NEWS RELEASE

Sault Ste. Marie, Michigan
March 6, 2009

Lee M. Baatz V.P. – Rates
906-632-5170

EDISON SAULT reduces power supply costs 
Lake Superior water levels result in higher hydro generation

Edison Sault Electric Company announced today that improved levels of hydroelectric generation in 2008 have enabled Edison Sault to reduce the Power Supply Cost Recovery (PSCR) factor which is included in its billings to customers. 

Edison Sault’s PSCR factor which was filed with the Michigan Public Service Commission (MPSC) in the fall of 2008 canceled the need for a scheduled 2010 surcharge. In March 2009, residential customers of Edison Sault who use 1,000 kWh will see nearly a four percent reduction in their monthly bill.  

Edison Sault’s residential rates are 12% below the average charged by other Michigan electric companies. Edison Sault’s actual costs for power supply incurred and amounts billed are subject to an annual reconciliation proceeding conducted by the MPSC.  

“Edison Sault’s objective is to pass these savings on to the customer now and minimize the amount of any reconciliation balance that may occur a year from now,” said Lee Baatz, assistant vice president-rates for Edison Sault.  

The hydro outlook for Edison Sault is substantially improved from conditions experienced just one and a half years ago. In the fall of 2007, Lake Superior was reaching all-time monthly recorded low elevation levels, resulting in decreased water outflows and low hydro generation levels. The low hydro generation levels were a major contributing factor to Edison Sault’s 2007 rate forecast between 2008 and 2010. 

Lake Superior water levels have now regained about a foot in elevation. Lake Superior ’s rebound has resulted in higher hydro generation levels in 2008 which has enabled Edison Sault to reduce rates. Despite the improvement, the water levels continue to remain below their long term average level.

Edison Sault engages in electricity generation and distribution to 23,000 residential, commercial and industrial customers in Michigan 's Eastern Upper Peninsula . Edison Sault generates and sells low-cost power from the company's historic hydro plant and the U.S. Army Corps of Engineers' hydro plant, both located on the St. Marys river system at Sault Ste. Marie, Mich.  

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), a component of the S&P 500, has more than $11 billion of assets, approximately 5,000 employees and more than 50,000 stockholders of record.

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Last modified: March 10, 2009