Transportation 55.2 59.9 62.0 Total customers 1,064.0 1,059.9 1,056.2 Natural Gas Supply, Pipeline Capacity, and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns. For more information on our natural gas utility supply and transportation contracts, see Note 24, Commitments and Contingencies. Pipeline Capacity and Storage We have long-term firm capacity contracts with interstate pipelines that access supply from a variety of natural gas producing areas. This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio. We own a 38.8 Bcf storage field (Manlove Field in central Illinois) and contract with various other underground storage service providers for additional storage services. Storage allows us to manage significant changes in daily natural gas demand and to purchase steady levels of natural gas on a year-round basis, which provides a hedge against supply cost volatility. We also own a natural gas pipeline system that connects Manlove Field to Chicago and nine major interstate pipelines. These assets are directed primarily to serving rate-regulated retail customers and are included in our regulatory rate base. We also use a portion of these company-owned storage and pipeline assets as a natural gas hub, which consists of providing transportation and storage services in interstate commerce to our wholesale customers. Customers deliver natural gas to us for storage through an injection into the storage reservoir, and we return the natural gas to the customers under an agreed schedule through a withdrawal from the storage reservoir. Title to the natural gas does not transfer to us. We recognize service fees associated with the natural gas hub services provided to wholesale customers. These service fees reduce the cost of natural gas and services charged to retail customers in rates. Combined with our storage capability, management believes that the volume of natural gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Our Illinois utilities' forecasted design peak-day throughput is 25.1 million therms for the 2025 through 2026 heating season. Our Illinois utilities' peak daily send-out during 2025 was 19.4 million therms on January 21, 2025. Peak or near-peak demand generally occurs only a few times each year. Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRMs. For information on the GCRMs, see Note 1(d), Operating Revenues. Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, storage, peak-shaving facilities, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets. 2025 Form 10-K 12 WEC Energy Group, Inc. Table of Contents Hedging Natural Gas Supply Prices As part of their hedging programs, our Illinois utilities further reduce their supply cost volatility through the use of a mix of financial instruments, such as NYMEX-based natural gas options and futures contracts. Their hedging programs are reviewed by the ICC as part of the annual purchased gas adjustment reconciliation. They hedge between 25% and 50% of planned natural gas purchases, with a target of 37.5%. Natural Gas Pipe Retirement Program In February 2025, the ICC issued an order setting expectations for PGL's prospective operations. The ICC directed us to focus on retiring all cast and ductile iron pipe that has a diameter under 36 inches by January 1, 2035. The ICC also indicated that failure to comply with this directive could subject us to civil penalties under Illinois statute. PGL is working to retire this cast and ductile iron pipe through its PRP. Costs incurred under the PRP will be evaluated for prudency by the ICC in future rate cases. In addition, the program will be overseen by a safety monitor hired by the ICC. For information on regulatory proceedings related to the PRP, see Note 26, Regulatory Environment, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Illinois Proceedings. Other States Segment Our other states segment includes the natural gas utility operations of MERC and MGU and the non-utility operations of MERC related to servicing appliances for customers. MERC serves customers in various cities and communities throughout Minnesota, and MGU serves customers in southern and western Michigan. MERC and MGU provide service to residential and commercial and industrial customers. In addition, MERC and MGU offer natural gas transportation services to our customers that elect to purchase natural gas directly from a third-party supplier. Major industries served include real estate, education, restaurants, wholesale distributors, and non-profits. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Other States Segment Contribution to Net Income Attributed to Common Shareholders for information on natural gas sales volumes by customer class. Operating Revenues For information about our operating revenues disaggregated by customer class for the years ended December 31, 2025, 2024, and 2023, see Note 1(d), Operating Revenues, and Note 4, Operating Revenues. Customers Year Ended December 31 (in thousands) 2025 2024 2023 Customers – end of year Residential 387.1 383.7 379.3 Commercial and industrial 37.6 37.2 36.8 Transportation 19.4 19.4 19.5 Total customers 444.1 440.3 435.6 Natural Gas Supply, Pipeline Capacity and Storage We manage portfolios of natural gas supply contracts, storage services, and pipeline transportation services designed to meet varying customer use patterns. For more information on our natural gas utility supply and transportation contracts, see Note 24, Commitments and Contingencies. Pipeline Capacity and Storage MGU owns a 2.9 Bcf storage field (Partello in Michigan) and contracts with various other underground storage service providers for additional storage services. We contract with local distribution companies and interstate pipelines to purchase firm transportation services. We believe that having diverse capacity and storage benefits our customers. 