Long-Term Debt

12 Months Ended

Dec. 31, 2023

The following table is a summary of our long-term debt outstanding (excluding finance leases) as of December 31:


	2023					2022
(in millions)	Maturity Date	Weighted Average Interest Rate		Balance		Weighted Average Interest Rate		Balance
WEC Energy Group Senior Notes (unsecured) (1)	2024-2033	3.68	%	$	5,320.0	2.44	%	$	3,970.0
WEC Energy Group Junior Notes (unsecured) (1) (2)	2067	7.75	%	500.0		6.72	%	500.0
WE Debentures (unsecured)	2024-2095	4.22	%	3,285.0		4.22	%	3,285.0
WEPCo Environmental Trust (secured, nonrecourse) (5) (9)	2024-2035	1.58	%	97.0		1.58	%	105.9
WPS Senior Notes (unsecured)	2025-2051	4.11	%	1,975.0		4.11	%	1,975.0
WG Debentures (unsecured)	2024-2046	3.35	%	790.0		3.35	%	790.0
Integrys Junior Notes (unsecured)	2073	—	%	—		6.00	%	221.4
PGL First and Refunding Mortgage Bonds (secured) (3)	2024-2047	3.53	%	2,070.0		3.41	%	1,970.0
NSG First Mortgage Bonds (secured) (4)	2027-2043	3.81	%	177.0		3.56	%	157.0
MERC Senior Notes (unsecured)	2025-2047	3.04	%	210.0		3.04	%	210.0
MGU Senior Notes (unsecured)	2025-2047	3.18	%	150.0		3.18	%	150.0
UMERC Senior Notes (unsecured)	2029	3.26	%	160.0		3.26	%	160.0
Bluewater Gas Storage Senior Notes (unsecured) (5)	2024-2047	3.76	%	109.8		3.76	%	112.6
ATC Holding Senior Notes (unsecured)	2025-2030	4.05	%	475.0		4.05	%	475.0
We Power Subsidiaries Notes (secured, nonrecourse) (5) (6)	2024-2041	5.65	%	856.4		5.62	%	896.5
WECC Notes (unsecured)	2028	6.94	%	50.0		6.94	%	50.0
WECI Wind Holding I Senior Notes (secured, nonrecourse) (5) (7)	2024-2032	2.75	%	307.7		2.75	%	332.1
WECI Wind Holding II Senior Notes (secured, nonrecourse) (5) (8)	2024-2031	6.38	%	191.4		6.38	%	199.3
Total				16,724.3				15,559.8
Integrys acquisition fair value adjustment				—				1.2
Jayhawk acquisition				7.5				7.3
Unamortized debt issuance costs				(80.2)				(81.8)
Unamortized discount, net and other				(20.5)				(22.3)
Total long-term debt, including current portion (10)				16,631.1				15,464.2
Current portion of long-term debt				(1,264.2)				(808.5)
Total long-term debt				$	15,366.9			$	14,655.7

(1) In connection with our outstanding 2007 Junior Notes, we executed an RCC, which we amended on June 29, 2015, for the benefit of persons that buy, hold, or sell a specified series of our long-term indebtedness (covered debt). Our 6.20% Senior Notes due April 1, 2033 have been designated as the covered debt under the RCC. The RCC provides that we may not redeem, defease, or purchase, and that our subsidiaries may not purchase, any 2007 Junior Notes on or before May 15, 2037, unless, subject to certain limitations described in the RCC, we have received a specified amount of proceeds from the sale of qualifying securities. The terms of the RCC have been previously satisfied.

(2) Variable interest rates reset quarterly. The rates were 7.75% and 6.72% as of December 31, 2023 and 2022, respectively.

(3) PGL's First Mortgage Bonds are subject to the terms and conditions of PGL's First Mortgage Indenture dated January 2, 1926, as supplemented. Under the terms of the Indenture, substantially all property owned by PGL is pledged as collateral for these outstanding debt securities.

PGL has used certain First Mortgage Bonds to secure tax exempt interest rates. The Illinois Finance Authority has issued Tax Exempt Bonds, and the proceeds from the sale of these bonds were loaned to PGL. In return, PGL issued $100 million of collateralized First Mortgage Bonds.

(4) NSG's First Mortgage Bonds are subject to the terms and conditions of NSG's First Mortgage Indenture dated April 1, 1955, as supplemented. Under the terms of the Indenture, substantially all property owned by NSG is pledged as collateral for these outstanding debt securities.

(5) The long-term debt of Bluewater, WECI Wind Holding I, WECI Wind Holding II, WEPCo Environmental Trust, and We Power's subsidiaries requires periodic principal payments.

(6) We Power's subsidiaries' senior notes are secured by a collateral assignment of the leases between We Power's subsidiaries and WE related to PWGS and ERGS, as applicable.

(7) WECI Wind Holding I's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries, as well as a pledge of equity in WECI Wind Holding I.

(8) WECI Wind Holding II's Senior Notes are secured by a first priority security interest in the ownership interest of its subsidiaries, as well as a pledge of equity in WECI Wind Holding II.

