WEC Energy Group, Inc. (WEC): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la transformación energética, WEC Energy Group, Inc. se encuentra en una intersección crítica de innovación, regulación y sostenibilidad. Este análisis integral de la mano presenta los desafíos y oportunidades multifacéticos que enfrentan este gigante de servicios públicos del medio oeste, explorando cómo los factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales dan forma a su trayectoria estratégica. Desde la navegación de entornos regulatorios complejos hasta las soluciones pioneras de energía renovable, el viaje de WEC refleja la evolución más amplia del sector de servicios públicos moderno, prometiendo ideas sobre cómo las empresas de energía tradicionales están reinventando su papel en un mundo que cambia rápidamente.

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores políticos

Reglamento de la Comisión de Servicios Públicos del Estado

WEC Energy Group está regulado por comisiones de servicios públicos en tres estados:

Estado	Cuerpo regulador	Enfoque regulatorio clave
Wisconsin	Comisión de Servicio Público de Wisconsin	Configuración de tarifas y aprobación de infraestructura
Illinois	Comisión de Comercio de Illinois	Protección al consumidor y estándares de servicios públicos
Michigan	Comisión de Servicio Público de Michigan	La confiabilidad energética y la supervisión de los precios

Cumplimiento de la política energética federal

WEC Energy Group debe adherirse a las regulaciones federales que incluyen:

• Requisitos de la Ley de Aire Limpio
• Regulaciones de la Ley de Agua Limpia
• Estándares de emisiones de la Agencia de Protección Ambiental (EPA)
• Directrices de la Comisión Reguladora de Energía Federal (FERC)

Políticas de transición de energía renovable

Panorama político que afecta la transición de energía renovable:

Área de política	Objetivo actual	Impacto potencial en WEC
Estándar de cartera renovable	30% de energía renovable para 2030	Inversiones de infraestructura requeridas
Reducción de emisiones de carbono	Reducción del 45% por 2035	Modificaciones de la fuente de generación potencial

Emisiones de carbono y cambio climático Sensibilidad política

Factores políticos clave que influyen en el entorno operativo de WEC:

• Aumento de la presión para la neutralidad de carbono
• Planes de acción climática a nivel estatal
• Mecanismos potenciales de precios de carbono
• Incentivos fiscales federales para la energía limpia

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores económicos

Mercados de servicios públicos regulados con flujos de ingresos estables

WEC Energy Group opera en mercados de servicios públicos regulados en Wisconsin, Illinois, Michigan y Minnesota. Los ingresos operativos totales de 2022 de la compañía alcanzaron los $ 8.1 mil millones, con una base de ingresos de servicios públicos regulados de $ 7.3 mil millones.

Mercado	Ingresos regulados	Base de clientes
Wisconsin	$ 4.2 mil millones	1.1 millones de clientes eléctricos
Illinois	$ 1.5 mil millones	350,000 clientes eléctricos
Michigan	$ 1.2 mil millones	250,000 clientes eléctricos
Minnesota	$ 400 millones	150,000 clientes eléctricos

Vulnerabilidad de la tasa de interés

Deuda actual a largo plazo: $ 10.3 mil millones. Tasa de interés promedio sobre deuda a largo plazo: 4.2%. El impacto potencial del aumento de la tasa de interés del 1% podría dar lugar a aproximadamente $ 103 millones de costos de financiación anual adicionales.

Dependencias regionales de crecimiento económico

Indicadores económicos de los Estados del Medio Oeste para los territorios de servicio de WEC:

Estado	Crecimiento del PIB 2022	Tasa de desempleo	Producción industrial
Wisconsin	3.1%	3.2%	$ 52.4 mil millones
Michigan	2.9%	4.1%	$ 67.3 mil millones
Illinois	3.3%	4.5%	$ 89.6 mil millones

Demanda de electricidad Condiciones económicas

2022 Desglose de ventas de electricidad:

• Sector residencial: 4.200 millones de kWh (42% de las ventas totales)
• Sector comercial: 3.1 mil millones de kWh (31% de las ventas totales)
• Sector industrial: 2.7 mil millones de kWh (27% de las ventas totales)

Tasas de electricidad promedio: Residencial - $ 0.14/kWh, comercial - $ 0.11/kWh, industrial - $ 0.08/kWh.

