Long-Term Debt

12 Months Ended

Dec. 31, 2022

The following table is a summary of our long-term debt outstanding (excluding finance leases) as of December 31:


	2022					2021
(in millions)	Maturity Date	Weighted Average Interest Rate		Balance		Weighted Average Interest Rate		Balance
WEC Energy Group Senior Notes (unsecured) (1)	2023-2033	2.44	%	$	3,970.0	1.67	%	$	3,070.0
WEC Energy Group Junior Notes (unsecured) (1) (2)	2067	6.72	%	500.0		2.27	%	500.0
WE Debentures (unsecured)	2024-2095	4.22	%	3,285.0		4.13	%	2,785.0
WEPCo Environmental Trust (secured, nonrecourse) (6) (10)	2023-2035	1.58	%	105.9		1.58	%	114.7
WPS Senior Notes (unsecured)	2025-2051	4.11	%	1,975.0		3.89	%	1,675.0
WG Debentures (unsecured)	2024-2046	3.35	%	790.0		3.35	%	790.0
Integrys Junior Notes (unsecured) (3)	2073	6.00	%	221.4		6.00	%	221.4
PGL First and Refunding Mortgage Bonds (secured) (4)	2024-2047	3.41	%	1,970.0		3.31	%	1,870.0
NSG First Mortgage Bonds (secured) (5)	2027-2043	3.56	%	157.0		3.56	%	157.0
MERC Senior Notes (unsecured)	2025-2047	3.04	%	210.0		3.04	%	210.0
MGU Senior Notes (unsecured)	2025-2047	3.18	%	150.0		3.18	%	150.0
UMERC Senior Notes (unsecured)	2029	3.26	%	160.0		3.26	%	160.0
Bluewater Gas Storage Senior Notes (unsecured) (6)	2023-2047	3.76	%	112.6		3.76	%	115.2
ATC Holding Senior Notes (unsecured)	2025-2030	4.05	%	475.0		4.05	%	475.0
We Power Subsidiaries Notes (secured, nonrecourse) (6) (7)	2023-2041	5.62	%	896.5		5.60	%	934.7
WECC Notes (unsecured)	2028	6.94	%	50.0		6.94	%	50.0
WECI Wind Holding I Senior Notes (secured, nonrecourse) (6) (8)	2023-2032	2.75	%	332.1		2.75	%	374.6
WECI Wind Holding II Senior Notes (secured, nonrecourse) (6) (9)	2023 - 2031	6.38	%	199.3		—	%	—
Total				15,559.8				13,652.6
Integrys acquisition fair value adjustment				1.2				2.9
Jayhawk acquisition				7.3				7.3
Unamortized debt issuance costs				(81.8)				(77.7)
Unamortized discount, net and other				(22.3)				(21.7)
Total long-term debt, including current portion (11)				15,464.2				13,563.4
Current portion of long-term debt				(808.5)				(91.0)
Total long-term debt				$	14,655.7			$	13,472.4

(1) In connection with our outstanding 2007 Junior Notes, we executed an RCC, which we amended on June 29, 2015, for the benefit of persons that buy, hold, or sell a specified series of our long-term indebtedness (covered debt). Our 6.20% Senior Notes due April 1, 2033 have been designated as the covered debt under the RCC. The RCC provides that we may not redeem, defease, or purchase, and that our subsidiaries may not purchase, any 2007 Junior Notes on or before May 15, 2037, unless, subject to certain limitations described in the RCC, we have received a specified amount of proceeds from the sale of qualifying securities.

(2) Variable interest rate reset quarterly. The rates were 6.72% and 2.27% as of December 31, 2022 and 2021, respectively. Until their expiration on November 15, 2021, we had two interest rate swaps with a combined notional value of $250.0 million. The swaps provided a fixed interest rate of 4.9765% on $250.0 million of the outstanding notes. See Note 18, Derivative Instruments, for more information on the two interest rate swaps.

(3) The terms of Integrys's 2013 6.00% Junior Notes, due August 1, 2073, provide that, effective August 2023, they will bear interest at a variable rate, which we expect to based off of SOFR, and will reset quarterly.

(4) PGL's First Mortgage Bonds are subject to the terms and conditions of PGL's First Mortgage Indenture dated January 2, 1926, as supplemented. Under the terms of the Indenture, substantially all property owned by PGL is pledged as collateral for these outstanding debt securities.

