10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ___________________

Commission File Number	Registrant; State of Incorporation; Address; and Telephone Number	IRS Employer Identification No.
001-09057	WEC ENERGY GROUP, INC.	39-1391525

(A Wisconsin Corporation)

231 West Michigan Street

P.O. Box 1331

Milwaukee, WI 53201

(414) 221-2345

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $.01 Par Value	WEC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

    Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company		☐
		Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

    Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date (March 31, 2022):

Common Stock, $.01 Par Value, 315,434,531 shares outstanding

WEC ENERGY GROUP, INC.

QUARTERLY REPORT ON FORM 10-Q

For the Quarter Ended March 31, 2022

TABLE OF CONTENTS

				Page
	CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION			1
PART I.	FINANCIAL INFORMATION			4
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)			4
	Condensed Consolidated Income Statements			4
	Condensed Consolidated Statements of Comprehensive Income			5
	Condensed Consolidated Balance Sheets			6
	Condensed Consolidated Statements of Cash Flows			7
	Condensed Consolidated Statements of Equity			8
	Notes to Condensed Consolidated Financial Statements			9
			Page
	Note 1	General Information	9
	Note 2	Acquisitions	9
	Note 3	Operating Revenues	10
	Note 4	Credit Losses	13
	Note 5	Regulatory Assets and Liabilities	15
	Note 6	Property, Plant, and Equipment	16
	Note 7	Common Equity	16
	Note 8	Short-Term Debt and Lines of Credit	17
	Note 9	Materials, Supplies, and Inventories	17
	Note 10	Income Taxes	18
	Note 11	Fair Value Measurements	18
	Note 12	Derivative Instruments	20
	Note 13	Guarantees	22
	Note 14	Employee Benefits	22
	Note 15	Goodwill and Intangibles	23
	Note 16	Investment in Transmission Affiliates	24
	Note 17	Segment Information	25
	Note 18	Variable Interest Entities	26
	Note 19	Commitments and Contingencies	28
	Note 20	Supplemental Cash Flow Information	32
	Note 21	Regulatory Environment	33
	Note 22	New Accounting Pronouncements	35
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			36
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			61
ITEM 4.	CONTROLS AND PROCEDURES			61
PART II.	OTHER INFORMATION			62
ITEM 1.	LEGAL PROCEEDINGS			62
ITEM 1A.	RISK FACTORS			62
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			63
ITEM 6.	EXHIBITS			63
SIGNATURE				64

03/31/2022 Form 10-Q i WEC Energy Group, Inc.

GLOSSARY OF TERMS AND ABBREVIATIONS

The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below:

Subsidiaries and Affiliates
ATC	American Transmission Company LLC
ATC Holdco	ATC Holdco LLC
Bishop Hill III	Bishop Hill Energy III LLC
Blooming Grove	Blooming Grove Wind Energy Center LLC
Bluewater	Bluewater Natural Gas Holding, LLC
Coyote Ridge	Coyote Ridge Wind, LLC
Integrys	Integrys Holding, Inc.
Jayhawk	Jayhawk Wind, LLC
MERC	Minnesota Energy Resources Corporation
MGU	Michigan Gas Utilities Corporation
NSG	North Shore Gas Company
PGL	The Peoples Gas Light and Coke Company
Tatanka Ridge	Tatanka Ridge Wind LLC
UMERC	Upper Michigan Energy Resources Corporation
Upstream	Upstream Wind Energy LLC
WE	Wisconsin Electric Power Company
We Power	W.E. Power, LLC
WEC Energy Group	WEC Energy Group, Inc.
WECI	WEC Infrastructure LLC
WEPCo Environmental Trust	WEPCo Environmental Trust Finance I, LLC
WG	Wisconsin Gas LLC
Wispark	Wispark LLC
WPS	Wisconsin Public Service Corporation
Federal and State Regulatory Agencies
CBP	United States Customs and Border Protection Agency
DOC	United States Department of Commerce
EPA	United States Environmental Protection Agency
FERC	Federal Energy Regulatory Commission
ICC	Illinois Commerce Commission
IEPA	Illinois Environmental Protection Agency
MPUC	Minnesota Public Utilities Commission
PSCW	Public Service Commission of Wisconsin
SEC	United States Securities and Exchange Commission
WDNR	Wisconsin Department of Natural Resources
Accounting Terms
ASU	Accounting Standards Update
FASB	Financial Accounting Standards Board
GAAP	United States Generally Accepted Accounting Principles
LIFO	Last-In, First-Out
OPEB	Other Postretirement Employee Benefits
VIE	Variable Interest Entity
Environmental Terms
ACE	Affordable Clean Energy
BATW	Bottom Ash Transport Water
BTA	Best Technology Available
CAA	Clean Air Act
CASAC	Clean Air Scientific Advisory Committee
CO2	Carbon Dioxide
ELG	Steam Electric Effluent Limitation Guidelines

03/31/2022 Form 10-Q ii WEC Energy Group, Inc.

FGD	Flue Gas Desulfurization
GHG	Greenhouse Gas
GMZ	Groundwater Management Zone
NAAQS	National Ambient Air Quality Standards
NOV	Notice of Violation
NOx	Nitrogen Oxide
VN	Violation Notice
WOTUS	Waters of the United States
WPDES	Wisconsin Pollutant Discharge Elimination System
Measurements
Dth	Dekatherm
MW	Megawatt
MWh	Megawatt-hour
Other Terms and Abbreviations
2007 Junior Notes	WEC Energy Group, Inc.'s 2007 Junior Subordinated Notes Due 2067
AD/CVD	Antidumping and Countervailing Duties
AG	Attorney General
AMI	Advanced Metering Infrastructure
Badger Hollow I	Badger Hollow Solar Park I
Badger Hollow II	Badger Hollow Solar Park II
CIP	Conservation Improvement Program
COVID-19	Coronavirus Disease – 2019
D.C. Circuit Court of Appeals	United States Court of Appeals for the District of Columbia Circuit
ERGS	Elm Road Generating Station
ESG Progress Plan	WEC Energy Group's Capital Investment Plan for Efficiency, Sustainability, and Growth for 2022-2026
ETB	Environmental Trust Bond
EV	Electric Vehicle
Exchange Act	Securities Exchange Act of 1934, as amended
Executive Order 13990	Executive Order 13990 of January 20, 2021 – Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis
FTR	Financial Transmission Right
GCRM	Gas Cost Recovery Mechanism
ITC	Investment Tax Credit
LIBOR	London Interbank Offered Rate
LNG	Liquefied Natural Gas
MISO	Midcontinent Independent System Operator, Inc.
OCPP	Oak Creek Power Plant
OC 7	Oak Creek Power Plant Unit 7
OC 8	Oak Creek Power Plant Unit 8
PPA	Power Purchase Agreement
PSB	Public Service Building
PTC	Production Tax Credit
PWGS	Port Washington Generation Station
QIP	Qualifying Infrastructure Plant
RICE	Reciprocating Internal Combustion Engine
RNG	Renewable Natural Gas
ROE	Return on Equity
Sapphire Sky	Sapphire Sky Wind Energy LLC
SMP	Safety Modernization Program
SPP	Southwest Power Pool, Inc.
Supreme Court	United States Supreme Court
Tax Legislation	Tax Cuts and Jobs Act of 2017
Thunderhead	Thunderhead Wind Energy LLC
TPTFA	Third-Party Transaction Fee Adjustment

03/31/2022 Form 10-Q iii WEC Energy Group, Inc.

Two Creeks	Two Creeks Solar Park
West Riverside	West Riverside Energy Center
Whitewater	Whitewater Cogeneration Facility
WRO	Withhold Release Order

03/31/2022 Form 10-Q iv WEC Energy Group, Inc.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

In this report, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements may be identified by reference to a future period or periods or by the use of terms such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goals," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "seeks," "should," "targets," "will," or variations of these terms.

Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings, completion of capital projects, sales and customer growth, rate actions and related filings with regulatory authorities, environmental and other regulations, including associated compliance costs, legal proceedings, dividend payout ratios, effective tax rates, pension and OPEB plans, fuel costs, sources of electric energy supply, coal and natural gas deliveries, remediation costs, climate-related matters, our ESG Progress Plan, liquidity and capital resources, and other matters.

Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include those described in risk factors as set forth in our 2021 Annual Report on Form 10-K, and those identified below:

•Factors affecting utility operations such as catastrophic weather-related damage, environmental incidents, unplanned facility outages and repairs and maintenance, and electric transmission or natural gas pipeline system constraints;

•Factors affecting the demand for electricity and natural gas, including political or regulatory developments, varying, adverse, or unusually severe weather conditions, including those caused by climate change, changes in economic conditions, customer growth and declines, commodity prices, energy conservation efforts, and continued adoption of distributed generation by customers;

•The timing, resolution, and impact of rate cases and negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting our regulated operations;

•The impact of federal, state, and local legislative and/or regulatory changes, including changes in rate-setting policies or procedures, the expiration and non-renewal of the QIP rider, deregulation and restructuring of the electric and/or natural gas utility industries, transmission or distribution system operation, the approval process for new construction, reliability standards, pipeline integrity and safety standards, allocation of energy assistance, energy efficiency mandates, and tax laws, including those that affect our ability to use PTCs and ITCs;

•Federal, state, and local legislative and regulatory changes relating to the environment, including climate change and other environmental regulations impacting generation facilities and renewable energy standards, the enforcement of these laws and regulations, changes in the interpretation of regulations or permit conditions by regulatory agencies, and the recovery of associated remediation and compliance costs;

•The ability to obtain and retain customers, including wholesale customers, due to increased competition in our electric and natural gas markets from retail choice and alternative electric suppliers, and continued industry consolidation;

•The timely completion of capital projects within budgets and the ability to recover the related costs through rates;

•The risk of delays and shortages, and increased costs of equipment, materials, or other resources that are critical to our business operations and corporate strategy, as a result of supply chain disruptions, inflation, and other factors;

•The impact of health pandemics, including any new developments relating to the COVID-19 pandemic, on our business functions, financial condition, liquidity, and results of operations;

•Factors affecting the implementation of our CO2 emission and/or methane emission reduction goals and opportunities and actions related to those goals, including related regulatory decisions, the cost of materials, supplies, and labor, technology advances, the feasibility of competing generation projects, and our ability to execute our capital plan;

03/31/2022 Form 10-Q 1 WEC Energy Group, Inc.

•The financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases;

•The risks associated with inflation and changing commodity prices, including natural gas and electricity;

•The availability and cost of sources of natural gas and other fossil fuels, purchased power, materials needed to operate environmental controls at our electric generating facilities, or water supply due to high demand, shortages, transportation problems, nonperformance by electric energy or natural gas suppliers under existing power purchase or natural gas supply contracts, or other developments;

•Any impacts on the global economy, supply chains and fuel prices, generally, from the ongoing conflict between Russia and Ukraine;

•Changes in credit ratings, interest rates, and our ability to access the capital markets, caused by volatility in the global credit markets, our capitalization structure, and market perceptions of the utility industry, us, or any of our subsidiaries;

•Changes in the method of determining LIBOR or the replacement of LIBOR with an alternative reference rate;

•Costs and effects of litigation, administrative proceedings, investigations, settlements, claims, and inquiries;

•The direct or indirect effect on our business resulting from terrorist attacks and cyber security intrusions, as well as the threat of such incidents, including the failure to maintain the security of personally identifiable information, the associated costs to protect our utility assets, technology systems, and personal information, and the costs to notify affected persons to mitigate their information security concerns and to comply with state notification laws;

•Restrictions imposed by various financing arrangements and regulatory requirements on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances, that could prevent us from paying our common stock dividends, taxes, and other expenses, and meeting our debt obligations;

•The risk of financial loss, including increases in bad debt expense, associated with the inability of our customers, counterparties, and affiliates to meet their obligations;

•Changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading markets and fuel suppliers and transporters;

•The financial performance of ATC and its corresponding contribution to our earnings;

•The investment performance of our employee benefit plan assets, as well as unanticipated changes in related actuarial assumptions, which could impact future funding requirements;

•Factors affecting the employee workforce, including loss of key personnel, internal restructuring, work stoppages, and collective bargaining agreements and negotiations with union employees;

•Advances in technology, and related legislation or regulation supporting the use of that technology, that result in competitive disadvantages and create the potential for impairment of existing assets;

•Risks related to our non-utility renewable energy facilities, including unfavorable weather, the ability to replace expiring long-term PPAs under acceptable terms, and the availability of reliable interconnection and electricity grids;

•The risk associated with the values of goodwill, other intangible assets, long-lived assets, and equity method investments, and their possible impairment;

•Potential business strategies to acquire and dispose of assets or businesses, which cannot be assured to be completed timely or within budgets, and legislative or regulatory restrictions or caps on non-utility acquisitions, investments or projects, including the State of Wisconsin's public utility holding company law;

•The timing and outcome of any audits, disputes, and other proceedings related to taxes;

03/31/2022 Form 10-Q 2 WEC Energy Group, Inc.

•The effect of accounting pronouncements issued periodically by standard-setting bodies; and

•Other considerations disclosed elsewhere herein and in other reports we file with the SEC or in other publicly disseminated written documents.

Except as may be required by law, we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

03/31/2022 Form 10-Q 3 WEC Energy Group, Inc.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)	Three Months Ended
	March 31
(in millions, except per share amounts)	2022		2021
Operating revenues	$	2,908.1	$	2,691.4
Operating expenses
Cost of sales	1,383.4		1,265.6
Other operation and maintenance	454.4		479.9
Depreciation and amortization	278.1		261.4
Property and revenue taxes	60.8		55.2
Total operating expenses	2,176.7		2,062.1
Operating income	731.4		629.3
Equity in earnings of transmission affiliates	41.7		42.6
Other income, net	39.6		32.8
Interest expense	117.6		119.5
Other expense	(36.3)		(44.1)
Income before income taxes	695.1		585.2
Income tax expense	127.1		74.9
Net income	568.0		510.3
Preferred stock dividends of subsidiary	0.3		0.3
Net (income) loss attributed to noncontrolling interests	(1.8)		0.1
Net income attributed to common shareholders	$	565.9	$	510.1
Earnings per share
Basic	$	1.79	$	1.62
Diluted	$	1.79	$	1.61
Weighted average common shares outstanding
Basic	315.4		315.4
Diluted	316.2		316.2

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

03/31/2022 Form 10-Q 4 WEC Energy Group, Inc.

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)	Three Months Ended
	March 31
(in millions)	2022		2021
Net income	$	568.0	$	510.3
Other comprehensive income (loss), net of tax
Derivatives accounted for as cash flow hedges
Reclassification of realized net derivative (gain) loss to net income, net of tax	(0.1)		1.0
Cash flow hedges, net	(0.1)		1.0
Defined benefit plans
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax	0.1		0.1
Other comprehensive income, net of tax	—		1.1
Comprehensive income	568.0		511.4
Preferred stock dividends of subsidiary	0.3		0.3
Comprehensive (income) loss attributed to noncontrolling interests	(1.8)		0.1
Comprehensive income attributed to common shareholders	$	565.9	$	511.2

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

03/31/2022 Form 10-Q 5 WEC Energy Group, Inc.

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions, except share and per share amounts)	March 31, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	33.8	$	16.3
Accounts receivable and unbilled revenues, net of reserves of $200.6 and $198.3, respectively	1,635.7		1,505.7
Materials, supplies, and inventories	368.8		635.8
Prepayments	172.9		245.5
Derivative assets	204.3		107.0
Other	147.1		146.4
Current assets	2,562.6		2,656.7
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,041.4 and $9,889.3, respectively	27,110.2		26,982.4
Regulatory assets (March 31, 2022 and December 31, 2021 include $98.2 and $100.7, respectively, related to WEPCo Environmental Trust)	3,163.6		3,264.8
Equity investment in transmission affiliates	1,818.2		1,789.4
Goodwill	3,052.8		3,052.8
Pension and OPEB assets	910.2		881.3
Other	356.9		361.1
Long-term assets	36,411.9		36,331.8
Total assets	$	38,974.5	$	38,988.5
Liabilities and Equity
Current liabilities
Short-term debt	$	1,450.0	$	1,897.0
Current portion of long-term debt (March 31, 2022 and December 31, 2021 include $8.8, related to WEPCo Environmental Trust)	163.4		169.4
Accounts payable	693.7		1,005.7
Other	957.3		680.9
Current liabilities	3,264.4		3,753.0
Long-term liabilities
Long-term debt (March 31, 2022 and December 31, 2021 include $102.8 and $102.7, respectively, related to WEPCo Environmental Trust)	13,514.3		13,523.7
Deferred income taxes	4,426.2		4,308.5
Deferred revenue, net	383.8		389.2
Regulatory liabilities	4,032.6		3,946.0
Environmental remediation liabilities	517.2		532.6
Pension and OPEB obligations	218.5		219.0
Other	1,173.0		1,203.2
Long-term liabilities	24,265.6		24,122.2
Commitments and contingencies (Note 19)
Common shareholders' equity
Common stock – $0.01 par value; 325,000,000 shares authorized; 315,434,531 shares outstanding	3.2		3.2
Additional paid in capital	4,131.8		4,138.1
Retained earnings	7,111.4		6,775.1
Accumulated other comprehensive loss	(3.2)		(3.2)
Common shareholders' equity	11,243.2		10,913.2
Preferred stock of subsidiary	30.4		30.4
Noncontrolling interests	170.9		169.7
Total liabilities and equity	$	38,974.5	$	38,988.5

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

03/31/2022 Form 10-Q 6 WEC Energy Group, Inc.

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)	Three Months Ended
	March 31
(in millions)	2022		2021
Operating activities
Net income	$	568.0	$	510.3
Reconciliation to cash provided by operating activities
Depreciation and amortization	278.1		261.4
Deferred income taxes and ITCs, net	103.8		129.6
Contributions and payments related to pension and OPEB plans	(3.6)		(4.1)
Equity income in transmission affiliates, net of distributions	(7.7)		(9.2)
Change in –
Accounts receivable and unbilled revenues, net	(174.3)		(150.4)
Materials, supplies, and inventories	267.0		175.1
Prepayments	72.6		4.6
Amounts recoverable from customers	10.3		(286.7)
Other current assets	1.1		15.6
Accounts payable	(293.8)		(181.5)
Other current liabilities	289.5		(2.3)
Other, net	(34.2)		(67.2)
Net cash provided by operating activities	1,076.8		395.2
Investing activities
Capital expenditures	(383.5)		(470.6)
Acquisition of Jayhawk	—		(119.4)
Capital contributions to transmission affiliates	(21.1)		—
Proceeds from the sale of assets	9.7		11.3
Proceeds from the sale of investments held in rabbi trust	15.4		12.7
Insurance proceeds received for property damage	41.0		—
Other, net	0.3		24.7
Net cash used in investing activities	(338.2)		(541.3)
Financing activities
Exercise of stock options	11.8		1.2
Purchase of common stock	(23.4)		(6.6)
Dividends paid on common stock	(229.6)		(213.7)
Issuance of long-term debt	—		600.0
Retirement of long-term debt	(15.4)		(14.7)
Issuance of short-term loan	0.9		—
Repayment of short-term loan	—		(340.0)
Change in other short-term debt	(447.9)		143.5
Other, net	(2.9)		(6.6)
Net cash provided by (used in) financing activities	(706.5)		163.1
Net change in cash, cash equivalents, and restricted cash	32.1		17.0
Cash, cash equivalents, and restricted cash at beginning of period	87.5		72.6
Cash, cash equivalents, and restricted cash at end of period	$	119.6	$	89.6

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

03/31/2022 Form 10-Q 7 WEC Energy Group, Inc.

WEC ENERGY GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
	WEC Energy Group Common Shareholders' Equity
(in millions, except per share amounts)	Common Stock		Additional Paid In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Shareholders' Equity		Preferred Stock of Subsidiary		Non-controlling Interests		Total Equity
Balance at December 31, 2021	$	3.2	$	4,138.1	$	6,775.1	$	(3.2)	$	10,913.2	$	30.4	$	169.7	$	11,113.3
Net income attributed to common shareholders	—		—		565.9		—		565.9		—		—		565.9
Net income attributed to noncontrolling interests	—		—		—		—		—		—		1.8		1.8
Common stock dividends of $0.7275 per share	—		—		(229.6)		—		(229.6)		—		—		(229.6)
Exercise of stock options	—		11.8		—		—		11.8		—		—		11.8
Purchase of common stock	—		(23.4)		—		—		(23.4)		—		—		(23.4)
Capital contributions from noncontrolling interest	—		—		—		—		—		—		0.4		0.4
Distributions to noncontrolling interests	—		—		—		—		—		—		(1.0)		(1.0)
Stock-based compensation and other	—		5.3		—		—		5.3		—		—		5.3
Balance at March 31, 2022	$	3.2	$	4,131.8	$	7,111.4	$	(3.2)	$	11,243.2	$	30.4	$	170.9	$	11,444.5

	WEC Energy Group Common Shareholders' Equity
(in millions, except per share amounts)	Common Stock		Additional Paid In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Common Shareholders' Equity		Preferred Stock of Subsidiary		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	3.2	$	4,143.7	$	6,329.6	$	(6.8)	$	10,469.7	$	30.4	$	162.4	$	10,662.5
Net income attributed to common shareholders	—		—		510.1		—		510.1		—		—		510.1
Net loss attributed to noncontrolling interests	—		—		—		—		—		—		(0.1)		(0.1)
Other comprehensive income	—		—		—		1.1		1.1		—		—		1.1
Common stock dividends of $0.6775 per share	—		—		(213.7)		—		(213.7)		—		—		(213.7)
Exercise of stock options	—		1.2		—		—		1.2		—		—		1.2
Purchase of common stock	—		(6.6)		—		—		(6.6)		—		—		(6.6)
Acquisition of a noncontrolling interest	—		—		—		—		—		—		6.2		6.2
Capital contributions from noncontrolling interest	—		—		—		—		—		—		2.0		2.0
Distributions to noncontrolling interests	—		—		—		—		—		—		(0.4)		(0.4)
Stock-based compensation and other	—		5.3		—		—		5.3		—		—		5.3
Balance at March 31, 2021	$	3.2	$	4,143.6	$	6,626.0	$	(5.7)	$	10,767.1	$	30.4	$	170.1	$	10,967.6

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

03/31/2022 Form 10-Q 8 WEC Energy Group, Inc.

WEC ENERGY GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

March 31, 2022

NOTE 1—GENERAL INFORMATION

WEC Energy Group serves approximately 1.6 million electric customers and 3.0 million natural gas customers, owns approximately 60% of ATC, and owns majority interests in multiple wind generating facilities as part of its non-utility energy infrastructure business.

As used in these notes, the term "financial statements" refers to the condensed consolidated financial statements. This includes the income statements, statements of comprehensive income, balance sheets, statements of cash flows, and statements of equity, unless otherwise noted. In this report, when we refer to "the Company," "us," "we," "our," or "ours," we are referring to WEC Energy Group and all of its subsidiaries.

On our financial statements, we consolidate our majority-owned subsidiaries, which we control, and VIEs, of which we are the primary beneficiary. We reflect noncontrolling interests for the portion of entities that we do not own as a component of consolidated equity separate from the equity attributable to our shareholders. The noncontrolling interests that we reported as equity on our balance sheets related to the minority interests at Bishop Hill III, Blooming Grove, Coyote Ridge, Jayhawk, Tatanka Ridge, and Upstream held by third parties.

We use the equity method to account for investments in companies we do not control but over which we exercise significant influence regarding their operating and financial policies. As a result of our limited voting rights, we account for ATC and ATC Holdco as equity method investments. See Note 16, Investment in Transmission Affiliates, for more information.

We have prepared the unaudited interim financial statements presented in this Form 10-Q pursuant to the rules and regulations of the SEC and GAAP. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period may not give a true indication of results for the year. In particular, the results of operations for the three months ended March 31, 2022, are not necessarily indicative of expected results for 2022 due to seasonal variations and other factors.

In management's opinion, we have included all adjustments, normal and recurring in nature, necessary for a fair presentation of our financial results.

NOTE 2—ACQUISITIONS

In accordance with Topic 805: Clarifying the Definition of a Business (ASU 2017-01), transactions are evaluated and are accounted for as acquisitions (or disposals) of assets or businesses, and transaction costs are capitalized in asset acquisitions. The purchase price of certain acquisitions below includes intangibles recorded as long-term liabilities related to PPAs and interconnection agreements. See Note 15, Goodwill and Intangibles, for more information.

Acquisition of Electric Generation Facility in Wisconsin

In November 2021, WE and WPS signed an asset purchase agreement to acquire Whitewater, a commercially operational 236.5 MW dual fueled (natural gas and low sulfur fuel oil) combined cycle electrical generation facility in Whitewater, Wisconsin, for $72.7 million. The transaction is expected to close in January 2023. In December 2021, WE and WPS filed an application with the PSCW for approval to acquire Whitewater.

Acquisition of a Wind Energy Generation Facility in Illinois

In June 2021, WECI signed an agreement to acquire a 90% ownership interest in Sapphire Sky, a 250 MW wind generating facility under construction in McLean County, Illinois, for approximately $412 million. The project has an offtake agreement with an unaffiliated third party for all of the energy to be produced by the facility for a period of 12 years. WECI's investment in Sapphire Sky is expected to qualify for PTCs. The transaction is subject to FERC approval and commercial operation is expected to begin by the end

03/31/2022 Form 10-Q 9 WEC Energy Group, Inc.

of 2022, at which time the transaction is expected to close. Sapphire Sky will be included in the non-utility energy infrastructure segment.

Acquisition of a Wind Energy Generation Facility in Kansas

In February 2021, WECI completed the acquisition of a 90% ownership interest in Jayhawk, a 190 MW wind generating facility in Bourbon and Crawford counties, Kansas, for $119.9 million, which included transaction costs. The project became commercially operational in December 2021. Subsequent to the acquisition, WECI incurred an additional $147.4 million of capital expenditures for the project for a total investment of $267.3 million. The project has an offtake agreement with an unaffiliated third party for all of the energy to be produced by the facility for a period of 10 years. WECI's investment in Jayhawk qualifies for PTCs. WECI is entitled to 99% of the tax benefits related to this facility for the first 10 years of commercial operation, after which we will be entitled to tax benefits equal to our ownership interest. Jayhawk is included in the non-utility energy infrastructure segment.

Acquisition of Wind Generation Facility in Nebraska

In August 2019, WECI signed an agreement to acquire an 80% ownership interest in Thunderhead, a 300 MW wind generating facility under construction in Antelope and Wheeler counties in Nebraska, for a total investment of approximately $338 million. In February 2020, WECI agreed to acquire an additional 10% ownership interest in Thunderhead for $43 million. The project has an offtake agreement for all of the energy to be produced by the facility for 12 years. WECI's investment in Thunderhead is expected to qualify for PTCs. The transaction was approved by FERC in April 2020, and commercial operation was initially expected to begin by the end of 2020. However, due to a delay in construction of the required substation, Thunderhead is now expected to begin commercial operation in the Fall of 2022. The transaction is expected to close upon commercial operation. Thunderhead will be included in the non-utility energy infrastructure segment.

NOTE 3—OPERATING REVENUES

For more information about our operating revenues, see Note 1(d), Operating Revenues, in our 2021 Annual Report on Form 10-K.

Disaggregation of Operating Revenues

The following tables present our operating revenues disaggregated by revenue source. We do not have any revenues associated with our electric transmission segment, which includes investments accounted for using the equity method. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. For our segments, revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations have different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions.

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2022
Electric	$	1,187.5	$	—	$	—	$	1,187.5	$	—	$	—	$	—		$	1,187.5
Natural gas	746.8		679.9		238.2		1,664.9		15.3		—		(14.8)			1,665.4
Total regulated revenues	1,934.3		679.9		238.2		2,852.4		15.3		—		(14.8)			2,852.9
Other non-utility revenues	—		—		4.6		4.6		43.7		—		(1.6)			46.7
Total revenues from contracts with customers	1,934.3		679.9		242.8		2,857.0		59.0		—		(16.4)			2,899.6
Other operating revenues	8.0		2.2		(1.9)		8.3		100.5		0.2		(100.5)		(1)	8.5
Total operating revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	159.5	$	0.2	$	(116.9)		$	2,908.1

03/31/2022 Form 10-Q 10 WEC Energy Group, Inc.

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2021
Electric	$	1,095.0	$	—	$	—	$	1,095.0	$	—	$	—	$	—		$	1,095.0
Natural gas	627.3		693.5		225.6		1,546.4		14.6		—		(13.3)			1,547.7
Total regulated revenues	1,722.3		693.5		225.6		2,641.4		14.6		—		(13.3)			2,642.7
Other non-utility revenues	—		—		4.7		4.7		23.2		—		(1.6)			26.3
Total revenues from contracts with customers	1,722.3		693.5		230.3		2,646.1		37.8		—		(14.9)			2,669.0
Other operating revenues	9.4		9.9		3.0		22.3		99.8		0.1		(99.8)		(1)	22.4
Total operating revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	137.6	$	0.1	$	(114.7)		$	2,691.4

(1)Amounts eliminated represent lease revenues related to certain plants that We Power leases to WE to supply electricity to its customers. Lease payments are billed from We Power to WE and then recovered in WE's rates as authorized by the PSCW and the FERC. WE operates the plants and is authorized by the PSCW and Wisconsin state law to fully recover prudently incurred operating and maintenance costs in electric rates.

Revenues from Contracts with Customers

Electric Utility Operating Revenues

The following table disaggregates electric utility operating revenues into customer class:

	Three Months Ended March 31
(in millions)	2022		2021
Residential	$	463.1	$	423.7
Small commercial and industrial	370.1		331.4
Large commercial and industrial	229.2		209.5
Other	7.8		7.8
Total retail revenues	1,070.2		972.4
Wholesale	42.4		39.7
Resale	56.8		62.7
Steam	12.1		14.8
Other utility revenues	6.0		5.4
Total electric utility operating revenues	$	1,187.5	$	1,095.0

Natural Gas Utility Operating Revenues

The following tables disaggregate natural gas utility operating revenues into customer class:

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2022
Residential	$	502.5	$	465.5	$	161.3	$	1,129.3
Commercial and industrial	272.5		158.3		86.8		517.6
Total retail revenues	775.0		623.8		248.1		1,646.9
Transportation	25.5		80.9		13.9		120.3
Other utility revenues (1)	(53.7)		(24.8)		(23.8)		(102.3)
Total natural gas utility operating revenues	$	746.8	$	679.9	$	238.2	$	1,664.9

03/31/2022 Form 10-Q 11 WEC Energy Group, Inc.

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2021
Residential	$	347.6	$	333.9	$	87.9	$	769.4
Commercial and industrial	176.4		102.7		43.9		323.0
Total retail revenues	524.0		436.6		131.8		1,092.4
Transportation	24.4		74.2		11.0		109.6
Other utility revenues (1)	78.9		182.7		82.8		344.4
Total natural gas utility operating revenues	$	627.3	$	693.5	$	225.6	$	1,546.4

(1)Includes the revenues subject to the purchased gas recovery mechanisms of our utilities. The amounts for the three months ended March 31, 2021 reflect the higher natural gas costs that were incurred as a result of the extreme winter weather conditions in February 2021. As these amounts are billed to customers, they are reflected in retail revenues with an offsetting decrease in other utility revenues. In 2022, we continued to recover on natural gas costs we under-collected from our customers in 2021, related to the extreme weather. In addition, during the first quarter of 2022 we over-collected natural gas costs due to these costs being lower than what was anticipated in rates. See Note 21, Regulatory Environment, for more information.

Other Natural Gas Operating Revenues

We have other natural gas operating revenues from Bluewater, which is in our non-utility energy infrastructure segment. Bluewater has entered into long-term service agreements for natural gas storage services with WE, WPS, and WG, and also provides limited service to unaffiliated customers. All amounts associated with the service agreements with WE, WPS, and WG have been eliminated at the consolidated level.

Other Non-Utility Operating Revenues

Other non-utility operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Wind generation revenues	$	36.2	$	15.8
We Power revenues (1)	5.9		5.8
Appliance service revenues	4.6		4.7
Total other non-utility operating revenues	$	46.7	$	26.3

(1)As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected these carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as a contract liability, which is presented as deferred revenue, net on our balance sheets. We continually amortize the deferred carrying costs to revenues over the related lease term that We Power has with WE.

Other Operating Revenues

Other operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Late payment charges	$	13.6	$	15.0
Alternative revenues (1)	(6.0)		6.2
Other	0.9		1.2
Total other operating revenues	$	8.5	$	22.4

(1)Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. Negative amounts can also result from revenues to be refunded to customers subject to decoupling mechanisms, wholesale true-ups, conservation improvement rider true-ups, and certain late payment charges.

03/31/2022 Form 10-Q 12 WEC Energy Group, Inc.

NOTE 4—CREDIT LOSSES

Our exposure to credit losses is related to our accounts receivable and unbilled revenue balances, which are primarily generated from the sale of electricity and natural gas by our regulated utility operations. Credit losses associated with our utility operations are analyzed at the reportable segment level as we believe contract terms, political and economic risks, and the regulatory environment are similar at this level as our reportable segments are generally based on the geographic location of the underlying utility operations.

We have an accounts receivable and unbilled revenue balance associated with our non-utility energy infrastructure segment, related to the sale of electricity from our majority-owned wind generating facilities through agreements with several large high credit quality counterparties.

We evaluate the collectability of our accounts receivable and unbilled revenue balances considering a combination of factors. For some of our larger customers and also in circumstances where we become aware of a specific customer's inability to meet its financial obligations to us, we record a specific allowance for credit losses against amounts due in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we use the accounts receivable aging method to calculate an allowance for credit losses. Using this method, we classify accounts receivable into different aging buckets and calculate a reserve percentage for each aging bucket based upon historical loss rates. The calculated reserve percentages are updated on at least an annual basis, in order to ensure recent macroeconomic, political, and regulatory trends are captured in the calculation, to the extent possible. Risks identified that we do not believe are reflected in the calculated reserve percentages, are assessed on a quarterly basis to determine whether further adjustments are required.

We monitor our ongoing credit exposure through active review of counterparty accounts receivable balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. To the extent possible, we work with customers with past due balances to negotiate payment plans, but will disconnect customers for non-payment as allowed by our regulators, if necessary, and employ collection agencies and legal counsel to pursue recovery of defaulted receivables. For our larger customers, detailed credit review procedures may be performed in advance of any sales being made. We sometimes require letters of credit, parental guarantees, prepayments or other forms of credit assurance from our larger customers to mitigate credit risk.

We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at March 31, 2022 and December 31, 2021, by reportable segment.

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
March 31, 2022
Accounts receivable and unbilled revenues	$	1,072.2		$	612.8		$	125.7		$	1,810.7		$	17.1		$	8.5		$	1,836.3
Allowance for credit losses	85.7			107.0			7.9			200.6			—			—			200.6
Accounts receivable and unbilled revenues, net (1)	$	986.5		$	505.8		$	117.8		$	1,610.1		$	17.1		$	8.5		$	1,635.7
Total accounts receivable, net – past due greater than 90 days (1)	$	55.5		$	43.7		$	3.7		$	102.9		$	—		$	—		$	102.9
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	98.2		%	100.0		%	—		%	95.4		%	—		%	—		%	95.4		%

03/31/2022 Form 10-Q 13 WEC Energy Group, Inc.

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2021
Accounts receivable and unbilled revenues	$	1,053.1		$	523.1		$	105.7		$	1,681.9		$	17.0		$	5.1		$	1,704.0
Allowance for credit losses	84.0			105.5			8.8			198.3			—			—			198.3
Accounts receivable and unbilled revenues, net (1)	$	969.1		$	417.6		$	96.9		$	1,483.6		$	17.0		$	5.1		$	1,505.7
Total accounts receivable, net – past due greater than 90 days (1)	$	46.5		$	36.6		$	3.4		$	86.5		$	—		$	—		$	86.5
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.6		%	100.0		%	—		%	94.8		%	—		%	—		%	94.8		%

(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at March 31, 2022, $1,008.4 million, or 61.6%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

A rollforward of the allowance for credit losses by reportable segment for the three months ended March 31, 2022 and 2021 is included below:

Three Months Ended March 31, 2022 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2022	$	84.0	$	105.5	$	8.8	$	198.3
Provision for credit losses	11.8		11.3		0.2		23.3
Provision for credit losses deferred for future recovery or refund	8.8		12.1		—		20.9
Write-offs charged against the allowance	(28.8)		(27.3)		(1.4)		(57.5)
Recoveries of amounts previously written off	9.9		5.4		0.3		15.6
Balance at March 31, 2022	$	85.7	$	107.0	$	7.9	$	200.6

On a consolidated basis, there was a $2.3 million increase in the allowance for credit losses at March 31, 2022, compared to January 1, 2022, driven by an increase in past due accounts receivable balances at our Wisconsin and Illinois reportable segments. We believe that the higher year-over-year energy costs that customers were seeing, which were driven by high natural gas prices, contributed to the higher past due accounts receivable balances. An increase in past due balances is also a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31.

Three Months Ended March 31, 2021 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2021	$	102.1	$	111.6	$	6.4	$	220.1
Provision for credit losses	13.7		7.1		1.3		22.1
Provision for credit losses deferred for future recovery or refund	22.3		3.1		—		25.4
Write-offs charged against the allowance	(18.5)		(2.8)		(0.5)		(21.8)
Recoveries of amounts previously written off	9.9		3.0		0.4		13.3
Balance at March 31, 2021	$	129.5	$	122.0	$	7.6	$	259.1

The increase in the allowance for credit losses at March 31, 2021, compared to January 1, 2021, was driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by the continued economic disruptions caused by the COVID-19 pandemic, including continued high unemployment rates. Also, as a result of the winter moratorium rules and the COVID-19 pandemic and related regulatory orders we received, we were unable to disconnect any of our Wisconsin and Illinois residential customers in the first quarter of 2021 and during all of 2020.

03/31/2022 Form 10-Q 14 WEC Energy Group, Inc.

NOTE 5—REGULATORY ASSETS AND LIABILITIES

The following regulatory assets and liabilities were reflected on our balance sheets at March 31, 2022 and December 31, 2021. For more information on our regulatory assets and liabilities, see Note 6, Regulatory Assets and Liabilities, in our 2021 Annual Report on Form 10-K.

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets
Pension and OPEB costs	$	783.1	$	802.3
Plant retirement related items	714.8		722.3
Environmental remediation costs	618.8		630.9
Income tax related items	456.6		458.8
Asset retirement obligations	179.6		194.2
System support resource	128.4		129.5
Securitization	98.2		100.7
Energy costs recoverable through rate adjustments	70.1		85.4
MERC extraordinary natural gas costs	51.6		59.7
Uncollectible expense	47.6		42.6
Energy efficiency programs	20.4		22.0
Derivatives (1)	3.6		33.1
Other, net	82.8		85.6
Total regulatory assets	$	3,255.6	$	3,367.1
Balance sheet presentation
Other current assets	$	92.0	$	102.3
Regulatory assets	3,163.6		3,264.8
Total regulatory assets	$	3,255.6	$	3,367.1

(1)For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

(in millions)	March 31, 2022		December 31, 2021
Regulatory liabilities
Income tax related items	$	1,981.6	$	1,998.5
Removal costs	1,247.2		1,248.0
Pension and OPEB benefits	392.8		397.3
Derivatives (1)	245.3		124.1
Energy costs refundable through rate adjustments (2)	97.6		13.7
Electric transmission costs (3)	65.5		84.2
Uncollectible expense	29.7		37.1
Earnings sharing mechanisms (3)	22.5		28.4
Other, net	47.2		29.0
Total regulatory liabilities	$	4,129.4	$	3,960.3
Balance sheet presentation
Other current liabilities	$	96.8	$	14.3
Regulatory liabilities	4,032.6		3,946.0
Total regulatory liabilities	$	4,129.4	$	3,960.3

(1)    For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

(2)    The increase in these regulatory liabilities was primarily related to lower natural gas costs incurred in the first quarter of 2022, compared to what was anticipated in rates.

03/31/2022 Form 10-Q 15 WEC Energy Group, Inc.

(3)    The decrease in these regulatory liability balances was primarily related to the PSCW's approval of certain accounting treatments that allowed our Wisconsin utilities to forego applying for a 2022 base rate increase, and instead maintain base rates consistent with 2021 levels. Among the accounting treatments approved was the amortization of certain regulatory liability balances in 2022, to offset a portion of the forecasted revenue deficiency. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.

NOTE 6—PROPERTY, PLANT, AND EQUIPMENT

Wisconsin Segment Plant to be Retired

Columbia Units 1 and 2

As a result of a MISO ruling received in June 2021, retirement of the jointly-owned Columbia generating units 1 and 2 became probable. Columbia generating units 1 and 2 are expected to be retired by the end of 2023 and 2024, respectively. The net book value of WPS's ownership share of unit 1 and unit 2 was $87.9 million and $186.2 million, respectively, at March 31, 2022. These amounts were classified as plant to be retired within property, plant, and equipment on our balance sheets. These units are included in rate base, and WPS continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW.

Public Service Building and Steam Tunnel Assets

During a significant rain event in May 2020, an underground steam tunnel in downtown Milwaukee flooded and steam vented into WE’s PSB. The damage to the building and adjacent steam tunnel assets from the flooding and steam was extensive and required significant repairs and restorations. As of March 31, 2022, WE had incurred $95.3 million of costs related to these repairs and restorations. In 2020, WE received $20.0 million of insurance proceeds to cover a portion of these costs and wrote off $12.5 million of costs that we do not intend to seek recovery for through other operation and maintenance expense. In the first quarter of 2022, WE received $41.0 million of insurance proceeds as a result of a settlement that was reached in February 2022. The remaining $21.8 million of costs is expected to be recovered through rates.

In June 2021, we received approval from the PSCW to restore the PSB and adjacent steam tunnel assets and to defer the project costs, net of insurance proceeds, as a component of rate base. As such, and in light of the agreement with insurers noted above, we do not currently expect a significant impact to our future results of operations.

NOTE 7—COMMON EQUITY

Stock-Based Compensation

During the three months ended March 31, 2022, the Compensation Committee of our Board of Directors awarded the following stock-based compensation to our directors, officers, and certain other key employees:

Award Type	Number of Awards
Stock options (1)	437,269
Restricted shares (2)	72,211
Performance units	171,492

(1)Stock options awarded had a weighted-average exercise price of $96.04 and a weighted-average grant date fair value of $14.71 per option.

