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Illinois settlement lifts WEC Energy (NYSE: WEC) 2025 charge to $205M

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

WEC Energy Group says its Illinois gas utilities, The Peoples Gas Light and Coke Company and North Shore Gas Company, have agreed to a proposed settlement with the Illinois Attorney General that would resolve all open proceedings tied to infrastructure and uncollectible expense riders, if approved by the Illinois Commerce Commission after a public review.

Under the terms, Peoples Gas would permanently remove $130.0 million of qualified infrastructure investment from rate base starting in 2027 and provide $75.0 million in customer bill credits over 2026-2028. Peoples Gas and North Shore Gas would also provide $49.0 million and $1.0 million, respectively, in additional bill credits over 2026-2028. As a result, WEC Energy plans to record a $205 million, or $0.46 per share, charge in 2025, up from the previously expected $150 million, and reports that the combined rate base reduction and bill-credit obligation recorded on its December 31, 2025 balance sheet is $255.0 million.

Positive

  • None.

Negative

  • $205 million pre-tax charge in 2025 (or $0.46 per share) tied to the Illinois settlement, higher than the previously expected $150 million charge, representing a material negative impact on near-term earnings.
  • Permanent removal of $130.0 million of qualified infrastructure investment from rate base starting in 2027, which will reduce future regulated returns from WEC Energy’s Illinois gas operations.
  • Customer bill credits totaling $125.0 million across Peoples Gas and North Shore Gas over 2026-2028, adding to the overall financial burden associated with resolving the Illinois proceedings.

Insights

Illinois settlement raises WEC’s 2025 charge to $205M and reduces future rate base.

The proposed Illinois settlement would resolve multi-year proceedings on infrastructure and uncollectible expense riders for Peoples Gas and North Shore Gas. It requires permanently removing $130.0 million of infrastructure investment from rate base starting in 2027, directly trimming future regulated earnings on those assets.

Customer relief is substantial: Peoples Gas will provide $75.0 million in bill credits for 2026-2028, plus $49.0 million related to uncollectible expenses; North Shore adds another $1.0 million. WEC now expects a $205 million, or $0.46 per share, charge for 2025, compared with a previously expected $150 million charge.

The company states that the combined rate base reduction and bill-credit obligation recorded on its balance sheet at December 31, 2025 is $255.0 million. Overall, this represents a meaningful, non-recurring hit to near-term earnings and moderates long-term returns from the affected Illinois gas operations, contingent on Illinois Commerce Commission approval.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):

February 3, 2026
____________________
Commission
File Number
Registrant; State of Incorporation;
Address; and Telephone Number
IRS Employer
Identification No.
001-09057WEC ENERGY GROUP, INC.39-1391525
(A Wisconsin Corporation)
231 West Michigan Street
P.O. Box 1331
Milwaukee, WI 53201
(414) 221-2345


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 Par ValueWECNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
                            
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 3, 2026, The Peoples Gas Light and Coke Company (“PGL”) and North Shore Gas Company (“NSG”), Illinois utility subsidiaries of WEC Energy Group, Inc. (“WEC Energy”), agreed on the terms of a proposed settlement (the “Settlement Agreement”) with the People of the State of Illinois, by and through Kwame Raoul, Attorney General of the State of Illinois, that, if approved by the Illinois Commerce Commission following a public review process, would resolve all open proceedings in Illinois related to the Qualifying Infrastructure Plant rider (the “QIP Proceedings”) and the Uncollectible Expense Adjustment rider (the “UEA Proceedings”). The QIP Proceedings include reconciliations from 2017 to 2023 when the rider sunset, and the UEA Proceedings include reconciliations from 2019 to 2023. In order to resolve the QIP Proceedings, PGL agreed to permanently remove $130.0 million of qualified infrastructure investment costs from rate base starting in 2027 and to distribute $75.0 million to its customers as bill credits over the three year period 2026-2028. PGL and NSG agreed to distribute $49.0 million and $1.0 million, respectively, to customers as bill credits over the three year period 2026-2028, to resolve the UEA Proceedings.

Due to the Settlement Agreement, WEC Energy’s 2025 financial results will reflect the impact of a $205 million, or $0.46 per share, charge rather than the $150 million charge that WEC Energy previously reported it expected to record in 2025. The total of the rate base reduction and the obligation to distribute bill credits recorded on our balance sheet at December 31, 2025 is $255.0 million.

