WEC Energy Group, Inc.

Good afternoon and welcome to WEC Energy Group's conference call for second quarter 2026 results. This call is being recorded for rebroadcast and all participants are in a listen-only mode at this time. After the presentation, the conference will be open to analysts for questions and answers. In conjunction with this call, a package of detailed financial information is posted at wecenergygroup.com. A replay will be available approximately two hours after the conclusion of this call. Before the conference call begins, please note that all statements in the presentation, other than historical facts, are forward-looking statements that involve risks and uncertainties that are subject to change at any time. Such statements are based on management expectations at the time they are made. In addition to the assumptions and other factors referred to in connection with the statements, factors described in WEC Energy Group's latest Form 10-K and subsequent reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those contemplated. During the discussions, referenced earnings per share will be based on diluted earnings per share unless otherwise noted. and now it's my pleasure to introduce Scott Lauber, President and Chief Executive Officer of WEC Energy Group.

Good afternoon everyone and thank you for joining us today as we review our results for the second quarter of 2026. Here with me are Xia Liu, our Chief Financial Officer and Beth Straka, Senior Vice President of Corporate Communications and Investor Relations. As you saw from our news release this morning, We reported second quarter 2026 earnings of 91 cents a share. Our results reflect our continued focus on execution, financial discipline, and operating efficiency. We're on track to deliver results in line with our 2026 earnings guidance of $5.51 to $5.61 a share. This, of course, assumes normal weather for the remainder of the year. In a few minutes, Shaw will walk through our financial results and outlook in more detail. But first, let me highlight the strong economic growth in our region that serves as a foundation of our robust capital plan. Construction continues at the Microsoft site in Pleasant Prairie, and the first data center facility is fully operational. As a reminder, Microsoft has purchased more than 2,200 acres to date in that I-94 corridor south of Milwaukee. We are preparing to serve a forecasted demand increase of 2.6 gigawatts in this region through 2030 and an opportunity for further expansion. And to the north of Milwaukee, you'll recall that Vantage Data Centers is developing facilities for Oracle on approximately 1,900 acres. Construction continues on the initial phase of its data center project, which is being built on 670 acres. Vantage has stated that it expects to invest $15 billion to complete this phase in 2028. Significant construction progress has been made with structural framework complete on multiple buildings. The first facility could come online as soon as late 2027. We currently have 1.3 gigawatts of demand for this Vantage site in our forecast over the next five years. Looking to the future, This site has the potential to reach 3.5 gigawatts of demand over time. And there's other notable growth in our state. As a recent example, RELCO, formerly known as Kohler Energy, has announced plans to expand its production operations in Kenosha. The new facility is expected to complete in 2027 to produce backup generators for data centers. In addition, while Keegan Steel, a steel fabricating company, is looking to move its headquarters from Illinois to Pleasant Prairie. Harvard Lee-Davidson has also announced plans to bring some motorcycle production operations back from overseas to Wisconsin facilities. Wisconsin continues to be an attractive location for a variety of businesses. We are committed to meeting the growing demand across our service area as we invest in our systems for increased reliability and capacity. Our five-year capital plan includes $37.5 billion of projected investments. It's based on projects that are low risk and highly executable, with a good portion serving our very large customers. In total, by the end of 2030, we expect approximately 15% of our asset base to be dedicated to these very large customers. As you recall, we project long-term earnings per share growth of 7% to 8% a year on a compound annual basis between 2026 and 2030. This is based on the midpoint of our 2025 adjusted guidance. We expect that growth rate to accelerate to the upper half of the range starting in 2028. And as a reminder, on our major capital projects, Construction continues on the new natural gas generation facilities in Paris and Oak Creek, Wisconsin. We expect these facilities to start coming online in late 2027. Overall, we have a high level of confidence in our ability to execute on our capital plan and continue our growth trajectory. We are in the process of updating our next capital plan and we look forward to sharing the details with you on our third quarter call. Now turning to the regulatory front. In May, the Public Service Commission provided the written order for our very large customer tariff, or VLC. Under the tariff, the VLCs paid their full share of the cost. This is important to us, to the Commission, and to our customers, including the data center companies we are working with. I'm sure many of you are aware of the credit support required from Oracle for the Port Washington project. Oracle has stated it remains committed to the project, paying its full share of energy and providing the financial support needed so there's no risk to other Wisconsin customers. We are actively working with Oracle to update to financial security in line with the PSCW requirements. We believe our VLC tariff provides a strong framework for data center growth in the region. For our non-VLC customers, progress continues on the rate request we filed in April for forward-looking test years 2027 and 2028. Our proposed plan would help us continue to strengthen key infrastructure and deliver the energy our customers depend on while remaining focused on affordability. Staff and intervener testimony is due in mid-August. We expect final orders from the Commission by the end of the year with new rates effective in January 27 and 2028. Turning to Illinois. In May, the Illinois Commerce Commission unanimously approved the Rider QIP and Bad Debt Rider settlements. The settlements resolve all issues relating to 12 open dockets. We also continue to make progress on the rate requests for our Illinois utilities. A key driver for the people's gas is to support the pipe retirement program in Chicago. We expect a decision by the end of the year for test year 2027. In summary, we're excited about the strong economic development in our region. We're focused on execution of our capital plan designed to support thousands of jobs and strengthen our local economy. Next, I'll turn it over to Shaw.