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores sociales

Atiende una base de clientes diversas en las comunidades urbanas y rurales del medio oeste

WEC Energy Group atiende a aproximadamente 4,5 millones de clientes de gases eléctricos y de gas natural en Wisconsin, Illinois, Michigan y Minnesota. Desglose demográfico del cliente a partir de 2023:

Región	Clientes residenciales	Clientes comerciales	Clientes industriales
Wisconsin	1,720,000	132,500	8,750
Illinois	620,000	45,300	3,200
Michigan	510,000	38,700	2,900
Minnesota	380,000	29,500	2,100

Creciente demanda de consumidores de soluciones energéticas renovables y sostenibles

Cartera de energía renovable de WEC Energy Group:

• Capacidad de energía eólica: 725 MW
• Capacidad de energía solar: 215 MW
• Inversión de energía renovable: $ 1.2 mil millones para 2025
• Objetivo: 30% de generación de energía renovable para 2030

Envejecimiento de los desafíos de la fuerza laboral en el sector de servicios públicos

Demográfico de la fuerza laboral	Porcentaje
Empleados mayores de 50 años	42%
Empleados entre 35 y 50 años	38%
Empleados menores de 35 años	20%
Edad promedio de jubilación	62 años

Aumento del enfoque en la participación comunitaria y la responsabilidad social corporativa

Métricas de inversión comunitaria para 2023:

• Donaciones caritativas totales: $ 4.7 millones
• Horario voluntario de los empleados: 12,500
• Subvenciones de la comunidad local: 87 programas
• Iniciativas de sostenibilidad ambiental: $ 35 millones

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores tecnológicos

Invertir en tecnologías de cuadrícula inteligente e infraestructura digital

WEC Energy Group invirtió $ 412.3 millones en tecnologías de modernización de red en 2023. La compañía desplegó 1,2 millones de medidores digitales avanzados en sus territorios de servicio.

Categoría de inversión tecnológica	Cantidad de inversión 2023
Infraestructura de cuadrícula inteligente	$ 215.7 millones
Tecnología de medidores digitales	$ 96.5 millones
Sistemas de ciberseguridad	$ 58.1 millones

Ampliando cartera de energía renovable

La capacidad de energía renovable de WEC Energy Group alcanzó 2,345 MW en 2023, con importantes inversiones en tecnologías eólicas y solares.

Fuente de energía renovable	Capacidad instalada (MW)	Porcentaje de generación total
Energía eólica	1,587	67.7%
Energía solar	758	32.3%

Implementación de tecnologías avanzadas de medición y eficiencia energética

La compañía implementó Infraestructura de medición avanzada (AMI) en el 87% de su territorio de servicio, lo que permite el monitoreo del consumo de energía en tiempo real.

• Implementación del medidor inteligente: 1.2 millones de unidades
• Ahorro del programa de eficiencia energética: 245 GWH anualmente
• Inversiones de la plataforma de gestión de energía del cliente: $ 37.6 millones

Explorando las soluciones de almacenamiento de energía y modernización de la red

WEC Energy Group comprometió $ 276.4 millones a proyectos de almacenamiento de energía y modernización de la red en 2023.

Iniciativa de modernización de la cuadrícula	Monto de la inversión	Capacidad/impacto esperado
Sistemas de almacenamiento de energía de la batería	$ 124.8 millones	Capacidad de almacenamiento de 215 MWh
Infraestructura de resiliencia de la cuadrícula	$ 89.6 millones	Confiabilidad mejorada en 12 condados
Tecnologías de microrredes	$ 62 millones	3 nuevas instalaciones de microrredes

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de servicios públicos de FERC y estatales

WEC Energy Group opera bajo una estricta supervisión regulatoria de la Comisión Reguladora de Energía Federal (FERC) y las comisiones de servicios públicos a nivel estatal. A partir de 2024, la compañía mantiene el cumplimiento en múltiples jurisdicciones.

