The paragraph is an introduction to the WEC Energy Group's Conference Call discussing the third quarter 2024 financial results. It outlines the logistics of the call, noting it is being recorded and will feature a question-and-answer session after the presentation. The call includes forward-looking statements with potential risks and uncertainties. References to earnings will be based on diluted earnings per share, and some non-GAAP financial information will be covered, with reconciliations available on the company's website. The company reported adjusted earnings of $0.82 per share for the third quarter of 2024. The introduction of key participants, including Scott Lauber, the CEO, Xia Liu, the CFO, and Beth Straka, VP of Corporate Communications and Investor Relations, is also included.

The paragraph discusses the company's solid financial performance and reaffirms its earnings guidance for the year, highlighting strong regional growth. Despite a charge from disallowed capital expenditures, the company's earnings per share are projected to be between $4.80 to $4.90, assuming normal weather conditions. Wisconsin's unemployment rate is notably low, supporting local economic growth. Significant developments, such as Microsoft's expanding data center complex, Amazon's new warehouse, and a major expansion by Georgia-Pacific, are boosting economic activities and spawning further commercial and residential projects. The company is planning to invest $28 billion in its updated capital plan from 2025 to 2029 to support these developments.

This paragraph outlines the company's largest capital plan in history, with a $4.3 billion increase over the previous five-year plan, representing an 18% rise. The growth is fueled by economic expansion in Southeastern Wisconsin, particularly the I-94 corridor. The plan accommodates an additional 1,800 megawatts of demand over five years and targets an average asset growth rate of 8.8% annually, which aligns with a projected earnings per share growth of 6.5% to 7% yearly. The increase is driven by investments in regulated electric generation, transmission, and distribution, alongside a growing focus on renewable energy and natural gas generation. The company plans to invest $9.1 billion in solar, wind, and battery storage, quadrupling carbon-free generation capacity. Additionally, $900 million will be invested in modern natural gas generation to ensure reliability and efficiency.

The company plans to invest in both combustion turbines and RICE units, and will allocate an additional $400 million to expand liquefied natural gas capacity. American Transmission Company will invest $3.2 billion, an increase of $200 million, between 2025 and 2029 to enhance transmission capabilities supporting economic growth and renewable energy connection. Moreover, $700 million will be invested in improving distribution networks. The company has reduced infrastructure segment investments by $800 million, leaving $400 million for the upcoming year. They plan to invest $410 million to acquire a 90% interest in Hardin Solar III Energy Park in Ohio, adding 250 megawatts of renewable energy by early 2025. Additionally, regulatory updates include nearing completion of rate reviews in Wisconsin for 2025 and 2026, with new rates expected by January 2025. Further details will be shared at the EEI conference.

The paragraph discusses recent developments and financial results for utility companies in Michigan and Illinois. In Michigan, the Public Service Commission has approved a settlement for the 2025 rate cases for Michigan Gas Utilities and Upper Michigan Energy Resources, both with a Return on Equity (ROE) of 9.86%. In Illinois, the company is involved in two dockets: one reviewing the Safety Modernization Program, with a decision expected in early 2025, and another evaluating the future of natural gas, extended into 2026. Xia Liu reports that the company's third-quarter 2024 adjusted earnings were $0.82 per share, excluding a $0.06 charge related to a disallowed 2016 expenditure. Although earnings decreased by $0.18 per share compared to the previous year, the company exceeded its guidance, aided by favorable weather and financial factors, and remains on track to meet its 2024 earnings guidance. The earnings decrease is attributed to rate design changes and increased expenses in Illinois.

The paragraph discusses the impacts of weather and other factors on earnings in the third quarter of 2024. The weather had a slightly greater positive impact this year compared to 2023. Changes in rate design at Peoples Gas caused lower third-quarter earnings due to the concentration of revenues in the first and fourth quarters. Retail electric sales in Wisconsin increased slightly, aligning with forecasts. ATC's earnings rose by $0.01 due to capital investments, and a favorable FERC decision on ROE is expected to benefit Q4. Earnings in the Energy Infrastructure segment improved by $0.06, driven by higher production tax credits and increased renewable generation. However, earnings at the Corporate and Other segment fell by $0.07 due to tax timing and higher interest expense. The company reaffirms its 2024 annual guidance of $4.80 to $4.90 per share, despite being $0.07 behind year-to-date compared to last year, primarily due to weather.

