Q2 2025 WEC Energy Group Inc Earnings Call

July 30, 2025

In listen only mode at this time.

After the presentation the conference will be open to analysts for questions and answers.

In conjunction with this call a package of detailed financial information is posted at WEC Energy group Dot Com a replay will be available approximately two hours. After the conclusion of this call.

Before the conference call begins please note that all statements in the presentation other than historical facts are forward looking statements that involve risks and uncertainties that are subject to change at any time such statements are based on management's expectations at the time. They are made in addition to the assumptions and other factors.

You referred to in conjunction with these with the statements factors described in WEC energy group's latest Form 10-K, and subsequent reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those.

Contemplate it.

During the discussions referenced earnings per share will be based on diluted earnings per share unless otherwise noted and it is now my pleasure to introduce Scott Lager, President and Chief Executive Officer of WEC Energy group.

Good afternoon, everyone. Thank you for joining us today as we review our results for the second quarter of 2025.

<unk> Shah, our Chief Financial Officer.

Rocker senior Vice President of corporate Communications and Investor Relations.

As you saw from our news release. This morning, we reported earnings of <unk> 76, a share for the second quarter of 2025.

We remain on track to deliver another year of strong results in line with our 2025 earnings guidance of $5 17.

The $5 27 a share.

This of course assumes normal weather for the remainder of the year.

We continue to target a 6.5% to 7% long term compound annual earnings growth rate supported by a robust capital plan and strong economic growth in our region.

In Wisconsin, the unemployment rate stands at three 2% continuing a long running trend below the national average.

And as we've discussed we're continuing to see strong.

And significant economic development in our region, especially along the I 94 corridor between Milwaukee and Chicago.

Just last month <unk>, one of the world's largest manufacturers of industrial products and robotics announced its moving from the companies the company's U S headquarters to Wisconsin.

And consolidating manufacturing operations here, the company's stated plans to invest approximately $180 million to build this new campus, which is expected to create 700 jobs.

Work continues on Microsoft Data Center campus South of Milwaukee.

We remain confident in our five year demand growth forecast of 1.8 gigawatts to serve the I 94 corridor.

In addition, we're seeing progress for a large data center development, just north of Milwaukee.

Vantage data centers signed on to develop approximately.

19 800 acres.

The project is in the early stages. The state has the potential to reach three five gigawatts of demand over time.

As a reminder, this project is not included in our current demand forecast.

These are just samples of the economic growth that we're seeing in our region and just recently the Wall Street Journal reported that ADP ranked Milwaukee second among metro areas in the U S for college graduates landing jobs.

Turning to our capital plan during the second quarter, we continue to move forward on major projects.

As you know is the largest five year investment plan in our history.

Totaling $28 billion in supporting economic growth and reliability.

It's based on projects that are low risk and highly executable.

Many of you have asked about the potential impact of the one big beautiful bill lack the.

The wind and solar front, we are actively working on completing the safe harboring of renewable projects in our five year capital plan under the current Treasury guidance. We are awaiting further guidance from the Treasury Department to reflect the executive order issued in early July.

As these rules become available we will of course continue to work closely with our developers to achieve safe Harbor.

Now let me give you an update on projects currently underway.

In May the public service Commission of Wisconsin unanimously approved our application to build modern efficient natural gas generation and storage.

We have started construction on the 1100 megawatt simple cycle combustion turbines with an expected investment of $1 2 billion.

These are located at our Oak Creek power plant site.

Also new Yorks existing Paris generation station, we plan to invest approximately $300 million for 128 megawatts of Reis generation.

To support the Oak Creek site. Just this month, we received verbal approval to build a two bcf storage facility for liquefied natural gas.

We expect the investment is approximately a $456 million to complete this LNG facility by the end of 2027.

These are critical projects are part of our all of the above approach to support reliable and affordable energy for our customers.

To that end, we announced in June that we plan to extend the operating life of units seven and eight of our Oak Creek plant through 2026.

These are coal units that continue to provide essential capacity at times of high energy demand and the hottest and coldest days of the year. In addition, we expect they will be needed to meet tightened energy supply requirements in the Midwest power market.

Progress continues on our renewable projects as well in June the battery portion of the Paris Solar Battery Park came online providing 110 megawatts of storage. This is Wisconsin first large scale battery storage project.

As a reminder, we are at the 90% owner owes.

Overall, we are confident in our ability to execute on our capital plan.

Now turning to the regulatory front, we currently have no active rate cases.

In Wisconsin, our very large customer or VLC tariff remains with the public service Commission for review.

As we discussed last quarter. The tariff is designed to meet the needs of our very large load customers, while protecting all of our other customers.

The tariff would provide for a fixed return on equity of 10.48% and an equity ratio of 57%.

The terms of the agreement are 20 years for wind and solar and the depreciable lives for natural gas and battery storage assets.

We worked with our very large customers in designing the tariff, including the financial parameters and we believe the tariff is a key component to help make Wisconsin, a prime spot for data center investments.

We expect a commission decision by the second quarter of next year.

In Chicago, we are actively mapping out engineering and permitting plans and coordinating with the city for our pipe replacement program.

Recall that the Illinois Commerce Commission directed us to focus on retiring all cast iron and ductile iron pipe with a diameter under 36 inches by January one 2035.

We expect that approximately 1100 miles of older pipe will be needed to be replaced.

While planning is underway.

It continues in fact this April April we retired the oldest pipe in the system a gas main that had been in service since $18 61.

Next up Sean I'll provide you with more details on our financials.

Thank you Scott our second quarter 2025 earnings of 76.

776 cents per share reflects a 9% increase compared to the second quarter of 2024.

Our earnings package includes a comparison of second quarter results on page 15.

I'll walk through the significant drivers.

Starting with our utility operations.

<unk> were 16% higher versus the second quarter of 2024.

Weather positively impacted quarter over quarter earnings by <unk>.

<unk> four things.

Compared to normal conditions, we estimate that weather had a favorable.

Favorable impact in the second quarter of 2025 compared to a <unk> <unk> negative impact in the second quarter of 2024.

Great base growth contributed 12 more to earnings.

Additionally, timing of fuel expense tax and other items added another seven cents.

These positive drivers were partially offset by <unk> <unk> from higher depreciation and amortization expense and two from higher day to day O&M.

As shared before we still expect for O&M expense to grow 8% to 10% for the full year when compared to actual O&M in 2024.

As a reminder, this year over year growth is largely driven by a few factors, including our continued focus on commission approved vegetation management, new assets placed in service and measures. We took last year to offset the mild weather impact.

And let me also give you some color on our weather normal retail electric deliveries.

Excluding the iron ore mine compared to the second quarter of 2024, we saw a one 1% growth in retail electric delivery.

Xia Liu: Over-year growth is largely driven by a few factors, including our continued focus on commission-approved vegetation management, new assets placed in service, and measures we took last year to offset the mild weather impact. And let me also give you some color on our weather-normal retail electric deliveries. Excluding the Orange or mine, compared to the second quarter of 2024, we saw a 1.1% growth in retail electric deliveries, led by the large commercial and industrial segment, which grew 1.9% quarter over quarter. The residential and small commercial and industrial segments grew 0.4% and 1% respectively when compared to the second quarter of last year. Overall, we're on track for our annual growth forecast. Remember, we expect our annual electric sales growth to be 4.5% to 5% for the period 2027 through 2029.

