2018 Edison Electric Institute and American Gas Association. ESG/Sustainability Reporting Template

Transcription

1 018 Edison Electric Institute and American Gas Association ESG/Sustainability Reporting Template

2 EEI and AGA ESG/Sustainability Reporting Template Section 1: Qualitative Information Based in Milwaukee, Wisconsin, WEC Energy Group is one of the nation s premier energy companies, with subsidiaries serving energy customers in Wisconsin, Illinois, Minnesota and Michigan. We are a member of the American Gas Association (AGA) and Edison Electric Institute (EEI). We are participating in an initiative led by these organizations to promote consistency and transparency in sustainability reporting. This template is designed to make environmental, social and governance (ESG) metrics and information more accessible to investors and comparable across the electric and natural gas sectors. Additional information on our ESG-related efforts can be found in our corporate responsibility reports, available on the website ( ESG/Sustainability Governance Sustainability is integrated into governance policies and practices across. To support an enduring enterprise, we manage shortand long-term risks and account for economic, environmental and social factors in our decisionmaking. Our board of directors oversees our risk environment and associated management practices. Our CEO regularly reports to the board on risk-related matters. The board and its committees routinely meet throughout the year to discuss these matters, and receives regular briefings from management on specific areas of risk. The board consists of five standing committees: Audit and Oversight, Compensation, Executive, Finance, and Corporate Governance. The Audit and Oversight Committee hears reports from management on our major risk exposures in regulatory compliance, environmental, legal/litigation, technology security (cybersecurity) and ethical conduct, as well as steps taken to monitor and control such exposures. The Finance Committee reviews our financial risk assessment and risk management policies, and provides oversight of insurance matters to support the proper function of our risk management program. Our Corporate Governance Guidelines provide that the board of directors should consist of at least a two-thirds majority of independent directors. As of Feb., 019, 1 of 15 directors were independent. To foster an enterprise-wide approach to identifying and managing risk, we have established an Enterprise Risk Steering Committee composed of senior-level executives. The committee regularly reviews our key risk areas and provides input to the development and implementation of effective compliance and risk management practices, including external audits. Social responsibility Our board of directors has oversight responsibility for human rights-related policies, including the Code of Business Conduct, while our senior vice president of human resources and organizational effectiveness and other senior management are responsible for the development and implementation of these policies. We educate all new employees on our Code of Business Conduct policies, which cover relevant aspects of human rights issues. All employees are trained on ethical standards, including diversity, anti-harassment and protection of consumer information. Environmental responsibility Our governance structure and practices support a strategic focus on environmental issues. Our CEO, in collaboration with our senior leadership, has specific responsibility for climate change-related strategies. The vice president environmental for the utility subsidiaries, in collaboration with the director air quality, manages tactical approaches to implement our climate change strategies and EEI and AGA ESG/Sustainability Reporting Template 1

