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• The AT&T of electricity and natural gas.
• The Verizon of home energy.
• The Walmart for essential household utilities.

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• Electricity Delivery Service: This utility service involves the generation, transmission, and distribution of electricity to residential, commercial, and industrial customers.
• Natural Gas Delivery Service: This utility service involves the distribution and sale of natural gas to residential, commercial, and industrial customers.

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WEC Energy (WEC) - Major Customers

WEC Energy Group (WEC) is a public utility holding company that provides electric and natural gas services. As a utility, it sells its services directly to end-users rather than primarily to other companies for resale. Therefore, its customers can be categorized as follows:

• Residential Customers: These are individual households that use electricity and natural gas for their homes. This category includes a wide range of individual consumers within WEC Energy's service territories, which include Wisconsin, Illinois, Michigan, and Minnesota.
• Commercial Customers: This category includes various businesses such as retail stores, offices, restaurants, schools, hospitals, government buildings, and other non-industrial enterprises. These customers utilize WEC Energy's services for their operational needs.
• Industrial Customers: This group consists of large manufacturing plants, heavy industries, and other industrial facilities that require significant amounts of electricity and natural gas for their production processes.

WEC Energy serves these diverse categories of customers across its utility subsidiaries, which include We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources, and Bluewater Gas Storage.

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Scott J. Lauber, President and Chief Executive Officer

Scott J. Lauber was named President and Chief Executive Officer of WEC Energy Group in February 2022. He joined Wisconsin Energy Corp. in 1990 and has held various positions of increasing responsibility, including financial manager, corporate accounting and budgeting manager, controller, assistant treasurer, and vice president. He became Executive Vice President and Chief Financial Officer for WEC Energy Group in April 2016, and then Chief Operating Officer in June 2020. Lauber is a Certified Public Accountant and previously worked as a staff accountant at Arthur Andersen's Milwaukee office.

Xia Liu, Executive Vice President and Chief Financial Officer

Xia Liu began her role as Executive Vice President and Chief Financial Officer in June 2020. In this role, she is responsible for the company's strategic and long-range financial planning, corporate forecasting and budgeting, treasury, accounting, tax, insurance, risk management, and investor relations. Prior to joining WEC Energy Group, Liu served as Executive Vice President and Chief Financial Officer at CenterPoint Energy starting in 2019. She also spent 21 years with Southern Company and its subsidiaries, including serving as Executive Vice President, Chief Financial Officer, and Treasurer of Georgia Power, and Chief Financial Officer and Treasurer for Gulf Power Co. She began her industry career as a financial analyst at Southern Company in 1998.

Gale E. Klappa, Chairman of the Board

Gale E. Klappa is the Chairman of the Board of WEC Energy Group. He joined Wisconsin Energy as president in April 2003 and served as chairman and chief executive officer of Wisconsin Energy and We Energies from May 2004. Following the acquisition of Integrys Energy Group in 2015, he assumed the same roles for WEC Energy Group. He retired as CEO in May 2016, but resumed the CEO role in October 2017 before returning to the non-executive chairman position in May 2024. Before joining the company, Klappa held various executive leadership roles at Southern Company, including executive vice president, chief financial officer, and treasurer.

M. Beth Straka, Senior Vice President — Corporate Communications and Investor Relations

M. Beth Straka was named Senior Vice President — Corporate Communications and Investor Relations for WEC Energy Group in June 2015. She is responsible for communication strategies, investor relations, and ESG outreach. Before this role, Straka served for over a decade as vice president of equity research in the power and utilities group at Barclays and Lehman Brothers Inc. She has more than 30 years of corporate and utility experience and began her career in public accounting. She is a Certified Public Accountant.

