Category Archives: Wisconsin Energy

Products And Services Analysis of WISCONSIN ENERGY

The company recorded revenues of $3,815.5 million during the fiscal year ended December 2005, an increase of 12% over 2004.

Wisconsin Energy Corporation generates revenues through two business divisions: utility energy (99% of the total revenues during fiscal year 2005) and non utility energy (1%).

Revenues by Division

During the fiscal year 2005, the utility energy division recorded revenues of $3,793 million, an increase of 12.4% over 2004.
The non utility energy division recorded revenues of $40 million in fiscal year 2005, compared to revenues of $19.9 million in 2004.

Major Products And Services of WISCONSIN ENERGY

Wisconsin Energy Corporation is a diversified holding company engaged in providing electric and natural gas service to customers across Wisconsin and the Upper Peninsula of Michigan in the US. The company’s key products and services include the following:

Utility energy:

Electric generation

Electric, natural gas, steam and water distribution

Non utility energy:

Energy development Recycling and renewable energy Real estate development

Key Employees of WISCONSIN ENERGY

Name

Job Title

Board

Compensation

Gale E. Klappa

Chairman, President and Chief Executive Officer

Executive Board

John F. Ahearne

Director

Non Executive Board

John F. Bergstrom

Director

Non Executive Board

Barbara L. Bowles

Director

Non Executive Board

Patricia W. Chadwick

Director

Non Executive Board

Robert A. Cornog

Director

Non Executive Board

Curt S. Culver

Director

Non Executive Board

Thomas J. Fischer

Director

Non Executive Board

Ulice Payne Jr.

Director

Non Executive Board

Frederick P. Stratton Jr.

Director

Non Executive Board

James C. Fleming

Executive Vice President and General Counsel

Senior Management

Frederick D. Kuester

Executive Vice President

Senior Management

Allen L. Leverett

Executive Vice President and CFO

Senior Management

Larry Salustro

Executive Vice President and General Counsel

Senior Management

James R. Klauser

Senior Vice President

Senior Management

Kristine Rappé

Senior Vice President and Chief Administrative Officer

Senior Management

Jeffrey P. West

Vice President and Treasurer

Senior Management

Stephen P. Dickson

Vice President and Controller

Senior Management

History of WISCONSIN ENERGY

Wisconsin Energy Corporation was incorporated in the state of Wisconsin in 1981 and became a diversified holding company in 1986. In the following year, several new subsidiaries including Wispark, Wisvest and Witech were established.

In 1994, WEC bought Lake Geneva-based Wisconsin Southern Gas and merged it into Wisconsin Natural. In the following year, Wisconsin Natural was merged with Wisconsin Electric.

The company acquired Eselco, parent company of Edison Sault Electric in 1998. Wisconsin Gas also entered the water utility business in 1998. Two years later, WICOR, a Milwaukee-based holding company of Wisconsin Gas, was acquired by WEC and the company became the largest electric and natural gas provider in Wisconsin.

WE Power was formed in 2001 to design, construct, own, finance and lease the new generating capacity included in WEC’s Power the Future strategy. In the following year, Wisconsin Electric and Wisconsin Gas began doing business under the trade name, WE Energies. The company received approval from the Public Service Commission of Wisconsin (PSCW) to begin construction on two natural-gas-fueled and two coal-fueled generating plants in 2003.

As a part of the company’s strategy to divest its non-core businesses, WEC sold WICOR Industries, a manufacturer of water systems, filtration and pool equipment, to Pentair in 2004.

We Energies announced an agreement to purchase the development rights for two, 80-megawatt wind farm projects from Navitas Energy, a wind development company in 2005. The agreement is part of the company’s commitment to derive 5% of its retail energy sales from renewable resources. In March 2006, We Energies filed a Certificate of Public Convenience and Necessity application with the PSCW for authorization to construct the Blue Sky Green Field Wind Project, which is being designed to generate up to 203 megawatts of electricity.

Business Description of WISCONSIN ENERGY

Wisconsin Energy Corporation (WEC) is engaged in providing electric and natural gas services to customers across Wisconsin and the Upper Peninsula of Michigan in the US. The company’s primary subsidiaries include Wisconsin Electric Power Company (Wisconsin Electric), Wisconsin Gas, formerly Wisconsin Gas Company (Wisconsin Gas), and WE Power (We Power).

The company operates through two operating segments: utility energy and non utility energy.

The utility energy segment primarily includes the company’s electric and natural gas utility operations. The electric utility operation engages in the generation, distribution and sale of electric energy in southeastern (including metropolitan Milwaukee), east central and northern Wisconsin and in the Upper Peninsula of Michigan. Its natural gas utility operation is engaged in the purchase, distribution and sale of natural gas to retail customers and the transportation of customer-owned natural gas throughout Wisconsin. Steam utility operation is engaged in the generation, distribution and sale of steam, supplied by the company’s Valley and Milwaukee County Power Plants.

The segment consists of Wisconsin Electric, Wisconsin Gas and Edison Sault Electric Company. Wisconsin Electric serves approximately 1,092,400 electric customers in Wisconsin and the Upper Peninsula of Michigan, approximately 446,400 gas customers in Wisconsin and approximately 460 steam customers in metro Milwaukee, Wisconsin. Wisconsin Gas serves approximately 583,300 gas customers in Wisconsin and approximately 2,800 water customers in suburban Milwaukee, Wisconsin. Wisconsin Electric and Wisconsin Gas operate under the trade name of “We Energies”. Edison Sault Electric Company (Edison Sault) serves approximately 22,900 electric customers in the Upper Peninsula of Michigan.

As of December 2005, the company’s net generation totaled 28.2 million megawatt hours. The company’s coal fired generation consists of six operating plants with a dependable capability of approximately 3,334 megawatts. Nuclear generation is carried out through Point Beach Nuclear Plant, which is operated by Nuclear Management Company (NMC), with 1,036 megawatts of dependable capability. Wisconsin Electric’s hydroelectric generating system consists of thirteen operating plants with a total installed capacity of approximately 88 megawatts and a dependable capability of approximately 57 megawatts. The natural gas-fired generation consists of four operating plants with a dependable capability of approximately 888 megawatts.

The company’s non-utility energy segment derives its revenues primarily from the ownership of electric power generating facilities for long-term lease to Wisconsin Electric and economic interests in other energy-related entities. Through its non utility subsidiaries, WE Power, Minergy Corporation, Wispark and Wisvest Corporation, the company is involved in energy development, recycling and renewable energy, and real estate development.