3 reports to the board of directors on a quarterly basis. To promote collaboration across the enterprise on climate-related issues, our Greenhouse Gas Executive Committee meets on a quarterly basis. The committee includes company vice presidents and representatives of the Environmental, Power Generation, Wholesale Energy and Fuels, Corporate Governance, and Corporate Communications and Investor Relations areas. Responsibility for environmental compliance lies within our operating units and the Environmental department. Any significant noncompliance is reported to senior management. The quarterly report to the Audit and Oversight Committee includes the status of environmental compliance and any significant findings of noncompliance. Additional resources Management team Board of directors Audit and Oversight Committee Charter Code of Business Conduct ESG/Sustainability Strategy Business environment Our operations are more than 99 percent regulated, covering diverse service areas in the Midwestern United States, from the city of Chicago to the Upper Peninsula of Michigan. This regional diversity requires us to adapt to and plan for a variety of environmental, economic and regulatory factors. Storage is an important aspect of our natural gas business. Our natural gas storage facilities in Michigan and Illinois allow our companies to purchase supplies in summer months when prices are lower, improving the reliability and affordability of natural gas service during the region s long heating season. We Energies and Wisconsin Public Service, our electric and natural gas subsidiaries, follow a comprehensive approach to address electricity supply and reliability issues for their customers in a way that considers both the economy and the environment. Our reshaping of our generation fleet will balance reliability and customer cost with environmental stewardship. Taken as a whole, this plan should reduce costs to customers, preserve fuel diversity and reduce greenhouse gas (GHG) carbon emissions. Evolving business conditions have impacted our fleet reshaping plan. Relatively flat electricity demand growth in Wisconsin has combined with changes in natural gas, coal and renewable energy economics over the past five years to cause solar generation to increase significantly in efficiency and affordability. These factors have made solar a cost-effective option for our Wisconsin electric customers an option that also fits well with our summer demand curve. Meanwhile, in the Upper Peninsula of Michigan, the need for a long-term generation solution that is reliable, efficient and flexible led us to invest in modular natural gasfueled generation. Our companies evaluate environmental impacts and environmental regulations, including regulation of GHG emissions, in all facets of their strategic business planning. Current GHG emissions regulation, as well future legislation or regulation that may be adopted, carries with it a wide range of possible effects on our energy business; therefore, we strive for the flexibility to address this variety of potential outcomes while ensuring a secure, lowcost and reliable supply of fuel for generating needs. Our electric energy companies build flexibility into fuel supply and transportation contracts to address climate change regulation. Risks and opportunities Our processes for identifying, assessing and managing climate-related and other environmental issues are integrated into multidisciplinary, companywide risk identification, assessment and management processes. We continuously monitor our assets as well as the legislative, regulatory and legal developments in areas of major environmental risks and opportunities. An example is the risk that legislative or regulatory EEI and AGA ESG/Sustainability Reporting Template

4 developments could affect the economics of operating some of our generating facilities. We are members of, and actively participate in, several industry organizations (such as the American Gas Association, EEI, Utility Air Regulatory Group, Utility Water Act Group and Utility Solid Waste Activities Group) that are involved in the legislative and regulatory process. As members of the Electric Power Research Institute (EPRI), we leverage EPRI s research capabilities to pursue technical and policy opportunities in electricity generation and distribution innovation that address reliability, environmental and other risks. Current EPRI research projects will help us assess economic and technological trends and conduct scenario analysis for our companies, evaluating our potential GHG reduction trajectories in the context of the Paris Agreement s goal of limiting future global temperature rise to degrees Celsius. EPRI research is also expected to identify cost-effective and resilient strategies to produce and use clean energy to realize a greater potential for efficient electrification and GHG emission reduction for our electric companies. Our financial performance depends on the successful operation of our electric generation and natural gas and electric distribution facilities. The operation of these facilities involves many physical risks, including the breakdown or failure of equipment or processes. Potential breakdown or failure may occur due to severe weather, catastrophic events, significant changes in water levels in waterways, or operating limitations that may be imposed by environmental or other regulatory requirements. Our results of operations and cash flows also can be affected by weather conditions, which influence energy demand. To manage equipment-related risks and protect the safety of our employees and the public, we monitor natural gas and electric distribution lines. We complete risk analysis on our natural gas network annually and identify high-consequence areas. We have made significant reliability-related investments in recent years, and plan to continue strengthening our generation fleet and distribution networks. For example, the company created an equipment reliability index based on industry best practices to gauge our equipment reliability program performance, identify opportunities to improve equipment reliability, and gain the associated cost and performance benefits. Our natural gas infrastructure upgrade programs to improve safety and reliability have the additional benefit of reducing releases of natural gas to the environment. As a partner in the U.S. Environmental Protection Agency s (EPA) Natural Gas STAR Methane Challenge Program, Peoples Gas is replacing cast and ductile iron natural gas mains with modern polyethylene pipes at an annual rate of at least percent for five years beginning in 017. The pipe upgrades are part of the company s System Modernization Program (SMP), a focused effort to replace,350 miles or about half of Peoples Gas natural gas delivery system. We further address the reputational and safety risks of our industry by proactively sharing electric and natural gas safety information with a variety of audiences, including students, teachers, families, contractors and first responders. On the demand side, we offer options to our customers that advance energy efficiency and affordability. We inform customers about home energy assistance through federal and state funding, and we offer weatherization services for some customers on our low-income pay plans. Programs for business customers include energy management services to improve efficiency in their operations. Two green pricing programs in Wisconsin allow customers to purchase specified amounts of electricity from renewable sources. Plans and progress Our companies environmental performance effectively demonstrates how environmental issues are integrated into strategic planning. In 000, we began to strategically reshape our portfolio of electric generation facilities, resulting in reduced environmental impact and improved environmental performance. Air quality control systems and other measures at our facilities have resulted in EEI and AGA ESG/Sustainability Reporting Template 3

