WEC Energy : First Quarter 2024 WG

WISCONSIN GAS LLC

(A Wholly Owned Subsidiary of WEC Energy Group, Inc.)

FINANCIAL STATEMENTS

For the Quarter Ended March 31, 2024

WISCONSIN GAS LLC

CONDENSED INCOME STATEMENTS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating revenues		$	282.6		$	372.4
Operating expenses
Cost of natural gas sold		138.7			231.3
Other operation and maintenance		32.1			30.3
Depreciation and amortization		21.8			20.6
Property and revenue taxes		2.2			2.4
Total operating expenses			194.8			284.6
Operating income		87.8			87.8
Other income, net		5.6			5.5
Interest expense		11.2			9.3
Other expense			(5.6)			(3.8)
Income before income taxes		82.2			84.0
Income tax expense		21.1			19.1
Net income		$	61.1		$	64.9

WISCONSIN GAS LLC

CONDENSED BALANCE SHEETS (Unaudited)			March 31			December 31
(in millions)			2024			2023
Assets
Current assets
Cash and cash equivalents	$	0.4	$	6.3
Accounts receivable and unbilled revenues, net of reserves of $20.7 and $19.1, respectively			159.9			143.3
Accounts receivable from related parties			41.6			23.6
Materials, supplies, and inventory:
Natural gas in storage			33.9			64.6
Materials and supplies			7.1			6.6
Prepaid taxes			7.9			11.9
Other prepayments			3.3			4.4
Other			5.4			9.4
Current assets			259.5			270.1
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $901.8 and
$896.1, respectively			2,451.9			2,426.5
Regulatory assets			252.1			260.0
Goodwill			95.9			95.9
Pension and OPEB assets			250.6			246.5
Other			21.9			20.7
Long-term assets			3,072.4			3,049.6
Total assets		$	3,331.9		$	3,319.7
Liabilities and Member's Equity
Current liabilities
Current portion of long-term debt	$	150.0	$	150.0
Short-term debt			286.4			318.3
Accounts payable			37.4			59.1
Accounts payable to related parties			44.0			41.6
Other			64.2			53.2
Current liabilities			582.0			622.2
Long-term liabilities
Long-term debt			637.4			637.2
Regulatory liabilities			430.7			445.4
Deferred income taxes			340.6			326.1
Environmental remediation liabilities			15.6			15.7
Other			13.7			14.7
Long-term liabilities			1,438.0			1,439.1
Commitments and contingencies
Member's equity			1,311.9			1,258.4
Total liabilities and member's equity		$	3,331.9		$	3,319.7

WISCONSIN GAS LLC

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating activities
Net income	$	61.1	$	64.9
Reconciliation to cash provided by operating activities
Depreciation and amortization		21.8			20.6
Deferred income taxes, net		12.4			9.0
Change in -
Accounts receivable and unbilled revenues, net		(34.6)			(21.7)
Materials, supplies, and inventories		30.2			101.5
Prepaid taxes		4.0			2.2
Other current assets		4.4			(0.1)
Accounts payable		(26.7)			(56.7)
Accrued taxes		6.7			10.0
Amounts refundable to customers		18.0			40.6
Other current liabilities		(8.1)			(8.1)
Other, net		(9.6)			(9.2)
Net cash provided by operating activities			79.6			153.0
Investing activities
Capital expenditures		(45.0)			(63.2)
Other, net		(1.1)			(0.8)
Net cash used in investing activities			(46.1)			(64.0)
Financing activities
Change in short-term debt		(31.9)			(90.9)
Equity contributions from parent		-			145.0
Payment of distributions to parent		(7.5)			(142.5)
Net cash used in financing activities			(39.4)			(88.4)
Net change in cash and cash equivalents		(5.9)			0.6
Cash and cash equivalents at beginning of period		6.3			0.1
Net cash and cash equivalents at end of period		$	0.4		$	0.7
Supplemental cash flow information
Cash paid for interest, net of amount capitalized		$	3.2		$	8.7