(2)Restricted shares awarded had a weighted-average grant date fair value of $96.04 per share.

Restrictions

Our ability as a holding company to pay common stock dividends primarily depends on the availability of funds received from our utility subsidiaries; We Power; Bluewater; ATC Holding LLC, which holds our ownership interest in ATC; and WECI. Various financing arrangements and regulatory requirements impose certain restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans, or advances. All of our utility subsidiaries, with the exception of UMERC and MGU, are prohibited from

03/31/2022 Form 10-Q 16 WEC Energy Group, Inc.

loaning funds to us, either directly or indirectly. See Note 11, Common Equity, in our 2021 Annual Report on Form 10-K for additional information on these and other restrictions.

We do not believe that these restrictions will materially affect our operations or limit any dividend payments in the foreseeable future.

Common Stock Dividends

On April 21, 2022, our Board of Directors declared a quarterly cash dividend of $0.7275 per share, payable on June 1, 2022, to shareholders of record on May 13, 2022.

NOTE 8—SHORT-TERM DEBT AND LINES OF CREDIT

The following table shows our short-term borrowings and their corresponding weighted-average interest rates:

(in millions, except percentages)	March 31, 2022			December 31, 2021
Commercial paper
Amount outstanding	$	1,448.3		$	1,896.1
Weighted-average interest rate on amounts outstanding	0.92		%	0.26		%
Operating expense loans
Amount outstanding (1)	$	1.7		$	0.9

(1)Coyote Ridge and Tatanka Ridge entered into operating expense loans. In accordance with their limited liability company operating agreements, they received loans from their noncontrolling interests in proportion to their ownership interests.

Our average amount of commercial paper borrowings based on daily outstanding balances during the three months ended March 31, 2022 was $1,663.9 million with a weighted-average interest rate during the period of 0.38%.

The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing programs, including remaining available capacity under these facilities:

(in millions)	Maturity	March 31, 2022
WEC Energy Group	September 2026	$	1,500.0
WE	September 2026	500.0
WPS (1)	September 2026	400.0
WG	September 2026	350.0
PGL	September 2026	350.0
Total short-term credit capacity		$	3,100.0
Less:
Letters of credit issued inside credit facilities		$	2.3
Commercial paper outstanding		1,448.3
Available capacity under existing agreements		$	1,649.4

(1)    In April 2022, WPS received approval from the PSCW to extend the maturity of its facility to September 2026.

NOTE 9—MATERIALS, SUPPLIES, AND INVENTORIES

Our inventory consisted of:

(in millions)	March 31, 2022		December 31, 2021
Materials and supplies	$	232.2	$	225.3
Fossil fuel	81.3		84.5
Natural gas in storage	55.3		326.0
Total	$	368.8	$	635.8

03/31/2022 Form 10-Q 17 WEC Energy Group, Inc.

PGL and NSG price natural gas storage injections at the calendar year average of the costs of natural gas supply purchased. Withdrawals from storage are priced on the LIFO cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. At March 31, 2022, we had a temporary LIFO liquidation credit of $130.7 million recorded within other current liabilities on our balance sheet. Due to seasonality requirements, PGL and NSG expect these interim reductions in LIFO layers to be replenished by year end.

Substantially all other materials and supplies, fossil fuel, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

NOTE 10—INCOME TAXES

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	145.5	21.0	%	$	122.8	21.0	%
State income taxes net of federal tax benefit	43.6		6.3	%	36.9		6.3	%
PTCs	(44.8)		(6.5)	%	(34.0)		(5.8)	%
Federal excess deferred tax amortization	(15.8)		(2.3)	%	(14.6)		(2.5)	%
Federal excess deferred tax amortization – Wisconsin unprotected	(0.3)		—	%	(30.3)		(5.2)	%
Uncertain tax positions	—		—	%	(8.2)		(1.4)	%
Other	(1.1)		(0.2)	%	2.3		0.4	%
Total income tax expense	$	127.1	18.3	%	$	74.9	12.8	%

The effective tax rate of 18.3% for the three months ended March 31, 2022, differs from the United States statutory federal income tax rate of 21%, primarily due to PTCs generated from ownership interests in wind generation facilities in our non-utility energy infrastructure segment and the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below. These items were partially offset by state income taxes.

The effective tax rate of 12.8% for the three months ended March 31, 2021, differs from the United States statutory federal income tax rate of 21%, primarily due to PTCs generated from ownership interests in wind generation facilities in our non-utility energy infrastructure segment and the recognition of certain unprotected deferred tax benefits created as a result of the Tax Legislation. Effective January 1, 2020, in accordance with the rate order received from the PSCW in December 2019, our Wisconsin utilities began amortizing the unprotected deferred tax benefits over periods ranging from two years to four years, to reduce near-term rate impacts to their customers. In addition, the impact of the protected benefits associated with the Tax Legislation, as discussed in more detail below, drove a decrease in the effective tax rate. These items were partially offset by state income taxes.

The Tax Legislation required our regulated utilities to remeasure their deferred income taxes and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization line above).

See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on unprotected tax benefits.

NOTE 11—FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

03/31/2022 Form 10-Q 18 WEC Energy Group, Inc.

Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods that result in management's best estimate of fair value. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. We primarily use a market approach for recurring fair value measurements and attempt to use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

When possible, we base the valuations of our assets and liabilities on quoted prices for identical assets and liabilities in active markets. These valuations are classified in Level 1. The valuations of certain contracts not classified as Level 1 may be based on quoted market prices received from counterparties and/or observable inputs for similar instruments. Transactions valued using these inputs are classified in Level 2. Certain derivatives are categorized in Level 3 due to the significance of unobservable or internally-developed inputs.

The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:

	March 31, 2022
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	176.9	$	3.0	$	—	$	179.9
FTRs	—		—		1.0		1.0
Coal contracts	—		38.2		—		38.2
Total derivative assets	$	176.9	$	41.2	$	1.0	$	219.1
Investments held in rabbi trust	$	59.5	$	—	$	—	$	59.5
Derivative liabilities
Natural gas contracts	$	—	$	1.4	$	—	$	1.4

	December 31, 2021
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	46.4	$	18.2	$	—	$	64.6
FTRs	—		—		2.4		2.4
Coal contracts	—		53.0		—		53.0
Total derivative assets	$	46.4	$	71.2	$	2.4	$	120.0
Investments held in rabbi trust	$	79.6	$	—	$	—	$	79.6
Derivative liabilities
Natural gas contracts	$	8.4	$	6.7	$	—	$	15.1

03/31/2022 Form 10-Q 19 WEC Energy Group, Inc.

The derivative assets and liabilities listed in the tables above include options, swaps, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO Energy and Operating Reserves Markets.

We hold investments in the Integrys rabbi trust. These investments are restricted as they can only be withdrawn from the trust to fund participants' benefits under the Integrys deferred compensation plan and certain Integrys non-qualified pension plans. These investments are included in other long-term assets on our balance sheets. During the three months ended March 31, 2022, we recorded $3.3 million of net unrealized losses in earnings related to the investments held at the end of the period, compared with $4.0 million of net unrealized gains recorded during the same quarter in 2021.

The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy:

	Three Months Ended March 31
(in millions)	2022		2021
Balance at the beginning of the period	$	2.4	$	2.4
Purchases	—		0.1
Settlements	(1.4)		(1.6)
Balance at the end of the period	$	1.0	$	0.9

Fair Value of Financial Instruments

The following table shows the financial instruments included on our balance sheets that were not recorded at fair value:

	March 31, 2022				December 31, 2021
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred stock of subsidiary	$	30.4	$	26.6	$	30.4	$	30.3
Long-term debt, including current portion (1)	13,549.7		13,519.8		13,563.4		14,819.4

(1)The carrying amount of long-term debt excludes finance lease obligations of $128.0 million and $129.7 million at March 31, 2022 and December 31, 2021, respectively.

The fair values of our long-term debt and preferred stock are categorized within Level 2 of the fair value hierarchy.

NOTE 12—DERIVATIVE INSTRUMENTS

We use derivatives as part of our risk management program to manage the risks associated with the price volatility of interest rates, purchased power, generation, and natural gas costs for the benefit of our customers and shareholders. Our approach is non-speculative and designed to mitigate risk. Regulated hedging programs are approved by our state regulators.

We record derivative instruments on our balance sheets as an asset or liability measured at fair value unless they qualify for the normal purchases and sales exception and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities.

03/31/2022 Form 10-Q 20 WEC Energy Group, Inc.

On our balance sheets, we classify derivative assets and liabilities as current or long-term based on the maturities of the underlying contracts. Derivative assets and liabilities not shown separately on our balance sheets are included in the other current and other long-term line items. The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below were designated as hedging instruments.

	March 31, 2022				December 31, 2021
(in millions)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Current
Natural gas contracts	$	169.6	$	1.4	$	60.6	$	14.0
FTRs	1.0		—		2.4		—
Coal contracts	33.7		—		44.0		—
Total current	204.3		1.4		107.0		14.0
Long-term
Natural gas contracts	10.3		—		4.0		1.1
Coal contracts	4.5		—		9.0		—
Total long-term	14.8		—		13.0		1.1
Total	$	219.1	$	1.4	$	120.0	$	15.1

Realized gains (losses) on derivatives not designated as hedging instruments are primarily recorded in cost of sales on the income statements. Our estimated notional sales volumes and realized gains (losses) were as follows:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
(in millions)	Volumes	Gains		Volumes	Gains (Losses)
Natural gas contracts	59.5 Dth	$	31.6	59.8 Dth	$	(7.5)
FTRs	7.0 MWh	1.0		8.4 MWh	2.1
Total		$	32.6		$	(5.4)

On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At March 31, 2022 and December 31, 2021, we had posted cash collateral of $14.0 million and $13.9 million, respectively. These amounts were recorded on our balance sheets in other current assets. At March 31, 2022 and December 31, 2021, we had also received cash collateral of $146.1 million and $13.2 million, respectively. These amounts were recorded on our balance sheets in other current liabilities.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:

	March 31, 2022					December 31, 2021
(in millions)	Derivative Assets			Derivative Liabilities		Derivative Assets			Derivative Liabilities
Gross amount recognized on the balance sheet	$	219.1		$	1.4	$	120.0		$	15.1
Gross amount not offset on the balance sheet	(139.5)		(1)	(0.2)		(15.2)		(2)	(9.2)		(3)
Net amount	$	79.6		$	1.2	$	104.8		$	5.9

(1)Includes cash collateral received of $139.3 million.

(2)Includes cash collateral received of $6.4 million.

(3)Includes cash collateral posted of $0.4 million.

Cash Flow Hedges

Until their expiration on November 15, 2021, we had two interest rate swaps with a combined notional value of $250.0 million to hedge the variable interest rate risk associated with our 2007 Junior Notes. The swaps provided a fixed interest rate of 4.9765% on $250.0 million of the $500.0 million of outstanding 2007 Junior Notes. As these swaps qualified for cash flow hedge accounting treatment, the related gains and losses were deferred in accumulated other comprehensive loss and were amortized to interest expense as interest was accrued on the 2007 Junior Notes.

03/31/2022 Form 10-Q 21 WEC Energy Group, Inc.

We previously entered into forward interest rate swap agreements to mitigate the interest rate exposure associated with the issuance of long-term debt related to the acquisition of Integrys. These swap agreements were settled in 2015, and we continue to amortize amounts out of accumulated other comprehensive loss into interest expense over the periods in which the interest costs are recognized in earnings.

The table below shows the amounts related to these cash flow hedges that were reclassified to interest expense, along with our total interest expense on the income statements:

	Three Months Ended March 31
(in millions)	2022		2021
Net derivative gain (loss) reclassified from accumulated other comprehensive loss to interest expense	$	0.1	$	(1.4)
Total interest expense line item on the income statements	117.6		119.5

We estimate that during the next twelve months $0.4 million will be reclassified from accumulated other comprehensive loss as a decrease to interest expense.

NOTE 13—GUARANTEES

The following table shows our outstanding guarantees:

	Total Amounts Committed at March 31, 2022		Expiration
(in millions)			Less Than 1 Year		1 to 3 Years		Over 3 Years
Standby letters of credit (1)	$	82.3	$	10.5	$	0.2	$	71.6
Surety bonds (2)	12.8		12.8		—		—
Other guarantees (3)	9.4		—		—		9.4
Total guarantees	$	104.5	$	23.3	$	0.2	$	81.0

(1)At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets.

(2)Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets.

(3)Related to workers compensation coverage for which a liability was recorded on our balance sheets.

NOTE 14—EMPLOYEE BENEFITS

The following tables show the components of net periodic benefit cost (credit) for our benefit plans.

	Pension Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	12.4	$	13.9
Interest cost	22.8		21.9
Expected return on plan assets	(52.7)		(50.6)
Loss on plan settlement	—		0.1
Amortization of prior service cost	0.4		0.4
Amortization of net actuarial loss	19.1		27.4
Net periodic benefit cost	$	2.0	$	13.1

03/31/2022 Form 10-Q 22 WEC Energy Group, Inc.

	OPEB Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	3.8	$	4.2
Interest cost	3.9		3.6
Expected return on plan assets	(17.2)		(16.4)
Amortization of prior service credit	(4.0)		(4.0)
Amortization of net actuarial gain	(6.0)		(5.7)
Net periodic benefit credit	$	(19.5)	$	(18.3)

During the three months ended March 31, 2022, we made contributions and payments of $3.1 million related to our pension plans and $0.5 million related to our OPEB plans. We expect to make contributions and payments of $8.0 million related to our pension plans and $2.1 million related to our OPEB plans during the remainder of 2022, dependent upon various factors affecting us, including our liquidity position and possible tax law changes.

NOTE 15—GOODWILL AND INTANGIBLES

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. The table below shows our goodwill balances by segment at March 31, 2022. We had no changes to the carrying amount of goodwill during the three months ended March 31, 2022.

(in millions)	Wisconsin		Illinois		Other States		Non-Utility Energy Infrastructure		Total
Goodwill balance (1)	$	2,104.3	$	758.7	$	183.2	$	6.6	$	3,052.8

(1)We had no accumulated impairment losses related to our goodwill as of March 31, 2022.

Intangible Assets

At March 31, 2022 and December 31, 2021, we had $5.7 million of indefinite-lived intangible assets primarily related to a MGU trade name obtained through an acquisition, which is included in other long-term assets on our balance sheets. We had no changes to the carrying amount of these intangible assets during the three months ended March 31, 2022.

Intangible Liabilities

The intangible liabilities below were all obtained through acquisitions by WECI and are classified as other long-term liabilities on our balance sheets.

	March 31, 2022						December 31, 2021
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
PPAs (1)	$	87.9	$	(8.5)	$	79.4	$	87.9	$	(6.5)	$	81.4
Proxy revenue swap (2)	7.2		(2.2)		5.0		7.2		(2.1)		5.1
Interconnection agreements (3)	4.7		(0.6)		4.1		4.7		(0.5)		4.2
Total intangible liabilities	$	99.8	$	(11.3)	$	88.5	$	99.8	$	(9.1)	$	90.7

(1)    Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, and Jayhawk expiring between 2030 and 2032. The weighted-average remaining useful life of the PPAs is 10 years.

(2)    Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is seven years.

(3)    Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 19 years.

03/31/2022 Form 10-Q 23 WEC Energy Group, Inc.

Amortization related to these intangibles for the three months ended March 31, 2022 and 2021, was $2.2 million and $1.9 million, respectively. Amortization for the next five years, including amounts recorded through March 31, 2022, is estimated to be:

	For the Years Ending December 31
(in millions)	2022		2023		2024		2025		2026
Amortization to be recorded in operating revenues	$	8.5	$	8.4	$	8.4	$	8.4	$	8.4
Amortization to be recorded in other operation and maintenance	0.2		0.2		0.2		0.2		0.2

NOTE 16—INVESTMENT IN TRANSMISSION AFFILIATES

We own approximately 60% of ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects. We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. The following tables provide a reconciliation of the changes in our investments in ATC and ATC Holdco:

	Three Months Ended March 31, 2022
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,766.9	$	22.5	$	1,789.4
Add: Earnings from equity method investment	41.0		0.7		41.7
Add: Capital contributions	21.1		—		21.1
Less: Distributions	34.0		—		34.0
Balance at end of period	$	1,795.0	$	23.2	$	1,818.2
	Three Months Ended March 31, 2021
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,733.5	$	30.8	$	1,764.3
Add: Earnings from equity method investment	41.7		0.9		42.6
Less: Distributions	33.4		—		33.4
Add: Other	0.1		—		0.1
Balance at end of period	$	1,741.9	$	31.7	$	1,773.6

We pay ATC for network transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. We are also required to initially fund the construction of transmission infrastructure upgrades needed for new generation projects. ATC owns these transmission assets and reimburses us for these costs when the new generation is placed in service.

The following table summarizes our significant related party transactions with ATC:

	Three Months Ended March 31
(in millions)	2022		2021
Charges to ATC for services and construction	$	6.2	$	6.0
Charges from ATC for network transmission services	91.1		92.6

Our balance sheets included the following receivables and payables for services provided to or received from ATC:

(in millions)	March 31, 2022		December 31, 2021
Accounts receivable for services provided to ATC	$	2.3	$	2.0
Accounts payable for services received from ATC	30.5		30.2
Amounts due from ATC for transmission infrastructure upgrades (1)	15.1		13.0

(1)The transmission infrastructure upgrades were primarily related to WE's and WPS's construction of their new solar projects, Badger Hollow II and Badger Hollow I, respectively.

03/31/2022 Form 10-Q 24 WEC Energy Group, Inc.

Summarized financial data for ATC is included in the tables below:

	Three Months Ended March 31
(in millions)	2022		2021
Income statement data
Operating revenues	$	191.0	$	188.7
Operating expenses	95.5		95.1
Other expense, net	28.0		28.5
Net income	$	67.5	$	65.1

(in millions)	March 31, 2022		December 31, 2021
Balance sheet data
Current assets	$	95.5	$	89.8
Noncurrent assets	5,706.8		5,628.1
Total assets	$	5,802.3	$	5,717.9
Current liabilities	$	421.0	$	436.9
Long-term debt	2,562.3		2,513.0
Other noncurrent liabilities	424.7		422.0
Members' equity	2,394.3		2,346.0
Total liabilities and members' equity	$	5,802.3	$	5,717.9

NOTE 17—SEGMENT INFORMATION

We use net income attributed to common shareholders to measure segment profitability and to allocate resources to our businesses. At March 31, 2022, we reported six segments, which are described below.

•The Wisconsin segment includes the electric and natural gas utility operations of WE, WPS, WG, and UMERC.

•The Illinois segment includes the natural gas utility operations of PGL and NSG.

•The other states segment includes the natural gas utility and non-utility operations of MERC and MGU.

•The electric transmission segment includes our approximate 60% ownership interest in ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects, and our approximate 75% ownership interest in ATC Holdco, which was formed to invest in transmission-related projects outside of ATC's traditional footprint.

•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 that provide approximately one-third of the current storage needs for our Wisconsin natural gas utilities, and

◦WECI, which holds our ownership interests in the following wind generating facilities:

▪90% ownership interest in Bishop Hill III, located in Henry County, Illinois,

▪80% ownership interest in Coyote Ridge, located in Brookings County, South Dakota,

▪90% ownership interest in Upstream, located in Antelope County, Nebraska,

▪90% ownership interest in Blooming Grove, located in McLean County, Illinois,

▪85% ownership interest in Tatanka Ridge, located in Deuel County, South Dakota, and

▪90% ownership interest in Jayhawk, located in Bourbon and Crawford counties, Kansas.

See Note 2, Acquisitions, for more information on Jayhawk.

•The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, the Peoples Energy, LLC holding company, Wispark, Wisvest LLC, Wisconsin Energy Capital Corporation, and WEC Business Services LLC.

03/31/2022 Form 10-Q 25 WEC Energy Group, Inc.

All of our operations are located within the United States. The following tables show summarized financial information related to our reportable segments for the three months ended March 31, 2022 and 2021:

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2022
External revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	—	$	42.6	$	0.2	$	—	$	2,908.1
Intersegment revenues	—		—		—		—		—		116.9		—		(116.9)		—
Other operation and maintenance	312.6		113.6		24.6		450.8		—		10.9		(5.7)		(1.6)		454.4
Depreciation and amortization	187.1		56.8		10.0		253.9		—		34.0		6.5		(16.3)		278.1
Equity in earnings of transmission affiliates	—		—		—		—		41.7		—		—		—		41.7
Interest expense	136.3		17.7		3.3		157.3		4.9		17.2		22.6		(84.4)		117.6
Income tax expense (benefit)	95.4		42.1		10.4		147.9		8.9		(4.9)		(24.8)		—		127.1
Net income	288.4		113.4		31.5		433.3		27.8		93.3		13.6		—		568.0
Net income attributed to common shareholders	288.1		113.4		31.5		433.0		27.8		91.5		13.6		—		565.9

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2021
External revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	—	$	22.9	$	0.1	$	—	$	2,691.4
Intersegment revenues	—		—		—		—		—		114.7		—		(114.7)		—
Other operation and maintenance	341.9		109.3		23.2		474.4		—		8.9		(1.8)		(1.6)		479.9
Depreciation and amortization	176.2		52.7		9.2		238.1		—		31.0		6.6		(14.3)		261.4
Equity in earnings of transmission affiliates	—		—		—		—		42.6		—		—		—		42.6
Interest expense	140.1		16.5		1.5		158.1		4.9		18.0		24.2		(85.7)		119.5
Income tax expense (benefit)	48.1		41.4		8.4		97.9		9.8		0.1		(32.9)		—		74.9
Net income	256.6		112.1		24.7		393.4		28.0		71.3		17.6		—		510.3
Net income attributed to common shareholders	256.3		112.1		24.7		393.1		28.0		71.4		17.6		—		510.1

NOTE 18—VARIABLE INTEREST ENTITIES

The primary beneficiary of a VIE must consolidate the entity's assets and liabilities. In addition, certain disclosures are required for significant interest holders in VIEs.

We assess our relationships with potential VIEs, such as our coal suppliers, natural gas suppliers, coal transporters, natural gas transporters, and other counterparties related to PPAs, investments, and joint ventures. In making this assessment, we consider,

03/31/2022 Form 10-Q 26 WEC Energy Group, Inc.

along with other factors, the potential that our contracts or other arrangements provide subordinated financial support, the obligation to absorb the entity's losses, the right to receive residual returns of the entity, and the power to direct the activities that most significantly impact the entity's economic performance.

WEPCo Environmental Trust Finance I, LLC

In November 2020, the PSCW issued a financing order approving the securitization of $100 million of undepreciated environmental control costs related to WE's retired Pleasant Prairie power plant, the carrying costs accrued on the $100 million during the securitization process, and the related financing fees. The financing order also authorized WE to form WEPCo Environmental Trust, a bankruptcy-remote special purpose entity, for the sole purpose of issuing ETBs to recover the costs approved in the financing order. WEPCo Environmental Trust is a wholly-owned subsidiary of WE.

In May 2021, WEPCo Environmental Trust issued ETBs and used the proceeds to acquire environmental control property from WE. The environmental control property is recorded as a regulatory asset on our balance sheets and includes the right to impose, collect, and receive a non-bypassable environmental control charge from WE's retail electric distribution customers until the ETBs are paid in full and all financing costs have been recovered. The ETBs are secured by the environmental control property. Cash collections from the environmental control charge, and funds on deposit in trust accounts, are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to WE or any of WE's affiliates other than WEPCo Environmental Trust.

WE acts as the servicer of the environmental control property on behalf of WEPCo Environmental Trust and is responsible for metering, calculating, billing, and collecting the environmental control charge. As necessary, WE is authorized to implement periodic adjustments of the environmental control charge. The adjustments are designed to ensure the timely payment of principal, interest, and other ongoing financing costs. WE remits all collections of the environmental control charge to an indenture trustee of WEPCo Environmental Trust.

WEPCo Environmental Trust is a VIE primarily because its equity capitalization is insufficient to support its operations. As described above, WE has the power to direct the activities that most significantly impact WEPCo Environmental Trust's economic performance. Therefore, WE is considered the primary beneficiary of WEPCo Environmental Trust, and consolidation is required.

The following table summarizes the impact of WEPCo Environmental Trust on our balance sheet.

(in millions)	March 31, 2022		December 31, 2021
Assets
Other current assets (restricted cash)	$	5.6	$	2.4
Regulatory assets	98.2		100.7
Other long-term assets (restricted cash)	0.6		0.6
Liabilities
Current portion of long-term debt	8.8		8.8
Accounts payable	0.1		—
Other current liabilities (accrued interest)	0.5		0.1
Long-term debt	102.8		102.7

Investment in Transmission Affiliates

We own approximately 60% of ATC, a for-profit, electric transmission company regulated by the FERC and certain state regulatory commissions. We have determined that ATC is a VIE but consolidation is not required since we are not ATC's primary beneficiary. As a result of our limited voting rights, we do not have the power to direct the activities that most significantly impact ATC's economic performance. Therefore, we account for ATC as an equity method investment. At March 31, 2022 and December 31, 2021, our equity investment in ATC was $1,795.0 million and $1,766.9 million, respectively, which approximates our maximum exposure to loss as a result of our involvement with ATC.

We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. We have determined that ATC Holdco is a VIE but consolidation is not required since we are not ATC Holdco's primary beneficiary. As a result of our limited voting rights, we do not have the power to direct the activities that most significantly impact ATC Holdco's economic performance. Therefore, we account for ATC Holdco as an equity

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method investment. At March 31, 2022 and December 31, 2021, our equity investment in ATC Holdco was $23.2 million and $22.5 million, respectively, which approximates our maximum exposure to loss as a result of our involvement with ATC Holdco.

See Note 16, Investment in Transmission Affiliates, for more information, including any significant assets and liabilities related to ATC and ATC Holdco recorded on our balance sheets.

Power Purchase Commitment

WE has a PPA with LSP-Whitewater Limited Partnership that represents a variable interest. This agreement is for 236.5 MWs of firm capacity from a natural gas-fired cogeneration facility, and we account for it as a finance lease. The agreement expires on May 31, 2022 and includes no minimum energy requirements over the remaining term. We have examined the risks of the entity, including operations, maintenance, dispatch, financing, fuel costs, and other factors, and have determined that we are not the primary beneficiary of the entity. We do not hold an equity or debt interest in the entity, and there is no residual guarantee associated with the PPA.

In November 2021, WE entered into a tolling agreement with LSP-Whitewater Limited Partnership that commences on June 1, 2022 upon the expiration of the PPA. Concurrent with the execution of the tolling agreement, WE and WPS also entered into an agreement to purchase the natural gas-fired cogeneration facility for $72.7 million. This purchase agreement is subject to regulatory approval by the PSCW, which is expected by the end of 2022. The tolling agreement extends until the earlier of the closing of the asset purchase or December 31, 2022. Since the terms of the tolling agreement are substantially similar to the terms of the PPA, we have determined that we are still not the primary beneficiary of the entity, and we will continue to account for the PPA and tolling agreement as a finance lease.

We have $3.9 million of required capacity payments over the remaining term of the PPA and tolling agreement. We believe that the required capacity payments under the agreements will continue to be recoverable in rates, and our maximum exposure to loss is limited to these capacity payments.

NOTE 19—COMMITMENTS AND CONTINGENCIES

We and our subsidiaries have significant commitments and contingencies arising from our operations, including those related to unconditional purchase obligations, environmental matters, and enforcement and litigation matters.

Unconditional Purchase Obligations

Our electric utilities have obligations to distribute and sell electricity to their customers, and our natural gas utilities have obligations to distribute and sell natural gas to their customers. The utilities expect to recover costs related to these obligations in future customer rates. In order to meet these obligations, we routinely enter into long-term purchase and sale commitments for various quantities and lengths of time.

The wind generation facilities that are part of our non-utility energy infrastructure segment have obligations to distribute and sell electricity through long-term offtake agreements with their customers for all of the energy produced. In order to support these sales obligations, these companies enter into easements and other service agreements associated with the wind generating facilities.

Our minimum future commitments related to these purchase obligations as of March 31, 2022, including those of our subsidiaries, were approximately $10.5 billion.

Environmental Matters

Consistent with other companies in the energy industry, we face significant ongoing environmental compliance and remediation obligations related to current and past operations. Specific environmental issues affecting us include, but are not limited to, current and future regulation of air emissions such as sulfur dioxide, NOx, fine particulates, mercury, and GHGs; water intake and discharges; management of coal combustion products such as fly ash; and remediation of impacted properties, including former manufactured gas plant sites.

03/31/2022 Form 10-Q 28 WEC Energy Group, Inc.

Air Quality

Cross State Air Pollution Rule – Good Neighbor Plan

The EPA is proposing to update and expand the Cross State Air Pollution Rule to regulate NOx emissions in 25 states as part of the “good neighbor provision." As part of the proposed rule, expected to take effect in May 2023, the EPA would establish a new trading budget that would impose lower NOx emissions budgets on states, at a level that the EPA determined to be achievable through existing emissions controls as well as planned plant retirements.

Based on a review of our existing units' 2020 and 2021 actual ozone season emissions and projected future emissions versus proposed NOx ozone season allocations, we anticipate that we should be able to comply with the expanded rule requirements without procuring additional allowances on the open market.

Our RICE units in the Upper Peninsula of Michigan and planned RICE units in Wisconsin are not subject to this rule as proposed as each unit is expected to be less than 25 MW. We will closely monitor whether the EPA expands coverage of the rule to sources between 15 MW and 25 MW in the final rule. We are evaluating whether our engines for natural gas distribution operations in Michigan and Illinois are subject to the emission limits and operational requirements of the rule beginning in 2026.

National Ambient Air Quality Standards

Ozone

After completing its review of the 2008 ozone standard, the EPA released a final rule in October 2015, creating a more stringent standard than the 2008 NAAQS. The 2015 ozone standard lowered the 8-hour limit for ground-level ozone. In December 2020, the EPA completed its 5-year review of the ozone standard and issued a final decision to retain, without any changes, the existing 2015 standard. Under Executive Order 13990, the Biden Administration ordered that all agencies review existing regulations, orders, guidance documents, policies, and similar actions promulgated, issued, or adopted between January 20, 2017 and January 20, 2021. In October 2021, the EPA announced that it will reconsider the December 2020 decision to retain the 2015 ozone standards with no changes and that it is targeting the end of 2023 to complete this reconsideration.

The EPA issued final nonattainment area designations for the 2015 ozone standard in April 2018. The following counties within our Wisconsin service territories were designated as partial nonattainment: Door, Kenosha, Sheboygan, Manitowoc, and Northern Milwaukee/Ozaukee. The area designations were challenged in the D.C. Circuit Court of Appeals in Clean Wisconsin et al. v. U.S. Environmental Protection Agency. A decision was issued in July 2020 remanding the rule to the EPA for further evaluation. As a result of the July 2020 remand, in June 2021, the EPA published its final action to revise the nonattainment area designations and/or boundaries for 13 counties associated with six nonattainment areas, including several in Illinois and Wisconsin. Under the new designations, all of Milwaukee and Ozaukee counties are now listed as nonattainment and portions of Racine, Waukesha, and Washington counties have been added to the nonattainment area. Additionally, the Chicago, Illinois, Indiana, and Wisconsin nonattainment area now includes an expanded portion of Kenosha County, and the partial nonattainment areas of Sheboygan, Door, and Manitowoc counties have also been expanded. Preliminary 2019-2021 monitoring data indicates that the Milwaukee and Chicago nonattainment areas will likely be adjusted to "moderate" nonattainment for the 2015 standard.

In February 2022, revisions to the Wisconsin Administrative Code to adopt the 2015 standard were finalized. The amended regulations adopted the standards and incorporated by reference the federal air pollution monitoring requirements related to the standard. We believe that we are well positioned to meet the requirements associated with the 2015 ozone standard and do not expect to incur significant costs to comply with the associated state and federal rules.

Particulate Matter

In December 2020, the EPA completed its 5-year review of the 2012 annual and 24-hour standards for fine particulate matter. The EPA determined that no revisions were necessary to the current standard. This determination was also subject to review under Executive Order 13990 and in June 2021, the EPA announced it would reconsider the December 2020 decision. Under the Biden Administration's policy review, the EPA concluded that the scientific evidence and information from the December 2020 determination supports revising the level of the annual standard for the particulate matter NAAQS to below the current level of 12 micrograms per cubic meter, while retaining the 24-hour standard. In March 2022, the EPA’s CASAC sent a letter to the EPA finalizing its peer review of the particulate matter standards. Based on their review, the majority of the members of the CASAC

03/31/2022 Form 10-Q 29 WEC Energy Group, Inc.

found that lowering the annual standard to within a range of 8 to 10 micrograms per cubic meter was appropriate, while a minority of the members of the committee found that a range of 10 to 11 micrograms per cubic meter would be appropriate. Additionally, a majority of the CASAC members favored lowering the 24-hour standard, while a minority concurred with EPA’s preliminary conclusion to retain the 24-hour standard without revision.

A proposed rule is expected in summer 2022, and a final rule is expected in spring 2023. All counties within our service territories are in attainment with the current 2012 standards. If the EPA lowers the annual standard to 10 or 11 micrograms per cubic meter, our generating facilities within our service territories should remain in attainment. If the EPA lowers it to below 10 micrograms per cubic meter, there could be some non-attainment areas that may affect permitting of some smaller ancillary equipment located at our facilities.

Climate Change

The ACE rule, which replaced the Clean Power Plan, was vacated by the D.C. Circuit Court of Appeals in January 2021. In October 2021, the Supreme Court agreed to review the D.C. Circuit Court's ruling vacating the EPA's ACE rule. The Supreme Court is reviewing a number of issues regarding the scope of the EPA's regulatory authority to utilize Section 111(d) of the CAA to address CO2 emissions. In February 2022, the Supreme Court heard oral arguments, and a decision is expected this summer.

In January 2021, the EPA finalized a rule to revise the New Source Performance Standards for GHG emissions from new, modified, and reconstructed fossil-fueled power plants; however, it was vacated by the D.C. Circuit Court of Appeals in April 2021. The EPA has signaled that a rule replacement is expected by the end of 2022. We continue to move forward on the ESG Progress Plan, which is heavily focused on reducing GHG emissions.

Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and clean natural gas-fueled generation. We have already retired more than 1,800 MW of coal-fired generation since the beginning of 2018. Through our ESG Progress Plan, we expect to retire approximately 1,600 MW of additional fossil-fueled generation by the end of 2025, which includes the planned retirements in 2023-2024 of OCPP Units 5-8 and the jointly-owned Columbia Units 1-2. In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, both from a 2005 baseline. We expect to achieve these goals by making operating refinements, retiring less efficient generating units, and executing our capital plan. Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

We also continue to reduce methane emissions by improving our natural gas distribution system. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our utility systems.

We are required to report our CO2 equivalent emissions from the electric generating facilities we operate under the EPA Greenhouse Gases Reporting Program. We reported CO2 equivalent emissions of 22.0 million metric tonnes to the EPA for 2021. The level of CO2 and other GHG emissions varies from year to year and is dependent on the level of electric generation and mix of fuel sources, which is determined primarily by demand, the availability of the generating units, the unit cost of fuel consumed, and how our units are dispatched by MISO.

We are also required to report CO2 equivalent emissions related to the natural gas that our natural gas utilities distribute and sell. We reported aggregated CO2 equivalent emissions of 26.0 million metric tonnes to the EPA for 2021.

Water Quality

Clean Water Act Cooling Water Intake Structure Rule

In August 2014, the EPA issued a final regulation under Section 316(b) of the Clean Water Act that requires the location, design, construction, and capacity of cooling water intake structures at existing power plants to reflect the BTA for minimizing adverse environmental impacts. The federal rule became effective in October 2014 and applies to all of our existing generating facilities with cooling water intake structures, except for the ERGS units, which were permitted and received a final BTA determination under the rules governing new facilities. In 2016, the WDNR initiated a state rulemaking process to incorporate the federal Section 316(b) requirements into the Wisconsin Administrative Code. This new state rule, NR 111, became effective in June 2020, and the WDNR

03/31/2022 Form 10-Q 30 WEC Energy Group, Inc.

will apply it when establishing BTA requirements for cooling water intake structures at existing facilities. These BTA requirements are incorporated into WPDES permits for WE and WPS facilities.

We have received a final BTA determination for Valley power plant. We have received interim BTA determinations for PWGS, OCPP Units 5-8 and Weston Units 2, 3, and 4. We believe that existing technology at the PWGS satisfies the BTA requirements; however, a final determination will not be made until the WPDES permit is renewed for this facility, which is expected to be by the third quarter of 2022. We also believe that existing technology installed at the OCPP facility meets the BTA requirements; however, it is anticipated that these four generating units will be retired prior to the WDNR making a final BTA decision. In addition, we believe that existing technology installed at the Weston facility will result in a final BTA determination when the WPDES permit is renewed in 2023.

As a result of past capital investments completed to address Section 316(b) compliance at WE and WPS, we believe our fleet overall is well positioned to continue to meet this regulation and do not expect to incur significant additional compliance costs.

Steam Electric Effluent Limitation Guidelines

The EPA's final 2015 ELG rule took effect in January 2016 and was modified in 2020 to revise the treatment technology requirements related to BATW and wet FGD wastewaters at existing facilities. This rule created new requirements for several types of power plant wastewaters. The two new requirements that affect WE and WPS relate to discharge limits for BATW and wet FGD wastewater. Our power plant facilities already have advanced wastewater treatment technologies installed that meet many of the discharge limits established by this rule. There will, however, need to be facility modifications to meet water permit requirements for the BATW system at Weston Unit 3, which is expected to be completed by December 2023. Modifications to OC 7 and OC 8 were completed and placed in-service in mid-2021. Wastewater treatment system modifications also will be required for wet FGD discharges and site wastewater from the ERGS units. Based on engineering cost estimates, we expect that compliance with the ELG rule will require an additional $100 million in capital investment. In December 2021, the PSCW Division of Energy Regulation and Analysis issued a Certificate of Authority approving the ERGS FGD wastewater treatment system modification. The BATW modifications do not require PSCW approval prior to construction. All of these ELG required projects are either in-service or are on track for completion by the WPDES permit deadline in December 2023.

In July 2021, the EPA announced that it intends to initiate rulemaking to revise the ELG Rule as modified in 2020. The EPA has stated that the ELG Rule will continue to be implemented and enforced while the agency pursues this rulemaking process. The EPA plans to propose a revised rule in the fall of 2022.

Waters of the United States

In December 2021, the EPA and the United States Army Corps of Engineers together released a proposed rule to repeal the April 2020 Navigable Waters Protection Rule that defined WOTUS. The purpose of this proposed rule will be to restore regulations defining WOTUS that were in place prior to 2015 and to update certain provisions to be consistent with relevant Supreme Court decisions. The pre-2015 approach involves applying factors established through case law and agency precedents to determine whether a wetland or surface drainage feature is subject to federal jurisdiction. In January 2022, the Supreme Court granted certiorari in a case to evaluate the proper test for determining whether wetlands are WOTUS. At this point, our projects requiring federal permits are moving ahead, but we are monitoring to better understand potential future impacts. This case, once decided, should provide clarity regarding the definition of WOTUS. We will continue to monitor this litigation and any subsequent agency action.

Land Quality

Manufactured Gas Plant Remediation

We have identified sites at which our utilities or a predecessor company owned or operated a manufactured gas plant or stored manufactured gas. We have also identified other sites that may have been impacted by historical manufactured gas plant activities. Our natural gas utilities are responsible for the environmental remediation of these sites, some of which are in the EPA Superfund Alternative Approach Program. We are also working with various state jurisdictions in our investigation and remediation planning. These sites are at various stages of investigation, monitoring, remediation, and closure.

03/31/2022 Form 10-Q 31 WEC Energy Group, Inc.

In addition, we are coordinating the investigation and cleanup of some of these sites subject to the jurisdiction of the EPA under what is called a "multisite" program. This program involves prioritizing the work to be done at the sites, preparation and approval of documents common to all of the sites, and use of a consistent approach in selecting remedies. At this time, we cannot estimate future remediation costs associated with these sites beyond those described below.

The future costs for detailed site investigation, future remediation, and monitoring are dependent upon several variables including, among other things, the extent of remediation, changes in technology, and changes in regulation. Historically, our regulators have allowed us to recover incurred costs, net of insurance recoveries and recoveries from potentially responsible parties, associated with the remediation of manufactured gas plant sites. Accordingly, we have established regulatory assets for costs associated with these sites.

We have established the following regulatory assets and reserves for manufactured gas plant sites:

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets	$	618.8	$	630.9
Reserves for future environmental remediation	517.2		532.6

Enforcement and Litigation Matters

We and our subsidiaries are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although we are unable to predict the outcome of these matters, management believes that appropriate reserves have been established and that final settlement of these actions will not have a material impact on our financial condition or results of operations.

Consent Decrees

Wisconsin Public Service Corporation – Weston and Pulliam Power Plants

In November 2009, the EPA issued an NOV to WPS, which alleged violations of the CAA's New Source Review requirements relating to certain projects completed at the Weston and Pulliam power plants from 1994 to 2009. WPS entered into a Consent Decree with the EPA resolving this NOV. This Consent Decree was entered by the United States District Court for the Eastern District of Wisconsin in March 2013. With the retirement of Pulliam Units 7 and 8 in October 2018, WPS completed the mitigation projects required by the Consent Decree and received a completeness letter from the EPA in October 2018. We are working with the EPA on a closeout process for the Consent Decree and expect that process to be completed in 2023.

Joint Ownership Power Plants – Columbia and Edgewater

In December 2009, the EPA issued an NOV to Wisconsin Power and Light Company, the operator of the Columbia and Edgewater plants, and the other joint owners of these plants, including Madison Gas and Electric Company, WE (former co-owner of an Edgewater unit), and WPS. The NOV alleged violations of the CAA's New Source Review requirements related to certain projects completed at those plants. WPS, along with Wisconsin Power and Light Company, Madison Gas and Electric Company, and WE, entered into a Consent Decree with the EPA resolving this NOV. This Consent Decree was entered by the United States District Court for the Western District of Wisconsin in June 2013. As a result of the continued implementation of the Consent Decree related to the jointly owned Columbia and Edgewater plants, the Edgewater 4 generating unit was retired in September 2018. Wisconsin Power and Light Company expects to start the process to close out this Consent Decree in early 2023.