5 combined sulfur dioxide, nitrogen oxide and mercury emissions reductions greater than 80 percent when compared to 000 emissions. We believe that our multi-emission reduction strategy will continue to achieve greater environmental benefit for lower cost. Since 011, when the SMP began, Peoples Gas has replaced 360 miles of its older natural gas mains and installed an additional 90 miles of mains, allowing for more retirements or replacements as the project continues. Reducing GHG emissions continues to be an integral component of our strategic planning process, demonstrating commitment to effective environmental stewardship while fulfilling an obligation to provide reliable, affordable energy for customers. As the regulation of GHG emissions takes shape, our plan is to work with our industry partners, environmental groups and the State of Wisconsin with a goal of reducing carbon dioxide (CO ) emissions by approximately 40 percent below 005 levels by 030. In addition, we have set a long-term goal to reduce CO emissions by approximately 80 percent below 005 levels by 050. Additional resources Investor information 018 Form 10-K We Energies (Wisconsin electric and natural gas subsidiary) Wisconsin Public Service (Wisconsin electric and natural gas subsidiary) Peoples Gas (Illinois natural gas subsidiary) North Shore Gas (Illinois natural gas subsidiary) Minnesota Energy Resources (Minnesota natural gas subsidiary) Michigan Gas Utilities (Michigan natural gas subsidiary) Upper Michigan Energy Resources (Michigan electric and natural gas subsidiary) Between 000 and 018, our companies approximately,500 megawatts of coal-fueled generation from their fleets by retiring them or converting them to natural gas-fueled generation. We plan to retire an additional 350 MW of coalfueled generation in 019. We have filed for approval to own our first 00 MW of solar generation, and two approved We Energies solar pilot programs may add up to 185 MW of generation. Additional zero-carbon generation projects are being actively developed. EEI and AGA ESG/Sustainability Reporting Template 4

