WEC Energy (WEC) Q3 Earnings call transcript Oct 31, 2024
AInvestFriday, Nov 1, 2024 2:10 am ET
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WEC Energy Group held its third quarter 2024 earnings call, highlighting a solid performance and strategic plans for future growth. Here are the key takeaways from the call.

Financial Performance and Guidance

WEC Energy Group reported third quarter 2024 adjusted earnings of $0.82 per share, excluding a charge of $0.06 per share related to the disallowance of certain 2016 capital expenditures in Illinois. The company remains on track for a strong 2024, with earnings guidance for the year on an adjusted basis ranging from $4.80 to $4.90 per share, assuming normal weather conditions.

Capital Plan and Investments

WEC Energy Group announced a new five-year capital plan, which includes a record $28 billion investment in the period 2025-2029. This represents an increase of $4.3 billion over the previous plan, driven by economic growth in Southeastern Wisconsin and a focus on renewables and natural gas generation. The company plans to invest in solar, wind, and battery storage, as well as modern, efficient natural gas generation and liquefied natural gas capacity.

Regulatory Updates and Challenges

The call included updates on ongoing regulatory matters, with rate reviews in Wisconsin and Michigan progressing well. In Michigan, the Public Service Commission has approved settlements for both Michigan Gas Utilities and Upper Michigan Energy Resources, each with a return on equity of 9.86%. In Wisconsin, rate reviews are nearing completion, with decisions expected by the end of the year. The company also noted challenges in Illinois, where rate cases are ongoing and regulatory decisions are pending.

Market and Economic Developments

The call highlighted significant economic development in Wisconsin, including the expansion of Microsoft's data center complex and Amazon's warehouse operations. These developments, along with the company's capital plan, underscore the strength of the local economy and the need for infrastructure investments.

Outlook and Future Plans

Looking ahead, WEC Energy Group expressed confidence in its growth prospects, with a focus on executing the fundamentals of its business. The company plans to provide more details on its capital plan and financial projections at the EEI conference in a few weeks.

Analyst Questions and Management Responses

Analysts questioned the company on topics including capital expenditures, regulatory matters, and growth prospects. Management provided detailed responses, offering insights into the company's strategic plans, financial performance, and regulatory environment.

Overall, WEC Energy Group's earnings call provided a comprehensive update on the company's financial health, strategic plans, and regulatory landscape. With a strong focus on growth, capital investments, and regulatory compliance, the company is well-positioned for the future.

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