Wisconsin Electric Power Company

What they do

The company generates and distributes electric energy to customers in southeastern Wisconsin (including metropolitan Milwaukee), east central Wisconsin, and northern Wisconsin. It also operates a steam utility that generates, distributes, and sells steam supplied by the VAPP to customers in metropolitan Milwaukee. It buys and sells electric power through the MISO Energy Markets and provides wholesale service to electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers.

Revenue drivers

• Retail electric sales — Retail revenues accounted for 92.6% of total electric operating revenues in 2025; the company served 1,061.1 thousand residential electric customers and 121.3 thousand small commercial and industrial customers at year-end 2025.
• Resale electric sales — Resale revenues accounted for 5.3% of total electric operating revenues in 2025, with the majority conducted within the MISO energy market at market rates; retail fuel costs are reduced by the amount revenue exceeds the cost of these opportunity sales.
• Wholesale electric sales — Wholesale revenues accounted for 1.2% of total electric operating revenues in 2025, provided to electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and energy marketers.
• Steam sales — The steam utility generates, distributes, and sells steam supplied by the VAPP to customers in metropolitan Milwaukee for processing, space heating, domestic hot water, and humidification; annual sales fluctuate with system growth and weather.

Recent performance

Annual revenue rose to $4.49B in 2025 from $3.98B in 2024, while net income increased to $626.8M from $513.2M. Operating cash flow was $1.13B in 2025, down from $1.26B in 2024. Recent quarterly revenue was $1.32B for 2026-03-31 and $1.06B for 2026-06-30. At 2026-06-30, total assets were $20.92B, shareholder equity was $7.25B, long-term debt was $5.60B, and cash and equivalents were $2.6M.

Strategy

The company operates as a regulated utility under WEC Energy Group, with its utility reportable segment as the primary business. It is supporting very large customer and bespoke resources tariffs for Oracle America Cloud Services LLC, which will take service under recently approved tariffs, and has incurred significant costs to construct generation, transmission, and distribution assets for that customer. Solar projects are part of WEC Energy Group's long-term capital plan, though the company is monitoring UFLPA compliance, DOC/USITC antidumping and countervailing duty investigations, and federal renewable energy legislation for impacts on timing and cost.

Risks

• Regulatory asset recovery — Future recovery of regulatory assets is not assured and is subject to prudence and reasonableness review in rate proceedings; if recovery is not approved or no longer probable, the assets are recognized in current period earnings.
• Very large customer collateral — Following a credit rating downgrade of Oracle America Cloud Services LLC's parent, contracts require additional collateral that increases as project costs are incurred, with peak collateral currently expected to be approximately $7 billion.
• Solar supply chain and tariffs — UFLPA restrictions and DOC/USITC antidumping and countervailing duty investigations and duties on solar cells and panels from Malaysia, Vietnam, Thailand, Cambodia, Laos, Indonesia, and India have increased costs and caused delays to some solar projects.
• Wholesale market dispatch — Participation in MISO Energy Markets means the cost of the company's generation relative to competitors affects how often its units are dispatched and whether it buys or sells power.

Outlook

Management forecasts retail electric sales volumes to increase 2.3% for 2026 compared with 2025, assuming normal weather; excluding very large data center customers, sales volumes are forecast to decrease slightly. The company expects Oracle America Cloud Services LLC and its parent to provide the required collateral, and continues to monitor solar tariffs and renewable energy legislation for impacts on its capital plan.