WEC Energy : First Quarter 2024 PGL

THE PEOPLES GAS LIGHT AND COKE COMPANY

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

FINANCIAL STATEMENTS

For the Quarter Ended March 31, 2024

THE PEOPLES GAS LIGHT AND COKE COMPANY

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating revenues		$	587.5		$	517.6
Operating expenses
Cost of natural gas		156.2			196.3
Other operation and maintenance		94.2			99.2
Depreciation and amortization		58.2			53.4
Property and revenue taxes		17.2			11.8
Total operating expenses			325.8			360.7
Operating income		261.7			156.9
Other income, net		1.9			1.5
Interest expense		23.2			19.9
Other expense			(21.3)			(18.4)
Income before income taxes		240.4			138.5
Income tax expense		66.9			37.6
Net income		$	173.5		$	100.9

THE PEOPLES GAS LIGHT AND COKE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)			March 31			December 31
(in millions, except share amounts)			2024			2023
Assets
Current assets
Accounts receivable and unbilled revenues, net of reserves of $101.1 and $107.4, respectively	$	372.8	$	332.0
Accounts receivable from related parties			11.0			19.5
Notes receivable from related party			17.3			27.9
Materials, supplies, and inventories:
Natural gas in storage, at LIFO			33.8			110.4
Materials and supplies			34.9			32.7
Prepayments			5.3			8.5
Amounts recoverable from customers			30.1			18.0
Collateral on deposit			29.5			36.7
Other			4.2			2.2
Current assets			538.9			587.9
Long-term assets
Property, plant, and equipment, net of accumulated depreciation and amortization of $1,834.3 and
$1,810.4, respectively			5,102.6			5,080.7
Regulatory assets			728.1			711.6
Pension and other postretirement employee benefit assets			151.9			150.2
Other			9.7			9.4
Long-term assets			5,992.3			5,951.9
Total assets		$	6,531.2		$	6,539.8
Liabilities and Shareholder's Equity
Current liabilities
Short-term debt	$	312.0	$	330.8
Current portion of long-term debt			75.0			75.0
Accounts payable			108.6			177.7
Accounts payable to related parties			25.0			36.2
Accrued taxes			81.0			34.9
Customer credit balances			65.1			88.8
Other			95.9			116.9
Current liabilities			762.6			860.3
Long-term liabilities
Long-term debt			1,983.5			1,983.3
Deferred income taxes			680.9			650.6
Deferred investment tax credits			20.2			20.6
Regulatory liabilities			412.6			411.4
Environmental remediation liabilities			292.5			305.9
Asset retirement obligations			137.4			135.8
Other			75.6			79.5
Long-term liabilities			3,602.7			3,587.1
Commitments and contingencies
Shareholder's equity
Common stock - without par value, 40,000,000 shares authorized; 25,357,566 shares issued and
outstanding			1,318.1			1,318.0
Retained earnings			847.8			774.4
Shareholder's equity			2,165.9			2,092.4
Total liabilities and shareholder's equity		$	6,531.2		$	6,539.8

THE PEOPLES GAS LIGHT AND COKE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)		Three Months Ended
			March 31
(in millions)		2024			2023
Operating activities
Net income	$	173.5	$	100.9
Reconciliation to cash provided by operating activities
Depreciation and amortization		58.2			53.4
Deferred income taxes and investment tax credits, net		26.7			12.6
Settlement of asset retirement obligations		(1.2)			(2.1)
Manufactured gas plant remediation costs		(13.5)			(0.5)
Change in -
Accounts receivable and unbilled revenues, net		(32.3)			70.4
Materials, supplies, and inventories		74.4			67.7
Amounts recoverable from customers		(12.1)			13.7
Prepayments		3.2			2.0
Temporary LIFO liquidation debit		(3.9)			-
Collateral on deposit		7.2			(36.1)
Accounts payable		(68.3)			(128.9)
Temporary LIFO liquidation credit		-			39.3
Accrued taxes		46.1			22.1
Customer credit balances		(23.7)			(20.0)
Amounts refundable to customers		(9.0)			(6.7)
Other current liabilities		(4.0)			(9.8)
Other, net		(43.1)			(19.6)
Net cash provided by operating activities			178.2			158.4
Investing activities
Capital expenditures		(70.6)			(82.7)
Notes receivable from related party, net		10.6			26.2
Other, net		0.8			1.0
Net cash used in investing activities			(59.2)			(55.5)
Financing activities
Change in short-term debt		(18.8)			(177.8)
Equity contribution from parent		-			170.0
Payment of dividends to parent		(100.0)			(95.0)
Other, net		(0.2)			-
Net cash used in financing activities			(119.0)			(102.8)
Net change in cash and cash equivalents		-			0.1
Cash and cash equivalents at beginning of period		-			-
Cash and cash equivalents at end of period		$	-		$	0.1
Supplemental cash flow information
Cash paid for interest		$	13.7		$	11.7