2025 Form 10-K 13 WEC Energy Group, Inc. Table of Contents Combined with our storage capability, management believes that the volume of gas under contract is sufficient to meet our forecasted firm peak-day and seasonal demand. Forecasted design peak-day throughput for our other states utilities is 9.5 million therms for the 2025 through 2026 heating season. Our other states utilities' peak daily send-out during 2025 was 7.9 million therms on January 20, 2025. Peak or near-peak demand generally occurs only a few times each year. Natural gas pipeline capacity and storage and natural gas supplies under contract can be resold in secondary markets. The secondary markets facilitate utilization of capacity and supply during times when the contracted capacity and supply are in excess of utility demand. The proceeds from these transactions are passed through to customers, subject to our approved GCRMs. For information on the GCRMs, see Note 1(d), Operating Revenues. Natural Gas Supply Our natural gas supply requirements are met through a combination of fixed-price purchases, index-priced purchases, contracted and owned storage, and natural gas supply call options. We contract for fixed-term firm natural gas supply each year to meet the demand of firm system sales customers. To supplement natural gas supply and manage risk, we purchase additional natural gas supply on the monthly and daily spot markets. Hedging Natural Gas Supply Prices Our other states utilities further reduce their supply cost volatility through the use of financial instruments, such as commodity futures, swaps, and options as part of their hedging programs. MERC has MPUC approval to hedge up to 30% of planned winter demand using NYMEX financial instruments. MGU has MPSC approval to hedge up to 20% of its planned annual purchases using NYMEX financial instruments. General Seasonality Electric Utility Operations – Wisconsin Segment Our electric utility sales are impacted by seasonal factors and varying weather conditions. We sell more electricity during the summer months because of the residential cooling load. We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers. In 2025, our generating plants performed as expected during the most demanding periods of the year, and all power purchase commitments under firm contract were received. During this period, our electric utilities did not make any public appeals for conservation, and they did not interrupt or curtail service to non-firm customers who participate in load management programs. Our electric utilities did have economic interruption events; however, service to customers was not curtailed. Economic interruptions are declared during times in which the price of electricity in the regional market exceeds the cost of operating the company's peaking generation. During this time, customers taking service under these interruptible programs can choose to continue using electricity at a price based on wholesale market prices or to reduce their load. Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments Since the majority of our customers use natural gas for heating, customer use is sensitive to weather and is generally higher during the winter months. Accordingly, we are subject to some variations in earnings and working capital throughout the year as a result of changes in weather. The effect on earnings from these changes in weather are reduced by decoupling mechanisms included in the rates of PGL, NSG, and MERC. These mechanisms differ by state and allow the utilities to recover or refund the differences between actual and authorized margins for certain customer classes. Our natural gas utilities' working capital needs are met by cash generated from operations and debt (both long-term and short-term). The seasonality of natural gas revenues causes the timing of cash collections to be concentrated from January through June. A portion of the winter natural gas supply needs is typically purchased and stored from April through November. Also, planned capital spending on our natural gas distribution facilities is concentrated in April through November. Because of these timing differences, the cash flow from customers is typically supplemented with temporary increases in short-term borrowings (from external sources) during the late summer and fall. Short-term debt is typically reduced over the January through June period. 2025 Form 10-K 14 WEC Energy Group, Inc. Table of Contents Competition Electric Utility Operations – Wisconsin Segment Our electric utilities face competition from various entities and other forms of energy sources available to customers, including self-generation by customers and alternative energy sources. Our electric utilities compete with other utilities for sales to municipalities and cooperatives as well as with other utilities and marketers for wholesale electric business. Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments Our natural gas utilities also face varying degrees of competition from other entities and other forms of energy available to consumers. Many large commercial and industrial customers have the ability to switch between natural gas and alternative fuels. Electrification initiatives or mandates are being considered or proposed by local and state governments. In addition, the majority of our natural gas customers have the opportunity to choose a natural gas supplier other than us. Our natural gas utilities offer transportation services for customers that elect to purchase natural gas directly from a third-party supplier. We continue to earn distribution revenues from these transportation customers for their use of our distribution systems to transport natural gas to their facilities. As such, the loss of revenue associated with the cost of natural gas that our transportation customers purchase from third-party suppliers has little impact on our net income, as it is offset by an equal reduction to natural gas costs. For more information on electrification initiatives in certain of our Illinois service territories, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters - Chicago Decarbonization Efforts. For more information on competition in each of our service territories, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Competitive Markets. Methane Emission Reductions Natural Gas Utility Operations – Wisconsin, Illinois, and Other States Segments We continue to focus on methane emission reductions by improving and upgrading our natural gas distribution systems, and using RNG throughout our natural gas utility systems. In 2023, our Wisconsin utilities began transporting the output of local dairy farms onto their natural gas distribution systems. The RNG supplied is replacing higher-emission methane from natural gas that would have entered our pipes. We currently have contracts in place for 2.1 Bcf of RNG. C. ELECTRIC TRANSMISSION SEGMENT ATC is a regional transmission company that owns, maintains, monitors, and operates electric transmission systems in Wisconsin, Michigan, Illinois, and Minnesota. ATC is expected to provide comparable service to all customers, including WE, WPS, and UMERC, and to support effective competition in energy markets without favoring any market participant. ATC is regulated by the FERC for all rate terms and conditions of service and certain state regulatory commissions for routing and siting of transmission projects. ATC is also a transmission-owning member of MISO. MISO maintains operational control of ATC's transmission system, and WE, WPS, and UMERC are non-transmission owning members and customers of MISO. As of December 31, 2025, our ownership interest in ATC was approximately 60%. In addition, as of December 31, 2025, we owned approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. See Note 21, Investment in Transmission Affiliates, for more information. The FERC and D.C. Circuit Court of Appeals have issued orders and an opinion, respectively, related to the authorized base ROE for all MISO transmission owners, including ATC. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – American Transmission Company Allowed Return on Equity Complaints for more information. 2025 Form 10-K 15 WEC Energy Group, Inc. Table of Contents D. NON-UTILITY OPERATIONS Non-Utility Energy Infrastructure Segment The non-utility energy infrastructure segment includes We Power, which owns and leases generating facilities to WE; Bluewater, which owns underground natural gas storage facilities in Michigan; and WECI, which holds ownership interests in several renewable generating facilities. See Item 2. Properties, for more information on our non-utility energy infrastructure facilities. W.E. Power, LLC We Power, through wholly owned subsidiaries, designed and built approximately 2,500 MWs of generation in Wisconsin. This generation is made up of capacity from the two coal-fired ERGS units, ER 1 and ER 2, which were placed in service in February 2010 and January 2011, respectively, and the two natural gas-fired PWGS units, PWGS 1 and PWGS 2, which were placed in service in July 2005 and May 2008, respectively. Two unaffiliated entities collectively own approximately 17%, or approximately 211 MWs, of ER 1 and ER 2. We Power's share of the ERGS units and both PWGS units are being leased to WE under long-term leases (the ERGS units have 30-year leases that began on the in-service dates of the generating units and the PWGS units have 25-year leases that began on the in-service dates of the generating units). As part of our carbon emission reduction goal, we have started implementing co-firing with natural gas at the ERGS coal-fired units. For information on our carbon emission reduction goal, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments. Because of the significant investment necessary to construct these generating units, we constructed the plants under Wisconsin's Leased Generation Law, which allows a non-utility affiliate to construct an electric generating facility and lease it to the public utility. The law allows a public utility that has entered into a lease approved