WEC Energy Group (WEC) 10-K risk factor changes: FY2021 vs FY2020

Our operations are subject to extensive and evolving federal, state, and local environmental laws, regulations, and permit requirements related to, among other things, air emissions (including, but not limited to: CO2, methane, mercury, SO2, and NOx), protection of natural resources, water quality, wastewater discharges, and management of [removed: hazardous, toxic,] [added: hazardous] and [added: toxic substances and] solid wastes and [removed: substances.][added: soils.]

For example, the EPA adopted and implemented (or is in the process of implementing) regulations governing the emission of NOx, [removed: SO2,] [added: ozone,] fine [removed: particulate matter, mercury,] [added: particulates,] and other air pollutants under the CAA through the NAAQS, climate change [added: regulations, New Source Performance Standards for GHG emissions from new, modified, and reconstructed fossil-fueled power plants, and other air quality regulations.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 22] [added: 24] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

Several of these rules are being [removed: challenged,] [added: challenged or reviewed by agencies under the Biden Administration's Executive Order 13990,] which creates additional uncertainty.

[removed: In addition,] [added: As a result of these challenges and reviews,] existing environmental laws and regulations may be revised or new laws or regulations may be adopted at the federal, state, or local level.

We incur significant capital and operating resources to comply with these environmental laws, regulations, and requirements, including costs associated with the installation of pollution control [removed: equipment to further limit GHG emissions from our operations;] [added: equipment;] operating restrictions on our facilities; and environmental monitoring, emissions fees, and permits at our facilities.

These regulations may create substantial additional costs in the form of taxes or emission allowances and could affect the availability and/or cost of fossil [removed: fuels.][added: fuels and our ability to continue operating certain generating units.]

Under the ESG Progress Plan, we expect to retire approximately [removed: 1,800] [added: 1,600] MW of additional fossil-fueled generation by 2025, to be replaced with the construction of [removed: zero-carbon emitting renewable generation] [added: zero-carbon-emitting renewables] and [added: clean] natural [removed: gas-fired] [added: gas-fueled] generation.

Litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental laws and regulations, [removed: has become more frequent] [added: occurs frequently] throughout the United States.

[removed: Although the previously issued ACE rule was vacated in January 2021 adding additional uncertainty, President Biden has indicated that] [added: Management expects this attention to continue since] climate change [removed: will become] [added: is] one of [removed: his] [added: President Biden's] primary initiatives, with significant actions expected by his administration during his term in office.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 23] [added: 25] | | | *WEC Energy Group, Inc.* | | |

GHG regulations that may be adopted in the future, at either the federal or state level, [added: or other necessary changes to our ESG Progress Plan,] may cause our environmental compliance spending to differ materially from the amounts currently estimated.

We [removed: also] continue to monitor the financial and operational feasibility of taking more aggressive action to further reduce GHG emissions in order to limit future global temperature increases.

Our plan to replace older, fossil-fueled generation with zero-carbon emitting [removed: renewable generation] [added: renewables] and [added: clean] natural [removed: gas-fired] [added: gas-fueled] generation will contribute to the achievement of our goals related to reducing CO2 and methane [removed: emissions.][added: emissions as well as coal as an energy source.]

However, our ability to achieve such goals depends on many external factors, including the development of relevant energy [removed: technologies.][added: technologies and the ability to execute our capital plan.]

Future changes to corporate tax rates or policies, including under the [removed: new United States presidential administration,] [added: Biden Administration,] could require us to take material charges against earnings.

In addition, we have invested, [removed: or] [added: and] plan to [added: continue to] invest, in renewable energy generating facilities.

[removed: The amount of tax credits we earn depends on the amount of electricity] produced, the applicable tax credit rate, or the amount of the investment in qualifying property.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 24] [added: 26] | | | *WEC Energy Group, Inc.* | | |

The ongoing COVID-19 pandemic [added: has adversely affected, and] could [added: continue to] adversely [removed: affect] [added: affect,] our business functions, financial condition, liquidity, and results of operations.

[removed: In addition, similar or more restrictive orders] [added: Orders limiting the capacity of various businesses] could be adopted in the future depending on how the virus continues to [removed: spread and/or mutate.][added: mutate and spread.]

We [added: may also be adversely impacted by reduced labor availability and productivity as a result of COVID-19 infections, although we] have taken precautions with regard to employee hygiene and facility cleanliness, imposed travel limitations on our employees, [added: implemented additional protocols for our field employees who travel to customer premises,] provided additional employee benefits, and implemented remote work policies where appropriate.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 25] [added: 27] | | | *WEC Energy Group, Inc.* | | |

Our operations are subject to risks arising from the reliability of our electric generation, transmission, and distribution facilities, natural gas infrastructure facilities, [added: natural gas storage fields,] renewable energy facilities, and other facilities, as well as the reliability of third-party transmission providers.

Our financial performance depends on the successful operation of our electric generation, natural gas and electric distribution facilities, [added: natural gas storage fields,] and renewable energy facilities.

Potential breakdown or failure may occur due to severe [removed: weather;] [added: weather as a result of climate change or otherwise (i.e., storms, tornadoes, floods, droughts, etc.);] catastrophic events (i.e., fires, earthquakes, explosions, [removed: tornadoes, floods, droughts,] pandemic health events, etc.); significant changes in water levels in waterways; fuel supply or transportation disruptions; accidents; employee labor disputes; construction delays or cost overruns; shortages of or delays in obtaining equipment, material, and/or labor; performance below expected levels; operating limitations that may be imposed by environmental or other regulatory requirements; terrorist attacks; or cyber security intrusions.

Conservation of energy can be influenced by certain federal and state programs that are intended to influence how [added: consumers use energy.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 26] [added: 28] | | | *WEC Energy Group, Inc.* | | |

[removed: Any of these matters, as well as any regulatory delay in adjusting] rates as a result of reduced sales from effective conservation measures or the adoption of new technologies, could adversely impact our results of operations and financial condition.

We are actively involved with [removed: several] [added: multiple] significant capital projects, which are subject to a number of risks and uncertainties that could adversely affect project costs and completion of construction projects.

We also expect to continue constructing and investing in renewable energy generating facilities as part of the ESG Progress Plan, including repowering existing wind generation projects in our generation portfolio, and as part of our [removed: non-utility energy infrastructure segment.][added: non-]

For example, the timing of [added: the completion of] Badger Hollow I was impacted by [added: supply chain disruptions, primarily related to] the COVID-19 pandemic.

Additional risks include, but are not limited to, the ability to adhere to established budgets and time frames; the availability of labor or materials at estimated costs; the ability of contractors to perform under their contracts; strikes; adverse weather conditions; potential legal challenges; changes in applicable laws or regulations; [added: rising interest rates;] the impact [removed: on global supply chains] of pandemic health events; other governmental actions; continued public and policymaker support for such projects; and events in the global economy.

We have been subject to attempted cyber attacks from time to time, [removed: but] [added: and will likely continue to be subject to such attempted attacks; however,] these [added: prior] attacks have not had a material impact on our system or business operations.

Our continued efforts to integrate, consolidate, and streamline our operations have also resulted in increased reliance on current and recently completed projects for technology [removed: systems, including but not limited to, a customer information and billing system,][added: systems.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 27] [added: 29] | | | *WEC Energy Group, Inc.* | | |

A significant theft, loss, or fraudulent use of personally identifiable information may lead to potentially large costs to notify and protect the impacted persons, and/or could cause us to become subject to significant [removed: litigation, costs, liability, fines, or penalties, any of which could materially and adversely impact our results of operations as well as our reputation with customers, shareholders, and regulators, among others.]

Any operational disruption or environmental repercussions caused by [removed: these] on-going [added: or future] threats to our assets and technology systems could result in a significant decrease in our revenues or significant reconstruction or remediation costs, which could materially and adversely affect our results of operations, financial condition, and cash flows.

Advances in technology, and legislation or regulations supporting such technology, could make our electric generating facilities less [removed: competitive.][added: competitive and may impact the demand for natural gas.]

The QIP rider provides PGL with recovery of, and a return on, qualifying natural gas infrastructure investments that are placed in service between regulatory rate reviews.

Infrastructure investments under the QIP rider earn a return at the applicable weighted average cost of capital.

Without legislative action, the QIP rider will sunset after December 2023.

If the QIP rider is not extended or there is no other regulatory change, PGL will be subject to regulatory lag on its natural gas infrastructure investments that are placed in service between regulatory rate reviews, which could have a material adverse impact on PGL’s, and correspondingly our, results of operations, financial position, and liquidity.

This litigation has included claims for damages alleged to have been caused by GHG and other emissions and exposure to regulated substances and/or requests for injunctive relief in connection with such matters.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

In addition, there is increasing activism from other stakeholders, including institutional investors and other sources of financing, to accelerate the transition to lower GHG emissions.

In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by 2025 and by 80% by 2030, both from a 2005 baseline.

Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

We also believe we will be in a position to eliminate coal as an energy source by 2035.

The amount of tax credits we earn depends on the amount of electricity

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

In addition, any reductions or eliminations of these tax credits or other governmental incentives that promote renewable energy generating facilities may limit our ability to make further investments in renewable energy generating facilities or reduce the returns on our existing investments.

The COVID-19 pandemic has adversely impacted the economy and financial markets, which has adversely affected our businesses.

During 2021, commercial and industrial retail sales volumes began to improve due to the continued economic recovery in our service territories.

However, there are still questions regarding the extent and duration of the COVID-19 pandemic itself.

The resulting effects of any future orders could have a variety of adverse impacts on us and our subsidiaries, including a decrease in revenues, increased bad debt expense; increases in past due accounts receivable balances, and access to the capital markets at unreasonable terms or rates.

The COVID-19 pandemic and any additional related government responses could impair our and our subsidiaries' ability to develop, construct, and operate facilities.

Risks include extended disruptions to supply chains and inflation, resulting in increased costs for labor, materials, and services, which could adversely impact our ability to implement our corporate strategy.

We could also be impacted by possible labor disruptions, employee attrition, and a reduced ability to replace departing employees as a result of employees who leave or forego employment to avoid surcharges imposed on our medical plan or other required precautionary measures.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

Any of these matters, as well as any regulatory delay in adjusting

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

Our operations are subject to the effects of global climate change.

A changing climate creates uncertainty and could result in broad changes, both physical and financial in nature, to our service territories.

If climate changes occur that result in extreme temperatures in our service territories, our financial results could be adversely impacted by lower electric and natural gas usage and higher natural gas costs.

An extreme weather event could result in downed wires and poles or damage to other operating equipment, which could result in us foregoing sales of electricity and lost revenues.

Due to the cold temperatures, wind, snow, and ice throughout the central part of the country during February 2021, the cost of gas purchased for our natural gas utility customers and for the use of fuel at our generation facilities was temporarily driven significantly higher than our normal winter weather expectations.

Although our utilities have regulatory mechanisms in place for recovering all prudently incurred gas costs, regulatory commissions could disallow recovery or order the refund of any costs determined to be imprudent.

In addition, our operations could be adversely affected and our facilities placed at greater risk of damage should changes in global climate produce, among other possible conditions, unusual variations in temperature and weather patterns, which could result in more intense, frequent and extreme weather events, such as wind storms, floods, tornadoes, snow and ice storms, or abnormal levels of precipitation.

Extreme weather may result in unexpected increases in customer load, requiring us to procure additional power at wholesale prices for our retail operations, unpredictable curtailment of customer load by MISO to maintain grid reliability, or other grid reliability issues.

Any of these events could lead to substantial financial losses including increased maintenance costs, unanticipated capital expenditures, or a reduction of revenues related to our non-utility renewable energy facilities.

The cost of storm restoration efforts may also not be fully recoverable through the regulatory process.

Our corporate strategy may be impacted by policy and legal, technology, market, and reputational risks and opportunities that are associated with the transition to lower GHG emissions.

In addition, changes in policy to combat climate change, including mitigation and adaptation efforts, and technology advancement, each of which can also accelerate the implications of a transition to lower emissions, may materially adversely impact our results of operations and cash flows through significant capital expenditures and investments in renewable generation.

Our operations and corporate strategy may be adversely affected by supply chain disruptions and inflation.

Our business is dependent on the global supply chain to ensure that equipment, materials, and other resources are available to both expand and maintain services in a safe and reliable manner.

Current domestic and global supply chain disruptions are delaying the delivery, and in some cases resulting in shortages of, materials, equipment, and other resources that are critical to our business operations.

Failure to eliminate or manage the constraints in the supply chain may eventually impact the availability of items that are necessary to support normal operations as well as materials that are required to implement our corporate strategy for continued infrastructure growth, including our renewable energy projects.

Moreover, prices of equipment, materials, and other resources have increased recently as a result of these supply chain disruptions and may continue to increase in the future, as a result of inflation.

regulations including the ACE rule, and other air quality regulations.

For example, the D.C. Court of Appeals vacated the ACE rule in January 2021.

In particular, it is uncertain how the change in the United States presidential administration will impact the final resolution of several environmental standards or the adoption of new environmental laws and regulations.

Management expects this attention to continue, particularly with the change in the United States presidential administration.

The global outbreak of COVID-19 was declared a pandemic by the WHO and the CDC and has spread globally, including throughout the United States.

