WEC Energy Group Inc.

Our stable outlook on WEC over the next two years reflects our expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes to avoid heightened business risk. The outlook also reflects our base-case forecast level of adjusted funds from operations (FFO) to debt averaging roughly 16% per year, in line with the current financial risk profile of significant. We could lower the rating if WEC's business risk profile, which we assess as excellent, weakened. We could also lower the rating if core financial measures consistently underperformed our base-case forecast and remained at less credit-supportive levels, including annual adjusted FFO to total debt of less than 15%. This could occur if rate-case outcomes were

...WEC Energy Group Inc. (WEC) has increased its proportion of wind generation in the fuel mix. WEC increased its planned investments in wind projects to about $1.6 billion, adding approximately 1,130 megawatts (MW) in capacity and resulting in a higher proportion of renewable generation. These investments provide a low-risk path for WEC to expand its regulated asset base while generating tax credits that lower the overall cost of the projects. Continued investment in renewable generation will complement the company's long-term strategy of diversifying its generation portfolio. WEC filed for approval to invest about $130 million in solar generation that would add approximately 100 MW of capacity. Proposed investments in wind and solar generation will help WEC lower emissions and reduce the proportion of coal-based generation. We expect the company to fund these investments in a credit-supportive manner. We believe this transition to renewable generation and reduction in environmental risks...

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