Margaret "Peggy" C. Kelsey, Executive Vice President, General Counsel & Corporate Secretary, and Compliance Officer

Margaret "Peggy" C. Kelsey joined WEC Energy Group as executive vice president in September 2017, taking on responsibilities as general counsel and corporate secretary in January 2018 and compliance officer in August 2021. In these roles, she is responsible for all legal matters, corporate governance, environmental, and ethics and compliance functions. Previously, Kelsey served as general counsel, corporate secretary, and vice president of legal and corporate communications at Modine Manufacturing Co., where she also managed corporate treasury and business development. She began her career as a trial lawyer.

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The key risks to WEC Energy's business include:

1. Regulatory and Legislative Changes: WEC Energy Group's operations are heavily influenced by governmental regulation at state, local, and federal levels. This regulation significantly impacts their operating environment, their ability to recover costs from utility customers, and the rates they can charge for retail and wholesale services. Changes in environmental regulations, particularly those related to greenhouse gas (GHG) emissions, could increase natural gas prices, restrict usage, and adversely affect facility operations. Failure to comply with regulations can result in customer refunds, penalties, and other payments, materially affecting financial results.
2. Capital Spending and Financing Risks: The company has substantial capital expenditure plans, such as a projected $28 billion investment in its grid and generation fleet. The success of these investments and the company's financial returns depend heavily on regulatory approvals for cost recovery. Additionally, rising long-term interest rates while WEC is issuing new equity and funding its capital plan could put pressure on margins and earnings, presenting a significant financing risk.
3. Operational Risks and Reliability: WEC Energy Group faces inherent risks related to the reliability of its electric generation, transmission, and distribution facilities, as well as its natural gas infrastructure. These risks also encompass factors beyond their control, such as catastrophic weather-related damage, environmental incidents, unplanned facility outages, and cyber intrusions. These operational challenges can lead to service disruptions, increased costs for repairs and maintenance, and potential penalties for failing to meet reliability standards.

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The rapidly advancing and cost-competitive nature of Distributed Energy Resources (DERs), specifically rooftop solar and behind-the-meter battery storage, poses a clear emerging threat to WEC Energy. These technologies enable customers to generate and store their own electricity, significantly reducing their reliance on the utility for power supply and potentially for natural gas heating (through electrification of homes and appliances powered by self-generated electricity). If adopted on a large scale, this could lead to declining electricity and natural gas sales volumes, eroding WEC's traditional regulated revenue model based on commodity sales and asset utilization. This trend shifts power generation and storage from the centralized utility model to the customer edge, challenging the utility's role as the primary energy provider.

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WEC Energy Group (WEC) primarily provides electricity and natural gas services across four U.S. states: Wisconsin, Illinois, Michigan, and Minnesota. The addressable markets for their main products in these regions are as follows:

Electricity Market

• Wisconsin: In 2023, Wisconsin's total electricity supply, including internal production and imports, was approximately 73.4 million MWh. Total electricity consumption in the state was 69,425,395 MWh (estimated for 2025). WEC Energy's Wisconsin electric utility segment reported $2.83 billion in operating revenue in 2022.
• Illinois: Total retail electricity sales (consumption) in Illinois amounted to 130,578,217 MWh in 2023. The average residential electricity rate in Illinois is 15.59 cents per kWh.
• Michigan: The average electricity rate in Michigan is 19.35 cents per kWh. Electric demand in Michigan's electric choice program, in which WEC Energy's Upper Michigan Energy Resources Corp. participates, was 2,798 megawatts (MW) in 2023. This program is capped at 10% of a utility's average weather-adjusted retail sales.
• Minnesota: Minnesota's total electricity sales were 66,215,800 MWh in 2023.