There is still considerable uncertainty regarding the extent and duration of the COVID-19 pandemic itself, as well as the measures currently in place to try to contain the virus, such as travel bans and restrictions, quarantines, limitations on business operations, and the timing of widespread availability of the vaccines.

Although the shelter-in-place orders that were in effect for our service territories have expired, other orders limiting the capacity of various businesses have been adopted in some jurisdictions.

Although no longer mandated by all of our regulators, our utility subsidiaries are continuing to temporarily suspend disconnections.

The effects of the COVID-19 pandemic and related government responses have significantly disrupted economic activity in our service territories.

Such effects have included, and may continue to include, extended disruptions to supply chains and capital markets, reduced labor availability and productivity, and a prolonged reduction in economic activity.

These effects could continue to have a variety of adverse impacts on us and our subsidiaries, including continued reductions in demand for energy, particularly from commercial and industrial customers; impairment of goodwill or long-lived assets; continued decreases in revenue due to the inability to collect late fees; increased bad debt expense; increases in past due accounts receivable balances, impairment of our and our subsidiaries' ability to develop, construct, and operate facilities; and impaired ability to successfully access funds from credit and capital markets.

The COVID-19 pandemic has also caused significant disruption and volatility in the United States capital markets, and any additional or lingering effects on the capital markets may significantly impact us and our subsidiaries.

For example, the costs related to our pension and other post-retirement benefit plans are based in part on the value of the plans’ assets.

Adverse investment performance for these assets or the failure to maintain sustained growth in pension investments over time could increase our plan costs and funding requirements.

Similarly, we rely on access to the capital markets to fund some of our operations and capital requirements.

To the extent that access to the capital markets is adversely affected by COVID-19, we may need to consider alternative sources of funding for our operations and for working capital, which may increase our cost of, as well as adversely impact our access to, capital.

Additional protocols have been implemented for our field employees who travel to customer premises in order to protect them, our customers, and the public.

As a reaction to the COVID-19 pandemic, it is possible that federal and state fiscal spending to fund COVID-19 relief measures, coupled with a drop in tax revenue from pandemic-related reductions in economic activity, may add to the pressure to raise more tax revenue from federal and state corporate income, other taxes including payroll or property taxes, to enact new types of taxes on businesses and their customers, or to disallow certain deductions.

consumers use energy.

automated meter reading systems, and other similar technological tools and initiatives.

It is possible that legislation or regulations could be adopted supporting the use of these technologies.

the proposed area, which measure the wind’s speed and prevailing direction and seasonal variations.

- Changes in investment criteria of institutional investors;

While we expect that reasonable alternatives to LIBOR will be implemented prior to the 2023 target date, we cannot predict the consequences and timing of the development of alternative reference rates.

We may fail to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act.

We are subject to reporting, disclosure control, and other obligations under SOX.

SOX contains provisions requiring our management to report on the effectiveness of our internal control over financial reporting and requires our independent registered public accounting firm to attest to the effectiveness of our internal controls.

We have undertaken, and will continue to undertake, a variety of initiatives to integrate, standardize, centralize, and streamline our operations with technology, including, but not limited to, the implementation of several different ERP systems.

There is a risk that we will not be able to conclude that our internal control over financial reporting is effective because of the discovery of material weaknesses, with either our current controls and processes or with the implementation of new controls and processes around these new technologies.

Any failure to maintain effective internal controls or a determination by our independent registered public accounting firm that we have a material weakness in our internal controls could cause investors to lose confidence in the accuracy or completeness of our financial reports, cause a decline in the market price of our common stock, restrict our access to the capital markets, or subject us to investigations by the SEC or other regulatory authorities.

We are a diversified holding company with natural gas and electric utility operations (serving customers in Wisconsin, Illinois, Michigan, and Minnesota), an approximately 60% equity ownership interest in American Transmission Company LLC (ATC) (a for-profit electric transmission company regulated by the [removed: FERC] [added: Federal Energy Regulatory Commission] and certain state regulatory commissions), and non-utility energy infrastructure operations through [removed: We] [added: W.E.] Power [added: LLC] (which owns generation assets in Wisconsin), Bluewater [added: Natural Gas Holding LLC] (which owns underground natural gas storage facilities in Michigan), and WEC Infrastructure LLC (WECI), which holds ownership interests in several wind generating facilities.

Our [removed: 2021-2025] capital investment plan for efficiency, sustainability and growth, referred to as our ESG Progress Plan, provides a roadmap for us to achieve this goal.

Throughout our strategic planning process, we take into account important developments, risks and opportunities, including new technologies, customer preferences and [removed: commodity prices,] [added: affordability,] energy resiliency efforts, and sustainability.

Our ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with [removed: the construction of] zero-carbon-emitting [removed: renewable generation] [added: renewables] and clean natural gas-fired generation.

In addition to retiring these older, fossil-fueled plants, we expect to invest approximately [removed: $2] [added: $3.5] billion from [removed: 2021-2025] [added: 2022-2026] in [removed: low-cost] [added: regulated] renewable energy in Wisconsin.

Our plan is to replace a portion of the retired capacity by building and owning [removed: a combination of clean, natural gas-fired generation and] zero-carbon-emitting renewable generation facilities that are anticipated to include the following new investments:

- [removed: 800] [added: 1,400] MW of utility-scale solar;

- [removed: 600] [added: 800] MW of battery storage; [added: and]

- 100 MW of reciprocating internal combustion engine (RICE) natural gas-fueled generation; [removed: and]

- the planned purchase of [added: up to] 200 MW of capacity in the West Riverside Energy Center – a new, combined-cycle natural gas plant [removed: recently] completed by Alliant Energy in [removed: Wisconsin.][added: Wisconsin; and]

[removed: These] [added: The] new investments discussed above are in addition to the renewable projects currently underway.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 41] [added: 44] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

[added: -] We have received approval to invest in [removed: 300] [added: 100] MW of utility-scale solar within our Wisconsin segment.

Wisconsin Public Service Corporation (WPS) has partnered with an unaffiliated utility to construct two solar projects [added: now] in [added: service in] Wisconsin: Two Creeks Solar [removed: Park, now in service,] [added: Park (Two Creeks)] and Badger Hollow Solar Park [removed: I, targeted for completion in the second quarter of 2021.][added: I (Badger Hollow I).]

WPS owns 100 MW of Two Creeks and [removed: will own] 100 MW of Badger Hollow I for a total of 200 MW.

Wisconsin Electric Power Company (WE) has partnered with an unaffiliated utility to construct Badger Hollow Solar Park [removed: II that] [added: II, which] is expected to enter commercial operation in [removed: December 2022.][added: the first quarter of 2023.]

In December 2018, WE received approval from the [removed: Public Service Commission of Wisconsin (PSCW)] [added: PSCW] for two renewable energy pilot programs.

The Solar Now pilot is expected to add [added: a total of] 35 MW of solar generation to WE's portfolio, allowing non-profit and governmental entities, as well as commercial and industrial [removed: customers] [added: customers,] to site utility owned solar arrays on their property.

Under this program, WE has energized [removed: 13] [added: 21] Solar Now projects and currently has another [removed: five] [added: three] under construction, together totaling more than [removed: 15] [added: 27] MW.

We have made significant reliability-related investments in recent years, and in accordance with our ESG Progress Plan, expect to continue strengthening and modernizing our generation [removed: fleet] [added: fleet, as well as our electric] and [added: natural gas] distribution networks to further improve reliability.

Below are [removed: a few] examples of [removed: reliability] projects that are proposed or currently underway.

- WE [removed: is constructing] [added: constructed] approximately 46 miles of natural gas transmission main to increase the quantity and reliability of natural gas service in southeastern Wisconsin.

This project, called the Lakeshore Lateral Project, [removed: is expected to be] [added: was] completed [removed: by the end of] [added: in October] 2021.

- WE and Wisconsin Gas LLC (WG) [removed: each plan] [added: have received approval] to [added: each] construct their own liquefied natural gas (LNG) facility to meet anticipated peak demand.

[removed: Subject to PSCW approval, commercial] [added: Commercial] operation of the [added: WE and WG] LNG facilities is targeted for the end of [removed: 2023.][added: 2023 and 2024, respectively.]

- The Peoples Gas Light and Coke Company continues to work on its [removed: Natural Gas System] [added: Safety] Modernization Program, which primarily involves replacing old iron pipes and facilities in Chicago’s natural gas delivery system with modern polyethylene pipes to reinforce the long-term safety and reliability of the system.

- WPS [removed: continues] [added: completed its] work [added: in late 2021] on its System Modernization and Reliability Project, which [removed: involves] [added: involved] modernizing parts of its electric distribution system, including burying or upgrading lines.

For more details, see Liquidity and Capital Resources – [removed: Capital Resources and Requirements – Capital] [added: Cash] Requirements – Significant Capital Projects.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 42] [added: 45] | | | *WEC Energy Group, Inc.* | | |

In our non-utility energy infrastructure segment, we have acquired or agreed to acquire majority interests in [removed: six] [added: eight] wind parks, [removed: capable] [added: with total available capacity] of [removed: providing] more than [removed: 1,000 MW of carbon-free energy in total.][added: 1,550 MW.]

These renewable energy assets represent more than [removed: $1.6] [added: $2.3] billion in committed investments and have long-term agreements to serve customers outside our traditional service areas.

We expect total capital expenditures for our regulated utility and non-utility energy infrastructure businesses to be approximately [removed: $15.0] [added: $16.4] billion from [removed: 2021] [added: 2022] to [removed: 2025.][added: 2026.]

In addition, we currently forecast that our share of ATC's projected capital expenditures over the next five years will be [removed: $1.1] [added: $1.3] billion.

Specific projects included in the [removed: $16.1] [added: $17.7] billion ESG Progress Plan are discussed in more detail below under Liquidity and Capital [removed: Resources.][added: Resources – Cash Requirements – Significant Capital Projects.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 43] [added: 46] | | | *WEC Energy Group, Inc.* | | |

The following table compares our consolidated [removed: results,] [added: results for the year ended December 31, 2021 with the year ended December 31, 2020,] including favorable or better, "B", and unfavorable or worse, "W", variances:

| | | | | | | Year Ended December 31 | | | | | | | | | [removed: | | | | | | | | | 2020 vs. 2019 | | | | | | 2019 vs. 2018 | | |]

| (in millions, except per share data) | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] | | | | | | B (W) | | | | | | [removed: B (W)] | | |

| Non-utility energy infrastructure | | | | | | [removed: 260.8] [added: 279.2] | | | | | | [removed: 246.0] [added: 260.8] | | | | | | [removed: 228.4] | | | | | | [removed: 14.8] [added: 18.4] | | | | | | [removed: 17.6] | | |

In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by 2025 and by 80% by 2030, both from a 2005 baseline.

We expect to achieve these goals by making operating refinements, retiring less efficient generating units, and executing our capital plan.

Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

As part of our path toward these goals, we are exploring co-firing with natural gas at our ERGS coal-fired units.

By the end of 2030, we expect our use of coal will account for less than 5% of the power we supply to our customers, and we believe we will be in a position to eliminate coal as an energy source by 2035.

Through our ESG Progress Plan, we expect to retire approximately 1,600 MW of additional fossil-fueled generation by 2025, which includes the planned retirements in 2023-2024 of Oak Creek Power Plant Units 5-8 and the jointly-owned Columbia Units 1-2.

- 100 MW of wind.

We also plan on investing in a combination of clean, natural gas-fired generation, including:

- the planned purchase of the Whitewater Cogeneration Facility, a natural gas-fired combined cycle electric generating facility with a capacity of 236.5 MW.

In August 2021, the PSCW approved pilot programs for WE and WPS to install and maintain electric vehicle (EV) charging equipment for customers at their homes or businesses.

The programs provide direct benefits to customers by removing cost barriers associated with installing EV equipment.

In October 2021, subject to the receipt of any necessary regulatory approvals, we pledged to expand the EV charging network within the service territories of our electric utilities.

In doing so, we joined a coalition of utility companies in a unified effort to make EV charging convenient and widely available throughout the Midwest.

The coalition we joined is planning to help build and grow EV charging corridors, enabling the general public to safely and efficiently charge their vehicles.

We also continue to reduce methane emissions by improving our natural gas distribution system.

We set a target across our natural gas distribution operations to achieve net-zero methane emissions by the end of 2030.

We plan to achieve our net-zero goal through an effort that includes both continuous operational improvements and equipment upgrades, as well as the use of renewable natural gas (RNG) throughout our utility systems.

We recently signed our first contract for RNG for our natural gas distribution business, which will be transporting the output of a local dairy farm onto our gas distribution system.

The RNG supplied will directly replace higher-emission methane from natural gas that would have entered our pipes.

This one contract represents 25 percent of our 2030 goal for methane reduction.

We expect to have RNG flowing to our distribution network by the end of 2022.

As part of our effort to look for new opportunities in sustainable energy, we are testing the effects of blending hydrogen, a clean generating fuel, with natural gas for one of our RICE generating units in the Upper Peninsula of Michigan.

We are partnering with the Electric Power Research Institute in this research that could help create another viable option for decarbonizing the economy.