NOTE 20—SUPPLEMENTAL CASH FLOW INFORMATION

	Three Months Ended March 31
(in millions)	2022		2021
Cash paid for interest, net of amount capitalized	$	68.3	$	76.8
Cash paid (received) for income taxes, net	0.7		(2.5)
Significant non-cash investing and financing transactions:
Accounts payable related to construction costs	118.7		97.8
Increase in receivable related to insurance proceeds	0.3		2.7

03/31/2022 Form 10-Q 32 WEC Energy Group, Inc.

The statements of cash flows include our activity related to cash, cash equivalents, and restricted cash. Our restricted cash primarily consists of the cash held in the Integrys rabbi trust, which is used to fund participants' benefits under the Integrys deferred compensation plan and certain Integrys non-qualified pension plans. All assets held within the rabbi trust are restricted as they can only be withdrawn from the trust to make qualifying benefit payments. Our restricted cash also consists of cash on deposit in financial institutions that is restricted to satisfy the requirements of certain debt agreements at WEC Infrastructure Wind Holding I LLC and WEPCo Environmental Trust. The restricted cash we received when WECI acquired ownership interests in certain wind generation projects is included in our restricted cash as well. This cash is restricted as it can only be used to pay for any remaining costs associated with the construction of the wind generation facilities.

The following table reconciles the cash, cash equivalents, and restricted cash amounts reported within the balance sheets to the total of these amounts shown on the statements of cash flows:

(in millions)	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	33.8	$	16.3
Restricted cash included in other current assets	31.8		19.6
Restricted cash included in other long term assets	54.0		51.6
Cash, cash equivalents, and restricted cash	$	119.6	$	87.5

NOTE 21—REGULATORY ENVIRONMENT

Recovery of Natural Gas Costs

Due to the cold temperatures, wind, snow, and ice throughout the central part of the country during February 2021, the cost of gas purchased for our natural gas utility customers was temporarily driven significantly higher than our normal winter weather expectations. All of our utilities have regulatory mechanisms in place for recovering all prudently incurred gas costs.

In March 2021, WE and WG received approval from the PSCW to recover approximately $54 million and $24 million, respectively, of natural gas costs in excess of the benchmark set in their GCRMs over a period of three months, beginning in April 2021. In March 2021, WPS also filed its revised natural gas rate sheets with the PSCW reflecting approximately $28 million of natural gas costs in excess of the benchmark set in its GCRM. WPS also recovered these excess costs over a period of three months, beginning in April 2021.

PGL and NSG incurred approximately $131 million and $10 million, respectively, of natural gas costs in February 2021 in excess of the amounts included in their rates. These costs were recovered over a period of 12 months, which started on April 1, 2021. PGL's and NSG's natural gas costs are being reviewed for prudency by the ICC as part of their annual natural gas cost reconciliation. The ICC could order the refund of any costs determined to be imprudent as part of the reconciliation. A decision regarding this review is expected by the end of 2022.

In February 2021, MERC incurred approximately $75 million of natural gas costs in excess of the benchmark set in its GCRM. In August 2021, the MPUC issued a written order approving a joint proposal filed by MERC and four other Minnesota utilities to recover their respective excess natural gas costs. MERC will recover $10 million of these costs through its annual natural gas true-up process over a period of 12 months, and the remaining $65 million over 27 months, both of which started in September 2021. Recovery of these costs and the issue of prudence has been referred to a contested-case proceeding. As a result of the proceeding, the MPUC could disallow recovery or order the refund of any costs determined to be imprudent. A decision regarding this review is expected during the third quarter of 2022.

Natural gas costs incurred at MGU and UMERC in excess of the amount included in their respective rates were not significant.

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Wisconsin Electric Power Company, Wisconsin Public Service Corporation, and Wisconsin Gas LLC

2023 and 2024 Rates

In April 2022, WE, WPS, and WG filed requests with the PSCW to increase their retail electric, natural gas, and steam rates, as applicable, effective January 1, 2023. The requests reflected the following:

	WE					WPS					WG
Proposed 2023 rate increase
Electric	$	260.5	million	/	8.4%	$	73.9	million	/	6.2%	N/A
Gas	$	50.7	million	/	10.7%	$	30.3	million	/	8.3%	$	60.1	million	/	8.3%
Steam	$	3.3	million	/	15.5%	N/A					N/A
Proposed ROE (1)	10.0%					10.0%					10.2%
Proposed common equity component average on a financial basis (1)	53.0%					53.0%					53.0%

(1)    The proposed ROEs are consistent with each utilities' currently authorized ROE. The common equity component average for each utility is currently 52.5%.

The primary drivers of the requested increases in electric rates are capital investments in new wind, solar, and battery storage; capital investments in natural gas generation; reliability investments, including grid hardening projects to bury power lines and strengthen WE's distribution system against severe weather; and changes in wholesale business with other utilities. Many of these investments have already been approved by the PSCW.

The requested increases in natural gas rates primarily relate to capital investments previously approved by the PSCW, including LNG storage for our natural gas distribution system.

The utilities also proposed continuing to use an earnings sharing mechanism. Under the proposed earnings sharing mechanism, if the utility earns above its authorized ROE: (i) the utility would retain 100.0% of earnings for the first 25 basis points above the authorized ROE; (ii) 50.0% of the next 50 basis points would be required to be refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings would be required to be refunded to ratepayers.

WE and WPS are seeking a limited rate re-opener for 2024 to address additional revenue requirements associated with generation projects that are expected to be placed into service in 2023 and 2024. In addition, WE and WG are requesting a limited rate re-opener for 2024 to address additional revenue requirements associated with LNG projects that are expected to be placed into service in 2023 and 2024, respectively.

We expect a decision from the PSCW in the fourth quarter of 2022, with any rate adjustments expected to be effective January 1, 2023.

The Peoples Gas Light and Coke Company

Qualifying Infrastructure Plant Rider

In July 2013, Illinois Public Act 98-0057, The Natural Gas Consumer, Safety & Reliability Act, became law. This law provides natural gas utilities with a cost recovery mechanism that allows collection, through a surcharge on customer bills, of prudently incurred costs to upgrade Illinois natural gas infrastructure. In January 2014, the ICC approved a QIP rider for PGL, which is in effect through 2023.

PGL's QIP rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency. In March 2022, PGL filed its 2021 reconciliation with the ICC, which, along with the 2020, 2019, 2018, 2017, and 2016 reconciliations, are still pending.

As of March 31, 2022, there can be no assurance that all costs incurred under PGL's QIP rider during the open reconciliation years will be deemed recoverable by the ICC.

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NOTE 22—NEW ACCOUNTING PRONOUNCEMENTS

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

Government Assistance

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832). The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of: (i) the types of assistance received; (ii) an entity’s accounting for the assistance; and (iii) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. We plan to adopt this pronouncement for our fiscal year ending on December 31, 2022, and we are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

03/31/2022 Form 10-Q 35 WEC Energy Group, Inc.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CORPORATE DEVELOPMENTS

The following discussion should be read in conjunction with the accompanying unaudited financial statements and related notes and our 2021 Annual Report on Form 10-K.

Introduction

We are a diversified holding company with natural gas and electric utility operations (serving customers in Wisconsin, Illinois, Michigan, and Minnesota), an approximately 60% equity ownership interest in American Transmission Company LLC (ATC) (a for-profit electric transmission company regulated by the Federal Energy Regulatory Commission and certain state regulatory commissions), and non-utility energy infrastructure operations through W.E. Power, LLC (which owns generation assets in Wisconsin), Bluewater Natural Gas Holding, LLC (which owns underground natural gas storage facilities in Michigan), and WEC Infrastructure LLC (WECI), which holds ownership interests in several wind generating facilities.

Corporate Strategy

Our goal is to continue to build and sustain long-term value for our shareholders and customers by focusing on the fundamentals of our business: environmental stewardship; reliability; operating efficiency; financial discipline; exceptional customer care; and safety. Our capital investment plan for efficiency, sustainability and growth, referred to as our ESG Progress Plan, provides a roadmap for us to achieve this goal. It is an aggressive plan to cut emissions, maintain superior reliability, deliver significant savings for customers, and grow our investment in the future of energy.

Throughout our strategic planning process, we take into account important developments, risks and opportunities, including new technologies, customer preferences and affordability, energy resiliency efforts, and sustainability. We published the results of a priority sustainability issue assessment in 2020, identifying the issues that are most important to our company and its stakeholders over the short and long terms. Our risk and priority assessments have formed our direction as a company.

Creating a Sustainable Future

Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and clean natural gas-fired generation. When taken together, the retirements and new investments should better balance our supply with our demand, while maintaining reliable, affordable energy for our customers. The retirements will contribute to meeting our goals to reduce carbon dioxide (CO2) emissions from our electric generation.

In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, both from a 2005 baseline. We expect to achieve these goals by making operating refinements, retiring less efficient generating units, and executing our capital plan. Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

As part of our path toward these goals, we are exploring co-firing with natural gas at our ERGS coal-fired units. By the end of 2030, we expect our use of coal will account for less than 5% of the power we supply to our customers, and we believe we will be in a position to eliminate coal as an energy source by the end of 2035.

We already have retired more than 1,800 megawatts (MW) of coal-fired generation since the beginning of 2018, which included the 2019 retirement of the Presque Isle power plant as well as the 2018 retirements of the Pleasant Prairie power plant, the Pulliam power plant, and the jointly-owned Edgewater Unit 4 generating units. Through our ESG Progress Plan, we expect to retire approximately 1,600 MW of additional fossil-fueled generation by the end of 2025, which includes the planned retirements in 2023-2024 of Oak Creek Power Plant Units 5-8 and the jointly-owned Columbia Units 1-2.

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In addition to retiring these older, fossil-fueled plants, we expect to invest approximately $3.5 billion from 2022-2026 in regulated renewable energy in Wisconsin. Our plan is to replace a portion of the retired capacity by building and owning zero-carbon-emitting renewable generation facilities that are anticipated to include the following new investments:

•1,400 MW of utility-scale solar;

•800 MW of battery storage; and

•100 MW of wind.

We also plan on investing in a combination of clean, natural gas-fired generation, including:

•100 MW of reciprocating internal combustion engine (RICE) natural gas-fueled generation;

•the planned purchase of up to 200 MW of capacity in the West Riverside Energy Center — a new, combined-cycle natural gas plant completed by Alliant Energy in Wisconsin; and

•the planned purchase of the Whitewater Cogeneration Facility, a natural gas-fired combined cycle electric generating facility with a capacity of 236.5 MW.

The new investments discussed above are in addition to the renewable projects currently underway. For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

In addition, we are investing in 300 MW of utility-scale solar within our Wisconsin segment. Wisconsin Public Service Corporation (WPS) partnered with an unaffiliated utility to construct two solar projects now in service in Wisconsin: Two Creeks Solar Park (Two Creeks) and Badger Hollow Solar Park I (Badger Hollow I). WPS owns 100 MW of Two Creeks and 100 MW of Badger Hollow I for a total of 200 MW. Wisconsin Electric Power Company (WE) has partnered with an unaffiliated utility to construct Badger Hollow Solar Park II, which is expected to enter commercial operation in the first half of 2023. Once constructed, WE will own 100 MW of this project.

In December 2018, WE received approval from the PSCW for two renewable energy pilot programs. The Solar Now pilot is expected to add a total of 35 MW of solar generation to WE's portfolio, allowing non-profit and governmental entities, as well as commercial and industrial customers, to site utility owned solar arrays on their property. Under this program, WE has energized 23 Solar Now projects and currently has another one under construction, together totaling more than 27 MW. The second program, the Dedicated Renewable Energy Resource pilot, would allow large commercial and industrial customers to access renewable resources that WE would operate, adding up to 150 MW of renewables to WE's portfolio, and helping these larger customers meet their sustainability and renewable energy goals.

In August 2021, the PSCW approved pilot programs for WE and WPS to install and maintain electric vehicle (EV) charging equipment for customers at their homes or businesses. The programs provide direct benefits to customers by removing cost barriers associated with installing EV equipment. In October 2021, subject to the receipt of any necessary regulatory approvals, we pledged to expand the EV charging network within the service territories of our electric utilities. In doing so, we joined a coalition of utility companies in a unified effort to make EV charging convenient and widely available throughout the Midwest. The coalition we joined is planning to help build and grow EV charging corridors, enabling the general public to safely and efficiently charge their vehicles.

We also continue to reduce methane emissions by improving our natural gas distribution system. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of renewable natural gas (RNG) throughout our utility systems. In 2022, we signed our first two contracts for RNG for our natural gas distribution business, which will be transporting the output of local dairy farms onto our gas distribution system. The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes. These two contracts represents approximately 50 percent of our 2030 goal for methane reduction. We expect to have RNG flowing to our distribution network by the end of 2022.

As part of our effort to look for new opportunities in sustainable energy, we are testing the effects of blending hydrogen, a clean generating fuel, with natural gas for one of our RICE generating units in the Upper Peninsula of Michigan. We are partnering with the Electric Power Research Institute in this research that could help create another viable option for decarbonizing the economy. The project will be carried out in 2022, and the results will be shared across the industry.

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Reliability

We have made significant reliability-related investments in recent years, and in accordance with our ESG Progress Plan, expect to continue strengthening and modernizing our generation fleet, as well as our electric and natural gas distribution networks to further improve reliability.

Below are a few examples of reliability projects that are proposed, currently underway, or recently completed.

•WE and Wisconsin Gas LLC (WG) have received approval to each construct their own liquefied natural gas (LNG) facility to meet anticipated peak demand. Commercial operation of the WE and WG LNG facilities is targeted for the end of 2023 and 2024, respectively.

•The Peoples Gas Light and Coke Company continues to work on its Safety Modernization Program, which primarily involves replacing old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system.

•Our utilities continue to upgrade their electric and natural gas distribution systems to enhance reliability.

For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

Operating Efficiency

We continually look for ways to optimize the operating efficiency of our company and will continue to do so under the ESG Progress Plan. For example, we are making progress on our Advanced Metering Infrastructure program, replacing aging meter-reading equipment on both our network and customer property. An integrated system of smart meters, communication networks, and data management programs enables two-way communication between our utilities and our customers. This program reduces the manual effort for disconnects and reconnects and enhances outage management capabilities.

We continue to focus on integrating the resources of all our businesses and finding the best and most efficient processes while meeting all applicable legal and regulatory requirements.

Financial Discipline

A strong adherence to financial discipline is essential to meeting our earnings projections and maintaining a strong balance sheet, stable cash flows, a growing dividend, and quality credit ratings.

We follow an asset management strategy that focuses on investing in and acquiring assets consistent with our strategic plans, as well as disposing of assets, including property, plants, equipment, and entire business units, that are no longer strategic to operations, are not performing as intended, or have an unacceptable risk profile. See Note 2, Acquisitions, for information on our acquisition of Whitewater.

Our investment focus remains in our regulated utility and non-utility energy infrastructure businesses, as well as our investment in ATC. In our non-utility energy infrastructure segment, we have acquired or agreed to acquire majority interests in eight wind parks, with total available capacity of more than 1,550 MW. These renewable energy assets represent more than $2.3 billion in committed investments and have long-term agreements to serve customers outside our traditional service areas. Production tax credits from these wind investments reduce our cash tax expense. See Note 2, Acquisitions, for additional information on recent and pending transactions.

We expect total capital expenditures for our regulated utility and non-utility energy infrastructure businesses to be approximately $16.4 billion from 2022 to 2026. In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be $1.3 billion. Specific projects included in the $17.7 billion ESG Progress Plan are discussed in more detail below under Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

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Exceptional Customer Care

Our approach is driven by an intense focus on delivering exceptional customer care every day. We strive to provide the best value for our customers by demonstrating personal responsibility for results, leveraging our capabilities and expertise, and using creative solutions to meet or exceed our customers’ expectations.

A multiyear effort is driving a standardized, seamless approach to digital customer service across our companies. We have moved all utilities to a common platform for all customer-facing self-service options. Using common systems and processes reduces costs, provides greater flexibility and enhances the consistent delivery of exceptional service to customers.

Safety

Safety is one of our core values and a critical component of our culture. We are committed to keeping our employees and the public safe through a comprehensive corporate safety program that focuses on employee engagement and elimination of at-risk behaviors.

Under our "Target Zero" mission, we have an ultimate goal of zero incidents, accidents, and injuries. Management and union leadership work together to reinforce the Target Zero culture. We set annual goals for safety results as well as measurable leading indicators, in order to raise awareness of at-risk behaviors and situations and guide injury-prevention activities. All employees are encouraged to report unsafe conditions or incidents that could have led to an injury. Injuries and tasks with high levels of risk are assessed, and findings and best practices are shared across our companies.

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.

RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2022

Consolidated Earnings

The following table compares our consolidated results for the first quarter of 2022 with the first quarter of 2021, including favorable or better, "B", and unfavorable or worse, "W", variances:

	Three Months Ended March 31
(in millions, except per share data)	2022		2021		B (W)
Wisconsin	$	288.1	$	256.3	$	31.8
Illinois	113.4		112.1		1.3
Other states	31.5		24.7		6.8
Electric transmission	27.8		28.0		(0.2)
Non-utility energy infrastructure	91.5		71.4		20.1
Corporate and other	13.6		17.6		(4.0)
Net income attributed to common shareholders	$	565.9	$	510.1	$	55.8
Diluted earnings per share	$	1.79	$	1.61	$	0.18

Earnings increased $55.8 million during the first quarter of 2022, compared with the same quarter in 2021. The significant factors impacting the $55.8 million increase in earnings were:

•A $31.8 million increase in net income attributed to common shareholders at the Wisconsin segment, driven by an increase in natural gas margins related to higher retail sales volumes, primarily due to colder winter weather during the first quarter of 2022, compared with the same quarter in 2021, as well as the continued economic recovery in Wisconsin from the COVID-19 pandemic. Also contributing to the increase in earnings were lower operating expenses, driven by the amortization of certain regulatory liabilities to offset a portion of our 2022 forecasted revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on our 2022 Wisconsin base rates. The positive impact from the amortization of the regulatory liabilities was partially

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offset by higher depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan.

•A $20.1 million increase in net income attributed to common shareholders at the non-utility energy infrastructure segment, driven by the recognition of revenue related to market settlements Upstream received from SPP in February 2021. Due to a complaint filed with the FERC, the revenue related to these settlements could not be recognized until the FERC issued an order denying the complaint in the first quarter of 2022. An increase in PTCs generated in 2022, driven by the Jayhawk wind park that achieved commercial operation in December 2021, and higher generation at our other wind parks, also contributed to the increase in earnings.

•A $6.8 million increase in net income attributed to common shareholders at the other states segment, driven by an increase in natural gas margins due to a rate increase at MGU, effective January 1, 2022, and higher sales volumes as a result of continued economic recovery and colder weather during the first quarter of 2022, compared with the same quarter in 2021.

Expected 2022 Annual Effective Tax Rate

We expect our 2022 annual effective tax rate to be between 18.5% and 19.5%. Our effective tax rate calculations are revised every quarter based on the best available year-end tax assumptions, adjusted in the following year after returns are filed. Tax accrual estimates are trued-up to the actual amounts claimed on the tax returns and further adjusted after examinations by taxing authorities, as needed.

Non-GAAP Financial Measures

The discussions below address the contribution of each of our segments to net income attributed to common shareholders. The discussions include financial information prepared in accordance with GAAP, as well as electric margins and natural gas margins, which are not measures of financial performance under GAAP. Electric margins (electric revenues less fuel and purchased power costs) and natural gas margins (natural gas revenues less cost of natural gas sold) are non-GAAP financial measures because they exclude other operation and maintenance expense, depreciation and amortization, and property and revenue taxes.

We believe that electric and natural gas margins provide a useful basis for evaluating utility operations since the majority of prudently incurred fuel and purchased power costs, as well as prudently incurred natural gas costs, are passed through to customers in current rates. As a result, management uses electric and natural gas margins internally when assessing the operating performance of our segments as these measures exclude the majority of revenue fluctuations caused by changes in these expenses. Similarly, the presentation of electric and natural gas margins herein is intended to provide supplemental information for investors regarding our operating performance.

Our electric margins and natural gas margins may not be comparable to similar measures presented by other companies. Furthermore, these measures are not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. The following table shows operating income by segment for our utility operations during the first quarter of 2022 and 2021:

	Three Months Ended March 31
(in millions)	2022		2021
Wisconsin	$	497.7	$	427.7
Illinois	168.2		168.2
Other states	44.6		34.3

Each applicable segment discussion below includes a table that provides the calculation of electric margins and natural gas margins, as applicable, along with a reconciliation to the most directly comparable GAAP measure, operating income.

03/31/2022 Form 10-Q 40 WEC Energy Group, Inc.

Wisconsin Segment Contribution to Net Income Attributed to Common Shareholders

The Wisconsin segment's contribution to net income attributed to common shareholders was $288.1 million during the first quarter of 2022, representing a $31.8 million, or 12.4%, increase over the same quarter in 2021. The higher earnings were driven by an increase in natural gas margins related to higher retail sales volumes, primarily due to colder winter weather during the first quarter of 2022, compared with the same quarter in 2021, as well as the continued economic recovery in Wisconsin from the COVID-19 pandemic. Also contributing to the increase in earnings were lower operating expenses, driven by the amortization of certain regulatory liabilities to offset a portion of our 2022 forecasted revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on our 2022 Wisconsin base rates. The positive impact from the amortization of the regulatory liabilities was partially offset by higher depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan.

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Electric revenues	$	1,193.0	$	1,101.8	$	91.2
Fuel and purchased power	406.9		349.4		(57.5)
Total electric margins	786.1		752.4		33.7
Natural gas revenues	749.3		629.9		119.4
Cost of natural gas sold	496.8		397.9		(98.9)
Total natural gas margins	252.5		232.0		20.5
Total electric and natural gas margins	1,038.6		984.4		54.2
Other operation and maintenance	312.6		341.9		29.3
Depreciation and amortization	187.1		176.2		(10.9)
Property and revenue taxes	41.2		38.6		(2.6)
Operating income	497.7		427.7		70.0
Other income, net	22.4		17.1		5.3
Interest expense	136.3		140.1		3.8
Income before income taxes	383.8		304.7		79.1
Income tax expense	95.4		48.1		(47.3)
Preferred stock dividends of subsidiary	0.3		0.3		—
Net income attributed to common shareholders	$	288.1	$	256.3	$	31.8

The following table shows a breakdown of other operation and maintenance:

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Operation and maintenance not included in line items below	$	146.7	$	147.3	$	0.6
Transmission (1)	107.9		127.7		19.8
Regulatory amortizations and other pass through expenses (2)	35.8		37.5		1.7
We Power (3)	27.6		29.4		1.8
Earnings sharing mechanisms (4)	(5.4)		—		5.4
Total other operation and maintenance	$	312.6	$	341.9	$	29.3

(1)Represents transmission expense that our electric utilities are authorized to collect in rates. The PSCW has approved escrow accounting for ATC and MISO network transmission expenses for WE and WPS. As a result, WE and WPS defer as a regulatory asset or liability, the difference between actual transmission costs and those included in rates until recovery or refund is authorized in a future rate proceeding. During the first quarter of 2022 and 2021, $126.5 million and $130.6 million, respectively, of costs were billed to our electric utilities by transmission providers.

During the first quarter of 2022, WE and WPS amortized $20.2 million of the regulatory liabilities associated with their transmission escrows to offset certain 2022 revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. This amortization drove the decrease in transmission expense in the first quarter of 2022, compared with the same quarter in 2021. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.

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(2)Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant impact on net income.

(3)Represents costs associated with the We Power generation units, including operating and maintenance costs recognized by WE. During the first quarter of 2022 and 2021, $24.8 million and $25.9 million, respectively, of costs were billed to or incurred by WE related to the We Power generation units, with the difference in costs billed or incurred and expenses recognized, either deferred or deducted from the regulatory asset.

(4)Represents amortization of a certain portion of WPS's regulatory liability associated with its 2020 earnings sharing mechanism to offset certain 2022 revenue deficiencies, as approved by the PSCW in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.

The following tables provide information on delivered sales volumes by customer class and weather statistics:

	Three Months Ended March 31
	MWh (in thousands)
Electric Sales Volumes	2022	2021	B (W)
Customer Class
Residential	2,844.0	2,808.8	35.2
Small commercial and industrial (1)	3,205.6	3,087.1	118.5
Large commercial and industrial (1)	2,982.1	2,981.9	0.2
Other	40.2	43.9	(3.7)
Total retail (1)	9,071.9	8,921.7	150.2
Wholesale	718.5	730.3	(11.8)
Resale	1,238.8	1,937.5	(698.7)
Total sales in MWh (1)	11,029.2	11,589.5	(560.3)

(1)Includes distribution sales for customers who have purchased power from an alternative electric supplier in Michigan.

	Three Months Ended March 31
	Therms (in millions)
Natural Gas Sales Volumes	2022	2021	B (W)
Customer Class
Residential	565.3	515.5	49.8
Commercial and industrial	346.2	303.0	43.2
Total retail	911.5	818.5	93.0
Transportation	446.6	427.3	19.3
Total sales in therms	1,358.1	1,245.8	112.3

	Three Months Ended March 31
	Degree Days
Weather	2022	2021	B (W)
WE and WG (1)
Heating (3,267 Normal)	3,325	3,120	6.6	%
WPS (2)
Heating (3,647 Normal)	3,843	3,482	10.4	%
UMERC (3)
Heating (3,960 Normal)	4,339	3,790	14.5	%

(1)Normal degree days are based on a 20-year moving average of monthly temperatures from Mitchell International Airport in Milwaukee, Wisconsin.

(2)Normal degree days are based on a 20-year moving average of monthly temperatures from the Green Bay, Wisconsin weather station.

(3)Normal degree days are based on a 20-year moving average of monthly temperatures from the Iron Mountain, Michigan weather station.

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Electric Revenues

Electric revenues increased $91.2 million during the first quarter of 2022, compared with the same quarter in 2021. To the extent that changes in fuel and purchased power costs are passed through to customers, the changes are offset by comparable changes in revenues. See the discussion of electric utility margins below for more information related to the recovery of fuel and purchased power costs and the remaining drivers of the changes in electric revenues.

Electric Utility Margins

Electric utility margins at the Wisconsin segment increased $33.7 million during the first quarter of 2022, compared with the same quarter in 2021. The significant factors impacting the higher electric utility margins were:

•A $35.8 million increase in margins related to the impact of unprotected excess deferred taxes in the first quarter of 2021, which we agreed to return to customers in our PSCW-approved Wisconsin rate orders. This increase in margins is offset in income taxes.

•Securitization revenues of $3.2 million received during the first quarter of 2022 related to an environmental control charge collected from WE's retail electric distribution customers. We began assessing this charge in June 2021, subsequent to the issuance of the ETBs by WEPCo Environmental Trust in May 2021, in accordance with a November 2020 PSCW financing order. See Note 18, Variable Interest Entities, for more information. These revenues are offset in depreciation and amortization as well as interest expense.

•A $3.0 million net increase in margins related to higher retail sales volumes, driven by the impact of colder winter weather during the first quarter of 2022, compared with the same quarter in 2021. As measured by heating degree days, the first quarter of 2022 was 6.6% and 10.4% colder than the same quarter in 2021 in the Milwaukee area and Green Bay area, respectively.

These increases in margins were partially offset by:

•A $4.2 million quarter-over-quarter negative impact from collections of fuel and purchased power costs compared with costs approved in rates. Under the Wisconsin fuel rules, the margins of our electric utilities are impacted by under- or over-collections of certain fuel and purchased power costs that are within a 2% price variance from the costs included in rates, and the remaining variance beyond the 2% price variance is generally deferred for future recovery or refund to customers.

•Lower margins of $3.0 million driven by a decrease in wholesale customers related to the expiration of certain wholesale contracts.

Natural Gas Revenues

Natural gas revenues increased $119.4 million during the first quarter of 2022, compared with the same quarter in 2021. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas increased 12.6% during the first quarter of 2022, compared with the same quarter in 2021. The remaining drivers of changes in natural gas revenues are described in the discussion of natural gas utility margins below.

Natural Gas Utility Margins

Natural gas utility margins at the Wisconsin segment increased $20.5 million during the first quarter of 2022, compared with the same quarter in 2021. The significant factors impacting the higher natural gas utility margins were:

•An $18.7 million increase in margins from higher sales volumes, primarily driven by colder winter weather during the first quarter of 2022, compared with the same quarter in 2021, as well as the continued economic recovery in Wisconsin from the COVID-19 pandemic.

•A $2.5 million increase in margins related to amortization of a certain portion of WG's regulatory liability consisting of credit balances associated with the escrow of natural gas storage service costs from Bluewater Gas Storage, LLC. In September 2021, the PSCW issued a written order for our Wisconsin utilities approving certain accounting treatments to offset certain 2022

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revenue deficiencies in order to forego filing for 2022 base rate increases. See Note 26 Regulatory Environment, in our 2021 Annual Report on Form 10-K for more information.

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the Wisconsin segment decreased $15.8 million during the first quarter of 2022, compared with the same quarter in 2021. The significant factors impacting the decrease in operating expenses were:

•A $19.8 million decrease in transmission expense driven by the amortization of a certain portion of WE's and WPS's regulatory liabilities associated with transmission escrow balances, as discussed in the notes under the other operation and maintenance table above.

•A $5.4 million decrease in expense driven by the amortization of a certain portion of WPS's regulatory liability associated with its 2020 earnings sharing mechanism, as discussed in the notes under the other operation and maintenance table above.

•A $2.1 million decrease related to a gain on land sales during the first quarter of 2022.

•A $1.8 million decrease in other operation and maintenance expense related to the We Power leases, as discussed in the notes under the other operation and maintenance table above.

•A $1.7 million decrease in regulatory amortizations and other pass through expenses, as discussed in the notes under the other operation and maintenance table above.

These decreases in other operating expenses were partially offset by:

•A $10.9 million increase in depreciation and amortization, driven by assets being placed into service as we continue to execute on our capital plan, as well as an increase related to the We Power leases. In addition, a portion of the increase is related to securitization amortization, which is offset in revenues. The increase in depreciation was partially offset by $2.6 million of depreciation related to capital investments made by WG since it's last rate case, as approved by the PSCW in an order that allowed our Wisconsin utilities to offset certain 2022 revenue deficiencies in order to forego filing for 2022 base rate increases. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for more information.

•An $8.7 million increase in electric and natural gas distribution expenses, primarily driven by increased maintenance expense related to significant winter storms in 2022.

Other Income, Net

Other income, net at the Wisconsin segment increased $5.3 million during the first quarter of 2022, compared with the same quarter in 2021, driven by higher net credits from the non-service components of our net periodic pension and OPEB costs. See Note 14, Employee Benefits, for more information on our benefit costs.

Interest Expense

Interest expense at the Wisconsin segment decreased $3.8 million during the first quarter of 2022, compared with the same quarter in 2021, primarily due to the deferral of interest expense related to capital investments made by WG since its last rate case, as approved by the PSCW in an order that allowed our Wisconsin utilities to offset certain 2022 revenue deficiencies in order to forego filing for a 2022 base rate increase. Also contributing to the decrease was lower interest expense on finance lease liabilities, primarily related to the WE Power leases, as finance lease liabilities decrease each year as payments are made. See Note 26 Regulatory Environment, in our 2021 Annual Report on Form 10-K for more information.

Income Tax Expense

Income tax expense at the Wisconsin segment increased $47.3 million during the first quarter of 2022, compared with the same quarter in 2021. The increase in income tax expense was due to an approximate $35.7 million negative impact related to the lower quarter-over-quarter amortization of the unprotected excess deferred tax benefits from the Tax Legislation in connection with the

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Wisconsin rate orders approved by the PSCW, effective January 1, 2020. The impact due to the benefit from the amortization of the unprotected excess deferred tax benefits from the Tax Legislation did not impact earnings as there was an offsetting impact in operating income. Also contributing to this increase in income tax expense was an increase in pretax income. See Note 10, Income Taxes, for more information.

Illinois Segment Contribution to Net Income Attributed to Common Shareholders

The Illinois segment's contribution to net income attributed to common shareholders was $113.4 million during the first quarter of 2022, representing a $1.3 million, or 1.2%, increase over the same quarter in 2021. The increase was driven by PGL's continued capital investment in the SMP project under its QIP rider and the impact of NSG's rate order, which became effective September 15, 2021. These increases in earnings were partially offset by higher depreciation and amortization and an increase in costs related to maintenance at the Manlove Gas Storage Field.

Since the majority of PGL and NSG customers use natural gas for heating, net income attributed to common shareholders at the Illinois segment is sensitive to weather and is generally higher during the winter months.

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Natural gas revenues	$	682.1	$	703.4	$	(21.3)
Cost of natural gas sold	331.0		363.6		32.6
Total natural gas margins	351.1		339.8		11.3
Other operation and maintenance	113.6		109.3		(4.3)
Depreciation and amortization	56.8		52.7		(4.1)
Property and revenue taxes	12.5		9.6		(2.9)
Operating income	168.2		168.2		—
Other income, net	5.0		1.8		3.2
Interest expense	17.7		16.5		(1.2)
Income before income taxes	155.5		153.5		2.0
Income tax expense	42.1		41.4		(0.7)
Net income attributed to common shareholders	$	113.4	$	112.1	$	1.3

The following table shows a breakdown of other operation and maintenance:

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Operation and maintenance not included in the line items below	$	70.5	$	66.8	$	(3.7)
Riders (1)	43.5		43.1		(0.4)
Regulatory amortizations (1)	(0.4)		(0.6)		(0.2)
Total other operation and maintenance	$	113.6	$	109.3	$	(4.3)

(1)These riders and regulatory amortizations are substantially offset in margins and therefore do not have a significant impact on net income.

The following tables provide information on delivered sales volumes by customer class and weather statistics:

	Three Months Ended March 31
	Therms (in millions)
Natural Gas Sales Volumes	2022	2021	B (W)
Customer Class
Residential	429.8	411.9	17.9
Commercial and industrial	172.9	160.0	12.9
Total retail	602.7	571.9	30.8
Transportation	358.7	330.8	27.9
Total sales in therms	961.4	902.7	58.7

03/31/2022 Form 10-Q 45 WEC Energy Group, Inc.

	Three Months Ended March 31
	Degree Days
Weather (1)	2022	2021	B (W)
Heating (3,111 Normal)	3,209	3,003	6.9	%

(1)Normal heating degree days are based on a 12-year moving average of monthly temperatures from Chicago's O'Hare Airport.

Natural Gas Revenues

Natural gas revenues decreased $21.3 million during the first quarter of 2022, compared with the same quarter in 2021. Because prudently incurred natural gas costs are passed through to our customers in current rates, the changes are offset by comparable changes in revenues. The average per-unit cost of natural gas sold decreased 14.1% during the first quarter of 2022, compared with the same quarter in 2021. The remaining drivers of changes in natural gas revenues are described in the discussion of margins below.

Natural Gas Utility Margins

Natural gas utility margins at the Illinois segment, net of the $0.4 million impact of the riders referenced in the table above, increased $10.9 million during the first quarter of 2022, compared with the same quarter in 2021. The increase in margins was primarily driven by:

•A $6.3 million increase in revenues at PGL due to continued capital investment in the SMP project. PGL recovers the costs related to the SMP through a surcharge on customer bills pursuant to an ICC approved QIP rider, which is in effect through 2023. See Note 21, Regulatory Environment, for more information

•A $5.9 million increase related to the impact of the NSG rate order approved by the ICC, effective September 15, 2021, which includes the Variable Income Tax Adjustment Rider in base rates. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on the 2021 rate order.

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the Illinois segment increased $10.9 million, net of the $0.4 million impact of the riders referenced in the table above, during the first quarter of 2022, compared with the same quarter in 2021. The significant factors impacting the increase in operating expenses were:

•A $4.1 million increase in depreciation expense, primarily driven by PGL's continued capital investment in the SMP project.

•A $3.5 million increase in costs associated with maintenance at the Manlove Gas Storage Field.

•A $2.9 million increase in property and revenue taxes driven by an increase in the invested capital tax related to higher plant placed in service during the first quarter of 2022, compared with the same quarter in 2021. This increase was offset in natural gas utility margins.

Other Income, Net

Other income, net at the Illinois segment increased $3.2 million during the first quarter of 2022, compared with the same quarter in 2021, driven by higher net credits from the non-service components of our net periodic pension and OPEB costs. See Note 14, Employee Benefits, for more information on our benefit costs.

Interest Expense

Interest expense at the Illinois segment increased $1.2 million during the first quarter of 2022, compared with the same quarter in 2021, primarily due to $225.0 million of long-term debt issuances in November 2021.

03/31/2022 Form 10-Q 46 WEC Energy Group, Inc.

Income Tax Expense

Income tax expense at the Illinois segment increased $0.7 million during the during the first quarter of 2022, compared with the same quarter in 2021, driven by an increase in pretax income.

Other States Segment Contribution to Net Income Attributed to Common Shareholders

The other states segment's contribution to net income attributed to common shareholders during the first quarter of 2022 was $31.5 million, representing a $6.8 million, or 27.5%, increase over the same quarter in 2021. The increase was driven by higher natural gas margins due to a rate increase at MGU, effective January 1, 2022, and higher sales volumes as a result of continued economic recovery and colder weather during the first quarter of 2022, compared with the same quarter in 2021.

Since the majority of MGU and MERC customers use natural gas for heating, net income attributed to common shareholders at the other states segment is sensitive to weather and is generally higher during the winter months.

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Natural gas revenues	$	240.9	$	233.3	$	7.6
Cost of natural gas sold	156.9		161.7		4.8
Total natural gas margins	84.0		71.6		12.4
Other operation and maintenance	24.6		23.2		(1.4)
Depreciation and amortization	10.0		9.2		(0.8)
Property and revenue taxes	4.8		4.9		0.1
Operating income	44.6		34.3		10.3
Other income, net	0.6		0.3		0.3
Interest expense	3.3		1.5		(1.8)
Income before income taxes	41.9		33.1		8.8
Income tax expense	10.4		8.4		(2.0)
Net income attributed to common shareholders	$	31.5	$	24.7	$	6.8

The following table shows a breakdown of other operation and maintenance:

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Operation and maintenance not included in line item below	$	17.4	$	16.1	$	(1.3)
Regulatory amortizations and other pass through expenses (1)	7.2		7.1		(0.1)
Total other operation and maintenance	$	24.6	$	23.2	$	(1.4)

(1)Regulatory amortizations and other pass through expenses are substantially offset in margins and therefore do not have a significant impact on net income.

The following tables provide information on delivered sales volumes by customer class and weather statistics:

	Three Months Ended March 31
	Therms (in millions)
Natural Gas Sales Volumes	2022	2021	B (W)
Customer Class
Residential	172.0	149.0	23.0
Commercial and industrial	103.0	85.7	17.3
Total retail	275.0	234.7	40.3
Transportation	261.0	234.2	26.8
Total sales in therms	536.0	468.9	67.1

03/31/2022 Form 10-Q 47 WEC Energy Group, Inc.

	Three Months Ended March 31
	Degree Days
Weather (1)	2022	2021	B (W)
MERC
Heating (3,958 Normal)	4,312	3,785	13.9	%
MGU
Heating (3,156 Normal)	3,234	3,014	7.3	%

(1)Normal heating degree days for MERC and MGU are based on a 20-year moving average and 15-year moving average, respectively, of monthly temperatures from various weather stations throughout their respective service territories.

Natural Gas Revenues

Natural gas revenues increased $7.6 million during the first quarter of 2022, compared with the same quarter in 2021. To the extent that changes in natural gas costs are passed through to customers, the changes are offset by comparable changes in revenues. See the discussion of natural gas utility margins below for the remaining drivers of changes in natural gas revenues.

Natural Gas Utility Margins

Natural gas utility margins increased $12.4 million during the first quarter of 2022, compared to the same quarter in 2021. The increase in margins was primarily driven by:

•A $6.4 million increase related to the new rates at MGU that went into effect in 2022.

•A $4.4 million increase related to higher sales volumes due to continued economic recovery and colder weather during the first quarter of 2022, as compared to the same quarter in 2021.

•A $1.2 million increase related to MERC CIP revenue, which was offset in operation and maintenance expense. Rebates and programs are available to residential and commercial customers of MERC through the CIP, which is funded by rate payers using the Conservation Cost Recovery Charge and the Conservation Cost Recovery Adjustment funds that are collected on their monthly billing statements.

Other Operating Expenses (includes other operation and maintenance, depreciation and amortization, and property and revenue taxes)

Other operating expenses at the other states segment increased $2.1 million during the first quarter of 2022, compared to the same quarter in 2021. The significant factors impacting the increase in operating expenses were:

•A $1.2 million increase in operation and maintenance expense related to MERC's CIP program, which has an offsetting increase in margins.

•A $0.8 million increase in depreciation and amortization related to continued capital investment.

•A $0.7 million increase in operation and maintenance expense related to higher labor costs and snow removal.

These increases in operating expenses were partially offset by a $1.1 million decrease in bad debt expense related to improvement in past due receivables.

Interest Expense

Interest expense at the other states segment increased $1.8 million during the first quarter of 2022, compared with the same quarter in 2021, primarily due to the deferral of $1.2 million of interest expense in the first quarter of 2021 related to capital investments made by MGU since its last rate case, as approved by the Michigan Public Service Commission. This deferred interest expense is now being amortized over a four-year period as a result of MGU's approved rate increase.

03/31/2022 Form 10-Q 48 WEC Energy Group, Inc.

Income Tax Expense

Income tax expense at the other states segment increased $2.0 million during the first quarter of 2022, compared with the same quarter in 2021, driven by a higher pretax income.

