WEC Energy Group WEC · USD

SEGMENT INFORMATIONOur President and CEO, who is our CODM, reviews financial information presented on a segment basis for purposes of making operating decisions and assessing performance. The CODM regularly reviews net income attributed to common shareholders to measure segment profitability and to allocate resources, including assets, to our businesses. Net income attributed to common shareholders best measures our segment profitability as it reflects all revenues and costs, including the impact on our tax provision from tax credits generated through investments in renewable generation facilities. Our CODM allocates resources, such as employees, as well as financial and capital resources, to our segments during the annual review of budgets and the capital plan. Our CODM also reviews and revises the resources throughout the year during the monthly forecasting process in order to make timely decisions that align with our overall corporate strategy. The CODM uses each segment’s net income to evaluate performance by comparing actual results to budgeted and forecasted amounts, as well as the ROE earned for each utility within the various utility segments. Segments were determined based on a combination of factors, including the regulatory environment of each geographical jurisdiction in which the segment operates, equity investment interests, as well as the revenue streams for the products or services provided to customers through electric, natural gas, and renewable operations. See Note 4, Operating Revenues, for more information on disaggregation of operating revenues, including intercompany eliminations. The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies.At December 31, 2025, we reported six segments, which are described below. All of our operations are located within the United States.•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 operations of MERC and MGU and the non-utility operations of MERC.

OPERATING REVENUESFor more information about our significant accounting policies related to operating revenues, see Note 1(d), Operating Revenues. 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 has different expectations of service, energy and demand requirements, and can be impacted differently by regulatory activities within their jurisdictions. (in millions)WisconsinIllinoisOther StatesTotal UtilityOperationsNon-Utility Energy InfrastructureCorporateand OtherReconcilingEliminationsWEC Energy Group ConsolidatedYear ended December 31, 2025 Electric$5,529.6 $— $— $5,529.6 $— $— $— $5,529.6 Natural gas1,741.6 1,717.6 508.1 3,967.3 47.0 — (44.5)3,969.8 Total regulated revenues7,271.2 1,717.6 508.1 9,496.9 47.0 — (44.5)9,499.4 Other non-utility revenues— — 21.8 21.8 243.6 — (9.2)256.2 Total revenues from contracts with customers7,271.2 1,717.6 529.9 9,518.7 290.6 — (53.7)9,755.6 Other operating revenues24.3 (34.0)(2.4)(12.1)479.6 — (423.0)(1)44.5 Total operating revenues$7,295.5 $1,683.6 $527.5 $9,506.6 $770.2 $— $(476.7)$9,800.1 (in millions)WisconsinIllinoisOther StatesTotal UtilityOperationsNon-Utility Energy InfrastructureCorporateand OtherReconcilingEliminationsWEC Energy Group ConsolidatedYear ended December 31, 2024 Electric$4,908.4 $— $— $4,908.4 $— $— $— $4,908.4 Natural gas1,402.4 1,499.6 419.7 3,321.7 48.4 — (46.0)3,324.1 Total regulated revenues6,310.8 1,499.6 419.7 8,230.1 48.4 — (46.0)8,232.5 Other non-utility revenues— — 20.4 20.4 223.9 — (9.1)235.2 Total revenues from contracts with customers6,310.8 1,499.6 440.1 8,250.5 272.3 — (55.1)8,467.7 Other operating revenues19.7 102.8 9.7 132.2 419.0 — (419.0)(1)132.2 Total operating revenues$6,330.5 $1,602.4 $449.8 $8,382.7 $691.3 $— $(474.1)$8,599.