The project will be carried out in 2022, and the results will be shared across the industry.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

For more details, see Liquidity and Capital Resources – Cash Requirements – Significant Capital Projects.

See Note 2, Acquisitions, for information on our acquisition of Whitewater.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

Safety is one of our core values and a critical component of our culture.

We are committed to keeping our employees and the public safe through a comprehensive corporate safety program that focuses on employee engagement and elimination of at-risk behaviors.

Management and union leadership work together to reinforce the Target Zero culture.

We set annual goals for safety results as well as measurable leading indicators, in order to raise awareness of at-risk behaviors and situations and guide injury-prevention activities.

All employees are encouraged to report unsafe conditions or incidents that could have led to an injury.

Injuries and tasks with high levels of risk are assessed, and findings and best practices are shared across our companies.

The following discussion and analysis of our Results of Operations includes comparisons of our results for the year ended December 31, 2021 with the year ended December 31, 2020.

For a similar discussion that compares our results for the year ended December 31, 2020 with the year ended December 31, 2019, see Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations in Part II of our 2020 Annual Report on Form 10-K, which was filed with the SEC on February 25, 2021.

| Wisconsin | | | | | | $ | 706.5 | | | | | $ | 690.4 | | | | | | | | | | | $ | 16.1 | | | | | | | |

| Illinois | | | | | | 223.0 | | | | | | 203.5 | | | | | | | | | | | | 19.5 | | | | | | | | |

| Other states | | | | | | 35.8 | | | | | | 39.0 | | | | | | | | | | | | (3.2) | | | | | | | | |

In 2019, we met and surpassed our original goal to reduce CO2 emissions by 40% below 2005 levels.

In July 2020, we announced new goals to reduce CO2 emissions from our electric generation by 70% below 2005 levels by 2030 and to be net carbon neutral by 2050.

We added a near-term goal in November 2020 to reduce CO2 emissions by 55% below 2005 levels by 2025.

As part of our ESG Progress Plan, we expect to retire approximately 1,800 MW of additional fossil-fueled generation by 2025.

- 100 MW of wind;

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

We also have a goal to decrease the rate of methane emissions from the natural gas distribution lines in our networks by 30% per mile by the year 2030 from a 2011 baseline.

We were over halfway toward meeting that goal at the end of 2019.

Our investments, coupled with our commitment to operating efficiency and customer care, resulted in We Energies being recognized in 2020 by PA Consulting Group, an independent consulting firm, for superior reliability of its electric delivery network.

This was the 10th consecutive year that We Energies has been named the most reliable utility in the Midwest.

We also project that these investments will generate higher returns than our regulated business.

Across the organization, we monitor the integrity of our networks and conduct comprehensive incident response planning to enhance the safety of our operations.

We also set goals around injury-prevention activities that raise awareness and facilitate conversations about employee safety.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Wisconsin | | | | | | $ | 690.4 | | | | | $ | 649.9 | | | | | $ | 617.0 | | | | | $ | 40.5 | | | | | $ | 32.9 | |

| Illinois | | | | | | 203.5 | | | | | | 170.3 | | | | | | 147.1 | | | | | | 33.2 | | | | | | 23.2 | | |

| Other states | | | | | | 39.0 | | | | | | 43.2 | | | | | | 44.1 | | | | | | (4.2) | | | | | | (0.9) | | |

| Electric transmission | | | | | | 112.6 | | | | | | 87.4 | | | | | | 82.8 | | | | | | 25.2 | | | | | | 4.6 | | |

2020 Compared with 2019

- A $40.5 million increase in net income attributed to common shareholders at the Wisconsin segment.

The increase was driven by the impact of the Wisconsin rate orders approved by the PSCW, effective January 1, 2020, lower operation and maintenance expense, and a positive impact from collections of fuel and purchased power costs.

Lower electric and natural gas distribution expenses, a decrease in expense related to the earnings sharing mechanisms in place at our Wisconsin utilities, and lower benefit costs all contributed to the lower operation and maintenance expense.

The lower sales volumes were driven by impacts from the COVID-19 pandemic and warmer winter weather during 2020.

Lower natural gas distribution maintenance costs, lower customer service expenses, and lower benefit costs drove the decrease in operation and maintenance expense during 2020.

- A $25.2 million increase in net income attributed to common shareholders at our electric transmission segment, driven by higher equity earnings from transmission affiliates.

Continued capital investment by ATC also contributed to the higher equity earnings from transmission affiliates.

Partially offsetting these increases in earnings was a $43.6 million increase in the net loss attributed to common shareholders at the corporate and other segment, driven by make-whole premiums related to the early extinguishment of debt during 2020.

These negative impacts were partially offset by lower interest expense.

2019 Compared with 2018

Earnings increased $74.7 million during 2019, compared with 2018.

- A $32.9 million increase in net income attributed to common shareholders at the Wisconsin segment.

The increase was driven by lower operation and maintenance expense related to our power plants, which primarily resulted from lower maintenance and labor costs associated with our 2019 and 2018 plant retirements and increases to certain plant-related regulatory assets resulting from decisions included in the December 2019 Wisconsin rate orders.

The positive impact from lower operation and maintenance expense was partially offset by a decrease in electric margins related to lower retail sales volumes, primarily driven by cooler summer weather during 2019 compared with 2018, and higher depreciation and amortization expense, driven by assets being placed into service as we continue to execute on our capital plan.

- A $23.2 million increase in net income attributed to common shareholders at the Illinois segment, driven by PGL's continued capital investment in the SMP project under its QIP rider.

- A $17.6 million increase in net income attributed to common shareholders at the non-utility energy infrastructure segment, driven by an increase in wind PTCs recognized on the three wind parks acquired in 2018 and 2019.

- A $4.6 million increase in net income attributed to common shareholders at our electric transmission segment, driven by lower income tax expense.

The decrease in income tax expense was driven by a tax basis adjustment related to the remeasurement of deferred income taxes in 2018 and a change in the tax rates at the segment level resulting from the transfer of ownership in the ATC investment between our subsidiaries.

The decrease in income tax expense related to the change in tax rates was offset in the corporate and other segment and, as a result, had no effect on consolidated net income.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 77] [added: 78] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

At December 31, [removed: 2020,] [added: 2021,] we had six reportable segments, which are discussed below.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 3] [added: 4] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

For information about our operating revenues disaggregated by customer class for the years ended December 31, [added: 2021,] 2020, [removed: 2019,] and [removed: 2018,] [added: 2019,] see Note 4, Operating Revenues.

In [removed: 2020,] [added: 2021,] retail revenues accounted for [removed: 91.9%] [added: 91.8%] of total electric operating revenues, wholesale revenues accounted for [removed: 4.1%] [added: 3.5%] of total electric operating revenues, and resale revenues accounted for [removed: 3.1%] [added: 3.6%] of total electric operating revenues.

Our service territory experienced [removed: lower] [added: higher] weather-normalized retail electric sales in [removed: 2020,] [added: 2021,] as compared with [removed: 2019,] [added: 2020,] due to [added: a partial recovery from] the impact of the [added: first year of the] COVID-19 pandemic.

We currently forecast retail electric sales volumes, excluding the Tilden mine located in the Upper Peninsula of Michigan, to grow between [removed: 1.0%] [added: 0.5%] and [removed: 1.3%] [added: 1.0%] over the next five years, [removed: compared with 2020,] assuming normal weather.

Electric peak demand is expected to [removed: grow between 0.5% and 1.0%] [added: be flat] over the next five years.

| (in thousands) | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Small commercial and industrial | | | | | | 175.8 | | | | | | [removed: 174.6] [added: 175.8] | | | | | | [removed: 173.2] [added: 174.6] | | |

| Large commercial and industrial | | | | | | 0.8 | | | | | | [removed: 0.9] [added: 0.8] | | | | | | 0.9 | | |

| Wholesale and other | | | | | | [removed: 3.0] [added: 1.6] | | | | | | [removed: 2.7] [added: 3.0] | | | | | | 2.7 | | |

| Total electric customers – end of year | | | | | | [removed: 1,638.9] [added: 1,638.6] | | | | | | [removed: 1,627.9] [added: 1,635.3] | | | | | | [removed: 1,618.1] [added: 1,624.2] | | |

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 4] [added: 5] | | | *WEC Energy Group, Inc.* | | |

We provide electric utility service to a diversified base of customers in industries such as metals and other manufacturing, [added: metal mining,] paper, governmental, health services, [removed: real estate, and] food [removed: products.][added: products, and real estate.]

The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for [removed: 2021:][added: 2022:]

| | | | | | | Estimate [removed: (1)] [added: (1)] | | | | | | Actual | | | | | | | | | | | | | | |

| | | | | | | 2021 | | | | | | 2020 | | | | | | 2019 | | | [removed: | | | 2018 | | |]

| Coal [added: (2)] | | | | | | [removed: 33.2] [added: 33.3] | | % | | | | [removed: 31.1] [added: 35.5] | | % | | | | [removed: 36.3] [added: 31.1] | | % | | | | [removed: 44.7] [added: 36.3] | | % |

| Combined cycle | | | | | | [removed: 26.3] [added: 18.9] | | % | | | | [removed: 27.8] [added: 24.6] | | % | | | | [removed: 26.8] [added: 27.8] | | % | | | | [removed: 19.7] [added: 26.8] | | % |

| Steam turbine | | | | | | 0.7 | | % | | | | [removed: 1.0] [added: 0.8] | | % | | | | [removed: 0.8] [added: 1.0] | | % | | | | [removed: 0.6] [added: 0.8] | | % |

| Natural gas/oil peaking units | | | | | | [removed: 2.0] [added: 1.8] | | % | | | | [removed: 2.4] [added: 3.1] | | % | | | | [removed: 0.9] [added: 2.4] | | % | | | | [removed: 1.7] [added: 0.9] | | % |

| Renewables [removed: (2)] [added: (3)] | | | | | | [removed: 5.0] [added: 5.9] | | % | | | | [removed: 5.3] [added: 4.8] | | % | | | | [removed: 4.4] [added: 5.3] | | % | | | | [removed: 4.1] [added: 4.4] | | % |

| Total company-owned generation units | | | | | | [removed: 67.2] [added: 60.6] | | % | | | | [removed: 67.6] [added: 68.8] | | % | | | | [removed: 69.2] [added: 67.6] | | % | | | | [removed: 70.8] [added: 69.2] | | % |

| Nuclear | | | | | | [removed: 19.6] [added: 21.1] | | % | | | | [removed: 19.5] [added: 19.0] | | % | | | | [removed: 19.8] [added: 19.5] | | % | | | | [removed: 18.6] [added: 19.8] | | % |

| Natural gas | | | | | | [removed: 2.4] [added: 1.3] | | % | | | | 1.9 | | % | | | | [removed: 1.8] [added: 1.9] | | % | | | | [removed: 1.5] [added: 1.8] | | % |

| Renewables [removed: (2)] [added: (3)] | | | | | | 2.4 | | % | | | | 1.9 | | % | | | | [removed: 2.0] [added: 1.9] | | % | | | | [removed: 2.4] [added: 2.0] | | % |

| Other | | | | | | [removed: 1.8] [added: —] | | % | | | | [removed: 1.7] [added: 0.1] | | % | | | | [removed: 1.8] [added: 1.7] | | % | | | | [removed: 1.7] [added: 1.8] | | % |

| Total power purchase contracts | | | | | | [removed: 26.2] [added: 24.8] | | % | | | | [removed: 25.0] [added: 22.9] | | % | | | | [removed: 25.4] [added: 25.0] | | % | | | | [removed: 24.2] [added: 25.4] | | % |

| Purchased power from MISO | | | | | | [removed: 6.6] [added: 14.6] | | % | | | | [removed: 7.4] [added: 8.3] | | % | | | | [removed: 5.4] [added: 7.4] | | % | | | | [removed: 5.0] [added: 5.4] | | % |

| Total purchased power | | | | | | [removed: 32.8] [added: 39.4] | | % | | | | [removed: 32.4] [added: 31.2] | | % | | | | [removed: 30.8] [added: 32.4] | | % | | | | [removed: 29.2] [added: 30.8] | | % |

(1) The values included in the estimate assume a natural gas price based on the December [removed: 2020] [added: 2021] NYMEX.

[removed: (2)] [added: (3)] Includes hydroelectric, biomass, solar, and wind generation.

We own [removed: 7,666] [added: 7,751] MW of generation capacity, including [added: wholly] owned and jointly owned facilities.

Certain of our natural [removed: gas fired] [added: gas-fired] generation units have the ability to burn oil if natural gas is not available due to delivery constraints.

[removed: On] [added: In] November [removed: 2, 2020,] [added: 2021,] we added to our [removed: electric] [added: electrical] generation portfolio when [removed: WPS's] [added: Badger Hollow I, a] new [removed: utility-scale] [added: utility scale] solar [removed: plant, Two Creeks,] [added: facility] with [added: a] 150 MW nameplate capacity in [removed: Manitowoc] [added: Iowa] County, [removed: Wisconsin] [added: Wisconsin,] achieved commercial operation.

