XML 55 R40.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Schedule I - Condensed Parent Company Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2023
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE I - CONDENSED PARENT COMPANY FINANCIAL STATEMENTS | SCHEDULE I CONDENSED PARENT COMPANY FINANCIAL STATEMENTS WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY) A. INCOME STATEMENTS
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2023 |  | 2022 |  | 2021
Operating expenses (income) |  | $ | 2.5 |  |  | $ | (1.6) |  |  | $ | 12.0 |
Equity earnings of subsidiaries |  | 1,502.5 |  |  | 1,473.0 |  |  | 1,367.0 |
Other income, net |  | 19.6 |  |  | 2.4 |  |  | 1.7 |
Interest expense |  | 260.8 |  |  | 109.6 |  |  | 70.2 |
Loss on debt extinguishment |  | — |  |  | — |  |  | 23.1 |
Income before income taxes |  | 1,258.8 |  |  | 1,367.4 |  |  | 1,263.4 |
Income tax benefit |  | 72.9 |  |  | 40.7 |  |  | 36.9 |
Net income attributed to common shareholders |  | $ | 1,331.7 |  |  | $ | 1,408.1 |  |  | $ | 1,300.3 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. B. STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2023 |  | 2022 |  | 2021
Net income attributed to common shareholders |  | $ | 1,331.7 |  |  | $ | 1,408.1 |  |  | $ | 1,300.3 |
Other comprehensive income (loss), net of tax |  |  |  |  |  |
Derivatives accounted for as cash flow hedges |  |  |  |  |  |
Net derivative gain, net of tax |  | — |  |  | — |  |  | 0.6 |
Reclassification of realized net derivative (gain) loss to net income, net of tax |  | (0.3) |  |  | (0.3) |  |  | 0.9 |
Cash flow hedges, net |  | (0.3) |  |  | (0.3) |  |  | 1.5 |
Defined benefit plans |  |  |  |  |  |
Pension and OPEB adjustments arising during the period, net of tax |  | (0.2) |  |  | (0.8) |  |  | 0.4 |
Amortization of pension and OPEB costs included in net periodic benefit cost, net of tax |  | 0.1 |  |  | 0.2 |  |  | 0.3 |
Defined benefit plans, net |  | (0.1) |  |  | (0.6) |  |  | 0.7 |
Other comprehensive income (loss) from subsidiaries, net of tax |  | (0.5) |  |  | (2.7) |  |  | 1.4 |
Other comprehensive income (loss), net of tax |  | (0.9) |  |  | (3.6) |  |  | 3.6 |
Comprehensive income attributed to common shareholders |  | $ | 1,330.8 |  |  | $ | 1,404.5 |  |  | $ | 1,303.9 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. C. BALANCE SHEETS
At December 31 |  |  |  |
(in millions) |  | 2023 |  | 2022
Assets |  |  |  |
Current assets |  |  |  |
Accounts receivable from related parties |  | $ | 2.7 |  |  | $ | 0.7 |
Notes receivable from related parties |  | 16.0 |  |  | 30.9 |
Prepaid income taxes |  | — |  |  | 35.4 |
Other |  | 0.2 |  |  | 0.1 |
Current assets |  | 18.9 |  |  | 67.1 |
Long-term assets |  |  |  |
Investments in subsidiaries |  | 18,307.2 |  |  | 16,533.4 |
Note receivable from WECI |  | 430.0 |  |  | — |
Other |  | 22.9 |  |  | 24.2 |
Long-term assets |  | 18,760.1 |  |  | 16,557.6 |
Total assets |  | $ | 18,779.0 |  |  | $ | 16,624.7 |
Liabilities and Equity |  |  |  |
Current liabilities |  |  |  |
Short-term debt |  | $ | 697.0 |  |  | $ | 399.7 |
Current portion of long-term debt |  | 600.0 |  |  | 700.0 |
Accounts payable to related parties |  | 2.9 |  |  | 2.0 |
Notes payable to related parties |  | 459.6 |  |  | 332.5 |
Other |  | 73.2 |  |  | 31.8 |
Current liabilities |  | 1,832.7 |  |  | 1,466.0 |
Long-term liabilities |  |  |  |
Long-term debt |  | 5,192.8 |  |  | 3,747.2 |
Other |  | 29.3 |  |  | 34.6 |
Long-term liabilities |  | 5,222.1 |  |  | 3,781.8 |
Common shareholders' equity |  | 11,724.2 |  |  | 11,376.9 |
Total liabilities and equity |  | $ | 18,779.0 |  |  | $ | 16,624.7 |
The accompanying notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. D. STATEMENTS OF CASH FLOWS
Year Ended December 31 |  |  |  |  |  |
(in millions) |  | 2023 |  | 2022 |  | 2021
Operating activities |  |  |  |  |  |
Net income attributed to common shareholders |  | $ | 1,331.7 |  |  | $ | 1,408.1 |  |  | $ | 1,300.3 |
