WEC · 10-Q · 2026Q2 · Full report

Operating Expense Trends

WEC ENERGY GROUP, INC. · 2026-08-04 · Importance 48 · Surprise 40 · No source text

Wisconsin other operating expenses increased $125.3 million year over year, including $49.3 million of higher regulatory amortizations and pass-through expenses, $37.0 million of higher depreciation and amortization, and $31.3 million of higher transmission expense. Wisconsin depreciation increased because assets were placed into service under the capital plan, while transmission expense rose under rate orders effective January 1, 2026. Illinois other operating expenses decreased $17.4 million net of rider effects, supported by an $11.9 million real-estate sale gain, a $10.9 million reduction in property and revenue taxes, and a $4.4 million decline in gas distribution and maintenance costs. Other states operating expenses increased $3.1 million, including $1.7 million of higher depreciation and $1.6 million of higher energy-optimization program costs.

Key facts

• Other operation and maintenance at the Wisconsin segment increased by $43.9 million during the second quarter of 2026 compared with the same quarter in 2025. source
• Other operation and maintenance at the Wisconsin segment was $910.1 million for the six months ended June 30, 2026. source
• Depreciation and amortization at the Wisconsin segment was $530.8 million for the six months ended June 30, 2026, an increase of $37.0 million versus 2025. source
• WECI had a $6.4 million reduction in operation and maintenance expenses in the second quarter of 2026 due primarily to fixed cost full service agreements in place in 2026 versus 2025. source
• Other operating expenses at the Wisconsin segment increased $65.8 million during the second quarter of 2026 compared with the same quarter in 2025. source
• Payments for property and revenue taxes increased $39.1 million during the six months ended June 30, 2026, driven by higher gross receipts taxes in Wisconsin, revenue taxes in Illinois, and property taxes for WECI. source
• Significant factors increasing Wisconsin other operating expenses included a $22.4 million increase in regulatory amortizations and other pass through expenses and a $17.9 million increase in depreciation and amortization expense. source

Impact estimates