2020 Q3 WEC Earnings Package...$3.71 to $3.75 per share. Earnings per share listed in this news release are on a fully diluted basis. Conference call A conference call is scheduled

WECEnergyGroup,Inc.

2020ThirdQuarterEarnings

ReleasedNovember3,2020

TABLEOFCONTENTSPages

PressRelease 1-3

IncomeStatements 4

BalanceSheets 5

StatementsofCashFlows 6

IncomeStatementImpactofAmortizationofUnprotectedTaxBenefits 7

IncomeStatementImpactofFlowThroughofTaxRepairs 8

FactorsAffectingEarnings-ThirdQuarter 9

FactorsAffectingEarnings-YTD 10

SummaryofRegulatedOperationandMaintenance-ThirdQuarter 11-12

SummaryofRegulatedOperationandMaintenance-YTD 13-14

WeatherandVolumes-ThirdQuarter 15

WeatherandVolumes-YTD 16

RetailElectricSalesVolumeInformation 17

RetailNaturalGasSalesVolumeInformation 18

OtherFinancialInformation 19

CreditRatings 20

QuarterlyEPSEarningsDrivers 21

Five-YearCapitalPlan 22-24

From: Brendan Conway (news media)[email protected]

Beth Straka (investment community)[email protected]

November 3, 2020

WEC Energy Group reports third-quarter results

MILWAUKEE – WEC Energy Group (NYSE: WEC) today reported net income of $266.8 million, or 84 cents per share, for the third quarter of 2020 – up from $234.3 million, or 74 cents per share, for last year's third quarter.

For the first nine months of 2020, the company recorded net income of $960.9 million, or $3.04 per share – up from $890.1 million, or $2.81 per share, in the corresponding period a year ago.

Consolidated revenues totaled $1.7 billion for the third quarter of 2020 and $5.3 billion for the first nine months. Third-quarter revenues were up $43.0 million compared to the same quarter in 2019, while year-to-date revenues were down $267.3 million compared to the prior year.

"A rebound in economic activity, warmer summer weather and efficiency gains throughout our operations were the major factors shaping another strong quarter," said Gale Klappa, executive chairman. "Our management team is resilient and focused on delivering value as we head into the closing months of a challenging year."

Retail deliveries of electricity – excluding the iron ore mine in Michigan’s Upper Peninsula – were down by 0.3 percent in the third quarter of 2020, compared to the third quarter of 2019.

Residential electricity use rose by 7.1 percent.

Electricity consumption by small commercial and industrial customers declined by 2.5 percent. Electricity use by large commercial and industrial customers – excluding the iron ore mine – dropped by 5.4 percent during the third quarter of 2020.

On a weather-normal basis, retail deliveries of electricity during the third quarter of this year – excluding the iron ore mine – decreased by 1.5 percent.

1

At the end of September, the company was serving approximately 11,000 more electric customers and 32,000 more natural gas customers than at the same time a year ago.

In light of its strong performance, the company is narrowing and raising its earnings guidance for 2020 to a range of $3.74 to $3.76 per share with an expectation of reaching the top end of the range. This assumes normal weather for the remainder of the year. Previous guidance was in the range of $3.71 to $3.75 per share.

Earnings per share listed in this news release are on a fully diluted basis.

Conference call

A conference call is scheduled for 1 p.m. Central time, Tuesday, Nov. 3. The call will review 2020 third-quarter earnings and the company’s outlook for the future.

All interested parties, including stockholders, news media and the general public, are invited to listen. Access the call at 877-683-2228 up to 15 minutes before it begins. The number for international callers is 647-689-5446. The conference ID is 4494487.

Conference call access also is available at wecenergygroup.com. Under 'Webcasts,' select 'Q3 Earnings.' In conjunction with this earnings announcement, WEC Energy Group will post on its website a package of detailed financial information on its third-quarter performance. The materials will be available at 6:30 a.m. Central time, Tuesday, Nov. 3.

Replay

A replay will be available on the website and by phone. Access to the webcast replay will be available on the website about two hours after the call. Access to a phone replay also will be available approximately two hours after the call and remain accessible through Nov. 17, 2020. Domestic callers should dial 800-585-8367. International callers should dial 416-621-4642. The replay conference ID is 4494487.

WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation’s premier energy companies, serving 4.5 million customers in Wisconsin, Illinois, Michigan and Minnesota.

The company’s principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in the Midwest.

WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 45,000 stockholders of record, 7,500 employees and $35 billion of assets.

2

Forward-looking statements

Certain statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management’s current expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management’s expectations and projections regarding earnings and future results. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “guidance,” “intends,” “may,” “objectives,” “plans,” “possible,” “potential,” “projects,” “should,” “targets,” “will” or similar terms or variations of these terms.

Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company’s service territories; the extent, duration and impact of the COVID-19 pandemic; timing, resolution and impact of rate cases and other regulatory decisions; the company’s ability to continue to successfully integrate the operations of its subsidiaries; availability of the company’s generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; varying weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; the company’s ability to successfully acquire and/or dispose of assets and projects; cybersecurity threats and data security breaches; construction risks; equity and bond market fluctuations; changes in the company’s and its subsidiaries’ ability to access the capital markets; the impact of tax reform and any other legislative and regulatory changes, including changes to environmental standards; political developments; current and future litigation and regulatory investigations, proceedings or inquiries; changes in accounting standards; the financial performance of American Transmission Company as well as projects in which the company’s energy infrastructure business invests; the ability of the company to obtain additional generating capacity at competitive prices; goodwill and its possible impairment; and other factors described under the heading “Factors Affecting Results, Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations and under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” contained in the company’s Form 10-K for the year ended December 31, 2019, and in subsequent reports filed with the Securities and Exchange Commission. The company expressly disclaims any obligation to publicly update or revise any forward-looking information.

Although we have estimated the economic impacts of the COVID-19 pandemic on our business and have factored such impacts into our projections, the extent to which the COVID-19 pandemic may affect us depends on factors beyond our knowledge or control. Therefore, the ultimate impact of the COVID-19 pandemic on our business plans and operations, liquidity, financial condition and results of operations could vary from our current projections.

Tables follow

3

WECENERGYGROUP,INC.