Reconciliation to cash provided by operating activities |  |  |  |  |  |
Equity income in subsidiaries, net of distributions |  | (566.8) |  |  | (437.4) |  |  | (571.3) |
Deferred income taxes, net |  | (3.8) |  |  | 11.6 |  |  | (1.9) |
Loss on debt extinguishment |  | — |  |  | — |  |  | 23.1 |
Change in – |  |  |  |  |  |
Accounts receivable from related parties |  | (2.0) |  |  | (0.1) |  |  | 0.1 |
Prepaid income taxes |  | 35.4 |  |  | 21.1 |  |  | (2.1) |
Other current assets |  | (0.1) |  |  | — |  |  | — |
Accounts payable to related parties |  | 0.9 |  |  | (3.5) |  |  | (26.2) |
Accrued interest |  | 42.1 |  |  | 15.4 |  |  | 0.4 |
Other current liabilities |  | (0.7) |  |  | (5.1) |  |  | 8.2 |
Other, net |  | 14.4 |  |  | 5.8 |  |  | (2.5) |
Net cash provided by operating activities |  | 851.1 |  |  | 1,015.9 |  |  | 728.1 |
Investing activities |  |  |  |  |  |
Capital contributions to subsidiaries |  | (1,807.4) |  |  | (1,099.7) |  |  | (734.0) |
Return of capital from subsidiaries |  | 175.2 |  |  | 372.9 |  |  | 196.1 |
Short-term notes receivable from related parties, net |  | 14.9 |  |  | (1.9) |  |  | 81.8 |
Other, net |  | — |  |  | (2.0) |  |  | (1.1) |
Net cash used in investing activities |  | (1,617.3) |  |  | (730.7) |  |  | (457.2) |
Financing activities |  |  |  |  |  |
Exercise of stock options |  | 6.3 |  |  | 33.6 |  |  | 15.7 |
Purchase of common stock |  | (16.6) |  |  | (69.2) |  |  | (33.1) |
Dividends paid on common stock |  | (984.2) |  |  | (917.9) |  |  | (854.8) |
Issuance of long-term debt |  | 2,050.0 |  |  | 900.0 |  |  | 1,100.0 |
Retirement of long-term debt |  | (700.0) |  |  | — |  |  | (300.0) |
Repayment of short-term loan |  | — |  |  | — |  |  | (340.0) |
Change in commercial paper |  | 297.3 |  |  | (336.4) |  |  | 255.7 |
Short-term notes payable to related parties, net |  | 127.1 |  |  | 112.1 |  |  | (82.6) |
Payments for debt extinguishment and issuance costs |  | (13.3) |  |  | (6.7) |  |  | (33.9) |
Other, net |  | (0.4) |  |  | (1.2) |  |  | (1.4) |
Net cash provided by (used in) financing activities |  | 766.2 |  |  | (285.7) |  |  | (274.4) |
Net change in cash and cash equivalents |  | — |  |  | (0.5) |  |  | (3.5) |
Cash and cash equivalents at beginning of year |  | — |  |  | 0.5 |  |  | 4.0 |
Cash and cash equivalents at end of year |  | $ | — |  |  | $ | — |  |  | $ | 0.5 |
The accompanying Notes to Condensed Parent Company Financial Statements are an integral part of these financial statements. SCHEDULE I CONDENSED PARENT COMPANY FINANCIAL STATEMENTS WEC ENERGY GROUP, INC. (PARENT COMPANY ONLY) E. NOTES TO PARENT COMPANY FINANCIAL STATEMENTS NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For Parent Company only presentation, investments in subsidiaries are accounted for using the equity method. We use the cumulative earnings approach for classifying distributions received in the statements of cash flows. The condensed Parent Company financial statements and notes should be read in conjunction with the consolidated financial statements and notes of WEC Energy Group, Inc. appearing in this Annual Report on Form 10-K. NOTE 2—CASH DIVIDENDS RECEIVED FROM SUBSIDIARIES Dividends received from our subsidiaries during the years ended December 31 were as follows:
(in millions) |  | 2023 |  | 2022 |  | 2021
WE |  | $ | 370.0 |  |  | $ | 630.0 |  |  | $ | 360.0 |
We Power |  | 192.8 |  |  | 158.5 |  |  | 217.9 |
WG |  | 171.0 |  |  | 60.0 |  |  | 30.0 |
WECI (1) |  | 93.7 |  |  | 87.7 |  |  | 46.4 |
ATC Holding (2) |  | 86.8 |  |  | 74.9 |  |  | 106.4 |
UMERC |  | 21.0 |  |  | 17.0 |  |  | — |
Wispark (3) |  | 0.4 |  |  | 7.5 |  |  | — |
Bluewater |  | — |  |  | — |  |  | 35.0 |
Total |  | $ | 935.7 |  |  | $ | 1,035.6 |  |  | $ | 795.7 |
