None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The abbreviations and terms set forth below are used throughout this report and have the meanings assigned to them below:

In this report, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements may be identified by reference to a future period or periods or by the use of terms such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goals," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "seeks," "should," "targets," "will," or variations of these terms.

Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding earnings, completion of capital projects, sales and customer growth, rate actions and related filings with regulatory authorities, environmental and other regulations, andincluding associated compliance costs, legal proceedings, effective tax rate,rates, pension and OPEB plans, fuel costs, sources of electric energy supply, coal and natural gas deliveries, remediation costs, climate-related matters, liquidity and capital resources, and other matters.

Forward-looking statements are subject to a number of risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include those described in Item 1A. Risk Factors and those identified below:

In this report, when we refer to "us," "we," "our," or "ours," we are referring to Wisconsin Electric Power Company andCompany. The term "utility" refers to our subsidiary, Bostco.regulated activities, while the term "non-utility" refers to our activities that are not regulated. References to "Notes" are to the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K.

We are a subsidiary of WEC Energy Group and were incorporated in the state of Wisconsin in 1896. We maintain our principal executive offices in Milwaukee, Wisconsin and serve customers in Wisconsin and served customers in the Upper Peninsula of Michigan through December 31, 2016. Effective January 1, 2017, we transferred our electric customers and distribution assets located in the Upper Peninsula of Michigan to UMERC, a stand-alone utility. UMERC became operational effective January 1, 2017. See Note 21, Regulatory Environment, for more information on UMERC.

For more information about our utility operations, including financial and geographic information, see Note 17, Segment Information, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations. For information about our business strategy, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Corporate Developments.

Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and periodic filings with the SECany amendments to those reports are made available free of charge, throughon WEC Energy Group's website, www.wecenergygroup.com, free of charge, as soon as reasonably practicable after they are filed with or furnished to the SEC.

We are the largest electric utility in the state of Wisconsin. We generate and distribute electric energy to customers located in southeastern Wisconsin (including the metropolitan Milwaukee area), east central Wisconsin, and northern Wisconsin, and serveWisconsin. We also served an iron ore mine customer, Tilden, in the Upper Peninsula of Michigan.Michigan, through March 31, 2019 when Tilden became a customer of UMERC.

The following table shows electric utilityFor information about our operating revenues including steam operations,disaggregated by customer class for the past three years:years ended December 31, 2020, 2019, and 2018, see Note 3, Operating Revenues.

Our electric energy deliveries included supply and distribution sales to retail, wholesale, and wholesale customers and distribution sales to those customers who switched to an alternative electric supplier.resale customers. In 2017,2020, retail electric revenues accounted for 86.1%93.1% of total electric operating revenues, while wholesale and resale electric revenues accounted for 10.7%2.6% of total electric operating revenues, and resale revenues accounted for 3.6% of total electric operating revenues. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Utility Segment Contribution to OperatingNet Income Attributed to Common Shareholder for information on MWh sales by customer class.

We are authorized to provide retail electric service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities. Although we no longer provide electric service in certain territories in the state of Michigan, we continue, on an interim basis, to provide service to the Tilden mine located in the Upper Peninsula of Michigan. See the discussion below under the heading "Large Electric Retail Customers."

We buy and sell wholesale electric power by participating in the MISO Energy Markets. The cost of our individual generation offered into the MISO Energy Markets compared to our competitors affects how often our generating units are dispatched and whether we buy or sell power based on our customers' needs. We provide wholesale electric service to various customers, including electric cooperatives, municipal joint action agencies, other investor-owned utilities, municipal utilities, and sell power.energy marketers. For more information, see D. Regulation.

We have a steam utility that generates, distributes, and sells steam supplied by the VAPP to customers in metropolitan Milwaukee, Wisconsin. Steam is used by customers for processing, space heating, domestic hot water, and humidification. Annual sales of steam fluctuate from year to year based on system growth and variations in weather conditions. In April 2016, we sold the MCPP steam generation and distribution assets, located in Wauwatosa, Wisconsin. MCPP primarily provided steam to the Milwaukee Regional Medical Center hospitals and other campus buildings. See Note 3, Dispositions, for more information.