Electric Transmission Segment Contribution to Net Income Attributed to Common Shareholders

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Equity in earnings of transmission affiliates	$	41.7	$	42.6	$	(0.9)
Other expense (income)	0.1		(0.1)		(0.2)
Interest expense	4.9		4.9		—
Income before income taxes	36.7		37.8		(1.1)
Income tax expense	8.9		9.8		$	0.9
Net income attributed to common shareholders	$	27.8	$	28.0	$	(0.2)

Non-Utility Energy Infrastructure Segment Contribution to Net Income Attributed to Common Shareholders

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Operating income	$	105.6	$	89.4	$	16.2
Interest expense	17.2		18.0		0.8
Income before income taxes	88.4		71.4		17.0
Income tax expense (benefit)	(4.9)		0.1		5.0
Net (income) loss attributed to noncontrolling interests	(1.8)		0.1		(1.9)
Net income attributed to common shareholders	$	91.5	$	71.4	$	20.1

Operating Income

Operating income at the non-utility energy infrastructure segment increased $16.2 million during the first quarter of 2022, compared with the same quarter in 2021. The increase was primarily due to the recognition of $15.2 million in revenue related to our Upstream wind park in the first quarter of 2022 that was associated with market settlements received from SPP in February 2021. These settlements were subject to a FERC complaint, so we were not able to recognize them as revenue until FERC issued an order denying that complaint in the first quarter of 2022.

Interest Expense

Interest expense at the non-utility energy infrastructure segment decreased $0.8 million during first quarter of 2022, compared with the same quarter in 2021, primarily due to a lower principal balance as a result of the semi-annual principal payments on long-term debt.

Income Tax Expense (Benefit)

Income tax benefit at the non-utility energy infrastructure segment increased $5.0 million as $4.9 million of income tax benefit was recorded during the first quarter of 2022, compared with $0.1 of income tax expense recorded during the same quarter in 2021. The increase was primarily due to a $9.2 million increase in PTCs generated in 2022, driven by the Jayhawk wind park that achieved commercial operation in December 2021 and higher generation at our other wind parks. This increase in the income tax benefit was partially offset by higher pretax earnings during the first quarter of 2022, compared with same quarter in 2021.

03/31/2022 Form 10-Q 49 WEC Energy Group, Inc.

Corporate and Other Segment Contribution to Net Income Attributed to Common Shareholders

	Three Months Ended March 31
(in millions)	2022		2021		B (W)
Operating loss	$	(0.5)	$	(4.9)	$	4.4
Other income, net	11.9		13.8		(1.9)
Interest expense	22.6		24.2		1.6
Loss before income taxes	(11.2)		(15.3)		4.1
Income tax benefit	(24.8)		(32.9)		(8.1)
Net income attributed to common shareholders	$	13.6	$	17.6	$	(4.0)

Operating Loss

The operating loss at the corporate and other segment decreased $4.4 million during the first quarter of 2022, compared with the same quarter in 2021. The lower net loss was driven by a $3.0 million increase in operating income at Wispark, primarily due to a positive quarter-over-quarter impact from land sales.

Other Income, Net

Other income, net at the corporate and other segment decreased $1.9 million during the first quarter of 2022, compared with the same quarter in 2021, driven by a $4.6 million net loss from the investments held in the Integrys rabbi trust during the first quarter of 2022, compared with a $4.6 million net gain during the same quarter in 2021. The gains and losses from the investments held in the rabbi trust partially offset the changes in benefits costs related to deferred compensation, which are included in other operation and maintenance expense in our operating segments. See Note 11, Fair Value Measurements, for more information on our investments held in the Integrys rabbi trust. The negative impact from the investments held in the rabbi trust was partially offset by a $5.6 million increase in earnings from our equity method investments in technology and energy-focused investment funds.

Interest Expense

Interest expense at the corporate and other segment decreased $1.6 million during the first quarter of 2022, compared with the same quarter in 2021, as we refinanced long-term debt obligations during the fourth quarter of 2021 in order to take advantage of lower interest rates.

Income Tax Benefit

The income tax benefit at the corporate and other segment decreased $8.1 million during the first quarter of 2022, compared with the same quarter in 2021, driven by an $8.3 million decrease in uncertain tax positions in the first quarter of 2021 and a lower pretax loss compared to the same first quarter of 2021. These decreases in income tax benefits were partially offset by a $2.4 million increase in excess tax benefits recognized related to stock option exercises during the first quarter of 2022, compared to the same quarter in 2021.

LIQUIDITY AND CAPITAL RESOURCES

Overview

We expect to maintain adequate liquidity to meet our cash requirements for the operation of our businesses and implementation of our corporate strategy through the internal generation of cash from operations and access to the capital markets.

03/31/2022 Form 10-Q 50 WEC Energy Group, Inc.

Cash Flows

The following table summarizes our cash flows during the three months ended March 31:

(in millions)	2022		2021		Change in 2022 Over 2021
Cash provided by (used in):
Operating activities	$	1,076.8	$	395.2	$	681.6
Investing activities	(338.2)		(541.3)		203.1
Financing activities	(706.5)		163.1		(869.6)

Operating Activities

Net cash provided by operating activities increased $681.6 million during the first quarter of 2022, compared with the same quarter in 2021, driven by:

•A $643.2 million increase in cash related to higher overall collections from customers as a result of an increase in sales volumes during the first quarter of 2022, compared with the same quarter in 2021, driven by colder winter weather and the continued economic recovery from the COVID-19 pandemic. We also over-collected natural gas costs in the first quarter of 2022, as natural gas costs were lower than what was anticipated in rates. In addition, we continued to recover on the natural gas costs we under-collected from our Illinois and Minnesota customers related to the extreme weather conditions that occurred in February 2021, in accordance with orders from the ICC and MPUC, respectively. See Note 21, Regulatory Environment, for more information on the recovery of these natural gas costs.

•A $180.9 million increase in cash due to realized gains on derivative instruments as well as higher collateral received from counterparties during the first quarter of 2022, driven by an increase in the fair value of our natural gas derivative assets during the first quarter of 2022, compared with the same quarter in 2021.

These increases in net cash provided by operating activities were partially offset by:

•An $81.8 million decrease in cash from higher payments for fuel and purchased power at our plants during the first quarter of 2022, compared with the same quarter in 2021. We incurred higher natural gas costs during the first quarter of 2022, compared with the same quarter in 2021, as a result of an increase in the price of natural gas at our Wisconsin utilities.

•A $50.4 million decrease in cash from higher payments for operating expenses. During the first quarter of 2022, our payments were higher for storm restoration and the Illinois invested capital tax.

Investing Activities

Net cash used in investing activities decreased $203.1 million during the first quarter of 2022, compared with the same quarter in 2021, driven by:

•The acquisition of a 90% ownership interest in Jayhawk in February 2021 for $119.4 million. See Note 2, Acquisitions, for more information.

•An $87.1 million decrease in cash paid for capital expenditures during the first quarter of 2022, compared with the same quarter in 2021, which is discussed in more detail below.

•Insurance proceeds of $41.0 million received during the first quarter of 2022 for property damage, primarily driven by proceeds received for the PSB claim. See Note 6, Property, Plant, and Equipment, for more information.

These decreases in net cash used in investing activities were partially offset by capital contributions paid to transmission affiliates of $21.1 million during the first quarter of 2022. See Note 16, Investment in Transmission Affiliates, for more information. There were no payments to transmission affiliates during the first quarter of 2021.

03/31/2022 Form 10-Q 51 WEC Energy Group, Inc.

Capital Expenditures

Capital expenditures by segment for the three months ended March 31 were as follows:

Reportable Segment (in millions)	2022		2021		Change in 2022 Over 2021
Wisconsin	$	254.8	$	277.5	$	(22.7)
Illinois	98.6		119.8		(21.2)
Other states	11.5		11.0		0.5
Non-utility energy infrastructure	15.9		59.0		(43.1)
Corporate and other	2.7		3.3		(0.6)
Total capital expenditures	$	383.5	$	470.6	$	(87.1)

The decrease in cash paid for capital expenditures at the Wisconsin segment during the first quarter of 2022, compared with the same quarter in 2021, was primarily driven by lower capital expenditures related to upgrades to WE's natural gas and electric distribution systems. These decreases were partially offset by higher payments for capital expenditures related to WG's LNG facility, Weston power plant's RICE units, and renewable energy projects during the first quarter of 2022.

The decrease in cash paid for capital expenditures at the Illinois segment during the first quarter of 2022, compared with the same quarter in 2021, was primarily driven by lower capital expenditures related to upgrades at the Manlove Gas Storage Field, partially offset by increased capital expenditures for upgrades to PGL's and NSG's natural gas distribution systems.

The decrease in cash paid for capital expenditures at the non-utility energy infrastructure segment during the first quarter of 2022, compared with the same quarter in 2021, was primarily driven by lower capital expenditures related to the construction of Jayhawk. See Note 2, Acquisitions, for more information about Jayhawk.

See Capital Resources and Requirements – Capital Requirements – Significant Capital Projects for more information.

Financing Activities

Net cash related to financing activities decreased $869.6 million during the first quarter of 2022, compared with the same quarter in 2021, driven by:

•A $600.0 million decrease in cash due to the issuance of long-term debt during the first quarter of 2021. We did not issue any long-term debt during the first quarter of 2022.

•A $591.4 million decrease in cash due to $447.9 million of net repayments of commercial paper during the first quarter of 2022, compared with $143.5 million of net borrowings of commercial paper during the same quarter in 2021.

•A $16.8 million decrease in cash due to an increase in the number and cost of shares of our common stock purchased during the first quarter of 2022, compared with the same quarter in 2021, to satisfy requirements of our stock-based compensation plans.

•A $15.9 million decrease in cash due to higher dividends paid on our common stock during the first quarter of 2022, compared with the same quarter in 2021. In January 2022, our Board of Directors increased our quarterly dividend by $0.05 per share (7.4%) effective with the March 2022 dividend payment.

These decreases in cash were partially offset by:

•A $340.0 million increase in cash due to a repayment of a 364-day term loan during the first quarter of 2021. We did not repay any loans during the first quarter of 2022.

•A $10.6 million increase in cash related to the number of stock options exercised during the first quarter of 2022, compared with the same quarter in 2021.

Significant Financing Activities

For more information on our financing activities, see Note 8, Short-Term Debt and Lines of Credit.

03/31/2022 Form 10-Q 52 WEC Energy Group, Inc.

Cash Requirements

We require funds to support and grow our businesses. Our significant cash requirements primarily consist of capital and investment expenditures, payments to retire and pay interest on long-term debt, the payment of common stock dividends to our shareholders, and the funding of our ongoing operations. See the discussion below and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Cash Requirements in our 2021 Annual Report on Form 10-K for additional information regarding our significant cash requirements.

Significant Capital Projects

We have several capital projects that will require significant capital expenditures over the next three years and beyond. All projected capital requirements are subject to periodic review and may vary significantly from estimates, depending on a number of factors. These factors include environmental requirements, regulatory restraints and requirements, changes in tax laws and regulations, acquisition and development opportunities, market volatility, economic trends, supply chain disruptions, the COVID-19 pandemic, inflation, and interest rates. Our estimated capital expenditures and acquisitions for the next three years are reflected below. These amounts include anticipated expenditures for environmental compliance and certain remediation issues. For a discussion of certain environmental matters affecting us, see Note 19, Commitments and Contingencies.

(in millions)	2022 (1)		2023		2024
Wisconsin	$	2,131.7	$	2,148.0	$	2,114.1
Illinois	573.1		586.8		635.0
Other states	119.1		103.6		106.4
Non-utility energy infrastructure	870.8		325.7		297.5
Corporate and other	22.0		17.5		4.3
Total	$	3,716.7	$	3,181.6	$	3,157.3

(1)This includes actual capital expenditures already incurred in 2022, as well as estimated capital expenditures for the remainder of the year.

Our utilities continue to upgrade their electric and natural gas distribution systems to enhance reliability. These upgrades include the AMI program. AMI is an integrated system of smart meters, communication networks, and data management systems that enable two-way communication between utilities and customers.

We are committed to investing in solar, wind, battery storage, and clean natural gas-fired generation. Below are examples of projects that are proposed or currently underway.

•We have received approval to invest in 100 MW of utility-scale solar within our Wisconsin segment. WE has partnered with an unaffiliated utility to construct a solar project, Badger Hollow II, that will be located in Iowa County, Wisconsin. Once constructed, WE will own 100 MW of this project. WE's share of the cost of this project is estimated to be approximately $130 million. Commercial operation of Badger Hollow II is targeted for the first half of 2023.

•WE and WPS, along with an unaffiliated utility, received PSCW approval to acquire and construct the Paris Solar-Battery Park, a utility-scale solar-powered electric generating facility with a battery energy storage system. The project will be located in Kenosha County, Wisconsin and once constructed, WE and WPS will collectively own 180 MW of solar generation and 99 MW of battery storage of this project. WE's and WPS's combined share of the cost of this project is estimated to be approximately $390 million, with construction expected to be completed by the end of 2023.

•WE and WPS have received approval to accelerate capital investments in two wind parks. The investment is expected to be approximately $154 million to repower major components of Blue Sky Green Field Wind Park and Crane Creek Wind Park, which are expected to be completed by the end of 2022.

•In March 2021, WE and WPS, along with an unaffiliated utility, filed an application with the PSCW for approval to acquire and construct the Darien Solar-Battery Park, a utility-scale solar-powered electric generating facility with a battery energy storage system. The project will be located in Rock and Walworth counties, Wisconsin and once constructed, WE and WPS will collectively own 225 MW of solar generation and 68 MW of battery storage of this project. If approved, WE's and WPS's combined share of

03/31/2022 Form 10-Q 53 WEC Energy Group, Inc.

the cost of this project is estimated to be approximately $400 million, with construction expected to be completed by the end of 2023.

•WPS, along with an unaffiliated utility, received PSCW approval to acquire the Red Barn Wind Park, a utility-scale wind-powered electric generating facility. The project will be located in Grant County, Wisconsin and once constructed, WPS will own 82 MW of this project. WPS's share of the cost of this project is estimated to be approximately $160 million, with construction expected to be completed by the end of 2022.

•In April 2021, WE and WPS, along with an unaffiliated utility, filed an application with the PSCW for approval to acquire the Koshkonong Solar-Battery Park, a utility-scale solar-powered electric generating facility with a battery energy storage system. The project will be located in Dane County, Wisconsin and once constructed, WE and WPS will collectively own 270 MW of solar generation and 149 MW of battery storage of this project. If approved, WE's and WPS's combined share of the cost of this project is estimated to be approximately $585 million, with construction expected to be completed by the second quarter of 2024.

•WE and WPS received PSCW approval to construct 128 MWs of natural gas-fired generation at WPS's existing Weston power plant site in northern Wisconsin. The new facility will consist of seven RICE units. We estimate the cost of this project to be approximately $170 million, with construction expected to be completed in 2023.

•In November 2021, WE and WPS signed an asset purchase agreement to acquire Whitewater, a commercially operational 236.5 MW dual fueled (natural gas and low sulfur fuel oil) combined cycle electrical generation facility in Whitewater, Wisconsin. In December 2021, WE and WPS filed an application with the PSCW for approval to acquire Whitewater. If approved, the cost of this facility will be $72.7 million, with the transaction expected to close in January 2023.

•In January 2022, WPS, along with an unaffiliated utility, filed an application with the PSCW for approval to acquire a portion of West Riverside's nameplate capacity. WPS is also requesting approval to assign the option to purchase part of West Riverside to WE. If approved, WPS or WE would acquire 100 MW of capacity, in the first of two potential option exercises. West Riverside is a new, combined-cycle natural gas plant recently completed by an unaffiliated utility in Rock County, Wisconsin. If approved, our share of the cost of this ownership interest is approximately $91 million, with the transaction expected to close in the second quarter of 2023.

In March 2022, the DOC opened an investigation into whether new tariffs should be imposed on solar panels and cells imported from multiple southeast Asian countries, which could impact the timing and cost of our planned solar projects. See Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – United States Department of Commerce Complaint and Factors Affecting Results, Liquidity, and Capital Resources – Regulatory, Legislative, and Legal Matters – Withhold Release Order Related to Silica-Based Products for information on the DOC investigation and potential impacts to our solar projects as a result of CBP actions related to solar panels, respectively.

WE and WG have received PSCW approval to each construct its own LNG facility. Each facility would provide approximately one billion cubic feet of natural gas supply to meet anticipated peak demand without requiring the construction of additional interstate pipeline capacity. These facilities are expected to reduce the likelihood of constraints on WE's and WG's natural gas systems during the highest demand days of winter. The total cost of both projects is estimated to be approximately $370 million, with approximately half being invested by each utility. Commercial operation of the WE and WG LNG facilities is targeted for the end of 2023 and 2024, respectively.

PGL is continuing work on the SMP, a project under which PGL is replacing approximately 2,000 miles of Chicago's aging natural gas pipeline infrastructure. PGL currently recovers these costs through a surcharge on customer bills pursuant to an ICC approved QIP rider, which is in effect through 2023. PGL's projected average annual investment through 2024 is between $280 million and $300 million.

The non-utility energy infrastructure line item in the table above includes WECI's planned investments in Thunderhead and Sapphire Sky. See Note 2, Acquisitions, for more information on these wind projects.

We expect to provide total capital contributions to ATC (not included in the above table) of approximately $115 million from 2022 through 2024. We do not expect to make any contributions to ATC Holdco during that period.

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Long-Term Debt

There were no material changes in our outstanding long-term debt during the three months ended March 31, 2022.

Common Stock Dividends

Our current quarterly dividend rate is $0.7275 per share, which equates to an annual dividend of $2.91 per share. For information related to our most recent common stock dividend declared, see Note 7, Common Equity.

Other Significant Cash Requirements

See Note 19, Commitments and Contingencies, for information regarding our minimum future commitments related to purchase obligations for the procurement of fuel, power, and gas supply, as well as the related storage and transportation. There were no material changes to our other significant commitments outside the ordinary course of business during the three months ended March 31, 2022.

Off-Balance Sheet Arrangements

We are a party to various financial instruments with off-balance sheet risk as a part of our normal course of business, including financial guarantees and letters of credit that support construction projects, commodity contracts, and other payment obligations. We believe that these agreements do not have, and are not reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. For additional information, see Note 8, Short-Term Debt and Lines of Credit, Note 13, Guarantees, and Note 18, Variable Interest Entities.

Sources of Cash

Liquidity

We anticipate meeting our short-term and long-term cash requirements to operate our businesses and implement our corporate strategy through internal generation of cash from operations and access to the capital markets, which allows us to obtain external short-term borrowings, including commercial paper and term loans, and intermediate or long-term debt securities. Cash generated from operations is primarily driven by sales of electricity and natural gas to our utility customers, reduced by costs of operations. Our access to the capital markets is critical to our overall strategic plan and allows us to supplement cash flows from operations with external borrowings to manage seasonal variations, working capital needs, commodity price fluctuations, unplanned expenses, and unanticipated events.

WEC Energy Group, WE, WPS, WG, and PGL maintain bank back-up credit facilities, which provide liquidity support for each company's obligations with respect to commercial paper and for general corporate purposes. We review our bank back-up credit facility needs on an ongoing basis and expect to be able to maintain adequate credit facilities to support our operations.

The amount, type, and timing of any financings in 2022, as well as in subsequent years, will be contingent on investment opportunities and our cash requirements and will depend upon prevailing market conditions, regulatory approvals for certain subsidiaries, and other factors. Our regulated utilities plan to maintain capital structures consistent with those approved by their respective regulators. For more information on our utilities approved capital structures, see Item 1. Business – E. Regulation in our 2021 Annual Report on Form 10-K.

The issuance of securities by our utility companies is subject to the approval of the applicable state commissions or FERC. Additionally, with respect to the public offering of securities, we, WE, and WPS file registration statements with the SEC under the Securities Act of 1933, as amended (1933 Act). The amounts of securities authorized by the appropriate regulatory authorities, as well as the securities registered under the 1933 Act, are closely monitored and appropriate filings are made to ensure flexibility in the capital markets.

At March 31, 2022, our current liabilities exceeded our current assets by $701.8 million. We do not expect this to have an impact on our liquidity as we currently believe that our cash and cash equivalents, our available capacity of $1,649.4 million under existing

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revolving credit facilities, cash generated from ongoing operations, and access to the capital markets are adequate to meet our short-term and long-term cash requirements.

See Note 8, Short-Term Debt and Lines of Credit, for more information about our credit facilities and commercial paper.

Investments in Outside Trusts

We maintain investments in outside trusts to fund the obligation to provide pension and certain OPEB benefits to current and future retirees. These trusts had investments consisting of fixed income and equity securities that are subject to the volatility of the stock market and interest rates. For more information, see Investments in Outside Trusts in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Sources of Cash in our 2021 Annual Report on Form 10-K.

Capitalization Structure

The following table shows our capitalization structure as of March 31, 2022, as well as an adjusted capitalization structure that we believe is consistent with how a majority of the rating agencies currently view our 2007 Junior Notes:

(in millions)	Actual			Adjusted
Common shareholders' equity	$	11,243.2		$	11,493.2
Preferred stock of subsidiary	30.4			30.4
Long-term debt (including current portion)	13,677.7			13,427.7
Short-term debt	1,450.0			1,450.0
Total capitalization	$	26,401.3		$	26,401.3
Total debt	$	15,127.7		$	14,877.7
Ratio of debt to total capitalization	57.3		%	56.4		%

Included in long-term debt on our balance sheet as of March 31, 2022, is $500.0 million principal amount of the 2007 Junior Notes. The adjusted presentation attributes $250.0 million of the 2007 Junior Notes to common shareholders' equity and $250.0 million to long-term debt.

The adjusted presentation of our consolidated capitalization structure is included as a complement to our capitalization structure presented in accordance with GAAP. Management evaluates and manages our capitalization structure, including our total debt to total capitalization ratio, using the GAAP calculation as adjusted to reflect the treatment of the 2007 Junior Notes by the majority of rating agencies. Therefore, we believe the non-GAAP adjusted presentation reflecting this treatment is useful and relevant to investors in understanding how management and the rating agencies evaluate our capitalization structure.

Debt Covenants

At March 31, 2022, we were in compliance with all covenants related to outstanding short-term and long-term debt. We expect to be in compliance with all such debt covenants for the foreseeable future.

Credit Rating Risk

Cash collateral postings and prepayments made with external parties, including postings related to exchange-traded contracts, and cash collateral posted by external parties were immaterial as of March 31, 2022. From time to time, we may enter into commodity contracts that could require collateral or a termination payment in the event of a credit rating change to below BBB- at S&P Global Ratings, a division of S&P Global Inc., and/or Baa3 at Moody’s Investors Service, Inc. If WE had a sub-investment grade credit rating at March 31, 2022, it could have been required to post $100 million of additional collateral or other assurances pursuant to the terms of a PPA. We also have other commodity contracts that, in the event of a credit rating downgrade, could result in a reduction of our unsecured credit granted by counterparties.

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In addition, access to capital markets at a reasonable cost is determined in large part by credit quality. Any credit ratings downgrade could impact our ability to access capital markets.

Subject to other factors affecting the credit markets as a whole, we believe our current ratings should provide a significant degree of flexibility in obtaining funds on competitive terms. However, these security ratings reflect the views of the rating agency only. An explanation of the significance of these ratings may be obtained from the rating agency. Such ratings are not a recommendation to buy, sell, or hold securities. Any rating can be revised upward or downward or withdrawn at any time by a rating agency.

FACTORS AFFECTING RESULTS, LIQUIDITY, AND CAPITAL RESOURCES

The following is a discussion of certain factors that may affect our results of operations, liquidity, and capital resources. This discussion should be read together with the information in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources in our 2021 Annual Report on Form 10-K, which provides a more complete discussion of factors affecting us, including market risks and other significant risks, competitive markets, environmental matters, critical accounting policies and estimates, and other matters.

COVID-19 Pandemic

We have taken steps to mitigate the impact of the global COVID-19 pandemic. However, the extent to which the COVID-19 pandemic could continue to impact our results of operations and liquidity is largely dependent upon the ability of our customers to resume or maintain normal operations. Adverse impacts to us and our subsidiaries from a prolonged COVID-19 pandemic environment could include a decrease in revenues, increased bad debt expense, increases in past due accounts receivable balances, and access to the capital markets at unfavorable terms or rates.

We will continue to monitor COVID-19 pandemic-related developments affecting our workforce, customers, and suppliers and will implement additional actions that we determine to be necessary in order to mitigate any additional impacts. We cannot predict the full extent of the impacts of COVID-19, which will depend on, among other things, its duration through new variants, the rate and the effectiveness of both vaccinations and treatments, future regulatory and governmental actions, and the ability to maintain normal business activity.

Regulatory, Legislative, and Legal Matters

Regulatory Recovery

Our utilities account for their regulated operations in accordance with accounting guidance under the Regulated Operations Topic of the FASB Accounting Standard Codification. Regulated entities are allowed to defer certain costs that would otherwise be charged to expense if the regulated entity believes the recovery of those costs is probable. We record regulatory assets pursuant to generic and/or specific orders issued by our regulators. Recovery of the deferred costs in future rates is subject to the review and approval by those regulators. We assume the risks and benefits of ultimate recovery of these items in future rates. If the recovery of the deferred costs, including those referenced below, is not approved by our regulators, the costs would be charged to income in the current period. Regulators can impose liabilities on a prospective basis for amounts previously collected from customers and for amounts that are expected to be refunded to customers. We record these items as regulatory liabilities. As of March 31, 2022, our regulatory assets were $3,255.6 million, and our regulatory liabilities were $4,129.4 million.

In January 2014, the ICC approved PGL's use of the QIP rider as a recovery mechanism for costs incurred related to investments in QIP. This rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency. In March 2022, PGL filed its 2021 reconciliation with the ICC, which, along with the 2020, 2019, 2018, 2017, and 2016 reconciliations, are still pending. As of March 31, 2022, there can be no assurance that all costs incurred under the QIP rider during the open reconciliation years will be deemed recoverable by the ICC.

See Note 21, Regulatory Environment, above, and Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for more information regarding recent and pending rate proceedings, orders, and investigations involving our utilities.

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Climate and Equitable Jobs Act

On September 15, 2021, the state of Illinois signed into law the Climate and Equitable Jobs Act. This new legislation includes, among other things, a path for Illinois to move towards 100% clean energy, expanded commitments to energy efficiency and renewable energy, additional consumer protections, and expanded ethics reform. The provisions in this legislation with the potential to have the most significant financial impact on PGL and NSG relate to the new consumer protection requirements.

Effective September 15, 2021, the new legislation prohibits utilities from charging customers a fee when they elect to pay for service with a credit card. Utilities are now required to incur these expenses and seek recovery through a rate proceeding or by establishing a recovery mechanism. In December 2021, the ICC approved the use of a TPTFA rider for PGL. The TPTFA rider allows PGL to recover the costs incurred for these third-party transaction fees, effective December 27, 2021. NSG recovers costs related to these third-party transaction fees through its base rates, effective September 15, 2021.

In accordance with the new legislation, effective January 1, 2023, natural gas utilities will also no longer be allowed to charge late payment fees to low-income residential customers. We are currently evaluating the impact this legislation may have on our future results of operations.

Withhold Release Order Related to Silica-Based Products

The CBP issued a WRO in June 2021, applicable to certain silica-based products originating from the Xinjiang Uyghur Autonomous Region of China, such as polysilicon, included in the manufacturing of solar panels. The WRO was issued over allegations of widespread, state-backed forced labor in the region. A significant percentage of the world’s polysilicon supply comes from China, and as a result of the WRO, many solar panels imported into the United States are being held by the CBP on suspicion that they originated from, or contain components that originated from, this region in China. Solar panels will only be released after the importer provides satisfactory evidence to the contrary, which can be an arduous process. We have been notified that solar panel suppliers have experienced delays associated with this WRO. We are evaluating options to mitigate these delays and maintain original project schedules, although we could experience project delays as a result of this WRO. The project delays could impact Badger Hollow II, which is currently under construction. Also, we cannot currently predict what, if any, impact this supply disruption will have on future solar projects included in our capital plan.

United States Department of Commerce Complaints

In August 2021, a group of anonymous domestic solar manufacturers filed a petition (AD/CVD) with the DOC seeking to impose new tariffs on solar panels and cells imported from several countries, including Malaysia, Vietnam, and Thailand. The petitioners claimed that Chinese solar manufacturers are shifting products to these countries to avoid the tariffs required on products imported from China. In September 2021, the DOC asked that the anonymous group amend its petition to provide more detail and asked the group to identify its members. In its response to the DOC, the anonymous group refused and argued that identifying its members could expose them to retribution from the Chinese solar industry, which dominates the global solar supply chain for critical solar panel components. In November 2021, the DOC rejected the petition filed by the anonymous group and cited the group's anonymity as a driving factor in the denial.

In February 2022, a California based company filed a petition (AD/CVD) with the DOC seeking to impose new tariffs on solar panels and cells imported from multiple countries, including Malaysia, Vietnam, Thailand, and Cambodia. While the petition is similar to the one rejected by DOC in November 2021, there are notable differences. The group added Cambodia to the petition and is requesting that the DOC conduct a country-wide inquiry into each of the four countries. In March 2022, the DOC decided to act on the February petition and investigate the claim. This decision alone is having an adverse impact on the United States solar industry. A DOC decision is expected by January 2023. If the DOC determines that the petition has merit, it would be able to apply any final tariffs retroactively to November 4, 2021. If imposed, the new tariffs are expected to further disrupt the supply of solar modules to the United States, and could impact the cost and timing of our solar projects.

Infrastructure Investment and Jobs Act

In November 2021, President Biden signed into law the Infrastructure Investment and Jobs Act, which provides for approximately $1.2 trillion of federal spending over the next five years, including approximately $85 billion for investments in power, utilities, and renewables infrastructure across the United States. We expect funding from this Act will support the work we are doing to reduce GHG emissions, increase EV charging, and strengthen and protect the energy grid. Funding in the Act should also help to expand

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emerging technologies, like hydrogen and carbon management, as we continue the transition to a clean energy future. We believe the Infrastructure Investment and Jobs Act will accelerate investment in projects that will help us meet our net zero emission goals to the benefit of our customers, the communities we serve, and our company.

Return on Equity Incentive for Membership in a Transmission Organization

The FERC currently allows transmission utilities, including ATC, to increase their ROE by 50 basis points as an incentive for membership in a transmission organization, such as MISO. This incentive was established to stimulate infrastructure development and to support the evolving electric grid. However, a Notice of Proposed Rulemaking was issued by the FERC on April 15, 2021 proposing to limit the 50 basis point increase in ROE to only be available to transmission utilities initially joining a transmission organization for the first three years of membership. If this proposal becomes a final rule, ATC would be required to submit, within 30 days of the final rule's effective date, a compliance filing eliminating the 50 basis point incentive from its tariff. As a result, this proposal, if adopted, would reduce our future after-tax equity earnings from ATC by approximately $7 million annually. The transmission costs WE and WPS are required to pay ATC after the effective date would also be reduced by this proposal.

American Transmission Company Allowed Return on Equity Complaints

On November 21, 2019, the FERC issued an order (November 2019 Order) related to the methodology used to calculate the base ROE for all MISO transmission owners, including ATC. Based on this order, the FERC expanded its base ROE methodology to include the capital-asset pricing model in addition to the discounted cash flow model to better reflect how investors make their investment decisions. The FERC's modified methodology reduced the base ROE that ATC is allowed to collect on a going-forward basis, as discussed below. In response to the FERC's decision, requests for the FERC to rehear the November 2019 Order in its entirety were filed by various parties.

On May 21, 2020, the FERC issued an order (May 2020 Order) that granted in part and denied in part the requests to rehear the November 2019 Order. In the May 2020 Order, the FERC made additional revisions to its base ROE methodology, including adding the use of the risk premium model. As discussed below, the additional revisions made by the FERC increased ATC's base ROE authorized in the November 2019 Order on a going-forward basis. Various parties filed requests to rehear certain parts of the May 2020 Order with the FERC, but the FERC issued an order in response to the rehearing requests during November 2020 (November 2020 Order) that confirmed the ROE authorized in the May 2020 Order. Petitions for review of the November 2019 Order, relevant parts of the May 2020 Order, and the November 2020 Order have also been filed with the D.C. Circuit Court of Appeals.

First Return on Equity Complaint

In November 2013, a group of MISO industrial customer organizations filed a complaint with the FERC requesting to reduce the base ROE used by MISO transmission owners, including ATC, from 12.2% to 9.15%. In September 2016, the FERC issued an order requiring MISO transmission owners to collect a reduced base ROE of 10.32%. This order also allowed the continued collection of any previously authorized ROE incentive adders. For MISO transmission owners, a 0.5% incentive adder was approved by the FERC in January 2015. The FERC then issued the November 2019 Order after directing MISO transmission owners and other stakeholders to provide briefs and comments on a proposed change to the methodology for calculating base ROE. The November 2019 Order further reduced the base ROE for all MISO transmission owners, including ATC, to 9.88%, effective as of September 28, 2016 and prospectively. The November 2019 Order also continued to allow the collection of previously authorized ROE incentive adders, but ATC's ROE incentive adder of 0.5% only applies to revenues collected after January 6, 2015. In response to the rehearing requests filed related to the November 2019 Order, the FERC issued another order in May 2020. This May 2020 Order increased the base ROE for all MISO transmission owners, including ATC, from the 9.88% authorized in the November 2019 Order to 10.02%, effective as of September 28, 2016 and prospectively. The May 2020 Order also allowed the continued collection of previously authorized ROE incentive adders. However, ATC's 0.5% ROE incentive adder may be eliminated going forward, as discussed above.

ATC was required to provide refunds, with interest, for the 15-month refund period from November 12, 2013 through February 11, 2015 and for the period from September 28, 2016 through November 19, 2020. In January 2022, ATC completed providing WE and WPS with net refunds related to the transmission costs they paid during the two refund periods. These refunds were applied to WE's and WPS's PSCW-approved escrow accounting for transmission expense.

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Second Return on Equity Complaint

In February 2015, a second complaint was filed with the FERC requesting a reduction in the base ROE used by MISO transmission owners, including ATC, to 8.67%, with a refund effective date retroactive to February 12, 2015. The FERC also addressed this second complaint in the November 2019 Order. Similar to the first complaint, the November 2019 Order stated that the base ROE of 9.88% and the collection of previously authorized ROE incentive adders, such as ATC's 0.5% adder, were reasonable for the period covered by the second complaint, February 12, 2015 through May 10, 2016. However, in the November 2019 Order, the FERC relied on certain provisions of the Federal Power Act to dismiss the second complaint and to determine that refunds were not allowed for this period. In its May 2020 Order, the FERC stated the new base ROE of 10.02% and the collection of previously authorized ROE incentive adders were reasonable for the period covered by the second complaint. However, the FERC relied on the same provisions of the Federal Power Act to again dismiss the complaint and determine that refunds were not allowed for this period. The FERC also denied the requests to rehear both the dismissal of the second complaint and the determination that no refunds are allowed for the second complaint period.

Due to the various outstanding petitions related to the November 2019 Order, May 2020 Order, and November 2020 Order, refunds could still be required for the second complaint period. Therefore, our financials continue to reflect a liability of $39.1 million, reducing our equity earnings from ATC. This liability is based on a 10.52% ROE for the second complaint period. If it is ultimately determined that a refund is required for the second complaint period, we would not expect any such refund to have a material impact on our financial statements or results of operations in the future. In addition, WE and WPS would be entitled to receive a portion of the refund from ATC for the benefit of their customers.

Environmental Matters

See Note 19, Commitments and Contingencies, for a discussion of certain environmental matters affecting us, including rules and regulations relating to air quality, water quality, land quality, and climate change.

Market Risks and Other Significant Risks

We are exposed to market and other significant risks as a result of the nature of our businesses and the environments in which those businesses operate. These risks include, but are not limited to, the inflation and supply chain disruptions described below. In addition, there is continuing uncertainty over the impact that the ongoing conflict between Russia and Ukraine will have on the global economy, supply chains, and fuel prices. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Market Risks and Other Significant Risks in our 2021 Annual Report on Form 10-K for a discussion of market and other significant risks applicable to us.

Inflation and Supply Chain Disruptions

We continue to monitor the impact of inflation and supply chain disruptions. We monitor the costs of medical plans, fuel, transmission access, construction costs, regulatory and environmental compliance costs, and other costs in order to minimize inflationary effects in future years, to the extent possible, through pricing strategies, productivity improvements, and cost reductions. We monitor the global supply chain, and related disruptions, in order to ensure we are able to procure the necessary materials and other resources necessary to both maintain our energy services in a safe and reliable manner and to grow our infrastructure in accordance with our capital plan. For additional information concerning risks related to inflation and supply chain disruptions, see the two risk factors below that are disclosed in Part I of our 2021 Annual Report on Form 10-K.

•Item 1A. Risk Factors – Risks Related to the Operation of Our Business – Our operations and corporate strategy may be adversely affected by supply chain disruptions and inflation.

•Item 1A. Risk Factors – Risks Related to Economic and Market Volatility – Fluctuating commodity prices could negatively impact our electric and natural gas utility operations.

For additional information concerning risk factors, including market risks, see the Cautionary Statement Regarding Forward-Looking Information at the beginning of this report.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes related to market risk from the disclosures presented in our 2021 Annual Report on Form 10-K. In addition to the Form 10-K disclosures, see Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – COVID-19 Pandemic and Market Risks and Other Significant Risks in Item 2 of Part I of this report, as well as Note 11, Fair Value Measurements, Note 12, Derivative Instruments, and Note 13, Guarantees, in this report for information concerning our market risk exposures.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon such evaluation, our principal executive officer and principal financial officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective: (i) in recording, processing, summarizing, and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act; and (ii) to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the first quarter of 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The following should be read in conjunction with Item 3. Legal Proceedings in Part I of our 2021 Annual Report on Form 10-K. See Note 19, Commitments and Contingencies, and Note 21, Regulatory Environment, in this report for additional information on material legal proceedings and matters related to us and our subsidiaries.

In addition to those legal proceedings discussed in Note 19, Commitments and Contingencies, Note 21, Regulatory Environment, and below, we are currently, and from time to time, subject to claims and suits arising in the ordinary course of business. Although the results of these additional legal proceedings cannot be predicted with certainty, management believes, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material impact on our financial statements.

Environmental Matters

Manlove Field Matter

In September 2017, the Illinois Department of Natural Resources, Office of Oil and Gas Resource Management, issued a VN to PGL related to a leak of natural gas from a well located at the PGL Manlove Gas Storage Field in December 2016. PGL quickly shut down and permanently plugged the well to contain the leak after it was discovered. The leak resulted in the migration of natural gas from the well to the Mahomet Aquifer located in central Illinois and impacted residential freshwater wells. PGL has been working with residents potentially impacted by the natural gas leak and the Illinois state agencies, to investigate and remediate the impacts of the natural gas leak to the Mahomet Aquifer. In October 2017, the Illinois AG filed a complaint against PGL alleging certain violations of the Illinois Environmental Protection Act and the Oil and Gas Act. PGL entered into an Agreed Interim Order with the State of Illinois in October 2017 and a First Amended Agreed Interim Order in September 2019 whereby PGL agreed, among other things, to continue actions it was already undertaking proactively, including the submittal of a GMZ application to the IEPA. A supplemental filing was sent to the IEPA in December 2019. In September 2020, the IEPA sent PGL a letter conditionally approving the GMZ application. PGL has taken steps to implement the requirements of the approved GMZ project.

In addition, in December 2017, the IEPA issued a VN to PGL alleging the same violations as the AG. Lastly, in January 2018, the IEPA issued a VN alleging certain violations of Illinois air emission rules arising from the construction and operation of flaring equipment at the leak site. Both of the IEPA VN matters have been referred to the AG for enforcement.

In the complaint, as is customary in these types of actions, the AG cited to the statutory penalties allowed by law. Ultimately, the pursuit of any civil penalties is at the AG’s discretion. In the event the AG pursues penalties in connection with a final order, we believe that PGL's high level of cooperation and quick action to remedy the situation and to work with the potentially impacted homeowners would be taken into account. At this time, we believe that civil penalties, if any, will not have a material impact on our financial statements.

ITEM 1A. RISK FACTORS

There were no material changes from the risk factors disclosed in Item 1A. Risk Factors in Part I of our 2021 Annual Report on Form 10-K.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding the purchases of our equity securities made by or on behalf of us or any affiliated purchaser (as defined in Exchange Act Rule 10b-18) during the three months ended March 31, 2022:

Issuer Purchases of Equity Securities
2022	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 – January 31	17,926	$	96.19	—	$	—
February 1 – February 28	—	—		—	—
March 1 – March 31	—	—		—	—
Total (1)	17,926	$	96.19	—

(1)All shares were surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock.

