Exhibit 99.1
NEWS 13710 FNB Parkway
[NORTHERN BORDER PARTNERS, L.P. LOGO] RELEASE Omaha, NE 68154-5200
For Further Information
Contact:
Media Contact:
Beth Jensen
(402) 492-3400
Investor Contacts:
Ellen Konsdorf
Jan Pelzer
(877) 208-7318
NORTHERN BORDER PARTNERS, L.P. TO PURCHASE
REMAINING INTERESTS IN GUARDIAN PIPELINE, L.L.C.
FOR IMMEDIATE RELEASE: Thursday, March 30, 2006
OMAHA -- Northern Border Partners, L.P. (NYSE - NBP) announced today
that it will purchase additional 66 2/3 percent interests in Guardian Pipeline,
L.L.C. for approximately $77 million. The interests are currently held by
Wisconsin Energy Corporation (NYSE: WEC) (33 1/3 percent) and a subsidiary of
WPS Resources Corporation (NYSE: WPS) (33 1/3 percent). The purchase is expected
to close by the end of April 2006, subject to receipt of all necessary
approvals. Following completion of the transaction, Northern Border Partners,
through its subsidiaries, will own 100 percent of Guardian Pipeline, L.L.C.
Guardian Pipeline is a 143-mile interstate natural gas pipeline system
that commenced service in December 2002. It is currently capable of transporting
750,000 dekatherms per day (Dth/d) of natural gas from Joliet, Illinois to
Ixonia, Wisconsin.
On February 7, 2006, Guardian announced that it will expand and extend
the existing pipeline approximately 106 miles from Ixonia to the Green Bay area.
The expansion would bring an additional 537,200 Dth/d of capacity to eastern
Wisconsin. Two major Wisconsin utility companies have entered into natural gas
transportation agreements to support the project. Capital costs are estimated to
range between $200 million and $250 million and construction could begin after
approval by the Federal Energy Regulatory Commission, which is expected in late
2007. The project is targeted for completion in November 2008.
"We are excited about the opportunity to own 100 percent of the
existing Guardian pipeline as well as the opportunity to build, own and operate
Guardian's expansion and extension to Green Bay. Consolidating Guardian's
ownership adds strategic benefits to the Partnership as well as significant
fee-based revenue under long-term contracts," said Bill Cordes, chief executive
officer of Northern Border Partners. "As we move forward with this project, we
are pleased to be a part of new pipeline infrastructure that will provide
natural gas customers in Wisconsin with the necessary choices to support growth
and competition."
Upon completion of the transaction, Guardian's financial results will
be consolidated and reported in the Partnership's interstate pipeline segment
instead of reflected as equity earnings of unconsolidated affiliates on the
income statement.
Operating income and depreciation expense for Guardian for the full
year 2006 are expected to be $20 million to $23 million, and $6 million to $7
million, respectively.
Northern Border Partners, L.P. is a publicly traded partnership whose
purpose is to own, operate and acquire a diversified portfolio of energy assets.
The Partnership owns and manages natural gas pipelines and is engaged in the
gathering and processing of natural gas. More information may be found at
http://www.northernborderpartners.com.
Wisconsin Energy Corporation, based in Milwaukee, is a Fortune 500
energy company 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 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 more than 5,300 employees,
approximately 56,000 registered stockholders and more than $10 billion of
assets.
Wisconsin Public Service Corporation, a wholly owned subsidiary of WPS
Resources Corporation, is an investor-owned electric and natural gas utility
headquartered in Green Bay, Wisconsin. It serves approximately 420,000 electric
customers and 309,000 retail natural gas customers in residential, agricultural,
industrial, and commercial markets, as well as wholesale customers. The
company's service area includes northeastern and central Wisconsin, as well as
an adjacent portion of Upper Michigan. Information is available online at
www.wisconsinpublicservice.com
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Although Northern Border Partners, L.P.
believes that its expectations are based on reasonable assumptions, it can give
no assurance that such expectations will be achieved. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include: approval of the Hart-Scott-Rodino Act filing
by the Federal Trade Commission of the acquisition and satisfaction of other
closing conditions; receipt of certain approvals from the parties to the
precedent agreements; timely receipt of right-of-way, regulatory clearances and
approval for the expansion project; our ability to promptly obtain all necessary
materials and supplies required for construction; timely completion of
construction; competitive conditions in the overall natural gas market; and
performance of contractual obligations by the shippers.
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