WE Energies Buying WPS

Wisconsin Energy, the parent company of WE Energies announced on June 23 that it is buying Integrys Energy, the parent firm of the Wisconsin Public Service utility.

Wisconsin Energy of Milwaukee is purchasing Integrys Energy of Chicago for $5.7 billion in cash and stock. When debt is added in, the total deal is $9.1 billion.

The combined company will be named WEC Energy Group, Inc., and will be headquartered in metropolitan Milwaukee, with operating headquarters in Chicago, Green Bay and Milwaukee. The new company will honor all existing labor agreements and maintain historic levels of community involvement and charitable contributions.

Gale Klappa, chairman and CEO of Wisconsin Energy said, “We believe this combination provides a unique opportunity to create the premier regulated utility system in the Midwest, with superior service and competitive pricing for years to come. The operational and financial benefits to all of our stakeholders – from the customers and communities we serve, to the people we employ, to the shareholders who count on us to create value – are clear, achievable and compelling.”

The boards of both companies have approved the acquisition and the deal is expected to be finalized by next summer, subject to approvals from the shareholders of both companies, the Federal Energy Regulatory Commission, Federal Communications Commission, Public Service Commission of Wisconsin, Illinois Commerce Commission, Michigan Public Service Commission and the Minnesota Public Utilities Commission.

Both companies say it will create a larger and more diverse utility firm, with the strength to meet future electric needs. It will also create the nation’s eighth-largest natural gas distribution company. And it makes the newly merged utility the largest owner in the American Transmission Company, which operates electric transmission lines statewide.