CONDENSEDCONSOLIDATEDINCOMESTATEMENTS(Unaudited) ThreeMonthsEnded NineMonthsEndedSeptember30 September30

(inmillions,exceptpershareamounts) 2020 2019 2020 2019Operatingrevenues $ 1,651.0 $ 1,608.0 $ 5,308.3 $ 5,575.6

OperatingexpensesCostofsales 482.8 484.3 1,662.0 1,985.8Otheroperationandmaintenance 498.7 529.2 1,427.5 1,583.4Depreciationandamortization 245.0 233.8 726.6 690.1Propertyandrevenuetaxes 54.3 49.8 156.6 148.0

Totaloperatingexpenses 1,280.8 1,297.1 3,972.7 4,407.3

Operatingincome 370.2 310.9 1,335.6 1,168.3

Equityinearningsoftransmissionaffiliates 40.1 38.7 132.8 111.7Otherincome,net 25.7 21.8 59.9 76.3Interestexpense 122.0 125.8 375.8 374.3Otherexpense (56.2) (65.3) (183.1) (186.3)

Incomebeforeincometaxes 314.0 245.6 1,152.5 982.0Incometaxexpense 46.9 11.3 190.7 91.5Netincome 267.1 234.3 961.8 890.5

Preferredstockdividendsofsubsidiary 0.3 0.3 0.9 0.9Netlossattributedtononcontrollinginterests — 0.3 — 0.5Netincomeattributedtocommonshareholders $ 266.8 $ 234.3 $ 960.9 $ 890.1

EarningspershareBasic $ 0.85 $ 0.74 $ 3.05 $ 2.82Diluted $ 0.84 $ 0.74 $ 3.04 $ 2.81

WeightedaveragecommonsharesoutstandingBasic 315.4 315.4 315.4 315.4Diluted 316.5 316.8 316.6 316.7

Dividendspershareofcommonstock 0.6325 0.5900 1.8975 1.7700

4

WECENERGYGROUP,INC.

CONDENSEDCONSOLIDATEDBALANCESHEETS(Unaudited)(inmillions,exceptshareandpershareamounts) September30,2020 December31,2019

AssetsCurrentassetsCashandcashequivalents $ 13.1 $ 37.5Accountsreceivableandunbilledrevenues,netofreservesof$173.3and$140.0,respectively 911.8 1,176.5Materials,supplies,andinventories 573.4 549.8Prepayments 169.5 261.8Other 59.4 68.0Currentassets 1,727.2 2,093.6

Long-termassetsProperty,plant,andequipment,netofaccumulateddepreciationandamortizationof$9,308.6and$8,878.7,respectively 24,551.7 23,620.1Regulatoryassets 3,462.2 3,506.7Equityinvestmentintransmissionaffiliates 1,750.4 1,720.8Goodwill 3,052.8 3,052.8Other 877.7 957.8Long-termassets 33,694.8 32,858.2Totalassets $ 35,422.0 $ 34,951.8

LiabilitiesandEquity

CurrentliabilitiesShort-termdebt $ 771.0 $ 830.8Currentportionoflong-termdebt 596.2 693.2Accountspayable 751.3 908.1Accruedpayrollandbenefits 173.9 199.8Other 547.6 550.8Currentliabilities 2,840.0 3,182.7

Long-termliabilitiesLong-termdebt 11,652.5 11,211.0Deferredincometaxes 3,974.7 3,769.3Deferredrevenue,net 417.8 497.1Regulatoryliabilities 3,939.3 3,992.8Environmentalremediationliabilities 589.4 589.2PensionandOPEBobligations 320.6 326.2Other 1,128.6 1,128.9Long-termliabilities 22,022.9 21,514.5

Commitmentsandcontingencies

Commonshareholders'equityCommonstock–$0.01parvalue;325,000,000sharesauthorized;315,434,531sharesoutstanding 3.2 3.2Additionalpaidincapital 4,163.8 4,186.6Retainedearnings 6,290.1 5,927.7Accumulatedothercomprehensiveloss (6.4) (4.1)Commonshareholders'equity 10,450.7 10,113.4

Preferredstockofsubsidiary 30.4 30.4Noncontrollinginterests 78.0 110.8Totalliabilitiesandequity $ 35,422.0 $ 34,951.8

5

WECENERGYGROUP,INC.

CONDENSEDCONSOLIDATEDSTATEMENTSOFCASHFLOWS(Unaudited) NineMonthsEndedSeptember30

(inmillions) 2020 2019Operatingactivities

Netincome $ 961.8 $ 890.5Reconciliationtocashprovidedbyoperatingactivities

Depreciationandamortization 726.6 690.1Deferredincometaxesandinvestmenttaxcredits,net 152.5 58.8ContributionsandpaymentsrelatedtopensionandOPEBplans (10.1) (12.1)Equityincomeintransmissionaffiliates,netofdistributions (20.3) (17.8)Changein–

Accountsreceivableandunbilledrevenues,net 262.3 360.2Materials,supplies,andinventories (23.6) (44.9)Prepayments 92.3 90.7Othercurrentassets 37.2 19.7Accountspayable (178.9) (192.3)Othercurrentliabilities (23.3) (1.8)

Other,net (26.8) (0.4)Netcashprovidedbyoperatingactivities 1,949.7 1,840.7

InvestingactivitiesCapitalexpenditures (1,618.7) (1,511.5)AcquisitionofUpstreamWindEnergyLLC,netofcashandrestrictedcashacquiredof$9.2 — (268.2)Capitalcontributionstotransmissionaffiliates (15.2) (37.3)Proceedsfromthesaleofassetsandbusinesses 9.8 32.2Proceedsfromthesaleofinvestmentsheldinrabbitrust 17.1 0.2ReimbursementforATC'sconstructioncosts — 32.4Insuranceproceedsreceivedforpropertydamage 22.2 —Proceedsfromcashsurrendervalueoflifeinsurance 8.3 9.2Other,net 13.4 8.5

Netcashusedininvestingactivities (1,563.1) (1,734.5)

FinancingactivitiesExerciseofstockoptions 23.3 66.1Purchaseofcommonstock (56.7) (138.2)Dividendspaidoncommonstock (598.5) (558.4)Issuanceoflong-termdebt 810.0 1,320.0Retirementoflong-termdebt (482.6) (106.0)Issuanceofshort-termloan 340.0 —Changeinothershort-termdebt (399.8) (753.7)PurchaseofadditionalownershipinterestinUpstreamWindEnergyLLCfromnoncontrollinginterest (31.0) —

Other,net (12.4) (15.5)Netcashusedinfinancingactivities (407.7) (185.7)

Netchangeincash,cashequivalents,andrestrictedcash (21.1) (79.5)Cash,cashequivalents,andrestrictedcashatbeginningofperiod 82.3 146.1Cash,cashequivalents,andrestrictedcashatendofperiod $ 61.2 $ 66.6

6

WECENERGYGROUP,INC.