Led by the large commercial and industrial segment, which grew one 9% quarter over quarter.

A few factors.

<unk> our continued focus on commission approved vegetation management, new assets placed in service and measures. We took last year to offset the mild weather impact.

The residential and small commercial and industrial segment grew 0.4, and 1% respectively, when compared to the second quarter of last year.

And let me also give you some color on our weather normal retail electric deliveries.

Overall, we're on track for our annual growth forecast.

That's excluding the iron ore mine compared to the second quarter of 'twenty 'twenty four we saw a one 1% growth in retail electric deliveries.

Remember, we expect our annual electric sales growth to be four 5% to 5% for the period 2027 through 2029.

Led by the large commercial and industrial assessment, which grew one 9% quarter over quarter.

Turning to American transmission company capital investment growth contributed an incremental penny to Q2 earnings compared to 2024.

The residential and small commercial and industrial segment grew 0.4, and 1% respectively, when compared to the second quarter of last year.

And at our energy infrastructure segment earnings decreased three in the second quarter of 25 compared to the second quarter of 'twenty four.

Overall, we're on track for our annual growth forecast.

Higher production tax credits were more than offset by other factors, including a loss from storm damage I can't night in the second quarter of 2025.

Remember, we expect our annual electric sales growth to be four 5% to 5% for the period 2027 through 2029.

Next you'll see that earnings from the corporate and other segment decreased three seven.

Turning to American transmission company capital investment growth contributed an incremental penny to Q2 earnings compared to 2024.

Xia Liu: Turning to American Transmission Company, capital investment growth contributed an incremental penny to Q2 earnings compared to 2024. And at our energy infrastructure segment, earnings decreased 3 cents in the second quarter of '25 compared to the second quarter of '24. Higher production tax credits were more than offset by other factors, including a loss from storm damage recognized in the second quarter of 2025. Next, you'll see that earnings from the corporate and other segments decreased 3 cents, driven by higher interest expense. In terms of common equity, we issued about $425 million through the first half of this year via our ATM program, as well as the dividend reinvestment and employee benefit plans. We're on track to issue a total of $700 to $800 million for this year.

Driven by higher interest expense.

In terms of common equity, we issued about $425 million through the first half of this year via our ATM program as well as the dividend reinvestment and employee benefit plans.

And at our energy infrastructure segment earnings decreased three cents in the second quarter of 25 compared to the second quarter of 'twenty four.

Higher production tax credits were more than offset by other factors, including a loss from storm damage I can't night in the second quarter of 2025.

We're on track to issue a total of $700 million to $800 million for this year.

This is part of the two seven to $3 $2 billion total common equity, we expect to issue through 2029 to finance the capital investment.

Next you'll see that earnings from the corporate and other segment decreased 3% driven by higher interest expense.

Consistent with what we shared before as we refresh our capital plan. This fall we continue to expect any incremental capital will be funded with 50% equity content.

In terms of common equity, we issued about $425 million through the first half of this year via our ATM program as well as the dividend reinvestment and employee benefit plans.

Finally, let me comment on guidance.

We're on track to issue a total of $700 million to $800 million for this year.

As Scott mentioned earlier, we are reaffirming our 2025 earnings guidance of $5 17 to $5 27 per share assuming normal weather for the rest of the year.

This is part of the two seven to $3 $2 billion total common equity, we expect to issue through 'twenty 'twenty nine to finance the capital investment.

Xia Liu: This is part of the $2.7 to $3.2 billion total common equity we expect to issue through 2029 to finance the capital investment. Consistent with what we shared before, as we refresh our capital plan this fall, we continue to expect any incremental capital will be funded with 50% equity content. Finally, let me comment on guidance. As Scott mentioned earlier, we are reaffirming our 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather for the rest of the year. We're also reaffirming our long-term EPS CAGR of 6.5 to 7%. For the third quarter, we're expecting a range of 74 to 80 cents per share. This accounts for July weather and assumes normal weather for the rest of the quarter. We look forward to updating you in the fall as we refresh our capital and financing plan. With that, I'll turn it back to Scott.

We are also reaffirming our long term EPS CAGR of six 5% to 7%.

Consistent with what we shared before as we refresh our capital plan. This fall we continue to expect any incremental capital will be funded with 50% equity content.

For the third quarter, we're expecting a range of 74 to 80 per share.

This accounts for July weather and assumes normal weather for the rest of the quarter.

Finally, let me comment on guidance.

We look forward to updating you in the fall as we refresh our capital and financing plan.

As Scott mentioned earlier, we are reaffirming our 2025 earnings guidance of $5 17 to $5 27 per share assuming normal weather for the rest of the year.

With that I'll turn it back to Scott. Thank you sure. Finally, a quick reminder, about the dividend.

Our annualized dividend stands at $3 57 per share we continue to target a payout ratio of 65% to 70% of earnings.

We're also reaffirming our long term EPS CAGR of six 5% to 7%.

For the third quarter, we're expecting a range of 74 to 80 cents per share.

Tracking in that range now and expect the dividend growth will continue to be in line with the growth in our earnings per share overall, we're optimistic about continued growth in our region and our company's future. Operator, we're now ready for the question and answer portion of the call.

This accounts for July the weather and assumes normal weather for the rest of the quarter.

We look forward to updating you in the fall as we refresh our capital and financing plan.

With that I'll turn it back to Scott. Thank you sure. Finally, a quick reminder, about the dividend our annualized dividend stands at $3 57 per share we continue to target a payout ratio of 65% to 70% of earnings we're tracking in that range now and expect the dividend growth will.

Now we will take your questions. The question and answer session will be conducted electronically to ask a question. Please press the star key followed by the digit one on your phone.

Scott Lauber: Thank you, Shaw. Finally, a quick reminder about the dividend. Our annualized dividend stands at $3.57 per share. We continue to target a payout ratio of 65% to 70% of earnings. We're tracking in that range now and expect the dividend growth will continue to be in line with the growth in our earnings per share. Overall, we're optimistic about continued growth in our region and our company's future. Operator, we are now ready for the question and answer portion of the call.

If you are using a speaker phone turn off your mute function to allow your signal to reach our equipment.

We'll take as many questions as time permits once again press star and the number one on your phone to ask a question.

Continue to be in line with the growth in our earnings per share overall, we're optimistic about continued growth in our region and our company's future. Operator, we're now ready for the question and answer portion of the call.

Yes.

Our first question comes from the line of Nicholas Campanella with Barclays. Please go ahead.

Now we will take your questions. The question and answer session will be conducted electronically to ask a question. Please press the star key followed by the digit one on your phone.

Operator: Now we will take your questions. The question and answer session will be conducted electronically. To ask a question, please press the star key followed by the digit one on your phone. If you are using a speakerphone, turn off your mute function to allow your signal to reach our equipment. We will take as many questions as time permits. Once again, press star and the number one on your phone to ask a question. Our first question comes from the line of Nicholas Campanella with Barclays. Please go ahead.

Hey, good afternoon, everyone and thanks for taking my question.

Absolutely Nick how are you.

I'm good I'm, good I hope you're doing well.

So so great great to see the economic development activity, especially with vantage and.

If you are using a speaker phone turn off your mute function to allow your signal to reach our equipment, we will take as many questions as time permits once again press star and the number one on your phone to ask a question.

