Exhibit 99
From: Rick James (media)
414-221-4444
Colleen F. Henderson, CFA (analysts)
414-221-2592
colleen.henderson@wisconsinenergy.com
July 31, 2008
Wisconsin Energy posts second quarter earnings
MILWAUKEE -Wisconsin Energy (NYSE: WEC) today reported net income from continuing operations of $58.3 million or 49 cents per share for the second quarter of 2008. This compares with net income from continuing operations of $57.7 million or 49 cents per share in the corresponding period a year ago.
Second quarter 2008 results were helped by additional earnings from the company's Power the Future plan, including the new Port Washington generating unit that began commercial service in May. Results in last year's second quarter were increased by the settlement of a billing dispute and a gain on the sale of land.
Residential use of electricity was down by 4.2 percent from the second quarter a year ago - driven by cooler weather and the lack of air conditioning demand in June. Consumption of electricity by large commercial and industrial customers was down 1.2 percent, while use of electricity by small commercial and industrial customers declined by 3.0 percent.
At the end of June, the company was serving 6,996 more electric customers and 8,310 more natural gas customers than a year ago.
Second quarter 2008 revenues from continuing operations were $946 million compared with $907 million in the second quarter last year.
"We reached another milestone in this year's second quarter as our customers began realizing the benefits of two major components of our Power the Future plan," said Gale Klappa, Wisconsin Energy's chairman, president and chief executive officer. "In May, our generating capacity increased with the startup of our second natural gas-fueled unit at Port Washington and the commercial operation of 88 wind turbines at our Blue Sky Green Field wind farm."
Klappa continued, "These projects add nearly 700 megawatts of capability to our system and are key to the diverse energy portfolio we're building to support the region's economy in the years ahead."
Conference Call
A conference call is scheduled for 1 p.m. Central time on Thursday, July 31, 2008. The presentation will review 2008 second quarter earnings and will 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 800-289-0493 up to 15 minutes before the call begins. International callers may dial 913-312-1452. The confirmation code is 5843245. Access also may be gained through the company's Web site (www.wisconsinenergy.com). Click on the icon for the "Second Quarter 2008 Earnings Release & Conference Call" and select "webcast audio." In conjunction with this earnings announcement, Wisconsin Energy will post 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 31. An archive of the presentation will be available on the Web site after the call. A replay of the audio portion of the presentation will be available approximately two hours following the conclusion of the presentation and accessible through Aug. 7, 2008. Domestic callers should dial 888-203-1112. International callers should dial 719-457-0820. The replay confirmation code is 5843245.
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 1 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 technology and real estate development.
Wisconsin Energy Corporation (www.wisconsinenergy.com) has more than $11 billion of assets, approximately 5,000 employees and more than 50,000 stockholders of record.
WISCONSIN ENERGY CORPORATION | ||||||||
CONSOLIDATED CONDENSED INCOME STATEMENTS | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||
2008 | 2007 | 2008 | 2007 | |||||
(Millions of Dollars, Except Per Share Amounts) | ||||||||
Operating Revenues | $946.1 | $906.5 | $2,377.9 | $2,207.6 | ||||
Operating Expenses | ||||||||
Fuel and purchased power | 298.1 | 232.3 | 636.3 | 461.8 | ||||
Cost of gas sold | 185.6 | 158.6 | 745.9 | 632.4 | ||||
Other operation and maintenance | 333.5 | 304.2 | 703.1 | 607.2 | ||||
Depreciation, decommissioning |
| |||||||
and amortization | 80.5 | 81.2 | 158.2 | 165.3 | ||||
Property and revenue taxes | 27.2 | 25.1 | 54.3 | 51.3 | ||||
Total Operating Expenses | 924.9 | 801.4 | 2,297.8 | 1,918.0 | ||||
| ||||||||
Amortization of Gain | 87.0 | - | 246.0 | - | ||||
Operating Income | 108.2 | 105.1 | 326.1 | 289.6 | ||||
Equity in Earnings of Transmission Affiliate | 12.1 | 10.5 | 23.6 | 21.2 | ||||
Other Income, Net | 7.9 | 19.8 | 18.5 | 33.0 | ||||
Interest Expense, Net | 35.4 | 42.0 | 74.6 | 84.7 | ||||
| ||||||||