WPS owns 100 MW of [removed: Two Creeks.][added: Badger Hollow I.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 5] [added: 6] | | | *WEC Energy Group, Inc.* | | |

[removed: The] [added: Our] ESG Progress Plan includes the retirement of older, fossil-fueled generation, to be replaced with [removed: the construction of] zero-carbon-emitting [removed: renewable generation] [added: renewables] and [added: clean] natural gas-fired generation.

Our electric utilities meet a portion of their electric generation supply with various renewable energy resources, including wind, [added: solar,] hydroelectric, [removed: biomass,] and [removed: solar.][added: biomass.]

Investors should note that WEC Energy Group announces material financial information in SEC filings, press releases, and public conference calls.

In accordance with SEC guidelines, WEC Energy Group also uses the "Investors" tab on its website, www.wecenergygroup.com to communicate with investors.

It is possible that the financial and other information posted there could be deemed material information.

The information on WEC Energy Group's website is not part of this document.

In 2021, WE's consolidated revenues also include securitization revenues collected from customers as servicer of environmental control property owned by

its subsidiary WEPCo Environmental Trust.

For more information on WEPCo Environmental Trust, see Note 23, Variable Interest Entities.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Residential | | | | | | 1,460.4 | | | | | | 1,455.7 | | | | | | 1,446.0 | | |

(2) In 2021, we used more coal generation for electric supply, compared with 2020.

Even though coal costs also increased in 2021, it was still more cost effective than natural gas due to increased natural gas prices in 2021.

We still anticipate using less coal in the future as we plan to achieve

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

our emission reduction goals through the addition of renewable generation and eventual closure of existing coal generating facilities if approved by regulators.

In May 2021, we announced goals to achieve reductions in carbon emissions from our electric generation fleet by 60% by 2025 and by 80% by 2030, both from a 2005 baseline.

We expect to achieve these goals by making operating refinements, retiring less efficient generating units, and executing our capital plan.

Over the longer term, the target for our generation fleet is net-zero CO2 emissions by 2050.

As part of our path toward these goals, we are exploring co-firing with natural gas at our ERGS coal-fired units.

By the end of 2030, we expect our use of coal will account for less than 5% of the power we supply to our customers, and we believe we will be in a position to eliminate coal as an energy source by 2035.

Through our ESG Progress Plan, we expect to retire approximately 1,600 MW of additional fossil-fueled generation by 2025, which includes the planned retirements in 2023-2024 of OCPP Units 5-8 and the jointly-owned Columbia Units 1-2.

In August 2021, the PSCW approved pilot programs for WE and WPS to install and maintain EV charging equipment for customers at their homes or businesses.

The programs provide direct benefits to customers by removing cost barriers associated with installing EV equipment.

In October 2021, subject to the receipt of any necessary regulatory approvals, we pledged to expand the EV charging network within the service territories of our electric utilities.

In doing so, we joined a coalition of utility companies in a unified effort to make EV charging convenient and widely available throughout the Midwest.

The coalition we joined is planning to help build and grow EV charging corridors, enabling the general public to safely and efficiently charge their vehicles.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

In January 2022, WPS, along with an unaffiliated utility, received approval from the PSCW to acquire the Red Barn

Wind Park, a utility-scale wind-powered electric generating facility.

The project will be located in Grant County, Wisconsin and

once constructed, WPS will own 82 MW of this project.

Construction of the project is expected to be completed by the end of 2022.

In September 2021, WE and WPS received approval to accelerate capital investments to repower major components of Blue Sky and Crane Creek wind parks, which are expected to be completed by the end of 2022.

Solar and Battery Storage

As part of our commitment to invest in zero-carbon generation, we have filed applications with the PSCW for approval to invest in 675 MW of utility-scale solar and 316 MW of battery storage within our Wisconsin segment, including the following:

- In April 2021, WE and WPS, along with an unaffiliated utility, filed an application with the PSCW for approval to acquire the Koshkonong Solar-Battery Park, a utility-scale solar-powered electric generating facility with a battery energy storage system.

The project will be located in Dane County, Wisconsin and once constructed, WE and WPS will collectively own 270 MW of solar generation and 149 MW of battery storage of this project.

If approved, construction of the project is expected to be completed by the second quarter of 2024.

- In March 2021, WE and WPS, along with an unaffiliated utility, filed an application with the PSCW for approval to acquire and construct the Darien Solar-Battery Park, a utility-scale solar-powered electric generating facility with a battery energy storage system.

The project will be located in Rock and Walworth counties, Wisconsin and once constructed, WE and WPS will collectively own 225 MW of solar generation and 68 MW of battery storage of this project.

If approved, construction of the project is expected to be completed by the end of 2023.

| | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | |

| Residential | | | | | | 1,459.3 | | | | | | 1,449.7 | | | | | | 1,441.3 | | |

On March 31, 2019, we added to our electric generation portfolio when UMERC's new natural gas-fired generation with a 183 MW rated capacity in the Upper Peninsula of Michigan achieved commercial operation.

In 2019, we met and surpassed our original goal to reduce CO2 emissions by 40% below 2005 levels.

In July 2020, we announced new goals to reduce CO2 emissions from our electric generation by 70% below 2005 levels by 2030 and to be net carbon neutral by 2050.

We added a near-term goal in November 2020 to reduce CO2 emissions by 55% below 2005 levels by 2025.

As part of the ESG Progress Plan, we expect to retire approximately 1,800 MW of additional fossil-fueled generation by 2025.

The project will contribute toward meeting WE's peak demand, adding up to 150 MW of renewables to WE's portfolio, and help these larger customers to meet their sustainability and renewable energy goals.

In February 2021, WE and WPS filed an application with the PSCW for approval to accelerate up to approximately $154 million in capital investments in BSGF and CCWP, to repower major components.

In response to the COVID-19 pandemic, the IRS issued guidance extending the period for work to be completed on facilities in order to be eligible for PTCs if certain requirements are met.

If approved, WE and WPS each expect to receive an additional 10 years of PTCs, and BSGF and CCWP would be allowed to continue providing a reliable, cost-effective, zero-fuel-cost, zero-emission capacity and energy resource for customers

Solar

The joint applicants propose that WE would acquire a 75% ownership interest, WPS would acquire a 15% ownership interest, and the unaffiliated utility would acquire the remaining 10% ownership interest.

- In April 2019, WPS partnered with an unaffiliated utility to construct two solar projects in Wisconsin: Two Creeks, in service as of November 2020, and Badger Hollow I, construction in progress and targeted for completion in the second quarter of 2021.

Badger Hollow I is located in Iowa County, Wisconsin, and Two Creeks is located in Manitowoc County, Wisconsin.

WPS owns 100 MW of Two Creeks and will own 100 MW of Badger Hollow I for a total of 200 MW.

This program allows them to

We have not entered into any coal contracts for years after 2022.

| 2021 | | | | | | 7,380 | | |

| 2022 | | | | | | 2,100 | | |

| Residential | | | | | | 1,349.9 | | | | | | 1,339.6 | | | | | | 1,329.6 | | |

| Total customers | | | | | | 1,485.6 | | | | | | 1,474.3 | | | | | | 1,463.2 | | |

The interstate pipelines serving Wisconsin originate in major natural gas producing areas of North America: the Oklahoma and Texas basins, western Canada, and the Rocky Mountains.

(1) Tatanka Ridge achieved commercial operation on January 5, 2021.

WECI is entitled to the tax benefits of each facility in proportion to its ownership interest, with the exception of Coyote Ridge and Tatanka Ridge.

Wispark had $28.8 million in real estate holdings at December 31, 2020.

qualifying businesses.

We Power received

| WE | | | | | | 2,460 | | | | | | 1,923 | | | | | |

| WPS | | | | | | 1,127 | | | | | | 814 | | | (1) | | |

| WG | | | | | | 378 | | | | | | 259 | | | | | |

| PGL | | | | | | 1,492 | | | | | | 1,046 | | | | | |

| MERC | | | | | | 207 | | | | | | 43 | | | | | |

| MGU | | | | | | 141 | | | | | | 92 | | | | | |

| WBS | | | | | | 1,308 | | | | | | — | | | | | |

| Total employees | | | | | | 7,273 | | | | | | 4,288 | | | | | |

(1) WPS's contract with Local 420 of International Union of Operating Engineers expires in April 2021.

Negotiations are in progress, which we expect will conclude before the expiration of the current agreement.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 36] [added: 39] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

[added: Although the] results of these additional legal proceedings cannot be predicted with certainty, management believes, after consultation with legal counsel, that the ultimate resolution of these proceedings will not have a material [removed: effect] [added: impact] on our financial statements.

PGL quickly shut down and permanently plugged the well to [removed: contain the leak after it was discovered.]

PGL entered into an Agreed Interim Order with the State of Illinois in October 2017 and a First Amended Agreed Interim Order in September 2019 whereby PGL agreed, among other things, to continue actions it was already undertaking proactively, including the submittal of a GMZ application to the [removed: IEPA in August 2019.][added: IEPA.]

contain the leak after it was discovered.

During late 2020 and throughout 2021, PGL has taken steps to implement the requirements of the approved GMZ project.

Although the

Proposed modifications to the GMZ application were submitted to the Illinois AG and the IEPA in May 2020.

For the fiscal year ended December 31, [removed: 2020][added: 2021]

| | | | | | | [removed: ] [added: ] | | | | | | | | |

The aggregate market value of the common stock of WEC Energy Group, Inc. held by non-affiliates was [removed: $27.6] [added: $28.1] billion based upon the reported closing price of such securities as of June 30, [removed: 2020.][added: 2021.]

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date (January 31, [removed: 2021):][added: 2022):]

Portions of WEC Energy Group, Inc.'s Definitive Proxy Statement on Schedule 14A for its Annual Meeting of Shareholders, to be held on May [removed: 6, 2021,] [added: 5, 2022,] are incorporated by reference into Part III hereof.

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

For the Year Ended December 31, [removed: 2020][added: 2021]

| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING [removed: INFORMATION](#if274cc687da84908b38c74df114fb05e_16)] [added: INFORMATION](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_16)] | | | | | | | | | | | | | | | [removed: [1](#if274cc687da84908b38c74df114fb05e_16)] [added: [1](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_16)] | | |

| [ITEM [removed: 1.](#if274cc687da84908b38c74df114fb05e_22)] [added: 1.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_22)] | | | [removed: [BUSINESS](#if274cc687da84908b38c74df114fb05e_22)] [added: [BUSINESS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_22)] | | | | | | | | | | | | [removed: [3](#if274cc687da84908b38c74df114fb05e_22)] [added: [4](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_22)] | | |

| | | | [removed: [B.](#if274cc687da84908b38c74df114fb05e_34)] [added: [B.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_34)] | | | [UTILITY ENERGY [removed: OPERATIONS](#if274cc687da84908b38c74df114fb05e_34)] [added: OPERATIONS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_34)] | | | | | | | | | [removed: [3](#if274cc687da84908b38c74df114fb05e_34)] [added: [4](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_34)] | | |

| | | | [removed: [C.](#if274cc687da84908b38c74df114fb05e_55)] [added: [C.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_55)] | | | [ELECTRIC TRANSMISSION [removed: SEGMENT](#if274cc687da84908b38c74df114fb05e_55)] [added: SEGMENT](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_55)] | | | | | | | | | [removed: [14](#if274cc687da84908b38c74df114fb05e_55)] [added: [16](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_55)] | | |

| | | | [removed: [D.](#if274cc687da84908b38c74df114fb05e_58)] [added: [D.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_58)] | | | [NON-UTILITY [removed: OPERATIONS](#if274cc687da84908b38c74df114fb05e_58)] [added: OPERATIONS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_58)] | | | | | | | | | [removed: [14](#if274cc687da84908b38c74df114fb05e_58)] [added: [16](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_58)] | | |

| | | | [removed: [F.](#if274cc687da84908b38c74df114fb05e_70)] [added: [F.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_70)] | | | [ENVIRONMENTAL [removed: COMPLIANCE](#if274cc687da84908b38c74df114fb05e_70)] [added: COMPLIANCE](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_70)] | | | | | | | | | [removed: [19](#if274cc687da84908b38c74df114fb05e_70)] [added: [21](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_70)] | | |

| | | | [removed: [G.](#if274cc687da84908b38c74df114fb05e_73)] [added: [G.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_73)] | | | [HUMAN [removed: CAPITAL](#if274cc687da84908b38c74df114fb05e_73)] [added: CAPITAL](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_73)] | | | | | | | | | [removed: [19](#if274cc687da84908b38c74df114fb05e_73)] [added: [22](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_73)] | | |

| [ITEM [removed: 1A.](#if274cc687da84908b38c74df114fb05e_76)] [added: 1A.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_76)] | | | [RISK [removed: FACTORS](#if274cc687da84908b38c74df114fb05e_76)] [added: FACTORS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_76)] | | | | | | | | | | | | [removed: [22](#if274cc687da84908b38c74df114fb05e_76)] [added: [24](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_76)] | | |

| [ITEM [removed: 1B.](#if274cc687da84908b38c74df114fb05e_79)] [added: 1B.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_79)] | | | [UNRESOLVED STAFF [removed: COMMENTS](#if274cc687da84908b38c74df114fb05e_79)] [added: COMMENTS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_79)] | | | | | | | | | | | | [removed: [33](#if274cc687da84908b38c74df114fb05e_79)] [added: [36](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_79)] | | |

