Research · Sep 3, 2026
[WEC] WEC Energy Group Thesis 2026: $28B Capex Plan Tests Wisconsin Renewable Transition
WEC Energy Group, Inc. (NYSE: WEC) FY2025 revenue ~$9-9.5B (+5-8%) with adj. EPS ~$4.85-5.40 reflecting continued $28B+ FY2025-2029 capex plan deployment (~$10B Wisconsin renewable transition + ~$8B grid modernization + ~$5B Peoples Gas Chicago safety modernization + ~$3-4B Wisconsin natural gas + ~$2B Minnesota + Michigan) + selected post-2024 Wisconsin Energy Mix transition (~50%+ renewable by 2030 PSCW target) + selected ~22-year continuous dividend track post-2003 dividend initiation under continued CEO Scott Lauber (~3-year tenure since May 2022). Leading Wisconsin + Illinois + Minnesota + Michigan regulated utility focused on We Energies Wisconsin electric + natural gas + Peoples Gas Chicago natural gas + Minnesota + Michigan + WEC Infrastructure capital investments. Founded 1896 as Wisconsin Electric Power Company in Milwaukee Wisconsin (~129-year heritage; selected initial focus on selected Milwaukee municipal electric utility); selected current WEC Energy Group formed June 29, 2015 via merger of Wisconsin Energy Corporation + Integrys Energy Group (~$9.1B aggregate transaction). Headquartered in Milwaukee Wisconsin; ~7,300+ employees globally with ~$9-9.5B revenue. Four reporting segments: Wisconsin (We Energies) ~50% revenue ($4.7B — Wisconsin Electric Power + Wisconsin Gas; ~1.6M+ Wisconsin electric customers + ~1.5M+ Wisconsin natural gas customers), Illinois (Peoples Gas) ~20% ($1.8B — Peoples Gas Light & Coke Company + North Shore Gas; ~870K+ Chicago + Northern Illinois natural gas customers post-2015 Integrys merger), Minnesota (Minnesota Energy Resources) + Michigan ~5% ($0.5B — Minnesota natural gas + Michigan Gas Utilities), WEC Infrastructure (capital investments + selected non-utility) ~25% ($2.3B — renewable capital investments + non-utility holdings). $28B+ FY2025-2029 capex plan: ~$10B Wisconsin renewable transition (solar + wind + storage; post-2024 IRA Section 45 PTC + 48 ITC eligibility) + ~$8B grid modernization (smart grid + reliability) + ~$5B Peoples Gas Chicago safety modernization (post-2018 Illinois Commerce Commission accelerated pipe replacement program) + ~$3-4B Wisconsin natural gas + ~$2B Minnesota + Michigan; rate base growth ~7-8% CAGR through FY2029. Wisconsin renewable transition: We Energies ~$4.7B (~50%); ~1.6M+ Wisconsin electric + ~1.5M+ natural gas customers; post-2024 Wisconsin Energy Mix transition (~50%+ renewable by 2030); coal retirements (Oak Creek + Pleasant Prairie). CEO Scott Lauber since May 2022 (succeeded Gale Klappa CEO 2018-2022 retired second time; Lauber ex-WEC CFO 2018-2022 + ~25-year career; Wisconsin native). Capital return: ~$3.36-3.52 annual dividend FY2025 (~22+ year continuous track post-2003 dividend initiation); modest buybacks; investment-grade A3/A- credit ratings; FCF -$1-1.5B (post-capex investment). FY2026 thesis: capex deployment continued + Wisconsin renewable build-out + ~23-year dividend track + Peoples Gas rate case approvals. Risks: PSCW + ICC disallowance, major capital project cost overruns, interest rate severe, Peoples Gas Chicago pipeline incidents.