Business Description

4 B. UTILITY SEGMENT 4 C. REGULATION 12 D. ENVIRONMENTAL COMPLIANCE 14 E. HUMAN CAPITAL 14 ITEM 1A. RISK FACTORS 16 ITEM 1B. UNRESOLVED STAFF COMMENTS 28 ITEM 1C. CYBERSECURITY 28 ITEM 2. PROPERTIES 30 ITEM 3. LEGAL PROCEEDINGS 31 ITEM 4. MINE SAFETY DISCLOSURES 32 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 32 PART II 33 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 33 ITEM 6. RESERVED 33 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 53 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 54 A. Report of Independent Registered Public Accounting Firm 54 B. Consolidated Income Statements 56 C. Consolidated Balance Sheets 57 D. Consolidated Statements of Cash Flows 58 E. Consolidated Statements of Equity 59 F. Notes to Consolidated Financial Statements 60 Note 1 Summary of Significant Accounting Policies 60 Note 2 Acquisitions 68 Note 3 Disposition 69 Note 4 Related Parties 69 Note 5 Operating Revenues 71 Note 6 Credit Losses 72 Note 7 Regulatory Assets and Liabilities 73 Note 8 Property, Plant, and Equipment 75 Note 9 Jointly-Owned Utility Facilities 75 Note 10 Asset Retirement Obligations 76 Note 11 Common Equity 77 Note 12 Preferred Stock 79 Note 13 Short-Term Debt and Lines of Credit 79 Note 14 Long-Term Debt 80 Note 15 Leases 81 Note 16 Income Taxes 85 Note 17 Fair Value Measurements 87 Note 18 Derivative Instruments 88 Note 19 Employee Benefits 89 2025 Form 10-K i Wisconsin Electric Power Company Table of Contents Note 20 Segment Information 93 Note 21 Variable Interest Entities 94 Note 22 Commitments and Contingencies 95 Note 23 Supplemental Cash Flow Information 100 Note 24 Regulatory Environment 100 Note 25 Other Income, Net 103 Note 26 New Accounting Pronouncements 103 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 104 ITEM 9A. CONTROLS AND PROCEDURES 104 ITEM 9B. OTHER INFORMATION 104 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 104 PART III 105 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE OF THE REGISTRANT 105 ITEM 11. EXECUTIVE COMPENSATION 105 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 105 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 105 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 105 PART IV 106 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 106 ITEM 16. FORM 10-K SUMMARY 109 SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS 110 SIGNATURES 111 2025 Form 10-K ii Wisconsin Electric Power Company Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below: Subsidiaries and Affiliates ATC American Transmission Company LLC Bluewater Bluewater Natural Gas Holding, LLC UMERC Upper Michigan Energy Resources Corporation WBS WEC Business Services LLC WE Wisconsin Electric Power Company We Power W.E. Power, LLC WEC Energy Group WEC Energy Group, Inc.…