6 ESG/Sustainability Template Section : Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. We Energies (Wisconsin Electric Power Company, Wisconsin Gas LLC) and Wisconsin Public Service Corporation Vertically integrated, electric generation and distribution, and natural gas distribution Wisconsin and the Upper Peninsula of Michigan State(s) with RPS Programs: Wisconsin, Michigan Wisconsin - regulated, Michigan - partly deregulated (Michigan allows 10 percent of the state s electric usage to be served by deregulated energy marketers) Report Date: 8/15/018 Baseline Last Year Current Year Next Year Future Year Comments, Links, Additional Information, and Notes Portfolio Owned Nameplate Generation Capacity at end of year (MW) 10,096 10,096 8,896 Coal 5, ,555 4,355 Natural Gas 3, ,846 3,846 Nuclear Petroleum Total Renewable Energy Resources Biomass/Biogas Geothermal Hydroelectric Solar Wind Other corrected to include all relevant units Owned Net Generation for the data year (MWh) 35,856,000 35,838, Corporate Responsibility Report, page 30 Coal 3,467,000 4,484,000 Natural Gas 10,367,000 9,30,000 Nuclear 0 0 Petroleum 0 0 Total Renewable Energy Resources,0,000,05,000 Biomass/Biogas 103,000 85,000 Geothermal 0 0 Hydroelectric 864, ,000 Solar 0 0 Wind 1,055,000 1,081,000 Other 0 0 Purchased Net Generation for the data year (MWh) 15,49,000 14,639,000 Coal 0 0 Natural Gas 876, ,000 Nuclear 9,008,000 8,950,000 Petroleum 0 0 Total Renewable Energy Resources 1,419,000 1,475,000 Other 4,189,000 3,566,000 Total generation plus purchases (MWh) 51,348,000 50,477,000 Coal 3,467,000 4,484,000 Gas 11,43,000 9,950,000 Non-emitting 1,449,000 1,477,000 Other purchases 4,189,000 3,566,000 Investing in the Future: Capital Expenditures, Energy Efficiency (EE), and Smart Meters Total Annual Capital Expenditures (nominal dollars) $ 1,43,700,000 $,360,000,000 investor presentation, June 018, page 11 Incremental Annual Electricity Savings from EE Measures (MWh) 349,664 39,981 Incremental Annual Investment in Electric EE Programs (nominal dollars) $ 49,70,800 $ 50,86,000 Percent of Total Electric Customers with Smart Meters (at end of year) 13% 9% Retail Electric Customer Count (at end of year) Commercial/Industrial 175, , K, page 5 Residential 1,41, ,431,400 corrected for an amount included twice 3 revised to be electric customers only Emissions GHG Emissions: Carbon Dioxide (CO) and Carbon Dioxide Equivalent (COe) Owned Generation Carbon Dioxide (CO) Total Owned Generation CO Emissions (MT) 8,9,000 9,65,000 Total Owned Generation CO Emissions Intensity (MT/Net MWh) Carbon Dioxide Equivalent (COe) Total Owned Generation COe Emissions (MT) 9,058,000 9,794,000 Total Owned Generation COe Emissions Intensity (MT/Net MWh) Purchased Power Carbon Dioxide (CO) Total Purchased Generation CO Emissions (MT) 4,986,000 3,540,000 Total Purchased Generation CO Emissions Intensity (MT/Net MWh) Carbon Dioxide Equivalent (COe) Total Purchased Generation COe Emissions (MT) 4,986,000 3,540,000 Total Purchased Generation COe Emissions Intensity (MT/Net MWh) Owned Generation + Purchased Power Carbon Dioxide (CO) Total Owned + Purchased Generation CO Emissions (MT) 35,700,000 33,908,000 33,19,000 7,00,000 Goal: 80% below 005 by 050 Total Owned + Purchased Generation CO Emissions Intensity (MT/Net MWh) Carbon Dioxide Equivalent (COe) Total Owned + Purchased Generation COe Emissions (MT) 34,044,000 33,334,000 Total Owned + Purchased Generation COe Emissions Intensity (MT/Net MWh) Non-Generation COe Emissions Fugitive COe emissions of sulfur hexafluoride (MT) Fugitive COe emissions from natural gas distribution (MT) 400, ,000 Nitrogen Oxide (NOx), Sulfur Dioxide (SO), Mercury (Hg) Generation basis for calculation Fossil Nitrogen Oxide (NOx) Edison Electric Institute. All rights reserved.

7 ESG/Sustainability Template Section : Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. We Energies (Wisconsin Electric Power Company, Wisconsin Gas LLC) and Wisconsin Public Service Corporation Vertically integrated, electric generation and distribution, and natural gas distribution Wisconsin and the Upper Peninsula of Michigan State(s) with RPS Programs: Wisconsin, Michigan Wisconsin - regulated, Michigan - partly deregulated (Michigan allows 10 percent of the state s electric usage to be served by deregulated energy marketers) Report Date: 8/15/018 Baseline Last Year Current Year Next Year Future Year Comments, Links, Additional Information, and Notes Total NOx Emissions (MT) 11,804 11,045 Total NOx Emissions Intensity (MT/Net MWh) Sulfur Dioxide (SO) Total SO Emissions (MT) 10,73 8,797 Total SO Emissions Intensity (MT/Net MWh) Mercury (Hg) Total Hg Emissions (kg) Total Hg Emissions Intensity (kg/net MWh) Edison Electric Institute. All rights reserved. 6