Natural Gas Market

• Wisconsin: Customers in Wisconsin consume approximately 618.0 billion cubic feet (Bcf) of natural gas annually. Total natural gas consumption in the state was 584,322 MMCF (or 584.322 Bcf) in 2023. In 2015, the value of natural gas delivered to consumers in Wisconsin was $2.55 billion.
• Illinois: Customers in Illinois consume 1,063.0 Bcf of natural gas each year. In 2015, the total value of natural gas delivered to consumers in Illinois was $5.97 billion.
• Michigan: Customers in Michigan consume 1,001.0 Bcf of natural gas each year. Natural gas demand in Michigan is projected to increase by 3.5% in 2025.
• Minnesota: Minnesota consumes approximately 450 Bcf of natural gas annually. Total natural gas consumption in Minnesota was 507,275 MMCF (or 507.275 Bcf) in 2022. The value of natural gas delivered to consumers in Minnesota was $2.5 billion in 2015.

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WEC Energy (symbol: WEC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Significant Capital Investment Program: WEC Energy has substantially increased its five-year capital plan for 2026-2030 to $36.5 billion, an $8.5 billion increase from its previous plan. This extensive investment in regulated assets is projected to expand the company's tariff base and ensure profitable returns.

2. Increased Electric Demand from Economic Development: The company anticipates robust growth in electric demand, particularly fueled by significant economic development in its service area, including major data center projects like Microsoft's Mount Pleasant and Vantage Data Centers' Port Washington campuses. WEC projects an increase of 3.4 gigawatts in electric demand between 2026 and 2030.

3. Expansion of Renewable Energy and Battery Storage: A considerable portion of WEC's capital plan is dedicated to developing and owning new renewable energy capacity, including solar, wind, and battery storage technologies. This strategic shift towards clean energy sources is expected to not only meet environmental goals but also contribute to long-term revenue growth by reducing future operating costs.

4. Modernization of Natural Gas Infrastructure: WEC plans to invest in modern, efficient natural gas generation, liquefied natural gas (LNG) facilities, and enhancements to its natural gas distribution system. These investments are deemed crucial for ensuring reliability, meeting peak demand, and supporting the company's broader energy transformation strategy.

5. Asset-Based Growth through Rate Base Expansion: The substantial capital expenditures are directly linked to an anticipated expansion of WEC Energy's asset base. As a regulated utility, this asset-based growth translates into an increased rate base, which allows for higher revenue generation through approved tariffs. The company projects an average annual asset-based growth rate of just over 11%.

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Share Repurchases

• WEC Energy Group does not consider share buybacks a primary capital allocation strategy, focusing resources on projects and dividends.
• However, the company reported purchases of common stock totaling $3.2 million for the nine months ended September 30, 2024, and $10.7 million for the same period in 2023.
• In 2023, the net purchase of common stock was $3.2 million.

Share Issuance

• WEC Energy Group plans to issue approximately $5 billion in common equity over five years (2026-2030), with $900 million to $1.1 billion expected in 2026, to help fund its accelerated capital plan.
• The company entered into an equity distribution agreement in October 2025, allowing it to offer and sell up to $3.0 billion of its common stock over time.
• For the nine months ended September 30, 2024, the issuance of common stock was $51.0 million. In 2023, the net issuance of common stock was $163.4 million.

Outbound Investments

• WEC Energy Group holds an approximate 60% equity interest in American Transmission Company (ATC), an electric transmission company.
• The company expects its share of ATC's projected capital expenditures to be approximately $4.1 billion over the next five years (2026-2030).
• In February 2025, WEC Energy Group invested $406.1 million in its non-utility energy infrastructure business through the acquisition of Hardin III.

Capital Expenditures

• WEC Energy Group has announced a $36.5 billion capital expenditure program for 2026-2030, an increase of $8.5 billion from its previous five-year plan, largely driven by surging data center demand.
• This plan includes an estimated $32.4 billion for regulated utility businesses and $4.1 billion for ATC projects from 2026 to 2030, with a focus on new power generation, reliability, resilience, and expanding regulated infrastructure.
• Key investment areas from 2026-2030 include $3.4 billion in modern natural gas generation, $2.5 billion in renewables and battery storage, and $2 billion in electric and natural gas distribution networks.