WEC Energy (WEC) 8-K Wisconsin Energy Corporation posts higher third quarter results

Exhibit 99

From: Rick James (news media)
414-221-4444

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

Oct. 26, 2006

Wisconsin Energy Corporation posts higher third quarter results

MILWAUKEE - Wisconsin Energy (NYSE:WEC) reported net income from continuing operations of $70.8 million or 60 cents per share for the third quarter of 2006. This compares with net income from continuing operations of $65.8 million or 56 cents per share in the third quarter of 2005.

While electric sales were down in part because of milder summer weather, the company benefited from continued cost controls, favorable collection of fuel costs and stronger gas margins.

Residential use of electricity was down 1.7 percent in this year's third quarter. Usage by residential customers was also down 3.6 percent in the first nine months of 2006.

Consumption of electricity by small commercial and industrial customers was down 1.8 percent and 0.6 percent, respectively, in the third quarter and first nine months of 2006.

Usage of electricity by large commercial and industrial customers was down 7.5 percent in the third quarter and down 4.3 percent in the first nine months of 2006. This decline was due, in part, to planned outages at facilities of our two largest industrial customers during September. Excluding the impact of these outages, sales of electricity to large commercial and industrial customers were down 2.9 percent in the third quarter and 1.6 percent in the first nine months of 2006.

On July 31, the company set a new all-time demand record of 6,505 MW as a summer heat wave blanketed the region.

Third quarter 2006 revenues from continuing operations were $839.8 million compared with $797.3 million in the third quarter last year.

"We posted solid financial results in the first nine months of this year," said Gale Klappa, Wisconsin Energy's chairman, president and chief executive officer. "And our focus remains on generating high levels of customer satisfaction and world-class reliability at competitive prices."

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

Conference Call
A conference call is scheduled for 10 a.m. Central time on Thursday, Oct. 26, 2006. The presentation will review 2006 third 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 800-295-3991up to 15 minutes before the call begins. The pass code "Wisconsin Energy" is required. International callers should dial 617-614-3924 and use the same pass code. Access also may be gained through the company's Web site (www.wisconsinenergy.com) by clicking on the icon for the "Third Quarter 2006 Earnings Release & Conference Call." In conjunction with this earnings announcement, Wisconsin Energy will post on its Web site a package of detailed financial information on its third quarter performance. The materials will be available at 7:30 a.m. Central time on Oct. 26. An archive of the presentation will be available on the Web site after the call. A replay of the audio presentation will be available through Nov. 2, 2006. Dial 888-286-8010. International callers dial 617-801-6888. The replay pass code is 25291536.

Wisconsin Energy Corporation (NYSE:WEC), based in Milwaukee, is one of the nation's premier energy companies, serving more than 1.1 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 non-utility businesses include renewable energy and real estate development.

Wisconsin Energy Corporation (www.wisconsinenergy.com) has more than $10 billion of assets, 5,300 employees and approximately 56,000 stockholders of record.

Tables Follow

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WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED INCOME STATEMENTS
(Unaudited)
	Three Months Ended September 30		Nine Months Ended September 30
	2006	2005	2006	2005
	(Millions of Dollars, Except Per Share Amounts)
Operating Revenues	$839.8	$797.3	$2,901.2	$2,680.5
Operating Expenses
Fuel and purchased power	229.8	240.5	583.8	584.9
Cost of gas sold	85.1	80.3	695.1	633.0
Other operation and maintenance	287.1	241.5	875.1	764.4
Depreciation, decommissioning
and amortization	82.0	84.6	243.4	245.4
Property and revenue taxes	24.6	22.0	73.9	67.7
Total Operating Expenses	708.6	668.9	2,471.3	2,295.4
Operating Income	131.2	128.4	429.9	385.1
Equity in Earnings of Transmission Affiliate	9.7	8.8	28.7	25.9
Other Income, Net	15.2	13.2	44.8	30.4
Interest Expense	41.5	44.6	129.3	128.5
Income From Continuing
Operations Before Income Taxes	114.6	105.8	374.1	312.9
Income Taxes	43.8	40.0	139.2	100.3
Income From Continuing Operations	70.8	65.8	234.9	212.6
Income From Discontinued
Operations, Net of Tax	-	0.4	4.5	5.5
Net Income	$70.8	$66.2	$239.4	$218.1
Earnings Per Share (Basic)
Continuing operations	$0.61	$0.57	$2.01	$1.82
Discontinued operations	-	-	0.04	0.04
Total Earnings Per Share (Basic)	$0.61	$0.57	$2.05	$1.86
Earnings Per Share (Diluted)
Continuing operations	$0.60	$0.56	$1.98	$1.80
Discontinued operations	-	-	0.04	0.04
Total Earnings Per Share (Diluted)	$0.60	$0.56	$2.02	$1.84
Weighted Average Common
Shares Outstanding (Millions)
Basic	117.0	117.0	117.0	117.0
Diluted	118.4	118.6	118.3	118.4
Dividends Per Share of Common Stock	$0.23	$0.22	$0.69	$0.66

WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
			(Unaudited)
			September 30, 2006	December 31, 2005
			(Millions of Dollars)
Assets
Property, Plant and Equipment
	In Service		$8,973.4	$8,849.6
	Accumulated depreciation		(3,395.6)	(3,288.5)
			5,577.8	5,561.1
	Construction work in progress		1,056.0	596.6
	Leased facilities, net		89.0	93.2
	Nuclear fuel, net		110.2	112.0
		Net Property, Plant and Equipment	6,833.0	6,362.9
Investments			1,112.2	1,080.0
Current Assets
	Cash and cash equivalents		21.2	73.2
	Accounts receivable		278.3	441.8
	Accrued revenues		141.2	262.9
	Materials, supplies and inventories		427.7	451.6
	Assets held for sale		-	17.4
	Other		108.0	130.1
		Total Current Assets	976.4	1,377.0
Deferred Charges and Other Assets
	Regulatory assets		1,074.3	1,025.6
	Goodwill, net		441.9	441.9
	Other		186.4	174.6
		Total Deferred Charges and Other Assets	1,702.6	1,642.1
Total Assets			$10,624.2	$10,462.0
Capitalization and Liabilities
Capitalization
	Common equity		$2,834.6	$2,680.1
	Preferred stock of subsidiary		30.4	30.4
	Long-term debt		3,034.8	3,031.0
		Total Capitalization	5,899.8	5,741.5
Current Liabilities
	Long-term debt due currently		218.2	496.0
	Short-term debt		709.3	456.3
	Accounts payable		278.6	418.1
	Accrued liabilities		154.2	134.4
	Other		181.0	142.0
		Total Current Liabilities	1,541.3	1,646.8
Deferred Credits and Other Liabilities
	Regulatory liabilities		1,424.5	1,373.2
	Asset retirement obligations		368.4	355.5
	Deferred income taxes - long-term		579.4	593.7
	Other		810.8	751.3
		Total Deferred Credits and Other Liabilities	3,183.1	3,073.7
Total Capitalization and Liabilities			$10,624.2	$10,462.0

WISCONSIN ENERGY CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
			Nine Months Ended September 30
			2006	2005
			(Millions of Dollars)
Operating Activities
	Net income		$239.4	$218.1
	Reconciliation to cash
		Depreciation, decommissioning and amortization	250.2	261.4
		Deferred income taxes and investment tax credits, net	(25.5)	70.5
		Working capital and other	244.2	14.0
Cash Provided by Operating Activities			708.3	564.0
Investing Activities
	Capital expenditures		(664.0)	(503.1)
	Proceeds from asset sales		69.0	61.6
	Other investing activities		(55.3)	(29.8)
Cash Used in Investing Activities			(650.3)	(471.3)
Financing Activities
	Common stock issued (repurchased), net		(9.3)	(26.2)
	Dividends paid on common stock		(80.7)	(77.2)
	Change in debt, net		(22.3)	4.9
	Other financing activities		2.3	-
Cash Used in Financing Activities			(110.0)	(98.5)
Change in Cash			(52.0)	(5.8)
Cash at Beginning of Period			73.2	35.6
Cash at End of Period			$21.2	$29.8