The paragraph discusses the company's financial outlook and strategies for Q4 and beyond. The company anticipates positive factors, or tailwinds, in Q4 to help meet its adjusted earnings guidance, including a regulatory decision that benefits its earnings and expectations of normal weather. The 2024 financing plan involves using dividend reinvestment, employee benefit plans, and a newly established ATM program, projecting up to $200 million in common equity issuance. Over the next five years, the company plans to fund 60% of its cash needs through operations, 31% through debt, and 9% through common equity, aligning with a robust capital plan, particularly in 2025. The company also plans to finance half of an additional $4.3 billion capital with increased equity content.

The paragraph discusses the company's future expectations regarding its asset base and dividend plans. The company anticipates that the percentage of its asset base dedicated to regulated electric businesses will grow over the next five years, driven by economic development in Wisconsin and energy transition plans. Conversely, the asset base for gas distribution and contracted renewables, particularly in Illinois, is expected to decline. The paragraph also mentions upcoming dividend plans and earnings guidance expected in December, with a continued target payout ratio of 65% to 70% of earnings. The company is optimistic about its future and focused on delivering value to customers and stockholders. The section concludes with the opening of a Q&A session, where a question is raised about potential alternatives if the company cannot reach an agreement with NextEra concerning infrastructure segment PPAs.

In the paragraph, Scott Lauber discusses ongoing constructive discussions with NextEra regarding the Point Beach PPA, with optimism about progress and updates expected in six months. Shahriar Pourreza inquires about the reduction in capital expenditure (CapEx) on the infrastructure side, questioning if it's related to capital allocation or decreased demand for contracted renewables. Lauber clarifies that the reduction in the infrastructure segment is due to focusing capital on economic development in Wisconsin, despite good economics in the other segment, and reaffirms that $800 million in incremental spending aligns with current investment profiles.

In the given paragraph, Julien Dumoulin-Smith from Jefferies asks about the financial implications of different spending options for the Peoples Gas Light (PGL) project in Illinois. Scott Lauber explains that among the options, Option 3 is the least expensive and is recommended by both PGL and the Illinois Commerce Commission (ICC) staff, involving about $7.2 billion through 2040. In their current five-year plan, they have minimized capital allocation to approximately $90 million a year, focusing only on emergency work and necessary facility relocations. If Option 3 is selected, there could be an annual upside of $100 million to $200 million, but ramping up projects would take time as their current plan covers just the bare minimum.

In the paragraph, Michael Sullivan from Wolfe Research asks for more details about the pending Wisconsin case and why a settlement wasn't reached. Scott Lauber explains that the case is very advanced, with all hearings complete and a decision matrix released. The next step is a decision by the commission, expected in early December. Lauber states that while a settlement wasn't achieved, he's comfortable with the commission making a decision due to its balanced nature and understanding of regional needs. He implies that seeing the case through might be beneficial. Sullivan finds the response helpful and has additional questions about earnings.

In the paragraph, the discussion centers around an ATC ROE that is set to be booked in Q4. Despite this, the company has decided not to raise its guidance due to various factors, including timing of expenses and the need to ensure execution. Xia Liu notes that a mild first quarter left the company $0.06 behind on weather-related performance, and the expected $0.05 from the ATC ROE will help offset this deficit. Michael Sullivan asks about the company's long-term EPS CAGR base and potential to return to a 6.5% to 7% range after missing it this year. Scott Lauber responds that they're using a 2023 base of $4.60 due to previous adjustments and will update their guidance post rate case in December.

In the paragraph, Neil Kalton asks Scott Lauber about Microsoft's acquisition of 1,900 acres of land, confirming an increase from 1,300 acres at the beginning of the year. He inquires if recent capital expenditure (CapEx) plans include potential developments by Microsoft. Scott Lauber explains that the plan includes 1,800 megawatts of capacity growth over five years, considering Microsoft's expansion and regional economic developments, like electric vehicles. Lauber notes that their system capacity is 7,500 megawatts, indicating over 20% growth. New inquiries from data centers are also being considered, but specific numbers will only be shared when confirmed. Lauber adds that if Microsoft announces a Phase 2, it might require more capacity.

The paragraph features a conversation about capital expenditure updates between analysts and Scott Lauber. Andrew Weisel seeks clarification on the reported increases in electric generation spending, noting a discrepancy between the totals on two different pages. He mentions an increase in natural gas distribution costs and inquires whether this is due to routine spending, inflation, or changes in policy assumptions in Illinois. Scott Lauber responds by explaining that the gas distribution adjustment reflects decreased spending in Illinois and increased spending in Wisconsin, Michigan, and Minnesota due to customer growth and expansion. He also notes that final numbers are uncertain pending the release of PHMSA rules.

