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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-K

(Mark One)

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ___________________

Commission File Number		Registrant; State of Incorporation; Address; and Telephone Number		IRS Employer Identification No.
001-09057		WEC ENERGY GROUP, INC.		39-1391525

(A Wisconsin Corporation)

231 West Michigan Street

P.O. Box 1331

Milwaukee, WI 53201

(414) 221-2345

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, $.01 Par Value		WEC		New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒ No ☐

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

	Large accelerated filer	☒		Accelerated filer	☐
	Non-accelerated filer	☐		Smaller reporting company		☐
				Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The aggregate market value of the common stock of WEC Energy Group, Inc. held by non-affiliates was $26.3 billion based upon the reported closing price of such securities as of June 30, 2019.

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date (January 31, 2020):

Common Stock, $.01 par value, 315,434,531 shares outstanding

Documents incorporated by reference:

Portions of WEC Energy Group, Inc.'s Definitive Proxy Statement on Schedule 14A for its Annual Meeting of Shareholders, to be held on May 6, 2020, are incorporated by reference into Part III hereof.

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WEC ENERGY GROUP, INC.

ANNUAL REPORT ON FORM 10-K

For the Year Ended December 31, 2019

TABLE OF CONTENTS

					Page
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION					1
PART I					3
ITEM 1.	BUSINESS				3
	A.	INTRODUCTION			3
	B.	UTILITY ENERGY OPERATIONS			3
	C.	ELECTRIC TRANSMISSION SEGMENT			14
	D.	NON-UTILITY OPERATIONS			15
	E.	REGULATION			16
	F.	ENVIRONMENTAL COMPLIANCE			19
	G.	EMPLOYEES			20
ITEM 1A.	RISK FACTORS				21
ITEM 1B.	UNRESOLVED STAFF COMMENTS				31
ITEM 2.	PROPERTIES				32
ITEM 3.	LEGAL PROCEEDINGS				34
ITEM 4.	MINE SAFETY DISCLOSURES				35
	INFORMATION ABOUT OUR EXECUTIVE OFFICERS				36
PART II					38
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES				38
ITEM 6.	SELECTED FINANCIAL DATA				38
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS				39
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK				67
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA				68
	A.	Reports of Independent Registered Public Accounting Firm			68
	B.	Consolidated Income Statements			71
	C.	Consolidated Statements of Comprehensive Income			72
	D.	Consolidated Balance Sheets			73
	E.	Consolidated Statements of Cash Flows			74
	F.	Consolidated Statements of Equity			75
	G.	Notes to Consolidated Financial Statements			76
		Note 1	Summary of Significant Accounting Policies	76
		Note 2	Acquisitions	87
		Note 3	Dispositions	89
		Note 4	Operating Revenues	90
		Note 5	Regulatory Assets and Liabilities	92
		Note 6	Property, Plant, and Equipment	94
		Note 7	Jointly Owned Utility Facilities	96
		Note 8	Asset Retirement Obligations	97
		Note 9	Goodwill	97
		Note 10	Common Equity	98
		Note 11	Preferred Stock	100
		Note 12	Short-Term Debt and Lines of Credit	101
		Note 13	Long-Term Debt	102
		Note 14	Leases	104
		Note 15	Income Taxes	108
		Note 16	Fair Value Measurements	111
		Note 17	Derivative Instruments	112

2019 Form 10-K	i	WEC Energy Group, Inc.

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		Note 18	Guarantees	114
		Note 19	Employee Benefits	114
		Note 20	Investment in Transmission Affiliates	119
		Note 21	Segment Information	121
		Note 22	Variable Interest Entities	123
		Note 23	Commitments and Contingencies	124
		Note 24	Supplemental Cash Flow Information	128
		Note 25	Regulatory Environment	129
		Note 26	Other Income, Net	133
		Note 27	Quarterly Financial Information (Unaudited)	133
		Note 28	New Accounting Pronouncements	134
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE				135
ITEM 9A.	CONTROLS AND PROCEDURES				135
ITEM 9B.	OTHER INFORMATION				135
PART III					136
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE OF THE REGISTRANT				136
ITEM 11.	EXECUTIVE COMPENSATION				136
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS				136
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE				137
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES				137
PART IV					138
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES				138
ITEM 16.	FORM 10-K SUMMARY				143
SCHEDULE I — CONDENSED PARENT COMPANY FINANCIAL STATEMENTS					144
	A.	Income Statements			144
	B.	Statements of Comprehensive Income			145
	C.	Balance Sheets			146
	D.	Statements of Cash Flows			147
	E.	Notes to Parent Company Financial Statements			148
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS					150
SIGNATURES					151

