WEC Energy Group, Inc. Q2 FY2025 earnings call

• Earnings for Q2 2025 were $0.76 per share, on track with 2025 guidance of $5.17 to $5.27 assuming normal weather. - Strong economic development in Wisconsin, e.g., Yaskawa moving U.S. HQ to Wisconsin, Microsoft data center progress, Vantage Data Centers project. - Capital plan: $28 billion 5-year investment plan, including construction of natural gas generation/storage, RICE generation, LNG storage. Extended Oak Creek coal units through 2026. Paris Solar-Battery Park's battery portion came online. - Regulatory: No active rate cases; VLC tariff in Wisconsin under review, expected commission decision by Q2 next year; Chicago pipe replacement program ongoing.

Utility operations earnings were $0.16 higher vs second quarter of 2024. Weather positively impacted quarter-over-quarter earnings by ~$0.04. Rate-based growth contributed $0.12 more. Timing of fuel expense, tax and other items added another $0.07, partially offset by $0.05 from higher depreciation/amortization and $0.02 from higher O&M. American Transmission Company's capital investment growth contributed an incremental $0.01 to Q2 earnings. Energy Infrastructure segment earnings decreased $0.03 vs second quarter of 2024. Corporate and other segment earnings decreased $0.03 driven by higher interest expense.

• Reaffirmed 2025 earnings guidance of $5.17 to $5.27 per share assuming normal weather. - Reaffirmed long-term EPS CAGR of 6.5% to 7%. - Third quarter expected range: $0.74 to $0.80 per share, accounting for July weather and assuming normal weather for rest of quarter.

• Uncertainties with Treasury Department guidance on renewable projects under the One Big Beautiful Bill Act. - Potential impact of regulatory changes on capital plan and project execution. - Supply chain issues and lead times for new build assets affecting ability to meet demand.

Q: Talk about 3.5 gigs of demand from Vantage and how to procure generation, system capacity, and supplementing demand.

A: Actively working with large customers, including Vantage, on purchase cancellation agreements and various items to meet demand. System is tight, extended coal units, and generation planning team working with large customers.

Q: CapEx update, CAGR, and large load tariff docket.

A: Refreshing capital plan in fall, large load tariff settled with large customers, commission reviewing processes.

Q: CapEx opportunities on Peoples Gas PRP and ATC upside CapEx.

A: Peoples Gas has ~1,100 miles of older pipe to retire, ramping up to ~$500 million run rate; ATC capital plan may increase due to economic development and Tranche 2.

Q: Load growth assessment including Vantage and other economic developments.

A: Vantage to be factored into 5-year plan, various industries and residential growth factored into load forecast.

Q: Supply side, coal shutdowns, and new build.

A: Planning combined cycle, coal units extended but can't be extended much longer, no significant CapEx for extending them.

Q: Q2 storm damage, safe harbor for renewables, and Oak Creek coal units extension.

A: Storm damage accounting entry, 40%-50% of renewables safe harbored, extending Oak Creek coal units due to stronger near-term demand and MISO prices, no significant additional CapEx.

Q: Microsoft data center ramp-up and Vantage site.

A: Microsoft data center site active, Vantage site early in development, working with them to meet demand.

Q: Microsoft data center sites construction and pause.

A: Other Microsoft sites not seeing construction yet, activity happening on the main site, no talk of pause from Microsoft.