COMMITMENTS AND CONTINGENCIESWe 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 ObligationsOur 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 renewable 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 generating facilities.The following table shows our minimum future commitments related to these purchase obligations as of December 31, 2025, including those of our subsidiaries:Payments Due By Period(in millions)Date Contracts Extend ThroughTotal Amounts Committed20262027202820292030Later YearsElectric utility:Nuclear2033$5,045.8 $681.6 $730.4 $782.6 $838.5 $898.5 $1,114.2 Coal supply and transportation2028412.1 242.2 127.7 37.0 3.5 1.7 — Purchased power2063335.3 61.6 56.3 52.4 25.6 5.9 133.5 Other204385.5 12.0 12.1 9.6 8.4 8.5 34.9 Natural gas utility:Supply and transportation20482,921.3 487.0 478.8 426.8 323.6 203.0 1,002.1 Non-utility energy infrastructure:Purchased power2055720.7 55.0 56.3 57.6 50.7 48.4 452.7 Natural gas storage and transportation20484.6 3.9 — 0.1 — — 0.6 Total$9,525.3 $1,543.3 $1,461.6 $1,366.1 $1,250.3 $1,166.0 $2,738.0 Environmental MattersConsistent with other companies in the energy industry, we face significant ongoing environmental compliance and remediation obligations related to current and past operations.

LONG-TERM DEBTThe following table is a summary of our long-term debt outstanding as of December 31:20252024(in millions)Maturity DateWeighted Average Interest RateBalanceWeighted Average Interest RateBalanceWEC Energy Group Senior Notes (unsecured)2026-20333.96 %$6,325.0 4.13 %$6,045.0 WEC Energy Group Junior Notes (unsecured) (1) (2)2055-20566.24 %1,350.0 6.72 %750.0 WE Debentures (unsecured)2028-20954.55 %4,485.0 4.55 %3,935.0 WEPCo Environmental Trust (secured, nonrecourse) (5) (10)2026-20351.58 %78.8 1.58 %88.0 WPS Senior Notes (unsecured)2028-20513.99 %1,975.0 4.17 %2,275.0 WG Debentures (unsecured)2028-20464.34 %940.0 3.92 %840.0 PGL First and Refunding Mortgage Bonds (secured) (3)2027-20473.56 %1,995.0 3.56 %1,995.0 NSG First Mortgage Bonds (secured) (4)2027-20433.81 %177.0 3.81 %177.0 MERC Senior Notes (unsecured)2027-20473.64 %210.0 3.04 %210.0 MGU Senior Notes (unsecured)2027-20474.38 %190.0 3.45 %175.0 UMERC Senior Notes (unsecured)2029-20354.23 %280.0 3.26 %160.0 Bluewater Gas Storage Senior Notes (unsecured) (5)2026-20474.07 %128.0 4.07 %131.9 ATC Holding Senior Notes (unsecured)2028-20304.02 %390.0 4.05 %475.0 We Power Subsidiaries Notes (secured, nonrecourse) (5) (6)2026-20415.71 %769.9 5.67 %814.3 WECC Notes (unsecured)20286.94 %50.0 6.94 %50.0 WECI Wind Holding I Senior Notes (secured, nonrecourse) (5) (7)2026-20322.75 %202.1 2.75 %246.4 WECI Wind Holding II Senior Notes (secured, nonrecourse) (5) (8)2026-20316.38 %147.9 6.38 %167.6 WECI Energy Holding III Senior Notes (secured, nonrecourse) (5) (9)2026-20395.73 %446.2 5.73 %488.7 Total 20,139.9 19,023.9 Jayhawk acquisition7.5 7.5 Unamortized debt issuance costs(110.4)(103.2)Unamortized discount, net and other(19.5)(21.1)Total long-term debt, including current portion20,017.5 18,907.1 Current portion of long-term debt(1,519.4)(1,729.0)Total long-term debt$18,498.1 $17,178.1 (1) In November 2025, we issued our 2025 Junior Notes. Our 2025 Junior Notes are fixed-to-fixed reset rate junior subordinated notes. The rate for our 2025 Junior Notes was 5.625% as of December 31, 2025. The rate for our 2025 Junior Notes will reset on May 15, 2031; provided the reset rate will not be less than 5.625%. (2) In December 2024, we issued our 2024A Junior Notes and 2024B Junior Notes. Our 2024A Junior Notes and 2024B Junior Notes are fixed-to-fixed reset rate junior subordinated notes. The rate for our 2024A Junior Notes was 6.69% as of December 31, 2025.