Our service territory experienced slightly lower weather-normalized retail electric sales in 2017, driven by2020, as compared with 2019, due to the transferimpact of customers to UMERC and lower use per residential customer.the COVID-19 pandemic. We currently forecast retail electric sales volumes to grow between 1.0% and the associated peak demand, excluding the Tilden mine located in the Upper Peninsula of Michigan, to remain flat1.5% over the next five years, compared with 2020, assuming normal weather. The Tilden mine will no longer be a retail customer of ours once UMERC's new generation solution in the Upper Peninsula of Michigan begins commercial operation, whichElectric peak demand is expected to occur in 2019.grow between 0.5% and 1.0% over the next five years.

We provide electric utility service to a diversified base of customers in industries such industries as metals manufacturing, governmental, food products,and other manufacturing, real estate, governmental, health services, mining, retail, and education.food products.

Our electric supply strategy is to provide our customers with energy from plants using a diverse fuel mix that is expected to maintainbalance a stable, reliable, and affordable supply of electricity.electricity with environmental stewardship. Through our participation in the MISO Energy Markets, we supply a significant amount of electricity to our customers from power plants that we own or lease from We Power. We supplement our internally generated power supply with long-term power purchase agreements,PPAs, including the Point Beach power purchase agreementPPA discussed under the heading "Power Purchase Commitments," and through spot purchases in the MISO Energy Markets. We also sell excess capacitypower supply into the MISO Energy Markets when it is economical, which reduces net fuel costs by offsetting costs of purchased power. All options, including owned generation resources and purchased power opportunities, are continually evaluated on a real-time basis to select and dispatch the lowest-cost resources available to meet system load requirements.

The table below indicates our sources of electric energy supply as a percentage of sales for the three years ended December 31, as well as estimates for 2018:2021:

We meet a portion of our electric generation supply with various renewable energy resources.resources, including wind, hydroelectric, and biomass. This helps us maintain compliance with renewable energy legislation in Wisconsin and Michigan.legislation. These renewable energy resources also help us maintain diversity in our generation portfolio, which effectively serves as a price hedge against future fuel costs, and will help mitigate the risk of potential unknown costs associated with any future carbon restrictions for electric generators. ForWe are also constructing solar projects, which are discussed in more information aboutdetail below.

In December 2018, we received approval from the PSCW for the Dedicated Renewable Energy Resource pilot program, a program for customers who wish to access a large-scale renewable project located in Wisconsin that we would operate. The project will contribute toward meeting our peak demand, adding up to 150 MW of renewables to our portfolio, and help these larger customers to meet their sustainability and renewable generation, see Item 2. Properties.energy goals.

Our hydroelectric generating system consistsIn February 2021, we, along with WPS, filed an application with the PSCW for approval to accelerate up to approximately $85 million in capital investments in BSGF, to repower major components. In response to the COVID-19 pandemic, the IRS issued guidance extending the period for work to be completed on facilities in order to be eligible for PTCs if certain requirements are met. If approved, we expect to receive an additional 10 years of 13 operating plants with bothPTCs, and BSGF would be allowed to continue providing a total installedreliable, cost-effective, zero-fuel-cost, zero-emission capacity and energy resource for customers.

In February 2021, we, along with WPS and an unaffiliated utility, filed an application with the PSCW for approval to acquire and construct the Paris Solar-Battery Park, a rated capacityutility-scale solar-powered electric generating facility with a battery energy storage system. The project will be located in Kenosha County, Wisconsin and features 200 MW of 90solar generation and 110 MW as of December 31, 2017. Allbattery storage. The joint applicants propose that we would acquire a 75% ownership interest, WPS would acquire a 15% ownership interest, and the unaffiliated utility would acquire the remaining 10% ownership interest. If approved, our share of our hydroelectric facilities follow FERC guidelines and/or regulations.the cost of this project is estimated to be approximately $320 million with construction expected to begin in 2022 and completed by the end of 2023.

