WEC Energy Group Announces Rate Case Filings and Oak Creek Plant Extension: Key Developments for Investors

Summary of Major Announcements

• Rate case filings: WEC Energy Group’s Wisconsin utilities, including Wisconsin Electric Power Company, Wisconsin Gas LLC, and Wisconsin Public Service Corporation, have filed requests with the Public Service Commission of Wisconsin (PSCW) to increase customer rates for electric and natural gas services in 2027 and 2028. The filings include a request to set rates for steam.
• Oak Creek Power Plant extension: Wisconsin Electric Power Company will extend the operating lives of Oak Creek Units 7 and 8 through 2027, deferring their scheduled retirement from 2026, due to reliability and affordability concerns.
• Capital plan and growth outlook: WEC Energy Group is increasing its five-year capital plan by \$1 billion to support strong earnings and dividend growth, with a focus on infrastructure investment and meeting rising demand, including significant new demand from data centers.

Detailed Information for Investors

1. Rate Case Filings – Potential Impact on Revenues and Customer Bills

On April 1, 2026, WEC Energy Group’s Wisconsin utility subsidiaries filed applications for base rate increases affecting electric, natural gas, and steam services for 2027 and 2028. These filings are likely to impact future revenues and could influence the company’s earnings trajectory. Key highlights include:

• Wisconsin Electric Power Company (WE):
  • Proposed electric base rate increases: 4.7% in 2027, 4.5% in 2028
  • Proposed natural gas base rate increases: 0.3% in 2027, 4.9% in 2028
  • Request to set rates for steam service
• Wisconsin Gas:
  • Natural gas base rate increases: 6.8% in 2027, 4.0% in 2028
• Wisconsin Public Service Corporation (WPS):
  • Electric base rate increases: 6.3% in 2027, 3.5% in 2028
  • Natural gas base rate increases: 4.9% in 2027, 1.5% in 2028
• Order expected: The PSCW is expected to rule in Q4 2026, with new rates effective January 1, 2027.
• Customer bill impact: Despite proposed increases, typical customer bills are projected to remain below the national average and in line with regional utilities.

Shareholder implications: Approval of these increases would enhance regulated revenues and could drive earnings growth, supporting the company’s guidance for 7.0% to 8.0% long-term EPS growth. However, regulatory outcomes may differ from proposals, which could be a source of risk.

2. Oak Creek Power Plant Extension – Reliability and Strategic Positioning

WEC Energy Group announced the extension of Oak Creek Power Plant Units 7 and 8 operations through 2027. Originally scheduled to retire at the end of 2026, these units will remain available to meet high energy demand, especially during periods of extreme weather. Key drivers for this decision are:

• Reliability: Recent winter energy market conditions highlighted tight supply and volatile costs. Keeping these units online will help ensure stable, reliable service for customers.
• Affordability: The extension is intended to mitigate customer exposure to market price spikes until new dispatchable generation assets come online, expected in late 2027.
• Transition plan: These units will act as a bridge to new generation resources, further supporting the company’s energy transition strategy.

Shareholder implications: The decision reflects proactive management of supply risk and strengthens WEC’s case with regulators for future capital investment. It may also reduce the risk of service disruptions or unanticipated market purchases at high prices, supporting earnings stability.

3. Capital Plan Expansion and Growth Drivers

• Five-year capital plan: Raised to \$37.5 billion (2026-2030), reflecting a \$1 billion increase over the prior plan.
• Growth focus: Investments to support economic growth, grid hardening, and major new customer demand, including a recent 500 MW addition from Microsoft’s January 2026 announcement, bringing forecasted demand in the I-94 corridor to 2.6 GW through 2030.
• Earnings guidance: Targeting 7.0% to 8.0% compound annual EPS growth and dividend growth of 6.5% to 7%, with a payout ratio of 65-70% of earnings.

Shareholder implications: The increased capital plan underpins sustained rate base and earnings growth, supporting WEC’s position as a top-decile utility in terms of dividend and EPS growth. The large pipeline of infrastructure investment and strong demand outlook may drive positive investor sentiment and share price appreciation, especially if regulatory approvals and project execution remain on track.

4. Other Noteworthy Items

• Credit quality: WEC Energy Group maintains strong investment-grade credit ratings (S&P: A-, Moody’s: A2 for Wisconsin Electric and WPS), with targeted FFO-to-debt ratios >15% to support ongoing capital investment and dividend growth.
• Decarbonization and fuel transition: The company continues its transition away from coal, with plans to retire Oak Creek Units 7 and 8 by end of 2027 and use coal only as a backup fuel by 2030, targeting a complete exit from coal by 2032. Renewable energy investments and innovative storage pilots are ongoing.
• Forward-looking statements: Management highlights risks related to regulatory outcomes, project execution, economic conditions, supply chain, and technology adoption. Investors should monitor PSCW and other regulatory decisions closely as they could materially impact results.

Conclusion and Potential Share Price Impact

The combination of significant rate case filings, the Oak Creek Power Plant extension, an expanded capital plan, and robust growth guidance represents a material update for investors and could influence WEC Energy Group’s share price. The rate cases and capital plan, if executed as presented, support WEC’s premium earnings and dividend growth targets. At the same time, decisions by regulators and execution on major projects remain key risks to watch.

Disclaimer: This article contains forward-looking statements based on company disclosures as of April 1, 2026. Actual results may differ due to regulatory, market, or operational risks. Investors should consult the company’s filings and their financial advisors before making investment decisions.

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