Wec Energy Group Inc
Wisconsin Energy Corporation was incorporated in the State of Wisconsin in 1981
and became a diversified holding company in 1986. We maintain our principal executive
offices in Milwaukee, Wisconsin. Unless qualified by their context when used in
this document, the terms Wisconsin Energy, the Company, our, us or we refer to
the holding company and all of its subsidiaries.
We conduct our operations primarily in two operating segments: a utility energy
segment and a non-utility energy segment. Our primary subsidiaries are Wisconsin
Electric, Wisconsin Gas, Edison Sault and We Power.
Utility Energy Segment: Our utility energy segment consists of: Wisconsin Electric,
Wisconsin Gas and Edison Sault.
Non-Utility Energy Segment: Our non-utility energy segment consists primarily
of We Power. We Power was formed in 2001 to design, construct, own and lease
to Wisconsin Electric the new generating capacity included in our PTF strategy.
Electric Supply
Our electric supply strategy is to provide our customers with a diverse fuel
mix that is expected to maintain a stable, reliable and affordable supply of
electricity. We supply electricity to our customers from power plants that we
own. We supplement our internally generated power supply with long-term power
purchase agreements and through spot purchases in the MISO Energy Markets.
Coal-Fired Generation
Coal Supply: We diversify the coal supply for our power plants by purchasing
coal from mines in northern and central Appalachia as well as from various western
mines.
Natural Gas-Fired Generation
Our natural gas-fired generation consists of five operating plants .
Oil-Fired Generation
Fuel oil is used for the combustion turbines at the Germantown Power Plants
units 1-4. It is also used for boiler ignition and flame stabilization at the
Presque Isle Power Plant.
Renewable Generation
Wisconsin Electric: Wisconsin Electric's hydroelectric generating system consists
of thirteen operating plants.
Power Purchase Commitments
We enter into short and long-term power purchase commitments to meet a portion
of our anticipated electric energy supply needs.
Gas Deliveries
Our gas utility business is highly seasonal due to the heating requirements
of residential and commercial customers. Annual gas sales are also impacted
by the variability of winter temperatures.
Competition
Competition in varying degrees exists between natural gas and other forms of
energy available to consumers. A number of our large commercial and industrial
customers are dual-fuel customers that are equipped to switch between natural
gas and alternate fuels. We are allowed to offer lower-priced gas sales and
transportation services to dual-fuel customers. Under gas transportation agreements,
customers purchase gas directly from gas marketers and arrange with interstate
pipelines and us to have the gas transported to their facilities. We earn substantially
the same margin (difference between revenue and cost of gas) whether we sell
and transport gas to customers or only transport their gas.
Our ability to maintain our share of the industrial dual-fuel market (the market
that is equipped to use gas or other fuels) depends on our success and the success
of third-party gas marketers in obtaining long-term and short-term supplies
of natural gas at competitive prices compared to other sources and in arranging
or facilitating competitively-priced transportation service for those customers
that desire to buy their own gas supplies.
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