WEC Energy : Third Quarter 2023 WG

WISCONSIN GAS LLC

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

FINANCIAL STATEMENTS

For the Quarter Ended September 30, 2023

WISCONSIN GAS LLC

CONDENSED INCOME STATEMENTS (Unaudited)	Three Months Ended				Nine Months Ended
			September 30				September 30
(in millions)	2023		2022				2023			2022
Operating revenues		$	78.8		$	106.8		$	563.2		$	603.8
Operating expenses
Cost of natural gas sold		33.9			62.9			312.8			363.1
Other operation and maintenance		32.4			26.5			92.6			79.8
Depreciation and amortization		21.0			15.0			62.3			44.3
Property and revenue taxes		2.5			2.2			7.4			5.9
Total operating expenses			89.8			106.6			475.1			493.1
Operating income (loss)		(11.0)			0.2			88.1			110.7
Other income, net		6.4			2.5			17.5			5.8
Interest expense		9.7			4.8			28.2			14.3
Other expense			(3.3)			(2.3)			(10.7)			(8.5)
Income (loss) before income taxes		(14.3)			(2.1)			77.4			102.2
Income tax expense (benefit)		(3.3)			(0.5)			17.5			25.4
Net income (loss)		$	(11.0)		$	(1.6)		$	59.9		$	76.8

WISCONSIN GAS LLC

CONDENSED BALANCE SHEETS (Unaudited)			September 30			December 31
(in millions)			2023			2022
Assets
Current assets
Cash and cash equivalents	$	0.6	$	0.1
Accounts receivable and unbilled revenues, net of reserves of $17.5 and $18.3, respectively			75.1			207.6
Accounts receivable from related parties			16.8			21.0
Materials, supplies, and inventory:
Natural gas in storage			74.0			124.9
Materials and supplies			6.7			6.4
Prepaid taxes			9.1			7.3
Other			13.0			15.9
Current assets			195.3			383.2
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $888.5 and
$861.1, respectively			2,376.7			2,245.8
Regulatory assets			261.1			268.6
Goodwill			95.9			95.9
Pension and OPEB assets			245.7			240.5
Other			21.6			15.8
Long-term assets			3,001.0			2,866.6
Total assets		$	3,196.3		$	3,249.8
Liabilities and Member's Equity
Current liabilities
Short-term debt	$	232.4	$	287.8
Accounts payable			45.8			108.0
Accounts payable to related parties			34.9			33.5
Other			54.7			33.1
Current liabilities			367.8			462.4
Long-term liabilities
Long-term debt			787.1			786.6
Regulatory liabilities			451.9			443.3
Deferred income taxes			315.4			300.7
Environmental remediation liabilities			24.7			47.3
Other			17.4			18.9
Long-term liabilities			1,596.5			1,596.8
Commitments and contingencies
Member's equity			1,232.0			1,190.6
Total liabilities and member's equity		$	3,196.3		$	3,249.8

WISCONSIN GAS LLC

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)		Nine Months Ended
			September 30
(in millions)		2023			2022
Operating activities
Net income	$	59.9	$	76.8
Reconciliation to cash provided by operating activities
Depreciation and amortization		62.3			44.3
Deferred income taxes, net		9.1			16.9
Change in -
Accounts receivable and unbilled revenues, net		136.7			71.8
Materials, supplies, and inventories		50.6			(102.1)
Prepaid taxes		(1.8)			0.8
Other current assets		0.5			5.6
Accounts payable		(52.5)			(4.0)
Accrued taxes		(0.5)			2.1
Amounts refundable to customers		9.3			14.2
Other current liabilities		9.6			1.5
Other, net		(22.5)			(15.1)
Net cash provided by operating activities			260.7			112.8
Investing activities
Capital expenditures		(184.4)			(160.1)
Proceeds from cash surrender value of life insurance		-			1.9
Other, net		(1.9)			(1.8)
Net cash used in investing activities			(186.3)			(160.0)
Financing activities
Change in short-term debt		(55.4)			4.9
Equity contributions from parent		145.0			85.0
Payment of distributions to parent		(163.5)			(42.5)
Net cash provided by (used in) financing activities			(73.9)			47.4
Net change in cash and cash equivalents		0.5			0.2
Cash and cash equivalents at beginning of period		0.1			0.3
Net cash and cash equivalents at end of period		$	0.6		$	0.5
Supplemental cash flow information
Cash paid for interest, net of amount capitalized	$	17.8	$	20.6
Cash paid for income taxes, net			11.0			6.5