INCOMESTATEMENTIMPACTOFAMORTIZATIONOFUNPROTECTEDTAXBENEFITS–2020THIRDQUARTERANDYTD

WECEnergyGroup–ThetablebelowshowsthethirdquarterandYTD2020incomestatementimpactrelatedtorecognizingcertaindeferredtaxbenefitscreatedasaresultoftheTaxCutsandJobsActof2017.InaccordancewiththerateorderreceivedfromthePublicServiceCommissionofWisconsininDecember2019,ourWisconsinutilitiesareamortizingtheseunprotecteddeferredtaxbenefitsoverperiodsrangingfromtwotofouryears,toreducenear-termrateimpactstotheircustomers.Thedecreaseinincometaxexpenserelatedtotheamortizationofthedeferredtaxbenefitsisoffsetbyadecreaseinrevenueasthebenefitsarereturnedtocustomers,resultinginnoimpactonnetincome.

ThreeMonthsEndedSeptember30,2020 NineMonthsEndedSeptember30,2020

(inmillions)

WECEnergyGroup–ReportedGAAP

Amounts

ImpactofAmortization

ofUnprotectedDeferredTax

Benefits

WECEnergyGroup

(ExcludingUnprotectedDeferredTaxBenefits)


Amounts

ImpactofAmortization

ofUnprotectedDeferredTax

Benefits

WECEnergyGroup

(ExcludingUnprotectedDeferredTaxBenefits)

Operatingrevenues $ 1,651.0 $ 23.2 $ 1,674.2 $ 5,308.3 $ 63.1 $ 5,371.4

OperatingexpensesCostofsales 482.8 — 482.8 1,662.0 — 1,662.0Otheroperationandmaintenance 498.7 — 498.7 1,427.5 — 1,427.5Depreciationandamortization 245.0 — 245.0 726.6 — 726.6Propertyandrevenuetaxes 54.3 — 54.3 156.6 — 156.6Totaloperatingexpenses 1,280.8 — 1,280.8 3,972.7 — 3,972.7

Operatingincome 370.2 23.2 393.4 1,335.6 63.1 1,398.7

Equityinearningsoftransmissionaffiliates 40.1 — 40.1 132.8 — 132.8Otherincome,net 25.7 — 25.7 59.9 — 59.9Interestexpense 122.0 — 122.0 375.8 — 375.8Otherexpense (56.2) — (56.2) (183.1) — (183.1)

Incomebeforeincometaxes 314.0 23.2 337.2 1,152.5 63.1 1,215.6Incometaxexpense 46.9 23.2 70.1 190.7 63.1 253.8Netincome 267.1 — 267.1 961.8 — 961.8

Preferredstockdividendsofsubsidiary 0.3 — 0.3 0.9 — 0.9Netincomeattributedtocommonshareholders $ 266.8 $ — $ 266.8 $ 960.9 $ — $ 960.9

Effectivetaxrate 14.9% 20.8% 16.5% 20.9%

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WECENERGYGROUP,INC.

INCOMESTATEMENTIMPACTOFFLOWTHROUGHOFTAXREPAIRS–2019THIRDQUARTERANDYTD

WECEnergyGroup–ThetablebelowshowsthethirdquarterandYTD2019incomestatementimpactassociatedwiththeflowthroughoftaxrepairs,whichbeganinthefirstquarterof2018.InaccordancewithasettlementagreementwiththePublicServiceCommissionofWisconsin,WisconsinElectricwasflowingthroughthetaxbenefitofitsrepairrelateddeferredtaxliabilitiesin2018and2019,tomaintaincertainregulatoryassetbalancesattheirDecember31,2017levels.Theflowthroughtreatmentoftherepairrelateddeferredtaxliabilitiesoffsetthenegativeincomestatementimpactofholdingtheregulatoryassetslevel,resultinginnochangetonetincome.

ThreeMonthsEndedSeptember30,2019 NineMonthsEndedSeptember30,2019

(inmillions)


Amounts

ImpactFromFlowThroughofTaxRepairs

WECEnergyGroup

(ExcludingTaxRepairs)


Amounts

ImpactFromFlowThroughofTaxRepairs

WECEnergyGroup

(ExcludingTaxRepairs)

Operatingrevenues $ 1,608.0 $ 25.4 $ 1,633.4 $ 5,575.6 $ 76.3 $ 5,651.9

OperatingexpensesCostofsales 484.3 — 484.3 1,985.8 — 1,985.8Otheroperationandmaintenance 529.2 (16.5) 512.7 1,583.4 (48.3) 1,535.1Depreciationandamortization 233.8 — 233.8 690.1 — 690.1Propertyandrevenuetaxes 49.8 — 49.8 148.0 — 148.0Totaloperatingexpenses 1,297.1 (16.5) 1,280.6 4,407.3 (48.3) 4,359.0

Operatingincome 310.9 41.9 352.8 1,168.3 124.6 1,292.9

Equityinearningsoftransmissionaffiliates 38.7 — 38.7 111.7 — 111.7Otherincome,net 21.8 — 21.8 76.3 — 76.3Interestexpense 125.8 — 125.8 374.3 — 374.3Otherexpense (65.3) — (65.3) (186.3) — (186.3)

Incomebeforeincometaxes 245.6 41.9 287.5 982.0 124.6 1,106.6Incometaxexpense 11.3 41.9 53.2 91.5 124.6 216.1Netincome 234.3 — 234.3 890.5 — 890.5

Preferredstockdividendsofsubsidiary 0.3 — 0.3 0.9 — 0.9Netlossattributedtononcontrollinginterests 0.3 — 0.3 0.5 — 0.5

Netincomeattributedtocommonshareholders $ 234.3 $ — $ 234.3 $ 890.1 $ — $ 890.1

Effectivetaxrate 4.6% 18.5% 9.3% 19.5%

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WECENERGYGROUP,INC.

