Electric Rates. for residential and farm customers. January 2016

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January 2016 Electric Rates for residential and farm customers The electric service rates listed in this brochure reflect the rates effective Jan. 1, 2016, as authorized by the Public Service Commission of Wisconsin (PSCW) for Wisconsin Electric Power Company, doing business under the name of We Energies. This brochure contains electric rates for residential and farm customers only. If you would like information on all electric rates available to We Energies customers, please contact us to obtain a brochure. Visit weenergies.com for more information on electric rates and pricing.

OVERVIEW Rate options We recommend you review the rate options and prices listed in this brochure. Your current rate description is listed on your bill. Compare this rate description to the other rate options described here. While you are the best judge of which rates are right for your situation, we ll be glad to help you compare rate options. Renewable energy rates Customers have the option to participate in the Company s Energy for Tomorrow renewable energy program. The program gives customers the option to pay a premium for the Company to obtain generation fueled by renewable resources. Use of renewable energy resources has a positive impact on the environment and reduces the consumption of non-renewable resources. Time-of-Use rates Many customers may benefit from our Time-of-Use rate option. With Time-of-Use, you pay a lower rate when the demand for electricity is low (weeknights, weekends and holidays) and a higher rate when demand is high (weekdays on-peak hours). The Time-of-Use rate has its own on-peak and off-peak periods. All time periods as stated are the prevailing time Monday through Friday, excluding those days designated as the legal holidays for New Year s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The off-peak periods consist of all hours not designated as on-peak. A Time-of-Use rate is mandatory for residential customers whose annual consumption exceeds 60,000 kwh. Renewable Grant Credit The Renewable Grant Credit, which had previously appeared on your bill, was eliminated effective Jan. 1, 2016. The credit expired and was based on the Company s investment in the Rothschild renewable energy facility. Extra meter charges The Company generally supplies no more than one service drop/lateral to a premise and not more than one meter. The monthly charge for each additional meter will either be an additional facilities charge or an extra meter charge. The determination for such charge will be in accordance with the Company s approved Rules and Regulations, Volume 17, Section 103.1. Service charges n All customers are subject to a late payment charge of 1 percent per month on all amounts past due. n A $15 service fee is charged for all returned checks, plus additional bank charges that may be incurred.

RESIDENTIAL AND FARM RATES Residential/Farm (Rg1, Fg1) Facilities, per day: Single-phase...$.52602 Three-phase...$.52602 Additional meter...$.05951 Energy per kwh...$.13111 Fuel Cost Adjustment Credit, per kwh...$.00058 Residential Time-of-Use (Rg2) Facilities, per day: Single-phase...$.52602 Three-phase...$.52602 Additional meter...$.05951 Energy, per kwh: On-peak energy... $.19680 Off-peak energy... $.08964 Fuel Cost Adjustment Credit, per on-peak kwh... $.00058 Fuel Cost Adjustment Credit, per off-peak kwh... $.XXXXX Customers have a choice of four on-peak periods: 7 a.m. to 7 p.m., 8 a.m. to 8 p.m., 9 a.m. to 9 p.m., or 10 a.m. to 10 p.m. Time-of-Use rates for farm customers Time-of-Use Rates are available to farm customers. If both the residential and commercial portions of the farm customer s service are served through one meter, the farm customer may take service under the General Secondary Time-of-Use rate but not the Residential Time-of-Use rate. RENEWABLE ENERGY RATES Experimental Renewable Energy Rider (ERER1) This program is available to customers taking service under rate schedules Rg1, Rg2, Fg1, Cg1, and Cg6 who pay a premium on their usage for the Company to obtain energy from generating sources that are fueled by renewable resources for 25 percent, 50 percent or 100 percent of their usage. In addition to the charges and credits of the rate schedule under which the customer is served, there will be an adder per kwh as follows: 25% participation level...$.00502 per kwh 50% participation level...$.01004 per kwh 100% participation level... $.02007 per kwh The fuel cost adjustment of the rate schedule under which the customer is served is applicable and will be prorated depending on selected participation level.

LIGHTING RATES Standard Area Lighting (Gl1) Monthly per Lamp Sodium Sodium Metal Halide Metal Halide Lamp Size Standard Flood Standard Flood 50-watt...$10.04**...*... *...* 70-watt...$11.63... $13.16**... *...* 100-watt...$13.52... $15.01... *...* 150-watt...$15.75... $17.27**... *...* 175-watt...*...*... $25.14....$26.45** 200-watt...$18.35...$19.76... *....* 250-watt...$20.83... $22.17**... $26.41...$27.85 400-watt...$27.69...$28.87... $30.57...$31.82 1000-watt...*...*.... *...$60.63** *Service not provided. **This rate closed to new installations. Fuel Cost Adjustment Credit, per kwh...$.00058 There is an additional monthly charge of $2.80 for each additional pole and $2.73 for each additional span of circuit installed to serve a lighting unit. The Company will no longer install new or additional poles under this rate. Installations which require new poles shall be served under the Ms4 rate. Non-Standard Street and Area Lighting (Ms4) Lamp Size Monthly per Lamp 50-watt... $ 2.30 70-watt... $ 3.39 100-watt... $ 5.25 150-watt... $ 7.44 175-watt... $ 8.43 200-watt... $ 9.84 250-watt... $12.25 400-watt... $18.93 1000-watt... $44.09** **This rate closed to new installations. Fuel Cost Adjustment Credit, per kwh... $.00058 These rates do not include the facilities charge. The facilities charge can be paid in one of two ways: Option A: A monthly payment of 1.9 percent of the estimated installed cost of the lighting and related facilities. Option B: A one-time charge equal to the estimated installed cost of the lighting and related facilities, payable prior to installation of the facilities, plus a monthly charge equal to 0.5 percent of the estimated installed cost of the facilities.