| [ITEM [removed: 2.](#if274cc687da84908b38c74df114fb05e_82)] [added: 2.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_82)] | | | [removed: [PROPERTIES](#if274cc687da84908b38c74df114fb05e_82)] [added: [PROPERTIES](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_82)] | | | | | | | | | | | | [removed: [34](#if274cc687da84908b38c74df114fb05e_82)] [added: [37](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_82)] | | |

| [ITEM [removed: 3.](#if274cc687da84908b38c74df114fb05e_85)] [added: 3.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_85)] | | | [LEGAL [removed: PROCEEDINGS](#if274cc687da84908b38c74df114fb05e_85)] [added: PROCEEDINGS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_85)] | | | | | | | | | | | | [removed: [36](#if274cc687da84908b38c74df114fb05e_85)] [added: [39](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_85)] | | |

| [ITEM [removed: 4.](#if274cc687da84908b38c74df114fb05e_88)] [added: 4.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_88)] | | | [MINE SAFETY [removed: DISCLOSURES](#if274cc687da84908b38c74df114fb05e_88)] [added: DISCLOSURES](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_88)] | | | | | | | | | | | | [removed: [37](#if274cc687da84908b38c74df114fb05e_88)] [added: [40](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_88)] | | |

| | | | [INFORMATION ABOUT OUR EXECUTIVE [removed: OFFICERS](#if274cc687da84908b38c74df114fb05e_91)] [added: OFFICERS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_91)] | | | | | | | | | | | | [removed: [38](#if274cc687da84908b38c74df114fb05e_91)] [added: [41](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_91)] | | |

| [ITEM [removed: 5.](#if274cc687da84908b38c74df114fb05e_97)] [added: 5.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_97)] | | | [MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#if274cc687da84908b38c74df114fb05e_97)] [added: SECURITIES](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_97)] | | | | | | | | | | | | [removed: [40](#if274cc687da84908b38c74df114fb05e_97)] [added: [43](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_97)] | | |

| [ITEM [removed: 7.](#if274cc687da84908b38c74df114fb05e_103)] [added: 7.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_103)] | | | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#if274cc687da84908b38c74df114fb05e_103)] [added: OPERATIONS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_103)] | | | | | | | | | | | | [removed: [41](#if274cc687da84908b38c74df114fb05e_103)] [added: [44](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_103)] | | |

| [ITEM [removed: 7A.](#if274cc687da84908b38c74df114fb05e_244)] [added: 7A.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_202)] | | | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET [removed: RISK](#if274cc687da84908b38c74df114fb05e_244)] [added: RISK](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_202)] | | | | | | | | | | | | [removed: [77](#if274cc687da84908b38c74df114fb05e_244)] [added: [78](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_202)] | | |

| [ITEM [removed: 8.](#if274cc687da84908b38c74df114fb05e_247)] [added: 8.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_205)] | | | [FINANCIAL STATEMENTS AND SUPPLEMENTARY [removed: DATA](#if274cc687da84908b38c74df114fb05e_247)] [added: DATA](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_205)] | | | | | | | | | | | | [removed: [78](#if274cc687da84908b38c74df114fb05e_247)] [added: [79](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_205)] | | |

| | | | [removed: [A.](#if274cc687da84908b38c74df114fb05e_250)] [added: [A.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_208)] | | | [Reports of Independent Registered Public Accounting [removed: Firm](#if274cc687da84908b38c74df114fb05e_250)] [added: Firm](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_208)] | | | | | | | | | [removed: [78](#if274cc687da84908b38c74df114fb05e_250)] [added: [79](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_208)] | | |

| | | | [removed: [B.](#if274cc687da84908b38c74df114fb05e_253)] [added: [B.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_211)] | | | [Consolidated Income [removed: Statements](#if274cc687da84908b38c74df114fb05e_253)] [added: Statements](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_211)] | | | | | | | | | [removed: [81](#if274cc687da84908b38c74df114fb05e_253)] [added: [82](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_211)] | | |

| | | | [removed: [C.](#if274cc687da84908b38c74df114fb05e_256)] [added: [C.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_214)] | | | [Consolidated Statements of Comprehensive [removed: Income](#if274cc687da84908b38c74df114fb05e_256)] [added: Income](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_214)] | | | | | | | | | [removed: [82](#if274cc687da84908b38c74df114fb05e_256)] [added: [83](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_214)] | | |

| | | | [removed: [D.](#if274cc687da84908b38c74df114fb05e_262)] [added: [D.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_217)] | | | [Consolidated Balance [removed: Sheets](#if274cc687da84908b38c74df114fb05e_262)] [added: Sheets](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_217)] | | | | | | | | | [removed: [83](#if274cc687da84908b38c74df114fb05e_262)] [added: [84](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_217)] | | |

| | | | [removed: [E.](#if274cc687da84908b38c74df114fb05e_268)] [added: [E.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_220)] | | | [Consolidated Statements of Cash [removed: Flows](#if274cc687da84908b38c74df114fb05e_268)] [added: Flows](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_220)] | | | | | | | | | [removed: [84](#if274cc687da84908b38c74df114fb05e_268)] [added: [85](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_220)] | | |

| | | | [removed: [F.](#if274cc687da84908b38c74df114fb05e_274)] [added: [F.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_223)] | | | [Consolidated Statements of [removed: Equity](#if274cc687da84908b38c74df114fb05e_274)] [added: Equity](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_223)] | | | | | | | | | [removed: [85](#if274cc687da84908b38c74df114fb05e_274)] [added: [86](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_223)] | | |

| | | | [removed: [G.](#if274cc687da84908b38c74df114fb05e_280)] [added: [G.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_229)] | | | [Notes to Consolidated Financial [removed: Statements](#if274cc687da84908b38c74df114fb05e_280)] [added: Statements](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_229)] | | | | | | | | | [removed: [86](#if274cc687da84908b38c74df114fb05e_280)] [added: [87](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_229)] | | |

| | | | | | | [Note [removed: 1](#if274cc687da84908b38c74df114fb05e_283)] [added: 1](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_232)] | | | [Summary of Significant Accounting [removed: Policies](#if274cc687da84908b38c74df114fb05e_283)] [added: Policies](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_232)] | | | [removed: [86](#if274cc687da84908b38c74df114fb05e_283)] [added: [87](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_232)] | | | | | |

| | | | | | | [Note [removed: 3](#if274cc687da84908b38c74df114fb05e_370)] [added: 3](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_313)] | | | [removed: [Dispositions](#if274cc687da84908b38c74df114fb05e_370)] [added: [Dispositions](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_313)] | | | [removed: [100](#if274cc687da84908b38c74df114fb05e_370)] [added: [100](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_313)] | | | | | |

| | | | | | | [Note [removed: 4](#if274cc687da84908b38c74df114fb05e_373)] [added: 4](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_316)] | | | [Operating [removed: Revenues](#if274cc687da84908b38c74df114fb05e_373)] [added: Revenues](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_316)] | | | [removed: [101](#if274cc687da84908b38c74df114fb05e_373)] [added: [101](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_316)] | | | | | |

| | | | | | | [Note [removed: 6](#if274cc687da84908b38c74df114fb05e_376)] [added: 6](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_322)] | | | [Regulatory Assets and [removed: Liabilities](#if274cc687da84908b38c74df114fb05e_376)] [added: Liabilities](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_322)] | | | [removed: [104](#if274cc687da84908b38c74df114fb05e_376)] [added: [105](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_322)] | | | | | |

| | | | | | | [Note [removed: 7](#if274cc687da84908b38c74df114fb05e_379)] [added: 7](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_325)] | | | [Property, Plant, and [removed: Equipment](#if274cc687da84908b38c74df114fb05e_379)] [added: Equipment](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_325)] | | | [removed: [107](#if274cc687da84908b38c74df114fb05e_379)] [added: [108](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_325)] | | | | | |

| | | | | | | [Note [removed: 8](#if274cc687da84908b38c74df114fb05e_382)] [added: 8](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_328)] | | | [Jointly Owned Utility [removed: Facilities](#if274cc687da84908b38c74df114fb05e_382)] [added: Facilities](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_328)] | | | [removed: [108](#if274cc687da84908b38c74df114fb05e_382)] [added: [109](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_328)] | | | | | |

| | | | | | | [Note [removed: 9](#if274cc687da84908b38c74df114fb05e_388)] [added: 9](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_331)] | | | [Asset Retirement [removed: Obligations](#if274cc687da84908b38c74df114fb05e_388)] [added: Obligations](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_331)] | | | [removed: [108](#if274cc687da84908b38c74df114fb05e_388)] [added: [110](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_331)] | | | | | |

| | | | | | | [Note [removed: 10](#if274cc687da84908b38c74df114fb05e_391)] [added: 10](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_334)] | | | [Goodwill and [removed: Intangibles](#if274cc687da84908b38c74df114fb05e_391)] [added: Intangibles](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_334)] | | | [removed: [109](#if274cc687da84908b38c74df114fb05e_391)] [added: [110](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_334)] | | | | | |

| | | | | | | [Note [removed: 13](#if274cc687da84908b38c74df114fb05e_406)] [added: 13](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_346)] | | | [Short-Term Debt and Lines of [removed: Credit](#if274cc687da84908b38c74df114fb05e_406)] [added: Credit](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_346)] | | | [removed: [114](#if274cc687da84908b38c74df114fb05e_406)] [added: [115](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_346)] | | | | | |

| [PART I](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_19) | | | | | | | | | | | | | | | [4](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_19) | | |

| | | | [A.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_25) | | | [INTRODUCTION](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_25) | | | | | | | | | [4](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_25) | | |

| | | | [E.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_67) | | | [REGULATION](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_67) | | | | | | | | | [18](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_67) | | |

| [PART II](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_94) | | | | | | | | | | | | | | | [43](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_94) | | |

| [ITEM 6.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_100) | | | [RESERVED](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_100) | | | | | | | | | | | | [43](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_100) | | |

| | | | | | | [Note 2](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_310) | | | [Acquisitions](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_310) | | | [98](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_310) | | | | | |

| | | | | | | [Note 5](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_319) | | | [Credit Losses](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_319) | | | [104](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_319) | | | | | |

| | | | | | | [Note 11](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_337) | | | [Common Equity](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_337) | | | [111](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_337) | | | | | |

| | | | | | | [Note 12](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_340) | | | [Preferred Stock](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_340) | | | [114](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_340) | | | | | |

| | | | | | | [Note 15](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_355) | | | [Leases](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_355) | | | [119](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_355) | | | | | |

| | | | | | | [Note 16](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_358) | | | [Income Taxes](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_358) | | | [123](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_358) | | | | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| | | | | | | [Note 18](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_364) | | | [Derivative Instruments](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_364) | | | [127](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_364) | | | | | |

| | | | | | | [Note 19](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_367) | | | [Guarantees](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_367) | | | [128](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_367) | | | | | |

| | | | | | | [Note 20](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_370) | | | [Employee Benefits](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_370) | | | [128](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_370) | | | | | |

| | | | | | | [Note 22](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_376) | | | [Segment Information](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_376) | | | [134](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_376) | | | | | |

| | | | | | | [Note 26](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_391) | | | [Regulatory Environment](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_391) | | | [144](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_391) | | | | | |

| | | | | | | | | | | | | | | | | | |

| [ITEM 9C.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_412) | | | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_412) | | | | | | | | | | | | [152](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_412) | | |

| [PART III](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_415) | | | | | | | | | | | | | | | [153](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_415) | | |

| [PART IV](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_433) | | | | | | | | | | | | | | | [155](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_433) | | |

| | | | [A.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_448) | | | [Income Statements](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_448) | | | | | | | | | [161](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_448) | | |

| | | | [B.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_451) | | | [Statements of Comprehensive Income](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_451) | | | | | | | | | [162](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_451) | | |

| | | | [C.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_454) | | | [Balance Sheets](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_454) | | | | | | | | | [163](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_454) | | |

| | | | [D.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_457) | | | [Statements of Cash Flows](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_457) | | | | | | | | | [164](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_457) | | |

| [SIGNATURES](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_466) | | | | | | | | | | | | | | | [169](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_466) | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Jayhawk | | | | | | Jayhawk Wind, LLC | | |

| WEPCo Environmental Trust | | | | | | WEPCo Environmental Trust Finance I, LLC | | |

| CBP | | | | | | United States Customs and Border Protection Agency | | |

| DOC | | | | | | United States Department of Commerce | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| VIE | | | | | | Variable Interest Entity | | |

| WOTUS | | | | | | Waters of the United States | | |

| 2013 Junior Notes | | | | | | Integrys Holding, Inc.'s 6.00% Junior Notes Due August 1, 2073 | | |

| ETB | | | | | | Environmental Trust Bond | | |

| EV | | | | | | Electric Vehicle | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Executive Order 13990 | | | | | | Executive Order 13990 of January 20, 2021 - Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis | | |

| Forward Wind | | | | | | Forward Wind Energy Center | | |

| [PART I](#if274cc687da84908b38c74df114fb05e_19) | | | | | | | | | | | | | | | [3](#if274cc687da84908b38c74df114fb05e_19) | | |