2019 Form 10-K	ii	WEC Energy Group, Inc.

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GLOSSARY OF TERMS AND ABBREVIATIONS

The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below:

Subsidiaries and Affiliates
ATC		American Transmission Company LLC
ATC Holdco		ATC Holdco LLC
ATC Holding		ATC Holding LLC
Bishop Hill III		Bishop Hill Energy III LLC
Blooming Grove		Blooming Grove Wind Energy Center LLC
Bluewater		Bluewater Natural Gas Holding, LLC
Bluewater Gas Storage		Bluewater Gas Storage, LLC
Bostco		Bostco LLC
Coyote Ridge		Coyote Ridge Wind, LLC
Integrys		Integrys Holding, Inc.
MERC		Minnesota Energy Resources Corporation
MGU		Michigan Gas Utilities Corporation
NSG		North Shore Gas Company
PDL		WPS Power Development, LLC
PELLC		Peoples Energy, LLC
PGL		The Peoples Gas Light and Coke Company
Thunderhead		Thunderhead Wind Energy LLC
UMERC		Upper Michigan Energy Resources Corporation
Upstream		Upstream Wind Energy LLC
WBS		WEC Business Services LLC
WE		Wisconsin Electric Power Company
We Power		W.E. Power, LLC
WEC Energy Group		WEC Energy Group, Inc.
WECC		Wisconsin Energy Capital Corporation
WECI		WEC Infrastructure LLC
WG		Wisconsin Gas LLC
Wispark		Wispark LLC
Wisvest		Wisvest LLC
WPS		Wisconsin Public Service Corporation
WRPC		Wisconsin River Power Company
Federal and State Regulatory Agencies
EPA		United States Environmental Protection Agency
FERC		Federal Energy Regulatory Commission
ICC		Illinois Commerce Commission
IDNR		Illinois Department of Natural Resources
IEPA		Illinois Environmental Protection Agency
IRS		United States Internal Revenue Service
MPSC		Michigan Public Service Commission
MPUC		Minnesota Public Utilities Commission
PSCW		Public Service Commission of Wisconsin
SEC		Securities and Exchange Commission
WDNR		Wisconsin Department of Natural Resources
Accounting Terms
AFUDC		Allowance for Funds Used During Construction
ARO		Asset Retirement Obligation
ASC		Accounting Standards Codification