Income From Continuing | ||||||||
Operations Before Income Taxes | 92.8 | 93.4 | 293.6 | 259.1 | ||||
Income Taxes | 34.5 | 35.7 | 112.1 | 100.3 | ||||
Income From Continuing Operations | 58.3 | 57.7 | 181.5 | 158.8 | ||||
Loss From Discontinued | ||||||||
Operations, Net of Tax | (0.3) | (0.2) | (0.3) | (0.4) | ||||
Net Income | $58.0 | $57.5 | $181.2 | $158.4 | ||||
Earnings Per Share (Basic) | ||||||||
Continuing operations | $0.50 | $0.49 | $1.55 | $1.35 | ||||
Discontinued operations | - | - | - | - | ||||
Total Earnings Per Share (Basic) | $0.50 | $0.49 | $1.55 | $1.35 | ||||
Earnings Per Share (Diluted) | ||||||||
Continuing operations | $0.49 | $0.49 | $1.53 | $1.34 | ||||
Discontinued operations | - | - | - | - | ||||
Total Earnings Per Share (Diluted) | $0.49 | $0.49 | $1.53 | $1.34 | ||||
Weighted Average Common | ||||||||
Shares Outstanding (Millions) | ||||||||
Basic | 116.9 | 116.9 | 116.9 | 117.0 | ||||
Diluted | 118.3 | 118.5 | 118.3 | 118.6 | ||||
Dividends Per Share of Common Stock | $0.27 | $0.25 | $0.54 | $0.50 | ||||
WISCONSIN ENERGY CORPORATION | ||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
June 30, 2008 | December 31, 2007 | |||||||
(Millions of Dollars) | ||||||||
Assets | ||||||||
Net Property, Plant and Equipment | $8,132.1 | $7,681.2 | ||||||
Investments | ||||||||
Restricted cash | 256.9 | 323.5 | ||||||
Equity investment in transmission affiliate | 253.1 | 238.5 | ||||||
Other | 36.2 | 42.7 | ||||||
Total Investments | 546.2 | 604.7 | ||||||
Current Assets | ||||||||
Cash and cash equivalents | 26.6 | 27.4 | ||||||
Restricted cash | 320.6 | 408.1 | ||||||
Accounts receivable | 395.7 | 361.8 | ||||||
Accrued revenues | 171.8 | 312.2 | ||||||
Materials, supplies and inventories | 279.0 | 361.3 | ||||||
Regulatory assets | 82.5 | 164.7 | ||||||
Prepayments and other | 246.6 | 214.2 | ||||||
Total Current Assets | 1,522.8 | 1,849.7 | ||||||
Deferred Charges and Other Assets | ||||||||
Regulatory assets | 887.7 | 961.6 | ||||||
Goodwill | 441.9 | 441.9 | ||||||
Other | 194.3 | 181.2 | ||||||
Total Deferred Charges and Other Assets | 1,523.9 | 1,584.7 | ||||||
Total Assets | $11,725.0 | $11,720.3 | ||||||
Capitalization and Liabilities | ||||||||
Capitalization | ||||||||
Common equity | $3,217.7 | $3,099.2 | ||||||
Preferred stock of subsidiary | 30.4 | 30.4 | ||||||
Long-term debt | 3,126.6 | 3,172.5 | ||||||
Total Capitalization | 6,374.7 | 6,302.1 | ||||||
Current Liabilities | ||||||||
Long-term debt due currently | 381.0 | 352.8 | ||||||
Short-term debt | 949.4 | 900.7 | ||||||
Accounts payable | 343.5 | 478.3 | ||||||
Regulatory liabilities | 444.6 | 563.1 | ||||||
Other | 231.3 | 207.9 | ||||||
Total Current Liabilities | 2,349.8 | 2,502.8 | ||||||
Deferred Credits and Other Liabilities | ||||||||
Regulatory liabilities | 1,255.9 | 1,314.3 | ||||||
Deferred income taxes - long-term | 662.7 | 551.7 | ||||||
Deferred revenue, net | 447.6 | 347.7 | ||||||
Pension and other benefit obligations | 270.5 | 310.1 | ||||||
Other | 363.8 | 391.6 | ||||||
Total Deferred Credits and Other Liabilities | 3,000.5 | 2,915.4 | ||||||
Total Capitalization and Liabilities | $11,725.0 | $11,720.3 | ||||||
WISCONSIN ENERGY CORPORATION | |||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||
(Unaudited) | |||||||||
Six Months Ended June 30 | |||||||||
2008 | 2007 | ||||||||
(Millions of Dollars) | |||||||||
Operating Activities | |||||||||
Net income | $181.2 | $158.4 | |||||||
Reconciliation to cash | |||||||||
Depreciation, decommissioning and amortization | 164.6 | 170.2 | |||||||
Deferred income taxes and investment tax credits, net | 123.8 | (23.6) | |||||||
Working capital and other | 104.3 | 150.6 | |||||||
Cash Provided by Operating Activities | 573.9 | 455.6 | |||||||
Investing Activities | |||||||||
Capital expenditures | (642.2) | (572.5) | |||||||
Change in restricted cash | 154.1 | - | |||||||
Other investing activities | (56.0) | (40.3) | |||||||
Proceeds from asset sales, net | 9.5 | 16.0 | |||||||
Cash Used in Investing Activities | (534.6) | (596.8) | |||||||
Financing Activities | |||||||||
Common stock issued (repurchased), net | (7.3) | (24.7) | |||||||
Dividends paid on common stock | (63.1) | (58.5) | |||||||
Change in debt, net | 30.4 | 224.6 | |||||||
Other financing activities, net | (0.1) | (0.5) | |||||||
Cash Used in Financing Activities | (40.1) | 140.9 | |||||||
Change in Cash | (0.8) | (0.3) | |||||||
Cash at Beginning of Period | 27.4 | 37.0 | |||||||
Cash at End of Period | $26.6 | $36.7 | |||||||