SHORT-TERM DEBT AND LINES OF CREDIT The following table shows our short-term borrowings and their corresponding weighted-average interest rates as of December 31:(in millions, except percentages)20252024Commercial paperAmount outstanding at December 31$1,921.3 $1,114.4 Average interest rate on amounts outstanding at December 313.89 %4.63 %Operating expense loansAmount outstanding at December 31 (1)$3.4 $2.2 (1) Coyote Ridge, Tatanka Ridge, Samson I, and Jayhawk have entered into operating expense loans. In accordance with their limited liability company operating agreements, they received loans from the holders of their noncontrolling interests in proportion to their ownership interests.Our average amount of commercial paper borrowings based on daily outstanding balances during 2025, was $1,124.2 million with a weighted-average interest rate during the period of 4.43%.WEC Energy Group, WE, PGL, WPS, and WG have entered into bank back-up credit facilities to maintain short-term credit liquidity which, among other terms, require them to maintain, subject to certain exclusions, a total funded debt to capitalization ratio of 70.0%, 65.0%, 65.0%, 65.0%, and 65.0% or less, respectively. As of December 31, 2025, all companies were in compliance with their respective ratio.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 as of December 31:(in millions)Maturity2025Revolving credit facility (WEC Energy Group) (1) (2) (3)August 2030$1,700.0 Revolving credit facility (WE) (1) (2)August 2030800.0 Revolving credit facility (PGL) (1) (2)August 2030600.0 Revolving credit facility (WPS) (1) (2)August 2030450.0 Revolving credit facility (WG) (1) (4)August 2030350.0 Total short-term credit capacity $3,900.0 Less: Letters of credit issued inside credit facilities $2.3 Commercial paper outstanding 1,921.3 Available capacity under existing facilities $1,976.4 (1) These revolving credit facilities have a renewal provision for two extensions, subject to lender approval. Each extension is for a period of one year.(2) In August 2025, the capacity of the credit facilities for each of WEC Energy Group, WE, PGL, and WPS was increased to $1,700.0 million, $800.0 million, $600.0 million, and $450.0 million, respectively, and the maturity for each facility was extended to August 2030. (3) In August 2025, WEC Energy Group terminated its $200.

INCOME TAXES We adopted the new disclosure provisions of ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, effective January 1, 2025. See Note 1(q), Income Taxes, for more information on the adoption of this ASU.Income Tax ExpenseThe following table is a summary of the components of income tax expense for the years ended December 31:(in millions)202520242023Current tax expense (benefit)Federal$(242.5)$(178.5)$(36.7)State(8.0)(128.5)21.9 Deferred tax expense, netFederal240.9 386.2 130.1 State135.6 152.5 99.8 ITCs, net(8.0)(9.7)(10.5)Total income tax expense$118.0 $222.0 $204.6 Statutory Rate ReconciliationThe provision for income taxes for each of the years ended December 31 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:202520242023(in millions)AmountEffective Tax RateAmountEffective Tax RateAmountEffective Tax RateIncome before income taxes$1,673.5 $1,746.3 $1,536.3 US federal statutory income tax rate$351.9 21.0 %$367.3 21.0 %$322.6 21.0 %State and local income taxes net of federal tax effect (1)101.2 6.0 %108.0 6.2 %94.3 6.1 %Tax creditsPTCs, net (2)(261.3)(15.6)%(200.1)(11.5)%(168.2)(10.9)%Other(8.2)(0.5)%(10.0)(0.6)%(10.9)(0.7)%Nontaxable or nondeductible itemsAFUDC-Equity (3)(21.0)(1.3)%(12.6)(0.7)%(12.4)(0.8)%Other11.0 0.7 %4.0 0.2 %4.4 0.2 %Changes in unrecognized tax benefits(2.0)(0.1)%(0.4)— %(1.8)(0.1)%Other adjustmentsFederal excess deferred tax amortization (4) (43.0)(2.6)%(36.7)(2.1)%(37.6)(2.4)%Other, net(10.6)(0.5)%2.5 0.2 %14.2 0.9 %Total income tax expense$118.0 7.1 %$222.0 12.7 %$204.6 13.3 %(1) State taxes in Wisconsin made up the majority of the tax effect in this category.(2) PTCs are an inflation adjusted US federal income tax credit for each kilowatt hour of electricity generated by certain renewable energy projects.(3) AFUDC-Equity represents the cost of capital (i.e. ROE) that is added to the construction cost of an asset while it is being built. The tax benefit for regulated utilities from AFUDC-Equity is a regulatory gross-up to allow the recovery of income taxes on the equity portion of construction costs, even though it is not a tax deductible expense.