In December 2018, we received approval from the PSCW for the Solar Now pilot program, which is expected to add 35 MW of solar generation to our portfolio, allowing non-profit and government entities, as well as steamcommercial and industrial customers to support the paper mill's operations. Fuel for the power plant is supplied by both the paper millsite utility owned solar arrays on their property. Under this program, we have energized 13 Solar Now projects and through contracts with biomass suppliers.currently have another five under construction, together totaling more than 15 MW.

The PSCW requires us to maintain a planning reserve margin above our projected annual peak demand forecast to help ensure reliability of electric service to our customers. These planning reserve requirements are consistent with the MISO calculated planning reserve margin. In 2008, the PSCW established a 14.5% reserve margin requirement for long-term planning (planning years two through ten). For short-term planning (planning year one), the PSCW requires Wisconsin utilities to follow the planning reserve margin established by MISO. MISO has a 15.8%an 18.0% installed capacity reserve margin requirement for the planning year from June 1, 2017,2020, through May 31, 2018,2021, and a 17.1%an 18.3% installed capacity reserve margin requirement for the planning year from June 1, 2018,2021, through May 31, 2019.2022. MISO's short-term reserve margin requirements experience year-to-year fluctuations, primarily due to changes in the average generation resource mix and forced outage rate of generation within the MISO footprint.

Our retail electric rates in Wisconsin are established by the PSCW and include base amounts for fuel and purchased power costs. The electric fuel rules set by the PSCW allow us to defer, for subsequent rate recovery or refund, under- or over-collections of actual fuel and purchased power costs that exceedbeyond a 2% price variance from the costs included in the rates charged to customers. For more information about the fuel rules, see D. Regulation.

Our average fuel and purchased power costs per MWh by fuel type, including delivery costs, were as follows for the years ended December 31:

We purchase coal under long-term contracts, which helps with price stability. In the past, coal and associated transportation services were exposed to volatility in pricing due to changing domestic and world-wide demand for coal and diesel fuel. To moderate the volatility, we were givenWe have PSCW approval for a hedging program whichto moderate this volatility exposure. This program allows us to hedge, over a 36-month period, up to 75% of our potential risks related to rail transportation fuel surcharge exposure. However, due to decreased volatility over the last two years, we suspended the fuel surchargeThe results of this hedging program, when used, are reflected in 2017.the average costs of purchased power.

We purchase natural gas for our plants on the spot market from natural gas marketers, utilities, and producers, and we arrange for transportation of the natural gas to our plants. We have firm and interruptible transportation, as well as balancing and storage agreements, intended to support our plants' variable usage. We also have PSCW approval for a PSCW-approvedhedging program thatto moderate volatility related to natural gas price risk. This program allows us to hedge, over a 36-month period, up to 75% of our estimated natural gas use for electric generation in order to help manage our natural gas price risk.

We diversify the coal supply for our leased and owned electric generating facilities by purchasing coal from several mines in Wyoming and Pennsylvania, as well as from various other states. For 2018,2021, approximately 84%98% of our total projected coal requirements of 8.65.8 million tons are contracted under fixed-price contracts. See Note 19, Commitments and Contingencies, for more information on amounts of coal purchases and coal deliveries under contract.

The annual tonnage amounts contracted for the next three2021 and 2022 are set forth below. We have not entered into any coal contracts for years are as follows:after 2022.

All of our 20182021 and 2022 coal requirements are expected to be shipped by our ownedunit trains that we own or leased unit trainslease under existing transportation agreements. The unit trains transport the coal for electric generating facilities from mines in Wyoming Pennsylvania, and Montana. The coal is transported by train to our rail-served electric-generating facilities and to dock storage in Superior, Wisconsin, until needed by our lake vessel-served facility.Pennsylvania. Additional small volume agreements may also be used to supplement the normal coal supply for our facilities.