I was just wondering if you can maybe talk about the three five gigs of demand and how youre thinking about procuring generation for that just where does the system stand today in terms of being long or short capacity and energy.

Our first question comes from the line of Nicholas Campanella with Barclays. Please go ahead.

Just given the lead time to build new assets, just how are you kind of thinking about being able to.

Hey, good afternoon, everyone and thanks for taking my question.

Nicholas Campanella: Hey, good afternoon, everyone. Thanks for taking my question.

To supplement that demand with either a bilateral contract or maybe a new newbuild asset. Thanks.

Scott Lauber: Absolutely, Nick. How are you?

Absolutely Nick how are you so.

Nicholas Campanella: So, I'm good. I'm good. Hope you're doing well. So, great to see the economic development activity, especially with Vantage. And I was just wondering if you can maybe talk about the 3.5 gigs of demand and how you're thinking about procuring generation for that. Just where does the system stand today in terms of being long or short capacity and energy? And you know, just given the lead time to build new assets, just how are you kind of thinking about being able to supplement that demand with either, you know, a bilateral contract or maybe a new build asset?

I'm good I'm, good I hope you're doing well.

So so great great to see the economic development activity, especially with vantage than.

Sure Great question, and and we are actively working with our large customers as their demand looks an advantage that's a longer term.

I was just wondering if you can maybe talk about the three and a half gigs of demand and how youre thinking about procuring generation for that just where does the system stand today in terms of being long or short capacity and energy.

<unk> is three five gigawatts that safe capacity can be there. We're looking now what is the short term and working with them with our plans.

Just given the lead time to build new assets, just how are you kind of thinking about being able to.

And they've said, they're trying to get to about a one three gigawatts by the end of 2007. So we're actively working with them and what I mean that is.

Supplement that demand with either a bilateral contract or maybe a new newbuild asset. Thanks.

Working on purchase cancellation agreements with them and how do we get orders in place. So we're looking at a variety of items here because of the system here is.

Scott Lauber: Thanks. Sure. No, great question. And we are actively working with our large customers as that demand looks. And in Vantage, that site longer term is 3.5 gigawatts. That site capacity can be there. We're looking now, you know, what is the short term and working with them with our plans. And they've said they're trying to get to about 1.3 gigawatts by the end of '27. So we're actively working with them. And we mean that is, you know, working on purchase cancellation agreements with them and how do we get orders in place. So we're looking at a variety of items here because the system here is very tight. As you can see, we extended the coal units for another year because of the tight capacity. And those coal units will be retired as we bring on those new CTs.

Sure Great question, and we are actively working with our large customers as their demand looks an advantage that's a longer term.

Is very tight as you can see we extended the coal units for another year, because let's say capacity.

<unk> is three five gigawatts of capacity can be there. We're looking now what is the short term and working with them with our plans.

And those coal units will be retired as we bring on those new <unk>, but you know we're looking at all of the above but our generation planning team is working actively working with all of our large customers to make sure we meet their demand needs.

They've said, they're trying to get to about a one three gigawatts by the end of 2007. So we're actively working with them and we mean that as you know <unk>.

Okay.

TBD.

Working on purchase cancellation agreements with them and how do we get orders in place. So we're looking at a variety of items here because of the system here is.

Looking at the rack.

Yes.

Our third quarter call on our capital plan.

Fantastic Fantastic and then.

He is very tight as you can see we extended the coal units for another year because of the take capacity.

Maybe as we kind of think through on that capital update.

The CAGR, we all love the precision, but it is probably one of the thinner ones out there.

And those cute coal units will be retired as we bring on those new <unk>, but.

Scott Lauber: But, you know, we're looking at all the above. But our generation planning team is actively working with all our large customers to make sure we meet their demand needs.

Across the sector and there is.

We're looking at all of the above but our generation planning team is working actively working with all of our large customers to make sure we meet their demand needs.

As an upward bias to capital.

I know that you have to finance that but how are you thinking about whether that puts you higher in the in the plant or not and how youre thinking about the growth rate as we get to the next quarter update.

Okay. So still.

Nicholas Campanella: OK. So still TBD. But we're looking forward to seeing the update there.

Still TBD.

But we're looking for.

Yes, we will have more on our third quarter call on our capital plan.

Scott Lauber: We'll have more on our third quarter call on our capital plan.

But that's a great question and very like you said really excited about the economic development, we're having in the region is it's not just.

Fantastic Fantastic and then <unk>.

Nicholas Campanella: Fantastic. Fantastic. And then maybe as we kind of think through on that capital update, you know, the CAGR, we all love the precision, but it is probably one of the thinner ones out there across the sector. And just, you know, there is an upward bias to capital. I know that you have to finance that. But how are you just thinking about whether that puts you higher in the plan or not and how you're thinking about the growth rate as we get to the next quarter update?

Maybe as we kind of think through on that capital update.

The large very large customers. It's also what we're seeing in throughout the region with housing and other development. So we're pulling all of that together right now and Sean and I and the rest of the team will be looking at our growth.

The CAGR, we all love the precision, but it is probably one of the thinner ones out there.

Across the sector and just.

There is an upward bias to capital.

Along with.

I know that you have to finance that but how are you just thinking about whether that puts you higher in the in the plan or not and how youre thinking about the growth rate as we get to the next quarter update.

This fall as we present, our updates to the board and we'll roll it out in our third quarter call.

But we're feeling good with what the.

What the region is providing us.

Scott Lauber: Well, that's a great question. And very, like you said, really excited about the economic development we're having in the region. And it's not just the large, very large customers. It's also what we're seeing throughout the region with housing and other development. So we're pulling all that together right now. And Shaw and I and the rest of the team will be looking at our growth pattern along with this fall as we present our updates to the board. And we'll roll it out on our third quarter call. But we're feeling good with what the region is providing us.

One last one if I can just the large low tariff docket is is there any just based on the timeline for that proceeding.

That's a great question and very like you said, we're really excited about the economic development, we're having in the region is it's not just.

The large very large customers. It's also what we're seeing in throughout the region with housing and other development. So we're putting all of that together right now and Sean and I and the rest of the team will be looking at our growth pattern along with.

Would you have clarity on that ahead of the third quarter call I guess could you settle that proceeding or do you expect because it's a new tariff that it goes to kind of a fully litigated.

I'll come at the Commission.

Well I'll answer.

This fall as we present, our updates to the board and we'll roll it out in our third quarter call.

Is there a twofold, we kind of settled it because we walked in with all the large customers in all agreed that this is a proper tariff and I think the commission is going to take time as they should as long with all the intervenors to make sure the processes and how we plan on allocating costs.

But we're feeling good with what the.

What the region is providing us.

One last one if I can just the large low tariff docket is is there any I'm just.

Nicholas Campanella: One last one, if I can, just the large load tariff docket. Is there any, just based on the timeline for that proceeding, would you have clarity on that ahead of the third quarter call? Like, I guess, could you settle that proceeding? Or do you expect, because it's a new tariff, that it goes through kind of a fully litigated outcome at the commission?

Just on the timeline for that proceeding.

So that makes sure that they'll very large customers are paying their fair share. So I don't know if its really contested or just being actively reviewed but I'd say, we pretty much have a settlement at this point with our very large customers that its reasonable and appropriately paying their fair share of the costs. So it's more of a process now to go through and people can have the opportunity to ask question.

