Research Update: WEC Energy Group Inc. Outlook Revised To Stable From Negative On Expected Financial Improvement; Ratings Affirmed

The Illinois Commerce Commission recently approved a $315 million rate increase for WEC Energy Group Inc.?s natural gas utility subsidiaries The Peoples Gas Light&Coke Co. and North Shore Gas Co., which is in line with our expectations. The rate increase follows WEC's recent announcement of issuing $1.8 billion-$2.2 billion of new common equity between 2024-2028, in addition to its commitment to fund future incremental capital beyond its base-case expectations with common equity. The company's financial performance has gradually improved in 2023 and we expect that, beginning in 2024, its funds from operations (FFO) to debt will remain consistently above 15%. Therefore, we revised our outlooks on WEC and subsidiary Elm Road Generating Station Supercritical LLC to stable from

...- The Illinois Commerce Commission recently approved a $315 million rate increase for WEC Energy Group Inc.'s natural gas utility subsidiaries The Peoples Gas Light & Coke Co. and North Shore Gas Co., which is in line with our expectations. The rate increase follows WEC's recent announcement of issuing $1.8 billion-$2.2 billion of new common equity between 2024-2028, in addition to its commitment to fund future incremental capital beyond its base-case expectations with common equity. - The company's financial performance has gradually improved in 2023 and we expect that, beginning in 2024, its funds from operations (FFO) to debt will remain consistently above 15%. - Therefore, we revised our outlooks on WEC and subsidiary Elm Road Generating Station Supercritical LLC to stable from negative and affirmed our ratings. - The stable outlook reflects our expectation that the company's financial measures, including its FFO to debt, will remain consistently above our downgrade thresholds, albeit...

Research Update