We enter into short and long-term power purchase commitments to meet a portion of our anticipated electric energy supply needs. Our power purchase commitments with unaffiliated parties for the next five years are 1,279 MW for 2021 and 1,033 MW per year for 2022 through 2025,

which exclude planning capacity purchases. This amount includesEach of these amounts include 1,033 MW per year related to a long-term power purchase agreementPPA for electricity generated by Point Beach. Due to the planned retirementAs part of WEC Energy Group's ESG Progress Plan, we retired some of our older, less efficient coal-fired generation resources, we have entered into purchase agreements toin 2018 and 2019. To procure additional planning capacity, in orderwe purchased capacity from the MISO annual auction to ensure that we maintain our compliance with planning reserve requirements as established by the PSCW MPSC, and MISO.

Our electric utility sales are impacted by seasonal factors and varying weather conditions. We sell more electricity during the summer months because of the residential cooling load. We continue to upgrade our electric distribution system, including substations, transformers, and lines, to meet the demand of our customers. OurIn 2020, our generating plants performed as expected during the warmest periods of the summer, and all power purchase commitments under firm contract were received. During this period, we did not require public appeals for conservation, and we did not interrupt or curtail service to non-firm customers who participate in load management programs.

We face competition from various entities and other forms of energy sources available to customers, including self-generation by large industrial customers and alternative energy sources. We compete with other utilities for sales to municipalities and cooperatives as well as with other utilities and marketers for wholesale electric business.

For more information on competition in our service territories,territory, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting Results, Liquidity, and Capital Resources – Industry Restructuring.Competitive Markets.

We are authorized to provide retail natural gas distribution service in designated territories in the state of Wisconsin, as established by indeterminate permits and boundary agreements with other utilities. We also transport customer-owned natural gas. We operate in three distinct service areas including west and south of the City of Milwaukee, the Appleton area, and areas within Iron and Vilas Counties, Wisconsin.

We provide natural gas utility service to a diversified base ofresidential, commercial and industrial, customers who are largely within our electric service territory.and transportation customers. Major industries served include real estate, restaurants, food products, governmental, education, restaurants, paper mills, and food products.metals manufacturing. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Utility Segment Contribution to Net Income Attributed to Common Shareholder for information on natural gas sales volumes by customer class.

Our service territory experienced growth inlower weather-normalized retail natural gas deliveries (excluding natural gas deliveries for electric generation) in 20172020 as compared to 2019 due to positive customer growth, an improving economy, and favorable natural gas prices.the impact of the COVID-19 pandemic. We currently forecast retail natural gas delivery volumes to grow at a rate between flat1.0% and 0.5%1.3% over the next five years, compared to 2020, assuming normal weather. The forecast projects declining average usage per customer partially offsetting positive customer growth.

We have been able to meet our contractual obligations with both our suppliers and our customers. For more information on our natural gas utility supply and transportation contracts, see Note 19, Commitments and Contingencies.

The interstate pipelines serving Wisconsin originate in major natural gas producing areas of North America: the Oklahoma and Texas basins, western Canada, and the Rocky Mountains. We have contracted for long-term firm capacity from a number of these sources. This strategy reflects management's belief that overall supply security is enhanced by geographic diversification of the supply portfolio.

Due to the daily and seasonal variations in natural gas usage in Wisconsin, we have also contracted for substantial underground storage capacity, primarily in Michigan. We have entered into a long-term service agreement for natural gas storage with a wholly owned subsidiary of Bluewater. Bluewater, a wholly owned subsidiary of WEC Energy Group, owns natural gas storage facilities in Michigan and provides approximately one-third of our current storage needs. We target storage inventory levels at approximately 40% of forecasted winter demand;demand for November through March is considered the winter season. Storage capacity, along with ourMarch. Diversity of natural gas purchase contracts,supply enables us to manage significant changes in daily demand and to optimize our overall natural gas supply and capacity costs. We generally inject natural gas into storage during the spring and summer months when demand is lower and withdraw it in the winter months.

