Net proceeds for customer benefit to be greater than originally projected
MILWAUKEE, Oct. 1 /PRNewswire-FirstCall/ — Wisconsin Energy Corporation (NYSE:WEC) announced today that its subsidiary, Wisconsin Electric Power Co., doing business as We Energies, has completed the sale of its Point Beach Nuclear Plant to FPL Energy, a subsidiary of FPL Group, Inc. (NYSE:FPL) .
FPL Energy has assumed management and operation of Point Beach from Nuclear Management Company, which has operated the plant for We Energies since 2000.
FPL Energy purchased the plant, its nuclear fuel and associated inventories for approximately $924 million. The final agreement reflects adjustments at closing and will also result in the release of decommissioning trust investments in excess of $482 million to We Energies. The transaction will result in more than $882 million of proceeds for the benefit of We Energies customers — approximately $57 million more than originally projected.
Point Beach is located near Two Rivers, Wis. The first unit at Point Beach entered into commercial service in 1970 and is licensed to operate until 2030. The second unit was brought on line in 1973 and is licensed to operate until 2033.
The sale includes a long-term agreement under which FPL Energy will sell 100 percent of the output of Point Beach to We Energies through the current license term of each unit at the plant.
We Energies also has the option to purchase power from any capacity uprates at the existing plant and an option to invest in and own up to 40% of any new generation built at the site.
The Public Service Commission of Wisconsin approved the transaction and issued a written order on Sept. 25. The Federal Energy Regulatory Commission, U.S. Nuclear Regulatory Commission and Michigan Public Service Commission also approved aspects of the transaction.
FPL Group Inc. operates nuclear plants in Florida, Iowa and New England.
Wisconsin Energy Corporation (NYSE:WEC) , based in Milwaukee, is one of the nation’s premier energy companies, serving more than 1.1 million electric customers in Wisconsin and Michigan’s Upper Peninsula and more than 1 million natural gas customers in Wisconsin. The company’s principal utilities are We Energies and Edison Sault Electric. The company’s non-utility businesses include renewable energy technology and real estate development.
Wisconsin Energy Corporation (www.wisconsinenergy.com) has more than $11 billion of assets, 5,200 employees and approximately 52,000 stockholders of record.
Source: Wisconsin Energy Corporation
CONTACT: Media: Barry McNulty, +1-414-221-4444; or Analysts: Colleen F.
Henderson, CFA, +1-414-221-2592, [email protected], both
of Wisconsin Energy Corporation
Web site: http://www.wisconsinenergy.com/