Would you have clarity on that ahead of the third quarter call I guess could you settle that proceeding or do you expect because it's a new tariff that it goes to kind of a fully litigated.

I'll come at the Commission.

Well.

Scott Lauber: Well, I'll answer it twofold. We kind of settled it because we walked in with all the large customers and all agreed that this is a proper tariff. And I think the commission's going to take time, as they should, along with all the interveners, to make sure the processes and how we plan on allocating costs so that make sure that the very large customers are paying their fair share. So I don't know if it's really contested or just being actively reviewed. But I'd say we pretty much have a settlement at this point with our very large customers that it's reasonable and appropriately paying their fair share of the cost. So it's more of a process now to go through. And people can have the opportunity to ask questions on the processes and how we look at things.

It's a twofold, we kind of settled it because we walked in with all the large customers and all agree that this is a proper tariff.

<unk> on the processes and how we look at things and the commission has a lot in front of their plate that we've asked them to approve as we continue to build out the infrastructure here in Wisconsin.

And I think the commission is going to take time as they should as long with all the intervenors to make sure the processes and how we plan on allocating costs.

Alright, well thanks, so much.

So that make sure that theyre very large customers are paying their fair share. So I don't know if its really contested or just being actively reviewed but I'd say, we pretty much have a settlement at this point with our very large customers that its reasonable and appropriately paying their fair share of the costs. So it's more of a process, though to go through and people could have the opportunity to ask.

Have a great what's your summer thank you.

Sounds good thank you.

Your next question comes from the line of Julien Dumoulin Smith with.

Jefferies. Please go ahead.

Alright, it's Brian Russo on for Julien.

Hey, Brian how are you doing.

Good. Thanks, Hey, just just to follow up on the Capex update.

Scott Lauber: And the commission has a lot in front of their plate that we've asked them to approve as we continue to build out the infrastructure here in Wisconsin.

So I think purely indications our one three gigawatt for vantage in 2027.

I suppose that could ramp up closer to that three five gigawatts, maybe towards the latter half of that plan or is that still.

Alright, well thanks, so much.

Nicholas Campanella: All right. Well, thanks so much. Have a great rest of your summer. Thank you.

Have a great what's your summer thank you.

Scott Lauber: Sounds good. Thank you.

Sounds good thank you.

Operator: Your next question comes from the line of Julian Dumelin-Smith with Jefferies. Please go ahead.

Your next question comes from the line of Julien Dumoulin Smith with.

Too early in the development process.

Jefferies. Please go ahead.

I'd say, it's really early in the development process, yet before we can.

Alright, it's Brian Russo on for Julien.

Brian Russo: Hi, it's Brian Risso on for Julian.

Work with that and we're working with them right now every week and providing their first load and working with them for the rest of the the timeframe here. So early early yet in that process, but we will have some good numbers in our five year plan as we pull it together.

Hey, Brian how are you doing.

Nicholas Campanella: Hey, Brian. How are you doing?

Brian Russo: Good, thanks. Hey, just to follow up on the CapEx update. So I think the early indications are 1.3 gigawatts for Vantage in 2027. I suppose that could, you know, ramp up closer to that 3.5 gigawatts, maybe towards the latter half of that plan. Or is that still too early in the development process?

Good. Thanks, Hey, just just to follow up on the Capex Okay.

So I think be early indications for one three gigawatts for vantage in 2027.

I suppose that could ramp up closer to that three and a half gigawatts maybe towards the latter half of that plan or is that still.

Okay, Great and can we talk about some of the other.

Capex opportunities you have.

As you roll forward or update in the fall first on the peoples gas.

Too early in the development process.

I'd say, it's really early in the development process, yet before we can.

Nicholas Campanella: I'd say it's really early in the development process yet before we can work with that. We're working with them right now every week on providing their first load and working with them for the rest of the time frame here. So early yet in that process. But we'll have some good numbers in our five-year plan as we pull it together.

PRP and then also on the.

ATC upside Capex I think it would be tied to MISO tranche 2.1, and you could have.

So some early.

Next on that in 2030.

Sure.

So initially you asked about peoples gas and you saw we retired a bite from $18 61. So there's a lot of pipe there that they asked us to retire by 12 31, 2030 4100 miles of that older pipe, we're going through a process and we're starting to retire some as you saw in our prepared remarks.

Okay, Great and can we talk about some of the other capex opportunities you have.

Brian Russo: OK, great. And can we talk about some of the other CapEx opportunities you have as you roll forward or update in the fall, first on the People's Gas PRP and then also on the ATC upside CapEx? I think it would be tied to Mysotronch 2.1. And you could have, you know, some early CapEx on that in 2030.

As you roll forward or update in the fall first on the peoples gas.

PRP and then also on the <unk>.

ATC upside Capex I think it would be tied to MISO tranche, two one and you could have.

It's going to take a while to ramp up till we get to about a run rate.

In about 2028, it will be about little over $500 million in order to be completed in that timeframe based on our assumptions today and we are fine tuning those assumptions as we rollout the fall.

Some early of Capex.

Capex on that in 2030.

Sure.

Nicholas Campanella: Sure. So initially, you asked about People's Gas. And you saw we retired a pipe from 1861. So there's a lot of pipe there that they asked us to retire by 12/31/2034, about 1,100 miles of that older pipe. We're going through a process. And we're starting to retire some, as you saw in our prepared remarks. That's going to take a while to ramp up. So we get to about a run rate. Oh, I think in about 2028, it'll be about a little over 500 million in order to be completed in that time frame based on our assumptions today. And we're fine-tuning those assumptions as we roll out the full capital plan. So right now, as you recall, we only put 90 million a year in our capital plan. So this will take a couple of years to ramp up.

So initially you asked about peoples gas and you saw we retired a bite from $18 61. So there's a lot of pipe there that they asked us to retire by 12 31, 2030 4100 miles of that older pipe, we're going through a process and were starting to retire. Some as you saw in her prepared remarks, that's going.

Capital plan.

So right now as you recall, we only put $90 million a year in our capital plan.

So this will take a couple of years to ramp up but it may be up to that $500 million a year. So there is some definite capital additional capital in the five year plan coming related to that.

To take a while to ramp up till we get to about a run rate.

And then as you look at American transmission company Theres, a couple of items, we will be factoring in the remainder of that tranche one they will be looking at.

I think in about 2028, it will be about little over $500 million in order to be completed in that timeframe based on our assumptions today and were fine tuning those assumptions as we rollout the fall.

Tranche two as you said it's a.

It's a big capital plan in tranche two the other drivers you think of the capital plan is the economic development. When you think of Substations and other growth that's going on and hooking up the generation and renewables So I haven't seen.

Capital plan, so right now as you recall, we only put $90 million a year in our capital plan.

So this will take a couple of years to ramp up but it may be up to that $500 million a year. So there is some definite capital additional capital in the five year plan coming related to that.

Nicholas Campanella: But it may be up to that $500 million a year. So there's some definite additional capital in the five-year plan coming related to that. And then as you look at American Transmission Company, there's a couple of items. We will be factoring in the remainder of that Tranch 1. They'll be looking at Tranch 2. As you said, it's a big capital plan in Tranch 2. The other driver, as you think of the capital plan, is the economic development when you think of substations and other growth that's going on and hooking up the generation and renewables. So I haven't seen where that capital plan will go. But I imagine it'll be slightly higher than what we saw before. So we'll see some growth in the ATC capital plan along with the gas side of the business.