We hold daily transportation and storage capacity entitlements with interstate pipeline companies as well as other service providers under varied-length long-term contracts.

To ensure a reliable supply of natural gas during peak winter conditions, we have liquefied natural gasLNG and propane facilities located within our distribution system. These facilities are typically utilized during extreme demand conditions to ensure reliable supply to our customers.

Combined with our storage needs for ourcapability, management believes that the volume of natural gas utility operations. We have entered into a long-term service agreementunder contract is sufficient to takemeet our forecasted firm peak-day and seasonal demand. Our forecasted design peak-day throughput is 10.4 million therms for the allocated storage. See Note 2, Acquisitions, for more information2020 through 2021 heating season. Our peak daily send-out during 2020 was 6.4 million therms on this transaction.February 13, 2020.

We have contracts for firm supplies with terms of 3–5 months with suppliers for natural gas acquired in the Chicago, Illinois market hub and in the producing areas discussed above. The pricing of the term contracts is based upon first of the month indices.

We expect to continue to make natural gas purchases in the spot market as price and other circumstances dictate. We have supply relationships with a number of sellers from whom we purchase natural gas in the spot market.

We have PSCW approval to hedge up to 60% of planned winter demand and up to 15% of planned summer demand using a mix of NYMEX-based natural gas options and futures contracts. This approval allows us to pass 100% of the hedging costs (premiums, brokerage fees and losses) and proceeds (gains) to customers through our GCRM. Hedge targets (volumes) are provided annually to the PSCW as part of our three-year natural gas supply plan and risk management filing.

To the extent that opportunities develop and physical supply operating plans are supportive, we also have PSCW approval to utilize NYMEX-based natural gas derivatives to capture favorable forward market price differentials. That approval provides for 100% of the related proceeds to accrue to our GCRM.

Since the majority of our customers use natural gas for heating, customer use is sensitive to weather and is generally higher during the winter months. Accordingly, we are subject to some variations in earnings and working capital throughout the year as a result of changes in weather.

Our working capital needs are met by cash generated from operations and debt (both long-term and short-term). The seasonality of natural gas revenues causes the timing of cash collections to be concentrated from January through June. A portion of our winter natural gas supply needs is typically purchased and stored from April through November. Also, planned capital spending on our natural gas distribution facilities is concentrated in April through November. Because of these timing differences, the cash flow from customers is typically supplemented with temporary increases in short-term borrowings (from external sources) during the late summer and fall. Short-term debt is typically reduced over the January through June period.

Competition inWe face varying degrees exists between natural gasof competition from other entities and other forms of energy available to consumers. A number of ourMany large commercial and industrial customers are dual-fuel customers that are equippedhave the ability to switch between natural gas and alternative fuels. We are allowedIn addition, all of our customers have the opportunity to offer lower-pricedchoose a natural gas sales and transportation services to dual-fuel customers. Undersupplier other than us. We offer natural gas transportation agreements,services for customers that elect to purchase natural gas directly from natural gas marketers and arrange with interstate pipelines and usa third-party supplier. We continue to have the natural gas transportedearn distribution revenues from these transportation customers for their use of our distribution systems to their facilities. We earn substantially the same operating income whether we sell and transport natural gas to customers or only transport their natural gas.

FederalFor more information on competition in our service territory, see Item 7. Management's Discussion and state regulators continue to implement policies to bring more competition to the natural gas industry. While the natural gas utility distribution function is expected to remain a highly regulated, monopoly function, the saleAnalysis of the natural gas commodityFinancial Condition and related services are expected to remain subject to competition from third parties for large commercialResults of Operations – Factors Affecting Results, Liquidity, and industrial customers.Capital Resources – Competitive Markets.

Our other segment includesincluded Bostco, our non-utility subsidiary that was originally formed to develop and invest in real estate. In March 2017, we sold substantially all of the remaining real estate holdingsassets of Bostco, locatedand, in downtown Milwaukee, Wisconsin, which included retail, office, and residential space. See Note 3, Dispositions, for more information.October 2018, Bostco no longer has significant operations.was dissolved.