8 ESG/Sustainability Template Section : Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. We Energies (Wisconsin Electric Power Company, Wisconsin Gas LLC) and Wisconsin Public Service Corporation Vertically integrated, electric generation and distribution, and natural gas distribution Wisconsin and the Upper Peninsula of Michigan State(s) with RPS Programs: Wisconsin, Michigan Wisconsin - regulated, Michigan - partly deregulated (Michigan allows 10 percent of the state s electric usage to be served by deregulated energy marketers) Report Date: 8/15/018 Baseline Last Year Current Year Next Year Future Year Comments, Links, Additional Information, and Notes Resources Data in the Human Resources section reflect totals for WEC Energy Human Resources Group, including natural gas-only subsidiaries. Total Number of Employees 8,170 8,19 10-K, page Total Number on Board of Directors/Trustees Total Women on Board of Directors/Trustees 3 3 Total Minorities on Board of Directors/Trustees Employee Safety Metrics Recordable Incident Rate Lost-time Case Rate Days Away, Restricted, and Transfer (DART) Rate Work-related Fatalities 0 0 Fresh Water Resources Water Withdrawals - Consumptive (Billions of Liters/Net MWh) Water Withdrawals - Non-Consumptive (Billions of Liters/Net MWh of fossil generation) Waste Products Amount of Hazardous Waste Manifested for Disposal (metric tons) Percent of Coal Combustion Products Beneficially Used 100% 95% 018 Edison Electric Institute. All rights reserved. 7

9 natural gas distribution Wisconsin, Illinois, Minnesota and Michigan regulated Note: Data from from operating companies is rolled up to the corporate level. Report Date: data year 017 Year Ref. No. Refer to the "Definitions" column for more information on each metric. 017 Definitions Comments, Additional Information NATURAL GAS DISTRIBUTION AGA Voluntary Sustainability Metrics: Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. American Gas Association. All rights reserved. 1 METHANE EMISSIONS AND MITIGATION FROM DISTRIBUTION MAINS 1.1 Number of Gas Distribution Customers,856,000 Total natural gas customers of Distribution Mains in Service Plastic (miles) 5,011 Distribution mains in service for all WEC Energy 1.. Cathodically Protected Steel - Bare & Coated (miles) 10,59 Group natural gas distribution companies that are 1..3 Unprotected Steel - Bare & Coated (miles) 1 above the LDC Facility reporting threshold for EPA's 1..4 Cast Iron / Wrought Iron - without upgrades (miles) 1, C.F.R. 98, Subpart W reporting rule. 1.3 Plan/Commitment to Replace / Upgrade Remaining Miles of Distribution Mains (# years to complete) Unprotected Steel (Bare & Coated) (# years to complete) 1.3. Cast Iron / Wrought Iron (# years to complete) See metrics for Peoples Gas.1 Distribution COe Fugitive Emissions COe Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 37,570 Estimated leaks of methane emissions converted to carbon dioxide equivalents for Subpart W reporting companies. Natural Gas Throughput from Gas Distribution Operations in thousands of scf 497,891,80 Throughput for Subpart W reporting companies.3 COe Fugitive Methane Emissions Rate (metric tons per thousands scf of Throughput) divided by. NATURAL GAS TRANSMISSION & STORAGE Transmission Pipelines, Blow Down Volumes, and Fugitive Emissions Total Miles of Transmission Pipeline Operated by gas utility (miles) 1.. Volume of Transmission Pipeline Blow Down Emissions - outside storage and compression facilities: scf natural gas metric tons COe 1.3 Underground Natural Gas Storage Emissions 30,545 Total station 1.3. Storage Compressor Station Emissions (metric tons COe) 8,449 Total station less wellhead emissions Storage Facility Wellhead Component Fugitive Emissions (metric tons of COe),096 Wellhead emissions.1 COe EMISSIONS FOR TRANSMISSION AND STORAGE COMPRESSION COe Emissions for Transmission Pipelines (metric tons). COe Emissions for Storage Facilities (metric tons) 74,343 CO emissions from combustion plus methane emissions from leaks, converted to COe Some companies are not included because their emissions fall below the US EPA's Subpart W reporting threshold. Some companies are not included because their emissions fall below the US EPA's Subpart W reporting threshold. Includes emissions from section 1.3 above CONVENTIONAL AIR EMISSIONS FROM TRANSMISSION AND STORAGE COMPRESSION Emissions reported for all permitted sources (minor or major) NOx ( metric tons per year) 356 From storage compression 3.1. VOC (metric tons per year) 69 From storage compression 8