Cuerpo regulador	Métricas de cumplimiento	Costos regulatorios anuales
Ferc	Tasa de cumplimiento del 100%	$ 4.2 millones
Comisión de Servicio Público de Wisconsin	Adherencia regulatoria completa	$ 2.7 millones
Comisión de Servicio Público de Michigan	Alineación regulatoria completa	$ 3.1 millones

Cumplimiento de la regulación ambiental

WEC Energy Group demuestra una adhesión rigurosa a los estándares de emisiones y las regulaciones ambientales.

Tipo de emisión	Nivel de cumplimiento	Porcentaje de reducción
Dióxido de carbono	Estándares de la Ley de Aire Limpio de la EPA	Reducción del 42% desde 2005
Dióxido de azufre	Límites máximos permitidos	67% de reducción
Óxidos de nitrógeno	Cumplimiento de la regulación de la EPA	55% de reducción

Consideraciones legales continuas en fusiones y adquisiciones de servicios públicos

Inversión legal en cumplimiento de fusiones y adquisiciones y aprobaciones regulatorias: $ 6.3 millones en 2024.

• Procesos de revisión regulatoria activa
• Diligencia debida legal integral
• Protocolos de aprobación de fusión a nivel estatal

Navegación de marcos regulatorios del mercado energético complejo

Marco regulatorio	Inversión de cumplimiento	Índice de complejidad regulatoria
Mercados de energía al por mayor	$ 3.9 millones	Alto (8.2/10)
Mandatos de energía renovable	$ 2.6 millones	Medio (6.5/10)
Normas de confiabilidad de la cuadrícula	$ 4.1 millones	Muy alto (9.1/10)

WEC Energy Group, Inc. (WEC) - Análisis de mortero: factores ambientales

Comprometido a reducir las emisiones de carbono y la transición a la energía más limpia

Objetivos de reducción de emisiones de carbono:

Métrico	Año objetivo	Porcentaje de reducción
Reducción de emisiones de carbono	2050	80% de la línea de base de 2005
Reducción de la intensidad del carbono	2030	50% de reducción

Invertir en infraestructura de energía renovable

Portafolio de energía renovable:

Fuente de energía renovable	Capacidad instalada (MW)	Porcentaje de generación total
Energía eólica	724	15.6%
Energía solar	205	4.4%
Biomasa	50	1.1%

Implementación de iniciativas de sostenibilidad y programas de energía verde

Inversión de energía verde:

• Inversión anual en energía renovable: $ 350 millones
• Presupuesto de investigación y desarrollo de energía verde: $ 75 millones
• Financiación del programa de eficiencia energética: $ 125 millones

Gestión del impacto ambiental de la generación de combustibles fósiles tradicionales

Mitigación ambiental de generación de combustibles fósiles:

Estrategia de mitigación	Monto de la inversión	Reducción de emisiones esperada
Tecnología de depuración de emisiones	$ 220 millones	40% de reducción de SO2
Sistemas de reducción de NOx	$ 180 millones	35% de reducción de NOX
Proyectos piloto de captura de carbono	$ 95 millones	20% de captura de CO2

WEC Energy Group, Inc. (WEC) - PESTLE Analysis: Social factors

Serving a large, diverse customer base of 4.7 million across four Midwestern states

You are managing a utility that serves a massive, geographically diverse population, which means your social license to operate is constantly under scrutiny. WEC Energy Group provides vital services to approximately 4.7 million retail customers across four key Midwestern states: Wisconsin, Illinois, Michigan, and Minnesota. This broad service territory requires a nuanced approach to customer relations, as regulatory and community expectations vary significantly from Milwaukee to Chicago to Minneapolis.