THIRDQUARTER2020AND2019RESULTS—FACTORSAFFECTINGEARNINGS

(inmillions,exceptpershareamounts) 2020 2019

ChangeB(W)

ChangeRelatedto2019Tax

Repairs

ChangeRelatedtoWEPowerLease

RemainingChangeB(W) SignificantFactors

Operatingincome(loss)bysegmentWisconsin $ 349.0 $ 290.8 $ 58.2 $ 41.9 $ (1.1) $ 17.4

10.9 Margin-Fuel 10.5 Margin-Weather 2.8 Margin-RateAdjustment(1)

(10.3) AllOtherMargin 17.2 DaytoDayO&M (4.9) AllOtherO&M (5.4) Depreciation (3.4) Other 17.4

Illinois 24.5 24.8 (0.3) — — (0.3)

(2.7) DaytoDayO&M 2.4 SMPandOther (0.3)

OtherStates (2.0) (2.2) 0.2 — — 0.2DaytoDayO&Mof$2.0,PartaillyOffsetbyDepreciation

EnergyInfrastructure 91.3 90.3 1.0 — — 1.0

CorporateandOther (6.9) (6.0) (0.9) — — (0.9)

ReconcilingEliminations (85.7) (86.8) 1.1 — 1.1 —Operatingincome 370.2 310.9 59.3 41.9 — 17.4

Equityinearningsoftransmissionaffiliates 40.1 38.7 1.4 — — 1.4 CapitalInvestment

Otherincome,net 25.7 21.8 3.9 — — 3.9HigherRabbiTrustGains(OffsetInO&M)

Interestexpense 122.0 125.8 3.8 — — 3.8 LowerInterestRatesOtherexpense (56.2) (65.3) 9.1 — — 9.1

Incomebeforeincometaxes 314.0 245.6 68.4 41.9 — 26.5

Incometaxexpense 46.9 11.3 (35.6) (41.9) — 6.3UnprotectedDeferredTaxBenefits/PTCs

Netincome 267.1 234.3 32.8 — — 32.8

Preferredstockdividendsofsubsidiary 0.3 0.3 — — — —Netlossattributedtononcontrollinginterests — 0.3 (0.3) — — (0.3)Netincomeattributedtocommonshareholders $ 266.8 $ 234.3 $ 32.5 $ — $ — $ 32.5

Earningspershare-diluted $ 0.84 $ 0.74 $ 0.10Weightedaveragecommonsharesoutstanding-diluted 316.5 316.8

(1) Includesa$23.2milliondecreaseinoperatingincomerelatedtodeferredtaxbenefitscreatedasaresultoftheTaxCutsandJobsActof2017.InaccordancewiththerateorderreceivedfromthePublicServiceCommissionofWisconsininDecember2019,ourWisconsinutilitiesarereturningtheseunprotecteddeferredtaxbenefitstocustomerstoreducenear-termrateimpacts.Thereisanoffsettingreductiontoincometaxexpense.

9

WECENERGYGROUP,INC.

THIRDQUARTERYTD2020AND2019RESULTS—FACTORSAFFECTINGEARNINGS

(inmillions,exceptpershareamounts) 2020 2019

ChangeB(W)

ChangeRelatedto2019Tax

Repairs

ChangeRelatedtoWEPowerLease

RemainingChangeB(W) SignificantFactors

Operatingincome(loss)bysegmentWisconsin $1,053.4 $ 922.8 $ 130.6 $ 124.6 $ (2.1) $ 8.1

27.5 Margin-RateAdjustment(1)

11.8 Margin-Fuel (1.2) Margin-Weather (49.5) AllOtherMargin 56.3 DaytoDayO&M (9.3) AllOtherO&M (23.6) Depreciation (3.9) Other 8.1

Illinois 245.6 205.3 40.3 — — 40.3

32.2 DaytoDayO&M 8.1 SMPandOther 40.3

OtherStates 41.4 43.9 (2.5) — — (2.5)VolumesPartiallyOffsetbyDaytoDayO&Mof$6.2

EnergyInfrastructure 274.2 274.3 (0.1) — — (0.1)

CorporateandOther (20.1) (17.0) (3.1) — — (3.1)

ReconcilingEliminations (258.9) (261.0) 2.1 — 2.1 —Operatingincome 1,335.6 1,168.3 167.3 124.6 — 42.7

Equityinearningsoftransmissionaffiliates 132.8 111.7 21.1 — — 21.1

ROEIncrease/CapitalInvestment

Otherincome,net 59.9 76.3 (16.4) — — (16.4)LowerRabbiTrustGains(OffsetinO&M)

Interestexpense 375.8 374.3 (1.5) — — (1.5)

BorrowingstoFundCapitalProjectsPartiallyOffsetbyLowerInterestRates

Otherexpense (183.1) (186.3) 3.2 — — 3.2

Incomebeforeincometaxes 1,152.5 982.0 170.5 124.6 — 45.9

Incometaxexpense 190.7 91.5 (99.2) (124.6) — 25.4UnprotectedDeferredTaxBenefits/PTCs

Netincome 961.8 890.5 71.3 — — 71.3

Preferredstockdividendsofsubsidiary 0.9 0.9 — — — —Netlossattributedtononcontrollinginterests — 0.5 (0.5) — — (0.5)Netincomeattributedtocommonshareholders $ 960.9 $ 890.1 $ 70.8 $ — $ — $ 70.8

Earningspershare-diluted $ 3.04 $ 2.81 $ 0.23Weightedaveragecommonsharesoutstanding-diluted 316.6 316.7

(1) Includesa$63.1milliondecreaseinoperatingincomerelatedtodeferredtaxbenefitscreatedasaresultoftheTaxCutsandJobsActof2017.InaccordancewiththerateorderreceivedfromthePublicServiceCommissionofWisconsininDecember2019,ourWisconsinutilitiesarereturningtheseunprotecteddeferredtaxbenefitstocustomerstoreducenear-termrateimpacts.Thereisanoffsettingreductiontoincometaxexpense.

10

WECENERGYGROUP,INC.