Where that capital plan will go but I imagine it will be slightly higher than what we saw before so we will see some growth in the ATC capital plan along with.

And then as you look at American transmission company.

The gas side of the business and then of course, we will look at our generation needs to meet this.

A couple of items, we will be factoring in the remainder of that tranche one.

They will be looking at.

This build out in Wisconsin.

Crunch too as you said, it's a it's a big capital plan in tranche two the other drivers you think of the capital plan is the economic development. When you think of Substations and other growth that's going on and hooking up the generation and renewables So I haven't seen.

Okay, Great and just one more question I'm curious what would be the point Beach P. P. A.

And also I believe at Port Washington Unit, one expires in July 2030, well those two items need to be contemplated.

Contemplated in assessed in this upcoming Capex update.

Where their capital plan will go but I imagine it will be slightly higher than what we saw before so we'll see some growth in the ATC capital plan along with the.

On the Port Washington, We are actively looking at the lease in that.

The gas side of the business and then of course, we will look at our generation needs to meet this.

Nicholas Campanella: And then, of course, we'll look at our generation needs to meet this build-out in Wisconsin.

Item and how we look at that in fact, we are looking at opportunities is there even an opportunity to.

This build out in Wisconsin.

Okay, Great and just one more question I'm curious what would be the point Beach P. P. A.

Brian Russo: OK, great. And just one more question. I'm curious, will the Point Beach PPA and also, I believe it's Port Washington Unit 1 expires in July 2030. Will those two items need to be contemplated and assessed in this upcoming CapEx update?

Get more power out of the Port Washington sites. So we're in the analysis of that and that will be updated at our five year plan and then on the point Beach, we've had good discussions with Nextera.

And also I believe at Port Washington Unit, one expires in July 2030, well those two items need to be.

<unk> been really productive I expect we will have something here by the end of the year.

Contemplated in assessed in this upcoming Capex update.

So we will see if we'll get it hopefully we get in our five year plan by the end of the year, but things have been moving along really well.

On the Port Washington, We are actively looking at the lease and that.

Nicholas Campanella: On the Port Washington, we are actively looking at the lease and that item and how we look at that. In fact, we are looking at opportunities. Is there even an opportunity to get more power out of the Port Washington site? So we're in the analysis of that. And that'll be updated in our five-year plan. And then on the Point Beach, you know, we've had good discussions with NextEra. They've been really productive. I expect we'll have something here by the end of the year. So we'll see if we'll get it. Hopefully, we get in our five-year plan or by the end of the year. But things have been moving along really well. So more to come on that.

So more to come on that.

Item and how we look at that in fact, we are looking at opportunities is there even an opportunity to get.

Okay, great. Thank you very much.

Thank you.

You get more power out of the Port Washington sites. So we're in the analysis of that and that will be updated at our five year plan and then on the <unk>.

Your next question comes from the line of Michael Sullivan with Wolfe Research. Please go ahead.

Hey, good afternoon, Hi, Michael.

<unk> Beach, we've had good discussions with Nextera.

Hey, Scott.

Wanted to just unpack the load growth a little bit more so you spoke to.

They've been really productive I expect we will have something here by the end of the year.

What youre seeing on the on the vantage side I guess, how do we assess.

So we will see if we'll get it hopefully we get in our five year plan by the end of the year, but things have been moving along really well.

What you'd need tangibly to include it formally in your plan and then is there anything else that's kind of crept into the plan on top of the one eight gigawatts.

So more to come on that.

Okay, great. Thank you very much.

Brian Russo: OK, great. Thank you very much.

Thank you.

Nicholas Campanella: Yeah, thank you.

Your next question comes from the line of Michael Sullivan with Wolfe Research. Please go ahead.

Operator: Your next question comes from the line of Michael Sullivan with Wolfe Research. Please go ahead.

But you've got embedded currently.

So when you look at advantage, we will I mean, I feel pretty comfortable we will be factoring something in our five year plan as it relates to vantage.

Hey, good afternoon, Hi, Michael.

Michael Sullivan: Hey, good afternoon.

Nicholas Campanella: Hi, Michael.

Michael Sullivan: Hi, Michael.

Hey, Scott.

Nicholas Campanella: Hey, Scott.

Michael Sullivan: Wanted to just unpack the load growth a little bit more. So you spoke to what you're seeing on the Vantage side. I guess, how do we assess what you need tangibly to include it formally in your plan? And then is there anything else that's kind of crept into the plan on top of the 1.8 gigawatts that you've got embedded currently?

Wanted to just unpack the load growth a little bit more so you spoke to.

What theyre moving in from cloverleaf now the vantage so I feel good we'll put something in our five year plan as it relates to vantage.

What youre seeing on the on the vantage side I guess, how do we assess.

What you need tangibly to include it formally in your plan and then is there anything else that's kind of crept into the plan on top of the one eight gigawatts.

Anything else in the economic development like we said, we've got a lot of industries that have come into Wisconsin.

In our prepared remarks, we had a couple there was an article in the paper the other day about about three or four other companies.

But you've got embedded currently.

So when you look at advantage, we will I mean, I feel pretty comfortable we will be factoring something in our five year plan as it relates to vantage.

Scott Lauber: So when you look at Vantage, I mean, I feel pretty comfortable we will be factoring something in our five-year plan as it relates to Vantage, what they're moving and from Cloverleaf now to Vantage. So I feel good we'll put something in our five-year plan as it relates to Vantage. On anything else in the economic development, like we said, we've got a lot of industries that have come into Wisconsin. In our prepared remarks, we had a couple. There was an article in the paper the other day about three or four other companies adding 2 to 500 jobs. So quite a bit of growth in Wisconsin. But I think when you look at it, we're also seeing good residential growth. I saw housing starts starting construction in 2024 and 2025, about 4,000 of them in just two counties here.

Companies, adding two to 500 jobs, so quite a bit of growth in Wisconsin, but I think when you look at it. We're also seeing good residential growth.

Housing starts starting construction in 2024, and 2025 about 4000 of them and just to Tony's here. So good growth that we're seeing in southeastern Wisconsin.

What theyre moving in from cloverleaf now the vantage so I feel good we'll put something in our five year plan as it relates to vantage.

Anything else in the economic development like we said, we've got a lot of industries that have come into Wisconsin.

So all of that will be factored into our into our load forecast.

Okay, Great and then sorry, just another one on the on the supply side.

Our prepared remarks, we had a couple there was an article in the paper the other day about about three or four other.

Do you have the ability to push out any of your planned coal shutdowns any any further and then on the on the Newbuild side are you still thinking mostly cts or at some point are you going to have to add a new CCG T.

Companies, adding two to 500 jobs, so quite a bit of growth in Wisconsin, but I think when you look at it. We're also seeing good residential growth.

Saw housing starts and starting construction in 2024, and 2025 about 4000 of them and just to Tony's here. So good growth that we're seeing in southeastern Wisconsin.

Sure.

Right now we have <unk> in the plan, we were probably looking at a combined cycle as we continue to evolve here with the additional demand. So that's more to come potentially in our five year plan here.