| | | | [A.](#if274cc687da84908b38c74df114fb05e_25) | | | [INTRODUCTION](#if274cc687da84908b38c74df114fb05e_25) | | | | | | | | | [3](#if274cc687da84908b38c74df114fb05e_25) | | |

| | | | [E.](#if274cc687da84908b38c74df114fb05e_67) | | | [REGULATION](#if274cc687da84908b38c74df114fb05e_67) | | | | | | | | | [15](#if274cc687da84908b38c74df114fb05e_67) | | |

| [PART II](#if274cc687da84908b38c74df114fb05e_94) | | | | | | | | | | | | | | | [40](#if274cc687da84908b38c74df114fb05e_94) | | |

| [ITEM 6.](#if274cc687da84908b38c74df114fb05e_100) | | | [SELECTED FINANCIAL DATA](#if274cc687da84908b38c74df114fb05e_100) | | | | | | | | | | | | [40](#if274cc687da84908b38c74df114fb05e_100) | | |

| | | | | | | [Note 2](#if274cc687da84908b38c74df114fb05e_364) | | | [Acquisitions](#if274cc687da84908b38c74df114fb05e_364) | | | [98](#if274cc687da84908b38c74df114fb05e_364) | | | | | |

| | | | | | | [Note 5](#if274cc687da84908b38c74df114fb05e_4583) | | | [Credit Losses](#if274cc687da84908b38c74df114fb05e_4583) | | | [103](#if274cc687da84908b38c74df114fb05e_4583) | | | | | |

| | | | | | | [Note 11](#if274cc687da84908b38c74df114fb05e_394) | | | [Common Equity](#if274cc687da84908b38c74df114fb05e_394) | | | [110](#if274cc687da84908b38c74df114fb05e_394) | | | | | |

| | | | | | | [Note 12](#if274cc687da84908b38c74df114fb05e_400) | | | [Preferred Stock](#if274cc687da84908b38c74df114fb05e_400) | | | [113](#if274cc687da84908b38c74df114fb05e_400) | | | | | |

| | | | | | | [Note 15](#if274cc687da84908b38c74df114fb05e_418) | | | [Leases](#if274cc687da84908b38c74df114fb05e_418) | | | [117](#if274cc687da84908b38c74df114fb05e_418) | | | | | |

| | | | | | | [Note 16](#if274cc687da84908b38c74df114fb05e_421) | | | [Income Taxes](#if274cc687da84908b38c74df114fb05e_421) | | | [121](#if274cc687da84908b38c74df114fb05e_421) | | | | | |

| | | | | | | [Note 18](#if274cc687da84908b38c74df114fb05e_433) | | | [Derivative Instruments](#if274cc687da84908b38c74df114fb05e_433) | | | [125](#if274cc687da84908b38c74df114fb05e_433) | | | | | |

| | | | | | | [Note 19](#if274cc687da84908b38c74df114fb05e_439) | | | [Guarantees](#if274cc687da84908b38c74df114fb05e_439) | | | [126](#if274cc687da84908b38c74df114fb05e_439) | | | | | |

| | | | | | | [Note 20](#if274cc687da84908b38c74df114fb05e_442) | | | [Employee Benefits](#if274cc687da84908b38c74df114fb05e_442) | | | [126](#if274cc687da84908b38c74df114fb05e_442) | | | | | |

| | | | | | | [Note 22](#if274cc687da84908b38c74df114fb05e_454) | | | [Segment Information](#if274cc687da84908b38c74df114fb05e_454) | | | [133](#if274cc687da84908b38c74df114fb05e_454) | | | | | |

| | | | | | | [Note 26](#if274cc687da84908b38c74df114fb05e_472) | | | [Regulatory Environment](#if274cc687da84908b38c74df114fb05e_472) | | | [141](#if274cc687da84908b38c74df114fb05e_472) | | | | | |

| | | | | | | [Note 28](#if274cc687da84908b38c74df114fb05e_481) | | | [Quarterly Financial Information (Unaudited)](#if274cc687da84908b38c74df114fb05e_481) | | | [148](#if274cc687da84908b38c74df114fb05e_481) | | | | | |

| [PART III](#if274cc687da84908b38c74df114fb05e_496) | | | | | | | | | | | | | | | [151](#if274cc687da84908b38c74df114fb05e_496) | | |

| [PART IV](#if274cc687da84908b38c74df114fb05e_514) | | | | | | | | | | | | | | | [153](#if274cc687da84908b38c74df114fb05e_514) | | |

| | | | [A.](#if274cc687da84908b38c74df114fb05e_529) | | | [Income Statements](#if274cc687da84908b38c74df114fb05e_529) | | | | | | | | | [159](#if274cc687da84908b38c74df114fb05e_529) | | |

| | | | [B.](#if274cc687da84908b38c74df114fb05e_532) | | | [Statements of Comprehensive Income](#if274cc687da84908b38c74df114fb05e_532) | | | | | | | | | [160](#if274cc687da84908b38c74df114fb05e_532) | | |

| | | | [C.](#if274cc687da84908b38c74df114fb05e_538) | | | [Balance Sheets](#if274cc687da84908b38c74df114fb05e_538) | | | | | | | | | [161](#if274cc687da84908b38c74df114fb05e_538) | | |

| | | | [D.](#if274cc687da84908b38c74df114fb05e_541) | | | [Statements of Cash Flows](#if274cc687da84908b38c74df114fb05e_541) | | | | | | | | | [162](#if274cc687da84908b38c74df114fb05e_541) | | |

| [SIGNATURES](#if274cc687da84908b38c74df114fb05e_550) | | | | | | | | | | | | | | | [166](#if274cc687da84908b38c74df114fb05e_550) | | |

| BSER | | | | | | Best System of Emission Reduction | | |

| CPP | | | | | | Clean Power Plan | | |

| CSAPR | | | | | | Cross-State Air Pollution Rule | | |

| NSPS | | | | | | New Source Performance Standards | | |

| EGU | | | | | | Electric Utility Generating Unit | | |

| ERP | | | | | | Enterprise Resource Planning | | |

| SOX | | | | | | Section 404 of the Sarbanes-Oxley Act | | |

| VITA | | | | | | Variable Income Tax Adjustment Rider | | |

| WHO | | | | | | World Health Organization | | |

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;

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

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 33] [added: 36] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

The following table summarizes information on our electric generation facilities, including owned and jointly owned facilities, as of December 31, [removed: 2020:][added: 2021:]

| Name | | | | | | Location | | | | | | Fuel | | | | | | Number of Generating Units | | | | | | Capacity In MW [removed: (1)] [added: (1)] | | | | | |

| ERGS | | | | | | Oak Creek, WI | | | | | | Coal | | | | | | 2 | | | | | | [removed: 1,059] [added: 1,061] | | | (3) (4) | | |

| OCPP | | | | | | Oak Creek, WI | | | | | | Coal | | | | | | 4 | | | | | | [removed: 1,076] [added: 1,087] | | | | | |

| Weston | | | | | | Rothschild, WI | | | | | | Coal | | | | | | 2 | | | | | | [removed: 719] [added: 720] | | | (2) | | |

| Total coal-fired plants | | | | | | | | | | | | | | | | | | 10 | | | | | | [removed: 3,165] [added: 3,179] | | | | | |

| Concord | | | | | | Watertown, WI | | | | | | Natural Gas/Oil | | | | | | 4 | | | | | | [removed: 362] [added: 366] | | | | | |

| De Pere Energy Center | | | | | | De Pere, WI | | | | | | Natural Gas/Oil | | | | | | 1 | | | | | | [removed: 166] [added: 165] | | | | | |

| Fox Energy Center | | | | | | Wrightstown, WI | | | | | | Natural Gas | | | | | | 3 | | | | | | [removed: 574] [added: 577] | | | | | |

| Germantown | | | | | | Germantown, WI | | | | | | Natural Gas/Oil | | | | | | 5 | | | | | | [removed: 268] [added: 273] | | | | | |

| F. D. Kuester | | | | | | Negaunee, MI | | | | | | Natural Gas | | | | | | 7 | | | | | | [removed: 128] [added: 132] | | | | | |

| A. J. Mihm | | | | | | Baraga, MI | | | | | | Natural Gas | | | | | | 3 | | | | | | [removed: 55] [added: 56] | | | | | |

| Paris | | | | | | Union Grove, WI | | | | | | Natural Gas/Oil | | | | | | 4 | | | | | | [removed: 364] [added: 359] | | | | | |

| VAPP | | | | | | Milwaukee, WI | | | | | | Natural Gas | | | | | | 2 | | | | | | [removed: 268] [added: 267] | | | | | |

| West Marinette | | | | | | Marinette, WI | | | | | | Natural Gas/Oil | | | | | | 3 | | | | | | [removed: 149] [added: 150] | | | | | |

| Weston | | | | | | Rothschild, WI | | | | | | Natural Gas/Oil | | | | | | 3 | | | | | | [removed: 115] [added: 65] | | | | | |

| Total natural gas-fired plants | | | | | | | | | | | | | | | | | | 38 | | | | | | [removed: 3,758] [added: 3,719] | | | | | |

| Hydro plants (30 in number) | | | | | | WI and MI | | | | | | Hydro | | | | | | 81 | | | | | | [removed: 100] [added: 116] | | | (5) (6) | | |

| Rothschild Biomass Plant | | | | | | Rothschild, WI | | | | | | Biomass | | | | | | 1 | | | | | | [removed: 45] [added: 44] | | | (7) | | |

| Wind sites (5 in number) | | | | | | WI and IA | | | | | | Wind | | | | | | 350 | | | | | | [removed: 498] [added: 493] | | | (2) | | |

Values are primarily based on the net dependable expected capacity ratings for summer [removed: 2021] [added: 2022] established by tests and may change slightly from year to year.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 34] [added: 37] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

- Two Creeks is jointly owned by WPS and [added: Madison Gas and Electric Company,] an unaffiliated utility.

WPS holds a 44.6% ownership interest in this facility and the unaffiliated utilities [added: collectively] own the remaining 55.4%.

[removed: See Note 2, Acquisitions, for] [added: For] more information on [removed: the Forward Wind Energy Center acquisition.][added: recent and pending wind facility acquisitions, see Note 2, Acquisitions.]

As of December 31, [removed: 2020,] [added: 2021,] we operated approximately [removed: 36,100] [added: 35,800] miles of overhead distribution lines and approximately [removed: 34,900] [added: 35,600] miles of underground distribution cable, as well as approximately [removed: 450] [added: 440] electric distribution substations and approximately [removed: 507,900] [added: 510,500] line transformers.

At December 31, [removed: 2020,] [added: 2021,] our natural gas properties were located in Illinois, Wisconsin, Minnesota, and Michigan, and consisted of the following:

- Approximately [removed: 50,300] [added: 50,900] miles of natural gas distribution mains,

- Approximately [removed: 1,100] [added: 1,200] miles of natural gas transmission mains,

Our natural gas distribution and gas storage systems included distribution mains and transmission mains connected to the pipeline transmission systems of Alliance Pipeline, ANR Pipeline Company, Centra Pipelines, [added: Bison Pipeline,] Consumers Energy, [removed: Enbridge Gas,] [added: DTE Gas Company,] Great Lakes Transmission Company, Guardian Pipeline L.L.C., [added: Interstate Power and Light Company,] Kinder Morgan Illinois Pipeline, [removed: Michigan Consolidated Gas Company,] Midwestern Gas Pipeline Company, Natural Gas Pipeline Company of America, Nicor Gas, Northern Border Pipeline Company, Northern Natural Gas Company, [added: Northwest Gas of Cottonwood County, LLC, Northwestern Energy,] Panhandle Gas Transmission, [added: SEMCO,] Trunkline Gas Pipeline, [added: Union Gas,] Vector Pipeline Company, and Viking Gas Transmission.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 35] [added: 38] | | | *WEC Energy Group, Inc.* | | |

As of December 31, [removed: 2020,] [added: 2021,] the steam system supplied by the VAPP consisted of approximately 40 miles of both high pressure and low pressure steam piping, approximately four miles of walkable tunnels, and other pressure regulating equipment.

WECI has ownership interests in [removed: five] [added: six] wind generating facilities.

The following table summarizes information on WECI's wind generating facilities as of December 31, [removed: 2020:][added: 2021:]

| Name | | | | | | Location | | | | | | Number of Generating Units | | | | | | Nameplate Capacity In MW [removed: (1) | | |] [added: (1)] | | | | | |

| Wind generating facilities | | | | | | | | | | | | | | | | | | | | | | | | [removed: | | |]

| Upstream | | | | | | Antelope County, Nebraska | | | | | | 81 | | | | | | 202.5 | | | [removed: (2)] | | | [removed: | | |]

| Bishop Hill III | | | | | | Henry County, Illinois | | | | | | 53 | | | | | | 132.1 | | | [removed: (3)] | | | [removed: | | |]

| Coyote Ridge | | | | | | Brookings County, South Dakota | | | | | | 39 | | | | | | 96.7 | | | [removed: (4)] | | | [removed: | | |]

| Badger Hollow I | | | | | | WI | | | | | | Solar | | | | | | 41 | | | | | | 100 | | | (2) | | |

| Total renewables | | | | | | | | | | | | | | | | | | 521 | | | | | | 853 | | | | | |

| Total system | | | | | | | | | | | | | | | | | | 569 | | | | | | 7,751 | | | | | |

- Badger Hollow I is jointly owned by WPS and Madison Gas and Electric Company, an unaffiliated utility.

