WEC Energy announces proposed Illinois settlement

In a regulatory filing, WEC Energy (WEC) said that on February 3, the Peoples Gas Light and Coke Company and North Shore Gas Company, Illinois utility subsidiaries of WEC Energy Group, agreed on the terms of a proposed settlement with the People of the State of Illinois, by and through Kwame Raoul, Attorney General of the State of Illinois, that, if approved by the Illinois Commerce Commission following a public review process, would resolve all open proceedings in Illinois related to the Qualifying Infrastructure Plant rider and the Uncollectible Expense Adjustment rider. The QIP Proceedings include reconciliations from 2017 to 2023 when the rider sunset, and the UEA Proceedings include reconciliations from 2019 to 2023. In order to resolve the QIP Proceedings, PGL agreed to permanently remove $130M of qualified infrastructure investment costs from rate base starting in 2027 and to distribute $75M to its customers as bill credits over the three year period 2026-2028. PGL and NSG agreed to distribute $49M and $1M, respectively, to customers as bill credits over the three year period 2026-2028, to resolve the UEA Proceedings.Due to the Settlement Agreement, WEC Energy’s 2025 financial results will reflect the impact of a $205M, or 46x per share, charge rather than the $150M charge that WEC Energy previously reported it expected to record in 2025. The total of the rate base reduction and the obligation to distribute bill credits recorded on its balance sheet at December 31, 2025 is $255M.