What Does Wec Energy Stand For?

What is WEC Energy Group?

WEC Energy Group is a publicly traded holding company based in Milwaukee, Wisconsin. It provides electricity and natural gas to customers across Wisconsin, Illinois, Michigan and Minnesota. WEC Energy Group was formed in 2016 when Wisconsin Energy Corporation acquired Integrys Energy Group in a $9.1 billion merger deal (WEC History).

WEC Energy Group has roots dating back to the 1880s. Its electric utilities include We Energies, Wisconsin Public Service, Upper Michigan Energy Resources, and Peoples Gas. The company generates electricity from coal, natural gas, oil, solar, hydroelectric, wind and biomass. It delivers natural gas to approximately 1.6 million customers in Wisconsin, Illinois and Michigan (WEC Energy Group).

Today, WEC Energy Group is a Fortune 500 company providing essential energy services to over 4 million homes, businesses and other customers across the Midwest. It employs over 8,000 people and has assets totaling $35 billion as of 2018.

Utility Operations

WEC Energy Group’s utility operations are primarily based in Wisconsin and the upper peninsula of Michigan. The company’s main utility subsidiaries include:

• We Energies – Serves electric customers in Wisconsin and Michigan’s upper peninsula and natural gas customers in Wisconsin. We Energies is the trade name of Wisconsin Electric Power Company and Wisconsin Gas LLC. Service territory includes areas around Milwaukee, Green Bay, and Kenosha in Wisconsin. We Energies
• Wisconsin Public Service – Provides electric and natural gas service in northeastern, central and northwestern Wisconsin. Service territory centers on Green Bay and Wausau. Wisconsin Public Service
• Upper Michigan Energy Resources – Serves electric and natural gas customers in Michigan’s Upper Peninsula. Upper Michigan Energy Resources

Together these utility companies serve over 1.6 million electric customers and 1.1 million natural gas customers across nearly 12,000 square miles of service territory in Wisconsin and Michigan.

Power Generation

WEC Energy Group operates an array of power plants across Wisconsin, Michigan, and Minnesota to generate electricity. According to WEC Energy Group’s website, the company operates over 35 power plants with a capacity of over 8,500 megawatts of electricity
[1]. WEC’s generation mix consists of coal, natural gas, nuclear, hydroelectric, natural gas, biomass and solar. Some key power generation assets include:

• Coal: Oak Creek Power Plant, Elm Road Generating Station, and Columbia Energy Center
• Natural Gas: Fox Energy Center, Weston Power Plant, and Valley Power Plant
• Nuclear: Point Beach Nuclear Plant
• Renewables: Hydroelectric plants in Wisconsin and Michigan, biomass plants, and solar facilities

WEC Energy Group has invested significantly in modernizing its fleet of power plants. According to the company’s website, over 65% of its electricity now comes from low- or no-carbon sources like natural gas, nuclear, and renewables [2]. The company plans to reduce carbon emissions 80% by 2030 and eliminate coal from its generation mix by 2035.

Renewable Energy

WEC Energy Group has made significant investments in renewable energy sources like wind and solar power. According to their website, WEC has an 89-MW hydroelectric system at 13 dams owned by We Energies and an 82-MW hydroelectric system at 17 dams owned by Wisconsin Public Service. They also own 61-MW of biomass generating capacity.

WEC has set a goal to reduce carbon emissions by 60% by 2025 and be net carbon neutral by 2050. To help achieve this, they plan to invest $2 billion in new solar, wind and battery storage projects by 2025. Some of their major renewable energy projects include the 150-MW Badger Hollow solar farm in Wisconsin and the 300-MW Red Barn wind farm in South Dakota.

WEC Energy Group is committed to increasing their renewable energy portfolio while still providing reliable and affordable energy to customers. Their investments in clean energy sources like wind and solar will be key to reducing carbon emissions and fighting climate change.

Natural Gas Utilities

WEC Energy Group is the parent company of two major natural gas utilities: We Energies and Peoples Gas. Through these subsidiaries, WEC delivers natural gas to over 1.5 million residential, commercial and industrial customers across Wisconsin, Illinois and Michigan.

We Energies serves approximately 1.1 million natural gas customers in Wisconsin and Michigan’s Upper Peninsula. The company owns over 12,400 miles of natural gas distribution mains and service lines. We Energies also provides steam service to downtown Milwaukee.

Peoples Gas is the largest natural gas distributor in Illinois, serving over 871,000 customers in Chicago. The company maintains a network of over 5,300 miles of distribution mains to deliver natural gas to homes and businesses.