by the PSCW to recover fully in its retail electric rates that portion of any payments under the lease that the PSCW has allocated to the public utility's Wisconsin retail electric service, and all other costs that are prudently incurred in the public utility's operation and maintenance of the electric generating facility allocated to the utility's Wisconsin retail electric service. In addition, the PSCW may not modify or terminate a lease it has approved under the Leased Generation Law except as specifically provided in the lease or the PSCW's order approving the lease. This law effectively created regulatory certainty in light of the significant investment being made to construct the units. All four units were constructed under leases approved by the PSCW. We are recovering our costs of these units, including subsequent capital additions, through lease payments that are billed from We Power to WE and then recovered in WE's rates as authorized by the PSCW and the FERC. Under the lease terms, our return is calculated using a 12.7% ROE and the equity ratio is assumed to be 55% for the ERGS units and 53% for the PWGS units. Bluewater Natural Gas Holding, LLC Bluewater, located in Michigan, primarily provides natural gas storage and hub services to our Wisconsin natural gas utilities. WE, WPS, and WG have entered into long-term service agreements for approximately one-third of their combined natural gas storage needs with a wholly owned subsidiary of Bluewater. 2025 Form 10-K 16 WEC Energy Group, Inc. Table of Contents WEC Infrastructure LLC At December 31, 2025, our non-utility energy infrastructure segment included WECI's ownership interests in the renewable generating facilities reflected in the table below. Name Ownership Interest Commercial Operation Bishop Hill III 90.0% August 2018 Upstream 90.0% January 2019 Coyote Ridge 82.6% December 2019 Blooming Grove 90.0% December 2020 Tatanka Ridge 85.7% January 2021 Jayhawk 90.0% December 2021 Thunderhead 90.0% November 2022 Samson I (1) 90.0% May 2022 Sapphire Sky 90.0% February 2023 Maple Flats 90.0% November 2024 Delilah I 90.0% December 2024 Hardin III 90.0% February 2025 (1) Although Samson I was commercially operational in May 2022, WECI didn't complete the purchase of its initial 80.0% ownership interest in this solar facility until February 2023. WECI completed the acquisition of an additional 10.0% of Samson I in January 2024, bringing its ownership interest in Samson I to 90.0%. See Note 2, Acquisitions, for more information. Bishop Hill III, Coyote Ridge, Blooming Grove, Tatanka Ridge, Jayhawk, Thunderhead, Samson I, Sapphire Sky, Maple Flats, Delilah I, and Hardin III have offtake agreements with creditworthy counterparties for the sale of all of the energy they produce over periods ranging from 10 to 22 years following commercial operation. In addition, Upstream's revenue is substantially fixed over the 10-year period following commercial operation through an agreement with a creditworthy counterparty. Under the Tax Legislation, all of these investments qualify for PTCs. WECI is entitled to the tax benefits of Bishop Hill III, Upstream, Blooming Grove, Thunderhead, Samson I, Sapphire Sky, Maple Flats, Delilah I, and Hardin III in proportion to its ownership interest. WECI is entitled to 99% of the tax benefits of Coyote Ridge and Tatanka Ridge for the first 11 years following commercial operation, and is entitled to 99% of the tax benefits of Jayhawk for the first 10 years following commercial operation, after which WECI will be entitled to any tax benefits from these three facilities in proportion to its ownership interests. WECI recognizes PTCs as power is generated over a period of 10 years following commercial operation. Under the IRA transferability option, WEC Energy Group has sold substantially all of WECI's 2023 and 2024 generated PTCs to third parties. In addition, WEC Energy Group has either sold or entered into agreements to sell substantially all PTCs generated by WECI in 2025. A significant portion of WECI PTCs expected to be generated in 2026 are also under contract for sale to third parties. See Note 1(q), Income Taxes, for more information about the impact of these sales. See Note 16, Income Taxes, for more information on proceeds received related to the sale of PTCs. See Note 2, Acquisitions, for more information on the more recent renewable generating facility acquisitions. Seasonality The electricity produced and revenues generated by the wind generating facilities depend heavily on wind conditions, which are variable. Operating results for wind generating facilities vary significantly from period to period depending on the wind conditions during the periods in question. Historically, wind production has been greater in the first and fourth quarters. The electricity produced and revenues generated by the solar generating facilities is also variable and depends heavily on seasonality and weather conditions. Spring and summer are usually the peak solar production seasons due to increased direct sunlight and longer days. With regards to weather, solar panels will still work on cloudy and rainy days, but solar system output will be lower than on clear, sunny days. Also, major storms can damage solar panels and other equipment and lead to lower power generation