(1) We also received amounts classified as return of capital of $171.6 million, $363.7 million, and $164.1 million from WECI during the years ended December 31, 2023, 2022, and 2021, respectively. (2) We also received an amount classified as return of capital of $32.0 million from ATC Holding during the year ended December 31, 2021. (3) We also received amounts classified as return of capital of $3.6 million and $9.2 million from Wispark during the years ended December 31, 2023 and 2022. NOTE 3—LONG-TERM DEBT The following table shows the future maturities of our long-term debt outstanding as of December 31, 2023:
(in millions) |  |
2024 |  | $ | 600.0 |
2025 |  | 620.0 |
2026 |  | 1,600.0 |
2027 |  | 900.0 |
2028 |  | 950.0 |
Thereafter |  | 1,150.0 |
Total |  | $ | 5,820.0 |
WECC is our subsidiary and has $50.0 million of long-term notes outstanding. In a Support Agreement between WECC and us, we agreed to make sufficient liquid asset contributions to WECC to permit WECC to service its debt obligations as they become due. NOTE 4—FAIR VALUE MEASUREMENTS The following table shows the financial instruments included on our balance sheets that are not recorded at fair value as of December 31:
|  | 2023 |  | 2022
(in millions) |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term notes receivable from WECI |  | $ | 430.0 |  |  | $ | 425.7 |  |  | $ | — |  |  | $ | — |
Long-term debt, including current portion |  | 5,792.8 |  |  | 5,596.0 |  |  | 4,447.2 |  |  | 4,095.6 |
The fair value of our long-term notes receivable and long-term debt are categorized within Level 2 of the fair value hierarchy. NOTE 5—GUARANTEES The following table shows our outstanding guarantees on behalf of our subsidiaries:
|  | Total Amounts Committed at December 31, 2023 |  | Expiration
(in millions) |  |  | Less Than 1 Year |  | 1 to 3 Years |  | Over 3 Years
Guarantees supporting business operations (1) |  | $ | 191.7 |  |  | $ | 14.4 |  |  | $ | — |  |  | $ | 177.3 |
Standby letters of credit (2) |  | 75.1 |  |  | 24.5 |  |  | — |  |  | 50.6 |
Surety bonds (3) |  | 33.6 |  |  | 33.6 |  |  | — |  |  | — |
Other guarantees (4) |  | 11.6 |  |  | — |  |  | — |  |  | 11.6 |
Total guarantees |  | $ | 312.0 |  |  | $ | 72.5 |  |  | $ | — |  |  | $ | 239.5 |
(1) Consists of $177.3 million, $10.2 million, and $4.2 million of guarantees to support the business operations of WECI, Bluewater, and UMERC, respectively. (2) At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. These amounts are not reflected on our balance sheets. (3) Primarily for environmental remediation, workers compensation self-insurance programs, and obtaining various licenses, permits, and rights-of-way. These amounts are not reflected on our balance sheets. (4) Related to workers compensation coverage for which a liability was recorded on our balance sheets. NOTE 6—SUPPLEMENTAL CASH FLOW INFORMATION
(in millions) |  | 2023 |  | 2022 |  | 2021
Cash paid for interest |  | $ | 209.1 |  |  | $ | 88.1 |  |  | $ | 70.2 |
Cash received for income taxes, net |  | (104.5) |  |  | (72.9) |  |  | (27.9) |
Significant non-cash equity transaction: |  |  |  |  |  |
Issuance of long-term note receivable to WECI |  | 430.0 |  |  | — |  |  | — |
NOTE 7—SHORT-TERM NOTES RECEIVABLE FROM RELATED PARTIES The following table shows our outstanding short-term notes receivable from related parties as of December 31:
(in millions) |  | 2023 |  | 2022
UMERC |  | $ | 15.2 |  |  | $ | 27.1 |
Wispark |  | 0.8 |  |  | 1.1 |
Bluewater |  | — |  |  | 2.7 |
Total |  | $ | 16.0 |  |  | $ | 30.9 |
NOTE 8—SHORT-TERM NOTES PAYABLE TO RELATED PARTIES The following table shows our outstanding short-term notes payable to related parties as of December 31:
(in millions) |  | 2023 |  | 2022
Integrys |  | $ | 257.0 |  |  | $ | 115.0 |
WECC |  | 109.2 |  |  | 106.5 |
WBS |  | 91.8 |  |  | 111.0 |
Bluewater |  | 1.6 |  |  | — |
Total |  | $ | 459.6 |  |  | $ | 332.5 |

X
- References No definition available. + Details
Name: | srt_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 205 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480922/205-10-S99-6 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481231/810-10-45-11 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration