Green Bay, WI – WPS Resources Corporation’s (NYSE: WPS) nonregulated subsidiary, WPS Energy Services, Inc., announced today that it has completed the sale of Sunbury Generation, LLC to Corona Power, LLC. Sunbury Generation owns the Sunbury generation facility located in Shamokin Dam, Pennsylvania. The gross proceeds received for the 421.7 megawatt power plant were about $34.6 million, and are subject to certain working capital and other post-closing adjustments.
The total estimated pre-tax gain on this transaction is expected to be approximately $19 million, which will be reported in discontinued operations. In conjunction with the sale, the company also anticipates generating approximately $14 million in cash tax benefits that will be realized within the next few years, with the timing subject to the use of alternative minimum tax credits.
As part of its asset management strategy, WPS Resources announced on June 13, 2006, that it signed a definitive agreement to sell the Sunbury facility. The transaction was completed within six weeks of the initial announcement.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as “anticipate,” “expect,” “intend” and other similar words. Forward-looking statements are beyond the ability of WPS Resources to control and, in many cases, WPS Resources cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see WPS Resources’ periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.
