On April 1, 2026, we filed a request with the PSCW to increase our retail electric and natural gas rates effective January 1, 2027 and January 1, 2028. The request reflected the following:



Proposed 2027 rate increase
Electric (2)	$	86.1	million	/	6.3%
Gas	$	21.7	million	/	4.9%
Proposed 2028 rate increase (1)
Electric (2)	$	50.8	million	/	3.5%
Gas	$	6.9	million	/	1.5%
Proposed ROE	9.9%
Proposed common equity component average on a financial basis	55.0%

(1) The proposed 2028 rate increase is incremental to the currently authorized revenue plus the requested rate increase for 2027.

(2) Amounts reflect the impact to our Wisconsin retail electric operations and exclude any impacts from updated fuel costs.

The primary driver of the requested increases in electric rates is continued capital investments to transition our generation fleet from coal to renewables and natural gas-fueled generation, as well as the related investments in transmission and distribution assets. These capital investments, which will strengthen reliability and help reduce carbon emissions, have either already been approved by the PSCW or are expected to receive PSCW approval before or during 2028. Increased operation and maintenance costs, driven by higher inflation, was also a significant driver of the rate increases.

The requested increases in natural gas rates are driven by our ongoing capital investments in reliability and safety projects, as well as the impact from higher inflation on operation and maintenance costs.

We also proposed retaining our current earnings sharing mechanism, under which, if we earn above our authorized ROE: (i) we retain 100.0% of earnings for the first 15 basis points above the authorized ROE; (ii) 50.0% of the next 60 basis points is required to be refunded to ratepayers; and (iii) 100.0% of any remaining excess earnings is required to be refunded to ratepayers.