(9) WEPCo Environmental Trust’s ETBs are secured by a pledge of and lien on environmental control property, which includes the right to impose, collect and receive a non-bypassable environmental control charge paid by all of WE's retail electric distribution customers, the right to obtain true-up adjustments of the environmental control charges, and all revenues or other proceeds arising from those rights and interests. See Note 23, Variable Interest Entities, for more information.

(10) The amount of long-term debt on our balance sheets includes finance lease obligations of $145.9 million and $183.2 million at December 31, 2023 and 2022, respectively.

We amortize debt premiums, discounts, and debt issuance costs over the life of the debt and we include the costs in interest expense.

In March 2022, President Biden signed into law the Adjustable Interest Rate (LIBOR) Act. This Act established a uniform process, on a nationwide basis, for replacing LIBOR in certain contracts that did not provide a clearly defined or practicable replacement benchmark rate. Under the LIBOR Act, the Federal Reserve Board was required to determine an appropriate benchmark replacement based on SOFR, with applicable credit spread adjustments. In December 2022, the Federal Reserve Board adopted the final rule to implement the LIBOR Act and established the SOFR-based benchmark replacements. No contract modifications were required for qualifying contracts under the LIBOR Act as the benchmark replacement automatically overrode the existing contract language and became the applicable benchmark after June 30, 2023.

For our $500 million of 2007 Junior Notes, starting August 15, 2023, the benchmark replacement rate is the applicable tenor of three-month CME Term SOFR, as administered by the CME Group Benchmark Administration, and includes a credit spread adjustment of 0.26161% per annum. In accordance with the LIBOR Act, no contract modifications were required for our 2007 Junior Notes as the references to LIBOR were replaced by operation of law.

WEC Energy Group, Inc.

In January 2023, we issued $650.0 million of 4.75% Senior Notes due January 9, 2026, and $450.0 million of 4.75% Senior Notes due January 15, 2028, and used the net proceeds to repay short-term debt and for other corporate purposes.

In April 2023, we issued an additional $350.0 million of our 4.75% Senior Notes due January 9, 2026, and used the net proceeds to repay short-term debt and for other corporate purposes.

In September 2023, we issued $600.0 million of 5.60% Senior Notes due September 12, 2026, and used the net proceeds to repay short-term debt and for other corporate purposes. Subsequently, we repaid the outstanding principal and accrued interest on our $700.0 million of 0.55% Senior Notes that matured on September 15, 2023.

In January and February, 2024, pursuant to a tender offer, we purchased $122.1 million aggregate principal amount of the $500.0 million outstanding of our 2007 Junior Notes for $115.2 million with proceeds from issuing commercial paper. We recorded a $6.9 million gain related to the early settlement.

Integrys Holding, Inc.

In March 2023, Integrys repurchased $18.9 million of the $221.4 million outstanding of its 6.00% 2013 Junior Notes, prior to maturity for $18.6 million. Integrys recognized an insignificant gain on the early extinguishment of debt due to the debt being repurchased at a discount.

On August 1, 2023, Integrys redeemed the remaining $202.5 million outstanding of its 6.00% 2013 Junior Notes, prior to maturity at par value.

The Peoples Gas Light and Coke Company

In November 2023, PGL issued $100.0 million of 5.82% First and Refunding Mortgage Bonds, Series NNN due April 1, 2029, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt.

North Shore Gas Company

In November 2023, NSG issued $20.0 million of 5.82% First Mortgage Bonds, Series T due April 1, 2029, and used the net proceeds for general corporate purposes, including capital expenditures and the refinancing of short-term debt.

Maturities of Long-Term Debt Outstanding

The following table shows the long-term debt securities (excluding finance leases) maturing within one year of December 31, 2023:


(in millions)	Interest Rate	Maturity Date (1)	Principal Amount
WEC Energy Group Senior Notes (unsecured)	0.80%	March	$	600.0
WG Debentures (unsecured)	2.38%	November	150.0
PGL Bonds (secured)	2.64%	November	75.0
WE Debentures (unsecured)	2.05%	December	300.0
WEPCo Environmental Trust (secured, nonrecourse)	1.58%	Semi-annually	9.0
Bluewater Gas Storage Senior Notes (unsecured)	3.76%	Semi-annually	2.9
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	4.91%	Monthly	8.0
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	5.209%	Semi-annually	15.5
We Power Subsidiaries Notes – ERGS (secured, nonrecourse)	4.673%	Semi-annually	11.7
We Power Subsidiaries Notes – PWGS (secured, nonrecourse)	6.00%	Monthly	7.0
WECI Wind Holding I Senior Notes (secured, nonrecourse)	2.75%	Semi-annually	61.3
WECI Wind Holding II Senior Notes (secured, nonrecourse)	6.38%	Semi-annually	23.8
Total			$	1,264.2

(1) Maturity dates listed as semi-annually and monthly are associated with debt that requires periodic principal payments.

The following table shows the future maturities of our long-term debt outstanding (excluding obligations under finance leases) as of December 31, 2023:


(in millions)	Payments
2024	$	1,264.2
2025	1,685.5
2026	1,726.8
2027	1,230.7
2028	2,307.2
Thereafter	8,509.9
Total	$	16,724.3

Certain long-term debt obligations contain financial and other covenants related to payment of principal and interest when due, maintaining certain total funded debt to capitalization ratios, and various other obligations. Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.