until equipment can be repaired or replaced and brought back online. See Note 7, Property, Plant, and Equipment, for more information on the wind storms that damaged equipment at Samson I and Delilah I. 2025 Form 10-K 17 WEC Energy Group, Inc. Table of Contents Corporate and Other Segment The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, and the PELLC holding company, as well as the operations of Wispark and WBS. In addition, we have certain subsidiaries that hold investments in several clean energy investment funds and have engaged in certain financing activities. Wispark develops and invests in real estate, primarily in southeastern Wisconsin. WBS is a wholly owned centralized service company that provides administrative and general support services to our regulated entities. WBS also provides certain administrative and support services to our nonregulated entities. This segment also includes Wisvest, WECC, and PDL which no longer have significant operations. E. REGULATION We are a holding company and are subject to the requirements of the PUHCA 2005. We also have various subsidiaries that meet the definition of a holding company under the PUHCA 2005 and are also subject to its requirements. Pursuant to the non-utility asset cap provisions of Wisconsin's public utility holding company law, the sum of certain assets of all non-utility affiliates in a holding company system generally may not exceed 25% of the assets of all public utility affiliates. However, among other items, the law exempts energy-related assets, including the generating plants constructed by We Power and the other assets in our non-utility energy infrastructure segment, from being counted against the asset cap provided that they are employed in qualifying businesses. We report to the PSCW annually on our compliance with this law and provide supporting documentation to show that our non-utility assets are below the non-utility asset cap. Regulated Utility Operations In addition to the specific regulations noted above and below, our utilities are subject to various other regulations, which primarily consist of regulations, where applicable, of the EPA; the WDNR; the Illinois Department of Natural Resources; the Illinois Environmental Protection Agency; the Michigan Department of Environment, Great Lakes, and Energy; the Michigan Department of Natural Resources; the United States Army Corps of Engineers; the Minnesota Department of Natural Resources; and the Minnesota Pollution Control Agency. Rates Our utilities' rates are subject to the regulations and oversight of various state regulatory commissions and the FERC, as applicable. Decisions by these regulators can significantly impact our liquidity, financial condition, and results of operations. The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31: 2025 2024 2023 (in millions) Amount Percent Amount Percent Amount Percent Electric Wisconsin $ 4,992.8 90.0 % $ 4,496.0 91.3 % $ 4,548.8 90.8 % Michigan 171.8 3.1 % 141.1 2.9 % 141.4 2.8 % FERC – Wholesale 382.8 6.9 % 284.5 5.8 % 320.6 6.4 % Total electric 5,547.4 100.0 % 4,921.6 100.0 % 5,010.8 100.0 % Natural Gas Wisconsin 1,743.8 44.0 % 1,405.4 40.6 % 1,610.5 43.6 % Illinois 1,683.6 42.5 % 1,602.4 46.3 % 1,557.8 42.2 % Minnesota 327.9 8.3 % 290.5 8.4 % 348.4 9.4 % Michigan 203.9 5.2 % 162.8 4.7 % 175.3 4.8 % Total natural gas 3,959.2 100.0 % 3,461.1 100.0 % 3,692.0 100.0 % Total utility operating revenues $ 9,506.6 $ 8,382.7 $ 8,702.8 Retail Rates The state regulatory commissions have general supervisory and regulatory powers over public utilities in their respective jurisdictions including, but not limited to, approval of retail utility rates and standards of service, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility 2025 Form 10-K 18 WEC Energy Group, Inc. Table of Contents facilities. The PSCW, ICC, and MPUC also regulate security issuances at utilities in their respective jurisdictions. In addition, the FERC regulates security issuances for UMERC. Historically, retail rates approved by the state commissions have been designed to provide utilities the opportunity to generate revenues to recover all prudently-incurred costs, along with a return on investment sufficient to pay interest on debt and provide a reasonable ROE. Rates charged to customers vary according to customer class and rate jurisdiction. WE, WPS, and WG are each subject to an earnings sharing mechanism in which a portion of the utility's earnings are required to be refunded to customers if the utility earns above its authorized ROE. See Note 26, Regulatory Environment, for more information on these earnings sharing mechanisms. The table below reflects the various state commissions that regulated each of our utilities' retail rates during 2025, along with the approved ROE and capital structure for each utility during 2025. Regulated Retail Rates Regulatory Commission Authorized ROE Average Common Equity Component WE – Electric, natural gas, and steam (1) PSCW 9.80% 53.0% WPS – Electric and natural gas PSCW 9.80% 53.0% WG – Natural gas PSCW 9.80% 53.0% UMERC – Electric MPSC 9.86% 50.0% PGL – Natural gas ICC 9.38% 50.79% NSG – Natural gas ICC 9.38% 52.58% MERC – Natural gas MPUC 9.65% 53.0% MGU – Natural gas MPSC 9.86% 50.0% (1) As currently proposed, the ROE for VLCs will range from 10.48% to 