Scott Lauber: So good growth that we're seeing in southeastern Wisconsin. So all that will be factored into our load forecast.

So all of that will be factored into our into our load forecast.

Okay, Great and then sorry, just another one on the on the supply side.

Michael Sullivan: OK, great. And then, sorry, just another one on the supply side. Do you have the ability to push out any of your planned coal shutdowns any further? And then on the new build side, are you still thinking mostly CTs? Or at some point, are you going to have to add a new CCGT?

Coal I mean, we extended Oak Creek fixing.

Seven and eight.

Those two plants at back half to be retired because we're using the same interconnect.

For the new Cts and actually we really couldn't extend them much longer.

It really took the time and spent looking at the plants to see if we would build a limp along for another year without making major capital investments. If you wanted to extend the longer you would need a lot of capital investment so.

Sure.

Scott Lauber: Sure. And right now, we have CTs in the plan. We will probably be looking at a combined cycle as we continue to evolve here with the additional demand. So that's more to come potentially in our five-year plan here. On the coal, I mean, we extended Oak Creek 6 and or 7 and 8. Those two plants, in fact, have to be retired because we're using the same interconnect for the new CTs. And actually, we really couldn't extend them much longer. We really took the time and spent looking at the plants to see if we would be able to limp them along for another year without making major capital investments. If you wanted to extend them longer, you would need a lot of capital investments. So you know that one, we're not going to be able to extend anymore.

Yes that one we're not going to be able extend anymore and then when you think about the other plants, we really have them kind of running.

Coal I mean, we extended Oak Creek six in <unk>.

Seven and eight.

Only a couple of them like 2032, 31, so we'll evaluate where the EPA rules go.

Those two plants at back half to be retired because we're using the same interconnect.

But remember our big workhorses the.

For the new Cts and actually we really couldn't extend them much longer.

The Ela abroad generating station the power the future units were in the process of converting those to natural gas. So those are designed that eventually we will be able running my coal or gas. The key is we don't have any you know without losing any capacity with that and we're also looking at gas for the western for units.

Really took the time and spent looking at the plants to see if we would build a limp along for another year without making major capital investments. If you want to extend the longer you would need a lot of capital investment so.

That one we're not going to be able extend anymore and then when you think about the other plants, we really have kind of running.

Scott Lauber: And then when you think about the other plants, we really have them kind of running, only a couple of them, like 2030, 2031. So we'll evaluate where the EPA rules go. But remember, our big workhorses, the Ellaboro generating station, the Power of the Future units, we're in the process of converting those to natural gas. So those are designed that eventually we'll be able to run them on coal or gas. The key is we don't have any, you know, we're not losing any capacity with that. And we're also looking at gas for the Western 4 units. So we're not losing any capacity. It's just running it in our little cleaner fuel. So more to come this fall. But that's kind of our thought process when you think about the big coal units.

Losing any capacity its just running it a little cleaner fuel so.

Only a couple of unlike 2000 32031, so we'll evaluate where the EPA rules go.

More to come this fall, but that's kind of our thought process. When you think about the big coal units.

Okay. That's really helpful. And then just a quick one for Sean.

But remember our big workhorses the.

The Ela broad generating station the power the future units were in the process of converting those to natural gas. So those are designed that eventually we will be able to running my coal or gas. The key is we don't have any you know without losing any capacity with that and we're also looking at gas for the western four units. So we're not.

The Q2.

Storm damage that you booked just some more color on that.

<unk>.

Sure.

We've had several.

When storms impacting the Texas solar facilities in the past several years so.

Quarter, we came to the conclusion that we couldn't just rely on insurance recovery.

Losing any capacity its just running it a little cleaner fuel so.

For the storm damage, so we needed to take some accounting entry, but we're working actively with the insurance providers contractors and parts manufacturers to fully restore the lost capacity. So as we continue to make progress there we could recover some of the damage.

More to come this fall, but thats kind of our thought process. When you think about the big coal units.

Okay. That's really helpful. And then just a quick one for sure.

Michael Sullivan: OK. That's really helpful. And just a quick one for Shaw, the Q2 storm damage that you booked, just more color on that. Thank you.

The Q2.

Storm damage that you booked just some more color on that thank you.

Sure No we've had several wins.

Shaw: Sure. We've had several windstorms impacting the Texas solar facilities in the past several years. So in the quarter, we came to the conclusion that we couldn't just rely on insurance recovery for the storm damage. So we needed to take some accounting entry. But we're working actively with the insurance providers, contractors, and parts manufacturers to fully restore the lost capacity. So as we continue to make progress there, we could recover some of the damage, the loss we recognized in the quarter. So more to come.

The loss, we recognized in the quarter so more to come.

When storms impacting the Texas solar facilities in the past several years so.

Thanks again.

What are we came to the conclusion that we couldn't just rely on insurance recovery for.

Sounds good thank you.

Your next question comes from the line of Andrew Weisel with Scotia Bank. Please go ahead.

For the storm damage, so we needed to take some accounting entry, but we're working actively with the insurance providers contractors and parts manufacturers too.

Hi, Thanks, everybody Scott I think you said in your opening remarks, you are still working to safe harbor equipment to qualify for renewable tax credits under the <unk> how much of your plan is already safe harbored and to whatever degree you might not qualify whether because youre unable to safe harbor equipment or maybe potential talent as well.

Wally restore the lost capacity so as we continue to make progress there we could recover some of the damage.

The loss, we recognized in the quarter so more to come.

<unk> to the executive order what would be your backup plan and then as a follow up is there anything about the <unk> change your thinking about work infrastructure or the opportunity to build renewables outside of the utility.

Thanks again.

Michael Sullivan: Thanks again.

Sounds good thank you.

Scott Lauber: Sounds good. Thank you.

Your next question comes from the line of Andrew Weisel with Scotia Bank. Please go ahead.

Operator: Your next question comes from the line of Andrew Wessel, Wisconsin Bank. Please go ahead.

Sure.

Andrew Weisel: Hi. Thanks, everybody. Scott, I think you said in your opening remarks you're still working to safe harbor equipment to qualify for renewable tax credits under the OBDD. How much of your plan is already safe harbored? And to whatever degree you might not qualify, whether because you're unable to safe harbor equipment or maybe potential challenges related to the executive order, what would be your backup plan? And then as a follow-up, does anything about the OBDD change your thinking about WEC infrastructure or the opportunity to build renewables outside of the utility?

Good question and we've got several vintages of safe harboring and are in our plan. We've got some all the way back to 2023 and 24 were actively there in 2025, we probably have 40% to 50% under the already safe harbored and working on the rest we really wanted to see.

See what those new.

Treasury requirements are to make sure. We're in compliance. So we don't have any surprises in the future.

Now when you think of that in the future. This is really saving money for our customers, but we really need the energy and a lot of capacity and energy to supply the demand growth that we're seeing on the system. So we'll evaluate is combined cycle makes sense is there other ways to provide it batteries.

Sure.

Scott Lauber: Sure. Good question. And we've got several vintages of safe harboring in our plan. We've got some all the way back to 2023, some in '24. We're actively there in '25. We probably have 40% to 50% under the already safe harbored and working on the rest. We really want to see what those new treasury requirements are to make sure we're in compliance so we don't have any surprises in the future. Now, when you think of that in the future, you know, this is really saving money for customers. But we really need the energy and a lot of capacity and energy to supply the demand growth that we're seeing on the system. So we'll evaluate, does combined cycle make sense? Is there other ways to provide it? Batteries, of course. In fact, batteries provide ITC even longer into the plan.

