SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) July 14, 1999
Commission Registrant; State of Incorporation IRS Employer
File Number Address; and Telephone Number Identification No.
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1-9057 WISCONSIN ENERGY CORPORATION 39-1391525
(A Wisconsin Corporation)
231 West Michigan Street
P.O. Box 2949
Milwaukee, WI 53201
(414) 221-2345
1-1245 WISCONSIN ELECTRIC POWER COMPANY 39-0476280
(A Wisconsin Corporation)
231 West Michigan Street
P.O. Box 2046
Milwaukee, WI 53201
(414) 221-2345
FORM 8-K
WISCONSIN ELECTRIC POWER COMPANY
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ITEM 5. OTHER EVENTS
ETSM Property/City of West Allis
As previously reported, iron cyanide-bearing wastes, believed to be
manufactured gas plant process wastes, were found at two sites in West
Allis, Wisconsin. One site is on property formerly owned by Kearney &
Trecker Corporation, which was sold to others, including Wisconsin Electric
Power Company, the principal utility subsidiary of Wisconsin Energy
Corporation, prior to the discovery of the wastes. The other is the
"Greenfield Avenue" site owned by the City of West Allis. Several years
ago materials were removed from the Kearney & Trecker site, with Wisconsin
Electric and the other current owners paying for disposal of materials
found on their respective portions of the site.
On July 25, 1996, Giddings & Lewis Inc., Kearney & Trecker and the
City of West Allis filed an action for damages in the Milwaukee County
Circuit Court against Wisconsin Electric, alleging that Wisconsin Electric
was responsible for the deposition of the material and liable to the
plaintiffs. Investigations into the potential source of the waste lead
Wisconsin Electric to believe that it was not the source of this waste.
Wisconsin Electric joined Wisconsin Gas Company, an unaffiliated natural
gas utility which had extensive gas manufacturing operations in the
Milwaukee area, as a third party defendant. (On June 27, 1999, as
previously reported, Wisconsin Energy and WICOR, Inc., the parent of
Wisconsin Gas Company, entered into a merger agreement providing for a
strategic business combination of Wisconsin Energy and WICOR.)
A trial was held and on July 14, 1999, a jury verdict was rendered
against Wisconsin Electric awarding the plaintiffs $4.5 million as actual
damages for clean-up costs and loss of property value. The jury further
awarded the plaintiffs $100 million in punitive damages against Wisconsin
Electric. The jury found in its verdict that Wisconsin Gas Company played
no role in dumping any contaminated wastes at the two sites.
Post-trial motions are scheduled to be heard in August 1999.
Wisconsin Electric is preparing to file post trial motions on the grounds
that the jury verdict is not supported by the evidence or the law and that
the award of punitive damages was unwarranted and, in the opinion of
management, based in part on the advice of legal counsel, should be
reversed. As such, Wisconsin Electric has recorded no reserve for
potential damages from this suit. Wisconsin Electric also intends to take
all other actions available to have the verdict overturned
FORM 8-K
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
WISCONSIN ENERGY CORPORATION
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(Registrant)
/s/Calvin H. Baker
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Date: August 2, 1999 Calvin H. Baker, Treasurer and
Chief Financial Officer
WISCONSIN ELECTRIC POWER COMPANY
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(Registrant)
/s/Calvin H. Baker
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Date: August 2, 1999 Calvin H. Baker,
Vice President - Finance and
Chief Financial Officer