10.98%, as agreed upon with the customer, and the average common equity ratio will be 57.0%. See Note 26, Regulatory Environment, for more information. In addition to amounts collected from customers through approved base rates, our utilities have certain recovery mechanisms in place that allow them to recover or refund prudently incurred costs that differ from those approved in base rates. Embedded within our electric utilities' rates is an amount to recover fuel and purchased power costs. The Wisconsin retail fuel rules require a utility to defer, for subsequent rate recovery or refund, any under-collection or over-collection of fuel and purchased power costs that are outside of the utility's symmetrical fuel cost tolerance, which the PSCW typically sets at plus or minus 2% of the utility's approved fuel and purchased power cost plan. The deferred fuel and purchased power costs are subject to an excess revenues test. If the utility's ROE in a given year exceeds the ROE authorized by the PSCW, the recovery of under-collected fuel and purchased power costs would be reduced by the amount by which the utility's return exceeds the authorized amount. Prudently incurred fuel and purchased power costs are recovered dollar-for-dollar from our Michigan retail electric customers. Our natural gas utilities operate under GCRMs as approved by their respective state regulator. Generally, the GCRMs allow for a dollar-for-dollar recovery of prudently incurred natural gas costs. See Note 1(d), Operating Revenues, for additional information on the significant mechanisms our utilities had in place during 2025 that allowed them to recover or refund changes in prudently incurred costs from rate case-approved amounts. Our utilities file periodic requests with their respective state commission for changes in retail rates. All of our utilities' rate requests are based on forward looking test years, which reflect additions to infrastructure and changes in costs incurred or expected to be incurred. For information on our regulatory proceedings, see Note 26, Regulatory Environment. Orders from our respective state regulators can be viewed at the following websites: Regulatory Commission Website PSCW https://psc.wi.gov/ ICC https://www.icc.illinois.gov/ MPSC http://www.michigan.gov/mpsc/ MPUC http://mn.gov/puc/ The material and information contained on these websites are not intended to be a part of, nor are they incorporated by reference into, this Annual Report on Form 10-K. 2025 Form 10-K 19 WEC Energy Group, Inc. Table of Contents Wholesale Rates The FERC regulates our wholesale sales of electric energy, capacity, and ancillary services. Our electric utilities have received market-based rate authority from the FERC. Market-based rate authority allows wholesale electric sales to be made in the MISO market and directly to third parties based on the negotiated market value of the transaction. WE and WPS also make wholesale sales pursuant to cost-based formula rates. Cost-based formula rates provide for recovery of the utility's costs and an approved rate of return. The predetermined formula is initially based on the utility's expenses from the previous year, but is eventually trued up to reflect actual, current-year costs. Electric Transmission, Capacity, and Energy Markets In connection with its status as a FERC-approved RTO, MISO operates an energy and ancillary services market and manages the flow of high-voltage electricity across the transmission system in its region. MISO is responsible for monitoring and ensuring equal access to the electric transmission system in its footprint. In MISO, transmission costs are allocated in accordance with the MISO tariff, which is reviewed and approved by the FERC. Base transmission costs are paid by load-serving entities located in the service territories of each MISO transmission owner. Costs for new regional transmission projects are allocated to load-serving entities throughout the MISO footprint, while the costs for new generation interconnections are allocated to the interconnection customer. Within MISO, transmission congestion is monetized and included within an LMP that is established through the energy market. The LMP system includes the ability to hedge transmission congestion costs through ARRs and FTRs. ARRs are allocated to market participants by MISO, and FTRs are purchased through auctions. A new allocation and auction was completed for the period of June 1, 2025, through May 31, 2026. The resulting ARR allocation and the secured FTRs are expected to mitigate our transmission congestion risk for that period. MISO has seasonal zonal resource adequacy requirements to ensure there is sufficient generation capacity to serve load within each zone and the MISO footprint. To meet this requirement, load-serving entities can own generation and demand response resources, acquire generation capacity through MISO's annual capacity auction, or acquire generation capacity through bilateral contracts. The zone in which our electric utilities’ load resides, along with the MISO North region as a whole, has sufficient generation capacity resources to meet their respective planning reserve margins for the period between June 1, 2025 and May 31, 2026. We manage our electric generation portfolios to minimize their exposure