We Energies Extends Oak Creek Plant Operations to Bolster Energy Reliability

MILWAUKEE, June 25, 2025 – We Energies, a subsidiary of WEC Energy Group (NYSE: WEC), announced today a strategic decision to extend the operational lives of units 7 and 8 at its Oak Creek Power Plant. Originally slated for retirement at the end of 2025, these critical units are now expected to remain available to meet periods of high energy demand through the end of 2026. This extension underscores the company's commitment to ensuring grid stability and reliable power supply for its customers, particularly during peak consumption periods.

The decision to defer the retirement of these coal-fired units comes amidst evolving energy market dynamics and a focus on maintaining energy resilience. While We Energies continues its long-term transition towards a cleaner energy portfolio, the immediate need to secure sufficient generation capacity, especially during extreme weather events or unexpected outages, has taken precedence. The Oak Creek Power Plant, a cornerstone of Wisconsin's energy infrastructure, plays a vital role in providing baseload power and ensuring grid reliability.

Strategic Rationale and Market Context

This extension is a pragmatic response to several factors influencing the energy landscape. Firstly, the rapid growth in electricity demand, driven by electrification trends and increasing industrial activity, necessitates robust generation capabilities. Secondly, the intermittency of renewable energy sources, while crucial for decarbonization, requires reliable backup generation to ensure continuous supply. Units 7 and 8, with their proven track record, offer this essential reliability.

Furthermore, the current supply chain challenges and inflationary pressures impacting the construction of new power generation facilities, particularly large-scale renewable projects and battery storage, may have influenced this decision. Extending the life of existing, operational assets can be a more cost-effective and immediate solution to capacity shortfalls than accelerating new builds under adverse economic conditions.

Implications for WEC Energy Group and Investors

For WEC Energy Group, this announcement has several implications:

• Enhanced Reliability: The extended operation of Oak Creek units ensures continued reliable service to customers, mitigating potential risks of power shortages.
• Operational Flexibility: It provides the company with additional time to bring new, cleaner generation capacity online and strengthen its transmission infrastructure without compromising immediate energy needs.
• Financial Stability: While the long-term strategy remains a transition to cleaner energy, maintaining these units for an additional year could help stabilize revenues by ensuring consistent power delivery and potentially deferring significant capital expenditures on new capacity in the short term.

Investors should view this development as a prudent operational adjustment by WEC Energy Group. While the company is committed to its environmental goals, this move prioritizes grid stability and customer service, which are fundamental to a utility's core business. It reflects a balanced approach to energy transition, acknowledging the practicalities of maintaining a reliable power supply while progressively moving towards cleaner sources. The slight positive sentiment reflects the market's appreciation for operational stability and risk mitigation in the utility sector.

Looking Ahead: Balancing Transition and Reliability

We Energies has been actively investing in renewable energy projects, including solar and wind farms, and exploring battery storage solutions as part of its long-term decarbonization strategy. The extension of the Oak Creek units' operation is not a deviation from this path but rather a temporary measure to bridge the gap as new, cleaner assets come online and the grid infrastructure adapts. The company will likely continue to monitor energy demand, market conditions, and technological advancements to determine the optimal retirement schedule for its remaining fossil fuel assets.

This decision highlights the complex challenges faced by utility companies in balancing environmental stewardship with the imperative of providing affordable and reliable energy. WEC Energy Group's proactive communication regarding this timeline adjustment demonstrates transparency and a commitment to managing its energy portfolio responsibly.