SummaryofOtherOperationandMaintenanceExpense-ThirdQuarter

WisconsinSegment

ThreeMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinthelineitemsbelow $ 170.6 $ 187.8 $ 17.2Transmission(1) 129.4 105.1 (24.3)WePower(2) 29.3 36.9 7.6Regulatoryamortizationsandotherpassthroughexpenses(3) 34.5 36.4 1.9Transmissionexpenserelatedtotheflowthroughoftaxrepairs(4) — 16.5 16.5TransmissionexpenserelatedtoTaxLegislation(5) — 17.5 17.5Totalotheroperationandmaintenance $ 363.8 $ 400.2 $ 36.4

(1) Representstransmissionexpensethatweareauthorizedtocollectinrates,inaccordancewiththePublicServiceCommissionofWisconsin's(PSCW's)approvalofescrowaccountingforAmericanTransmissionCompanyLLCandMidcontinentIndependentSystemOperatorInc.networktransmissionexpensesforourWisconsinelectricutilities.Asaresult,WisconsinElectricPowerCompany(WE)andWisconsinPublicServiceCorporationdeferasaregulatoryassetorliability,thedifferencebetweenactualtransmissioncostsandthoseincludedinratesuntilrecoveryorrefundisauthorizedinafuturerateproceeding.DuringthethreemonthsendedSeptember30,2020and2019,$125.0millionand$128.9million,respectively,ofcostswerebilledtoourelectricutilitiesbytransmissionproviders.

(2) RepresentscostsassociatedwiththeW.E.Power,LLC(WePower)generationunits,includingoperatingandmaintenancecostsrecognizedbyWE.DuringthethreemonthsendedSeptember30,2020and2019,$24.1millionand$26.6million,respectively,ofoperatingandmaintenancecostswerebilledtoorincurredbyWErelatedtotheWePowergenerationunits,withthedifferenceincostsbilledorincurredandexpensesrecognized,eitherdeferredordeductedfromtheregulatoryasset.

(3) Regulatoryamortizationsandotherpassthroughexpensesaresubstantiallyoffsetinmarginsandthereforedonothaveasignificantimpactonoperatingincome.

(4) Representsadditionaltransmissionexpenserecordedin2019associatedwithWE'sflowthroughofthetaxbenefitsofitsrepair-relateddeferredtaxliabilitiesstartingin2018inaccordancewithasettlementagreementwiththePSCW,tomaintaincertainregulatoryassetbalancesattheirDecember31,2017levels.Thisdecreaseinexpensewasoffsetinincometaxes.SinceWE'stransmissionregulatoryassetwaseliminatedatDecember31,2019,therewerenotaxbenefitsusedin2020.

(5) Representsadditionaltransmissionexpenserecordedin2019associatedwiththeMay2018PSCWorderrequiringWEtouse80%ofitscurrent2018taxbenefit,includingtheamortizationassociatedwiththerevaluationofdeferredtaxes,toreduceitstransmissionregulatoryassetbalance.SinceWE'stransmissionregulatoryassetwaseliminatedatDecember31,2019,therewerenotaxbenefitsusedin2020.

IllinoisSegment

ThreeMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinthelineitemsbelow $ 92.6 $ 89.9 $ (2.7)Riders(1) 17.2 12.3 (4.9)Regulatoryamortizations(1) (0.6) (0.4) 0.2Totalotheroperationandmaintenance $ 109.2 $ 101.8 $ (7.4)

(1) Theseridersandregulatoryamortizationsaresubstantiallyoffsetinmarginsandthereforedonothaveasignificantimpactonoperatingincome.

11

OtherStatesSegment

ThreeMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinlineitemsbelow $ 16.4 $ 18.4 $ 2.0Regulatoryamortizationsandotherpassthroughexpenses(1) 4.0 3.3 (0.7)Other — 0.3 0.3Totalotheroperationandmaintenance $ 20.4 $ 22.0 $ 1.6


12

WECENERGYGROUP,INC.

SummaryofOtherOperationandMaintenanceExpense-YTD

WisconsinSegment

NineMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinlineitemsbelow $ 462.5 $ 518.8 $ 56.3Transmission(1) 388.2 314.5 (73.7)WePower(2) 89.5 107.0 17.5Regulatoryamortizationsandotherpassthroughexpenses(3) 103.8 118.0 14.2Transmissionexpenserelatedtotheflowthroughoftaxrepairs(4) — 48.3 48.3TransmissionexpenserelatedtoTaxLegislation(5) — 50.2 50.2Totalotheroperationandmaintenance $ 1,044.0 1,156.8 $ 112.8

(1) Representstransmissionexpensethatweareauthorizedtocollectinrates,inaccordancewiththePublicServiceCommissionofWisconsin's(PSCW's)approvalofescrowaccountingforAmericanTransmissionCompanyLLCandMidcontinentIndependentSystemOperatorInc.networktransmissionexpensesforourWisconsinelectricutilities.Asaresult,WisconsinElectricPowerCompany(WE)andWisconsinPublicServiceCorporationdeferasaregulatoryassetorliability,thedifferencebetweenactualtransmissioncostsandthoseincludedinratesuntilrecoveryorrefundisauthorizedinafuturerateproceeding.DuringtheninemonthsendedSeptember30,2020and2019,$359.7millionand$367.0million,respectively,ofcostswerebilledtoourelectricutilitiesbytransmissionproviders.

(2) RepresentscostsassociatedwiththeW.E.Power,LLC(WePower)generationunits,includingoperatingandmaintenancecostsrecognizedbyWE.DuringtheninemonthsendedSeptember30,2020and2019,$84.7millionand$103.0million,respectively,ofoperatingandmaintenancecostswerebilledtoorincurredbyWErelatedtotheWePowergenerationunits,withthedifferenceincostsbilledorincurredandexpensesrecognized,eitherdeferredordeductedfromtheregulatoryasset.


(4) Representsadditionaltransmissionexpenserecordedin2019associatedwithWE'sflowthroughofthetaxbenefitsofitsrepair-relateddeferredtaxliabilitiesstartingin2018inaccordancewithasettlementagreementwiththePSCW,tomaintaincertainregulatoryassetbalancesattheirDecember31,2017levels.Thisdecreaseinexpensewasoffsetinincometaxes.SinceWE'stransmissionassetwaseliminatedatDecember31,2019,therewerenotaxbenefitsusedin2020.

(5) Representsadditionaltransmissionexpenserecordedin2019associatedwiththeMay2018PSCWorderrequiringWEtouse80%ofitscurrent2018taxbenefit,includingtheamortizationassociatedwiththerevaluationofdeferredtaxes,toreduceitstransmissionregulatoryassetbalance.SinceWE'stransmissionregulatoryassetwaseliminatedatDecember31,2019,therewerenotaxbenefitsusedin2020.