within MISO’s annual capacity auction. This includes managing the retirement of existing generation resources and the addition of new generation resources to maintain a diversified portfolio to help avoid a significant short position. Other Electric Regulations Our electric utilities are subject to the Federal Power Act and the corresponding regulations developed by certain federal agencies. Among other things, the Federal Power Act makes electric utility industry consolidation more feasible and authorizes the FERC to review proposed mergers and the acquisition of generation facilities. The FERC also oversees the Electric Reliability Organization, which establishes mandatory electric reliability standards and has the authority to levy monetary sanctions for failure to comply with these standards. WE and WPS are subject to Act 141 in Wisconsin, and UMERC is subject to Public Acts 295 and 342 in Michigan, which contain certain minimum requirements for renewable energy generation. Other Natural Gas Regulations Almost all of the natural gas we distribute is transported to our distribution systems by interstate pipelines. The pipelines' transportation and storage services, including PGL's natural gas hub, are regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the PHMSA and the state commissions are responsible for monitoring and enforcing requirements governing our natural gas utilities' safety compliance programs for our pipelines under the United States Department of Transportation regulations. These regulations include 49 CFR Part 191 (Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports), 49 CFR Part 192 (Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards), and 49 CFR Part 195 (Transportation of Hazardous Liquids by Pipeline). 2025 Form 10-K 20 WEC Energy Group, Inc. Table of Contents We also continue to monitor the progress of the PHMSA’s proposed rulemaking titled "Gas Pipeline Leak Detection and Repair," which could have a significant impact on our natural gas utilities. We are required to provide natural gas service and grant credit (with applicable deposit requirements) to customers within our service territories. We are generally not allowed to discontinue natural gas service during winter moratorium months to residential heating customers who do not pay their bills. Federal and certain state governments have programs that provide for a limited amount of funding for assistance to low-income customers of our utilities. Non-Utility Energy Infrastructure Operations The generation facilities constructed by wholly owned subsidiaries of We Power are being leased on a long-term basis to WE. Environmental permits necessary for operating the facilities are the responsibility of the operating entity, WE. We Power received determinations from the FERC that upon the transfer of the facilities by lease to WE, We Power's subsidiaries would not be deemed public utilities under the Federal Power Act and thus would not be subject to the FERC's jurisdiction. Bluewater is regulated by the FERC under the Natural Gas Act and the Natural Gas Policy Act of 1978. In addition, the PHMSA is responsible for monitoring and enforcing requirements governing Bluewater's safety compliance programs for its pipelines under the United States Department of Transportation regulations. These regulations include 49 CFR Parts 191, 192, and 195. Given that Bluewater is required to route some of its natural gas through Canada, applicable reporting and licensing with the DOE and the Canadian National Energy Board are also required, along with routine reporting related to imports and exports. All of our operational renewable generating facilities in our non-utility energy infrastructure segment are also subject to the FERC’s regulation of wholesale energy under the Federal Power Act. Compliance Costs The regulations and oversight described above significantly influence our operating environment, and may cause us to incur compliance and other related costs and may affect our ability to recover these costs from our utility customers. Any anticipated capital expenditures for compliance with government regulations for the next three years are included in the estimated capital expenditures described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash Requirements. F. ENVIRONMENTAL COMPLIANCE Our operations, especially as they relate to our coal-fired generating facilities, are subject to extensive environmental regulation by state and federal environmental agencies governing air and water quality, hazardous and solid waste management, environmental remediation, and management of natural resources. Costs associated with complying with these requirements are significant. Additional future environmental regulations or revisions to existing laws, including for example, additional regulation related to GHG emissions, coal combustion products, air emissions, water use, or wastewater discharges and other climate change issues, could significantly increase these environmental compliance costs. Anticipated expenditures for environmental compliance and certain remediation issues for the next three years are included in the estimated capital expenditures described in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash Requirements. For a discussion of certain environmental