ITEM 6. EXHIBITS
Number	Exhibit
10	Material Contracts
	10.1	Retention Agreement by and between WEC Energy Group and Scott J. Lauber, dated February 21, 2022 (Exhibit 10.16 to WEC Energy Group's 12/31/2021 Form 10-K).
31	Rule 13a-14(a) / 15d-14(a) Certifications
	31.1	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2	Certification Pursuant to Rule 13a-14(a) or 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Section 1350 Certifications
	32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data Files
	101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
	101.SCH	Inline XBRL Taxonomy Extension Schema
	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
	101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		WEC ENERGY GROUP, INC.
		(Registrant)
		/s/ WILLIAM J. GUC
Date:	May 5, 2022	William J. Guc
		Vice President and Controller
		(Duly Authorized Officer and Chief Accounting Officer)

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EX-31.1

Exhibit 31.1

Certification Pursuant to

Rule 13a-14(a) or 15d-14(a),

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Scott J. Lauber, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of WEC Energy Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 5, 2022
	/s/ SCOTT J. LAUBER
	Scott J. Lauber
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification Pursuant to

Rule 13a-14(a) or 15d-14(a),

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Xia Liu, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of WEC Energy Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 5, 2022
	/s/ XIA LIU
	Xia Liu
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of WEC Energy Group, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on May 5, 2022 (the "Report"), I, Scott J. Lauber, President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ SCOTT J. LAUBER

Scott J. Lauber

President and Chief Executive Officer

May 5, 2022

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of WEC Energy Group, Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission on May 5, 2022 (the "Report"), I, Xia Liu, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ XIA LIU

Xia Liu

Executive Vice President and Chief Financial Officer

May 5, 2022

XML

COVER PAGE	3 Months Ended
	Mar. 31, 2022 shares
Cover [Abstract]
Document type	10-Q
Document Quarterly Report	true
Document period end date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-09057
Entity registrant name	WEC ENERGY GROUP, INC.
Entity Tax Identification Number	39-1391525
Entity Incorporation, State or Country Code	WI
Entity Address, Address Line One	231 West Michigan Street
Entity Address, Address Line Two	P.O. Box 1331
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53201
City Area Code	414
Local Phone Number	221-2345
Title of 12(b) Security	Common Stock, $.01 Par Value
Trading Symbol	WEC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity filer category	Large Accelerated Filer
Small company	false
Emerging growth company	false
Entity Shell Company	false
Entity common stock, shares outstanding	315,434,531
Entity central index key	0000783325
Current fiscal year end date	--12-31
Document fiscal year focus	2022
Document fiscal period focus	Q1
Amendment flag	false

XML

CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Operating revenues	$ 2,908.1	$ 2,691.4
Operating expenses
Cost of sales	1,383.4	1,265.6
Other operation and maintenance	454.4	479.9
Depreciation and amortization	278.1	261.4
Property and revenue taxes	60.8	55.2
Total operating expenses	2,176.7	2,062.1
Operating income	731.4	629.3
Equity in earnings of transmission affiliates	41.7	42.6
Other income, net	39.6	32.8
Interest expense	117.6	119.5
Other expense	(36.3)	(44.1)
Income before income taxes	695.1	585.2
Income tax expense	127.1	74.9
Net income	568.0	510.3
Preferred stock dividends of subsidiary	0.3	0.3
Net (income) loss attributable to noncontrolling interests	1.8	(0.1)
Net income attributed to common shareholders	$ 565.9	$ 510.1
Earnings per share
Basic (in dollars per share)	$ 1.79	$ 1.62
Diluted (in dollars per share)	$ 1.79	$ 1.61
Weighted average common shares outstanding
Basic (in shares)	315.4	315.4
Diluted (in shares)	316.2	316.2

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Other Comprehensive Income [Abstract]
Net income	$ 568.0	$ 510.3
Derivatives accounted for as cash flow hedges
Reclassification of realized net derivative (gain) loss to net income, net of tax	(0.1)	1.0
Cash flow hedges, net	(0.1)	1.0
Defined benefit plans
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax	0.1	0.1
Other comprehensive income, net of tax	0.0	1.1
Comprehensive income	568.0	511.4
Preferred stock dividends of subsidiary	0.3	0.3
Comprehensive (income) loss attributed to noncontrolling interests	(1.8)	0.1
Comprehensive income attributed to common shareholders	$ 565.9	$ 511.2

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 33.8	$ 16.3
Accounts receivable and unbilled revenues, net of reserves of $200.6 and $198.3, respectively	1,635.7	1,505.7
Materials, supplies, and inventories	368.8	635.8
Prepayments	172.9	245.5
Derivative assets	204.3	107.0
Other	147.1	146.4
Current assets	2,562.6	2,656.7
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $10,041.4 and $9,889.3, respectively	27,110.2	26,982.4
Regulatory assets (March 31, 2022 and December 31, 2021 include $98.2 and $100.7, respectively, related to WEPCo Environmental Trust)	3,163.6	3,264.8
Equity investment in transmission affiliates	1,818.2	1,789.4
Goodwill	3,052.8	3,052.8
Pension and OPEB assets	910.2	881.3
Other	356.9	361.1
Long-term assets	36,411.9	36,331.8
Total assets	38,974.5	38,988.5
Current liabilities
Short-term debt	1,450.0	1,897.0
Current portion of long-term debt (March 31, 2022 and December 31, 2021 include $8.8, related to WEPCo Environmental Trust)	163.4	169.4
Accounts payable	693.7	1,005.7
Other	957.3	680.9
Current liabilities	3,264.4	3,753.0
Long-term liabilities
Long-term debt (March 31, 2022 and December 31, 2021 include $102.8 and $102.7, respectively, related to WEPCo Environmental Trust)	13,514.3	13,523.7
Deferred income taxes	4,426.2	4,308.5
Deferred revenue, net	383.8	389.2
Regulatory liabilities	4,032.6	3,946.0
Environmental remediation liabilities	517.2	532.6
Pension and OPEB obligations	218.5	219.0
Other	1,173.0	1,203.2
Long-term liabilities	24,265.6	24,122.2
Commitments and contingencies (Note 19)
Common shareholders' equity
Common stock – $0.01 par value; 325,000,000 shares authorized; 315,434,531 shares outstanding	3.2	3.2
Additional paid in capital	4,131.8	4,138.1
Retained earnings	7,111.4	6,775.1
Accumulated other comprehensive loss	(3.2)	(3.2)
Common shareholders' equity	11,243.2	10,913.2
Preferred stock of subsidiary	30.4	30.4
Noncontrolling interests	170.9	169.7
Total liabilities and equity	$ 38,974.5	$ 38,988.5

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable and unbilled revenues, reserves	$ 200.6	$ 198.3
Property, plant, and equipment, accumulated depreciation and amortization	$ 10,041.4	$ 9,889.3
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	325,000,000	325,000,000
Common stock, shares outstanding	315,434,531	315,434,531
Regulatory assets (March 31, 2022 and December 31, 2021 include $98.2 and $100.7, respectively, related to WEPCo Environmental Trust)	$ 3,163.6	$ 3,264.8
WEPCo Environmental Trust
Regulatory assets (March 31, 2022 and December 31, 2021 include $98.2 and $100.7, respectively, related to WEPCo Environmental Trust)	98.2	100.7
Current portion of long-term debt (March 31, 2022 and December 31, 2021 include $8.8, related to WEPCo Environmental Trust)	8.8	8.8
Long-term debt (March 31, 2022 and December 31, 2021 include $102.8 and $102.7, respectively, related to WEPCo Environmental Trust)	$ 102.8	$ 102.7

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net income	$ 568.0	$ 510.3
Reconciliation to cash provided by operating activities
Depreciation and amortization	278.1	261.4
Deferred income taxes and ITCs, net	103.8	129.6
Contributions and payments related to pension and OPEB plans	(3.6)	(4.1)
Equity income in transmission affiliates, net of distributions	(7.7)	(9.2)
Change in –
Accounts receivable and unbilled revenues, net	(174.3)	(150.4)
Materials, supplies, and inventories	267.0	175.1
Prepayments	72.6	4.6
Amounts recoverable from customers	10.3	(286.7)
Other current assets	1.1	15.6
Accounts payable	(293.8)	(181.5)
Other current liabilities	289.5	(2.3)
Other, net	(34.2)	(67.2)
Net cash provided by operating activities	1,076.8	395.2
Investing activities
Capital expenditures	(383.5)	(470.6)
Acquisition of Jayhawk	0.0	(119.4)
Capital contributions to transmission affiliates	(21.1)	0.0
Proceeds from the sale of assets	9.7	11.3
Proceeds from the sale of investments held in rabbi trust	15.4	12.7
Insurance proceeds received for property damage	41.0	0.0
Other, net	0.3	24.7
Net cash used in investing activities	(338.2)	(541.3)
Financing activities
Exercise of stock options	11.8	1.2
Purchase of common stock	(23.4)	(6.6)
Dividends paid on common stock	(229.6)	(213.7)
Issuance of long-term debt	0.0	600.0
Retirement of long-term debt	(15.4)	(14.7)
Issuance of short-term loan	0.9	0.0
Repayment of short-term loan	0.0	(340.0)
Change in other short-term debt	(447.9)	143.5
Other, net	(2.9)	(6.6)
Net cash provided by (used in) financing activities	(706.5)	163.1
Net change in cash, cash equivalents, and restricted cash	32.1	17.0
Cash, cash equivalents, and restricted cash at beginning of period	87.5	72.6
Cash, cash equivalents, and restricted cash at end of period	$ 119.6	$ 89.6

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions	Total	Total common shareholders' equity	Common stock	Additional paid in capital	Retained earnings	Accumulated other comprehensive loss	Preferred stock of subsidiary	Noncontrolling interests
Balance at Dec. 31, 2020	$ 10,662.5	$ 10,469.7	$ 3.2	$ 4,143.7	$ 6,329.6	$ (6.8)	$ 30.4	$ 162.4
Statements of equity
Net income attributed to common shareholders	510.1	510.1	0.0	0.0	510.1	0.0	0.0	0.0
Net income (loss) attributable to noncontrolling interests	(0.1)	0.0	0.0	0.0	0.0	0.0	0.0	(0.1)
Other comprehensive income	1.1	1.1	0.0	0.0	0.0	1.1	0.0	0.0
Common stock dividends	(213.7)	(213.7)	0.0	0.0	(213.7)	0.0	0.0	0.0
Exercise of stock options	1.2	1.2	0.0	1.2	0.0	0.0	0.0	0.0
Purchase of common stock	(6.6)	(6.6)	0.0	(6.6)	0.0	0.0	0.0	0.0
Acquisition of a noncontrolling interest	6.2	0.0	0.0	0.0	0.0	0.0	0.0	6.2
Capital contributions from noncontrolling interest	2.0	0.0	0.0	0.0	0.0	0.0	0.0	2.0
Distributions to noncontrolling interests	(0.4)	0.0	0.0	0.0	0.0	0.0	0.0	(0.4)
Stock-based compensation and other	5.3	5.3	0.0	5.3	0.0	0.0	0.0	0.0
Balance at Mar. 31, 2021	10,967.6	10,767.1	3.2	4,143.6	6,626.0	(5.7)	30.4	170.1
Balance at Dec. 31, 2021	11,113.3	10,913.2	3.2	4,138.1	6,775.1	(3.2)	30.4	169.7
Statements of equity
Net income attributed to common shareholders	565.9	565.9	0.0	0.0	565.9	0.0	0.0	0.0
Net income (loss) attributable to noncontrolling interests	1.8	0.0	0.0	0.0	0.0	0.0	0.0	1.8
Other comprehensive income	0.0
Common stock dividends	(229.6)	(229.6)	0.0	0.0	(229.6)	0.0	0.0	0.0
Exercise of stock options	11.8	11.8	0.0	11.8	0.0	0.0	0.0	0.0
Purchase of common stock	(23.4)	(23.4)	0.0	(23.4)	0.0	0.0	0.0	0.0
Capital contributions from noncontrolling interest	0.4	0.0	0.0	0.0	0.0	0.0	0.0	0.4
Distributions to noncontrolling interests	(1.0)	0.0	0.0	0.0	0.0	0.0	0.0	(1.0)
Stock-based compensation and other	5.3	5.3	0.0	5.3	0.0	0.0	0.0	0.0
Balance at Mar. 31, 2022	$ 11,444.5	$ 11,243.2	$ 3.2	$ 4,131.8	$ 7,111.4	$ (3.2)	$ 30.4	$ 170.9

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common stock dividend declared (in dollars per share)	$ 0.7275	$ 0.6775

XML

GENERAL INFORMATION

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL INFORMATION

GENERAL INFORMATION

WEC Energy Group serves approximately 1.6 million electric customers and 3.0 million natural gas customers, owns approximately 60% of ATC, and owns majority interests in multiple wind generating facilities as part of its non-utility energy infrastructure business.

As used in these notes, the term "financial statements" refers to the condensed consolidated financial statements. This includes the income statements, statements of comprehensive income, balance sheets, statements of cash flows, and statements of equity, unless otherwise noted. In this report, when we refer to "the Company," "us," "we," "our," or "ours," we are referring to WEC Energy Group and all of its subsidiaries.

On our financial statements, we consolidate our majority-owned subsidiaries, which we control, and VIEs, of which we are the primary beneficiary. We reflect noncontrolling interests for the portion of entities that we do not own as a component of consolidated equity separate from the equity attributable to our shareholders. The noncontrolling interests that we reported as equity on our balance sheets related to the minority interests at Bishop Hill III, Blooming Grove, Coyote Ridge, Jayhawk, Tatanka Ridge, and Upstream held by third parties.

We use the equity method to account for investments in companies we do not control but over which we exercise significant influence regarding their operating and financial policies. As a result of our limited voting rights, we account for ATC and ATC Holdco as equity method investments. See Note 16, Investment in Transmission Affiliates, for more information.

We have prepared the unaudited interim financial statements presented in this Form 10-Q pursuant to the rules and regulations of the SEC and GAAP. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period may not give a true indication of results for the year. In particular, the results of operations for the three months ended March 31, 2022, are not necessarily indicative of expected results for 2022 due to seasonal variations and other factors.

In management's opinion, we have included all adjustments, normal and recurring in nature, necessary for a fair presentation of our financial results.

XML

ACQUISITIONS

3 Months Ended

Mar. 31, 2022

Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

In accordance with Topic 805: Clarifying the Definition of a Business (ASU 2017-01), transactions are evaluated and are accounted for as acquisitions (or disposals) of assets or businesses, and transaction costs are capitalized in asset acquisitions. The purchase price of certain acquisitions below includes intangibles recorded as long-term liabilities related to PPAs and interconnection agreements. See Note 15, Goodwill and Intangibles, for more information.

Acquisition of Electric Generation Facility in Wisconsin

In November 2021, WE and WPS signed an asset purchase agreement to acquire Whitewater, a commercially operational 236.5 MW dual fueled (natural gas and low sulfur fuel oil) combined cycle electrical generation facility in Whitewater, Wisconsin, for $72.7 million. The transaction is expected to close in January 2023. In December 2021, WE and WPS filed an application with the PSCW for approval to acquire Whitewater.

Acquisition of a Wind Energy Generation Facility in Illinois

In June 2021, WECI signed an agreement to acquire a 90% ownership interest in Sapphire Sky, a 250 MW wind generating facility under construction in McLean County, Illinois, for approximately $412 million. The project has an offtake agreement with an unaffiliated third party for all of the energy to be produced by the facility for a period of 12 years. WECI's investment in Sapphire Sky is expected to qualify for PTCs. The transaction is subject to FERC approval and commercial operation is expected to begin by the end

of 2022, at which time the transaction is expected to close. Sapphire Sky will be included in the non-utility energy infrastructure segment.

Acquisition of a Wind Energy Generation Facility in Kansas

In February 2021, WECI completed the acquisition of a 90% ownership interest in Jayhawk, a 190 MW wind generating facility in Bourbon and Crawford counties, Kansas, for $119.9 million, which included transaction costs. The project became commercially operational in December 2021. Subsequent to the acquisition, WECI incurred an additional $147.4 million of capital expenditures for the project for a total investment of $267.3 million. The project has an offtake agreement with an unaffiliated third party for all of the energy to be produced by the facility for a period of 10 years. WECI's investment in Jayhawk qualifies for PTCs. WECI is entitled to 99% of the tax benefits related to this facility for the first 10 years of commercial operation, after which we will be entitled to tax benefits equal to our ownership interest. Jayhawk is included in the non-utility energy infrastructure segment.

Acquisition of Wind Generation Facility in Nebraska

In August 2019, WECI signed an agreement to acquire an 80% ownership interest in Thunderhead, a 300 MW wind generating facility under construction in Antelope and Wheeler counties in Nebraska, for a total investment of approximately $338 million. In February 2020, WECI agreed to acquire an additional 10% ownership interest in Thunderhead for $43 million. The project has an offtake agreement for all of the energy to be produced by the facility for 12 years. WECI's investment in Thunderhead is expected to qualify for PTCs. The transaction was approved by FERC in April 2020, and commercial operation was initially expected to begin by the end of 2020. However, due to a delay in construction of the required substation, Thunderhead is now expected to begin commercial operation in the Fall of 2022. The transaction is expected to close upon commercial operation. Thunderhead will be included in the non-utility energy infrastructure segment.

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OPERATING REVENUES

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

OPERATING REVENUES

OPERATING REVENUES

For more information about our operating revenues, see Note 1(d), Operating Revenues, in our 2021 Annual Report on Form 10-K.

Disaggregation of Operating Revenues

The following tables present our operating revenues disaggregated by revenue source. We do not have any revenues associated with our electric transmission segment, which includes investments accounted for using the equity method. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. For our segments, revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations have different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions.

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2022
Electric	$	1,187.5	$	—	$	—	$	1,187.5	$	—	$	—	$	—		$	1,187.5
Natural gas	746.8		679.9		238.2		1,664.9		15.3		—		(14.8)			1,665.4
Total regulated revenues	1,934.3		679.9		238.2		2,852.4		15.3		—		(14.8)			2,852.9
Other non-utility revenues	—		—		4.6		4.6		43.7		—		(1.6)			46.7
Total revenues from contracts with customers	1,934.3		679.9		242.8		2,857.0		59.0		—		(16.4)			2,899.6
Other operating revenues	8.0		2.2		(1.9)		8.3		100.5		0.2		(100.5)		(1)	8.5
Total operating revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	159.5	$	0.2	$	(116.9)		$	2,908.1

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2021
Electric	$	1,095.0	$	—	$	—	$	1,095.0	$	—	$	—	$	—		$	1,095.0
Natural gas	627.3		693.5		225.6		1,546.4		14.6		—		(13.3)			1,547.7
Total regulated revenues	1,722.3		693.5		225.6		2,641.4		14.6		—		(13.3)			2,642.7
Other non-utility revenues	—		—		4.7		4.7		23.2		—		(1.6)			26.3
Total revenues from contracts with customers	1,722.3		693.5		230.3		2,646.1		37.8		—		(14.9)			2,669.0
Other operating revenues	9.4		9.9		3.0		22.3		99.8		0.1		(99.8)		(1)	22.4
Total operating revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	137.6	$	0.1	$	(114.7)		$	2,691.4

(1)Amounts eliminated represent lease revenues related to certain plants that We Power leases to WE to supply electricity to its customers. Lease payments are billed from We Power to WE and then recovered in WE's rates as authorized by the PSCW and the FERC. WE operates the plants and is authorized by the PSCW and Wisconsin state law to fully recover prudently incurred operating and maintenance costs in electric rates.

Revenues from Contracts with Customers

Electric Utility Operating Revenues

The following table disaggregates electric utility operating revenues into customer class:

	Three Months Ended March 31
(in millions)	2022		2021
Residential	$	463.1	$	423.7
Small commercial and industrial	370.1		331.4
Large commercial and industrial	229.2		209.5
Other	7.8		7.8
Total retail revenues	1,070.2		972.4
Wholesale	42.4		39.7
Resale	56.8		62.7
Steam	12.1		14.8
Other utility revenues	6.0		5.4
Total electric utility operating revenues	$	1,187.5	$	1,095.0

Natural Gas Utility Operating Revenues

The following tables disaggregate natural gas utility operating revenues into customer class:

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2022
Residential	$	502.5	$	465.5	$	161.3	$	1,129.3
Commercial and industrial	272.5		158.3		86.8		517.6
Total retail revenues	775.0		623.8		248.1		1,646.9
Transportation	25.5		80.9		13.9		120.3
Other utility revenues (1)	(53.7)		(24.8)		(23.8)		(102.3)
Total natural gas utility operating revenues	$	746.8	$	679.9	$	238.2	$	1,664.9

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2021
Residential	$	347.6	$	333.9	$	87.9	$	769.4
Commercial and industrial	176.4		102.7		43.9		323.0
Total retail revenues	524.0		436.6		131.8		1,092.4
Transportation	24.4		74.2		11.0		109.6
Other utility revenues (1)	78.9		182.7		82.8		344.4
Total natural gas utility operating revenues	$	627.3	$	693.5	$	225.6	$	1,546.4

(1)Includes the revenues subject to the purchased gas recovery mechanisms of our utilities. The amounts for the three months ended March 31, 2021 reflect the higher natural gas costs that were incurred as a result of the extreme winter weather conditions in February 2021. As these amounts are billed to customers, they are reflected in retail revenues with an offsetting decrease in other utility revenues. In 2022, we continued to recover on natural gas costs we under-collected from our customers in 2021, related to the extreme weather. In addition, during the first quarter of 2022 we over-collected natural gas costs due to these costs being lower than what was anticipated in rates. See Note 21, Regulatory Environment, for more information.

Other Natural Gas Operating Revenues

We have other natural gas operating revenues from Bluewater, which is in our non-utility energy infrastructure segment. Bluewater has entered into long-term service agreements for natural gas storage services with WE, WPS, and WG, and also provides limited service to unaffiliated customers. All amounts associated with the service agreements with WE, WPS, and WG have been eliminated at the consolidated level.

Other Non-Utility Operating Revenues

Other non-utility operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Wind generation revenues	$	36.2	$	15.8
We Power revenues (1)	5.9		5.8
Appliance service revenues	4.6		4.7
Total other non-utility operating revenues	$	46.7	$	26.3

(1)As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected these carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as a contract liability, which is presented as deferred revenue, net on our balance sheets. We continually amortize the deferred carrying costs to revenues over the related lease term that We Power has with WE.

Other Operating Revenues

Other operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Late payment charges	$	13.6	$	15.0
Alternative revenues (1)	(6.0)		6.2
Other	0.9		1.2
Total other operating revenues	$	8.5	$	22.4

(1)Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. Negative amounts can also result from revenues to be refunded to customers subject to decoupling mechanisms, wholesale true-ups, conservation improvement rider true-ups, and certain late payment charges.

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CREDIT LOSSES

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

CREDIT LOSSES

CREDIT LOSSES

Our exposure to credit losses is related to our accounts receivable and unbilled revenue balances, which are primarily generated from the sale of electricity and natural gas by our regulated utility operations. Credit losses associated with our utility operations are analyzed at the reportable segment level as we believe contract terms, political and economic risks, and the regulatory environment are similar at this level as our reportable segments are generally based on the geographic location of the underlying utility operations.

We have an accounts receivable and unbilled revenue balance associated with our non-utility energy infrastructure segment, related to the sale of electricity from our majority-owned wind generating facilities through agreements with several large high credit quality counterparties.

We evaluate the collectability of our accounts receivable and unbilled revenue balances considering a combination of factors. For some of our larger customers and also in circumstances where we become aware of a specific customer's inability to meet its financial obligations to us, we record a specific allowance for credit losses against amounts due in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we use the accounts receivable aging method to calculate an allowance for credit losses. Using this method, we classify accounts receivable into different aging buckets and calculate a reserve percentage for each aging bucket based upon historical loss rates. The calculated reserve percentages are updated on at least an annual basis, in order to ensure recent macroeconomic, political, and regulatory trends are captured in the calculation, to the extent possible. Risks identified that we do not believe are reflected in the calculated reserve percentages, are assessed on a quarterly basis to determine whether further adjustments are required.

We monitor our ongoing credit exposure through active review of counterparty accounts receivable balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. To the extent possible, we work with customers with past due balances to negotiate payment plans, but will disconnect customers for non-payment as allowed by our regulators, if necessary, and employ collection agencies and legal counsel to pursue recovery of defaulted receivables. For our larger customers, detailed credit review procedures may be performed in advance of any sales being made. We sometimes require letters of credit, parental guarantees, prepayments or other forms of credit assurance from our larger customers to mitigate credit risk.

We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at March 31, 2022 and December 31, 2021, by reportable segment.

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
March 31, 2022
Accounts receivable and unbilled revenues	$	1,072.2		$	612.8		$	125.7		$	1,810.7		$	17.1		$	8.5		$	1,836.3
Allowance for credit losses	85.7			107.0			7.9			200.6			—			—			200.6
Accounts receivable and unbilled revenues, net (1)	$	986.5		$	505.8		$	117.8		$	1,610.1		$	17.1		$	8.5		$	1,635.7
Total accounts receivable, net – past due greater than 90 days (1)	$	55.5		$	43.7		$	3.7		$	102.9		$	—		$	—		$	102.9
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	98.2		%	100.0		%	—		%	95.4		%	—		%	—		%	95.4		%

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2021
Accounts receivable and unbilled revenues	$	1,053.1		$	523.1		$	105.7		$	1,681.9		$	17.0		$	5.1		$	1,704.0
Allowance for credit losses	84.0			105.5			8.8			198.3			—			—			198.3
Accounts receivable and unbilled revenues, net (1)	$	969.1		$	417.6		$	96.9		$	1,483.6		$	17.0		$	5.1		$	1,505.7
Total accounts receivable, net – past due greater than 90 days (1)	$	46.5		$	36.6		$	3.4		$	86.5		$	—		$	—		$	86.5
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.6		%	100.0		%	—		%	94.8		%	—		%	—		%	94.8		%

(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at March 31, 2022, $1,008.4 million, or 61.6%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

A rollforward of the allowance for credit losses by reportable segment for the three months ended March 31, 2022 and 2021 is included below:

Three Months Ended March 31, 2022 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2022	$	84.0	$	105.5	$	8.8	$	198.3
Provision for credit losses	11.8		11.3		0.2		23.3
Provision for credit losses deferred for future recovery or refund	8.8		12.1		—		20.9
Write-offs charged against the allowance	(28.8)		(27.3)		(1.4)		(57.5)
Recoveries of amounts previously written off	9.9		5.4		0.3		15.6
Balance at March 31, 2022	$	85.7	$	107.0	$	7.9	$	200.6

On a consolidated basis, there was a $2.3 million increase in the allowance for credit losses at March 31, 2022, compared to January 1, 2022, driven by an increase in past due accounts receivable balances at our Wisconsin and Illinois reportable segments. We believe that the higher year-over-year energy costs that customers were seeing, which were driven by high natural gas prices, contributed to the higher past due accounts receivable balances. An increase in past due balances is also a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31.

Three Months Ended March 31, 2021 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2021	$	102.1	$	111.6	$	6.4	$	220.1
Provision for credit losses	13.7		7.1		1.3		22.1
Provision for credit losses deferred for future recovery or refund	22.3		3.1		—		25.4
Write-offs charged against the allowance	(18.5)		(2.8)		(0.5)		(21.8)
Recoveries of amounts previously written off	9.9		3.0		0.4		13.3
Balance at March 31, 2021	$	129.5	$	122.0	$	7.6	$	259.1

The increase in the allowance for credit losses at March 31, 2021, compared to January 1, 2021, was driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by the continued economic disruptions caused by the COVID-19 pandemic, including continued high unemployment rates. Also, as a result of the winter moratorium rules and the COVID-19 pandemic and related regulatory orders we received, we were unable to disconnect any of our Wisconsin and Illinois residential customers in the first quarter of 2021 and during all of 2020.

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REGULATORY ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]

REGULATORY ASSETS AND LIABILITIES

REGULATORY ASSETS AND LIABILITIES

The following regulatory assets and liabilities were reflected on our balance sheets at March 31, 2022 and December 31, 2021. For more information on our regulatory assets and liabilities, see Note 6, Regulatory Assets and Liabilities, in our 2021 Annual Report on Form 10-K.

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets
Pension and OPEB costs	$	783.1	$	802.3
Plant retirement related items	714.8		722.3
Environmental remediation costs	618.8		630.9
Income tax related items	456.6		458.8
Asset retirement obligations	179.6		194.2
System support resource	128.4		129.5
Securitization	98.2		100.7
Energy costs recoverable through rate adjustments	70.1		85.4
MERC extraordinary natural gas costs	51.6		59.7
Uncollectible expense	47.6		42.6
Energy efficiency programs	20.4		22.0
Derivatives (1)	3.6		33.1
Other, net	82.8		85.6
Total regulatory assets	$	3,255.6	$	3,367.1
Balance sheet presentation
Other current assets	$	92.0	$	102.3
Regulatory assets	3,163.6		3,264.8
Total regulatory assets	$	3,255.6	$	3,367.1

(1)For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

(in millions)	March 31, 2022		December 31, 2021
Regulatory liabilities
Income tax related items	$	1,981.6	$	1,998.5
Removal costs	1,247.2		1,248.0
Pension and OPEB benefits	392.8		397.3
Derivatives (1)	245.3		124.1
Energy costs refundable through rate adjustments (2)	97.6		13.7
Electric transmission costs (3)	65.5		84.2
Uncollectible expense	29.7		37.1
Earnings sharing mechanisms (3)	22.5		28.4
Other, net	47.2		29.0
Total regulatory liabilities	$	4,129.4	$	3,960.3
Balance sheet presentation
Other current liabilities	$	96.8	$	14.3
Regulatory liabilities	4,032.6		3,946.0
Total regulatory liabilities	$	4,129.4	$	3,960.3

(1)    For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

(2)    The increase in these regulatory liabilities was primarily related to lower natural gas costs incurred in the first quarter of 2022, compared to what was anticipated in rates.

(3)    The decrease in these regulatory liability balances was primarily related to the PSCW's approval of certain accounting treatments that allowed our Wisconsin utilities to forego applying for a 2022 base rate increase, and instead maintain base rates consistent with 2021 levels. Among the accounting treatments approved was the amortization of certain regulatory liability balances in 2022, to offset a portion of the forecasted revenue deficiency. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.

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PROPERTY, PLANT, AND EQUIPMENT

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT

Wisconsin Segment Plant to be Retired

Columbia Units 1 and 2

As a result of a MISO ruling received in June 2021, retirement of the jointly-owned Columbia generating units 1 and 2 became probable. Columbia generating units 1 and 2 are expected to be retired by the end of 2023 and 2024, respectively. The net book value of WPS's ownership share of unit 1 and unit 2 was $87.9 million and $186.2 million, respectively, at March 31, 2022. These amounts were classified as plant to be retired within property, plant, and equipment on our balance sheets. These units are included in rate base, and WPS continues to depreciate them on a straight-line basis using the composite depreciation rates approved by the PSCW.

Public Service Building and Steam Tunnel Assets

During a significant rain event in May 2020, an underground steam tunnel in downtown Milwaukee flooded and steam vented into WE’s PSB. The damage to the building and adjacent steam tunnel assets from the flooding and steam was extensive and required significant repairs and restorations. As of March 31, 2022, WE had incurred $95.3 million of costs related to these repairs and restorations. In 2020, WE received $20.0 million of insurance proceeds to cover a portion of these costs and wrote off $12.5 million of costs that we do not intend to seek recovery for through other operation and maintenance expense. In the first quarter of 2022, WE received $41.0 million of insurance proceeds as a result of a settlement that was reached in February 2022. The remaining $21.8 million of costs is expected to be recovered through rates.

In June 2021, we received approval from the PSCW to restore the PSB and adjacent steam tunnel assets and to defer the project costs, net of insurance proceeds, as a component of rate base. As such, and in light of the agreement with insurers noted above, we do not currently expect a significant impact to our future results of operations.

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COMMON EQUITY

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

COMMON EQUITY

COMMON EQUITY

Stock-Based Compensation

During the three months ended March 31, 2022, the Compensation Committee of our Board of Directors awarded the following stock-based compensation to our directors, officers, and certain other key employees:

Award Type	Number of Awards
Stock options (1)	437,269
Restricted shares (2)	72,211
Performance units	171,492

(1)Stock options awarded had a weighted-average exercise price of $96.04 and a weighted-average grant date fair value of $14.71 per option.

(2)Restricted shares awarded had a weighted-average grant date fair value of $96.04 per share.

Restrictions

Our ability as a holding company to pay common stock dividends primarily depends on the availability of funds received from our utility subsidiaries; We Power; Bluewater; ATC Holding LLC, which holds our ownership interest in ATC; and WECI. Various financing arrangements and regulatory requirements impose certain restrictions on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans, or advances. All of our utility subsidiaries, with the exception of UMERC and MGU, are prohibited from

loaning funds to us, either directly or indirectly. See Note 11, Common Equity, in our 2021 Annual Report on Form 10-K for additional information on these and other restrictions.

We do not believe that these restrictions will materially affect our operations or limit any dividend payments in the foreseeable future.

Common Stock Dividends

On April 21, 2022, our Board of Directors declared a quarterly cash dividend of $0.7275 per share, payable on June 1, 2022, to shareholders of record on May 13, 2022.

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SHORT-TERM DEBT AND LINES OF CREDIT

3 Months Ended

Mar. 31, 2022

Short-term Debt [Abstract]

SHORT-TERM DEBT AND LINES OF CREDIT

SHORT-TERM DEBT AND LINES OF CREDIT

The following table shows our short-term borrowings and their corresponding weighted-average interest rates:

(in millions, except percentages)	March 31, 2022			December 31, 2021
Commercial paper
Amount outstanding	$	1,448.3		$	1,896.1
Weighted-average interest rate on amounts outstanding	0.92		%	0.26		%
Operating expense loans
Amount outstanding (1)	$	1.7		$	0.9

(1)Coyote Ridge and Tatanka Ridge entered into operating expense loans. In accordance with their limited liability company operating agreements, they received loans from their noncontrolling interests in proportion to their ownership interests.

Our average amount of commercial paper borrowings based on daily outstanding balances during the three months ended March 31, 2022 was $1,663.9 million with a weighted-average interest rate during the period of 0.38%.

The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing programs, including remaining available capacity under these facilities:

(in millions)	Maturity	March 31, 2022
WEC Energy Group	September 2026	$	1,500.0
WE	September 2026	500.0
WPS (1)	September 2026	400.0
WG	September 2026	350.0
PGL	September 2026	350.0
Total short-term credit capacity		$	3,100.0
Less:
Letters of credit issued inside credit facilities		$	2.3
Commercial paper outstanding		1,448.3
Available capacity under existing agreements		$	1,649.4

(1)    In April 2022, WPS received approval from the PSCW to extend the maturity of its facility to September 2026.

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MATERIALS, SUPPLIES, AND INVENTORIES

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

MATERIALS, SUPPLIES, AND INVENTORIES

MATERIALS, SUPPLIES, AND INVENTORIES

Our inventory consisted of:

(in millions)	March 31, 2022		December 31, 2021
Materials and supplies	$	232.2	$	225.3
Fossil fuel	81.3		84.5
Natural gas in storage	55.3		326.0
Total	$	368.8	$	635.8

PGL and NSG price natural gas storage injections at the calendar year average of the costs of natural gas supply purchased. Withdrawals from storage are priced on the LIFO cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. At March 31, 2022, we had a temporary LIFO liquidation credit of $130.7 million recorded within other current liabilities on our balance sheet. Due to seasonality requirements, PGL and NSG expect these interim reductions in LIFO layers to be replenished by year end.

Substantially all other materials and supplies, fossil fuel, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

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INCOME TAXES

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	145.5	21.0	%	$	122.8	21.0	%
State income taxes net of federal tax benefit	43.6		6.3	%	36.9		6.3	%
PTCs	(44.8)		(6.5)	%	(34.0)		(5.8)	%
Federal excess deferred tax amortization	(15.8)		(2.3)	%	(14.6)		(2.5)	%
Federal excess deferred tax amortization – Wisconsin unprotected	(0.3)		—	%	(30.3)		(5.2)	%
Uncertain tax positions	—		—	%	(8.2)		(1.4)	%
Other	(1.1)		(0.2)	%	2.3		0.4	%
Total income tax expense	$	127.1	18.3	%	$	74.9	12.8	%

The effective tax rate of 18.3% for the three months ended March 31, 2022, differs from the United States statutory federal income tax rate of 21%, primarily due to PTCs generated from ownership interests in wind generation facilities in our non-utility energy infrastructure segment and the impact of the protected deferred tax benefits associated with the Tax Legislation, as discussed in more detail below. These items were partially offset by state income taxes.

The effective tax rate of 12.8% for the three months ended March 31, 2021, differs from the United States statutory federal income tax rate of 21%, primarily due to PTCs generated from ownership interests in wind generation facilities in our non-utility energy infrastructure segment and the recognition of certain unprotected deferred tax benefits created as a result of the Tax Legislation. Effective January 1, 2020, in accordance with the rate order received from the PSCW in December 2019, our Wisconsin utilities began amortizing the unprotected deferred tax benefits over periods ranging from two years to four years, to reduce near-term rate impacts to their customers. In addition, the impact of the protected benefits associated with the Tax Legislation, as discussed in more detail below, drove a decrease in the effective tax rate. These items were partially offset by state income taxes.

The Tax Legislation required our regulated utilities to remeasure their deferred income taxes and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization line above).

See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on unprotected tax benefits.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTSFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods that result in management's best estimate of fair value. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. We primarily use a market approach for recurring fair value measurements and attempt to use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

When possible, we base the valuations of our assets and liabilities on quoted prices for identical assets and liabilities in active markets. These valuations are classified in Level 1. The valuations of certain contracts not classified as Level 1 may be based on quoted market prices received from counterparties and/or observable inputs for similar instruments. Transactions valued using these inputs are classified in Level 2. Certain derivatives are categorized in Level 3 due to the significance of unobservable or internally-developed inputs.

The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:

	March 31, 2022
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	176.9	$	3.0	$	—	$	179.9
FTRs	—		—		1.0		1.0
Coal contracts	—		38.2		—		38.2
Total derivative assets	$	176.9	$	41.2	$	1.0	$	219.1
Investments held in rabbi trust	$	59.5	$	—	$	—	$	59.5
Derivative liabilities
Natural gas contracts	$	—	$	1.4	$	—	$	1.4

	December 31, 2021
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	46.4	$	18.2	$	—	$	64.6
FTRs	—		—		2.4		2.4
Coal contracts	—		53.0		—		53.0
Total derivative assets	$	46.4	$	71.2	$	2.4	$	120.0
Investments held in rabbi trust	$	79.6	$	—	$	—	$	79.6
Derivative liabilities
Natural gas contracts	$	8.4	$	6.7	$	—	$	15.1

The derivative assets and liabilities listed in the tables above include options, swaps, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO Energy and Operating Reserves Markets.

We hold investments in the Integrys rabbi trust. These investments are restricted as they can only be withdrawn from the trust to fund participants' benefits under the Integrys deferred compensation plan and certain Integrys non-qualified pension plans. These investments are included in other long-term assets on our balance sheets. During the three months ended March 31, 2022, we recorded $3.3 million of net unrealized losses in earnings related to the investments held at the end of the period, compared with $4.0 million of net unrealized gains recorded during the same quarter in 2021.

The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy:

	Three Months Ended March 31
(in millions)	2022		2021
Balance at the beginning of the period	$	2.4	$	2.4
Purchases	—		0.1
Settlements	(1.4)		(1.6)
Balance at the end of the period	$	1.0	$	0.9

Fair Value of Financial Instruments

The following table shows the financial instruments included on our balance sheets that were not recorded at fair value:

	March 31, 2022				December 31, 2021
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred stock of subsidiary	$	30.4	$	26.6	$	30.4	$	30.3
Long-term debt, including current portion (1)	13,549.7		13,519.8		13,563.4		14,819.4

(1)The carrying amount of long-term debt excludes finance lease obligations of $128.0 million and $129.7 million at March 31, 2022 and December 31, 2021, respectively.

The fair values of our long-term debt and preferred stock are categorized within Level 2 of the fair value hierarchy.

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DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

We use derivatives as part of our risk management program to manage the risks associated with the price volatility of interest rates, purchased power, generation, and natural gas costs for the benefit of our customers and shareholders. Our approach is non-speculative and designed to mitigate risk. Regulated hedging programs are approved by our state regulators.

We record derivative instruments on our balance sheets as an asset or liability measured at fair value unless they qualify for the normal purchases and sales exception and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities.

On our balance sheets, we classify derivative assets and liabilities as current or long-term based on the maturities of the underlying contracts. Derivative assets and liabilities not shown separately on our balance sheets are included in the other current and other long-term line items. The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below were designated as hedging instruments.

	March 31, 2022				December 31, 2021
(in millions)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Current
Natural gas contracts	$	169.6	$	1.4	$	60.6	$	14.0
FTRs	1.0		—		2.4		—
Coal contracts	33.7		—		44.0		—
Total current	204.3		1.4		107.0		14.0
Long-term
Natural gas contracts	10.3		—		4.0		1.1
Coal contracts	4.5		—		9.0		—
Total long-term	14.8		—		13.0		1.1
Total	$	219.1	$	1.4	$	120.0	$	15.1

Realized gains (losses) on derivatives not designated as hedging instruments are primarily recorded in cost of sales on the income statements. Our estimated notional sales volumes and realized gains (losses) were as follows:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
(in millions)	Volumes	Gains		Volumes	Gains (Losses)
Natural gas contracts	59.5 Dth	$	31.6	59.8 Dth	$	(7.5)
FTRs	7.0 MWh	1.0		8.4 MWh	2.1
Total		$	32.6		$	(5.4)

On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At March 31, 2022 and December 31, 2021, we had posted cash collateral of $14.0 million and $13.9 million, respectively. These amounts were recorded on our balance sheets in other current assets. At March 31, 2022 and December 31, 2021, we had also received cash collateral of $146.1 million and $13.2 million, respectively. These amounts were recorded on our balance sheets in other current liabilities.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:

	March 31, 2022					December 31, 2021
(in millions)	Derivative Assets			Derivative Liabilities		Derivative Assets			Derivative Liabilities
Gross amount recognized on the balance sheet	$	219.1		$	1.4	$	120.0		$	15.1
Gross amount not offset on the balance sheet	(139.5)		(1)	(0.2)		(15.2)		(2)	(9.2)		(3)
Net amount	$	79.6		$	1.2	$	104.8		$	5.9

(1)Includes cash collateral received of $139.3 million.

(2)Includes cash collateral received of $6.4 million.

(3)Includes cash collateral posted of $0.4 million.

Cash Flow Hedges

Until their expiration on November 15, 2021, we had two interest rate swaps with a combined notional value of $250.0 million to hedge the variable interest rate risk associated with our 2007 Junior Notes. The swaps provided a fixed interest rate of 4.9765% on $250.0 million of the $500.0 million of outstanding 2007 Junior Notes. As these swaps qualified for cash flow hedge accounting treatment, the related gains and losses were deferred in accumulated other comprehensive loss and were amortized to interest expense as interest was accrued on the 2007 Junior Notes.

We previously entered into forward interest rate swap agreements to mitigate the interest rate exposure associated with the issuance of long-term debt related to the acquisition of Integrys. These swap agreements were settled in 2015, and we continue to amortize amounts out of accumulated other comprehensive loss into interest expense over the periods in which the interest costs are recognized in earnings.

The table below shows the amounts related to these cash flow hedges that were reclassified to interest expense, along with our total interest expense on the income statements:

	Three Months Ended March 31
(in millions)	2022		2021
Net derivative gain (loss) reclassified from accumulated other comprehensive loss to interest expense	$	0.1	$	(1.4)
Total interest expense line item on the income statements	117.6		119.5

We estimate that during the next twelve months $0.4 million will be reclassified from accumulated other comprehensive loss as a decrease to interest expense.