PGL has used certain First Mortgage Bonds to secure tax exempt interest rates. The Illinois Finance Authority has issued Tax Exempt Bonds, and the proceeds from the sale of these bonds were loaned to PGL. In return, PGL issued $100 million of collateralized First Mortgage Bonds.

(5) NSG's First Mortgage Bonds are subject to the terms and conditions of NSG's First Mortgage Indenture dated April 1, 1955, as supplemented. Under the terms of the Indenture, substantially all property owned by NSG is pledged as collateral for these outstanding debt securities.

(6) The long-term debt of Bluewater, WECI Wind Holding I, WECI Wind Holding II, WEPCo Environmental Trust, and We Power's subsidiaries requires periodic principal payments.

(7) We Power's subsidiaries' senior notes are secured by a collateral assignment of the leases between We Power's subsidiaries and WE related to PWGS and ERGS, as applicable.

(8) WECI Wind Holding I's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries as well as a pledge of equity in WECI Wind Holding I.

(9) WECI Wind Holding II's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries as well as a pledge of equity in WECI Wind Holding II.

(10) WEPCo Environmental Trust’s ETBs are secured by a pledge of and lien on environmental control property, which includes the right to impose, collect and receive a non-bypassable environmental control charge paid by all of WE's retail electric distribution customers, the right to obtain true-up adjustments of the environmental control charges, and all revenues or other proceeds arising from those rights and interests. See Note 23, Variable Interest Entities, for more information.

(11) The amount of long-term debt on our balance sheets includes finance lease obligations of $183.2 million and $129.7 million at December 31, 2022 and 2021, respectively.

We amortize debt premiums, discounts, and debt issuance costs over the life of the debt and we include the costs in interest expense.

WEC Energy Group, Inc.

In September 2022, we issued $500.0 million of 5.00% Senior Notes due September 27, 2025, and $400.0 million of 5.15% Senior Notes due October 1, 2027, and used the net proceeds to repay short-term debt and for other corporate purposes.

In January 2023, we issued $650.0 million of 4.75% Senior Notes due January 9, 2026, and $450.0 million of 4.75% Senior Notes due January 15, 2028, and used the net proceeds to repay short-term debt and for other corporate purposes.

Wisconsin Electric Power Company

In September 2022, WE issued $500.0 million of 4.75% Debentures due September 30, 2032, and intends to allocate an amount equal to the net proceeds for the construction and development of eligible green expenditures, which include existing and new expenditures for the acquisition, construction and development of wind and solar electric generating facilities and related energy storage assets.

Wisconsin Public Service Corporation

In November 2022, WPS issued $300.0 million of 5.35% Senior Notes due November 10, 2025, and used the net proceeds to repay short-term debt and for other corporate purposes.

The Peoples Gas Light and Coke Company

In December 2022, PGL issued $100.0 million of 5.23% Bonds, Series MMM due December 1, 2027, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt.

WEC Infrastructure Wind Holding II LLC

In December 2022, WECI Wind Holding II issued $199.3 million of 6.38% Senior Notes due December 31, 2031, and used the net proceeds to return a portion of WECI's previously invested capital in the subsidiaries of WECI Wind Holding II.

Maturities of Long-Term Debt Outstanding

The following table shows the long-term debt securities (excluding finance leases) maturing within one year of December 31, 2022:


(in millions)	Interest Rate	Maturity Date (1)	Principal Amount
WEC Energy Group Senior Notes (unsecured)	0.55%	September	$	700.0
WEPCo Environmental Trust (secured, nonrecourse)	1.58%	Semi-annually	8.9
Bluewater Gas Storage Senior Notes (unsecured)	3.76%	Semi-annually	2.8
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	4.91%	Monthly	7.6
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	5.209%	Semi-annually	14.7
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	4.673%	Semi-annually	11.1
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	6.00%	Monthly	6.6
WECI Wind Holding I Senior Notes (secured, nonrecourse)	2.75%	Semi-annually	42.0
WECI Wind Holding II Senior Notes (secured, nonrecourse)	6.38%	Semi-annually	14.8
Total			$	808.5

(1) Maturity dates listed as semi-annually and monthly are associated with debt that requires periodic principal payments.

The following table shows the future maturities of our long-term debt outstanding (excluding obligations under finance leases) as of December 31, 2022:


(in millions)	Payments
2023	$	808.5
2024	1,239.6
2025	1,685.5
2026	126.8
2027	1,230.7
Thereafter	10,468.7
Total	$	15,559.8

Certain long-term debt obligations contain financial and other covenants related to payment of principal and interest when due, maintaining certain total funded debt to capitalization ratios, and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.