IllinoisSegment

NineMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinthelineitemsbelow $ 237.2 $ 269.4 $ 32.2Riders(1) 71.3 68.4 (2.9)Regulatoryamortizations(1) (2.0) (1.1) 0.9Other — 0.3 0.3Totalotheroperationandmaintenance $ 306.5 $ 337.0 $ 30.5

(1) Theseridersandregulatoryamortizationsaresubstantiallyoffsetinmarginsandthereforedonothaveasignificantimpactonoperatingincome.

13

OtherStatesSegment

NineMonthsEndedSeptember30(inmillions) 2020 2019 B(W)Operationandmaintenancenotincludedinlineitemsbelow $ 49.9 $ 56.1 $ 6.2Regulatoryamortizationsandotherpassthroughexpenses(1) 12.6 16.6 4.0Other — 0.3 0.3Totalotheroperationandmaintenance $ 62.5 $ 73.0 $ 10.5


14

WECENERGYGROUP,INC.

THIRDQUARTER2020AND2019WEATHERANDVOLUMESWeather—DegreeDays 2020 2019 ChangeWisconsinGasandWisconsinElectric(1)

Heating(109Normal) 103 24 329.2%Cooling(565Normal) 708 649 9.1%

WisconsinPublicService(2)


UpperMichiganEnergyResources(3)


PeoplesGasandNorthShoreGas(4)

Heating(72Normal) 62 13 376.9%

MinnesotaEnergyResources(5)


MichiganGas(5)


(1) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromMitchellInternationalAirportinMilwaukee,Wisconsin.

(2) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromtheGreenBay,Wisconsinweatherstation.(3) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromtheIronMountain,Michiganweatherstation.(4) Normaldegreedaysarebasedona12-yearmovingaverageofmonthlytemperaturesfromChicago'sO'HareAirport.(5) NormaldegreedaysforMinnesotaEnergyResourcesandMichiganGasarebasedona20-yearmovingaverageand15-yearmovingaverage,

respectively,ofmonthlytemperaturesfromvariousweatherstationsthroughouttheirrespectiveserviceterritories.

ELECTRICUTILITYOPERATIONS–THIRDQUARTER MWh(inthousands) 2020 2019 ChangeCustomerclassResidential 3,364.4 3,140.1 7.1%Smallcommercialandindustrial(1) 3,409.0 3,495.5 (2.5)%Largecommercialandindustrial(1) 3,163.5 3,312.4 (4.5)%Other 34.3 36.0 (4.7)%

Totalretail(1) 9,971.2 9,984.0 (0.1)%Wholesale 843.6 872.2 (3.3)%Resale 1,730.7 1,107.5 56.3%TotalMWhsales(1) 12,545.5 11,963.7 4.9%

(1) IncludesdistributionsalesforcustomerswhopurchasedpowerfromanalternativeelectricsupplierinMichigan.

GASUTILITYOPERATIONS–THIRDQUARTER

Therms

2020 2019 Change

(inmillions) Wisconsin IllinoisOtherStates Total Wisconsin Illinois

OtherStates Total Wisconsin Illinois

OtherStates Total

CustomerclassResidential 64.4 45.9 14.7 125.0 57.7 42.4 15.7 115.8 11.6% 8.3% (6.4)% 7.9%Commercial/industrial 55.3 23.0 14.5 92.8 54.6 23.8 13.1 91.5 1.3% (3.4)% 10.7% 1.4%

Totalretail 119.7 68.9 29.2 217.8 112.3 66.2 28.8 207.3 6.6% 4.1% 1.4% 5.1%Transport 264.5 86.1 146.8 497.4 285.7 98.0 172.7 556.4 (7.4)% (12.1)% (15.0)% (10.6)%Totalthermssold 384.2 155.0 176.0 715.2 398.0 164.2 201.5 763.7 (3.5)% (5.6)% (12.7)% (6.4)%

15

WECENERGYGROUP,INC.

THIRDQUARTERYTD2020AND2019WEATHERANDVOLUMESWeather—DegreeDays 2020 2019 ChangeWisconsinGasandWisconsinElectric(1)

Heating(4,354Normal) 4,023 4,480 (10.2)%Cooling(726Normal) 931 725 28.4%

WisconsinPublicService(2)


UpperMichiganEnergyResources(3)


PeoplesGasandNorthShoreGas(4)

Heating(4,012Normal) 3,627 4,171 (13.0)%

MinnesotaEnergyResources(5)

Heating(5,157Normal) 5,029 5,615 (10.4)%

MichiganGas(5)

Heating(4,101Normal) 3,897 4,129 (5.6)%

(1) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromMitchellInternationalAirportinMilwaukee,Wisconsin.

(2) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromtheGreenBay,Wisconsinweatherstation.(3) Normaldegreedaysarebasedona20-yearmovingaverageofmonthlytemperaturesfromtheIronMountain,Michiganweatherstation.(4) Normaldegreedaysarebasedona12-yearmovingaverageofmonthlytemperaturesfromChicago'sO'HareAirport.(5) NormaldegreedaysforMinnesotaEnergyResourcesandMichiganGasarebasedona20-yearmovingaverageand15-yearmovingaverage,

respectively,ofmonthlytemperaturesfromvariousweatherstationsthroughouttheirrespectiveserviceterritories.

ELECTRICUTILITYOPERATIONS–THIRDQUARTERYTD MWh(inthousands) Wisconsin2020 Wisconsin2019 ChangeCustomerclassResidential 8,782.2 8,287.6 6.0%Smallcommercialandindustrial(1) 9,299.0 9,731.4 (4.4)%Largecommercialandindustrial(1) 8,734.3 9,554.3 (8.6)%Other 113.0 120.2 (6.0)%

Totalretail(1) 26,928.5 27,693.5 (2.8)%Wholesale 2,311.4 2,536.7 (8.9)%Resale 5,152.6 4,252.2 21.2%TotalMWhsales(1) 34,392.5 34,482.4 (0.3)%

(1) IncludesdistributionsalesforcustomerswhohavepurchasedpowerfromanalternativeelectricsupplierinMichigan.