LEASES In accordance with ASC Subtopic 980-842, Regulated Operations – Leases (Subtopic 980-842), the timing of expense recognition associated with our leases is modified to conform to the rate treatment. The difference between the lease expense that is allowed for rate-making purposes and the unadjusted lease expense calculated under Topic 842 is deferred as a regulatory asset on our balance sheets. For our finance leases, amortization of the right-of-use asset is modified so that the total of the imputed interest and amortization costs equals the lease expense that is allowed for rate-making purposes in accordance with Subtopic 980-842.Obligations Under Operating LeasesWe have recorded right of use assets and lease liabilities primarily associated with the following operating leases:•Leases of office space, primarily related to several floors we are leasing in the Aon Center office building in Chicago, Illinois, through April 2039.•Land we are leasing related to our Rothschild biomass plant through June 2051.•Rail cars we are leasing to transport coal to various generating facilities through June 2027.•Land we are leasing related to our utility and non-utility solar generation projects through May 2075.The operating leases generally require us to pay property taxes, insurance premiums, and operating and maintenance costs associated with the leased property. Certain of our leases contain options for early termination or to renew past the initial term, as set forth in the lease agreements. These options are included in our calculation of the lease obligations if it is reasonably certain that they will be exercised. Obligations Under Finance LeasesLand Leases – Utility Solar GenerationWe have various land leases related to our investments in utility solar generation. Each lease has an initial term and one or more optional extensions. We expect the optional extensions to be exercised, and, as a result, all of the land leases are being amortized over an extended term which can range from 40 to 50 years. Once a solar project achieves commercial operation, the lease liability is remeasured to reflect the final total acres being leased. Our payments related to these leases are being recovered through rates. Land Leases – Non-Utility Energy Infrastructure Solar GenerationWe have various land leases related to our investments in non-utility solar generation. Each lease has an initial term and one or more optional extensions.

ACQUISITIONSIn accordance with Topic 805: Clarifying the Definition of a Business (ASU 2017-01), transactions are evaluated and are accounted for as acquisitions of assets or businesses, and transaction costs are capitalized in asset acquisitions. It was determined that all of the below acquisitions met the criteria of asset acquisitions. The purchase price of certain acquisitions below includes intangibles recorded as long-term assets and long-term liabilities related to PPAs. See Note 10, Goodwill and Intangibles, for more information.Acquisition of a Solar Generation Facility in OhioUpon commercial operation in February 2025, WECI completed the acquisition of a 90% ownership interest in Hardin III, a 250 MW solar generating facility located in Hardin County, Ohio for $406.1 million. The project has an offtake agreement for all of the energy to be produced by the facility for a period of 15 years from the date of commercial operation. Hardin III qualifies for PTCs and is included in the non-utility energy infrastructure segment.The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at the date of the acquisition.(in millions)Net property, plant, and equipment$526.5 Other current assets0.2 Other current liabilities(0.4)Other long-term liabilities(75.1)Noncontrolling interest(45.1)Total purchase price$406.1 Acquisitions of Solar Generation Facilities in TexasUpon commercial operation in December 2024, WECI completed the acquisition of a 90% ownership interest in Delilah I, a 300 MW solar generating facility in Lamar, Franklin, Hopkins, and Red River counties in Texas. Delilah I was acquired for $462.5 million, which included transaction costs and was net of cash acquired. The project has offtake agreements for all of the energy to be produced by the facility for a period of 15 years from the date of commercial operation. Delilah I qualifies for PTCs and is included in the non-utility energy infrastructure segment.The table below shows the allocation of the purchase price to the assets acquired and liabilities assumed at the date of the acquisition.(in millions)Other current assets$0.1 Net property, plant, and equipment579.8 Other long-term assets12.4 Other long-term liabilities(78.3)Noncontrolling interest(51.5)Total purchase price$462.