In addition to the specific regulations noted below, we are also subject to various other regulations, which primarily consist of regulations, where applicable, of the EPA, the WDNR, the MDEQ, the Michigan Department of Natural Resources, and the United States Army Corps of Engineers.

Our retail electric, natural gas, and steam rates are regulated by the various commissions shownPSCW, and the FERC regulates our wholesale electric rates. Decisions by these regulators can significantly impact our liquidity, financial condition, and results of operations. The following table compares our utility operating revenues by regulatory jurisdiction for each of the three years ended December 31:

The PSCW has general supervisory and regulatory powers over public utilities in their respective jurisdictions.its jurisdiction including, but not limited to, approval of retail utility rates and standards of service, security issuances, mergers, affiliate transactions, location and construction of electric generating units and natural gas facilities, and certain other additions and extensions to utility facilities.

Embedded within our electric rates is an amount to recover fuel and purchased power costs. The Wisconsin retail fuel rules require us to defer, for subsequent rate recovery or refund, any under-collection or over-collection of fuel and purchased power costs that are outside of our symmetrical fuel cost tolerance, which the PSCW typically sets at plus or minus 2% of our approved fuel and purchased power cost plan. Our deferred fuel and purchased power costs are subject to an excess revenues test. If our ROE in a given year exceeds the ROE authorized by the PSCW, the recovery of under-collected fuel and purchased power costs would be reduced by the amount by which our return exceeds the authorized amount. Prudently incurred fuel and purchased power costs are recovered dollar-for-dollar from our Michigan retail electric customer and our wholesale electric customers.

Our natural gas utility operates under a GCRM as approved by the PSCW. Generally, the GCRM allows for a dollar-for-dollar recovery of prudently incurred natural gas costs.

We file periodic requests with the PSCW to request changes in retail rates. Our rate requests are based on forward looking test years, which reflect additions to infrastructure and changes in costs incurred or expected to be incurred. For information on how our rates are set,regulatory proceedings, see Note 21, Regulatory Environment. Orders from our respective regulatorsthe PSCW can be viewed at the following websites:

The following table comparesFERC regulates our utility operating revenues by regulatory jurisdiction for eachwholesale sales of electric energy, capacity, and ancillary services. We have received market-based rate authority from the FERC. Market-based rate authority allows wholesale electric sales to be made in the MISO market and directly to third parties based on the negotiated market value of the three years ended December 31:transaction. We also make wholesale sales pursuant to cost-based formula rates. Cost-based formula rates provide for recovery of our costs and an approved rate of return. The predetermined formula is initially based on our expenses from the previous year, but is eventually trued up to reflect actual, current-year costs.

In connection with its status as a FERC approvedFERC-approved RTO, MISO developedoperates bid-based energy markets, which were implemented on April 1, 2005. In January 2009,markets. MISO enhanced the energy market by including an ancillary services market. In the MISO ancillary services market, we buy/sell regulationis responsible for monitoring and contingency reserves from/ensuring equal access to the market. The MISO ancillary services market has been able to reduce overall ancillary services costselectric transmission system in the MISO footprint, and has enabled MISO to assume significant balancing area responsibilities such as frequency control and disturbance control.its footprint.

In MISO, base transmission costs are currently being paid by load-serving entities located in the service territories of each MISO transmission owner. The FERC has previously confirmed the use of the current transmission cost allocation methodology. Certain additional costs for new transmission projects are allocated throughout the MISO footprint.

As part of MISO, a market-based platform was developedis used for valuing transmission congestion premised upon thean LMP system that has been implemented in certain northeastern and mid-Atlantic states.system. The LMP system includes the ability to hedge transmission congestion costs through ARRs and FTRs. ARRs are allocated to market participants by MISO, and FTRs are purchased through auctions. A new allocation and auction were completed for the period of June 1, 2017,2020, through May 31, 2018.2021. The resulting ARR valuationallocation and the secured FTRs are expected to mitigate our transmission congestion risk for that period.