2019 Form 10-K	iii	WEC Energy Group, Inc.

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ASU		Accounting Standards Update
CWIP		Construction Work in Progress
FASB		Financial Accounting Standards Board
GAAP		Generally Accepted Accounting Principles
LIFO		Last-In, First-Out
OPEB		Other Postretirement Employee Benefits
SAB		Staff Accounting Bulletin
Environmental Terms
ACE		Affordable Clean Energy
Act 141		2005 Wisconsin Act 141
BATW		Bottom Ash Transport Water
BSER		Best System of Emission Reduction
BTA		Best Technology Available
CAA		Clean Air Act
CO2		Carbon Dioxide
ELG		Steam Electric Effluent Limitation Guidelines
FGD		Flue Gas Desulfurization
GHG		Greenhouse Gas
NAAQS		National Ambient Air Quality Standards
GMZ		Groundwater Management Zone
MATS		Mercury and Air Toxics Standards
NOV		Notice of Violation
NOx		Nitrogen Oxide
PCB		Polychlorinated Biphenyl
RTR		Risk and Technology Review
SO2		Sulfur Dioxide
VN		Violation Notice
Measurements
Dth		Dekatherm
MDth		One thousand Dekatherms
MW		Megawatt
MWh		Megawatt-hour
Other Terms and Abbreviations
2007 Junior Notes		WEC Energy Group, Inc.'s 2007 Junior Subordinated Notes Due 2067
AG		Attorney General
AMI		Advanced Metering Infrastructure
ARR		Auction Revenue Right
Badger Hollow I		Badger Hollow Solar Farm I
Badger Hollow II		Badger Hollow Solar Farm II
CFR		Code of Federal Regulations
Compensation Committee		Compensation Committee of the Board of Directors
D.C. Circuit Court of Appeals		United States Court of Appeals for the District of Columbia Circuit
ERGS		Elm Road Generating Station
ER 1		Elm Road Generating Station Unit 1
ER 2		Elm Road Generating Station Unit 2
ERP		Enterprise Resource Planning
Exchange Act		Securities Exchange Act of 1934, as amended
FTR		Financial Transmission Right
GCRM		Gas Cost Recovery Mechanism

2019 Form 10-K	iv	WEC Energy Group, Inc.

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GUIC		Gas Utility Infrastructure Costs
Holding Company Act		Wisconsin Utility Holding Company Act
LIBOR		London Interbank Offered Rate
LMP		Locational Marginal Price
LNG		Liquefied Natural Gas
MISO		Midcontinent Independent System Operator, Inc.
MISO Energy Markets		MISO Energy and Operating Reserves Market
NYMEX		New York Mercantile Exchange
OCPP		Oak Creek Power Plant
OC 5		Oak Creek Power Plant Unit 5
OC 6		Oak Creek Power Plant Unit 6
OC 7		Oak Creek Power Plant Unit 7
OC 8		Oak Creek Power Plant Unit 8
Omnibus Stock Incentive Plan		WEC Energy Group 1993 Omnibus Stock Incentive Plan, Amended and Restated Effective as of January 1, 2016
PIPP		Presque Isle Power Plant
Point Beach		Point Beach Nuclear Power Plant
PUHCA 2005		Public Utility Holding Company Act of 2005
PWGS		Port Washington Generating Station
PWGS 1		Port Washington Generating Station Unit 1
PWGS 2		Port Washington Generating Station Unit 2
QIP		Qualifying Infrastructure Plant
RCC		Replacement Capital Covenant (dated May 11, 2007)
ROE		Return on Equity
RTO		Regional Transmission Organization
SMP		Natural Gas System Modernization Program
SOX		Section 404 of the Sarbanes-Oxley Act
SREC		Solar Renewable Energy Certificate
SSR		System Support Resource
Tax Legislation		Tax Cuts and Jobs Act of 2017
Tilden		Tilden Mining Company
Two Creeks		Two Creeks Solar Project
VAPP		Valley Power Plant
VITA		Variable Income Tax Adjustment Rider

2019 Form 10-K	v	WEC Energy Group, Inc.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

In this report, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements may be identified by reference to a future period or periods or by the use of terms such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goals," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "seeks," "should," "targets," "will," or variations of these terms.

Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings, completion of capital projects, sales and customer growth, rate actions and related filings with regulatory authorities, environmental and other regulations and associated compliance costs, legal proceedings, dividend payout ratios, effective tax rates, pension and OPEB plans, fuel costs, sources of electric energy supply, coal and natural gas deliveries, remediation costs, environmental matters, liquidity and capital resources, and other matters.

Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include those described in Item 1A. Risk Factors and those identified below:

•	Factors affecting utility operations such as catastrophic weather-related damage, environmental incidents, unplanned facility outages and repairs and maintenance, and electric transmission or natural gas pipeline system constraints;

•	Factors affecting the demand for electricity and natural gas, including political developments, unusual weather, changes in economic conditions, customer growth and declines, commodity prices, energy conservation efforts, and continued adoption of distributed generation by customers;

•	The timing, resolution, and impact of rate cases and negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting our regulated operations;

•

The impact of recent and future federal, state, and local legislative and/or regulatory changes, including changes in rate-setting policies or procedures, deregulation and restructuring of the electric and/or natural gas utility industries, transmission or distribution system operation, the approval process for new construction, reliability standards, pipeline integrity and safety standards, allocation of energy assistance, energy efficiency mandates, and tax laws, including the Tax Legislation as well as those that affect our ability to use production tax credits and investment tax credits;

•

Federal and state legislative and regulatory changes relating to the environment, including climate change and other environmental regulations impacting generation facilities and renewable energy standards, the enforcement of these laws and regulations, changes in the interpretation of regulations or permit conditions by regulatory agencies, and the recovery of associated remediation and compliance costs;

•	The ability to obtain and retain customers, including wholesale customers, due to increased competition in our electric and natural gas markets from retail choice and alternative electric suppliers, and continued industry consolidation;

•	The timely completion of capital projects within budgets and the ability to recover the related costs through rates;

•	Factors affecting the implementation of our generation reshaping plan, including related regulatory decisions, the cost of materials, supplies, and labor, and the feasibility of competing projects;

•	The financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases;

•

The risks associated with changing commodity prices, particularly natural gas and electricity, and the availability of sources of fossil fuel, natural gas, purchased power, materials needed to operate environmental controls at our electric generating facilities, or water supply due to high demand, shortages, transportation problems, nonperformance by electric energy or natural gas suppliers under existing power purchase or natural gas supply contracts, or other developments;

2019 Form 10-K	1	WEC Energy Group, Inc.

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•	Changes in credit ratings, interest rates, and our ability to access the capital markets, caused by volatility in the global credit markets, our capitalization structure, and market perceptions of the utility industry, us, or any of our subsidiaries;

•	Changes in the method of determining LIBOR or the replacement of LIBOR with an alternative reference rate;

•	Costs and effects of litigation, administrative proceedings, investigations, settlements, claims, and inquiries;

•

The direct or indirect effect on our business resulting from terrorist attacks and cyber security intrusions, as well as the threat of such incidents, including the failure to maintain the security of personally identifiable information, the associated costs to protect our utility assets, technology systems, and personal information, and the costs to notify affected persons to mitigate their information security concerns and to comply with state notification laws;

•	Restrictions imposed by various financing arrangements and regulatory requirements on the ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances, that could prevent us from paying our common stock dividends, taxes, and other expenses, and meeting our debt obligations;

•	The risk of financial loss, including increases in bad debt expense, associated with the inability of our customers, counterparties, and affiliates to meet their obligations;

•	Changes in the creditworthiness of the counterparties with whom we have contractual arrangements, including participants in the energy trading markets and fuel suppliers and transporters;

•	The financial performance of ATC and its corresponding contribution to our earnings;

•	The investment performance of our employee benefit plan assets, as well as unanticipated changes in related actuarial assumptions, which could impact future funding requirements;

•	Factors affecting the employee workforce, including loss of key personnel, internal restructuring, work stoppages, and collective bargaining agreements and negotiations with union employees;

•	Advances in technology, and related legislation or regulation supporting the use of that technology, that result in competitive disadvantages and create the potential for impairment of existing assets;

•	The risk associated with the values of goodwill and other intangible assets and their possible impairment;

•	Potential business strategies to acquire and dispose of assets or businesses, which cannot be assured to be completed timely or within budgets, and legislative or regulatory restrictions or caps on non-utility acquisitions, investments or projects, including the State of Wisconsin's public utility holding company law;

•	The timing and outcome of any audits, disputes, and other proceedings related to taxes;

•	The ability to maintain effective internal controls in accordance with SOX, while both integrating and continuing to consolidate our enterprise systems;

•	The effect of accounting pronouncements issued periodically by standard-setting bodies; and

•	Other considerations disclosed elsewhere herein and in other reports we file with the SEC or in other publicly disseminated written documents.

We expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

2019 Form 10-K	2	WEC Energy Group, Inc.

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PART I