Thank you, Scott. Our second quarter 2026 earnings of $0.91 per share reflects a $0.15 increase compared to the second quarter of 2025. Our earnings package includes a comparison of second quarter results on page 15. I'll walk through the significant drivers. Starting with our utility operations, earnings were $0.06 higher versus the second quarter of 2025. Weather negatively impacted quarter-over-quarter earnings by approximately $0.05. Compared to normal conditions, we estimate that weather had a $0.03 negative impact in the second quarter of 2026 compared to a $0.02 positive impact in the second quarter of 2025. Rate-based growth contributed $0.13 to earnings. This includes $0.09 of incremental AFUDC equity and $0.02 of incremental cash returns associated with projects under construction, mostly from projects supporting the VLC customers. In addition, sales growth, tax, and other items contributed a total of $0.06 to earnings. These positive drivers were partially offset by $0.05 from higher depreciation and amortization expense and $0.03 from higher day-to-day O&M. Next, let me provide some additional color on our weather normal retail electric deliveries. Compared to Q2 last year, total weather normal retail electric sales grew 4.2% this quarter, driven by growth from the VLCs. Excluding the iron ore mine and the VLC customers, we saw sales grow 1.2%, driven by higher volumes across all customer classes. Although results came in slightly ahead of our forecast, we expect full year 2026 weather normalized electric sales, excluding the iron ore mine and VLC customers, to be relatively even with 2025. At American Transmission Company, significant capital investment growth contributed an incremental 3 cents to Q2 earnings compared to 2025. Turning to our energy infrastructure segment, earnings were 11 cents higher in the second quarter of 26 compared to the same period in 2025. Remember in Q2 last year, we recognized a loss related to an asset impairment due to storm damages. This Q2, we received an insurance payment from some storm damages that occurred before. These two items account for a net $0.04 in total. The rest of the positive variance was largely driven by O&M timing, PTCs, and other items. Next, you'll see that earnings from the corporate and other segments decreased 3 cents, driven by tax timing and higher interest expense. In terms of common equity, we locked in about $760 million in the first half of this year. This includes about $40 million issued under our employee benefit plan and $720 million via the ATM program under forward contracts that we will settle in the future. In total, we expect to issue about $1.1 billion of common equity this year. Going forward, as a reminder, any incremental capital beyond the current plan is expected to be funded with 50% equity content. Finally, let me comment on guidance. As Scott mentioned earlier, We're reaffirming our 2026 earnings guidance of $5.51 to $5.61 per share, assuming normal weather for the rest of the year. For the third quarter, we're expecting a range of 92 to 98 cents per share. This accounts for July weather and assumes normal weather for the rest of the quarter. We look forward to updating you in the fall as we refresh our capital and financing plans. With that, I'll turn it back to Scott.