In addition to its utility operations, WEC owns WEC Infrastructure LLC which invests in natural gas pipeline and storage assets. This includes partial ownership of the Guardian Pipeline, which runs under Lake Michigan and connects Minnesota to Wisconsin.

Corporate Leadership

WEC Energy Group’s corporate leadership team includes experienced executives responsible for managing operations across the company’s family of utilities. The Chairman, President and CEO is Gale E. Klappa, who has led the company since 2004 (WEC Energy Group).

Other key executives include Scott Lauber, Senior Executive Vice President and CFO; Xia Liu, Executive Vice President and CFO; and Kevin Fletcher, President and CEO of Wisconsin Electric Power Company. The full management team consists of over a dozen experienced leaders overseeing various aspects of the business (We Energies).

The Board of Directors provides oversight and strategic guidance to management. It includes 12 members with expertise in areas like finance, risk management, and corporate leadership. Key board members are Chairman Gale Klappa, and directors like Danny Cunningham, William Mastoris, and Barbara Thompson (Board of directors).

Financial Performance

WEC Energy Group has seen steady revenue and profit growth over the last several years. In 2022, the company reported total operating revenues of $10.9 billion, an increase from $8.9 billion in 2020 (Investors – Financial info). Net income attributable to WEC Energy Group was $1.1 billion in 2022, up from $1.0 billion in 2021.

The company’s adjusted earnings per share have also increased consistently, going from $3.79 in 2020 to $4.52 in 2022 (2022 Annual Report). Over the past five years, WEC Energy Group’s stock price has risen from around $60 per share in 2017 to over $100 per share today.

WEC Energy Group has delivered 18 consecutive years of earnings growth. The company continues to make investments in infrastructure and technology to drive efficiency and better serve customers. Its financial strength provides a solid foundation for future growth.

Regulation

WEC Energy Group’s utility operations are subject to extensive regulation by federal, state and local regulatory agencies. The Public Service Commission of Wisconsin (PSCW) regulates WEC Energy Group’s Wisconsin utility operations, which serve approximately 71% of the consolidated utility customer base, with respect to retail rates, accounting, issuance of securities, wholesale competition, service area, and numerous other requirements.

The Federal Energy Regulatory Commission (FERC) regulates WEC Energy Group’s wholesale electric and natural gas operations. FERC approves tariffs that establish rates and pricing policies and governs various other matters, including the uniform systems of accounts, approval of mergers and acquisitions, interconnections, transmission of electric energy, asset transfers and sales, and certain other transactions with affiliated interests.

Compliance with these regulations directly impacts WEC Energy Group’s results of operations and financial condition. Changes to regulations or new interpretations of existing regulations may result in substantial cost increases that could affect the company’s ability to recover costs from its customers. However, WEC Energy Group has worked to maintain constructive regulatory relationships and mitigate regulatory lag.

For more details see:
Terms and Conditions | WEC

Philanthropy

WEC Energy Group has a strong commitment to supporting the communities it serves. Most of the company’s charitable giving is through the We Energies Foundation, which is funded by WEC Energy Group shareholders. In 2023, the We Energies Foundation provided over $25 million in charitable grants to nonprofit organizations across Wisconsin, Michigan’s Upper Peninsula, and Minnesota. The foundation focuses its giving on education, environment, arts and culture, and neighborhood development.

Some examples of WEC Energy Group’s community involvement include:

• Providing scholarships, learning tools, and hands-on STEM education for students
• Supporting community tree planting programs and urban ecology centers
• Donating to local United Way campaigns and arts organizations
• Investing in affordable housing initiatives

WEC Energy Group aims to be a force for good in the communities it operates in. The company encourages employees to volunteer and provides matching gifts for their contributions. Overall, WEC Energy Group’s corporate citizenship efforts reflect its values and commitment to neighbors.

The Future

WEC Energy Group has an ambitious plan for growth and investments in renewable energy over the next several years. According to the company’s Generation Reshaping Plan, WEC plans to invest $20.1 billion from 2022-2026, representing the largest 5-year capital plan in the company’s history.

A major component of this investment is expanding renewable energy and reducing carbon emissions. WEC aims to cut carbon emissions by 60% and eliminate all coal from its generation fleet by 2025 and 2030 respectively, as outlined in its 2022 Climate Report. The company plans to invest approximately $5.4 billion in renewable energy projects from 2022-2026.

WEC is aggressively growing its portfolio of solar, wind and battery storage projects. Some examples include the Koshkonong Solar Energy Center, Badger Hollow Solar Farm, and Paris Solar-Battery Park. WEC is also purchasing a portion of the Thunderhead Wind Energy Center in Nebraska. These investments showcase WEC’s commitment to clean energy and a more sustainable future.