WPS holds a 66.7% ownership interest in this facility and Madison Gas and Electric Company owns the remaining 33.3%.

WPS holds a 66.7% ownership interest in this facility and Madison Gas and Electric Company owns the remaining 33.3%.

- Forward Wind is jointly owned by WPS along with Wisconsin Power and Light Company and Madison Gas and Electric Company, two unaffiliated utilities.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Jayhawk | | | | | | Bourbon and Crawford Counties, Kansas | | | | | | 70 | | | | | | 197.4 | | | | | |

| Total renewables | | | | | | | | | | | | | | | | | | 480 | | | | | | 743 | | | | | |

| Total system | | | | | | | | | | | | | | | | | | 528 | | | | | | 7,666 | | | | | |

WPS holds a 66.7% ownership interest in this facility.

- WPS, along with two other unaffiliated utilities, owns Forward Wind Energy Center.

| | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

(2) In January 2019, WECI completed the acquisition of an 80% ownership interest in Upstream.

In February 2020, WECI agreed to acquire an additional 10% ownership interest in this wind park.

See Note 2, Acquisitions, for more information.

(3) In August 2018, WECI completed the acquisition of an 80% ownership interest in Bishop Hill III.

In December 2018, WECI acquired an additional 10% ownership interest in this wind park.

(4) In December 2018, WECI completed the acquisition of an 80% ownership interest in Coyote Ridge.

(5) In December 2020, WECI completed the acquisition of a 90% ownership interest in Blooming Grove.

(6) In December 2020, WECI completed the acquisition of an 85% ownership interest in Tatanka Ridge, which achieved commercial operation on January 5, 2021.

In August 2019, WECI signed an agreement to acquire an 80% ownership interest in Thunderhead, a 300 MW wind generating facility under construction in Antelope and Wheeler counties in Nebraska.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 37] [added: 40] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

Klappa. Age [removed: 70.][added: 71.]

- WEC Energy Group — [removed: Director] [added: President] and Chief Executive Officer since February [removed: 2019.][added: 1, 2022.]

- WE — Chairman of the Board and Chief Executive Officer since February [removed: 2019.][added: 1, 2022.]

[added: - WE –] Executive Vice President [removed: -] [added: –] Customer Service and Operations [removed: from June 2015 to April 2016.][added: since December 2021.]

Garvin. Age [removed: 54.][added: 55.]

- WE — Executive Vice President - External Affairs [removed: since] [added: from] June [removed: 2015.][added: 2015 through December 2018.]

Guc. Age [removed: 51.][added: 52.]

Kelsey. Age [removed: 56.][added: 57.]

Krueger. Age [removed: 55.][added: 56.]

- WEC [added: Business Services (a centralized service company of WEC] Energy [removed: Group] [added: Group)] — Executive Vice President - WEC Infrastructure since January 2019.

Lauber. Age [removed: 55.][added: 56.]

[removed: - WEC Energy Group —] Senior Executive Vice President and Chief Operating Officer [removed: since] [added: from] June [removed: 2020.][added: 2020 to January 31, 2022.]

[removed: - WE —] Executive Vice President [removed: since] [added: from] June [removed: 2020.][added: 2020 to December 31, 2021.]

Xia Liu. Age [removed: 51.][added: 52.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 38] [added: 41] | | | *WEC Energy Group, Inc.* | | |

Matthews. Age [removed: 64.][added: 65.]

Reese. Age [removed: 39.][added: 40.]

- [added: PGL –] Controller - Illinois from September 2015 to September 2019.

Mary Beth Straka. Age [removed: 56.][added: 57.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 39] [added: 42] | | | *WEC Energy Group, Inc.* | | |

Joshua M.

Erickson.

Age 49

- WEC Business Services (a centralized service company of WEC Energy Group) – Vice President and Deputy General Counsel since August 2021.

Director-Legal Services – Corporate and Finance from June 2015 through July 2021.

- WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President - External Affairs since January 2019.

Assistant Corporate Secretary since January 2020.

Director since February 1, 2022.

President since January 1, 2022.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

William Mastoris. Age 58.

- WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President – Customer Service and Operations since December 2021.

Vice President – Supply Chain and Fleet from January 2019 through November 2021.

Director since November 2021.

Vice President – Supply Chain and Fleet from June 2015 through December 2018.

Director since November 2021.

Molly A.

Mulroy. Age 46.

- WEC Business Services (a centralized service company of WEC Energy Group) – Executive Vice President and Chief Administrative Officer since August 2021.

Vice President and Chief Information Officer from January 2019 through July 2021.

Director since November 2021.

- WE – Vice President and Chief Information Officer from June 2015 through December 2018.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

J.

Kevin Fletcher. Age 62.

President since October 2018.

Director since June 2015.

President from May 2016 to November 2018.

Director since January 2018.

Tom Metcalfe. Age 53.

- WE — President since November 2018.

Executive Vice President - Generation from April 2016 to November 2018.

Senior Vice President - Power Generation from January 2014 to March 2016.

As of [removed: January] [added: December] 31, 2021, based upon the number of WEC Energy Group shareholder accounts (including accounts in our stock purchase and dividend reinvestment plan), we had approximately [removed: 42,000] [added: 39,000] registered shareholders.

[removed: WEC ENERGY GROUP, INC.][added: | *2021 Form 10-K* | | | 43 | | | *WEC Energy Group, Inc.* | | |]

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

COMPARATIVE FINANCIAL DATA AND OTHER STATISTICS

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| As of or for Year Ended December 31 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| (in millions, except per share information) | | | | | | 2020 | | | | | | 2019 | | | | | | 2018 | | | | | | 2017 (1) | | | | | | 2016 | | |

| Operating revenues | | | | | | $ | 7,241.7 | | | | | $ | 7,523.1 | | | | | $ | 7,679.5 | | | | | $ | 7,648.5 | | | | | $ | 7,472.3 | |

| Net income attributed to common shareholders | | | | | | 1,199.9 | | | | | | 1,134.0 | | | | | | 1,059.3 | | | | | | 1,203.7 | | | | | | 939.0 | | |

| Total assets | | | | | | 37,028.1 | | | | | | 34,951.8 | | | | | | 33,475.8 | | | | | | 31,590.5 | | | | | | 30,123.2 | | |

| Preferred stock of subsidiary | | | | | | 30.4 | | | | | | 30.4 | | | | | | 30.4 | | | | | | 30.4 | | | | | | 30.4 | | |

| Long-term debt (excluding current portion) | | | | | | 11,728.1 | | | | | | 11,211.0 | | | | | | 9,994.0 | | | | | | 8,746.6 | | | | | | 9,158.2 | | |

| Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Basic | | | | | | 315.4 | | | | | | 315.4 | | | | | | 315.5 | | | | | | 315.6 | | | | | | 315.6 | | |

| Diluted | | | | | | 316.5 | | | | | | 316.7 | | | | | | 316.9 | | | | | | 317.2 | | | | | | 316.9 | | |

| Earnings per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Basic | | | | | | $ | 3.80 | | | | | $ | 3.60 | | | | | $ | 3.36 | | | | | $ | 3.81 | | | | | $ | 2.98 | |

| Diluted | | | | | | $ | 3.79 | | | | | $ | 3.58 | | | | | $ | 3.34 | | | | | $ | 3.79 | | | | | $ | 2.96 | |

| Dividends per share of common stock | | | | | | $ | 2.53 | | | | | $ | 2.36 | | | | | $ | 2.21 | | | | | $ | 2.08 | | | | | $ | 1.98 | |

(1) Includes a $206.7 million increase in net income attributed to common shareholders related to a re-measurement of our deferred taxes as a result of the Tax Legislation.

| *2020 Form 10-K* | | | 40 | | | *WEC Energy Group, Inc.* | | |

We have audited the accompanying consolidated balance sheets of WEC Energy Group, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated statements of income, comprehensive income, equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 25, 2021,] [added: 24, 2022,] expressed an unqualified opinion on the Company's internal control over financial reporting.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 78] [added: 79] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

The Company had [removed: $3,544] [added: $3,367.1] million and [removed: $3,979] [added: $3,960.3] million of regulatory assets and liabilities, respectively, as of December 31, [removed: 2020.][added: 2021.]

[removed: February 25, 2021][added: | | | | | | | 2021 | | | | | | | | |]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 79] [added: 80] | | | *WEC Energy Group, Inc.* | | |

We have audited the internal control over financial reporting of WEC Energy Group, Inc. and subsidiaries (the “Company”) as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, [removed: 2020,] [added: 2021,] of the Company and our report dated February [removed: 25, 2021,] [added: 24, 2022,] expressed an unqualified opinion on those consolidated financial statements and financial statement schedules.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our [removed: audits.][added: audit.]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 80] [added: 81] | | | *WEC Energy Group, Inc.* | | |

| (in millions, except per share amounts) | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Operating revenues | | | | | | $ | [removed: 7,241.7] [added: 8,316.0] | | | | | $ | [removed: 7,523.1] [added: 7,241.7] | | | | | $ | [removed: 7,679.5] [added: 7,523.1] | |

| Cost of sales | | | | | | [removed: 2,319.5] [added: 3,311.0] | | | | | | [removed: 2,678.8] [added: 2,319.5] | | | | | | [removed: 2,897.9] [added: 2,678.8] | | |

| Other operation and maintenance | | | | | | [removed: 2,032.2] [added: 2,005.5] | | | | | | [removed: 2,184.8] [added: 2,032.2] | | | | | | [removed: 2,270.5] [added: 2,184.8] | | |

| Depreciation and amortization | | | | | | [removed: 975.9] [added: 1,074.3] | | | | | | [removed: 926.3] [added: 975.9] | | | | | | [removed: 845.8] [added: 926.3] | | |

| Property and revenue taxes | | | | | | [removed: 208.0] [added: 210.3] | | | | | | [removed: 201.8] [added: 208.0] | | | | | | [removed: 196.9] [added: 201.8] | | |

| Total operating expenses | | | | | | [removed: 5,535.6] [added: 6,601.1] | | | | | | [removed: 5,991.7] [added: 5,535.6] | | | | | | [removed: 6,211.1] [added: 5,991.7] | | |

| Operating income | | | | | | [removed: 1,706.1] [added: 1,714.9] | | | | | | [removed: 1,531.4] [added: 1,706.1] | | | | | | [removed: 1,468.4] [added: 1,531.4] | | |

| Equity in earnings of transmission affiliates | | | | | | [removed: 175.8] [added: 158.1] | | | | | | [removed: 127.6] [added: 175.8] | | | | | | [removed: 136.7] [added: 127.6] | | |

| Other income, net | | | | | | [removed: 79.5] [added: 133.2] | | | | | | [removed: 102.2] [added: 79.5] | | | | | | [removed: 70.3] [added: 102.2] | | |

| Interest expense | | | | | | [removed: 493.7] [added: 471.1] | | | | | | [removed: 501.5] [added: 493.7] | | | | | | [removed: 445.1] [added: 501.5] | | |

| Loss on debt extinguishment | | | | | | [removed: 38.4] [added: —] | | | | | | — | | | | | | — | | | [added: | | | — | | | | | | — | | | | | | — | | | | | | 38.4 | | | | | | — | | | | | | 38.4 | | |]

| Other expense | | | | | | [removed: (276.8)] [added: (216.1)] | | | | | | [removed: (271.7)] [added: (276.8)] | | | | | | [removed: (238.1)] [added: (271.7)] | | |

| Income before income taxes | | | | | | [removed: 1,429.3] [added: 1,498.8] | | | | | | [removed: 1,259.7] [added: 1,429.3] | | | | | | [removed: 1,230.3] [added: 1,259.7] | | |

| Income tax expense | | | | | | [removed: 227.9] [added: 200.3] | | | | | | [removed: 125.0] [added: 227.9] | | | | | | [removed: 169.8] [added: 125.0] | | |

| Net income | | | | | | [removed: 1,201.4] [added: 1,298.5] | | | | | | [removed: 1,134.7] [added: 1,201.4] | | | | | | [removed: 1,060.5] [added: 1,134.7] | | |

| Net (income) loss attributed to noncontrolling interests | | | | | | [removed: (0.3)] [added: 3.0] | | | | | | [removed: 0.5] [added: (0.3)] | | | | | | [removed: —] [added: 0.5] | | |

| Net income attributed to common shareholders | | | | | | $ | [removed: 1,199.9] [added: 1,300.3] | | | | | $ | [removed: 1,134.0] [added: 1,199.9] | | | | | $ | [removed: 1,059.3] [added: 1,134.0] | |

| Basic | | | | | | $ | [removed: 3.80] [added: 4.12] | | | | | $ | [removed: 3.60] [added: 3.80] | | | | | $ | [removed: 3.36] [added: 3.60] | |

| Diluted | | | | | | $ | [removed: 3.79] [added: 4.11] | | | | | $ | [removed: 3.58] [added: 3.79] | | | | | $ | [removed: 3.34] [added: 3.58] | |

| Basic | | | | | | 315.4 | | | | | | 315.4 | | | | | | [removed: 315.5] [added: 315.4] | | |

| Diluted | | | | | | [removed: 316.5] [added: 316.3] | | | | | | [removed: 316.7] [added: 316.5] | | | | | | [removed: 316.9] [added: 316.7] | | |