matters affecting us, including rules and regulations relating to air quality, water quality, land quality, and climate change, see Note 24, Commitments and Contingencies. G. HUMAN CAPITAL We believe our employees are among our most important resources, so investing in human capital is critical to our success. We strive to attract, retain, and develop talented personnel and keep our employees safe, healthy, and engaged. Our Board of Directors retains collective responsibility for comprehensive risk oversight, including critical areas that could impact our sustainability, such as human capital. Management regularly reports to the Board of Directors on human capital management topics, including corporate culture, succession planning, training and employee development, and safety and health. The Board of Directors 2025 Form 10-K 21 WEC Energy Group, Inc. Table of Contents delegates specified duties to its committees. In addition to its responsibilities relative to executive compensation, the Compensation Committee has oversight responsibility for reviewing organizational matters that could significantly impact us. The Compensation Committee reviews recruiting and development programs and priorities, receives updates on key talent, and assesses workforce composition across the organization. Workforce As of December 31, 2025, we had the following number of employees, including those represented under union agreements: Total Employees Union Employees WE 2,565 1,963 WPS 1,220 876 WG 398 279 PGL 1,199 819 NSG 156 119 MERC 200 37 MGU 144 97 WBS 1,269 — Total employees 7,151 4,190 We have a local union presence that spans Wisconsin, Illinois, Minnesota, and Michigan. We believe we have very good overall relations with our workforce. In order to attract and retain talent, we provide competitive wages and benefits to our employees based on their performance, role, location, and market data. Our compensation package also includes a 401(k) savings plan with an employer match, an annual incentive plan based on meeting company goals, healthcare and insurance benefits, vacation and paid time off days, as well as other benefits. Engagement We are committed to ensuring a fair workplace and an engaged workforce. Our commitment is a core strategic competency and an integral part of our culture, with longstanding programs for individual development, reinforcement of our core values, and a recruitment strategy that is focused on building a deep talent pipeline to support our business needs. During 2025, we demonstrated this commitment through training and development of employees at all levels of the organization, our comprehensive merit review and succession planning processes, and a range of community partnerships. In addition, we have a number of initiatives that promote workforce contributions and participation and ensure our companies are attractive employers for persons of all backgrounds. These initiatives include nine business resource groups (voluntary, employee-led groups organized around a particular shared background or interest), mentoring programs, and education and training for all employees in order to develop and support inclusive teams. We are committed to a workplace free from bias and harassment. We also support external leadership and educational programs that support, train, and promote individuals in the communities we serve. Safety and Health Our Executive Safety Committee directs our safety and health strategy, works to ensure consistency across groups, and reinforces our ongoing safety commitment that we refer to as “Target Zero.” Under our Target Zero commitment, we have an ultimate goal of zero incidents, accidents, and injuries. Our corporate safety program provides a forum for addressing employee concerns, training employees and contractors on current safety standards, and recognizing those who demonstrate a safety focus. We monitor and set goals for days away, restricted or transferred metrics, and measurable leading indicators, which together raise awareness about employee safety and guide injury-prevention activities. We also provide employees various benefits and resources designed to promote healthy living, both at work and at home. We encourage employees to receive preventive examinations and to proactively care for their health through free health screenings, wellness challenges, and other resources. 2025 Form 10-K 22 WEC Energy Group, Inc. Table of Contents Development and Training Employee training and development of both technical and leadership skills are integral aspects of our human capital strategy. We provide employees with a wide range of development opportunities, including online training, simulations, live classes, and mentoring to assist with their career advancement. These programs include safety and technical job skill training as well as soft-skill programs focused on relevant subjects, including communication and change management. Development of leadership skills remains a top priority and is specialized for all levels of employees. We have specific leadership programs for aspiring leaders and new supervisors, managers, and directors. This development of our employees is an integral part of our succession planning and provides continuity for our senior leadership. 2025 Form 10-K 23 WEC Energy Group, Inc.