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GREEN BAY, Wis., April 30, 2002 -- WPS Resources Corp. announced that Wisconsin Public Service Corporation, its Wisconsin utility subsidiary, plans to install a 83-megawatt combustion turbine electric generator at the Wisconsin Public Service Pulliam Power Plant site in Green Bay, Wis.
Concurrent with the completion of the 83-megawatt combustion turbine in mid-2003, Wisconsin Public Service will enter into a contract to sell an equivalent amount of capacity to Upper Peninsula Power Company, WPS Resources' Michigan utility subsidiary. Construction of this capacity in Wisconsin will increase reliability in Wisconsin and the Upper Peninsula of Michigan.
Because of transmission constraints between Wisconsin and Michigan, Upper Peninsula Power can buy capacity in Wisconsin and deliver the output of that capacity to We Energies in Wisconsin. We Energies in turn runs its generation in the Upper Peninsula and delivers the output to Upper Peninsula Power Company. Wisconsin benefits from having the capacity located in Wisconsin because it backs up the Wisconsin systems in emergencies.
Michigan benefits from being able to use excess capacity in Michigan that could not be sold outside of Michigan due to transmission constraints. This also helps Upper Peninsula Power sell energy from the unit in the Wisconsin market when it isn't needed for its own purposes.
"We have an agreement with We Energies to supply electricity to their territory in Wisconsin in return for them supplying us in the Upper Peninsula through 2007," said Gary Erickson Upper Peninsula Power Vice President. "We would have liked to locate the generator in our immediate area, but electric transmission limitations and other concerns severely limit the feasibility of that alternative."
"Upper Peninsula Power officials approached us to partner with them because of their agreement with We Energies," said Dave Harpole, Public Service Vice President - Energy Supply. "I understand that Upper Peninsula Power had considered several options and this one best suited their needs."
In addition to providing the most efficient supply for Upper Peninsula Power, revenue from the sale will provide additional tax benefits to the State of Wisconsin.
Since both Wisconsin Public Service and Upper Peninsula Power are subsidiaries of WPS Resources, they will file for all of the required state and federal agency approvals.
The natural gas-fired generator should begin operating by June of 2003.
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