2Q26 Preview: Expansion Visibility Pending on VLC

Research evidence excerpt

2Q26 Preview: Expansion Visibility Pending on VLC

S, we

Price Performance Exchange-NYSEmaintain our EW rating and our $117/sh PT.

52 Week range USD 119.62-102.51

2Q Quarterly Results: We estimate WEC quarterly results will be $0.80/sh, not far from

consensus $0.82/sh. Our expectation is for WEC to discuss the VLC request for reconsideration

filed by WEC, updates on WEC rate case as well as Peoples Gas rate case in Illinois, as well as

progress on the Vantage and Microsoft data center projects.

Focus Items & Catalyst Calendar

VLC Tariff: Request for Reconsideration On Financial Support Requirements (Collateral): Source: IDC

On June 10th WEC & ORCL filed a request for reconsideration, which is primarily focused on the Link to Barclays Live for interactive charting

credit protections that were implemented by the commission on large load customers. The

credit protections are punitive to customers like Oracle, which is currently in the process of North America Power & Utilities

building the Vantage data center in Port Washington, WI. ORCL sees ~$100mn/yr of costs from Nicholas Campanella

this decision and also filed a separate lawsuit in Ozaukee County Court on June 19th seeking a +1 212 526 6123

judicial review of the ruling. Oracle and other data center operators do not oppose the idea that nicholas.campanella@barclays.com

hyperscalers should pay their fair share, but they highlighted how punitive the implementation BCI, US

of these creditworthiness requirements are. Frankly, we have been negatively surprised by this Michael Brown

given the overall costs and commitments already made to the state, the size for these +1 212 526 4885

requirements relative to the investment, plus messaging since the VLC tariff was approved. We michael.brown3@barclays.com

BCI, US