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GUARANTEES

3 Months Ended

Mar. 31, 2022

Guarantees [Abstract]

GUARANTEES

GUARANTEES

The following table shows our outstanding guarantees:

	Total Amounts Committed at March 31, 2022		Expiration
(in millions)			Less Than 1 Year		1 to 3 Years		Over 3 Years
Standby letters of credit (1)	$	82.3	$	10.5	$	0.2	$	71.6
Surety bonds (2)	12.8		12.8		—		—
Other guarantees (3)	9.4		—		—		9.4
Total guarantees	$	104.5	$	23.3	$	0.2	$	81.0

(1)At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets.

(2)Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets.

(3)Related to workers compensation coverage for which a liability was recorded on our balance sheets.

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EMPLOYEE BENEFITS

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

The following tables show the components of net periodic benefit cost (credit) for our benefit plans.

	Pension Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	12.4	$	13.9
Interest cost	22.8		21.9
Expected return on plan assets	(52.7)		(50.6)
Loss on plan settlement	—		0.1
Amortization of prior service cost	0.4		0.4
Amortization of net actuarial loss	19.1		27.4
Net periodic benefit cost	$	2.0	$	13.1

	OPEB Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	3.8	$	4.2
Interest cost	3.9		3.6
Expected return on plan assets	(17.2)		(16.4)
Amortization of prior service credit	(4.0)		(4.0)
Amortization of net actuarial gain	(6.0)		(5.7)
Net periodic benefit credit	$	(19.5)	$	(18.3)

During the three months ended March 31, 2022, we made contributions and payments of $3.1 million related to our pension plans and $0.5 million related to our OPEB plans. We expect to make contributions and payments of $8.0 million related to our pension plans and $2.1 million related to our OPEB plans during the remainder of 2022, dependent upon various factors affecting us, including our liquidity position and possible tax law changes.

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GOODWILL AND INTANGIBLES

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL AND INTANGIBLES

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets acquired. The table below shows our goodwill balances by segment at March 31, 2022. We had no changes to the carrying amount of goodwill during the three months ended March 31, 2022.

(in millions)	Wisconsin		Illinois		Other States		Non-Utility Energy Infrastructure		Total
Goodwill balance (1)	$	2,104.3	$	758.7	$	183.2	$	6.6	$	3,052.8

(1)We had no accumulated impairment losses related to our goodwill as of March 31, 2022.

Intangible Assets

At March 31, 2022 and December 31, 2021, we had $5.7 million of indefinite-lived intangible assets primarily related to a MGU trade name obtained through an acquisition, which is included in other long-term assets on our balance sheets. We had no changes to the carrying amount of these intangible assets during the three months ended March 31, 2022.

Intangible Liabilities

The intangible liabilities below were all obtained through acquisitions by WECI and are classified as other long-term liabilities on our balance sheets.

	March 31, 2022						December 31, 2021
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
PPAs (1)	$	87.9	$	(8.5)	$	79.4	$	87.9	$	(6.5)	$	81.4
Proxy revenue swap (2)	7.2		(2.2)		5.0		7.2		(2.1)		5.1
Interconnection agreements (3)	4.7		(0.6)		4.1		4.7		(0.5)		4.2
Total intangible liabilities	$	99.8	$	(11.3)	$	88.5	$	99.8	$	(9.1)	$	90.7

(1)    Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, and Jayhawk expiring between 2030 and 2032. The weighted-average remaining useful life of the PPAs is 10 years.

(2)    Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is seven years.

(3)    Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 19 years.

Amortization related to these intangibles for the three months ended March 31, 2022 and 2021, was $2.2 million and $1.9 million, respectively. Amortization for the next five years, including amounts recorded through March 31, 2022, is estimated to be:

	For the Years Ending December 31
(in millions)	2022		2023		2024		2025		2026
Amortization to be recorded in operating revenues	$	8.5	$	8.4	$	8.4	$	8.4	$	8.4
Amortization to be recorded in other operation and maintenance	0.2		0.2		0.2		0.2		0.2

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INVESTMENT IN TRANSMISSION AFFILIATES

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN TRANSMISSION AFFILIATES

INVESTMENT IN TRANSMISSION AFFILIATES

We own approximately 60% of ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects. We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. The following tables provide a reconciliation of the changes in our investments in ATC and ATC Holdco:

	Three Months Ended March 31, 2022
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,766.9	$	22.5	$	1,789.4
Add: Earnings from equity method investment	41.0		0.7		41.7
Add: Capital contributions	21.1		—		21.1
Less: Distributions	34.0		—		34.0
Balance at end of period	$	1,795.0	$	23.2	$	1,818.2
	Three Months Ended March 31, 2021
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,733.5	$	30.8	$	1,764.3
Add: Earnings from equity method investment	41.7		0.9		42.6
Less: Distributions	33.4		—		33.4
Add: Other	0.1		—		0.1
Balance at end of period	$	1,741.9	$	31.7	$	1,773.6

We pay ATC for network transmission and other related services it provides. In addition, we provide a variety of operational, maintenance, and project management work for ATC, which is reimbursed by ATC. We are also required to initially fund the construction of transmission infrastructure upgrades needed for new generation projects. ATC owns these transmission assets and reimburses us for these costs when the new generation is placed in service.

The following table summarizes our significant related party transactions with ATC:

	Three Months Ended March 31
(in millions)	2022		2021
Charges to ATC for services and construction	$	6.2	$	6.0
Charges from ATC for network transmission services	91.1		92.6

Our balance sheets included the following receivables and payables for services provided to or received from ATC:

(in millions)	March 31, 2022		December 31, 2021
Accounts receivable for services provided to ATC	$	2.3	$	2.0
Accounts payable for services received from ATC	30.5		30.2
Amounts due from ATC for transmission infrastructure upgrades (1)	15.1		13.0

(1)The transmission infrastructure upgrades were primarily related to WE's and WPS's construction of their new solar projects, Badger Hollow II and Badger Hollow I, respectively.

Summarized financial data for ATC is included in the tables below:

	Three Months Ended March 31
(in millions)	2022		2021
Income statement data
Operating revenues	$	191.0	$	188.7
Operating expenses	95.5		95.1
Other expense, net	28.0		28.5
Net income	$	67.5	$	65.1

(in millions)	March 31, 2022		December 31, 2021
Balance sheet data
Current assets	$	95.5	$	89.8
Noncurrent assets	5,706.8		5,628.1
Total assets	$	5,802.3	$	5,717.9
Current liabilities	$	421.0	$	436.9
Long-term debt	2,562.3		2,513.0
Other noncurrent liabilities	424.7		422.0
Members' equity	2,394.3		2,346.0
Total liabilities and members' equity	$	5,802.3	$	5,717.9

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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We use net income attributed to common shareholders to measure segment profitability and to allocate resources to our businesses. At March 31, 2022, we reported six segments, which are described below.

•The Wisconsin segment includes the electric and natural gas utility operations of WE, WPS, WG, and UMERC.

•The Illinois segment includes the natural gas utility operations of PGL and NSG.

•The other states segment includes the natural gas utility and non-utility operations of MERC and MGU.

•The electric transmission segment includes our approximate 60% ownership interest in ATC, a for-profit, transmission-only company regulated by the FERC for cost of service and certain state regulatory commissions for routing and siting of transmission projects, and our approximate 75% ownership interest in ATC Holdco, which was formed to invest in transmission-related projects outside of ATC's traditional footprint.

•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 that provide approximately one-third of the current storage needs for our Wisconsin natural gas utilities, and

◦WECI, which holds our ownership interests in the following wind generating facilities:

▪90% ownership interest in Bishop Hill III, located in Henry County, Illinois,

▪80% ownership interest in Coyote Ridge, located in Brookings County, South Dakota,

▪90% ownership interest in Upstream, located in Antelope County, Nebraska,

▪90% ownership interest in Blooming Grove, located in McLean County, Illinois,

▪85% ownership interest in Tatanka Ridge, located in Deuel County, South Dakota, and

▪90% ownership interest in Jayhawk, located in Bourbon and Crawford counties, Kansas.

See Note 2, Acquisitions, for more information on Jayhawk.

•The corporate and other segment includes the operations of the WEC Energy Group holding company, the Integrys holding company, the Peoples Energy, LLC holding company, Wispark, Wisvest LLC, Wisconsin Energy Capital Corporation, and WEC Business Services LLC.

All of our operations are located within the United States. The following tables show summarized financial information related to our reportable segments for the three months ended March 31, 2022 and 2021:

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2022
External revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	—	$	42.6	$	0.2	$	—	$	2,908.1
Intersegment revenues	—		—		—		—		—		116.9		—		(116.9)		—
Other operation and maintenance	312.6		113.6		24.6		450.8		—		10.9		(5.7)		(1.6)		454.4
Depreciation and amortization	187.1		56.8		10.0		253.9		—		34.0		6.5		(16.3)		278.1
Equity in earnings of transmission affiliates	—		—		—		—		41.7		—		—		—		41.7
Interest expense	136.3		17.7		3.3		157.3		4.9		17.2		22.6		(84.4)		117.6
Income tax expense (benefit)	95.4		42.1		10.4		147.9		8.9		(4.9)		(24.8)		—		127.1
Net income	288.4		113.4		31.5		433.3		27.8		93.3		13.6		—		568.0
Net income attributed to common shareholders	288.1		113.4		31.5		433.0		27.8		91.5		13.6		—		565.9

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2021
External revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	—	$	22.9	$	0.1	$	—	$	2,691.4
Intersegment revenues	—		—		—		—		—		114.7		—		(114.7)		—
Other operation and maintenance	341.9		109.3		23.2		474.4		—		8.9		(1.8)		(1.6)		479.9
Depreciation and amortization	176.2		52.7		9.2		238.1		—		31.0		6.6		(14.3)		261.4
Equity in earnings of transmission affiliates	—		—		—		—		42.6		—		—		—		42.6
Interest expense	140.1		16.5		1.5		158.1		4.9		18.0		24.2		(85.7)		119.5
Income tax expense (benefit)	48.1		41.4		8.4		97.9		9.8		0.1		(32.9)		—		74.9
Net income	256.6		112.1		24.7		393.4		28.0		71.3		17.6		—		510.3
Net income attributed to common shareholders	256.3		112.1		24.7		393.1		28.0		71.4		17.6		—		510.1

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VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

The primary beneficiary of a VIE must consolidate the entity's assets and liabilities. In addition, certain disclosures are required for significant interest holders in VIEs.

We assess our relationships with potential VIEs, such as our coal suppliers, natural gas suppliers, coal transporters, natural gas transporters, and other counterparties related to PPAs, investments, and joint ventures. In making this assessment, we consider,

along with other factors, the potential that our contracts or other arrangements provide subordinated financial support, the obligation to absorb the entity's losses, the right to receive residual returns of the entity, and the power to direct the activities that most significantly impact the entity's economic performance.

WEPCo Environmental Trust Finance I, LLC

In November 2020, the PSCW issued a financing order approving the securitization of $100 million of undepreciated environmental control costs related to WE's retired Pleasant Prairie power plant, the carrying costs accrued on the $100 million during the securitization process, and the related financing fees. The financing order also authorized WE to form WEPCo Environmental Trust, a bankruptcy-remote special purpose entity, for the sole purpose of issuing ETBs to recover the costs approved in the financing order. WEPCo Environmental Trust is a wholly-owned subsidiary of WE.

In May 2021, WEPCo Environmental Trust issued ETBs and used the proceeds to acquire environmental control property from WE. The environmental control property is recorded as a regulatory asset on our balance sheets and includes the right to impose, collect, and receive a non-bypassable environmental control charge from WE's retail electric distribution customers until the ETBs are paid in full and all financing costs have been recovered. The ETBs are secured by the environmental control property. Cash collections from the environmental control charge, and funds on deposit in trust accounts, are the sole source of funds to satisfy the debt obligation. The bondholders have no recourse to WE or any of WE's affiliates other than WEPCo Environmental Trust.

WE acts as the servicer of the environmental control property on behalf of WEPCo Environmental Trust and is responsible for metering, calculating, billing, and collecting the environmental control charge. As necessary, WE is authorized to implement periodic adjustments of the environmental control charge. The adjustments are designed to ensure the timely payment of principal, interest, and other ongoing financing costs. WE remits all collections of the environmental control charge to an indenture trustee of WEPCo Environmental Trust.

WEPCo Environmental Trust is a VIE primarily because its equity capitalization is insufficient to support its operations. As described above, WE has the power to direct the activities that most significantly impact WEPCo Environmental Trust's economic performance. Therefore, WE is considered the primary beneficiary of WEPCo Environmental Trust, and consolidation is required.

The following table summarizes the impact of WEPCo Environmental Trust on our balance sheet.

(in millions)	March 31, 2022		December 31, 2021
Assets
Other current assets (restricted cash)	$	5.6	$	2.4
Regulatory assets	98.2		100.7
Other long-term assets (restricted cash)	0.6		0.6
Liabilities
Current portion of long-term debt	8.8		8.8
Accounts payable	0.1		—
Other current liabilities (accrued interest)	0.5		0.1
Long-term debt	102.8		102.7

Investment in Transmission Affiliates

We own approximately 60% of ATC, a for-profit, electric transmission company regulated by the FERC and certain state regulatory commissions. We have determined that ATC is a VIE but consolidation is not required since we are not ATC's primary beneficiary. As a result of our limited voting rights, we do not have the power to direct the activities that most significantly impact ATC's economic performance. Therefore, we account for ATC as an equity method investment. At March 31, 2022 and December 31, 2021, our equity investment in ATC was $1,795.0 million and $1,766.9 million, respectively, which approximates our maximum exposure to loss as a result of our involvement with ATC.

We also own approximately 75% of ATC Holdco, a separate entity formed in December 2016 to invest in transmission-related projects outside of ATC's traditional footprint. We have determined that ATC Holdco is a VIE but consolidation is not required since we are not ATC Holdco's primary beneficiary. As a result of our limited voting rights, we do not have the power to direct the activities that most significantly impact ATC Holdco's economic performance. Therefore, we account for ATC Holdco as an equity

method investment. At March 31, 2022 and December 31, 2021, our equity investment in ATC Holdco was $23.2 million and $22.5 million, respectively, which approximates our maximum exposure to loss as a result of our involvement with ATC Holdco.

See Note 16, Investment in Transmission Affiliates, for more information, including any significant assets and liabilities related to ATC and ATC Holdco recorded on our balance sheets.

Power Purchase Commitment

WE has a PPA with LSP-Whitewater Limited Partnership that represents a variable interest. This agreement is for 236.5 MWs of firm capacity from a natural gas-fired cogeneration facility, and we account for it as a finance lease. The agreement expires on May 31, 2022 and includes no minimum energy requirements over the remaining term. We have examined the risks of the entity, including operations, maintenance, dispatch, financing, fuel costs, and other factors, and have determined that we are not the primary beneficiary of the entity. We do not hold an equity or debt interest in the entity, and there is no residual guarantee associated with the PPA.

In November 2021, WE entered into a tolling agreement with LSP-Whitewater Limited Partnership that commences on June 1, 2022 upon the expiration of the PPA. Concurrent with the execution of the tolling agreement, WE and WPS also entered into an agreement to purchase the natural gas-fired cogeneration facility for $72.7 million. This purchase agreement is subject to regulatory approval by the PSCW, which is expected by the end of 2022. The tolling agreement extends until the earlier of the closing of the asset purchase or December 31, 2022. Since the terms of the tolling agreement are substantially similar to the terms of the PPA, we have determined that we are still not the primary beneficiary of the entity, and we will continue to account for the PPA and tolling agreement as a finance lease.

We have $3.9 million of required capacity payments over the remaining term of the PPA and tolling agreement. We believe that the required capacity payments under the agreements will continue to be recoverable in rates, and our maximum exposure to loss is limited to these capacity payments.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

We and our subsidiaries have significant commitments and contingencies arising from our operations, including those related to unconditional purchase obligations, environmental matters, and enforcement and litigation matters.

Unconditional Purchase Obligations

Our electric utilities have obligations to distribute and sell electricity to their customers, and our natural gas utilities have obligations to distribute and sell natural gas to their customers. The utilities expect to recover costs related to these obligations in future customer rates. In order to meet these obligations, we routinely enter into long-term purchase and sale commitments for various quantities and lengths of time.

The wind generation facilities that are part of our non-utility energy infrastructure segment have obligations to distribute and sell electricity through long-term offtake agreements with their customers for all of the energy produced. In order to support these sales obligations, these companies enter into easements and other service agreements associated with the wind generating facilities.

Our minimum future commitments related to these purchase obligations as of March 31, 2022, including those of our subsidiaries, were approximately $10.5 billion.

Environmental Matters

Consistent with other companies in the energy industry, we face significant ongoing environmental compliance and remediation obligations related to current and past operations. Specific environmental issues affecting us include, but are not limited to, current and future regulation of air emissions such as sulfur dioxide, NOx, fine particulates, mercury, and GHGs; water intake and discharges; management of coal combustion products such as fly ash; and remediation of impacted properties, including former manufactured gas plant sites.

Air Quality

Cross State Air Pollution Rule – Good Neighbor Plan

The EPA is proposing to update and expand the Cross State Air Pollution Rule to regulate NOx emissions in 25 states as part of the “good neighbor provision." As part of the proposed rule, expected to take effect in May 2023, the EPA would establish a new trading budget that would impose lower NOx emissions budgets on states, at a level that the EPA determined to be achievable through existing emissions controls as well as planned plant retirements.

Based on a review of our existing units' 2020 and 2021 actual ozone season emissions and projected future emissions versus proposed NOx ozone season allocations, we anticipate that we should be able to comply with the expanded rule requirements without procuring additional allowances on the open market.

Our RICE units in the Upper Peninsula of Michigan and planned RICE units in Wisconsin are not subject to this rule as proposed as each unit is expected to be less than 25 MW. We will closely monitor whether the EPA expands coverage of the rule to sources between 15 MW and 25 MW in the final rule. We are evaluating whether our engines for natural gas distribution operations in Michigan and Illinois are subject to the emission limits and operational requirements of the rule beginning in 2026.

National Ambient Air Quality Standards

Ozone

After completing its review of the 2008 ozone standard, the EPA released a final rule in October 2015, creating a more stringent standard than the 2008 NAAQS. The 2015 ozone standard lowered the 8-hour limit for ground-level ozone. In December 2020, the EPA completed its 5-year review of the ozone standard and issued a final decision to retain, without any changes, the existing 2015 standard. Under Executive Order 13990, the Biden Administration ordered that all agencies review existing regulations, orders, guidance documents, policies, and similar actions promulgated, issued, or adopted between January 20, 2017 and January 20, 2021. In October 2021, the EPA announced that it will reconsider the December 2020 decision to retain the 2015 ozone standards with no changes and that it is targeting the end of 2023 to complete this reconsideration.

The EPA issued final nonattainment area designations for the 2015 ozone standard in April 2018. The following counties within our Wisconsin service territories were designated as partial nonattainment: Door, Kenosha, Sheboygan, Manitowoc, and Northern Milwaukee/Ozaukee. The area designations were challenged in the D.C. Circuit Court of Appeals in Clean Wisconsin et al. v. U.S. Environmental Protection Agency. A decision was issued in July 2020 remanding the rule to the EPA for further evaluation. As a result of the July 2020 remand, in June 2021, the EPA published its final action to revise the nonattainment area designations and/or boundaries for 13 counties associated with six nonattainment areas, including several in Illinois and Wisconsin. Under the new designations, all of Milwaukee and Ozaukee counties are now listed as nonattainment and portions of Racine, Waukesha, and Washington counties have been added to the nonattainment area. Additionally, the Chicago, Illinois, Indiana, and Wisconsin nonattainment area now includes an expanded portion of Kenosha County, and the partial nonattainment areas of Sheboygan, Door, and Manitowoc counties have also been expanded. Preliminary 2019-2021 monitoring data indicates that the Milwaukee and Chicago nonattainment areas will likely be adjusted to "moderate" nonattainment for the 2015 standard.

In February 2022, revisions to the Wisconsin Administrative Code to adopt the 2015 standard were finalized. The amended regulations adopted the standards and incorporated by reference the federal air pollution monitoring requirements related to the standard. We believe that we are well positioned to meet the requirements associated with the 2015 ozone standard and do not expect to incur significant costs to comply with the associated state and federal rules.

Particulate Matter

In December 2020, the EPA completed its 5-year review of the 2012 annual and 24-hour standards for fine particulate matter. The EPA determined that no revisions were necessary to the current standard. This determination was also subject to review under Executive Order 13990 and in June 2021, the EPA announced it would reconsider the December 2020 decision. Under the Biden Administration's policy review, the EPA concluded that the scientific evidence and information from the December 2020 determination supports revising the level of the annual standard for the particulate matter NAAQS to below the current level of 12 micrograms per cubic meter, while retaining the 24-hour standard. In March 2022, the EPA’s CASAC sent a letter to the EPA finalizing its peer review of the particulate matter standards. Based on their review, the majority of the members of the CASAC

found that lowering the annual standard to within a range of 8 to 10 micrograms per cubic meter was appropriate, while a minority of the members of the committee found that a range of 10 to 11 micrograms per cubic meter would be appropriate. Additionally, a majority of the CASAC members favored lowering the 24-hour standard, while a minority concurred with EPA’s preliminary conclusion to retain the 24-hour standard without revision.

A proposed rule is expected in summer 2022, and a final rule is expected in spring 2023. All counties within our service territories are in attainment with the current 2012 standards. If the EPA lowers the annual standard to 10 or 11 micrograms per cubic meter, our generating facilities within our service territories should remain in attainment. If the EPA lowers it to below 10 micrograms per cubic meter, there could be some non-attainment areas that may affect permitting of some smaller ancillary equipment located at our facilities.

Climate Change

The ACE rule, which replaced the Clean Power Plan, was vacated by the D.C. Circuit Court of Appeals in January 2021. In October 2021, the Supreme Court agreed to review the D.C. Circuit Court's ruling vacating the EPA's ACE rule. The Supreme Court is reviewing a number of issues regarding the scope of the EPA's regulatory authority to utilize Section 111(d) of the CAA to address CO2 emissions. In February 2022, the Supreme Court heard oral arguments, and a decision is expected this summer.

In January 2021, the EPA finalized a rule to revise the New Source Performance Standards for GHG emissions from new, modified, and reconstructed fossil-fueled power plants; however, it was vacated by the D.C. Circuit Court of Appeals in April 2021. The EPA has signaled that a rule replacement is expected by the end of 2022. We continue to move forward on the ESG Progress Plan, which is heavily focused on reducing GHG emissions.

Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with zero-carbon-emitting renewables and clean natural gas-fueled generation. We have already retired more than 1,800 MW of coal-fired generation since the beginning of 2018. Through our ESG Progress Plan, we expect to retire approximately 1,600 MW of additional fossil-fueled generation by the end of 2025, which includes the planned retirements in 2023-2024 of OCPP Units 5-8 and the jointly-owned Columbia Units 1-2. In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by the end of 2025 and by 80% by the end of 2030, both from a 2005 baseline. We expect to achieve these goals by making operating refinements, retiring less efficient generating units, and executing our capital plan. Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

We also continue to reduce methane emissions by improving our natural gas distribution system. We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030. We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of RNG throughout our utility systems.

We are required to report our CO2 equivalent emissions from the electric generating facilities we operate under the EPA Greenhouse Gases Reporting Program. We reported CO2 equivalent emissions of 22.0 million metric tonnes to the EPA for 2021. The level of CO2 and other GHG emissions varies from year to year and is dependent on the level of electric generation and mix of fuel sources, which is determined primarily by demand, the availability of the generating units, the unit cost of fuel consumed, and how our units are dispatched by MISO.

We are also required to report CO2 equivalent emissions related to the natural gas that our natural gas utilities distribute and sell. We reported aggregated CO2 equivalent emissions of 26.0 million metric tonnes to the EPA for 2021.

Water Quality

Clean Water Act Cooling Water Intake Structure Rule

In August 2014, the EPA issued a final regulation under Section 316(b) of the Clean Water Act that requires the location, design, construction, and capacity of cooling water intake structures at existing power plants to reflect the BTA for minimizing adverse environmental impacts. The federal rule became effective in October 2014 and applies to all of our existing generating facilities with cooling water intake structures, except for the ERGS units, which were permitted and received a final BTA determination under the rules governing new facilities. In 2016, the WDNR initiated a state rulemaking process to incorporate the federal Section 316(b) requirements into the Wisconsin Administrative Code. This new state rule, NR 111, became effective in June 2020, and the WDNR

will apply it when establishing BTA requirements for cooling water intake structures at existing facilities. These BTA requirements are incorporated into WPDES permits for WE and WPS facilities.

We have received a final BTA determination for Valley power plant. We have received interim BTA determinations for PWGS, OCPP Units 5-8 and Weston Units 2, 3, and 4. We believe that existing technology at the PWGS satisfies the BTA requirements; however, a final determination will not be made until the WPDES permit is renewed for this facility, which is expected to be by the third quarter of 2022. We also believe that existing technology installed at the OCPP facility meets the BTA requirements; however, it is anticipated that these four generating units will be retired prior to the WDNR making a final BTA decision. In addition, we believe that existing technology installed at the Weston facility will result in a final BTA determination when the WPDES permit is renewed in 2023.

As a result of past capital investments completed to address Section 316(b) compliance at WE and WPS, we believe our fleet overall is well positioned to continue to meet this regulation and do not expect to incur significant additional compliance costs.

Steam Electric Effluent Limitation Guidelines

The EPA's final 2015 ELG rule took effect in January 2016 and was modified in 2020 to revise the treatment technology requirements related to BATW and wet FGD wastewaters at existing facilities. This rule created new requirements for several types of power plant wastewaters. The two new requirements that affect WE and WPS relate to discharge limits for BATW and wet FGD wastewater. Our power plant facilities already have advanced wastewater treatment technologies installed that meet many of the discharge limits established by this rule. There will, however, need to be facility modifications to meet water permit requirements for the BATW system at Weston Unit 3, which is expected to be completed by December 2023. Modifications to OC 7 and OC 8 were completed and placed in-service in mid-2021. Wastewater treatment system modifications also will be required for wet FGD discharges and site wastewater from the ERGS units. Based on engineering cost estimates, we expect that compliance with the ELG rule will require an additional $100 million in capital investment. In December 2021, the PSCW Division of Energy Regulation and Analysis issued a Certificate of Authority approving the ERGS FGD wastewater treatment system modification. The BATW modifications do not require PSCW approval prior to construction. All of these ELG required projects are either in-service or are on track for completion by the WPDES permit deadline in December 2023.

In July 2021, the EPA announced that it intends to initiate rulemaking to revise the ELG Rule as modified in 2020. The EPA has stated that the ELG Rule will continue to be implemented and enforced while the agency pursues this rulemaking process. The EPA plans to propose a revised rule in the fall of 2022.

Waters of the United States

In December 2021, the EPA and the United States Army Corps of Engineers together released a proposed rule to repeal the April 2020 Navigable Waters Protection Rule that defined WOTUS. The purpose of this proposed rule will be to restore regulations defining WOTUS that were in place prior to 2015 and to update certain provisions to be consistent with relevant Supreme Court decisions. The pre-2015 approach involves applying factors established through case law and agency precedents to determine whether a wetland or surface drainage feature is subject to federal jurisdiction. In January 2022, the Supreme Court granted certiorari in a case to evaluate the proper test for determining whether wetlands are WOTUS. At this point, our projects requiring federal permits are moving ahead, but we are monitoring to better understand potential future impacts. This case, once decided, should provide clarity regarding the definition of WOTUS. We will continue to monitor this litigation and any subsequent agency action.

Land Quality

Manufactured Gas Plant Remediation

We have identified sites at which our utilities or a predecessor company owned or operated a manufactured gas plant or stored manufactured gas. We have also identified other sites that may have been impacted by historical manufactured gas plant activities. Our natural gas utilities are responsible for the environmental remediation of these sites, some of which are in the EPA Superfund Alternative Approach Program. We are also working with various state jurisdictions in our investigation and remediation planning. These sites are at various stages of investigation, monitoring, remediation, and closure.

In addition, we are coordinating the investigation and cleanup of some of these sites subject to the jurisdiction of the EPA under what is called a "multisite" program. This program involves prioritizing the work to be done at the sites, preparation and approval of documents common to all of the sites, and use of a consistent approach in selecting remedies. At this time, we cannot estimate future remediation costs associated with these sites beyond those described below.

The future costs for detailed site investigation, future remediation, and monitoring are dependent upon several variables including, among other things, the extent of remediation, changes in technology, and changes in regulation. Historically, our regulators have allowed us to recover incurred costs, net of insurance recoveries and recoveries from potentially responsible parties, associated with the remediation of manufactured gas plant sites. Accordingly, we have established regulatory assets for costs associated with these sites.

We have established the following regulatory assets and reserves for manufactured gas plant sites:

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets	$	618.8	$	630.9
Reserves for future environmental remediation	517.2		532.6

Enforcement and Litigation Matters

We and our subsidiaries are involved in legal and administrative proceedings before various courts and agencies with respect to matters arising in the ordinary course of business. Although we are unable to predict the outcome of these matters, management believes that appropriate reserves have been established and that final settlement of these actions will not have a material impact on our financial condition or results of operations.

Consent Decrees

Wisconsin Public Service Corporation – Weston and Pulliam Power Plants

In November 2009, the EPA issued an NOV to WPS, which alleged violations of the CAA's New Source Review requirements relating to certain projects completed at the Weston and Pulliam power plants from 1994 to 2009. WPS entered into a Consent Decree with the EPA resolving this NOV. This Consent Decree was entered by the United States District Court for the Eastern District of Wisconsin in March 2013. With the retirement of Pulliam Units 7 and 8 in October 2018, WPS completed the mitigation projects required by the Consent Decree and received a completeness letter from the EPA in October 2018. We are working with the EPA on a closeout process for the Consent Decree and expect that process to be completed in 2023.

Joint Ownership Power Plants – Columbia and Edgewater

In December 2009, the EPA issued an NOV to Wisconsin Power and Light Company, the operator of the Columbia and Edgewater plants, and the other joint owners of these plants, including Madison Gas and Electric Company, WE (former co-owner of an Edgewater unit), and WPS. The NOV alleged violations of the CAA's New Source Review requirements related to certain projects completed at those plants. WPS, along with Wisconsin Power and Light Company, Madison Gas and Electric Company, and WE, entered into a Consent Decree with the EPA resolving this NOV. This Consent Decree was entered by the United States District Court for the Western District of Wisconsin in June 2013. As a result of the continued implementation of the Consent Decree related to the jointly owned Columbia and Edgewater plants, the Edgewater 4 generating unit was retired in September 2018. Wisconsin Power and Light Company expects to start the process to close out this Consent Decree in early 2023.

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SUPPLEMENTAL CASH FLOW INFORMATION

3 Months Ended

Mar. 31, 2022

Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

	Three Months Ended March 31
(in millions)	2022		2021
Cash paid for interest, net of amount capitalized	$	68.3	$	76.8
Cash paid (received) for income taxes, net	0.7		(2.5)
Significant non-cash investing and financing transactions:
Accounts payable related to construction costs	118.7		97.8
Increase in receivable related to insurance proceeds	0.3		2.7

The statements of cash flows include our activity related to cash, cash equivalents, and restricted cash. Our restricted cash primarily consists of the cash held in the Integrys rabbi trust, which is used to fund participants' benefits under the Integrys deferred compensation plan and certain Integrys non-qualified pension plans. All assets held within the rabbi trust are restricted as they can only be withdrawn from the trust to make qualifying benefit payments. Our restricted cash also consists of cash on deposit in financial institutions that is restricted to satisfy the requirements of certain debt agreements at WEC Infrastructure Wind Holding I LLC and WEPCo Environmental Trust. The restricted cash we received when WECI acquired ownership interests in certain wind generation projects is included in our restricted cash as well. This cash is restricted as it can only be used to pay for any remaining costs associated with the construction of the wind generation facilities.

The following table reconciles the cash, cash equivalents, and restricted cash amounts reported within the balance sheets to the total of these amounts shown on the statements of cash flows:

(in millions)	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	33.8	$	16.3
Restricted cash included in other current assets	31.8		19.6
Restricted cash included in other long term assets	54.0		51.6
Cash, cash equivalents, and restricted cash	$	119.6	$	87.5

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REGULATORY ENVIRONMENT

3 Months Ended

Mar. 31, 2022

Regulated Operations [Abstract]

REGULATORY ENVIRONMENT

REGULATORY ENVIRONMENT

Recovery of Natural Gas Costs

Due to the cold temperatures, wind, snow, and ice throughout the central part of the country during February 2021, the cost of gas purchased for our natural gas utility customers was temporarily driven significantly higher than our normal winter weather expectations. All of our utilities have regulatory mechanisms in place for recovering all prudently incurred gas costs.

In March 2021, WE and WG received approval from the PSCW to recover approximately $54 million and $24 million, respectively, of natural gas costs in excess of the benchmark set in their GCRMs over a period of three months, beginning in April 2021. In March 2021, WPS also filed its revised natural gas rate sheets with the PSCW reflecting approximately $28 million of natural gas costs in excess of the benchmark set in its GCRM. WPS also recovered these excess costs over a period of three months, beginning in April 2021.

PGL and NSG incurred approximately $131 million and $10 million, respectively, of natural gas costs in February 2021 in excess of the amounts included in their rates. These costs were recovered over a period of 12 months, which started on April 1, 2021. PGL's and NSG's natural gas costs are being reviewed for prudency by the ICC as part of their annual natural gas cost reconciliation. The ICC could order the refund of any costs determined to be imprudent as part of the reconciliation. A decision regarding this review is expected by the end of 2022.

In February 2021, MERC incurred approximately $75 million of natural gas costs in excess of the benchmark set in its GCRM. In August 2021, the MPUC issued a written order approving a joint proposal filed by MERC and four other Minnesota utilities to recover their respective excess natural gas costs. MERC will recover $10 million of these costs through its annual natural gas true-up process over a period of 12 months, and the remaining $65 million over 27 months, both of which started in September 2021. Recovery of these costs and the issue of prudence has been referred to a contested-case proceeding. As a result of the proceeding, the MPUC could disallow recovery or order the refund of any costs determined to be imprudent. A decision regarding this review is expected during the third quarter of 2022.

Natural gas costs incurred at MGU and UMERC in excess of the amount included in their respective rates were not significant.

Wisconsin Electric Power Company, Wisconsin Public Service Corporation, and Wisconsin Gas LLC

2023 and 2024 Rates

In April 2022, WE, WPS, and WG filed requests with the PSCW to increase their retail electric, natural gas, and steam rates, as applicable, effective January 1, 2023. The requests reflected the following:

	WE					WPS					WG
Proposed 2023 rate increase
Electric	$	260.5	million	/	8.4%	$	73.9	million	/	6.2%	N/A
Gas	$	50.7	million	/	10.7%	$	30.3	million	/	8.3%	$	60.1	million	/	8.3%
Steam	$	3.3	million	/	15.5%	N/A					N/A
Proposed ROE (1)	10.0%					10.0%					10.2%
Proposed common equity component average on a financial basis (1)	53.0%					53.0%					53.0%

(1)    The proposed ROEs are consistent with each utilities' currently authorized ROE. The common equity component average for each utility is currently 52.5%.

The primary drivers of the requested increases in electric rates are capital investments in new wind, solar, and battery storage; capital investments in natural gas generation; reliability investments, including grid hardening projects to bury power lines and strengthen WE's distribution system against severe weather; and changes in wholesale business with other utilities. Many of these investments have already been approved by the PSCW.

The requested increases in natural gas rates primarily relate to capital investments previously approved by the PSCW, including LNG storage for our natural gas distribution system.

The utilities also proposed continuing to use an earnings sharing mechanism. Under the proposed earnings sharing mechanism, if the utility earns above its authorized ROE: (i) the utility would retain 100.0% of earnings for the first 25 basis points above the authorized ROE; (ii) 50.0% of the next 50 basis points would be required to be refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings would be required to be refunded to ratepayers.

WE and WPS are seeking a limited rate re-opener for 2024 to address additional revenue requirements associated with generation projects that are expected to be placed into service in 2023 and 2024. In addition, WE and WG are requesting a limited rate re-opener for 2024 to address additional revenue requirements associated with LNG projects that are expected to be placed into service in 2023 and 2024, respectively.

We expect a decision from the PSCW in the fourth quarter of 2022, with any rate adjustments expected to be effective January 1, 2023.

The Peoples Gas Light and Coke Company

Qualifying Infrastructure Plant Rider

In July 2013, Illinois Public Act 98-0057, The Natural Gas Consumer, Safety & Reliability Act, became law. This law provides natural gas utilities with a cost recovery mechanism that allows collection, through a surcharge on customer bills, of prudently incurred costs to upgrade Illinois natural gas infrastructure. In January 2014, the ICC approved a QIP rider for PGL, which is in effect through 2023.

PGL's QIP rider is subject to an annual reconciliation whereby costs are reviewed for accuracy and prudency. In March 2022, PGL filed its 2021 reconciliation with the ICC, which, along with the 2020, 2019, 2018, 2017, and 2016 reconciliations, are still pending.

As of March 31, 2022, there can be no assurance that all costs incurred under PGL's QIP rider during the open reconciliation years will be deemed recoverable by the ICC.

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NEW ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2022

Accounting Standards Update and Change in Accounting Principle [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

Government Assistance

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832). The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of: (i) the types of assistance received; (ii) an entity’s accounting for the assistance; and (iii) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. We plan to adopt this pronouncement for our fiscal year ending on December 31, 2022, and we are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

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GENERAL INFORMATION (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Consolidation

As used in these notes, the term "financial statements" refers to the condensed consolidated financial statements. This includes the income statements, statements of comprehensive income, balance sheets, statements of cash flows, and statements of equity, unless otherwise noted. In this report, when we refer to "the Company," "us," "we," "our," or "ours," we are referring to WEC Energy Group and all of its subsidiaries.

On our financial statements, we consolidate our majority-owned subsidiaries, which we control, and VIEs, of which we are the primary beneficiary. We reflect noncontrolling interests for the portion of entities that we do not own as a component of consolidated equity separate from the equity attributable to our shareholders. The noncontrolling interests that we reported as equity on our balance sheets related to the minority interests at Bishop Hill III, Blooming Grove, Coyote Ridge, Jayhawk, Tatanka Ridge, and Upstream held by third parties.

Basis of accounting

We have prepared the unaudited interim financial statements presented in this Form 10-Q pursuant to the rules and regulations of the SEC and GAAP. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2021. Financial results for an interim period may not give a true indication of results for the year. In particular, the results of operations for the three months ended March 31, 2022, are not necessarily indicative of expected results for 2022 due to seasonal variations and other factors.

In management's opinion, we have included all adjustments, normal and recurring in nature, necessary for a fair presentation of our financial results.

Credit losses

Our exposure to credit losses is related to our accounts receivable and unbilled revenue balances, which are primarily generated from the sale of electricity and natural gas by our regulated utility operations. Credit losses associated with our utility operations are analyzed at the reportable segment level as we believe contract terms, political and economic risks, and the regulatory environment are similar at this level as our reportable segments are generally based on the geographic location of the underlying utility operations.

We have an accounts receivable and unbilled revenue balance associated with our non-utility energy infrastructure segment, related to the sale of electricity from our majority-owned wind generating facilities through agreements with several large high credit quality counterparties.

We evaluate the collectability of our accounts receivable and unbilled revenue balances considering a combination of factors. For some of our larger customers and also in circumstances where we become aware of a specific customer's inability to meet its financial obligations to us, we record a specific allowance for credit losses against amounts due in order to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we use the accounts receivable aging method to calculate an allowance for credit losses. Using this method, we classify accounts receivable into different aging buckets and calculate a reserve percentage for each aging bucket based upon historical loss rates. The calculated reserve percentages are updated on at least an annual basis, in order to ensure recent macroeconomic, political, and regulatory trends are captured in the calculation, to the extent possible. Risks identified that we do not believe are reflected in the calculated reserve percentages, are assessed on a quarterly basis to determine whether further adjustments are required.

We monitor our ongoing credit exposure through active review of counterparty accounts receivable balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. To the extent possible, we work with customers with past due balances to negotiate payment plans, but will disconnect customers for non-payment as allowed by our regulators, if necessary, and employ collection agencies and legal counsel to pursue recovery of defaulted receivables. For our larger customers, detailed credit review procedures may be performed in advance of any sales being made. We sometimes require letters of credit, parental guarantees, prepayments or other forms of credit assurance from our larger customers to mitigate credit risk.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

Fair value accounting rules provide a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are defined as follows:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are observable, either directly or indirectly, but are not quoted prices included within Level 1. Level 2 includes those financial instruments that are valued using external inputs within models or other valuation methods.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methods that result in management's best estimate of fair value. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. We use a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical measure for valuing certain derivative assets and liabilities. We primarily use a market approach for recurring fair value measurements and attempt to use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

When possible, we base the valuations of our assets and liabilities on quoted prices for identical assets and liabilities in active markets. These valuations are classified in Level 1. The valuations of certain contracts not classified as Level 1 may be based on quoted market prices received from counterparties and/or observable inputs for similar instruments. Transactions valued using these inputs are classified in Level 2. Certain derivatives are categorized in Level 3 due to the significance of unobservable or internally-developed inputs.

Derivative instruments

We use derivatives as part of our risk management program to manage the risks associated with the price volatility of interest rates, purchased power, generation, and natural gas costs for the benefit of our customers and shareholders. Our approach is non-speculative and designed to mitigate risk. Regulated hedging programs are approved by our state regulators.

We record derivative instruments on our balance sheets as an asset or liability measured at fair value unless they qualify for the normal purchases and sales exception and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities.

On our balance sheets, we classify derivative assets and liabilities as current or long-term based on the maturities of the underlying contracts. Derivative assets and liabilities not shown separately on our balance sheets are included in the other current and other long-term line items.

New accounting pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

Government Assistance

In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832). The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of: (i) the types of assistance received; (ii) an entity’s accounting for the assistance; and (iii) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. We plan to adopt this pronouncement for our fiscal year ending on December 31, 2022, and we are currently evaluating the impact this guidance may have on our financial statements and related disclosures.

Other non-utility revenues

Disaggregation of Operating Revenues

Revenue Recognition

As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected these carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as a contract liability, which is presented as deferred revenue, net on our balance sheets. We continually amortize the deferred carrying costs to revenues over the related lease term that We Power has with WE.