LED Standard and Non-Standard Lighting Service (LED) This rate is available to all customers contracting for Standard or Non-Standard Light Emitting Diode (LED) street or area lighting service by means of existing 120 volt Company-owned and maintained Standard or Non-Standard lighting facilities. Contracting for the illumination of public roadways is limited to municipalities or other governmental units. Rate Each light fixture requires payment of a one-time Installation, plus monthly Facilities, Source and Energy s which continue until facilities are permanently removed: Installation and Facilities - Standard Lighting Fixture Light Fixture Class Installed Cost per Light Fixture Range Installation per Light Fixture Facilities (per Light Fixture, per Month) During After Early Removal (x Months Remaining in Term) From To A $1 $249 $100 $9.26 $3.65 $5.61 B $250 $349 $125 $10.59 $4.22 $6.37 C $350 $449 $150 $12.15 $4.87 $7.28 D $450 $549 $175 $13.70 $5.52 $8.19 E $550 $649 $200 $15.26 $6.17 $9.10 F $650 $749 $225 $16.82 $6.82 $10.00 G $750 $849 $250 $18.38 $7.47 $10.91 H $850 $949 $275 $19.94 $8.12 $11.82 I $950 $1,049 $300 $21.49 $8.77 $12.73 Installation and Facilities - Non-Standard Lighting Fixture Light Fixture Class Installed Cost per Light Fixture Range From To Installation Facilities (per Light Fixture, per Month) During After Early Removal (x Months Remaining in Term) A $1 $249 ** $6.20 $3.62 $2.58 B $250 $349 ** $6.77 $4.19 $2.58 C $350 $449 ** $7.42 $4.84 $2.58 D $450 $549 ** $8.07 $5.49 $2.58 E $550 $649 ** $8.72 $6.14 $2.58 F $650 $749 ** $9.37 $6.79 $2.58 G $750 $849 ** $10.02 $7.44 $2.58 H $850 $949 ** $10.67 $8.09 $2.58 I $950 $1,049 ** $11.32 $8.74 $2.58 J $1,050 $1,149 ** $11.97 $9.39 $2.58 K $1,150 $1,249 ** $12.62 $10.04 $2.58 L $1,250 $1,349 ** $13.27 $10.69 $2.58 M $1,350 $1,449 ** $13.92 $11.34 $2.58 N $1,450 $1,549 ** $14.57 $11.99 $2.58 O $1,550 $1,649 ** $15.22 $12.64 $2.58 P $1,650 $1,749 ** $15.87 $13.29 $2.58

Installation and Facilities - Non-Standard Lighting Fixture Light Fixture Class Installed Cost per Light Fixture Range From To Installation Q $1,750 $1,849 ** $16.52 $13.94 $2.58 R $1,850 $1,949 ** $17.17 $14.59 $2.58 S $1,950 $2,049 ** $17.82 $15.24 $2.58 T $2,050 $2,149 ** $18.47 $15.89 $2.58 * Term under this rate is 84 billed months **Prior to installation of facilities, the customer shall pay the total estimated installed cost of all Non-Standard lighting related facilities. Energy (per month, per light fixture) The Company uses the kwh usage brackets below to determine the appropriate per light fixture monthly charge. To determine the kwh usage bracket for each light fixture, the Company will multiply 103 percent of the rated input wattage of the original light fixture and related accessory equipment by the estimated average monthly burn hours and round to the nearest whole number. Monthly Monthly Monthly kwh kwh kwh 0-3 $0.32 40-42 $4.44 79-81 $8.57 4-6 $0.63 43-45 $4.76 82-84 $8.89 7-9 $0.95 46-48 $5.08 85-87 $9.21 10-12 $1.27 49-51 $5.40 88-90 $9.52 13-15 $1.59 52-54 $5.71 91-93 $9.84 16-18 $1.90 55-57 $6.03 94-96 $10.16 19-21 $2.22 58-60 $6.35 97-99 $10.48 22-24 $2.54 61-63 $6.67 100-102 $10.79 25-27 $2.86 64-66 $6.98 103-105 $11.11 28-30 $3.17 67-69 $7.30 106-108 $11.43 31-33 $3.49 70-72 $7.62 109-111 $11.75 34-36 $3.81 73-75 $7.94 112-114 $12.06 37-39 $4.13 76-78 $8.25 115-117 $12.38 Source, LED $1.00 per month, per light fixture. Facilities (per Light Fixture, per Month) During After Early Removal (x Months Remaining in Term) Adjustment for Cost of Fuel To determine the total kwh usage subject to the Adjustment for Cost of Fuel, each month, the Company will add together the maximum kwhs of each light fixture s associated usage bracket. The maximum kwhs for each bracket are shown in the Energy section. Fuel Cost Adjustment Credit, per kwh... $.XXXXX

Contact information Please call us if you would like to discuss your electric service. We are available 24 hours a day, seven days a week. Customer Services 800-242-9137 Power outage hotline/emergencies 800-662-4PWR (4797) Website we-energies.com We Energies is the registered trade name of Wisconsin Electric Power Company and Wisconsin Gas LLC, and both companies are engaged in business under the name of We Energies.

2K16001-1295-JN-RG-1.1M