Contact at Potomac Communications Group:
Andy Hallmark 202-257-5897
Contact at Concentric Energy Advisors:
John Reed 508-263-6262
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Dec. 20, 2006
Concentric Energy Advisors Managed Sale of We Energies’ Point Beach Nuclear Plant to FPL Energy
Concentric is pleased with the unprecedented results of the competitive auction
Marlborough, MA – Wisconsin Energy Corporation (NYSE: WEC) announced today that its subsidiary, Wisconsin Electric Power Co., doing business as We Energies, has reached a definitive agreement to sell its 1033 MW, two-unit Point Beach Nuclear Plant to FPL Energy (NYSE: FPL).
The sale was managed for Wisconsin Energy by Concentric Energy Advisors, Inc. (“Concentric”) of Marlborough, Massachusetts. The results of the auction indicate the continuing strength of the market for nuclear assets and the benefits available to ratepayers from these transactions.
Key transaction terms include a sale price for the asset of approximately $1 billion (subject to closing adjustments), a PPA through the end of the current operating license at specified prices, extending to 2030 for Unit and 2033 for Unit 2, retention by We Energies of all non-qualified decommissioning funds and the potential for the retention of funds in the qualified decommissioning trust. Both the price per kW for the asset and the PPA terms are unprecedented in the industry.
“We are pleased with the successful results of the competitive process we managed for We Energies which included a broad set of alternative ownership and operations structures for Point Beach,” said John J. Reed, Chairman and CEO of Concentric. “The deal will provide We Energies and its ratepayers with tremendous value, risk shift and price protection for years to come.”
Concentric will continue to work with Wisconsin Energy throughout the regulatory approval process. The transaction is expected to close in August 2007.
Concentric Energy Advisors, Inc. is a management consulting and economic advisory firm focused on the North American energy industry. Based in Marlborough, Massachusetts, Concentric specializes in transaction-related financial advisory services, strategic market assessments, litigation and regulatory support, and regulatory services.
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