Regulatory Environment (Tables)

12 Months Ended

Dec. 31, 2023

Public Utilities, General Disclosures

The final orders reflected the following:


	WE					WPS					WG
2024 incremental rate increases (decreases)
Electric (1)	$	82.2	million	/	2.5%	$	(32.7)	million	/	(2.6)%	N/A
Gas	$	23.9	million	/	4.5%	N/A					$	21.6	million	/	2.8%

(1) Amounts reflect the impact to our Wisconsin retail electric operations and include any incremental increases (WE) or decreases (WPS) resulting from updated fuel costs.

2023 and 2024 Rates

Public Utilities, General Disclosures

Schedule of regulatory decisions

The final orders reflected the following:


	WE					WPS					WG
2023 base rate increase
Electric	$	283.5	million	/	9.1%	$	120.5	million	/	9.8%	N/A
Gas	$	46.1	million	/	9.6%	$	26.4	million	/	7.1%	$	46.5	million	/	6.4%
Steam	$	7.6	million	/	35.3%	N/A					N/A
ROE	9.8%					9.8%					9.8%
Common equity component average on a financial basis	53.0%					53.0%					53.0%

2020 and 2021 rates

Public Utilities, General Disclosures

Schedule of regulatory decisions


	WE					WPS					WG
2020 Effective rate increase (decrease)
Electric (1) (2)	$	15.3	million	/	0.5%	$	15.8	million	/	1.6%	N/A
Gas (3)	$	10.4	million	/	2.8%	$	4.3	million	/	1.4%	$	(1.5)	million	/	(0.2)%
Steam	$	1.9	million	/	8.6%	N/A					N/A

ROE	10.0%					10.0%					10.2%

Common equity component average on a financial basis	52.5%					52.5%					52.5%

(1) Amounts are net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impact. The WE and WPS rate orders reflected the majority of the unprotected deferred tax benefits from the Tax Legislation being amortized over two years. For WE, approximately $65 million of tax benefits were amortized in each of 2020 and 2021. For WPS, approximately $11 million of tax benefits were amortized in 2020 and approximately $39 million were amortized in 2021. The unprotected deferred tax benefits related to the unrecovered balances of certain of WE's retired plants and its SSR regulatory asset were used to reduce the related regulatory asset. Unprotected deferred tax benefits by their nature are eligible to be returned to customers in a manner and timeline determined to be appropriate by our regulators.

(2) The WPS rate order was net of $21 million of refunds related to its 2018 earnings sharing mechanism. These refunds were made to customers evenly over two years, with half returned in 2020 and the remainder returned in 2021.

(3) The WE amount includes certain deferred tax expense from the Tax Legislation, and the WPS and WG amounts are net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impact. The rate orders for all three gas utilities reflected all of the unprotected deferred tax expense and benefits from the Tax Legislation being amortized evenly over four years. For WE, approximately $5 million of previously deferred tax expense was amortized each year. For WPS and WG, approximately $5 million and $3 million, respectively, of previously deferred tax benefits was amortized each year. Unprotected deferred tax expense and benefits by their nature are eligible to be recovered from or returned to customers in a manner and timeline determined to be appropriate by our regulators.