MILWAUKEE, Wis., Sept. 20, 2001 Wisconsin Energy Corp. announced today that it has signed a joint termination agreement with NRG Energy, Inc. to terminate the agreement for the sale to NRG Energy of two fossil-fueled power plants operated by Wisconsin Energy’s subsidiary Wisvest Connecticut, LLC.
It was decided to terminate the sale agreement, which was announced in Dec. 2000, because the parties believe NRG Energy will be unable to obtain necessary regulatory approvals for the transaction.
“We are disappointed that we have to terminate this agreement, but remain confident that we will be able to profitably sell these assets because of their importance to the New England electricity market, fuel flexibility and skilled workforce,” said Richard A. Abdoo, chairman, president and chief executive officer of Wisconsin Energy. “In the meantime, we will continue to safely and reliably operate these plants.”
Wisconsin Energy had anticipated the receipt of approximately $350 million in gross proceeds from the sale. The plants have operated profitably and the company expects that the contribution to earnings prior to an ultimate sale will remain positive.
“As we have announced, we are focusing on our core competencies of electric generation and electric and gas distribution in our service territory, pump manufacturing, and continuing our announced strategic priority of focusing on Wisconsin’s energy needs with our Power the Future program. We remain committed to selling these assets to monetize their value for the benefit of our shareholders,” said Abdoo.
The power plants, located in Bridgeport and New Haven, Conn., have a combined generating capacity of approximately 1,100 megawatts.
There will be no impact on employees. Wisvest Connecticut will continue to recognize the current collective bargaining agreement with Local 470-1 of the Utility Workers Union of America.
Wisconsin Energy Corporation (NYSE: WEC – news) is a Milwaukee-based holding company with subsidiaries in utility and non-utility businesses. The company serves more than one million electric customers in Wisconsin and Michigan’s Upper Peninsula and 960,000 natural gas customers in Wisconsin through its utility subsidiaries – Wisconsin Electric, Wisconsin Gas and Edison Sault Electric. Its non-utility subsidiaries include energy development, pump manufacturing, waste-to-energy and real estate businesses. Visit the company’s Web site at www.WisconsinEnergy.com