WEC (NYSE: WEC) gets Wisconsin rate approval and raises its capital plan 26.7%

What happened

WEC Energy Group, Inc. (NYSE: WEC) won approval from Wisconsin regulators on Nov. 5 for rate changes at three utilities. The Public Service Commission of Wisconsin (PSCW) approved changes that Wisconsin Electric Power Company, Wisconsin Gas LLC and Wisconsin Public Service Corporation sought in April 2026.

WEC's investor update also raises the 2027-2031 capital plan to $47.5 billion from $37.5 billion. That is a $10.0 billion increase, or 26.7% by OptimistFi's calculation.

Slide 9 lists a 9.50% authorized return on equity, a 53.0% equity ratio and new base rates effective Jan. 1, 2027. WEC keeps the first 15 basis points above the allowed return. It splits the next 25 50/50 with customers. Customers get everything beyond 40.

Key numbers

Metric Latest Change Source
Five-year capital plan (2027-2031 vs former plan) $47.5 billion from $37.5 billion, +26.7% Calculated from SEC 8-K Exhibit 99.1
Wisconsin authorized return on equity 9.50% SEC 8-K Exhibit 99.1, slide 9
Wisconsin equity ratio 53.0% SEC 8-K Exhibit 99.1, slide 9
Average asset base (2031E vs 2025A) $72.8 billion from $34.2 billion, +13.4% a year (CAGR) SEC 8-K Exhibit 99.1
Expected fuel savings for customers through 2033 (Oracle subscription) $300 million SEC 8-K Exhibit 99.1

Read more: WEC Energy Group (WEC) company research

Why it matters

The approved terms turn a bigger capital plan into earnings. WEC projects its average asset base will grow from $34.2 billion in 2025 to $72.8 billion in 2031, a 13.4% compound annual rate. It says the plan supports 7% to 9%+ long-term EPS growth, measured from the $5.56 midpoint of original 2026 guidance.

Two data-center projects anchor the demand forecast. WEC expects to add 4.9 GW of electric demand from 2026 through 2031, including Microsoft's 3,200 MW and Oracle's 1,300 MW. It cites Microsoft's announced investment of approximately $20 billion.

OptimistFi has argued that WEC earns its value from allowed returns on a growing rate base. A larger plan with a set return fits that view.

Earnings still depend on regulators. The filing's risk factors cite rate case outcomes, rider reconciliations and execution of the capital plan. WEC is still seeking PSCW approval for Oracle's subscription to the Point Beach power purchase agreement. It expects that to save customers $300 million in fuel costs through 2033.

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What's next

The PSCW's final written order is expected before year-end. Terms that differ from slide 9 would change the earnings math above.

Illinois regulators are also expected to rule in the fourth quarter of 2026 on Peoples Gas and North Shore Gas rate requests, for new rates effective Jan. 1, 2027.

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Sources

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