The sheer scale of the customer base means any service interruption or rate hike affects millions of households and businesses, so public perception is defintely a core risk factor. The company's regulated utility subsidiaries, like We Energies and Peoples Gas, are embedded in the daily lives of these communities, making local goodwill a non-negotiable asset.

High customer satisfaction and workforce diversity are key metrics in executive pay

The company's leadership understands that social performance directly impacts financial outcomes. This is why key environmental, social, and governance (ESG) metrics are tied to incentive compensation (pay-for-performance) for named executive officers.

Specifically, the incentive program links pay to challenging metrics that include safety, reliability, customer satisfaction, financial discipline, and environmental stewardship. This alignment ensures that management's focus remains on operational excellence and social responsibility, not just raw profit. A concrete measure of the company's commitment to inclusive economic impact is its 2024 spend: WEC Energy Group spent $332.4 million with certified minority-, women-, veteran-, or service-disabled-owned businesses, showing a clear, measurable commitment to supplier diversity.

Community investment is significant, with $19 million in charitable contributions in 2024

Community investment is a critical component of maintaining a strong social license, and WEC Energy Group has a substantial program funded by shareholders. In 2024, the company provided $19 million in charitable grants and contributions to nonprofit organizations across its service territories. This is a significant figure, plus they provided an additional $2.5 million in donations specifically for low-income customer programs to help with affordability.

Here's the quick math on the 2024 charitable giving breakdown:

Donation Category	Amount (2024)	Details
Charitable Grants & Contributions	$19 million	To nonprofit organizations.
Low-Income Customer Programs	$2.5 million	Direct assistance for affordability.
We Energies Foundation Grants (Portion of Total)	$11.5 million	Portion of the total contributed via the We Energies Foundation.
Rewarding Responders Grant (Annual)	$100,000	Annual total for public safety response agencies.

This kind of targeted investment helps mitigate the social impact of being a monopoly utility and builds goodwill with local leaders and customers.

Public pressure demands a balance between clean energy and reliable, affordable service

The most intense social pressure WEC Energy Group faces in 2025 is the tension between its clean energy transition goals and the need for reliable, affordable service. You are trying to manage a transition that is both capital-intensive and subject to public opinion.

The company's long-term strategy is to achieve net carbon neutrality by 2050 and eliminate coal as an energy source by the end of 2032.

However, this transition is not without public backlash. A coalition of environmental groups, including the Sierra Club, is actively opposing WEC Energy Group's plan to build new natural gas plants, totaling 3,000 megawatts (MWs), arguing this contradicts the company's stated carbon reduction goals. Moreover, the controversy is amplified by the proposed rate increases:

• Public opposition centers on the company's requested $800 million rate increase over two years.
• Critics argue these rate hikes prioritize 'massive profit margins' over customer affordability, especially for vulnerable communities.
• The company is investing over $9.1 billion in new renewable investments between 2025 and 2029, which is part of its $28 billion capital plan to enhance reliability and resilience.

The core challenge is a social one: how to fund a massive, necessary clean energy transition while keeping rates affordable for a diverse customer base, especially when the chosen path (natural gas as a bridge fuel) is viewed by some as financially irresponsible and environmentally regressive.

WEC Energy Group, Inc. (WEC) - PESTLE Analysis: Technological factors

Electric demand is forecast to grow by 3.4 GW by 2030, driven by data centers

You're seeing an unprecedented surge in electricity demand, primarily driven by the proliferation of hyperscale data centers and the infrastructure needed for artificial intelligence (AI). This isn't a slow trend; it's a near-term spike that requires immediate technological response.

WEC Energy Group is capitalizing on this, forecasting a demand increase of 3.4 GW between 2026 and 2030, which is a 1.6 GW jump from their prior forecast. This growth is largely anchored by major projects in Wisconsin, like Microsoft's $3.3 billion Mount Pleasant AI data center and the new Vantage Data Centers' Port Washington campus, which has a site potential of up to 3.5 GW over time. That kind of load growth is a game-changer for a regulated utility.