GASUTILITYOPERATIONS–THIRDQUARTERYTD

Therms

2020 2019 Change

(inmillions) Wisconsin IllinoisOtherStates Total Wisconsin Illinois

OtherStates Total Wisconsin Illinois

OtherStates Total

CustomerclassResidential 734.2 566.8 210.1 1,511.1 804.9 618.1 235.5 1,658.5 (8.8)% (8.3)% (10.8)% (8.9)%Commercial/industrial 445.9 227.5 131.6 805.0 500.8 256.1 157.2 914.1 (11.0)% (11.2)% (16.3)% (11.9)%

Totalretail 1,180.1 794.3 341.7 2,316.1 1,305.7 874.2 392.7 2,572.6 (9.6)% (9.1)% (13.0)% (10.0)%Transport 979.9 552.0 529.4 2,061.3 1,037.8 626.9 576.2 2,240.9 (5.6)% (11.9)% (8.1)% (8.0)%Totalthermsdelivered 2,160.0 1,346.3 871.1 4,377.4 2,343.5 1,501.1 968.9 4,813.5 (7.8)% (10.3)% (10.1)% (9.1)%

16

WECENERGYGROUP,INC.

RETAILELECTRICSALESVOLUMEINFORMATIONTHIRDQUARTER

DELIVEREDELECTRICVOLUMES–TOTALWISCONSINSEGMENT ThreeMonthsEndedSeptember30 Annual

2020Actualvs.2019Actual

2020Normalizedvs.2019Normalized(1),(2)

2020Forecastvs.2019Normalized(1),(2),(3)

Residential 7.1% 4.2% 1.4%Smallcommercial/industrial (2.5)% (3.3)% (4.6)%Largecommercial/industrial(ex.mine) (5.4)% (5.4)% (10.5)%Totallargecommercial/industrial (4.5)% (4.5)% (11.9)%Totalretailsalesvolumes (0.1)% (1.4)% (5.3)%Totalretailsalesvolumes(ex.mine) (0.3)% (1.5)% (4.6)%

RETAILELECTRICSALESVOLUMEINFORMATIONTHIRDQUARTERYTD

DELIVEREDELECTRICVOLUMES–TOTALWISCONSINSEGMENT NineMonthsEndedSeptember30 Annual




Residential 6.0% 3.6% 1.4%Smallcommercial/industrial (4.4)% (5.3)% (4.6)%Largecommercial/industrial(ex.mine) (7.1)% (7.9)% (10.5)%Totallargecommercial/industrial (8.6)% (9.3)% (11.9)%Totalretailsalesvolumes (2.8)% (4.0)% (5.3)%Totalretailsalesvolumes(ex.mine) (2.1)% (3.4)% (4.6)%

(1) Normalized—20yearaverageweatheradjusted.

(2) Actualresultsmaydiffermateriallyfromtheseforecastsbecauseofseasonal,economic,andotherfactors.Anadjustmentforleapyearin2020isfactoredintothepercentagesfortheninemonthsendedSeptember30.

(3) SalesForecastUpdate

The2020forecastedsalesvolumesincludeourcurrentassessmentoftheimpactsoftheCOVID-19pandemic.Theyreflectactual2020salesvolumesfortheninemonthsendedSeptember30,2020,trendsseeninOctober,andaprojectionfortheremainderoftheyear.Wesawanincreaseinresidentialsalesvolumesinthethirdquarterasmanyofourresidentialcustomerscontinuetostayathomeasaresultofthepandemic.Wealsoobservedadecreaseintheconsumptionofenergybysomeofourcommercialandindustrialcustomersasmanyofthesecustomershaveexperiencedlowerdemandfortheirproductsandservices.Inaddition,manybusinessesinWisconsincontinuetooperateatreducedcapacity.Ultimately,theextenttowhichtheCOVID-19pandemicmayaffectoursalesdependsonfactorsbeyondourcontrol,includingtheextentandspeedofthevirus'sspreadanditscontinuingimpactsonallofourcustomers,thelengthoftimebusinessesoperateatreducedcapacity,andthedemandforourcommercialandindustrialcustomers'productsandservices.

ThetablebelowshowsthechangeinweathernormalizedsalesvolumesfortheninemonthsendedSeptember30,2020,comparedtothesameperiodin2019,brokenoutbyquarter.

THIRDQUARTERYTDRETAILELECTRICSALESVOLUMEINFORMATION-2020Normalizedvs.2019NormalizedVolumesbyQuarter

Q1 Q2 Q3 YTDResidential (0.4)% 7.3% 4.2% 3.6%Smallcommercial/industrial (1.4)% (11.3)% (3.3)% (5.3)%Largecommercial/industrial(ex.mine) (4.1)% (14.1)% (5.4)% (7.9)%Totalretailsalesvolumes(ex.mine) (2.0)% (6.9)% (1.5)% (3.4)%

17

WECENERGYGROUP,INC.

RETAILNATURALGASSALESVOLUMEINFORMATIONTHIRDQUARTER

DELIVEREDNATURALGASVOLUMES–TOTALWISCONSINSEGMENT ThreeMonthsEndedSeptember30 Annual




Residential 11.5% 4.2% (0.1)%Totalcommercial/industrial 1.3% (4.2)% (3.2)%Totalretailsalesvolumes 6.6% 0.1% (1.3)%Transport(w/opowergeneration) (5.4)% (5.8)% (4.7)%Totalsalesvolumes(w/opowergeneration) (1.8)% (4.0)% (2.7)%

RETAILNATURALGASSALESVOLUMEINFORMATIONTHIRDQUARTERYTD

DELIVEREDNATURALGASVOLUMES–TOTALWISCONSINSEGMENT NineMonthsEndedSeptember30 Annual




Residential (8.8)% —% (0.1)%Totalcommercial/industrial (11.0)% (4.0)% (3.2)%Totalretailsalesvolumes (9.6)% (1.5)% (1.3)%Transport(w/opowergeneration) (5.6)% (4.6)% (4.7)%Totalsalesvolumes(w/opowergeneration) (7.9)% (2.9)% (2.7)%

(1) Normalized—20yearaverageweatheradjusted.

(2) Actualresultsmaydiffermateriallyfromtheseforecastsbecauseofseasonal,economic,andotherfactors.Anadjustmentforleapyearin2020isfactoredintothepercentagesfortheninemonthsendedSeptember30.