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OPERATING REVENUES (Tables)

3 Months Ended

Mar. 31, 2022

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

Disaggregation of Operating Revenues

The following tables present our operating revenues disaggregated by revenue source. We do not have any revenues associated with our electric transmission segment, which includes investments accounted for using the equity method. We disaggregate revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. For our segments, revenues are further disaggregated by electric and natural gas operations and then by customer class. Each customer class within our electric and natural gas operations have different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions.

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2022
Electric	$	1,187.5	$	—	$	—	$	1,187.5	$	—	$	—	$	—		$	1,187.5
Natural gas	746.8		679.9		238.2		1,664.9		15.3		—		(14.8)			1,665.4
Total regulated revenues	1,934.3		679.9		238.2		2,852.4		15.3		—		(14.8)			2,852.9
Other non-utility revenues	—		—		4.6		4.6		43.7		—		(1.6)			46.7
Total revenues from contracts with customers	1,934.3		679.9		242.8		2,857.0		59.0		—		(16.4)			2,899.6
Other operating revenues	8.0		2.2		(1.9)		8.3		100.5		0.2		(100.5)		(1)	8.5
Total operating revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	159.5	$	0.2	$	(116.9)		$	2,908.1

(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations			WEC Energy Group Consolidated
Three Months Ended March 31, 2021
Electric	$	1,095.0	$	—	$	—	$	1,095.0	$	—	$	—	$	—		$	1,095.0
Natural gas	627.3		693.5		225.6		1,546.4		14.6		—		(13.3)			1,547.7
Total regulated revenues	1,722.3		693.5		225.6		2,641.4		14.6		—		(13.3)			2,642.7
Other non-utility revenues	—		—		4.7		4.7		23.2		—		(1.6)			26.3
Total revenues from contracts with customers	1,722.3		693.5		230.3		2,646.1		37.8		—		(14.9)			2,669.0
Other operating revenues	9.4		9.9		3.0		22.3		99.8		0.1		(99.8)		(1)	22.4
Total operating revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	137.6	$	0.1	$	(114.7)		$	2,691.4

(1)Amounts eliminated represent lease revenues related to certain plants that We Power leases to WE to supply electricity to its customers. Lease payments are billed from We Power to WE and then recovered in WE's rates as authorized by the PSCW and the FERC. WE operates the plants and is authorized by the PSCW and Wisconsin state law to fully recover prudently incurred operating and maintenance costs in electric rates.

Revenues from contracts with customers | Electric

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

The following table disaggregates electric utility operating revenues into customer class:

	Three Months Ended March 31
(in millions)	2022		2021
Residential	$	463.1	$	423.7
Small commercial and industrial	370.1		331.4
Large commercial and industrial	229.2		209.5
Other	7.8		7.8
Total retail revenues	1,070.2		972.4
Wholesale	42.4		39.7
Resale	56.8		62.7
Steam	12.1		14.8
Other utility revenues	6.0		5.4
Total electric utility operating revenues	$	1,187.5	$	1,095.0

Revenues from contracts with customers | Natural gas

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

The following tables disaggregate natural gas utility operating revenues into customer class:

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2022
Residential	$	502.5	$	465.5	$	161.3	$	1,129.3
Commercial and industrial	272.5		158.3		86.8		517.6
Total retail revenues	775.0		623.8		248.1		1,646.9
Transportation	25.5		80.9		13.9		120.3
Other utility revenues (1)	(53.7)		(24.8)		(23.8)		(102.3)
Total natural gas utility operating revenues	$	746.8	$	679.9	$	238.2	$	1,664.9

(in millions)	Wisconsin		Illinois		Other States		Total Natural Gas Utility Operating Revenues
Three Months Ended March 31, 2021
Residential	$	347.6	$	333.9	$	87.9	$	769.4
Commercial and industrial	176.4		102.7		43.9		323.0
Total retail revenues	524.0		436.6		131.8		1,092.4
Transportation	24.4		74.2		11.0		109.6
Other utility revenues (1)	78.9		182.7		82.8		344.4
Total natural gas utility operating revenues	$	627.3	$	693.5	$	225.6	$	1,546.4

(1)Includes the revenues subject to the purchased gas recovery mechanisms of our utilities. The amounts for the three months ended March 31, 2021 reflect the higher natural gas costs that were incurred as a result of the extreme winter weather conditions in February 2021. As these amounts are billed to customers, they are reflected in retail revenues with an offsetting decrease in other utility revenues. In 2022, we continued to recover on natural gas costs we under-collected from our customers in 2021, related to the extreme weather. In addition, during the first quarter of 2022 we over-collected natural gas costs due to these costs being lower than what was anticipated in rates. See Note 21, Regulatory Environment, for more information.

Revenues from contracts with customers | Other non-utility revenues

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

Other non-utility operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Wind generation revenues	$	36.2	$	15.8
We Power revenues (1)	5.9		5.8
Appliance service revenues	4.6		4.7
Total other non-utility operating revenues	$	46.7	$	26.3

(1)As part of the construction of the We Power electric generating units, we capitalized interest during construction, which is included in property, plant, and equipment. As allowed by the PSCW, we collected these carrying costs from WE's utility customers during construction. The equity portion of these carrying costs was recorded as a contract liability, which is presented as deferred revenue, net on our balance sheets. We continually amortize the deferred carrying costs to revenues over the related lease term that We Power has with WE.

Other operating revenues

Disaggregation of Operating Revenues

Operating revenues disaggregated by revenue source

Other operating revenues consist primarily of the following:

	Three Months Ended March 31
(in millions)	2022		2021
Late payment charges	$	13.6	$	15.0
Alternative revenues (1)	(6.0)		6.2
Other	0.9		1.2
Total other operating revenues	$	8.5	$	22.4

(1)Negative amounts can result from alternative revenues being reversed to revenues from contracts with customers as the customer is billed for these alternative revenues. Negative amounts can also result from revenues to be refunded to customers subject to decoupling mechanisms, wholesale true-ups, conservation improvement rider true-ups, and certain late payment charges.

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CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

Schedule of gross receivables and related allowances for credit losses

We have included tables below that show our gross third-party receivable balances and the related allowance for credit losses at March 31, 2022 and December 31, 2021, by reportable segment.

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
March 31, 2022
Accounts receivable and unbilled revenues	$	1,072.2		$	612.8		$	125.7		$	1,810.7		$	17.1		$	8.5		$	1,836.3
Allowance for credit losses	85.7			107.0			7.9			200.6			—			—			200.6
Accounts receivable and unbilled revenues, net (1)	$	986.5		$	505.8		$	117.8		$	1,610.1		$	17.1		$	8.5		$	1,635.7
Total accounts receivable, net – past due greater than 90 days (1)	$	55.5		$	43.7		$	3.7		$	102.9		$	—		$	—		$	102.9
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	98.2		%	100.0		%	—		%	95.4		%	—		%	—		%	95.4		%

(in millions)	Wisconsin			Illinois			Other States			Total Utility Operations			Non-Utility Energy Infrastructure			Corporate and Other			WEC Energy Group Consolidated
December 31, 2021
Accounts receivable and unbilled revenues	$	1,053.1		$	523.1		$	105.7		$	1,681.9		$	17.0		$	5.1		$	1,704.0
Allowance for credit losses	84.0			105.5			8.8			198.3			—			—			198.3
Accounts receivable and unbilled revenues, net (1)	$	969.1		$	417.6		$	96.9		$	1,483.6		$	17.0		$	5.1		$	1,505.7
Total accounts receivable, net – past due greater than 90 days (1)	$	46.5		$	36.6		$	3.4		$	86.5		$	—		$	—		$	86.5
Past due greater than 90 days – collection risk mitigated by regulatory mechanisms (1)	97.6		%	100.0		%	—		%	94.8		%	—		%	—		%	94.8		%

(1)Our exposure to credit losses for certain regulated utility customers is mitigated by regulatory mechanisms we have in place. Specifically, rates related to all of the customers in our Illinois segment, as well as the residential rates of WE, WPS, and WG in our Wisconsin segment, include riders or other mechanisms for cost recovery or refund of uncollectible expense based on the difference between the actual provision for credit losses and the amounts recovered in rates. As a result, at March 31, 2022, $1,008.4 million, or 61.6%, of our net accounts receivable and unbilled revenues balance had regulatory protections in place to mitigate the exposure to credit losses.

Rollforward of the allowances for credit losses by reportable segment

A rollforward of the allowance for credit losses by reportable segment for the three months ended March 31, 2022 and 2021 is included below:

Three Months Ended March 31, 2022 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2022	$	84.0	$	105.5	$	8.8	$	198.3
Provision for credit losses	11.8		11.3		0.2		23.3
Provision for credit losses deferred for future recovery or refund	8.8		12.1		—		20.9
Write-offs charged against the allowance	(28.8)		(27.3)		(1.4)		(57.5)
Recoveries of amounts previously written off	9.9		5.4		0.3		15.6
Balance at March 31, 2022	$	85.7	$	107.0	$	7.9	$	200.6

On a consolidated basis, there was a $2.3 million increase in the allowance for credit losses at March 31, 2022, compared to January 1, 2022, driven by an increase in past due accounts receivable balances at our Wisconsin and Illinois reportable segments. We believe that the higher year-over-year energy costs that customers were seeing, which were driven by high natural gas prices, contributed to the higher past due accounts receivable balances. An increase in past due balances is also a trend we generally see over the winter moratorium months, when we are not allowed to disconnect customer service as a result of non-payment. In Wisconsin, the winter moratorium begins on November 1 and ends on April 15, and in Illinois the winter moratorium begins on December 1 and ends on March 31.

Three Months Ended March 31, 2021 (in millions)	Wisconsin		Illinois		Other States		WEC Energy Group Consolidated
Balance at January 1, 2021	$	102.1	$	111.6	$	6.4	$	220.1
Provision for credit losses	13.7		7.1		1.3		22.1
Provision for credit losses deferred for future recovery or refund	22.3		3.1		—		25.4
Write-offs charged against the allowance	(18.5)		(2.8)		(0.5)		(21.8)
Recoveries of amounts previously written off	9.9		3.0		0.4		13.3
Balance at March 31, 2021	$	129.5	$	122.0	$	7.6	$	259.1

The increase in the allowance for credit losses at March 31, 2021, compared to January 1, 2021, was driven by higher past due accounts receivable balances at our utility segments, primarily related to residential customers. This increase in accounts receivable balances in arrears was driven by the continued economic disruptions caused by the COVID-19 pandemic, including continued high unemployment rates. Also, as a result of the winter moratorium rules and the COVID-19 pandemic and related regulatory orders we received, we were unable to disconnect any of our Wisconsin and Illinois residential customers in the first quarter of 2021 and during all of 2020.

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REGULATORY ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]

Schedule of regulatory assets

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets
Pension and OPEB costs	$	783.1	$	802.3
Plant retirement related items	714.8		722.3
Environmental remediation costs	618.8		630.9
Income tax related items	456.6		458.8
Asset retirement obligations	179.6		194.2
System support resource	128.4		129.5
Securitization	98.2		100.7
Energy costs recoverable through rate adjustments	70.1		85.4
MERC extraordinary natural gas costs	51.6		59.7
Uncollectible expense	47.6		42.6
Energy efficiency programs	20.4		22.0
Derivatives (1)	3.6		33.1
Other, net	82.8		85.6
Total regulatory assets	$	3,255.6	$	3,367.1
Balance sheet presentation
Other current assets	$	92.0	$	102.3
Regulatory assets	3,163.6		3,264.8
Total regulatory assets	$	3,255.6	$	3,367.1

(1)For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

Schedule of regulatory liabilities

(in millions)	March 31, 2022		December 31, 2021
Regulatory liabilities
Income tax related items	$	1,981.6	$	1,998.5
Removal costs	1,247.2		1,248.0
Pension and OPEB benefits	392.8		397.3
Derivatives (1)	245.3		124.1
Energy costs refundable through rate adjustments (2)	97.6		13.7
Electric transmission costs (3)	65.5		84.2
Uncollectible expense	29.7		37.1
Earnings sharing mechanisms (3)	22.5		28.4
Other, net	47.2		29.0
Total regulatory liabilities	$	4,129.4	$	3,960.3
Balance sheet presentation
Other current liabilities	$	96.8	$	14.3
Regulatory liabilities	4,032.6		3,946.0
Total regulatory liabilities	$	4,129.4	$	3,960.3

(1)    For most energy-related physical and financial contracts that qualify as derivatives, our regulators allow the effects of fair value accounting to be offset to regulatory assets and liabilities. See Note 12, Derivative Instruments, for more information on our derivative asset and liability balances.

(2)    The increase in these regulatory liabilities was primarily related to lower natural gas costs incurred in the first quarter of 2022, compared to what was anticipated in rates.

(3)    The decrease in these regulatory liability balances was primarily related to the PSCW's approval of certain accounting treatments that allowed our Wisconsin utilities to forego applying for a 2022 base rate increase, and instead maintain base rates consistent with 2021 levels. Among the accounting treatments approved was the amortization of certain regulatory liability balances in 2022, to offset a portion of the forecasted revenue deficiency. See Note 26, Regulatory Environment, in our 2021 Annual Report on Form 10-K for additional information on 2022 Wisconsin base rates.

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COMMON EQUITY (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of stock-based compensation awards granted

During the three months ended March 31, 2022, the Compensation Committee of our Board of Directors awarded the following stock-based compensation to our directors, officers, and certain other key employees:

Award Type	Number of Awards
Stock options (1)	437,269
Restricted shares (2)	72,211
Performance units	171,492

(1)Stock options awarded had a weighted-average exercise price of $96.04 and a weighted-average grant date fair value of $14.71 per option.

(2)Restricted shares awarded had a weighted-average grant date fair value of $96.04 per share.

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SHORT-TERM DEBT AND LINES OF CREDIT (Tables)

3 Months Ended

Mar. 31, 2022

Short-term Debt [Abstract]

Schedule of short-term borrowings and weighted-average interest rates

The following table shows our short-term borrowings and their corresponding weighted-average interest rates:

(in millions, except percentages)	March 31, 2022			December 31, 2021
Commercial paper
Amount outstanding	$	1,448.3		$	1,896.1
Weighted-average interest rate on amounts outstanding	0.92		%	0.26		%
Operating expense loans
Amount outstanding (1)	$	1.7		$	0.9

(1)Coyote Ridge and Tatanka Ridge entered into operating expense loans. In accordance with their limited liability company operating agreements, they received loans from their noncontrolling interests in proportion to their ownership interests.

Schedule of credit agreements and remaining available capacity

The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing programs, including remaining available capacity under these facilities:

(in millions)	Maturity	March 31, 2022
WEC Energy Group	September 2026	$	1,500.0
WE	September 2026	500.0
WPS (1)	September 2026	400.0
WG	September 2026	350.0
PGL	September 2026	350.0
Total short-term credit capacity		$	3,100.0
Less:
Letters of credit issued inside credit facilities		$	2.3
Commercial paper outstanding		1,448.3
Available capacity under existing agreements		$	1,649.4

(1)    In April 2022, WPS received approval from the PSCW to extend the maturity of its facility to September 2026.

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MATERIALS, SUPPLIES, AND INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of inventory

Our inventory consisted of:

(in millions)	March 31, 2022		December 31, 2021
Materials and supplies	$	232.2	$	225.3
Fossil fuel	81.3		84.5
Natural gas in storage	55.3		326.0
Total	$	368.8	$	635.8

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of effective income tax rate reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:

	Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
(in millions)	Amount		Effective Tax Rate		Amount		Effective Tax Rate
Statutory federal income tax	$	145.5	21.0	%	$	122.8	21.0	%
State income taxes net of federal tax benefit	43.6		6.3	%	36.9		6.3	%
PTCs	(44.8)		(6.5)	%	(34.0)		(5.8)	%
Federal excess deferred tax amortization	(15.8)		(2.3)	%	(14.6)		(2.5)	%
Federal excess deferred tax amortization – Wisconsin unprotected	(0.3)		—	%	(30.3)		(5.2)	%
Uncertain tax positions	—		—	%	(8.2)		(1.4)	%
Other	(1.1)		(0.2)	%	2.3		0.4	%
Total income tax expense	$	127.1	18.3	%	$	74.9	12.8	%

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities measured on a recurring basis categorized by level within the fair value hierarchy

The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:

	March 31, 2022
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	176.9	$	3.0	$	—	$	179.9
FTRs	—		—		1.0		1.0
Coal contracts	—		38.2		—		38.2
Total derivative assets	$	176.9	$	41.2	$	1.0	$	219.1
Investments held in rabbi trust	$	59.5	$	—	$	—	$	59.5
Derivative liabilities
Natural gas contracts	$	—	$	1.4	$	—	$	1.4

	December 31, 2021
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	46.4	$	18.2	$	—	$	64.6
FTRs	—		—		2.4		2.4
Coal contracts	—		53.0		—		53.0
Total derivative assets	$	46.4	$	71.2	$	2.4	$	120.0
Investments held in rabbi trust	$	79.6	$	—	$	—	$	79.6
Derivative liabilities
Natural gas contracts	$	8.4	$	6.7	$	—	$	15.1

Reconciliation of changes in fair value of items categorized as level 3 measurements

The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy:

	Three Months Ended March 31
(in millions)	2022		2021
Balance at the beginning of the period	$	2.4	$	2.4
Purchases	—		0.1
Settlements	(1.4)		(1.6)
Balance at the end of the period	$	1.0	$	0.9

Schedule of carrying value and fair value of financial instruments not recorded at fair value

The following table shows the financial instruments included on our balance sheets that were not recorded at fair value:

	March 31, 2022				December 31, 2021
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred stock of subsidiary	$	30.4	$	26.6	$	30.4	$	30.3
Long-term debt, including current portion (1)	13,549.7		13,519.8		13,563.4		14,819.4

(1)The carrying amount of long-term debt excludes finance lease obligations of $128.0 million and $129.7 million at March 31, 2022 and December 31, 2021, respectively.

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DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative assets and liabilities

The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below were designated as hedging instruments.

	March 31, 2022				December 31, 2021
(in millions)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Current
Natural gas contracts	$	169.6	$	1.4	$	60.6	$	14.0
FTRs	1.0		—		2.4		—
Coal contracts	33.7		—		44.0		—
Total current	204.3		1.4		107.0		14.0
Long-term
Natural gas contracts	10.3		—		4.0		1.1
Coal contracts	4.5		—		9.0		—
Total long-term	14.8		—		13.0		1.1
Total	$	219.1	$	1.4	$	120.0	$	15.1

Schedule of estimated notional sales volumes and realized gains (losses)

Our estimated notional sales volumes and realized gains (losses) were as follows:

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
(in millions)	Volumes	Gains		Volumes	Gains (Losses)
Natural gas contracts	59.5 Dth	$	31.6	59.8 Dth	$	(7.5)
FTRs	7.0 MWh	1.0		8.4 MWh	2.1
Total		$	32.6		$	(5.4)

Schedule of net derivative instruments

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:

	March 31, 2022					December 31, 2021
(in millions)	Derivative Assets			Derivative Liabilities		Derivative Assets			Derivative Liabilities
Gross amount recognized on the balance sheet	$	219.1		$	1.4	$	120.0		$	15.1
Gross amount not offset on the balance sheet	(139.5)		(1)	(0.2)		(15.2)		(2)	(9.2)		(3)
Net amount	$	79.6		$	1.2	$	104.8		$	5.9

(1)Includes cash collateral received of $139.3 million.

(2)Includes cash collateral received of $6.4 million.

(3)Includes cash collateral posted of $0.4 million.

Schedule of cash flow hedges reclassified to interest expense and total interest expense

The table below shows the amounts related to these cash flow hedges that were reclassified to interest expense, along with our total interest expense on the income statements:

	Three Months Ended March 31
(in millions)	2022		2021
Net derivative gain (loss) reclassified from accumulated other comprehensive loss to interest expense	$	0.1	$	(1.4)
Total interest expense line item on the income statements	117.6		119.5

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GUARANTEES (Tables)

3 Months Ended

Mar. 31, 2022

Guarantees [Abstract]

Schedule of outstanding guarantees

The following table shows our outstanding guarantees:

	Total Amounts Committed at March 31, 2022		Expiration
(in millions)			Less Than 1 Year		1 to 3 Years		Over 3 Years
Standby letters of credit (1)	$	82.3	$	10.5	$	0.2	$	71.6
Surety bonds (2)	12.8		12.8		—		—
Other guarantees (3)	9.4		—		—		9.4
Total guarantees	$	104.5	$	23.3	$	0.2	$	81.0

(1)At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets.

(2)Primarily for workers compensation self-insurance programs and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets.

(3)Related to workers compensation coverage for which a liability was recorded on our balance sheets.

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EMPLOYEE BENEFITS (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Schedule of net benefit cost (credit)

The following tables show the components of net periodic benefit cost (credit) for our benefit plans.

	Pension Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	12.4	$	13.9
Interest cost	22.8		21.9
Expected return on plan assets	(52.7)		(50.6)
Loss on plan settlement	—		0.1
Amortization of prior service cost	0.4		0.4
Amortization of net actuarial loss	19.1		27.4
Net periodic benefit cost	$	2.0	$	13.1

	OPEB Benefits
	Three Months Ended March 31
(in millions)	2022		2021
Service cost	$	3.8	$	4.2
Interest cost	3.9		3.6
Expected return on plan assets	(17.2)		(16.4)
Amortization of prior service credit	(4.0)		(4.0)
Amortization of net actuarial gain	(6.0)		(5.7)
Net periodic benefit credit	$	(19.5)	$	(18.3)

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GOODWILL AND INTANGIBLES (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill balance by segment

The table below shows our goodwill balances by segment at March 31, 2022. We had no changes to the carrying amount of goodwill during the three months ended March 31, 2022.

(in millions)	Wisconsin		Illinois		Other States		Non-Utility Energy Infrastructure		Total
Goodwill balance (1)	$	2,104.3	$	758.7	$	183.2	$	6.6	$	3,052.8

(1)We had no accumulated impairment losses related to our goodwill as of March 31, 2022.

Schedule of intangible liabilities obtained through acquisitions by WECI

The intangible liabilities below were all obtained through acquisitions by WECI and are classified as other long-term liabilities on our balance sheets.

	March 31, 2022						December 31, 2021
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
PPAs (1)	$	87.9	$	(8.5)	$	79.4	$	87.9	$	(6.5)	$	81.4
Proxy revenue swap (2)	7.2		(2.2)		5.0		7.2		(2.1)		5.1
Interconnection agreements (3)	4.7		(0.6)		4.1		4.7		(0.5)		4.2
Total intangible liabilities	$	99.8	$	(11.3)	$	88.5	$	99.8	$	(9.1)	$	90.7

(1)    Represents PPAs related to the acquisition of Blooming Grove, Tatanka Ridge, and Jayhawk expiring between 2030 and 2032. The weighted-average remaining useful life of the PPAs is 10 years.

(2)    Represents an agreement with a counterparty to swap the market revenue of Upstream's wind generation for fixed quarterly payments over 10 years, which expires in 2029. The remaining useful life of the proxy revenue swap is seven years.

(3)    Represents interconnection agreements related to the acquisitions of Tatanka Ridge and Bishop Hill III, expiring in 2040 and 2041, respectively. These agreements relate to payments for connecting our facilities to the infrastructure of another utility to facilitate the movement of power onto the electric grid. The weighted-average remaining useful life of the interconnection agreements is 19 years.

Schedule of amortization over the next five years

Amortization for the next five years, including amounts recorded through March 31, 2022, is estimated to be:

	For the Years Ending December 31
(in millions)	2022		2023		2024		2025		2026
Amortization to be recorded in operating revenues	$	8.5	$	8.4	$	8.4	$	8.4	$	8.4
Amortization to be recorded in other operation and maintenance	0.2		0.2		0.2		0.2		0.2

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INVESTMENT IN TRANSMISSION AFFILIATES (Tables)

3 Months Ended

Mar. 31, 2022

Investment in transmission affiliates

Schedule of changes to our investments in transmission affiliates

The following tables provide a reconciliation of the changes in our investments in ATC and ATC Holdco:

	Three Months Ended March 31, 2022
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,766.9	$	22.5	$	1,789.4
Add: Earnings from equity method investment	41.0		0.7		41.7
Add: Capital contributions	21.1		—		21.1
Less: Distributions	34.0		—		34.0
Balance at end of period	$	1,795.0	$	23.2	$	1,818.2
	Three Months Ended March 31, 2021
(in millions)	ATC		ATC Holdco		Total
Balance at beginning of period	$	1,733.5	$	30.8	$	1,764.3
Add: Earnings from equity method investment	41.7		0.9		42.6
Less: Distributions	33.4		—		33.4
Add: Other	0.1		—		0.1
Balance at end of period	$	1,741.9	$	31.7	$	1,773.6

ATC

Investment in transmission affiliates

Schedule of significant related party transactions with ATC

The following table summarizes our significant related party transactions with ATC:

	Three Months Ended March 31
(in millions)	2022		2021
Charges to ATC for services and construction	$	6.2	$	6.0
Charges from ATC for network transmission services	91.1		92.6

Schedule of receivables and payables with ATC

Our balance sheets included the following receivables and payables for services provided to or received from ATC:

(in millions)	March 31, 2022		December 31, 2021
Accounts receivable for services provided to ATC	$	2.3	$	2.0
Accounts payable for services received from ATC	30.5		30.2
Amounts due from ATC for transmission infrastructure upgrades (1)	15.1		13.0

(1)The transmission infrastructure upgrades were primarily related to WE's and WPS's construction of their new solar projects, Badger Hollow II and Badger Hollow I, respectively.

Schedule of summarized income statement data for ATC

Summarized financial data for ATC is included in the tables below:

	Three Months Ended March 31
(in millions)	2022		2021
Income statement data
Operating revenues	$	191.0	$	188.7
Operating expenses	95.5		95.1
Other expense, net	28.0		28.5
Net income	$	67.5	$	65.1

Schedule of summarized balance sheet data for ATC

(in millions)	March 31, 2022		December 31, 2021
Balance sheet data
Current assets	$	95.5	$	89.8
Noncurrent assets	5,706.8		5,628.1
Total assets	$	5,802.3	$	5,717.9
Current liabilities	$	421.0	$	436.9
Long-term debt	2,562.3		2,513.0
Other noncurrent liabilities	424.7		422.0
Members' equity	2,394.3		2,346.0
Total liabilities and members' equity	$	5,802.3	$	5,717.9

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SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Financial information of reportable segments

The following tables show summarized financial information related to our reportable segments for the three months ended March 31, 2022 and 2021:

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2022
External revenues	$	1,942.3	$	682.1	$	240.9	$	2,865.3	$	—	$	42.6	$	0.2	$	—	$	2,908.1
Intersegment revenues	—		—		—		—		—		116.9		—		(116.9)		—
Other operation and maintenance	312.6		113.6		24.6		450.8		—		10.9		(5.7)		(1.6)		454.4
Depreciation and amortization	187.1		56.8		10.0		253.9		—		34.0		6.5		(16.3)		278.1
Equity in earnings of transmission affiliates	—		—		—		—		41.7		—		—		—		41.7
Interest expense	136.3		17.7		3.3		157.3		4.9		17.2		22.6		(84.4)		117.6
Income tax expense (benefit)	95.4		42.1		10.4		147.9		8.9		(4.9)		(24.8)		—		127.1
Net income	288.4		113.4		31.5		433.3		27.8		93.3		13.6		—		568.0
Net income attributed to common shareholders	288.1		113.4		31.5		433.0		27.8		91.5		13.6		—		565.9

	Utility Operations
(in millions)	Wisconsin		Illinois		Other States		Total Utility Operations		Electric Transmission		Non-Utility Energy Infrastructure		Corporate and Other		Reconciling Eliminations		WEC Energy Group Consolidated
Three Months Ended March 31, 2021
External revenues	$	1,731.7	$	703.4	$	233.3	$	2,668.4	$	—	$	22.9	$	0.1	$	—	$	2,691.4
Intersegment revenues	—		—		—		—		—		114.7		—		(114.7)		—
Other operation and maintenance	341.9		109.3		23.2		474.4		—		8.9		(1.8)		(1.6)		479.9
Depreciation and amortization	176.2		52.7		9.2		238.1		—		31.0		6.6		(14.3)		261.4
Equity in earnings of transmission affiliates	—		—		—		—		42.6		—		—		—		42.6
Interest expense	140.1		16.5		1.5		158.1		4.9		18.0		24.2		(85.7)		119.5
Income tax expense (benefit)	48.1		41.4		8.4		97.9		9.8		0.1		(32.9)		—		74.9
Net income	256.6		112.1		24.7		393.4		28.0		71.3		17.6		—		510.3
Net income attributed to common shareholders	256.3		112.1		24.7		393.1		28.0		71.4		17.6		—		510.1

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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of balance sheet impact of WEPCo Environmental Trust

The following table summarizes the impact of WEPCo Environmental Trust on our balance sheet.

(in millions)	March 31, 2022		December 31, 2021
Assets
Other current assets (restricted cash)	$	5.6	$	2.4
Regulatory assets	98.2		100.7
Other long-term assets (restricted cash)	0.6		0.6
Liabilities
Current portion of long-term debt	8.8		8.8
Accounts payable	0.1		—
Other current liabilities (accrued interest)	0.5		0.1
Long-term debt	102.8		102.7

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of regulatory assets and reserves related to manufactured gas plant sites

We have established the following regulatory assets and reserves for manufactured gas plant sites:

(in millions)	March 31, 2022		December 31, 2021
Regulatory assets	$	618.8	$	630.9
Reserves for future environmental remediation	517.2		532.6

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information

	Three Months Ended March 31
(in millions)	2022		2021
Cash paid for interest, net of amount capitalized	$	68.3	$	76.8
Cash paid (received) for income taxes, net	0.7		(2.5)
Significant non-cash investing and financing transactions:
Accounts payable related to construction costs	118.7		97.8
Increase in receivable related to insurance proceeds	0.3		2.7

Reconciliation of cash and cash equivalents and restricted cash

The following table reconciles the cash, cash equivalents, and restricted cash amounts reported within the balance sheets to the total of these amounts shown on the statements of cash flows:

(in millions)	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	33.8	$	16.3
Restricted cash included in other current assets	31.8		19.6
Restricted cash included in other long term assets	54.0		51.6
Cash, cash equivalents, and restricted cash	$	119.6	$	87.5

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REGULATORY ENVIRONMENT (Tables)

3 Months Ended

Mar. 31, 2022

Regulated Operations [Abstract]

Schedule of regulatory proposals

The requests reflected the following:

	WE					WPS					WG
Proposed 2023 rate increase
Electric	$	260.5	million	/	8.4%	$	73.9	million	/	6.2%	N/A
Gas	$	50.7	million	/	10.7%	$	30.3	million	/	8.3%	$	60.1	million	/	8.3%
Steam	$	3.3	million	/	15.5%	N/A					N/A
Proposed ROE (1)	10.0%					10.0%					10.2%
Proposed common equity component average on a financial basis (1)	53.0%					53.0%					53.0%

(1)    The proposed ROEs are consistent with each utilities' currently authorized ROE. The common equity component average for each utility is currently 52.5%.

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GENERAL INFORMATION - GENERAL (Details) customer in Millions	Mar. 31, 2022 customer
Electric
Product information [Line Items]
Number Of Customers	1.6
Natural gas
Product information [Line Items]
Number Of Customers	3.0

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GENERAL INFORMATION - INVESTMENTS (Details)	Mar. 31, 2022
ATC
Schedule of Investments [Line Items]
Equity method investment, ownership interest (as a percent)	60.00%

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ACQUISITIONS - WHITEWATER (Details) - Whitewater cogeneration facility - WE and WPS [Member] $ in Millions	1 Months Ended
	Nov. 30, 2021 USD ($) MW
Asset Acquisition [Line Items]
Capacity of generation unit | MW	236.5
Acquisition purchase price, expected | $	$ 72.7

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ACQUISITIONS - SAPPHIRE SKY (Details) - Sapphire Sky - WECI $ in Millions	1 Months Ended
	Jun. 30, 2021 USD ($) MW
Asset Acquisition [Line Items]
Ownership interest of wind generating facility acquired	90.00%
Capacity of generation unit | MW	250
Acquisition purchase price, expected | $	$ 412.0
Duration of offtake agreement for the sale of energy produced	12 years

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ACQUISITIONS - JAYHAWK (Details) - Jayhawk - WECI $ in Millions	1 Months Ended
	Dec. 31, 2021 USD ($)	Feb. 28, 2021 USD ($) MW
Asset Acquisition [Line Items]
Ownership interest of wind generating facility acquired		90.00%
Capacity of generation unit | MW		190
Acquisition purchase price		$ 119.9
Additional capital expenditures	$ 147.4
Current project investment	$ 267.3
Duration of offtake agreement for the sale of energy produced	10 years
Percentage of tax benefits entitled to	99.00%
Duration of receiving tax benefits	10 years

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ACQUISITIONS - THUNDERHEAD (Details) - Thunderhead - WECI $ in Millions	1 Months Ended		3 Months Ended
	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($) MW	Mar. 31, 2022
Asset Acquisition [Line Items]
Ownership interest of wind generating facility acquired		80.00%
Capacity of generation unit | MW		300
Acquisition purchase price, expected | $	$ 43.0	$ 338.0
Additional ownership interest acquired	10.00%
Duration of offtake agreement for the sale of energy produced			12 years

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OPERATING REVENUES - DISAGGREGATION OF OPERATING REVENUES BY SEGMENT (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Operating Revenues
Total operating revenues	$ 2,908.1	$ 2,691.4
Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	2,899.6	2,669.0
Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	8.5	22.4
Total regulated revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	2,852.9	2,642.7
Electric | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,187.5	1,095.0
Natural gas | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,665.4	1,547.7
Other non-utility revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	46.7	26.3
Reconciling Eliminations
Disaggregation of Operating Revenues
Total operating revenues	(116.9)	(114.7)
Reconciling Eliminations | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	(16.4)	(14.9)
Reconciling Eliminations | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	(100.5)	(99.8)
Reconciling Eliminations | Total regulated revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	(14.8)	(13.3)
Reconciling Eliminations | Electric | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Reconciling Eliminations | Natural gas | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	(14.8)	(13.3)
Reconciling Eliminations | Other non-utility revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	(1.6)	(1.6)
Total Utility Operations
Disaggregation of Operating Revenues
Total operating revenues	2,865.3	2,668.4
Total Utility Operations | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	8.3	22.3
Total Utility Operations | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	2,857.0	2,646.1
Total Utility Operations | Total regulated revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	2,852.4	2,641.4
Total Utility Operations | Electric | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,187.5	1,095.0
Total Utility Operations | Natural gas | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,664.9	1,546.4
Total Utility Operations | Other non-utility revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	4.6	4.7
Wisconsin
Disaggregation of Operating Revenues
Total operating revenues	1,942.3	1,731.7
Wisconsin | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	8.0	9.4
Wisconsin | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,934.3	1,722.3
Wisconsin | Total regulated revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,934.3	1,722.3
Wisconsin | Electric | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,187.5	1,095.0
Wisconsin | Natural gas | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	746.8	627.3
Wisconsin | Other non-utility revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Illinois
Disaggregation of Operating Revenues
Total operating revenues	682.1	703.4
Illinois | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	2.2	9.9
Illinois | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	679.9	693.5
Illinois | Total regulated revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	679.9	693.5
Illinois | Electric | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Illinois | Natural gas | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	679.9	693.5
Illinois | Other non-utility revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Other States
Disaggregation of Operating Revenues
Total operating revenues	240.9	233.3
Other States | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	(1.9)	3.0
Other States | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	242.8	230.3
Other States | Total regulated revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	238.2	225.6
Other States | Electric | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Other States | Natural gas | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	238.2	225.6
Other States | Other non-utility revenues | Transferred over time | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	4.6	4.7
Non-Utility Energy Infrastructure
Disaggregation of Operating Revenues
Total operating revenues	159.5	137.6
Non-Utility Energy Infrastructure | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	59.0	37.8
Non-Utility Energy Infrastructure | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	100.5	99.8
Non-Utility Energy Infrastructure | Total regulated revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	15.3	14.6
Non-Utility Energy Infrastructure | Electric | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Non-Utility Energy Infrastructure | Natural gas | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	15.3	14.6
Non-Utility Energy Infrastructure | Other non-utility revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	43.7	23.2
Corporate and Other
Disaggregation of Operating Revenues
Total operating revenues	0.2	0.1
Corporate and Other | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Corporate and Other | Other operating revenues
Disaggregation of Operating Revenues
Other operating revenues	0.2	0.1
Corporate and Other | Total regulated revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Corporate and Other | Electric | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Corporate and Other | Natural gas | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	0.0	0.0
Corporate and Other | Other non-utility revenues | Revenues from contracts with customers
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 0.0	$ 0.0

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OPERATING REVENUES - DISAGGREGATION OF ELECTRIC UTILITY OPERATING REVENUES BY CUSTOMER CLASS (Details) - Revenues from contracts with customers - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 2,899.6	$ 2,669.0
Electric
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,187.5	1,095.0
Wisconsin | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,934.3	1,722.3
Wisconsin | Electric | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,187.5	1,095.0
Wisconsin | Electric | Transferred over time | Total retail revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,070.2	972.4
Wisconsin | Electric | Transferred over time | Residential
Disaggregation of Operating Revenues
Revenues from contracts with customers	463.1	423.7
Wisconsin | Electric | Transferred over time | Small commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	370.1	331.4
Wisconsin | Electric | Transferred over time | Large commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	229.2	209.5
Wisconsin | Electric | Transferred over time | Other
Disaggregation of Operating Revenues
Revenues from contracts with customers	7.8	7.8
Wisconsin | Electric | Transferred over time | Wholesale
Disaggregation of Operating Revenues
Revenues from contracts with customers	42.4	39.7
Wisconsin | Electric | Transferred over time | Resale
Disaggregation of Operating Revenues
Revenues from contracts with customers	56.8	62.7
Wisconsin | Electric | Transferred over time | Steam
Disaggregation of Operating Revenues
Revenues from contracts with customers	12.1	14.8
Wisconsin | Electric | Transferred over time | Other utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 6.0	$ 5.4

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OPERATING REVENUES - DISAGGREGATION OF NATURAL GAS UTILITY OPERATING REVENUES BY CUSTOMER CLASS (Details) - Revenues from contracts with customers - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 2,899.6	$ 2,669.0
Natural gas
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,665.4	1,547.7
Total Utility Operations | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	2,857.0	2,646.1
Total Utility Operations | Natural gas | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,664.9	1,546.4
Total Utility Operations | Natural gas | Transferred over time | Total retail revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,646.9	1,092.4
Total Utility Operations | Natural gas | Transferred over time | Residential
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,129.3	769.4
Total Utility Operations | Natural gas | Transferred over time | Commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	517.6	323.0
Total Utility Operations | Natural gas | Transferred over time | Transportation
Disaggregation of Operating Revenues
Revenues from contracts with customers	120.3	109.6
Total Utility Operations | Natural gas | Transferred over time | Other utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	(102.3)	344.4
Wisconsin | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	1,934.3	1,722.3
Wisconsin | Natural gas | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	746.8	627.3
Wisconsin | Natural gas | Transferred over time | Total retail revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	775.0	524.0
Wisconsin | Natural gas | Transferred over time | Residential
Disaggregation of Operating Revenues
Revenues from contracts with customers	502.5	347.6
Wisconsin | Natural gas | Transferred over time | Commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	272.5	176.4
Wisconsin | Natural gas | Transferred over time | Transportation
Disaggregation of Operating Revenues
Revenues from contracts with customers	25.5	24.4
Wisconsin | Natural gas | Transferred over time | Other utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	(53.7)	78.9
Illinois | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	679.9	693.5
Illinois | Natural gas | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	679.9	693.5
Illinois | Natural gas | Transferred over time | Total retail revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	623.8	436.6
Illinois | Natural gas | Transferred over time | Residential
Disaggregation of Operating Revenues
Revenues from contracts with customers	465.5	333.9
Illinois | Natural gas | Transferred over time | Commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	158.3	102.7
Illinois | Natural gas | Transferred over time | Transportation
Disaggregation of Operating Revenues
Revenues from contracts with customers	80.9	74.2
Illinois | Natural gas | Transferred over time | Other utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	(24.8)	182.7
Other States | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	242.8	230.3
Other States | Natural gas | Transferred over time
Disaggregation of Operating Revenues
Revenues from contracts with customers	238.2	225.6
Other States | Natural gas | Transferred over time | Total retail revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	248.1	131.8
Other States | Natural gas | Transferred over time | Residential
Disaggregation of Operating Revenues
Revenues from contracts with customers	161.3	87.9
Other States | Natural gas | Transferred over time | Commercial and industrial
Disaggregation of Operating Revenues
Revenues from contracts with customers	86.8	43.9
Other States | Natural gas | Transferred over time | Transportation
Disaggregation of Operating Revenues
Revenues from contracts with customers	13.9	11.0
Other States | Natural gas | Transferred over time | Other utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ (23.8)	$ 82.8

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OPERATING REVENUES - OTHER NON-UTILITY OPERATING REVENUES (Details) - Revenues from contracts with customers - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 2,899.6	$ 2,669.0
Other non-utility revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	46.7	26.3
Other non-utility revenues | We Power revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	5.9	5.8
Transferred over time | Other non-utility revenues | Wind generation revenues
Disaggregation of Operating Revenues
Revenues from contracts with customers	36.2	15.8
Transferred over time | Other non-utility revenues | Appliance service repairs
Disaggregation of Operating Revenues
Revenues from contracts with customers	$ 4.6	$ 4.7

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OPERATING REVENUES - OTHER OPERATING REVENUES (Details) - Other operating revenues - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Operating Revenues
Other operating revenues	$ 8.5	$ 22.4
Late payment charges
Disaggregation of Operating Revenues
Other operating revenues	13.6	15.0
Alternative revenues
Disaggregation of Operating Revenues
Other operating revenues	(6.0)	6.2
Other
Disaggregation of Operating Revenues
Other operating revenues	$ 0.9	$ 1.2

