FOR IMMEDIATE RELEASE

February 23, 2001

Customers First! Coalition and Wisconsin Energy Corporation Propose a Framework for the Construction of new Electric Generation in Wisconsin

Amid recent electric reliability concerns in Wisconsin and the current deregulation crisis in California, Customers First! Coalition (CFC) today announced that its discussions with Wisconsin Energy Corp. (WEC) have yielded a proposed framework for Wisconsin's energy future.

The new framework proposed by CFC and WEC will be submitted by WEC to the Public Service Commission of Wisconsin (PSCW) for commission and public review. The revised WEC proposal incorporates the principles of the CFC Generation Action Plan. Under the proposed framework, state jurisdiction is maintained and existing power plants are not deregulated.

Earlier this winter, Customers First! and Wisconsin Energy Corp. filed individual energy plans with the PSC. The goal of both proposals was to spur construction of much needed power plants in the state.

The Customers First! Generation Action Plan proposed a method for building new electric generation to serve our state's energy needs without ceding control of electricity supplies to the federal government or deregulating existing power plants. WEC's initial plan, called Power the Future, also proposed to build new power plants, but involved spinning-off existing plants to an unregulated subsidiary, which would have resulted in deregulation and loss of state control over its electric generation.

"This is a Wisconsin solution to the problem of electric reliability. It prepares us for the future by ensuring that we will have the generation capacity in state to provide reliable and affordable power to all customers," said Steve Hiniker, Executive Director of the Citizens' Utility Board.

"We were very pleased with the results of our discussions with Wisconsin Energy. We began from the same premise-that there is a pressing need for new sources of electricity in the state; the disagreement was about how that generation should be built. This plan resolves those differences," said Dave Benforado, Executive Director of the Municipal Electric Utilities of Wisconsin.

Dave Jenkins, WECA Division Manager for the Wisconsin Federation of Cooperatives said, "This demonstrates that we can get Wisconsin the power it needs without a major overhaul of state law. We have a system that has served us well, this strengthens it."

The proposed compromise plan provides for a significant portion, but not all, of the new generating capacity that will be required by Wisconsin over the next decade. The state and region will continue to count on other projects and independent power producers to fill these needs.

Members of Customers First! believe that the proposed framework for new regulation will help keep the lights on in Wisconsin. This will benefit customers of all sizes, workers and electric providers.

"By proposing to build new baseload power plants and increase fuel-diversity, the plan will limit the volatility of electric prices that customers pay. For anyone who is trying to live on a budget, this is critical," said Jason Kay, Government Affairs Representative for the AARP-Wisconsin.

"In Wisconsin, we can't continue to just talk about how we're going to keep the lights on. We're past the point of California dreaming. This plan offers a real way to fuel Wisconsin's economy, to the benefit of all Wisconsin residents," said Chris Tackett, President and CEO of the Wisconsin Merchants Federation.

"Utility workers have a strong 'culture of service' to the customers and in keeping the lights on. This proposed framework verifies that here in Wisconsin. The plan is good for workers and the customers by getting new power plants built while maintaining state regulation," said Dave Poklinkoski, Business Manager of IBEW Local 2304.

After the chaotic results of California's failed experiment with electric deregulation, many in Wisconsin are especially wary of pursuing any course of action that could lead our state towards similar haphazard restructuring.

"This proposal calls for long term contracts for electricity, maintaining state regulatory authority and building a large amount of new generation in our state. Basically, this is the opposite of everything that California did that led them to the current crisis," said Mark Williamson, Executive Vice President and Chief Strategic Officer for Madison Gas and Electric.

For further information, please contact:

Chris Tackett, President & CEO
Wisconsin Merchants Federation
(608) 257-3541