(3) SalesForecastUpdate

The2020forecastedsalesvolumesincludeourcurrentassessmentoftheimpactsoftheCOVID-19pandemic.Theyreflectactual2020salesvolumesfortheninemonthsendedSeptember30,2020,trendsseeninOctober,andaprojectionfortheremainderoftheyear.Wesawanincreaseinresidentialsalesvolumesinthethirdquarterasmanyofourresidentialcustomerscontinuetostayathomeasaresultofthepandemic.Wealsoobservedadecreaseintheconsumptionofenergybysomeofourcommercialandindustrialcustomersasmanyofthesecustomershaveexperiencedlowerdemandfortheirproductsandservices.Inaddition,manybusinessesinWisconsincontinuetooperateatreducedcapacity.Ultimately,theextenttowhichtheCOVID-19pandemicmayaffectoursalesdependsonfactorsbeyondourcontrol,includingtheextentandspeedofthevirus'sspreadanditscontinuingimpactsonallofourcustomers,thelengthoftimebusinessesoperateatreducedcapacity,andthedemandforourcommercialandindustrialcustomers'productsandservices.

18

WECENERGYGROUP,INC.

OTHERFINANCIALINFORMATIONNINEMONTHSENDEDSEPTEMBER30,2020AND2019

EBITandEBITDA 2020 2019(inmillions) Actual ActualNetincomeattributedtocommonshareholders $ 960.9 $ 890.1Incometaxexpense 190.7 91.5Interestexpense 375.8 374.3EBIT 1,527.4 1,355.9

Depreciationandamortization 726.6 690.1EBITDA $ 2,254.0 $ 2,046.0

CapitalizationStructure September30,2020(inmillions) Actual Adjusted(1)

Commonshareholders'equity $ 10,450.7 $ 10,700.7Preferredstockofsubsidiary 30.4 30.4Long-termdebt(includingcurrentportion) 12,248.7 11,998.7Short-termdebt 771.0 771.0Totalcapitalization $ 23,500.8 $ 23,500.8

Totaldebt $ 13,019.7 $ 12,769.7Ratioofdebttototalcapitalization 55.4% 54.3%

CapitalizationStructure December31,2019(inmillions) Actual Adjusted(1)

Commonshareholders'equity $ 10,113.4 $ 10,363.4Preferredstockofsubsidiary 30.4 30.4Long-termdebt(includingcurrentportion) 11,904.2 11,654.2Short-termdebt 830.8 830.8Totalcapitalization $ 22,878.8 $ 22,878.8

Totaldebt $ 12,735.0 $ 12,485.0Ratioofdebttototalcapitalization 55.7% 54.6%

(1) Includedinlong-termdebtonourConsolidatedBalanceSheetsasofSeptember30,2020andDecember31,2019,is$500.0millionprincipalamountofWECEnergyGroup's2007JuniorSubordinatedNotesdue2067.Theadjustedpresentationattributes$250.0millionoftheJuniorNotestocommonshareholders'equityand$250.0milliontolong-termdebt,similartohowthemajorityofratingagenciestreatthem.

19

CREDITRATINGS

S&P Moody's FitchWECEnergyGroup,Inc.

Seniorunsecureddebt BBB+ Baa1 BBB+Commercialpaper A-2 P-2 F2Juniorsubordinatednotes BBB Baa2 BBB-

WisconsinElectricSeniorunsecureddebt A- A2 A+Commercialpaper A-2 P-1 F1

WisconsinPublicServiceSeniorunsecureddebt A- A2 A+Commercialpaper A-2 P-1 F1

WisconsinGasSeniorunsecureddebt A A3 ACommercialpaper A-1 P-2 F2

PeoplesGasLight&CokeSeniorsecureddebt N/A Aa3 A+Commercialpaper A-2 P-1 F2

ElmRoadGeneratingStationSupercritical,LLCSeniorsecureddebt A- A2 A+

IntegrysHolding,Inc.Seniorunsecureddebt BBB+ Baa1 BBB+Juniorsubordinatednotes BBB Baa2 BBB-

20

$0.74

$0.84

$0.11

$0.00 $0.01

$0.02

2019 Q3 EPS Utility Operations ATC Energy Infrastructure Corporate and Other 2020 Q3 EPS

Quarterly EPS Earnings Drivers

(1) All amounts (other than actual quarter-end EPS results) are presented on an after tax basis assuming a statutory effective tax rate.

(2) Includes aggregate results across our Wisconsin, Illinois, Michigan and Minnesota utilities.

(3) O&M expense related to deferred compensation liabilities at the utilities substantially offset Rabbi Trust variance.

(4) Primarily includes rate adjustment and additional capital investment of $0.06, fuel of $0.02, sales impacts from the COVID-19 pandemic of ($0.01).

(5) Primarily includes Rabbi Trust performance of $0.01, interest of $0.01, tax items of ($0.03), and other of ($0.01).

Primary Drivers:

$0.04 Day to Day

O&M

$0.03 Weather

$0.07 Rate Adjustment

and Other

$0.03 D&A

Primary Driver:

$0.01 Production

Tax Credits Primary Drivers:

Taxes and other, partially

offset by lower interest

expense and Rabbi Trust

(1)

(4)

(2)

(3, 5)

(3)

21

Investing $16.1 billion for:

Efficiency

Sustainability

Growth

2021-2025

Our ESG Progress Plan

Note: This and the next two slides are subject to the forward looking disclaimer contained in the press release that is part

of this earnings package

22

Regulated Generation 2021-2025

ESG Progress Plan

Retiring

1,400 MW of coal-fuel generation

400 MW of older, less-efficient gas generation

Building

800 MW of new solar

600 MW of battery storage

100 MW of wind

100 MW of RICE generation

Investing

200 MW of combined cycle generation

23

$2,377 $3,078

$3,091

$3,150

$2,760

$3,023

$3,198

$3,054

$480

$487 $1,257

$1,120

$1,838

$2,188

$15,001

$16,100

2020-2024 2021-2025

Energy Infrastructure

ATC*

MERC/MGU

Illinois

WI Gas Delivery**

WI Electric Delivery**

WI Generation**

New

Pla

n

Fo

rmer

Pla

n

ESG Progress Plan Continues to Support 5-7% EPS Growth

Increasing Five-Year Capital Plan by $1.1 Billion

*ATC is accounted for using the equity method; this represents WEC’s portion of the investment

**Includes UMERC

$ In millions

24

Documents

2020 Q3 WEC Earnings Package...$3.71 to $3.75 per share. Earnings per share listed in this news release are on a fully diluted basis. Conference call A conference call is scheduled