10 Peoples Gas natural gas distribution Illinois regulated Note: Data from from operating companies is rolled up to the corporate level. Report Date: data year 017 Year Ref. No. Refer to the "Definitions" column for more information on each metric. 017 Definitions Comments, Additional Information NATURAL GAS DISTRIBUTION AGA Voluntary Sustainability Metrics: Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. American Gas Association. All rights reserved METHANE EMISSIONS AND MITIGATION FROM DISTRIBUTION MAINS Number of Gas Distribution Customers 843, Distribution Mains in Service Plastic (miles) 1, Cathodically Protected Steel - Bare & Coated (miles) 1, Unprotected Steel - Bare & Coated (miles) Cast Iron / Wrought Iron - without upgrades (miles) 1, Plan/Commitment to Replace / Upgrade Remaining Miles of Distribution Mains (# years to complete) Unprotected Steel (Bare & Coated) (# years total to complete) Cast Iron / Wrought Iron (# years total to complete) 5.1 Distribution COe Fugitive Emissions COe Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 18,67. Natural Gas Throughput from Gas Distribution Operations in thousands of scf 158,579,603.3 COe Fugitive Methane Emissions Rate (metric tons per thousands scf of Throughput) divided by. The company's commitment under the US EPA's Methane Challenge Program is to replace its remaining iron natural gas mains at an annual rate of at least percent for five years, beginning in 017. NATURAL GAS TRANSMISSION & STORAGE Transmission Pipelines, Blow Down Volumes, and Fugitive Emissions Total Miles of Transmission Pipeline Operated by gas utility (miles) 1.. Volume of Transmission Pipeline Blow Down Emissions - outside storage and compression facilities: scf natural gas metric tons COe 1.3 Underground Natural Gas Storage Emissions 30,545 Total station 1.3. Storage Compressor Station Emissions (metric tons COe) 8,449 Total station less wellhead emissions Storage Facility Wellhead Component Fugitive Emissions (metric tons COe),096 Wellhead emissions.1 COe EMISSIONS FOR TRANSMISSION AND STORAGE COMPRESSION COe Emissions for Transmission Pipelines (metric tons). COe Emissions for Storage Facilities (metric tons) 74,343 CO emissions from combustion plus methane emissions from leaks, converted to COe Includes emissions from section 1.3 above CONVENTIONAL AIR EMISSIONS FROM TRANSMISSION AND STORAGE COMPRESSION Emissions reported for all permitted sources (minor or major) NOx ( metric tons per year) 356 From storage compression 3.1. VOC (metric tons per year) 69 From storage compression 9