Of course in fact batteries provide ITC even longer into the plan and batteries. The first battery, we got up and running that we talked about was very beneficial during the hospital. We saw in June so more.

See what those new.

Treasury requirements are to make sure. We're in compliance. So we don't have any surprises in the future.

More to come as we analyze it and of course, we will look at every piece of information that comes in.

The wacky side you saw we have so much growth in utilities, So we put our last.

Infrastructure projects and earlier in the year and now we're really concentrating on all of the growth.

The generation of renewables and natural gas and LNG that we need in Wisconsin to support.

The Wisconsin.

Economic development.

Scott Lauber: And batteries, the first battery we got up and running that we talked about was very beneficial during the hot spell we saw in June. So more to come as we analyze it. And of course, we'll look at every piece of information that comes in. On the WECKy side, you saw we have so much growth in utilities. So we put our last WECK infrastructure project in earlier in the year. And now we're really concentrating on all the growth and generation and renewables and natural gas and LNG that we need in Wisconsin to support the Wisconsin economic development.

Yeah.

Okay very good and then lastly can you elaborate on the defending the useful lives of the Oak Creek coal units was that a function of stronger than expected near term demand or any delays in construction of the new supply coming online or possibly any political.

More to come as we analyze it and of course, we will look at every piece of information that comes in.

The wacky side you saw we have so much growth in utilities, So we put our last.

Infrastructure projects and earlier in the year and now we're really concentrating on all the growth the.

Pressure or involvement like some of your neighbors has seen just hoping you can elaborate on that and is there any capex related to that I imagine that would be coming either this year next year, but if you could comment on that please.

The generation of renewables and natural gas and LNG that we need in Wisconsin to support the Wisconsin.

Sure and we were looking at this.

Economic development.

Yeah.

Andrew Weisel: OK, very good. Then lastly, can you elaborate on the extended use for lives of the Oak Creek coal units? Was that a function of stronger than expected near-term demand or any delays in construction of the new supply coming online or possibly any political pressure or involvement like some of your neighbors have seen? Just hoping you can elaborate on that. And is there any CapEx related to that? I imagine that would be coming either this year or next year. But if you could comment on that, please.

Quite a bit as we look at how do we run the units during the year and could we get some more hours item without significant capex. So we don't anticipate significant additional capex to run those.

And what really.

But the final decision we saw the MISO prices come out in the summer.

The summer demand they were a little higher so we decided let's really pull the trigger here and extend those lives.

We did it on our own there was no political questions.

Sure and we were looking at this.

Scott Lauber: Sure. And we were looking at this quite a bit as we look at how do we run the units during the year? And could we get some more hours out of them without significant CapEx? So we don't anticipate significant additional CapEx to run those. And what really, you know, with the final decision, we saw the Myso prices come out in the summer, the summer demand. They were a little higher. So we decided, let's really pull the trigger here and extend those lives. You know, we did it on our own. There were no political questions or, you know, discussions at all on what we should do. But we looked at what makes sense in the region here, specifically when we saw those Myso demand for the summer. Just to make sure everyone understands, we had these in our rate case through 2025.

Discussions at all on what we should do but we looked at.

Quite a bit as we look at how do we run the units during the year and could we get some more hours item without significant capex. So we don't anticipate significant additional capex to run those.

What makes sense in the region here, specifically when we saw those baseload demand for the summer.

Just to make sure everyone understands we had these in our rate case through 2025, now we're extending them into 2026, so going forward in 2006, the rate order kind of contemplated this that you know.

And what really.

But the final decision we saw the MISO prices come out in the summer.

The summer demand they were a little higher so we decided let's really pull the trigger here and extend those lives.

If we could show them early for some reason or extend the lives we have escrow accounting for the O&M expenses and of course, the fuel we're working with our.

We did it on our own there was no political questions.

Discussions at all on what we should do but we looked at.

Fuel team at our annual fuel filing to factor in these coal units into that for that added capacity. So it was really a decision we've been watching very closely in with the warm spell in June in the MISO prices. It came to a easy decision.

It makes sense in the region here specifically when we saw that was based on demand for the summer.

Just to make sure everyone understands we had these in our rate case through 2025, now we're extending them into 2026, so going forward in 2006, the rate order kind of contemplated this that.

Scott Lauber: Now we're extending them into 2026. So going forward in '26, the rate order kind of contemplated this, that, you know, if we had showed them early for some reason or extend the lives, we have escrow accounting for the O&M expenses. And of course, the fuel, we're working with our fuel team and our annual fuel filing to factor in these coal units into that for that added capacity. So it was really a decision we've been watching very closely. And with the warm spell in June and the Myso prices, it came to an easy decision.

Okay very good thank you.

Thank you.

Our next question comes from the line of Carly Davenport with Goldman Sachs. Please go ahead.

If we could show them early for some reason or extend the lives we have escrow accounting for the O&M expenses and of course, the fuel we're working with our.

Hey, good afternoon. Thanks, so much for taking the questions maybe.

Maybe just wanted to get the latest pulse check on the Microsoft ramp up of activity at the data Center site and just how youre thinking about the opportunity with them above and beyond what is baked into the current five year plan.

<unk> team and our annual fuel filing to factor in these coal units into that for that added capacity. So it was really a decision we've been watching very closely and with the warm spell in June in the MISO prices. It came to a easy decision.

Sure.

We talk to Microsoft quite a bit I can't reveal the details of our discussions but.

Okay very good thank you.

Andrew Weisel: OK, very good. Thank you.

Thank you.

Scott Lauber: Thank you.

That's why we're really comfortable with what we currently have in the southeastern Wisconsin region with what Microsoft is doing plus the other economic development that supports at one eight gigawatt.

Our next question comes from the line of Carly Davenport with Goldman Sachs. Please go ahead.

Operator: Our next question comes from the line of Carly Davenport with Goldman Sachs. Please go ahead.

Hey, good afternoon. Thanks, so much for taking the questions maybe.

Michael Sullivan: Hey, good afternoon. Thanks so much for taking the questions. Maybe just wanted to get the latest pulse check on the Microsoft ramp-up of activity at the data center site and just how you're thinking about the opportunity with them above and beyond what is baked into the current five-year plan.

I drive by the site.

So a couple of times a month because in real close there have been a lot of activities going on a lot of movements going on so there is still developing and growing and when you think about the potential.

Sure.

Feel theres dirt and land being moved at about 1300 60 acres and then they own another 500 acres.

Scott Lauber: Sure. And I, you know, we talked to Microsoft quite a bit. I can't reveal the details of our discussions. But you know, that's why we're really comfortable with what we currently have in that southeastern Wisconsin region with what Microsoft's doing, plus the other economic development that supports that 1.8 gigawatts. I drive by the site a couple of times a month because I'm real close there. I mean, a lot of activities going on, a lot of movements going on. So they're still developing and growing. And when you think about the potential, you know, there's dirt and land being moved on about 1,360 acres. And then they own another 500 acres just north of that site and another 200 acres a couple of miles away in Kenosha.

