This report does not constitute a rating action. Overview Key strengths Key risks Low-risk, rate-regulated utility operations. Growing customer concentration exposure. Highly constructive ratemaking in Wisconsin. Robust capital spending. Large data center projects expected to spur significant volumetric growth. Nonutility acquisitions that increase business risk. The Mount Pleasant data center, with a capacity of 2.1 gigawatts (GW), and the Port Washington data center, at 1.3 GW, are currently under construction in WEC?s Wisconsin service territory. These facilities are expected to significantly boost WEC?s volumetric sales growth from 2026 to 2030, thereby increasing WEC?s customer concentration risk. The data center clients include Microsoft (AAA/Stable/A-1+), OpenAI (unrated), and Oracle Corp. (BBB/Negative/A-2). To mitigate this concentration risk, WEC?s subsidiary, Wisconsin Electric Power Co.