11 Wisconsin Electric Power Company - Gas Operations natural gas distribution Wisconsin regulated Note: Data from from operating companies is rolled up to the corporate level. Report Date: data year 017 Year Ref. No. Refer to the "Definitions" column for more information on each metric. 017 Definitions Comments, Additional Information NATURAL GAS DISTRIBUTION AGA Voluntary Sustainability Metrics: Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. American Gas Association. All rights reserved METHANE EMISSIONS AND MITIGATION FROM DISTRIBUTION MAINS Number of Gas Distribution Customers 1,118,000 Total for We Energies Distribution Mains in Service Plastic (miles) 8, Cathodically Protected Steel - Bare & Coated (miles), Unprotected Steel - Bare & Coated (miles) Cast Iron / Wrought Iron - without upgrades (miles) Plan/Commitment to Replace / Upgrade Remaining Miles of Distribution Mains (# years to complete) Unprotected Steel (Bare & Coated) (# years to complete) 1.3. Cast Iron / Wrought Iron (# years to complete).1 Distribution COe Fugitive Emissions COe Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 49,956. Natural Gas Throughput from Gas Distribution Operations in thousands of scf 84,0,846.3 COe Fugitive Methane Emissions Rate (metric tons per thousands scf of Throughput) divided by. We Energies = Wisconsin Electric Gas Operations + Wisconsin Gas LLC NATURAL GAS TRANSMISSION & STORAGE - not applicable 10

12 Wisconsin Gas Company natural gas distribution Wisconsin regulated Note: Data from from operating companies is rolled up to the corporate level. Report Date: data year 017 Year Ref. No. Refer to the "Definitions" column for more information on each metric. 017 Definitions Comments, Additional Information NATURAL GAS DISTRIBUTION AGA Voluntary Sustainability Metrics: Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. American Gas Association. All rights reserved METHANE EMISSIONS AND MITIGATION FROM DISTRIBUTION MAINS Number of Gas Distribution Customers 1,118,000 Total for We Energies Distribution Mains in Service Plastic (miles) 8, Cathodically Protected Steel - Bare & Coated (miles) 4, Unprotected Steel - Bare & Coated (miles) Cast Iron / Wrought Iron - without upgrades (miles) Plan/Commitment to Replace / Upgrade Remaining Miles of Distribution Mains (# years to complete) Unprotected Steel (Bare & Coated) (# years to complete) 1.3. Cast Iron / Wrought Iron (# years to complete).1 Distribution COe Fugitive Emissions COe Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 58,4. Natural Gas Throughput from Gas Distribution Operations in thousands of scf 166,998,81.3 COe Fugitive Methane Emissions Rate (metric tons per thousands scf of Throughput) divided by. We Energies = Wisconsin Electric Gas Operations + Wisconsin Gas LLC NATURAL GAS TRANSMISSION & STORAGE - not applicable 11

13 Wisconsin Public Service Corporation natural gas distribution Wisconsin regulated Note: Data from from operating companies is rolled up to the corporate level. Report Date: data year 017 Year Ref. No. Refer to the "Definitions" column for more information on each metric. 017 Definitions Comments, Additional Information NATURAL GAS DISTRIBUTION METHANE EMISSIONS AND MITIGATION FROM DISTRIBUTION MAINS Number of Gas Distribution Customers 35, Distribution Mains in Service Plastic (miles) 6, Cathodically Protected Steel - Bare & Coated (miles) 1, Unprotected Steel - Bare & Coated (miles) Cast Iron / Wrought Iron - without upgrades (miles) Plan/Commitment to Replace / Upgrade Remaining Miles of Distribution Mains (# years to complete) Unprotected Steel (Bare & Coated) (# years to complete) 1.3. Cast Iron / Wrought Iron (# years to complete).1 Distribution COe Fugitive Emissions COe Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 37,106. Natural Gas Throughput from Gas Distribution Operations in thousands of scf 88,09,541.3 COe Fugitive Methane Emissions Rate (metric tons per thousands scf of Throughput) divided by. NATURAL GAS TRANSMISSION & STORAGE - not applicable AGA Voluntary Sustainability Metrics: Quantitative Information Disclaimer: All information below is being provided on a voluntary basis, and as such, companies may elect to include or exclude any of the topics outlined below and customize the template to their specific needs. The decision to include data for historical and future years is at the discretion of each company and the specific years (e.g., historical baseline) should be chosen as appropriate for each company. American Gas Association. All rights reserved. 1