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 81] [added: 82] | | | *WEC Energy Group, Inc.* | | |

| (in millions) | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Net income | | | | | | $ | [removed: 1,201.4] [added: 1,298.5] | | | | | $ | [removed: 1,134.7] [added: 1,201.4] | | | | | $ | [removed: 1,060.5] [added: 1,134.7] | |

| Net derivative [removed: loss,] [added: gain (loss),] net of tax [removed: benefit] [added: expense (benefit)] of [removed: $1.6, $1.3,] [added: $0.2, $(1.6),] and [removed: $0.8,] [added: $(1.3),] respectively | | | | | | [removed: (4.3)] [added: 0.6] | | | | | | [removed: (3.5)] [added: (4.3)] | | | | | | [removed: (2.1)] [added: (3.5)] | | |

| Reclassification of [added: realized] net [added: derivative] (gain) loss to net income, net of tax | | | | | | [removed: 1.5] [added: 0.9] | | | | | | [removed: (0.8)] [added: 1.5] | | | | | | [removed: (1.2)] [added: (0.8)] | | |

February 24, 2022

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

February 24, 2022

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Regulatory assets (December 31, 2021 includes $100.7 related to WEPCo Environmental Trust) | | | | | | 3,264.8 | | | | | | 3,524.1 | | |

| Pension and OPEB assets | | | | | | 881.3 | | | | | | 600.9 | | |

| Other | | | | | | 361.1 | | | | | | 295.6 | | |

| Current portion of long-term debt (December 31, 2021 includes $8.8 related to WEPCo Environmental Trust) | | | | | | 169.4 | | | | | | 785.8 | | |

| Other | | | | | | 680.9 | | | | | | 704.7 | | |

| Long-term debt (December 31, 2021 includes $102.7 related to WEPCo Environmental Trust) | | | | | | 13,523.7 | | | | | | 11,728.1 | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Depreciation and amortization | | | | | | 1,074.3 | | | | | | 975.9 | | | | | | 926.3 | | |

| Amounts recoverable from customers | | | | | | (82.3) | | | | | | 0.9 | | | | | | 29.8 | | |

| Other current assets | | | | | | 22.2 | | | | | | 12.5 | | | | | | (36.9) | | |

| Acquisition of Jayhawk | | | | | | (119.9) | | | | | | — | | | | | | — | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| Net loss attributed to noncontrolling interests | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3.0) | | | | | | (3.0) | | |

| Other comprehensive income | | | | | | — | | | | | | — | | | | | | — | | | | | | 3.6 | | | | | | 3.6 | | | | | | — | | | | | | — | | | | | | 3.6 | | |

| Capital contributions from noncontrolling interest | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7.6 | | | | | | 7.6 | | |

| Distributions to noncontrolling interests | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4.1) | | | | | | (4.1) | | |

| Balance at December 31, 2021 | | | | | | $ | 3.2 | | | | | $ | 4,138.1 | | | | | $ | 6,775.1 | | | | | $ | (3.2) | | | | | $ | 10,913.2 | | | | | $ | 30.4 | | | | | $ | 169.7 | | | | | $ | 11,113.3 | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

On our financial statements, we consolidate our majority-owned subsidiaries which we control, and VIEs of which we are the primary beneficiary.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

The variable

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

However, as a result of the extreme weather in the Midwest in February 2021, the cost of gas purchased for our natural gas customers was temporarily driven significantly higher than our normal winter weather expectations.

See Note 26, Regulatory Environment, for more information on the recovery of these high natural gas costs.

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

See Note 2, Acquisitions, for more information on recent acquisitions.

Consistent with the timing of when we recognize revenue, customer billings for the wind generation and servicing revenues generally occur on a monthly basis, with payments typically due in full within 30 days.

A true-up is calculated

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

In calculating

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

| WE | | | | | | 8.68% | | | | | | 1.79% | | |

Amortization and accumulated amortization for the years ended December 31, 2021 and 2020 were not significant.

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Cumulative effect adjustment from adoption of ASU 2018-02 | | | | | | — | | | | | | — | | | | | | 1.6 | | |

| Cumulative effect adjustment from adoption of ASU 2018-02 | | | | | | — | | | | | | — | | | | | | (1.0) | | |

| | | | | | | | | | | | | | | |

| Other | | | | | | 896.5 | | | | | | 957.8 | | |

| Accrued payroll and benefits | | | | | | 174.0 | | | | | | 199.8 | | |

| Other | | | | | | 530.7 | | | | | | 550.8 | | |

| Other current assets | | | | | | 13.4 | | | | | | (7.1) | | | | | | (10.0) | | |

| Acquisition of Bishop Hill III, net of restricted cash acquired of $4.5 | | | | | | — | | | | | | — | | | | | | (162.9) | | |

| Acquisition of Forward Wind Energy Center | | | | | | — | | | | | | — | | | | | | (77.1) | | |

| Acquisition of Coyote Ridge | | | | | | — | | | | | | — | | | | | | (61.4) | | |

| Balance at December 31, 2017 | | | | | | $ | 3.2 | | | | | $ | 4,278.5 | | | | | $ | 5,176.8 | | | | | $ | 2.9 | | | | | $ | 9,461.4 | | | | | $ | 30.4 | | | | | $ | — | | | | | $ | 9,491.8 | |

| Cumulative effect adjustment from ASU 2018-02 adoption | | | | | | — | | | | | | — | | | | | | (0.6) | | | | | | 0.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |

| Other comprehensive loss | | | | | | — | | | | | | — | | | | | | — | | | | | | (2.7) | | | | | | (2.7) | | | | | | — | | | | | | — | | | | | | (2.7) | | |

| Acquisition of noncontrolling interests | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 85.0 | | | | | | 85.0 | | |

See Note 2, Acquisitions, for more information on Blooming Grove and Tatanka Ridge, as well as the acquisition of other wind parks.

When

Revenues from distributed renewable solar projects consist primarily of sales of renewable energy and solar RECs generated by PDL.

The sale of solar RECs is a distinct performance obligation as they are often sold separately from the renewable energy generated.

Although the performance obligation for the sale of renewable energy is recognized over time and the performance obligation for solar RECs is recognized at a point-in-time, the timing of revenue recognition is the same, as the generation of renewable energy and sales of solar RECs occur concurrently.

(1) The 2018 rate reflects the impact of a new depreciation study approved by the MPUC in May 2018.

An approximate $1.4 million reduction in depreciation expense was recorded in 2018 related to this depreciation study.

Based on these requirements, our utilities did not record significant AFUDC for 2020, 2019, or 2018.

| WE | | | | | | 8.68% | | | | | | 5.39% | | |

These assessments require significant assumptions and judgments by management.

The number of shares of common stock authorized for issuance under the plan was 34.3 million.

(p) Leases—In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which revised the previous guidance (Topic 840) regarding accounting for leases.

In addition, required quantitative and qualitative disclosures related to lease agreements were expanded.

As required, we adopted Topic 842 effective January 1, 2019.

We utilized the following practical expedients, which were available under ASU 2016-02, in our adoption of the new lease guidance.

- We did not reassess whether any expired or existing contracts were leases or contained leases.

- We did not reassess the lease classification for any expired or existing leases (that is, all leases that were classified as operating leases in accordance with Topic 840 continue to be classified as operating leases, and all leases that were classified as capital leases in accordance with Topic 840 are classified as finance leases).

- We did not reassess the accounting for initial direct costs for any existing leases.

We did not elect the practical expedient allowing entities to account for the nonlease components in lease contracts as part of the single lease component to which they were related.

We did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of our right of use assets.

No impairment losses were included in the measurement of our right of use assets upon our adoption of Topic 842.

In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842, which is an amendment to ASU 2016-02.

Land easements (also commonly referred to as rights of way) represent the right to use, access or cross another entity's land for a specified purpose.

This guidance permits an entity to elect a transitional practical expedient, to be applied consistently, to not evaluate under Topic 842 land easements that were already in existence or had expired at the time of the entity's adoption of Topic 842.

Once Topic 842 is adopted, an entity is required to apply Topic 842 prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease.

Based on its evaluation, our management concluded that our and our subsidiaries' internal control over financial reporting was effective as of December 31, [removed: 2020.][added: 2021.]

There were no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the fourth quarter of [removed: 2020] [added: 2021] that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

On February 21, 2022, WEC Energy Group and Scott J.

Lauber, the Company's President and Chief Executive Officer, entered into a letter agreement, which was approved by the Compensation Committee.

Pursuant to the terms of this agreement, WEC Energy Group will credit an annual contribution of $300,000 to a nonqualified account beginning February 21, 2022.

So long as Mr. Lauber remains employed by WEC Energy Group, an additional $300,000 will be credited annually on February 1, until a maximum of 10 contributions have been made.

In addition, the account will be credited with interest at a rate of 5.0% annually, which is equivalent to the interest crediting rate under WEC Energy Group's cash balance pension plan.

The account vests upon the sixth contribution at which time Mr. Lauber will be 61, or upon Mr. Lauber's death or disability.

None.

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| *2020 Form 10-K* | | | 150 | | | *WEC Energy Group, Inc.* | | |

*[Table of Contents](#if274cc687da84908b38c74df114fb05e_10)*

PART III

Not applicable.

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| *2021 Form 10-K* | | | 152 | | | *WEC Energy Group, Inc.* | | |

*[Table of Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*

PART III

The information under "Proposal 1: Election of Directors – Terms Expiring in [removed: 2022] [added: 2023] – [removed: 2021] [added: 2022] Director Nominees for Election," "Delinquent Section 16(a) Reports," "Annual Meeting [added: Attendance] and Voting Information – Stockholder Nominees and Proposals," and "Governance – Board Committees – Audit and Oversight" in our Definitive Proxy Statement on Schedule 14A to be filed with the SEC for our Annual Meeting of Shareholders to be held May [removed: 6, 2021] [added: 5, 2022] (the [removed: "2021] [added: "2022] Annual Meeting Proxy Statement") is incorporated herein by reference.

The information under "Compensation Discussion and Analysis," "Executive Compensation Tables," "Governance – Director Compensation," and "Governance – Compensation Committee Interlocks and Insider Participation" in the [removed: 2021] [added: 2022] Annual Meeting Proxy Statement is incorporated herein by reference.

The security ownership information called for by Item 12 of Form 10-K is incorporated herein by reference to this information included under "WEC Energy Group Common Stock Ownership" in the [removed: 2021] [added: 2022] Annual Meeting Proxy Statement.

The following table sets forth information about our equity compensation plans as of December 31, [removed: 2020:][added: 2021:]

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 151] [added: 153] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

| Equity Compensation Plans Approved by Security Holders | | | | | | 3,111,907 | | | | | | $ | 69.84 | | | | | 9,008,198 | | | (1) | | |

| Total | | | | | | 3,111,907 | | | | | | $ | 69.84 | | | | | 9,008,198 | | | | | |

| Equity Compensation Plans Approved by Security Holders | | | | | | 2,887,460 | | | | | | $ | 64.13 | | | | | 24,691,825 | | | (1) | | |

| Total | | | | | | 2,887,460 | | | | | | $ | 64.13 | | | | | 24,691,825 | | | | | |

The information under "Governance – Additional Governance Matters – Related Party Transactions," "Proposal 1: Election of Directors – Terms Expiring in [removed: 2022] [added: 2023] – Board Composition [added: –] Independence," and "Governance – Board Committees" in the [removed: 2021] [added: 2022] Annual Meeting Proxy Statement is incorporated herein by reference.

The information regarding the fees paid to, and services performed by, our independent auditors and the pre-approval policy of our audit and oversight committee under "Independent Auditors' Fees and Services" in the [removed: 2021] [added: 2022] Annual Meeting Proxy Statement is incorporated herein by reference.

| [removed: *2020] [added: *2021] Form 10-K* | | | [removed: 152] [added: 154] | | | *WEC Energy Group, Inc.* | | |

*[Table of [removed: Contents](#if274cc687da84908b38c74df114fb05e_10)*][added: Contents](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_10)*]

| | | | [Consolidated Income Statements for the three years ended December 31, [added: 2021,] 2020, [removed: 2019,] and [removed: 2018.](#if274cc687da84908b38c74df114fb05e_253)[.](#if274cc687da84908b38c74df114fb05e_253)] [added: 2019.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_211)] | | | | | | [removed: [81](#if274cc687da84908b38c74df114fb05e_253)] [added: [82](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_211)] | | |

| | | | [Consolidated Statements of Comprehensive Income for the three years ended December 31, [added: 2021,] 2020, [removed: 2019,] and [removed: 2018.](#if274cc687da84908b38c74df114fb05e_256)] [added: 2019.](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_214)] | | | | | | [removed: [82](#if274cc687da84908b38c74df114fb05e_256)] [added: [83](#ieaeb5a0d8eb64d97892a5fc7e3e63b4c_214)] | | |