This massive demand requires not just more generation, but a smarter, more resilient grid to handle the constant, high-density power needs of these facilities.

Capital plan includes 4,300 MW of new carbon-free generation, including solar and battery storage

The company's response to this demand and the clean energy transition is laid out in its massive capital plan. The updated 2026-2030 capital plan is now projected at $36.5 billion, an $8.5 billion increase over the previous plan. A core part of this is a significant investment in carbon-free generation technology.

WEC Energy Group plans to build and own 4,300 MW of new carbon-free generation by the end of 2029, which is more than quadrupling its current renewable capacity. This includes substantial investments in solar and battery storage technology, totaling an incremental $2.5 billion in the updated plan. For context, here's a look at the major capital allocation shifts:

Capital Plan Component (2026-2030)	Incremental Increase over Prior Plan	Total Investment (Approximate)
Renewables & Battery Storage	$2.5 billion	Over $9.1 billion (2025-2029 prior plan) + $2.5 billion
Modern Natural Gas Generation	$3.4 billion	Not explicitly stated, but includes 1,100 MW of new combustion turbines
Transmission (ATC projects)	$900 million	$4.1 billion
Distribution Networks (Grid Modernization)	$2.0 billion	Not explicitly stated, but part of the $36.5 billion total

Here's the quick math: the focus is clearly on a balanced mix, with significant capital flowing to both intermittent renewables and the firming capacity of gas and battery storage to maintain reliability.

Investing in grid modernization: line burying and high-tech equipment for reliability

Grid modernization is a critical technological factor, not just for new data center load but for overall system reliability. WEC Energy Group's subsidiary, We Energies, received the 2025 ReliabilityOne Award for the Upper Midwest, which is a direct reflection of these investments.

The company is actively upgrading aging systems and deploying advanced grid technologies. This includes physical hardening and high-tech equipment deployment:

• Burying hundreds of miles of power lines to reduce storm-related outages.
• Adding high-tech equipment, such as remote sensors and advanced communication systems, that can automatically reduce the impact and duration of power outages.
• Investing an additional $2 billion in electric and natural gas distribution networks as part of the updated capital plan.

This is defintely a necessary defensive technology spend; you can't have a modern energy system without a smart, resilient delivery network.

Researching hydrogen power, renewable natural gas, and long-duration battery storage

Beyond current commercial technology, WEC Energy Group is actively exploring next-generation solutions to meet its goal of net carbon-neutral electric generation by 2050. This research is crucial for bridging the gap between intermittent renewables and 24/7 customer needs.

The company is conducting leading research in several key areas:

• Hydrogen Power: They successfully led a first-of-its-kind hydrogen power test in 2022, running a generating unit on hydrogen and natural gas blends up to 25% by volume. This RICE (reciprocating internal combustion engines) unit test provides key data for future low-carbon generation.
• Long-Duration Battery Storage: WEC Energy Group is collaborating on a pilot project at its Valley Power Plant in Milwaukee to test a new form of long-duration organic flow battery storage. This 1-to-2-megawatt-hour pilot is one of the first of its kind on the U.S. electric grid, aiming to solve the challenge of storing solar or wind power for days, not just hours.
• Renewable Natural Gas (RNG): The company is also investing in RNG, which captures methane from sources like landfills and farms, and in natural gas heat pumps, as part of a strategy to improve the natural gas distribution system and reduce emissions.

Finance: Track the regulatory approval timelines for the $36.5 billion capital plan, as project execution is the next big hurdle.

WEC Energy Group, Inc. (WEC) - PESTLE Analysis: Legal factors

Regulated environment requires rate case approvals for capital recovery and returns.

WEC Energy Group operates in a highly regulated environment across multiple states, where state Public Service Commissions (PSCs) determine the utility's allowed Return on Equity (ROE) and approve rate cases necessary for capital recovery. This process is the primary legal mechanism for ensuring the company can earn a return on its massive infrastructure investments, which are projected to be a $28 billion capital plan for the 2025-2029 period.