The paragraph discusses financial and operational updates across various energy projects. Key points include a $700 million investment in a range of generation projects, including wind farm upgrades and resilience improvements. There is a $200 million increase in transmission investments related to near-term economic development, with major MISO Tranche 2 activities happening beyond a five-year plan. The company reports an increase in expected incremental load growth from 1,400 to 1,800 megawatts, translating to a significant demand increase of over 20% on a base of 7,500 megawatts, and forecasts electric sales growth of 4.5% to 5% through 2029.

In the paragraph, Sophie Karp from KeyBanc Capital Markets asks why the company wouldn't raise its EPS growth rate given the positive factors like higher load growth and a healthy capital update. Scott Lauber responds by explaining that while they have added and reduced capital in different areas like Wisconsin, WEC infrastructure, and Illinois, they remain comfortable with their current EPS growth rate guidance of 6.5 to 7. He emphasizes the need to realistically address financing plans related to capital spending and notes the importance of upcoming developments, such as the Wisconsin rate case and Illinois' Safety Modernization Program. The paragraph also features a brief, unrelated conversation with Durgesh Chopra from Evercore ISI about Haribo gummy bears as trick-or-treat goodies.

The paragraph features a discussion between Xia Liu and Durgesh Chopra regarding the financial plans of a company, specifically focusing on capital expenditure and equity funding. Xia Liu explains that the company's capital plan has increased by $4.3 billion, with an $800 million increase in common equity and additional holding company debt, contributing to a $2 billion increase in equity content. The conversation also confirms that the Delilah and Maple Flats solar projects are on track to be completed by the year's end. Subsequently, Jeremy Tonet from JPMorgan inquires about the contribution of gas generation to LNG operations.

Scott Lauber discusses the importance of increasing gas generation in Wisconsin to ensure energy reliability, particularly on cold days. He notes that additional gas reserves have been added, with storage facilities now located where coal piles used to be. Past issues, such as a pipeline compressor failure, highlighted the need for stored energy to ensure consistent supply. Jeremy Tonet inquires about national energy reserve margins and how they impact the timelines for retiring coal and gas plants. He also asks about the potential role of carbon capture and storage (CCS) in meeting energy demands. Lauber emphasizes the need for dispatchable energy sources like gas, especially when renewable sources like wind and solar are inconsistent.

The paragraph discusses the strategic plans for energy generation, emphasizing the integration of renewables and gas to meet MISO's reserve margin requirements as rules evolve with more renewable energy on the system. Scott Lauber highlights the challenges and costs of carbon capture in Wisconsin, estimating a $1 to $2 billion expense, making it unviable compared to current plans. The company is retiring older coal plants like Oak Creek units 5-8 and Weston 3 by 2031, switching to more efficient gas generation. These retirements are part of their broader strategy to avoid costly upgrades and carbon capture implementation. Jeremy Tonet acknowledges the explanation, finding it helpful.

The paragraph discusses funding needs for 2025, specifically related to equity content. Xia Liu explains that employee benefit plans will be part of the equity raise and the ATM will cover the rest, negating the need for a block sale. Tax credits are already included in the FFO, and sales have been between $100 million to $200 million, potentially increasing with more renewable projects. Nicholas Campanella from Barclays inquires about the 8.8% asset-based growth, particularly in Wisconsin. Scott Lauber indicates that Wisconsin's rate base growth is projected to be 14% to 15%, driven by economic growth, sales, and resiliency improvements.

The paragraph discusses the growth and economic development driven by an $8 to $9 billion capital related to supporting the economy, mainly in Wisconsin. American Transmission Company (ATC) is experiencing growth, particularly regulated by the Federal Energy Regulatory Commission (FERC). Xia Liu notes that 40% of their capital is designated as growth capital, funded by large customers. Scott Lauber mentions the ongoing rate case in Wisconsin, indicating that rate increases are expected to align with inflation, potentially reaching 1% above inflation due to reliability projects. Overall, the capital investment is primarily fueled by economic development and increased demand for energy.

The paragraph is from a conference call discussing financial matters. It highlights that Microsoft acknowledges the importance of paying their fair share for data center operations without subsidizing others or receiving subsidies themselves. There was a query about a significant increase in gas normalized sales in the commercial sector for Q3, which was clarified to be potentially due to anomalies, as Q3 is a low-volume quarter. A broader year-to-date perspective is suggested for accuracy. The call concludes with a contact provided for further questions.

This summary was generated with AI and may contain some inaccuracies.