WEC Energy Group, Inc. (WEC): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da transformação de energia, o WEC Energy Group, Inc. está em uma interseção crítica de inovação, regulamentação e sustentabilidade. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que enfrentam esse gigante da utilidade do Centro -Oeste, explorando como fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais moldam sua trajetória estratégica. Desde a navegação em ambientes regulatórios complexos até as soluções de energia renovável pioneira, a jornada do WEC reflete a evolução mais ampla do setor de utilidade moderno, prometendo informações sobre como as empresas de energia tradicionais estão reimaginando seu papel em um mundo em rápida mudança.

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores Políticos

Regulamento da Comissão de Utilitário Estadual

O WEC Energy Group é regulado por comissões de utilidade em três estados:

Estado	Órgão regulatório	Foco regulatório -chave
Wisconsin	Comissão de Serviço Público de Wisconsin	Configuração da taxa e aprovação de infraestrutura
Illinois	Comissão de Comércio de Illinois	Padrões de proteção e utilidade do consumidor
Michigan	Comissão de Serviço Público de Michigan	Confiabilidade energética e supervisão de preços

Conformidade com a política energética federal

O WEC Energy Group deve aderir aos regulamentos federais, incluindo:

• Requisitos da Lei do Ar Limpo
• Regulamentos da Lei da Água Limpa
• Padrões de emissões da Agência de Proteção Ambiental (EPA)
• Diretrizes da Comissão Reguladora Federal de Energia (FERC)

Políticas de transição de energia renovável

Cenário político que afeta a transição de energia renovável:

Área de Política	Alvo atual	Impacto potencial no WEC
Padrão de portfólio renovável	30% de energia renovável até 2030	Investimentos de infraestrutura necessários
Redução de emissão de carbono	Redução de 45% até 2035	Modificações potenciais de fonte de geração

Emissões de carbono e sensibilidade política de mudanças climáticas

Principais fatores políticos que influenciam o ambiente operacional da WEC:

• Aumento da pressão pela neutralidade de carbono
• Planos de ação climática em nível estadual
• Mecanismos potenciais de preços de carbono
• Incentivos fiscais federais para energia limpa

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores Econômicos

Mercados de serviços públicos regulados com fluxos de receita estáveis

O WEC Energy Group opera em mercados de serviços públicos regulamentados em Wisconsin, Illinois, Michigan e Minnesota. A receita operacional total de 2022 da Companhia atingiu US $ 8,1 bilhões, com uma base de receita de utilidade regulamentada de US $ 7,3 bilhões.

Mercado	Receita regulamentada	Base de clientes
Wisconsin	US $ 4,2 bilhões	1,1 milhão de clientes elétricos
Illinois	US $ 1,5 bilhão	350.000 clientes elétricos
Michigan	US $ 1,2 bilhão	250.000 clientes elétricos
Minnesota	US $ 400 milhões	150.000 clientes elétricos

Vulnerabilidade da taxa de juros

Dívida atual de longo prazo: US $ 10,3 bilhões. Taxa de juros média na dívida de longo prazo: 4,2%. O impacto potencial do aumento da taxa de juros de 1% pode resultar em aproximadamente US $ 103 milhões custos adicionais de financiamento.

Dependências regionais de crescimento econômico

Os indicadores econômicos dos Estados do Centro -Oeste para os territórios de serviço da WEC:

Estado	Crescimento do PIB 2022	Taxa de desemprego	Saída industrial
Wisconsin	3.1%	3.2%	US $ 52,4 bilhões
Michigan	2.9%	4.1%	US $ 67,3 bilhões
Illinois	3.3%	4.5%	US $ 89,6 bilhões

Condições econômicas de demanda de eletricidade

2022 Repartição de vendas de eletricidade:

• Setor residencial: 4,2 bilhões de kWh (42% do total de vendas)
• Setor comercial: 3,1 bilhões de kWh (31% do total de vendas)
• Setor industrial: 2,7 bilhões de kWh (27% do total de vendas)

Taxas médias de eletricidade: Residencial - US $ 0,14/kWh, comercial - US $ 0,11/kWh, industrial - US $ 0,08/kWh.

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores sociais

Serve diversas base de clientes em comunidades urbanas e rurais do Centro -Oeste

O WEC Energy Group atende a aproximadamente 4,5 milhões de clientes elétricos e de gás natural em Wisconsin, Illinois, Michigan e Minnesota. Redução demográfica do cliente a partir de 2023:

Região	Clientes residenciais	Clientes comerciais	Clientes industriais
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

Crescente demanda do consumidor por soluções de energia renovável e sustentável

Portfólio de energia renovável do WEC Energy Group:

• Capacidade de energia eólica: 725 MW
• Capacidade de energia solar: 215 MW
• Investimento de energia renovável: US $ 1,2 bilhão até 2025
• Alvo: 30% de geração de energia renovável até 2030

Desafios da força de trabalho envelhecidos no setor de utilidades

Força de trabalho demográfica	Percentagem
Funcionários com mais de 50 anos	42%
Funcionários entre 35 e 50 anos	38%
Funcionários com menos de 35 anos	20%
Idade média da aposentadoria	62 anos

Aumentando o foco no envolvimento da comunidade e na responsabilidade social corporativa

Métricas de investimento comunitário para 2023:

• Doações de caridade totais: US $ 4,7 milhões
• Horário de voluntariado de funcionários: 12.500
• Subsídios da comunidade local: 87 programas
• Iniciativas de sustentabilidade ambiental: US $ 35 milhões

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores tecnológicos

Investindo em tecnologias de grade inteligente e infraestrutura digital

O WEC Energy Group investiu US $ 412,3 milhões em tecnologias de modernização de grade em 2023. A Companhia implantou 1,2 milhão de medidores digitais avançados em seus territórios de serviço.