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CREDIT LOSSES - GROSS RECEIVABLES AND RELATED ALLOWANCES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 1,836.3	$ 1,704.0
Allowance for credit losses	200.6	198.3	$ 259.1	$ 220.1
Accounts receivable and unbilled revenues, net	1,635.7	1,505.7
Total accounts receivable, net - past due greater than 90 days	$ 102.9	$ 86.5
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	95.40%	94.80%
Amount of net accounts receivable with regulatory protections	$ 1,008.4
Percent of net accounts receivable with regulatory protections	61.60%
Utility Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 1,810.7	$ 1,681.9
Allowance for credit losses	200.6	198.3
Accounts receivable and unbilled revenues, net	1,610.1	1,483.6
Total accounts receivable, net - past due greater than 90 days	$ 102.9	$ 86.5
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	95.40%	94.80%
Wisconsin | Utility Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 1,072.2	$ 1,053.1
Allowance for credit losses	85.7	84.0	129.5	102.1
Accounts receivable and unbilled revenues, net	986.5	969.1
Total accounts receivable, net - past due greater than 90 days	$ 55.5	$ 46.5
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	98.20%	97.60%
Illinois | Utility Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 612.8	$ 523.1
Allowance for credit losses	107.0	105.5	122.0	111.6
Accounts receivable and unbilled revenues, net	505.8	417.6
Total accounts receivable, net - past due greater than 90 days	$ 43.7	$ 36.6
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	100.00%	100.00%
Other States | Utility Operations
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 125.7	$ 105.7
Allowance for credit losses	7.9	8.8	$ 7.6	$ 6.4
Accounts receivable and unbilled revenues, net	117.8	96.9
Total accounts receivable, net - past due greater than 90 days	$ 3.7	$ 3.4
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	0.00%	0.00%
Non-Utility Energy Infrastructure
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 17.1	$ 17.0
Allowance for credit losses	0.0	0.0
Accounts receivable and unbilled revenues, net	17.1	17.0
Total accounts receivable, net - past due greater than 90 days	$ 0.0	$ 0.0
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	0.00%	0.00%
Corporate and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable and unbilled revenues	$ 8.5	$ 5.1
Allowance for credit losses	0.0	0.0
Accounts receivable and unbilled revenues, net	8.5	5.1
Total accounts receivable, net - past due greater than 90 days	$ 0.0	$ 0.0
Past due greater than 90 days - collection risk mitigated by regulatory mechanisms	0.00%	0.00%

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CREDIT LOSSES - ROLLFORWARD OF ALLOWANCES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 198.3	$ 220.1
Provision for credit losses	23.3	22.1
Provision for credit losses deferred for future recovery or refund	20.9	25.4
Write-offs charged against the allowance	(57.5)	(21.8)
Recovery of amounts previously written off	15.6	13.3
Balance at end of period	200.6	259.1
Change in allowance for credit losses	2.3
Utility Operations
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	198.3
Balance at end of period	200.6
Wisconsin | Utility Operations
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	84.0	102.1
Provision for credit losses	11.8	13.7
Write-offs charged against the allowance	(28.8)	(18.5)
Recovery of amounts previously written off	9.9	9.9
Balance at end of period	85.7	129.5
Wisconsin | Utility Operations | Uncollectible expense
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Provision for credit losses deferred for future recovery or refund	8.8	22.3
Illinois | Utility Operations
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	105.5	111.6
Provision for credit losses	11.3	7.1
Write-offs charged against the allowance	(27.3)	(2.8)
Recovery of amounts previously written off	5.4	3.0
Balance at end of period	107.0	122.0
Illinois | Utility Operations | Uncollectible expense
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Provision for credit losses deferred for future recovery or refund	12.1	3.1
Other States | Utility Operations
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	8.8	6.4
Provision for credit losses	0.2	1.3
Write-offs charged against the allowance	(1.4)	(0.5)
Recovery of amounts previously written off	0.3	0.4
Balance at end of period	7.9	7.6
Other States | Utility Operations | Uncollectible expense
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Provision for credit losses deferred for future recovery or refund	$ 0.0	$ 0.0

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REGULATORY ASSETS AND LIABILITIES - REGULATORY ASSETS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Regulatory assets
Other current assets	$ 92.0	$ 102.3
Regulatory assets	3,163.6	3,264.8
Total regulatory assets	3,255.6	3,367.1
Pension and OPEB costs
Regulatory assets
Total regulatory assets	783.1	802.3
Plant retirement related items
Regulatory assets
Total regulatory assets	714.8	722.3
Environmental remediation costs
Regulatory assets
Total regulatory assets	618.8	630.9
Income tax related items
Regulatory assets
Total regulatory assets	456.6	458.8
Asset retirement obligations
Regulatory assets
Total regulatory assets	179.6	194.2
System support resource
Regulatory assets
Total regulatory assets	128.4	129.5
Securitization
Regulatory assets
Total regulatory assets	98.2	100.7
Energy costs recoverable through rate adjustments
Regulatory assets
Total regulatory assets	70.1	85.4
MERC extraordinary natural gas costs
Regulatory assets
Total regulatory assets	51.6	59.7
Uncollectible expense
Regulatory assets
Total regulatory assets	47.6	42.6
Energy efficiency programs
Regulatory assets
Total regulatory assets	20.4	22.0
Derivatives
Regulatory assets
Total regulatory assets	3.6	33.1
Other, net
Regulatory assets
Total regulatory assets	$ 82.8	$ 85.6

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REGULATORY ASSETS AND LIABILITIES - REGULATORY LIABILITIES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Regulatory liabilities
Other current liabilities	$ 96.8	$ 14.3
Regulatory liabilities	4,032.6	3,946.0
Total regulatory liabilities	4,129.4	3,960.3
Income tax related items
Regulatory liabilities
Total regulatory liabilities	1,981.6	1,998.5
Removal costs
Regulatory liabilities
Total regulatory liabilities	1,247.2	1,248.0
Pension and OPEB benefits
Regulatory liabilities
Total regulatory liabilities	392.8	397.3
Derivatives
Regulatory liabilities
Total regulatory liabilities	245.3	124.1
Energy costs refundable through rate adjustments
Regulatory liabilities
Total regulatory liabilities	97.6	13.7
Electric transmission costs
Regulatory liabilities
Total regulatory liabilities	65.5	84.2
Uncollectible expense
Regulatory liabilities
Total regulatory liabilities	29.7	37.1
Earnings sharing mechanisms
Regulatory liabilities
Total regulatory liabilities	22.5	28.4
Other, net
Regulatory liabilities
Total regulatory liabilities	$ 47.2	$ 29.0

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PROPERTY, PLANT, AND EQUIPMENT - PLANT TO BE RETIRED (Details) - WPS $ in Millions	Mar. 31, 2022 USD ($)
Columbia Energy Center Unit 1
Property, plant, and equipment
Net book value of plant to be retired	$ 87.9
Columbia Energy Center Unit 2
Property, plant, and equipment
Net book value of plant to be retired	$ 186.2

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PROPERTY, PLANT, AND EQUIPMENT - PUBLIC SERVICE BUILDING AND STEAM TUNNEL ASSETS (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2020
Property, plant, and equipment
Insurance proceeds received for property damage	$ 41.0	$ 0.0
WE | Public Service Building and Steam Tunnel Assets
Property, plant, and equipment
Costs incurred for repairs and restorations	95.3
Insurance proceeds received for property damage	41.0		$ 20.0
Costs included in other operation and maintenance			$ 12.5
Repairs and restorations to be recovered through rates	$ 21.8

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COMMON EQUITY - STOCK-BASED COMPENSATION AWARDS GRANTED (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Stock options
Stock-based compensation
Stock options granted | shares	437,269
Stock options granted, weighted average exercise price | $ / shares	$ 96.04
Stock options granted, weighted-average grant date fair value | $ / shares	$ 14.71
Restricted shares
Stock-based compensation
Awards granted | shares	72,211
Restricted shares granted, weighted-average grant date fair value | $ / shares	$ 96.04
Performance units
Stock-based compensation
Awards granted | shares	171,492

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COMMON EQUITY - COMMON STOCK DIVIDENDS (Details) - $ / shares	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Mar. 31, 2021
Dividends payable
Common stock dividend declared (in dollars per share)		$ 0.7275	$ 0.6775
Subsequent event
Dividends payable
Common stock dividend declared (in dollars per share)	$ 0.7275

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SHORT-TERM DEBT AND LINES OF CREDIT - SHORT-TERM BORROWINGS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Commercial paper
Short-term borrowings
Commercial paper outstanding	$ 1,448.3	$ 1,896.1
Weighted average interest rate on amounts outstanding	0.92%	0.26%
Average amount of commercial paper outstanding during the period	$ 1,663.9
Weighted-average interest rate on amounts outstanding during the period	0.38%
Operating expense loans
Short-term borrowings
Operating expense loan outstanding	$ 1.7	$ 0.9

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SHORT-TERM DEBT AND LINES OF CREDIT - REVOLVING CREDIT FACILITIES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Revolving credit facilities
Short-term credit capacity	$ 3,100.0
Available capacity under existing credit facility	1,649.4
Letter of credit
Revolving credit facilities
Letters of credit issued inside credit facilities	2.3
Commercial paper
Revolving credit facilities
Commercial paper outstanding	1,448.3	$ 1,896.1
WE | Credit facility maturing in September 2026
Revolving credit facilities
Short-term credit capacity	500.0
WPS | Credit facility maturing in September 2026
Revolving credit facilities
Short-term credit capacity	400.0
WG | Credit facility maturing in September 2026
Revolving credit facilities
Short-term credit capacity	350.0
PGL | Credit facility maturing in September 2026
Revolving credit facilities
Short-term credit capacity	350.0
WEC Energy Group | Credit facility maturing in September 2026
Revolving credit facilities
Short-term credit capacity	$ 1,500.0

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MATERIALS, SUPPLIES, AND INVENTORIES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Energy Related Inventory
Materials and supplies	$ 232.2	$ 225.3
Fossil fuel	81.3	84.5
Natural gas in storage	55.3	326.0
Total	368.8	$ 635.8
LIFO Method Related Items
LIFO liquidation balance	$ 130.7

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INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Effective Income Tax Rate Reconciliation, Amount
Statutory federal income tax, amount	$ 145.5	$ 122.8
State income taxes net of federal tax benefit, amount	43.6	36.9
PTCs, amount	(44.8)	(34.0)
Federal excess deferred tax amortization, amount	(15.8)	(14.6)
Federal excess deferred tax amortization - Wisconsin unprotected, amount	(0.3)	(30.3)
Uncertain tax positions, amount	0.0	(8.2)
Other, amount	(1.1)	2.3
Total income tax expense, amount	$ 127.1	$ 74.9
Effective Income Tax Rate Reconciliation, Percent
Statutory federal income tax, percentage	21.00%	21.00%
State income taxes net of federal tax benefit, percentage	6.30%	6.30%
PTCs, percentage	(6.50%)	(5.80%)
Federal excess deferred tax amortization, percentage	(2.30%)	(2.50%)
Federal excess deferred tax amortization - Wisconsin unprotected, percentage	0.00%	(5.20%)
Uncertain tax position, percentage	0.00%	(1.40%)
Other, percentage	(0.20%)	0.40%
Total income tax expense, percent	18.30%	12.80%

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INCOME TAXES - WI 2020 and 2021 RATES (Details) - Tax Cuts and Jobs Act of 2017 - Public Service Commission of Wisconsin (PSCW) - 2020 and 2021 rates	3 Months Ended
	Mar. 31, 2022
Electric rates
Income Taxes [Line Items]
Amortization period	2 years
Natural gas rates
Income Taxes [Line Items]
Amortization period	4 years

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FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Derivative assets	$ 219.1	$ 120.0
Liabilities
Derivative liabilities	1.4	15.1
Fair value measurements on a recurring basis
Assets
Derivative assets	219.1	120.0
Investments held in rabbi trust	59.5	79.6
Fair value measurements on a recurring basis | Level 1
Assets
Derivative assets	176.9	46.4
Investments held in rabbi trust	59.5	79.6
Fair value measurements on a recurring basis | Level 2
Assets
Derivative assets	41.2	71.2
Investments held in rabbi trust	0.0	0.0
Fair value measurements on a recurring basis | Level 3
Assets
Derivative assets	1.0	2.4
Investments held in rabbi trust	0.0	0.0
Fair value measurements on a recurring basis | Natural gas contracts
Assets
Derivative assets	179.9	64.6
Liabilities
Derivative liabilities	1.4	15.1
Fair value measurements on a recurring basis | Natural gas contracts | Level 1
Assets
Derivative assets	176.9	46.4
Liabilities
Derivative liabilities	0.0	8.4
Fair value measurements on a recurring basis | Natural gas contracts | Level 2
Assets
Derivative assets	3.0	18.2
Liabilities
Derivative liabilities	1.4	6.7
Fair value measurements on a recurring basis | Natural gas contracts | Level 3
Assets
Derivative assets	0.0	0.0
Liabilities
Derivative liabilities	0.0	0.0
Fair value measurements on a recurring basis | FTRs
Assets
Derivative assets	1.0	2.4
Fair value measurements on a recurring basis | FTRs | Level 1
Assets
Derivative assets	0.0	0.0
Fair value measurements on a recurring basis | FTRs | Level 2
Assets
Derivative assets	0.0	0.0
Fair value measurements on a recurring basis | FTRs | Level 3
Assets
Derivative assets	1.0	2.4
Fair value measurements on a recurring basis | Coal contracts
Assets
Derivative assets	38.2	53.0
Fair value measurements on a recurring basis | Coal contracts | Level 1
Assets
Derivative assets	0.0	0.0
Fair value measurements on a recurring basis | Coal contracts | Level 2
Assets
Derivative assets	38.2	53.0
Fair value measurements on a recurring basis | Coal contracts | Level 3
Assets
Derivative assets	$ 0.0	$ 0.0

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FAIR VALUE MEASUREMENTS - UNREALIZED GAIN (LOSS) ON INVESTMENTS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Net unrealized losses included in earnings related to investments held at end of period	$ 3.3
Net unrealized gains included in earnings related to investments held at end of period		$ 4.0

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FAIR VALUE MEASUREMENTS - LEVEL 3 RECONCILIATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Level 3 rollforward
Balance at the beginning of the period	$ 2.4	$ 2.4
Purchases	0.0	0.1
Settlements	(1.4)	(1.6)
Balance at the end of the period	$ 1.0	$ 0.9

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FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financial instruments
Preferred stock of subsidiary	$ 30.4	$ 30.4
Carrying amount
Financial instruments
Preferred stock of subsidiary	30.4	30.4
Long-term debt, including current portion	13,549.7	13,563.4
Finance lease obligations	128.0	129.7
Fair value
Financial instruments
Preferred stock of subsidiary	26.6	30.3
Long-term debt, including current portion	$ 13,519.8	$ 14,819.4

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DERIVATIVE INSTRUMENTS - DERIVATIVE ASSETS AND LIABILITIES (Details) $ in Millions	Mar. 31, 2022 USD ($) Instruments	Dec. 31, 2021 USD ($) Instruments
Derivative assets
Current derivative assets	$ 204.3	$ 107.0
Long-term derivative assets	14.8	13.0
Total derivative assets	219.1	120.0
Derivative liabilities
Current derivative liabilities	1.4	14.0
Long-term derivative liabilities	0.0	1.1
Total derivative liabilities	1.4	15.1
Natural gas contracts
Derivative assets
Current derivative assets	169.6	60.6
Long-term derivative assets	10.3	4.0
Derivative liabilities
Current derivative liabilities	1.4	14.0
Long-term derivative liabilities	0.0	1.1
FTRs
Derivative assets
Current derivative assets	1.0	2.4
Derivative liabilities
Current derivative liabilities	0.0	0.0
Coal contracts
Derivative assets
Current derivative assets	33.7	44.0
Long-term derivative assets	4.5	9.0
Derivative liabilities
Current derivative liabilities	0.0	0.0
Long-term derivative liabilities	$ 0.0	$ 0.0
Designated as hedging instrument
Derivative instruments
Number of derivative instruments | Instruments	0	0

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DERIVATIVE INSTRUMENTS - GAINS (LOSSES) AND NOTIONAL VOLUMES (Details) MWh in Millions, MMBTU in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) MMBTU MWh	Mar. 31, 2021 USD ($) MMBTU MWh
Realized gains (losses)
Gains (losses)	$ 32.6	$ (5.4)
Natural gas contracts
Notional sales volumes
Notional sales volumes | MMBTU	59.5	59.8
Realized gains (losses)
Gains (losses)	$ 31.6	$ (7.5)
FTRs
Notional sales volumes
Notional sales volumes | MWh	7.0	8.4
Realized gains (losses)
Gains (losses)	$ 1.0	$ 2.1

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DERIVATIVE INSTRUMENTS - BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash collateral
Cash collateral posted	$ 14.0	$ 13.9
Cash collateral received	146.1	13.2
Offsetting derivative assets
Gross amount recognized on the balance sheet	219.1	120.0
Gross amount not offset on the balance sheet	(139.5)	(15.2)
Net amount	79.6	104.8
Collateral received	139.3	6.4
Offsetting derivative liabilities
Gross amount recognized on the balance sheet	1.4	15.1
Gross amount not offset on the balance sheet	(0.2)	(9.2)
Net amount	$ 1.2	5.9
Collateral posted		$ 0.4

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DERIVATIVE INSTRUMENTS - CASH FLOW HEDGES (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Nov. 15, 2021 USD ($) number_of_interest_rate_swaps
Derivative instruments
Interest expense	$ 117.6	$ 119.5
WEC Energy Group | WEC Energy Group's junior subordinated notes due in 2067
Derivative instruments
Long-term debt outstanding			$ 500.0
WEC Energy Group | Interest rate swaps
Derivative instruments
Number of interest rate swaps | number_of_interest_rate_swaps			2
Interest rate swap notional value			$ 250.0
Interest rate swap fixed interest rate			4.9765%
Net derivative gain (loss) reclassified from accumulated other comprehensive loss to interest expense	0.1	$ (1.4)
Amount to be reclassified from accumulated other comprehensive loss to interest expense	$ 0.4

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GUARANTEES (Details) $ in Millions	Mar. 31, 2022 USD ($)
Guarantees
Total guarantees	$ 104.5
Guarantees expiring in less than 1 year	23.3
Guarantees expiring within 1 to 3 years	0.2
Guarantees with expiration over 3 years	81.0
Standby letters of credit
Guarantees
Total guarantees	82.3
Guarantees expiring in less than 1 year	10.5
Guarantees expiring within 1 to 3 years	0.2
Guarantees with expiration over 3 years	71.6
Surety bonds
Guarantees
Total guarantees	12.8
Guarantees expiring in less than 1 year	12.8
Guarantees expiring within 1 to 3 years	0.0
Guarantees with expiration over 3 years	0.0
Other guarantees
Guarantees
Total guarantees	9.4
Guarantees expiring in less than 1 year	0.0
Guarantees expiring within 1 to 3 years	0.0
Guarantees with expiration over 3 years	$ 9.4

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EMPLOYEE BENEFITS-COSTS AND CONTRIBUTIONS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Components of net periodic benefit cost (credit)
Contributions and payments related to pension and OPEB plans	$ 3.6	$ 4.1
Pension Benefits
Components of net periodic benefit cost (credit)
Service cost	12.4	13.9
Interest cost	22.8	21.9
Expected return on plan assets	(52.7)	(50.6)
Loss on plan settlement	0.0	0.1
Amortization of prior service (credit) cost	0.4	0.4
Amortization of net actuarial (gain) loss	19.1	27.4
Net periodic benefit (credit) cost	2.0	13.1
Contributions and payments related to pension and OPEB plans	3.1
Estimated future employer contributions for the remainder of the year	8.0
Other Postretirement Benefits
Components of net periodic benefit cost (credit)
Service cost	3.8	4.2
Interest cost	3.9	3.6
Expected return on plan assets	(17.2)	(16.4)
Amortization of prior service (credit) cost	(4.0)	(4.0)
Amortization of net actuarial (gain) loss	(6.0)	(5.7)
Net periodic benefit (credit) cost	(19.5)	$ (18.3)
Contributions and payments related to pension and OPEB plans	0.5
Estimated future employer contributions for the remainder of the year	$ 2.1

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GOODWILL AND INTANGIBLES - GOODWILL (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill balance by segment
Changes to the carrying amount of goodwill	$ 0.0
Goodwill	3,052.8
Accumulated impairment losses	0.0
Wisconsin
Goodwill balance by segment
Goodwill	2,104.3
Illinois
Goodwill balance by segment
Goodwill	758.7
Other States
Goodwill balance by segment
Goodwill	183.2
Non-Utility Energy Infrastructure
Goodwill balance by segment
Goodwill	$ 6.6

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GOODWILL AND INTANGIBLES - INDEFINITE LIVED INTANGIBLE ASSETS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Indefinite-lived Intangible Assets
Changes to the carrying amount of indefinite-lived intangible asset	$ 0.0
MGU | Trade name
Indefinite-lived Intangible Assets
Indefinite-lived intangible asset	$ 5.7	$ 5.7

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GOODWILL AND INTANGIBLES - INTANGIBLE LIABILITIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finite-Lived Intangible Liabilities
Amortization	$ 2.2	$ 1.9
Period of amortization	5 years
Amortization to be recorded in operating revenues
Amortization to be recorded in the next five years
2022	$ 8.5
2023	8.4
2024	8.4
2025	8.4
2026	8.4
Amortization to be recorded in other operation and maintenance
Amortization to be recorded in the next five years
2022	0.2
2023	0.2
2024	0.2
2025	0.2
2026	0.2
WECI
Finite-Lived Intangible Liabilities
Gross carrying amount	99.8		$ 99.8
Accumulated amortization	(11.3)		(9.1)
Net carrying amount	88.5		90.7
PPAs | WECI
Finite-Lived Intangible Liabilities
Gross carrying amount	87.9		87.9
Accumulated amortization	(8.5)		(6.5)
Net carrying amount	$ 79.4		81.4
PPAs | Blooming Grove , Tatanka Ridge, and Jayhawk
Finite-Lived Intangible Liabilities
Weighted average life	10 years
Proxy revenue swap | WECI
Finite-Lived Intangible Liabilities
Gross carrying amount	$ 7.2		7.2
Accumulated amortization	(2.2)		(2.1)
Net carrying amount	$ 5.0		5.1
Proxy revenue swap | Upstream
Finite-Lived Intangible Liabilities
Weighted average life	7 years
Length of proxy revenue contract, in years	10 years
Interconnection agreements | WECI
Finite-Lived Intangible Liabilities
Gross carrying amount	$ 4.7		4.7
Accumulated amortization	(0.6)		(0.5)
Net carrying amount	$ 4.1		$ 4.2
Interconnection agreements | Tatanka Ridge and Bishop Hill III
Finite-Lived Intangible Liabilities
Weighted average life	19 years

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INVESTMENT IN TRANSMISSION AFFILIATES - CHANGES TO INVESTMENTS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Changes to investments in transmission affiliates
Add: Earnings from equity method investment	$ 41.7	$ 42.6
Add: Capital contributions	21.1	0.0
Transmission Affiliates
Changes to investments in transmission affiliates
Investment in transmission affiliates, balance at beginning of period	1,789.4	1,764.3
Add: Earnings from equity method investment	41.7	42.6
Add: Capital contributions	21.1
Less: Distributions	34.0	33.4
Add: Other		(0.1)
Investment in transmission affiliates, balance at end of period	$ 1,818.2	1,773.6
ATC
Investment in transmission affiliates
Equity method investment, ownership interest (as a percent)	60.00%
Changes to investments in transmission affiliates
Investment in transmission affiliates, balance at beginning of period	$ 1,766.9	1,733.5
Add: Earnings from equity method investment	41.0	41.7
Add: Capital contributions	21.1
Less: Distributions	34.0	33.4
Add: Other		(0.1)
Investment in transmission affiliates, balance at end of period	$ 1,795.0	1,741.9
ATC Holdco
Investment in transmission affiliates
Equity method investment, ownership interest (as a percent)	75.00%
Changes to investments in transmission affiliates
Investment in transmission affiliates, balance at beginning of period	$ 22.5	30.8
Add: Earnings from equity method investment	0.7	0.9
Add: Capital contributions	0.0
Less: Distributions	0.0	0.0
Add: Other		0.0
Investment in transmission affiliates, balance at end of period	$ 23.2	$ 31.7

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INVESTMENT IN TRANSMISSION AFFILIATES - RELATED PARTY TRANSACTIONS (Details) - ATC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investment in transmission affiliates
Charges to ATC for services and construction	$ 6.2	$ 6.0
Charges from ATC for network transmission services	$ 91.1	$ 92.6

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INVESTMENT IN TRANSMISSION AFFILIATES - RECEIVABLES AND PAYABLES (Details) - ATC - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Investment in transmission affiliates
Accounts receivable for services provided to ATC	$ 2.3	$ 2.0
Accounts payable for services received from ATC	30.5	30.2
Amounts due from ATC for transmission infrastructure upgrades	$ 15.1	$ 13.0

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INVESTMENT IN TRANSMISSION AFFILIATES - SUMMARIZED FINANCIAL DATA (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Summarized financial data
Operating revenues	$ 2,908.1	$ 2,691.4
Operating expenses	2,176.7	2,062.1
Other expense, net	36.3	44.1
Current assets	2,562.6		$ 2,656.7
Noncurrent assets	36,411.9		36,331.8
Total assets	38,974.5		38,988.5
Current liabilities	3,264.4		3,753.0
Other noncurrent liabilities	1,173.0		1,203.2
Total liabilities and members' equity	38,974.5		38,988.5
ATC
Summarized financial data
Operating revenues	191.0	188.7
Operating expenses	95.5	95.1
Other expense, net	28.0	28.5
Net income	67.5	$ 65.1
Current assets	95.5		89.8
Noncurrent assets	5,706.8		5,628.1
Total assets	5,802.3		5,717.9
Current liabilities	421.0		436.9
Long-term debt	2,562.3		2,513.0
Other noncurrent liabilities	424.7		422.0
Members' equity	2,394.3		2,346.0
Total liabilities and members' equity	$ 5,802.3		$ 5,717.9

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SEGMENT INFORMATION (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Segment information
Number of reportable segments | segment	6
Total operating revenues	$ 2,908.1	$ 2,691.4
Other operation and maintenance	454.4	479.9
Depreciation and amortization	278.1	261.4
Equity in earnings of transmission affiliates	41.7	42.6
Interest expense	117.6	119.5
Income tax expense (benefit)	127.1	74.9
Net income	568.0	510.3
Net income attributed to common shareholders	565.9	510.1
External Revenues
Segment information
Total operating revenues	2,908.1	2,691.4
Intersegment Revenues
Segment information
Total operating revenues	0.0	0.0
Utility Operations
Segment information
Other operation and maintenance	450.8	474.4
Depreciation and amortization	253.9	238.1
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	157.3	158.1
Income tax expense (benefit)	147.9	97.9
Net income	433.3	393.4
Net income attributed to common shareholders	433.0	393.1
Utility Operations | External Revenues
Segment information
Total operating revenues	2,865.3	2,668.4
Utility Operations | Intersegment Revenues
Segment information
Total operating revenues	0.0	0.0
Reconciling Eliminations
Segment information
Other operation and maintenance	(1.6)	(1.6)
Depreciation and amortization	(16.3)	(14.3)
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	(84.4)	(85.7)
Income tax expense (benefit)	0.0	0.0
Net income	0.0	0.0
Net income attributed to common shareholders	0.0	0.0
Reconciling Eliminations | External Revenues
Segment information
Total operating revenues	0.0	0.0
Reconciling Eliminations | Intersegment Revenues
Segment information
Total operating revenues	$ (116.9)	(114.7)
ATC Holdco
Segment information
Equity method investment, ownership interest (as a percent)	75.00%
Equity in earnings of transmission affiliates	$ 0.7	0.9
Wisconsin
Segment information
Total operating revenues	1,942.3	1,731.7
Wisconsin | Utility Operations
Segment information
Other operation and maintenance	312.6	341.9
Depreciation and amortization	187.1	176.2
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	136.3	140.1
Income tax expense (benefit)	95.4	48.1
Net income	288.4	256.6
Net income attributed to common shareholders	288.1	256.3
Wisconsin | Utility Operations | External Revenues
Segment information
Total operating revenues	1,942.3	1,731.7
Wisconsin | Utility Operations | Intersegment Revenues
Segment information
Total operating revenues	0.0	0.0
Illinois
Segment information
Total operating revenues	682.1	703.4
Illinois | Utility Operations
Segment information
Other operation and maintenance	113.6	109.3
Depreciation and amortization	56.8	52.7
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	17.7	16.5
Income tax expense (benefit)	42.1	41.4
Net income	113.4	112.1
Net income attributed to common shareholders	113.4	112.1
Illinois | Utility Operations | External Revenues
Segment information
Total operating revenues	682.1	703.4
Illinois | Utility Operations | Intersegment Revenues
Segment information
Total operating revenues	0.0	0.0
Other States
Segment information
Total operating revenues	240.9	233.3
Other States | Utility Operations
Segment information
Other operation and maintenance	24.6	23.2
Depreciation and amortization	10.0	9.2
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	3.3	1.5
Income tax expense (benefit)	10.4	8.4
Net income	31.5	24.7
Net income attributed to common shareholders	31.5	24.7
Other States | Utility Operations | External Revenues
Segment information
Total operating revenues	240.9	233.3
Other States | Utility Operations | Intersegment Revenues
Segment information
Total operating revenues	0.0	0.0
Electric Transmission
Segment information
Other operation and maintenance	0.0	0.0
Depreciation and amortization	0.0	0.0
Equity in earnings of transmission affiliates	41.7	42.6
Interest expense	4.9	4.9
Income tax expense (benefit)	8.9	9.8
Net income	27.8	28.0
Net income attributed to common shareholders	27.8	28.0
Electric Transmission | External Revenues
Segment information
Total operating revenues	0.0	0.0
Electric Transmission | Intersegment Revenues
Segment information
Total operating revenues	$ 0.0	0.0
Electric Transmission | ATC
Segment information
Equity method investment, ownership interest (as a percent)	60.00%
Electric Transmission | ATC Holdco
Segment information
Equity method investment, ownership interest (as a percent)	75.00%
Non-Utility Energy Infrastructure
Segment information
Natural gas storage needs provided to Wisconsin utilities	33.00%
Total operating revenues	$ 159.5	137.6
Other operation and maintenance	10.9	8.9
Depreciation and amortization	34.0	31.0
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	17.2	18.0
Income tax expense (benefit)	(4.9)	0.1
Net income	93.3	71.3
Net income attributed to common shareholders	91.5	71.4
Non-Utility Energy Infrastructure | External Revenues
Segment information
Total operating revenues	42.6	22.9
Non-Utility Energy Infrastructure | Intersegment Revenues
Segment information
Total operating revenues	$ 116.9	114.7
Non-Utility Energy Infrastructure | Bishop Hill III
Segment information
WEC's ownership interest	90.00%
Non-Utility Energy Infrastructure | Coyote Ridge
Segment information
WEC's ownership interest	80.00%
Non-Utility Energy Infrastructure | Upstream
Segment information
WEC's ownership interest	90.00%
Non-Utility Energy Infrastructure | Blooming Grove
Segment information
WEC's ownership interest	90.00%
Non-Utility Energy Infrastructure | Tatanka Ridge
Segment information
WEC's ownership interest	85.00%
Non-Utility Energy Infrastructure | Jayhawk
Segment information
WEC's ownership interest	90.00%
Corporate and Other
Segment information
Total operating revenues	$ 0.2	0.1
Other operation and maintenance	(5.7)	(1.8)
Depreciation and amortization	6.5	6.6
Equity in earnings of transmission affiliates	0.0	0.0
Interest expense	22.6	24.2
Income tax expense (benefit)	(24.8)	(32.9)
Net income	13.6	17.6
Net income attributed to common shareholders	13.6	17.6
Corporate and Other | External Revenues
Segment information
Total operating revenues	0.2	0.1
Corporate and Other | Intersegment Revenues
Segment information
Total operating revenues	$ 0.0	$ 0.0

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VARIABLE INTEREST ENTITIES - WEPCO ENVIRONMENTAL TRUST (Details) - USD ($) $ in Millions	1 Months Ended
	Nov. 30, 2020	Mar. 31, 2022	Dec. 31, 2021
Assets
Other current assets (restricted cash)		$ 31.8	$ 19.6
Regulatory assets		3,163.6	3,264.8
Other long-term assets (restricted cash)		54.0	51.6
Liabilities
Accounts payable		693.7	1,005.7
WEPCo Environmental Trust
Variable interest entities
Securitization of environmental control costs related to Pleasant Prairie power plant	$ 100.0
Assets
Other current assets (restricted cash)		5.6	2.4
Regulatory assets		98.2	100.7
Other long-term assets (restricted cash)		0.6	0.6
Liabilities
Current portion of long-term debt		8.8	8.8
Accounts payable		0.1	0.0
Other current liabilities (accrued interest)		0.5	0.1
Long-term debt		$ 102.8	$ 102.7

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VARIABLE INTEREST ENTITIES - TRANSMISSION AFFILIATES (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
ATC
Variable interest entities
Ownership interest (as a percent)	60.00%
Equity investment	$ 1,795.0	$ 1,766.9
ATC Holdco
Variable interest entities
Ownership interest (as a percent)	75.00%
Equity investment	$ 23.2	$ 22.5

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VARIABLE INTEREST ENTITIES - POWER PURCHASE COMMITMENT (Details) - Power purchase agreement $ in Millions	1 Months Ended
	Nov. 30, 2021 USD ($)	Mar. 31, 2022 USD ($) MW
Variable interest entities
Firm capacity from power purchase agreement (in megawatts) | MW		236.5
Minimum energy requirements over remaining term of power purchase agreement (in megawatts) | MW		0
Residual guarantee associated with power purchase agreement		$ 0.0
Maximum exposure to loss from power purchase agreement		$ 3.9
Whitewater cogeneration facility
Variable interest entities
Acquisition purchase price, expected	$ 72.7

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COMMITMENTS AND CONTINGENCIES - UNCONDITIONAL PURCHASE OBLIGATIONS (Details) $ in Billions	Mar. 31, 2022 USD ($)
Minimum future commitments for purchase obligations
Purchase obligations	$ 10.5

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COMMITMENTS AND CONTINGENCIES - ENVIRONMENTAL MATTERS (Details) T in Millions, $ in Millions	1 Months Ended				3 Months Ended	12 Months Ended		15 Months Ended
	Mar. 31, 2022 USD ($) micrograms MW	Jun. 30, 2021 area	Dec. 31, 2020 USD ($) micrograms performance_obligations	Jun. 30, 2020 generating_units	Mar. 31, 2022 USD ($) States MW	Dec. 31, 2021 USD ($) T	Dec. 31, 2020 USD ($) performance_obligations	Mar. 31, 2019 MW	Oct. 31, 2021 performance_obligations
Manufactured gas plant remediation
Regulatory assets | $	$ 3,255.6				$ 3,255.6	$ 3,367.1
Environmental remediation costs
Manufactured gas plant remediation
Regulatory assets | $	$ 618.8				$ 618.8	$ 630.9
Cross State Air Pollution Rule - Good Neighbor Plan | Electric
Air quality
Number of states the EPA is proposing to update and expand cross state air pollution rules to regulate NOx emissions in | States					25
Cross State Air Pollution Rule - Good Neighbor Plan | Electric | Maximum
Air quality
RICE unit megawatts | MW	25				25
Cross State Air Pollution Rule - Good Neighbor Plan | Electric | Minimum
Air quality
RICE unit megawatts | MW	15				15
National Ambient Air Quality Standards | Electric
Air quality
Number of changes to the 2015 ozone standards | performance_obligations									0
Number of counties to have boundaries revised | area		13
Number of nonattainment areas as designated by the EPA | area		6
Number of revisions necessary to meet the 2012 standard for particulate matter | performance_obligations			0
Current number of micrograms per cubic meter that particulate matter needs to be below			12
Lowest limit that will cause non-attainment	10
National Ambient Air Quality Standards | Electric | Maximum
Air quality
Majority of CASAC members support this range in the peer review they completed	10
Minority of CASAC members support this range in the peer review they completed	11
National Ambient Air Quality Standards | Electric | Minimum
Air quality
Majority of CASAC members support this range in the peer review they completed	8
Minority of CASAC members support this range in the peer review they completed	10
Climate Change | Electric
Air quality
Capacity of coal-fired generation retired, in megawatts | MW								1,800
Capacity of fossil-fueled generation to be retired by the end of 2025, in megawatts | MW					1,600
Company goal for percentage of carbon emissions reduction below 2005 levels by the end of 2025					60.00%
Company goal for percentage of carbon emissions reduction below 2005 levels by the end of 2030					80.00%
Carbon dioxide emissions | T						22.0
Climate Change | Natural gas
Air quality
Carbon dioxide emissions | T						26.0
Clean Water Act Cooling Water Intake Structure Rule | Electric
Water quality
Number of generating units to be retired | generating_units				4
Steam Electric Effluent Limitation Guidelines | Electric
Water quality
Number of new ELG rule requirements that affect our electric utilities | performance_obligations							2
Additional capital investment to achieve required discharge limits | $			$ 100.0				$ 100.0
Manufactured Gas Plant Remediation | Natural gas
Manufactured gas plant remediation
Reserves for future environmental remediation | $	$ 517.2				$ 517.2	$ 532.6
Manufactured Gas Plant Remediation | Natural gas | Environmental remediation costs
Manufactured gas plant remediation
Regulatory assets | $	$ 618.8				$ 618.8	$ 630.9

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SUPPLEMENTAL CASH FLOW INFORMATION - SUPPLEMENTAL INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental cash flow information
Cash paid for interest, net of amount capitalized	$ 68.3	$ 76.8
Cash paid (received) for income taxes, net	0.7	(2.5)
Significant non-cash investing and financing transactions:
Accounts payable related to construction costs	118.7	97.8
Increase in receivable related to insurance proceeds	$ 0.3	$ 2.7

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SUPPLEMENTAL CASH FLOW INFORMATION - RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 33.8	$ 16.3
Restricted cash included in other current assets	31.8	19.6
Restricted cash included in other long term assets	54.0	51.6
Cash, cash equivalents, and restricted cash	$ 119.6	$ 87.5	$ 89.6	$ 72.6

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REGULATORY ENVIRONMENT - RECOVERY OF NATURAL GAS COSTS (Details) $ in Millions	1 Months Ended
	Aug. 31, 2021 USD ($) utility	Mar. 31, 2021 USD ($)	Feb. 28, 2021 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers				$ 92.0	$ 102.3
Total regulatory assets				3,255.6	3,367.1
Regulatory assets				3,163.6	3,264.8
Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Total regulatory assets				70.1	85.4
MERC extraordinary natural gas costs
Public Utilities, General Disclosures [Line Items]
Total regulatory assets				$ 51.6	$ 59.7
WE | Public Service Commission of Wisconsin (PSCW) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers		$ 54.0
Recovery period of regulatory asset		3 months
WG | Public Service Commission of Wisconsin (PSCW) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers		$ 24.0
Recovery period of regulatory asset		3 months
WPS | Public Service Commission of Wisconsin (PSCW) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers		$ 28.0
Recovery period of regulatory asset		3 months
PGL | Illinois Commerce Commission (ICC) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers			$ 131.0
Recovery period of regulatory asset			12 months
NSG | Illinois Commerce Commission (ICC) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers			$ 10.0
Recovery period of regulatory asset			12 months
MERC | Minnesota Public Utilities Commission (MPUC)
Public Utilities, General Disclosures [Line Items]
Number of utilities filing a joint proposal | utility	4
MERC | Minnesota Public Utilities Commission (MPUC) | Energy costs recoverable through rate adjustments
Public Utilities, General Disclosures [Line Items]
Amounts recoverable from customers	$ 10.0
Recovery period of regulatory asset	12 months
Total regulatory assets			$ 75.0
MERC | Minnesota Public Utilities Commission (MPUC) | MERC extraordinary natural gas costs
Public Utilities, General Disclosures [Line Items]
Recovery period of regulatory asset	27 months
Regulatory assets	$ 65.0

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REGULATORY ENVIRONMENT - WI 2023 AND 2024 RATES (Details) - Public Service Commission of Wisconsin (PSCW) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2022	Mar. 31, 2022
Subsequent event
Public Utilities, Rate Matters, Requested
Percentage of first 25 basis points of additional earnings retained by the utility	100.00%
Return on equity in excess of authorized amount (as a percent)	0.25%
Percentage of additional earnings between 25 and 75 basis points refunded to customers	50.00%
Return on equity in excess of first 25 basis points above authorized amount (as a percent)	0.50%
Percentage of earnings in excess of 75 basis points refunded to customers	100.00%
WE
Public Utilities, Rate Matters, Approved
Approved common equity component average (as a percent)		52.50%
WE | Subsequent event
Public Utilities, Rate Matters, Requested
Requested return on equity (as a percent)	10.00%
Requested common equity component average (as a percent)	53.00%
WE | Electric rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 260.5
Requested rate increase (as a percent)	8.40%
WE | Natural gas rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 50.7
Requested rate increase (as a percent)	10.70%
WE | Steam rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 3.3
Requested rate increase (as a percent)	15.50%
WPS
Public Utilities, Rate Matters, Approved
Approved common equity component average (as a percent)		52.50%
WPS | Subsequent event
Public Utilities, Rate Matters, Requested
Requested return on equity (as a percent)	10.00%
Requested common equity component average (as a percent)	53.00%
WPS | Electric rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 73.9
Requested rate increase (as a percent)	6.20%
WPS | Natural gas rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 30.3
Requested rate increase (as a percent)	8.30%
WG
Public Utilities, Rate Matters, Approved
Approved common equity component average (as a percent)		52.50%
WG | Subsequent event
Public Utilities, Rate Matters, Requested
Requested return on equity (as a percent)	10.20%
Requested common equity component average (as a percent)	53.00%
WG | Natural gas rates | Subsequent event
Public Utilities, Rate Matters, Requested
Requested rate increase	$ 60.1
Requested rate increase (as a percent)	8.30%

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REGULATORY ENVIRONMENT - PGL QIP Rider (Details)	Mar. 31, 2022 Assurance
Illinois Commerce Commission (ICC) | PGL
Public Utilities, General Disclosures [Line Items]
Amount of assurance that PGL's QIP rider costs will be recoverable	0