Wisconsin utility regulator gives preliminary approval to WEC’s Port Washington plans

MILWAUKEE, Dec. 10, 2002 — The Public Service Commission of Wisconsin (PSCW) on Monday addressed the financing, municipal payments and environmental issues associated with Wisconsin Energy Corp.’s plan to build two new 545-megawatt natural gas fired generating facilities at the current site of the company’s Port Washington Power Plant in Port Washington, Wis.

The commission addressed the details of the lease documents, which will be used to finance the project. They reduced the rate of return on equity to 12.7% from the 12.9% finally requested by the company. In addition, the commission established a capital structure of 53% equity and 47% debt. The decision also establishes a route for the natural gas pipeline connected to the plants.

“While we are pleased that the commission recognizes the need for this phase of Power the Future to move forward, we need to withhold further comment until we see how the other details in the lease documents are finally resolved in the commission’s order,” said Larry Salustro, senior vice president at WEC.

Wisconsin Energy Corp. is a Milwaukee-based holding company with utility and non-utility subsidiaries. The company serves more than one million electric customers in Wisconsin and Michigan’s Upper Peninsula and 970,000 natural gas customers in Wisconsin through its utility subsidiaries Wisconsin Electric Power Company and Wisconsin Gas Company, both doing business as We Energies, and another utility subsidiary, Edison Sault Electric Company. Its non-utility businesses include energy development, pump manufacturing, recycling and renewable energy, and real estate. Visit the Web site at www.WisconsinEnergy.com .