We talk to Microsoft quite a bit I can't reveal the details of our discussions, but that's why we're really comfortable with what we currently have in the southeastern Wisconsin region with what Microsoft is doing plus the other economic development that supports at one eight gigawatt.

Just north of that site and another 200 acres over a couple of miles away in Kenosha, So I think theres a lot of future opportunities there.

As they continue as they they bought that additional land earlier in the year, So looking forward to it.

I drive by the site.

A couple of times a month, because I'm real close there have been a lot of activities going on a lot of movements going on so there is still developing and growing and when you think about the potential.

We'll update our plans this fall and continue to work with them to develop what.

What the site and those other sites can provide.

Great. Thank you for that and then I just wanted to follow up on some of the questions earlier on the vantage line just with the the tightness that you mentioned in the market currently and as we think about the supply chain cues for you now.

Feel theres dirt and land being moved at about 360 acres and then they own another 500 acres.

Just north of that site and another 200 acres a couple miles away in Kenosha, So I think theres a lot of future opportunities there.

For gas yet for example, being quite lengthy do you think that that end of 2027 timeframe for their power needs.

Scott Lauber: So I think there's a lot of future opportunities there as they continue or as they bought that additional land earlier in the year. So looking forward to it. And we'll update our plans this fall and continue to work with them to develop what the site and those other sites can provide.

As they continue as they bought that additional land earlier in the year. So looking forward to it and we will update our plans this fall and continue to work with them to develop what.

Is achievable in kind of just help us think about what levers you know like I said.

Available to pull to sort of meet that demand and what seems like a fairly short time frame relative to some of the other projects that I'm that we're seeing across the U S.

What the site and those other sites can provide.

Great. Thank you for that and then I just wanted to follow up on some of the questions earlier on the vintage light just with the the tightness that you mentioned in the market currently and as we think about the supply chain cues for you now.

Michael Sullivan: Great. Thank you for that. And then I just wanted to follow up on some of the questions earlier on the Vantage site. Just with the tightness that you mentioned in the market currently and as we think about the supply chain queues for, you know, gas units, for example, you know, being quite lengthy, do you think that that end of 2027 time frame for their power needs, you know, is achievable? And kind of just help us think about what levers, you know, WEC has available to pull to sort of meet that demand in what seems like a fairly short time frame relative to some of the other projects that we're seeing across the US.

Sure.

We've been working with the cloverleaf now vantage for quite a while here are our planning team are pulling together multiple ideas on what to do.

For gas here. That's for example, being quite lengthy do you think that that end of 2027 timeframe for their power needs.

I don't want to really reveal anything yet until we get to our five year plan, but we do have a plan and we're actively engaged in executing on that plan more to come on it but we feel we can deliver the load.

Is achievable in kind of just help us think about what levers.

Available to pull to sort of meet that demand and what seems like a fairly short time frame relative to some of the other projects that I'm that we're seeing across the U S.

Great well keep keep keep in tune there. Thank you.

Sounds good thank you.

Our next question comes from the line of Paul Fremont with Glenn that Burns. Please go ahead.

Sure.

Scott Lauber: Sure. And we've been working with Cloverleaf, now Vantage, for quite a while here. And our planning team are pulling together multiple ideas on what to do. You know, I don't want to really reveal anything yet until we get to our five-year plan. But we do have a plan. And we're actively engaged in executing on that plan. More to come on it. But we feel we can deliver the load.

We've been working with the cloverleaf now vantage for quite a while here are our planning team are pulling together multiple ideas on what to do.

Alright, Thank you very much and congratulations on a great quarter.

I wanted to follow up a little bit on on <unk> question.

Don't want to really reveal anything yet until we get to our five year plan, but we do have a plan and we're actively engaged in executing on that plan more to come on it but we feel we can deliver the load.

The I guess Mount Washington.

<unk> one for Microsoft.

Is is under construction or any of the other three identified sites have they begun construction.

Great well keep keep keeping tune there. Thank you.

Michael Sullivan: Great. We'll keep in tune there. Thank you.

Scott Lauber: Sounds good. Thank you.

Sounds good thank you.

And.

Microsoft.

Our next question comes from the line of Paul Fremont with Glenn.

Operator: The next question comes from the line of Paul Freemont with Lindbergh. Please go ahead.

Update it at all with respect to the pause button and announced in January.

Glenn Please go ahead.

Got it thank you very much and congratulations on a great quarter.

Carly Davenport: Thank you very much. And congratulations on a great quarter. I wanted to follow up a little bit on Carly's question. I guess Mount Washington Site 1 for Microsoft is under construction. Are any of the other three identified sites, have they begun construction? And has Microsoft updated at all with respect to the pause that it announced in January?

Sure.

The other two sites I have that.

I wanted to follow up a little bit on on <unk> question.

I haven't seen any construction in those starting yet they're really mainly concentrated in at 300 acres.

The I guess Mount Washington.

One for Microsoft.

So there may be some work that's happening behind the scenes, but I haven't physically seen it.

<unk> is under construction or any of the other three identified sites have they begun construction.

But we've been working with them they haven't talked at all about a pause or a pause I know I know dirt being moved on all through 200, and some acres and I really pay attention to the forecast that they give us and I have confidence that they're going to deliver and they're moving dirt too to make it make it happen.

And Microsoft.

Update it at all with respect to the pause that and announced in January.

Sure.

Scott Lauber: Sure. And the other two sites, I haven't seen any construction on those starting yet. They're really mainly concentrated at 1,300 acres. So there may be some work that's happening behind the scenes. But I haven't physically seen it. But we've been working with them. They haven't talked at all about a pause or not a pause. I know dirt's being moved on all 1,300 and some acres. And I really, you know, pay attention to the forecast that they give us. And I have confidence that they're going to deliver. And they're moving dirt to make it happen. So they haven't told us specifically about a pause or unpausing something. But I can tell you that activity is happening on the site.

The other two sites I have that.

I haven't seen any construction in those starting yet.

So I haven't they haven't told us specifically about a pause or unplugging, something but I can tell you that activity is happening on the site.

They're really mean the concentrated at 1300 acres.

So there may be some work that's happening behind the scenes, but I haven't physically seen it.

Great. Thank.

Thank you very much.

But we've been working with them they haven't talked at all about a pause or a pause I know I know dirt being moved on all 1300, some acres and I really pay attention to the forecast that they give us and I have confidence that they're going to deliver and they're moving dirt to make it happen.

Thank you.

Alright, well. Thank you everyone that concludes our conference call for today. Thank you for participating if you have any more questions. Please feel free to contact Beth Straka at 4142 to 14639.

So I haven't they haven't told us specifically about a pause or unplugging, something but I can tell you that activity is happening on the site.

Thank you again for joining US today. This does conclude today's conference call you may now disconnect.

Great. Thank you very much.

Carly Davenport: Great. Thank you very much.

Thank you.

Scott Lauber: Thank you. All right. Well, thank you, everyone. That concludes our conference call for today. Thank you for participating. If you have any more questions, please feel free to contact Bestraka at 414-221-4639.

Alright, well. Thank you everyone that concludes our conference call for today. Thank you for participating if you have any more questions. Please feel free to contact Beth Straka at 4142 to 14639.

Thank you again for joining US today. This does conclude today's conference call you may now disconnect.

Operator: Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.

Yeah.

[music].

Yeah.

Okay.

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