In Wisconsin, the Public Service Commission of Wisconsin (PSCW) approved rate increases for WEC subsidiaries We Energies and Wisconsin Public Service for 2025 and 2026. While the utilities requested a 10% ROE, the commission ultimately held the authorized ROE at 9.80% for both utilities. This decision directly impacts the company's profitability, as a 20-basis-point difference on a large rate base is a material financial factor. In Illinois, the authorized ROE for the gas subsidiaries, Peoples Gas and North Shore Gas, is even tighter at 9.38%, reflecting a more challenging regulatory climate in that jurisdiction.

Utility Subsidiary (State)	Authorized ROE (2025)	Equity Layer Midpoint
Wisconsin Electric (WI)	9.80%	53.00%
Wisconsin Public Service (WI)	9.80%	53.00%
Peoples Gas (IL)	9.38%	50.79%
North Shore Gas (IL)	9.38%	52.58%

Proposed VLC tariff aims for a fixed Return on Equity (ROE) between 10.48%-10.98%.

A significant legal and regulatory opportunity is the proposed Very Large Customer (VLC) tariff, which is currently under review by the PSCW. This bespoke tariff is designed to serve new, high-demand industrial clients, such as Microsoft's planned $3.3 billion data center campus in Mount Pleasant, Wisconsin.

The VLC tariff is a strategic move to de-risk high-growth investments by proposing a fixed financial structure for the entire term of the agreement, which is 20 years for wind and solar assets. The proposal seeks a fixed ROE of 10.48% and a fixed equity ratio of 57%. This is a higher and more stable ROE than the standard 9.80% authorized for the general Wisconsin rate base, and it offers a clear, long-term financial structure that bypasses the volatility of future general rate cases. The PSCW is expected to issue an order by the second quarter of 2026.

Illinois gas pipe replacement mandates require long-term capital compliance spending.

WEC's Illinois gas subsidiaries, Peoples Gas and North Shore Gas, are subject to state-mandated replacement programs for aging infrastructure, which drives substantial, long-term capital compliance spending. The legal requirement is to replace all gas distribution mains under 36 inches in diameter by January 1, 2035.

While this spending is a regulatory obligation, it also forms a major component of the rate base upon which the utilities earn their authorized ROE of 9.38%. The prior five-year capital budget (2019-2023) for the two Illinois utilities was $3.1 billion, with a significant portion dedicated to the pipe replacement work. The ongoing nature of this mandate ensures a consistent, albeit regulated, investment pipeline and revenue stream for the company.

Ongoing compliance programs address ethics, lobbying, and anti-retaliation policies.

Maintaining a strong legal and ethical posture is crucial in a regulated industry, and WEC Energy Group has a comprehensive Ethics and Compliance program in place. The program is overseen by the Compliance Officer, who reports regularly to the Board's Audit and Oversight Committee.

Key areas of legal compliance are reinforced through mandatory training and explicit policies:

• Ethics and Code of Conduct: The Code of Business Conduct is the foundation, requiring all directors, executive officers, and employees to comply and report suspected violations.
• Lobbying and Government Relations: A formal Government Relations Policy is in place, and in the first quarter of 2025, all external lobbyists and political consultants were required to complete a specialized training course on compliance with lobbying, campaign finance, and political law.
• Anti-Retaliation: The company maintains a strong, explicit anti-retaliation policy, prohibiting any disciplinary action against individuals who report misconduct in good faith. Any employee found to be engaging in retaliation is subject to disciplinary action, up to and including immediate discharge.

The Audit and Oversight Committee conducts an annual review of the Government Relations Policy and related political activities. The compliance framework is defintely a core defense against legal and reputational risk.

WEC Energy Group, Inc. (WEC) - PESTLE Analysis: Environmental factors

You need to understand that WEC Energy Group's environmental strategy is a delicate balance of aggressive decarbonization goals and the immediate, non-negotiable need for grid reliability in the Upper Midwest. The company is on track to meet its near-term carbon reduction targets, but the recent delay in a major coal plant retirement highlights the real-world friction between policy and power supply. This is a story of transition, not just a switch being flipped.

