WEC faces risks from weather events, fluctuating energy demand, rate case outcomes, regulatory changes, inflation, commodity price volatility, supply chain disruptions, litigation, and creditworthiness of customers and counterparties. Potential for impairment of goodwill and long-lived assets, and negative impacts from regulatory disallowances of capital costs are also noted. Non-utility renewable energy projects are exposed to weather, counterparty financial performance, and power market rules.
Financial Upside
WEC anticipates increased margins from higher retail sales volumes, favorable weather, fuel cost collections, and regulatory rate case approvals. Acquisitions of renewable energy facilities and natural gas infrastructure, along with investments in efficiency improvements, are expected to contribute to future growth. Positive impacts from PTCs and equity method investments are also anticipated.