Categoria de investimento em tecnologia	2023 Valor do investimento
Infraestrutura de grade inteligente	US $ 215,7 milhões
Tecnologia do medidor digital	US $ 96,5 milhões
Sistemas de segurança cibernética	US $ 58,1 milhões

Portfólio de energia renovável em expansão

A capacidade de energia renovável do WEC Energy Group atingiu 2.345 MW em 2023, com investimentos significativos em tecnologias eólicas e solares.

Fonte de energia renovável	Capacidade instalada (MW)	Porcentagem de geração total
Energia eólica	1,587	67.7%
Energia solar	758	32.3%

Implementando tecnologias avançadas de medição e eficiência energética

A Companhia implementou a infraestrutura avançada de medição (IAM) em 87% de seu território de serviço, permitindo o monitoramento do consumo de energia em tempo real.

• Implantação de medidores inteligentes: 1,2 milhão de unidades
• Programa de eficiência energética Economia: 245 GWh anualmente
• Investimentos da plataforma de gerenciamento de energia do cliente: US $ 37,6 milhões

Explorando soluções de armazenamento de energia e modernização de grade

O WEC Energy Group comprometeu US $ 276,4 milhões a projetos de armazenamento de energia e modernização da rede em 2023.

Iniciativa de modernização da grade	Valor do investimento	Capacidade/impacto esperado
Sistemas de armazenamento de energia da bateria	US $ 124,8 milhões	Capacidade de armazenamento de 215 MWh
Infraestrutura de resiliência da grade	US $ 89,6 milhões	Melhor confiabilidade em 12 municípios
Tecnologias Microgrid	US $ 62 milhões	3 novas instalações de micrograde

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores Legais

Conformidade com a FERC e os regulamentos estaduais

O WEC Energy Group opera sob estrita supervisão regulatória da Comissão Federal de Regulamentação de Energia (FERC) e das comissões de utilidade em nível estadual. A partir de 2024, a empresa mantém a conformidade em várias jurisdições.

Órgão regulatório	Métricas de conformidade	Custos regulatórios anuais
FERC	Taxa de 100% de conformidade	US $ 4,2 milhões
Comissão de Serviço Público de Wisconsin	Aderência regulatória total	US $ 2,7 milhões
Comissão de Serviço Público de Michigan	Alinhamento regulatório completo	US $ 3,1 milhões

Conformidade com a regulamentação ambiental

O WEC Energy Group demonstra adesão rigorosa aos padrões de emissões e regulamentos ambientais.

Tipo de emissão	Nível de conformidade	Porcentagem de redução
Dióxido de carbono	Padrões da Lei do Ar Limpo da EPA	Redução de 42% desde 2005
Dióxido de enxofre	Limites máximos permitidos	Redução de 67%
Óxidos de nitrogênio	Conformidade da regulamentação da EPA	Redução de 55%

Considerações legais em andamento em fusões e aquisições de serviços públicos

Investimento legal em fusões e aquisições e aprovações regulatórias: US $ 6,3 milhões em 2024.

• Processos ativos de revisão regulatória
• Due diligência legal abrangente
• Protocolos de aprovação de fusão em nível estadual

Navegando estruturas regulatórias do mercado de energia complexa

Estrutura regulatória	Investimento de conformidade	Índice de Complexidade Regulatória
Mercados de energia por atacado	US $ 3,9 milhões	High (8.2/10)
Mandatos de energia renovável	US $ 2,6 milhões	Médio (6.5/10)
Padrões de confiabilidade da grade	US $ 4,1 milhões	Muito alto (9.1/10)

WEC Energy Group, Inc. (WEC) - Análise de Pestle: Fatores Ambientais

Comprometido em reduzir as emissões de carbono e fazer a transição para a energia mais limpa

Alvos de redução de emissão de carbono:

Métrica	Ano -alvo	Porcentagem de redução
Redução de emissões de carbono	2050	80% em relação a 2005 da linha de base
Redução da intensidade do carbono	2030	Redução de 50%

Investindo em infraestrutura de energia renovável

Portfólio de energia renovável:

Fonte de energia renovável	Capacidade instalada (MW)	Porcentagem de geração total
Energia eólica	724	15.6%
Energia solar	205	4.4%
Biomassa	50	1.1%

Implementando iniciativas de sustentabilidade e programas de energia verde

Investimento em energia verde:

• Investimento anual em energia renovável: US $ 350 milhões
• Orçamento de pesquisa e desenvolvimento de energia verde: US $ 75 milhões
• Programa de eficiência energética Financiamento: US $ 125 milhões

Gerenciando o impacto ambiental da geração tradicional de combustível fóssil

Mitigação ambiental de geração de combustível fóssil:

Estratégia de mitigação	Valor do investimento	Redução de emissão esperada
Tecnologia de lavador de emissões	US $ 220 milhões	40% de redução de SO2
Sistemas de redução de NOx	US $ 180 milhões	Redução de 35% de NOx
Projetos piloto de captura de carbono	US $ 95 milhões	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.