Here's the quick math: The $28 billion capital plan is the engine for 7% to 8% EPS growth, but the regulatory approval of the VLC tariff is the key to unlocking the data center opportunity. Finance: monitor the Wisconsin Public Service Commission's VLC tariff decision by early May 2026.

Targeting a 60% reduction in carbon emissions by end of 2025 (from 2005 levels)

WEC Energy Group is committed to achieving a 60% reduction in carbon emissions from its electric generation fleet by the end of 2025, measured against a 2005 baseline. This aggressive target is a core component of the company's broader climate strategy, which ultimately aims for a net-zero carbon electric generation fleet by 2050. The execution of this plan is supported by the company's substantial capital investment. The most recent capital plan, announced in late 2024, is a $28 billion investment through 2029, with a significant portion dedicated to clean energy projects. This shift is also expected to drop the percentage of the company's revenue and assets tied to coal to less than 10% by the end of 2025.

Coal will be eliminated as an energy source by the end of 2032

The company has a firm, long-term goal to eliminate coal as an energy source entirely by the end of 2032. This is an acceleration from the previously stated 2035 target, reflecting a decisive move away from fossil fuels. To manage the transition, WEC Energy Group plans to use coal only as an emergency backup fuel by the end of 2030. The challenge is replacing the reliable, dispatchable capacity of coal with a mix of renewable and natural gas generation without compromising service reliability, especially during peak demand periods. The company is planning, permitting, or constructing over 6,300 MW of new capacity over the next five years, which includes natural gas, wind, solar, and battery storage.

Goal to achieve net-zero methane emissions from natural gas distribution by 2030

A third of WEC Energy Group's business is natural gas distribution, so addressing methane-a potent greenhouse gas-is critical. The company has set a goal to achieve net-zero methane emissions from its natural gas distribution operations by the end of 2030. This is being accomplished through continuous upgrades to gas delivery networks and the incorporation of renewable natural gas (RNG) into the system. This focus on the distribution side is an important risk mitigation step, as investors are increasingly scrutinizing the full scope of a utility's environmental footprint, not just its electric generation. Honestly, this methane goal puts them ahead of many peers.

Retirement of Oak Creek Units 7-8 (611 MW) is planned for late 2025

The planned retirement of coal-fired generation is facing real-world headwinds. The closure of Oak Creek Units 7 and 8, which had been scheduled for the end of 2025, has been postponed until the end of 2026. This one-year extension was a direct response to warnings from national grid experts about elevated risks of power supply shortages in the Upper Midwest. The units, built in the 1960s, have a combined capacity of 610 megawatts (MW), a capacity the grid operator deemed essential for reliability, particularly during extreme weather events. This is a clear example of reliability trumping the original decarbonization timeline in the near term.

The table below summarizes the key environmental targets and the financial commitment driving the transition.

Environmental Metric	Target/Status (2025 Fiscal Year Focus)	Financial/Capacity Impact	Timeline
Carbon Emission Reduction (Electric Generation)	60% reduction (from 2005 levels)	Backed by a $28 billion capital plan through 2029	By end of 2025
Coal-Fired Assets/Revenue	Less than 10% of total revenue and assets	Reduces stranded asset risk; supports clean energy investment	By end of 2025
Methane Emissions (Natural Gas Distribution)	Net-zero methane emissions	Mitigates regulatory and climate risk for 33% of the business	By end of 2030
Oak Creek Units 7-8 Retirement	Postponed retirement to maintain grid reliability	Preserves 610 MW of coal-fired capacity for an extra year	Delayed from end of 2025 to end of 2026

The company's focus on a 'clean energy future' is defintely evident in its capital allocation:

• Total planned investment in renewables by 2029 is $9.1 billion.
• New generation capacity planned, permitted, or under construction is over 6,300 MW.
• The long-term coal elimination date is set for the end of 2032.