WEC Energy (WEC) 8-K Results of Operations and Financial Condition

Exhibit 99

From: Rick James (news media)
414-221-4444
rick.james@we-energies.com

Colleen Henderson, CFA (analysts)
414-221-2592
colleen.henderson@wisconsinenergy.com

July 27, 2005


Wisconsin Energy Corporation Posts Higher Results in Second Quarter


MILWAUKEE -Wisconsin Energy (NYSE:WEC) reported net income from continuing operations of $57 million or 48 cents per share for the second quarter of 2005. The company recognized a 14 cent per share gain in the second quarter associated with the ability to recognize state tax operating losses at the parent company level. Excluding this item, adjusted earnings were 34 cents per share.

Net income from continuing operations in the second quarter of 2004 was $22 million or 18 cents per share. Excluding 2 cents per share of non-recurring charges, adjusted earnings were 20 cents per share in the second quarter of 2004.

Warmer than normal summer weather, lower debt levels at Wisconsin Energy and continued cost control across the utility operations contributed to second quarter results. Second quarter 2005 revenues from continuing operations were $793 million compared with $715 million in the second quarter last year.

Residential use of electricity was up 11.9 percent in this year's second quarter, reflecting warm summer temperatures as compared to last year. Use of electricity by commercial and industrial customers increased by 2.3 percent.

"In addition to strong financial results, we continued to deliver world-class reliability, and our focus remains on generating high levels of customer satisfaction," said Gale Klappa, Wisconsin Energy's chairman, president and chief executive officer. "We also began construction of our new units at Oak Creek. The units are targeted to go into service in 2009 and 2010, and once they're completed, we expect them to provide our customers with affordable energy for years to come."

Earnings per share listed in this news release are on a fully diluted basis.

Conference Call

A conference call is scheduled for 1 p.m. Central time on Wednesday,
July 27, 2005. The presentation will review 2005 second quarter earnings and discuss the company's outlook for the future.

All interested parties, including stockholders, the news media and the general public, are invited to listen to the presentation. The conference call may be accessed by dialing(800)289-0572 up to 15 minutes before the call begins. There is no pass code required. Access also may be gained through the company's Web site (www.WisconsinEnergy.com) by clicking on the icon for the "Second Quarter 2005 Earnings Release & Conference Call." In conjunction with this earnings announcement, Wisconsin Energy has posted on its Web site a package of detailed financial information on its second quarter performance. The materials will be available at 7:30 a.m. Central time on July 27. An archive of the presentation will be available on the Web site after the call. A replay of the audio presentation will be available for one week after the call. Dial (888) 203-1112. The pass code is 2140830.

Non-GAAP Earnings Measures

Adjusted earnings (non-GAAP earnings), which generally exclude non-operational items as well as one-time charges or credits that are not associated with the company's ongoing operations, are provided as a complement to earnings presented in accordance with GAAP. The excluded items are not indicative of the company's operating performance. Therefore, we believe that the presentation of adjusted earnings from operations is relevant and useful to investors to understand Wisconsin Energy's operating performance. Management uses such measures internally to evaluate the company's performance and manage its operations.

Wisconsin Energy Corporation (NYSE:WEC), based in Milwaukee, is a Fortune 500 energy company serving more than one million electric customers in Wisconsin and Michigan's Upper Peninsula and more than one million natural gas customers in Wisconsin. The company's principal utilities are We Energies and Edison Sault Electric. The company's nonutility businesses include energy development, recycling and renewable energy, and real estate development.

One of the Midwest's premier energy companies, Wisconsin Energy Corporation (www.WisconsinEnergy.com) has approximately 5,600 employees, 58,000 registered stockholders and more than $9 billion of assets.

Forward Looking Statements

Some matters discussed above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are subject to various risks and uncertainties. Actual results may vary materially from those set forth in forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: general economic conditions; business and competitive conditions in the deregulating and consolidating energy industry, in general, and, in particular, in the company's service territories; unanticipated operational and/or financial consequences related to the implementation on April 1, 2005, of a bid-based energy market in Wisconsin and Michigan; availability of the company's generating facilities; changes in purchased power costs; changes in coal or natural gas prices and supply and transportation availability and the ability to recover fuel and purchased power costs; varying weather conditions; risks associated with nonutiilty diversification; regulatory decisions; construction risks; obtaining necessary regulatory approvals and investment capital to implement the growth strategy; successful resolution of legal challenges to the company's Power the Future program; equity and bond market fluctuations; foreign, governmental, economic, political and currency risks; and other cautionary factors described in the Management's Discussion and Analysis of Financial Condition and Results of Operations in Wisconsin Energy Corporation's 10-K for the year-ended December 31, 2004, and other factors described in the company's subsequent reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Tables Follow

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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
	Three Months Ended June 30		Six Months Ended June 30
	2005	2004	2005	2004
	(Millions of Dollars, Except Per Share Amounts)
Operating Revenues	$793	$715	$1,892	$1,780
Operating Expenses
Fuel and purchased power	186	152	344	296
Cost of gas sold	142	130	553	515
Other operation and maintenance	273	255	532	510
Depreciation, decommissioning
and amortization	79	82	162	158
Property and revenue taxes	23	22	45	44
Total Operating Expenses	703	641	1,636	1,523
Operating Income	90	74	256	257
Other Income, Net	17	10	35	15
Financing Costs	42	50	84	105
Income From Continuing
Operations Before Income Taxes	65	34	207	167
Income Taxes	8	12	60	62
Income From Continuing Operations	57	22	147	105
Income From Discontinued
Operations, Net of Tax	5	17	5	24
Net Income	$62	$39	$152	$129
Earnings Per Share (Basic)
Continuing operations	$0.49	$0.18	$1.26	$0.89
Discontinued operations	0.04	0.15	0.04	0.20
Total Earnings Per Share (Basic)	$0.53	$0.33	$1.30	$1.09
Earnings Per Share (Diluted)
Continuing operations	$0.48	$0.18	$1.24	$0.88
Discontinued operations	0.04	0.14	0.04	0.20
Total Earnings Per Share (Diluted)	$0.52	$0.32	$1.28	$1.08
Weighted Average Common
Shares Outstanding (Millions)
Basic	117.0	118.0	117.0	118.2
Diluted	118.3	119.5	118.3	119.9
Dividends Per Share of Common Stock	$0.22	$0.21	$0.44	$0.41

WISCONSIN ENERGY CORPORATION SUMMARY OF CONSOLIDATED CONDENSED EARNINGS
(Unaudited)
	Three Months Ended June 30		Six Months Ended June 30
	2005	2004	2005			2004
	(Millions of Dollars)
Operating Income
Utility Energy Segment	$90	$74	$261			$261
Non-Utility Energy Segment	-	-	(1	)		(2	)
Corporate and Other	-	-	(4	)		(2	)
Total Operating Income	90	74	256		257
Other Income, Net	17	10	35		15
Financing Costs	42	50	84		105
Income From Continuing
Operations Before Income Taxes	65	34	207		167
Income Taxes	8	12	60		62
Income From Continuing Operations	57	22	147		105
Income From Discontinued
Operations, Net of Tax	5	17	5		24
Net Income	$62	$39	$152		$129

WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
			(Unaudited)
			June 30, 2005		December 31, 2004
			(Millions of Dollars)
Assets
Property, Plant and Equipment
	In Service		$8,259		$8,204
	Accumulated depreciation		(3,194	)	(3,107	)
			5,065		5,097
	Construction work in progress		796		602
	Leased facilities, net		96		99
	Nuclear fuel, net		96		85
		Net Property, Plant and Equipment	6,053		5,883
Investments			1,021		1,025
Current Assets
	Cash and cash equivalents		21		36
	Accounts receivable		354		349
	Accrued revenues		158		245
	Materials, supplies and inventories		319		407
	Assets held for sale		-		30
	Other		197		137
		Total Current Assets	1,049		1,204
Deferred Charges and Other Assets
	Regulatory assets		899		849
	Goodwill, net		442		442
	Other		157		162
		Total Deferred Charges and Other Assets	1,498		1,453
Total Assets			$9,621		$9,565
Capitalization and Liabilities
Capitalization
	Common equity		$2,579		$2,492
	Preferred stock of subsidiary		30		30
	Long-term debt		2,993		3,240
		Total Capitalization	5,602		5,762
Current Liabilities
	Long-term debt due currently		347		101
	Short-term debt		250		338
	Accounts payable		294		310
	Accrued liabilities		104		114
	Other		173		129
		Total Current Liabilities	1,168		992
Deferred Credits and Other Liabilities
	Regulatory liabilities		1,345		922
	Asset retirement obligations		316		762
	Deferred income taxes - long-term		546		530
	Other		644		597
		Total Deferred Credits and Other Liabilities	2,851		2,811
Total Capitalization and Liabilities			$9,621		$9,565

WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
			Six Months Ended June 30
			2005	2004
			(Millions of Dollars)
Operating Activities
	Net income		$152	$129
	Income from discontinued operations, net of tax		(5)	(24)
	Reconciliation to cash
		Depreciation, decommissioning and amortization	174	176
		Deferred income taxes and investment tax credits, net	5	34
		Working capital and other	109	179
Cash Provided by Operating Activities			435	494
Investing Activities
	Capital expenditures		(322)	(255)
	Proceeds from asset sales		55	16
	Other investing activities		(18)	24
Cash Used in Investing Activities			(285)	(215)
Financing Activities
	Common stock issued (repurchased), net		(22)	(51)
	Dividends paid on common stock		(52)	(49)
	Change in debt, net		(91)	(186)
Cash Used in Financing Activities			(165)	(286)
Change in Cash From Continuing Operations			(15)	(7)
Cash at Beginning of Period			36	28
Cash at End of Period			$21	$21
Supplemental Information - Cash Paid For
	Interest (net of amount capitalized)		$101	$116
	Income taxes (net of refunds)		$100	$58