WEC Energy Raises Investment to $47.5 Billion, Targets Annual Earnings Growth of 7% to 9%
Key Facts
WEC Energy Group said it expects to invest $47.5 billion in capital projects between 2027 and 2031, an increase of $10 billion and more than 26% compared with its previous five-year plan. Company management said the plan supports compound annual growth in earnings per share of 7% to 9% or more over the same period. The expanded plan comes as the company expects electricity demand to increase, particularly from major customers, according to executives’ remarks at the third-quarter earnings conference. It also includes additional investment in regulated power generation and transmission lines, alongside natural gas, battery storage and renewable energy. Management linked most of the increase in spending to electricity demand from major customers.
WEC expects electricity demand to grow by 4.9 gigawatts between 2026 and 2031, one gigawatt more than estimates in its previous demand plan. Management said the expansion, driven largely by the needs of major customers, explains a key part of the increase in capital spending. In a sign of that demand, the company said the first facility at Microsoft’s Mount Pleasant data center campus has entered operation, while construction of additional facilities continues. It said Microsoft has purchased more than 2,200 acres to date along the I-94 corridor south of Milwaukee. WEC also pointed to another major customer whose needs add 400 megawatts to the new plan, saying it is making progress with the customer and will announce further details later.
The company expects the plan to support compound annual asset growth of 13.4%. The changes include a $6.8 billion increase in investment in modern, efficient natural gas power generation during 2027–2031 compared with the previous plan. The company will also increase investment in renewable generation and battery storage by $1.1 billion. Within that total, planned investment in battery storage rises by $3 billion, while investment in solar and wind falls by $1.9 billion. Management said the overall increase is concentrated mainly in regulated power generation and transmission, reflecting the mix the company has chosen to meet expected demand.
WEC expects to finance the five-year plan with $26 billion to $27 billion from operating cash flows, $19 billion in additional debt, including hybrid instruments, and $5 billion to $5.5 billion from common equity. Operating cash flows represent more than half of expected funding, with the remaining needs split between borrowing and share issuance. These figures link the scale of investment to a disclosed funding mix spanning the next five years. In February 2026, the company had raised its capital plan for 2026–2030 by $1 billion to $37.5 billion, citing an increase in expected electricity demand. The current plan sets a higher spending level for the following period, with management reaffirming that major customer demand is the leading driver of the increase.
Alongside the plan announcement, WEC reported third-quarter 2026 net income of $389.3 million, or $1.18 per share, compared with $271.3 million and 83 cents per share a year earlier. Management attributed the quarter’s improvement to warmer-than-normal weather, execution of the capital plan and operating efficiency. The company also raised and narrowed its 2026 earnings-per-share guidance to $5.60–$5.64, compared with a previous range of $5.51–$5.61. It said the updated outlook assumes normal weather for the rest of the year, and that favorable weather and capital investments backed by major customers contributed to the guidance revision. The company is scheduled to present its dividend plan and 2027 earnings outlook in December 2026.