Forward-Looking Statements

Certain statements contained in this Current Report on Form 8-K are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management’s current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management’s expectations and projections regarding earnings and earnings per share, future results, and regulatory decisions. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “guidance,” “intends,” “may,” “objectives,” “plans,” “possible,” “potential,” “projects,” “should,” “targets,” “will” or similar terms or variations of these terms.

Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company’s service territories; timing, resolution and impact of rate cases and other regulatory decisions, including rider reconciliations; the company’s ability to continue to successfully integrate the operations of its subsidiaries; availability of the company’s generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; unusual, varying or severe weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; electrification initiatives, mandates and other efforts to reduce the use of natural gas; the company’s ability to successfully acquire and/or dispose of assets and projects and to execute on its capital plan, including projects related to providing services to data centers and other large-scale customers; terrorist, physical or cyber-security threats or attacks and data security breaches; construction risks; labor disruptions; equity and bond market fluctuations; changes in the company’s and its subsidiaries’ ability to access the capital markets; changes in tax legislation or our ability to use certain tax benefits and carryforwards; changes in and uncertainty around federal, state, and local legislation and regulation, including changes in rate-setting policies or procedures and environmental standards, in the enforcement of these laws and regulations and in the interpretation of regulations or permit conditions by regulatory agencies; supply chain disruptions; inflation; political or geopolitical developments, including impacts on the global
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economy, supply chain and fuel prices, generally, including as a result of changes to U.S. and foreign government trade policies, or from ongoing, escalating, or expanding regional or international conflicts; the impact from any health crises, including epidemics and pandemics; current and future litigation and regulatory investigations, proceedings or inquiries; the ability of the Company to successfully and/or timely adopt new technologies, including artificial intelligence; changes in accounting standards; the financial performance of the American Transmission Company as well as projects in which the company’s energy infrastructure business invests; the ability of the company to obtain additional generating capacity at competitive prices; goodwill and its possible impairment; and other factors described under the heading “Factors Affecting Results, Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations and under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” contained in WEC Energy’s Form 10-K for the year ended December 31, 2024, and in subsequent reports filed with the Securities and Exchange Commission. Except as may be required by law, WEC Energy expressly disclaims any obligation to publicly update or revise any forward-looking information.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WEC ENERGY GROUP, INC.
(Registrant)
/s/ William J. Guc
Date: February 3, 2026William J. Guc – Vice President and Controller





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FAQ

What did WEC Energy Group (WEC) announce regarding its Illinois utilities?

WEC Energy Group announced that its Illinois gas utilities, Peoples Gas and North Shore Gas, agreed to a proposed settlement with the Illinois Attorney General. If approved by the Illinois Commerce Commission, it would resolve all open proceedings related to infrastructure and uncollectible expense riders.

How will the Illinois settlement affect WEC Energy’s 2025 financial results?

The settlement will increase WEC Energy’s expected 2025 charge to $205 million, or $0.46 per share, versus the previously expected $150 million. This represents a significant negative adjustment to the company’s reported earnings for that year.

What rate base changes are included in the WEC Energy Illinois settlement?

Peoples Gas agreed to permanently remove $130.0 million of qualified infrastructure investment from rate base starting in 2027. This reduction lowers the asset base on which regulated returns are earned, moderating future earnings from the Illinois gas business.

How much in customer bill credits will WEC’s Illinois utilities provide?

Peoples Gas will provide $75.0 million in bill credits over 2026-2028 for infrastructure issues, plus $49.0 million for uncollectible expenses. North Shore Gas will add $1.0 million in bill credits, bringing total customer credits in Illinois to $125.0 million.

What total obligation has WEC Energy recorded from the Illinois settlement?

WEC Energy reports that the combined rate base reduction and obligation to distribute customer bill credits recorded on its balance sheet at December 31, 2025 is $255.0 million. This reflects the financial impact of resolving the Illinois rider proceedings.

Is the WEC Energy Illinois settlement already final and approved?

No. The settlement is a proposed agreement among Peoples Gas, North Shore Gas, and the Illinois Attorney General. It still requires review and approval by the Illinois Commerce Commission following a public process before it becomes effective.
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