GREEN BAY, Wis., Dec. 17, 2002 — WPS Resources Corp. Monday announced that its electric and natural gas subsidiary, Wisconsin Public Service Corp., completed the purchase of the 180-megawatt De Pere Energy Center from Calpine Corp.
The $120.4 million acquisition was structured to include a $72 million payment at closing today and $48.4 million near year-end 2003.
The transaction includes termination of the existing power purchase agreement and a new purchase agreement for up to 235 megawatts of capacity and energy for 10-years from Calpine’s proposed Sherry Energy Center to be located near Marshfield, Wisconsin. The cost of the capacity purchases from the Sherry Energy Center will be approximately $250 million over the 10-year period.
Wisconsin Public Service will be responsible for supplying the fuel for the energy it receives from the Sherry Energy Center.
“This is a good deal for Wisconsin Public Service and its customers because it will give us a better mix of resources and will mean lower rates for our customers,” said Joseph P. O’Leary, WPS Resources’ Senior Vice President and Chief Financial Officer. “By terminating the existing power purchase agreement, we will be able to take advantage of changes in technology to provide lower-cost options for meeting the increasing demands of our customers.”
The power from the De Pere Energy Center was already under long-term contract to Wisconsin Public Service. In addition, Public Service will purchase 150 megawatts of electricity in 2005, increasing to an estimated 235 megawatts in 2006 through 2015, from Calpine’s proposed Sherry Energy Center. The additional capacity is needed by Public Service to serve expected growth in northeast Wisconsin.
About WPS Resources Corporation:
WPS Resources Corporation is a holding company for energy-related regulated and non-regulated subsidiaries. Its primary subsidiaries consist of Wisconsin Public Service Corporation, (a regulated electric and natural gas utility), Upper Peninsula Power Company (a regulated electric utility), WPS Energy Services, Inc. (a diversified nonregulated energy supply and services company), and WPS Power Development, Inc. (a nonregulated power development company).
About Wisconsin Public Service Corporation:
Wisconsin Public Service Corporation is an electric and natural gas utility serving northeast and north central Wisconsin and an adjacent portion of Michigan’s Upper Peninsula. Wisconsin Public Service serves approximately 400,000 electric customers and 300,000 natural gas customers.
About Upper Peninsula Power Company:
Upper Peninsula Power Company is an electric utility serving 10 of the 15 counties in the Upper Peninsula of Michigan. Upper Peninsula Power serves approximately 50,000 electric customers.
About WPS Energy Services, Inc.:
WPS Energy Services, Inc. is a diversified nonregulated energy supply and services company with principal operations in Illinois, Maine, Michigan, Ohio, Wisconsin, and Canada. WPS Energy Services provides retail and wholesale products primarily in the northeast quadrant of the United States and adjacent portions of Canada.
About WPS Power Development, Inc.:
WPS Power Development, Inc. develops, owns, and operates nonregulated electric generation facilities with a significant focus on the northeast quadrant of the United States. Areas of expertise include cogeneration, distributed generation, generation from renewables, and generation plant repowering projects.