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MILWAUKEE, June 10, 2002 -- Wisconsin Energy Corp. recently announced that it has signed a definitive agreement with PSEG Fossil, LLC of New Jersey for the sale of two fossil-fueled power plants operated by Wisvest-Connecticut, LLC.
The power plants, located in Bridgeport and New Haven, Conn., have a combined generating capacity of more than 1,000 megawatts.
Wisconsin Energy anticipates receiving approximately $280 million from the sale, which includes tax benefits and reimbursement for capital expenditures and inventory. The sale will not result in a gain or loss for Wisconsin Energy because a valuation charge relating to the power plants was taken in the first quarter of 2002.
The sale, which is subject to approval by the Federal Energy Regulatory Commission and which must comply with the Hart-Scott-Rodino Act, is expected to close during 2002.
"We believe the sale of our Wisvest-Connecticut assets is in the best interests of our shareholders and an integral part of our growth strategy," said Richard A. Abdoo, Wisconsin Energy chairman, president and chief executive officer. "The sale of these non-strategic assets will allow us to concentrate on our core competencies, which include electric generation, electric, natural gas and steam distribution in the Midwest and pump manufacturing. We will use the proceeds from the sale to reduce debt and to strengthen our balance sheet."
Wisvest, a subsidiary of Wisconsin Energy, purchased the two fossil-fueled Connecticut plants in 1999 from The United Illuminating Company. As part of the terms of the sale, PSEG Fossil, a wholly owned subsidiary of PSEG Power, has agreed to honor terms of the current collective bargaining agreement with Local 470-1 of the Utility Workers Union of America.
Wisconsin Energy Corporation 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 - We Energies and Edison Sault Electric.
Its non-utility businesses include energy development, pump manufacturing, recycling and renewable energy, and real estate. Visit the Web site at http://www.WisconsinEnergy.com.
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