Wisconsin Public Service Corporation, a subsidiary of Integrys Energy Group, Inc., Seeks Deferral of Costs Associated with Power Plant Lightning Strike
Integrys Energy Group, Inc. (NYSE: TEG), hosted a Financial Analyst Day meeting on Monday, October 8, 2007, during which Charlie Schrock, President of Wisconsin Public Service Corporation, a natural gas and electric subsidiary of Integrys Energy Group, stated that Wisconsin Public Service’s Weston 3 power plant was struck by lightning on October 6. Mr. Schrock indicated that, due to the strike, Weston 3 would be out of service for approximately three to four weeks for repair to the facility.
Based on more current information, the outage is now expected to last through November, and could extend beyond November depending on the extent of the repairs required for the affected equipment. The company is currently taking the necessary steps to complete a full inspection and damage assessment. Wisconsin Public Service currently estimates that it will incur at least $2.4 million of incremental pre-tax non-fuel operation and maintenance expenditures to repair and return Weston 3 to service. These costs do not include any repairs to the boiler, turbine, or generator rotating equipment that may be necessary. The company has insurance in place to cover the equipment damage resulting from the lightning strike that is expected to cover all costs, less a $1 million deductible.
Wisconsin Public Service currently estimates that it will incur at least $16 million of incremental pre-tax fuel and purchased power costs through November. These estimates are preliminary. The estimates will likely change as Wisconsin Public Service continues to evaluate the extent of damage to the Weston 3 plant components. Wisconsin Public Service has filed and is seeking approval from the Public Service Commission of Wisconsin for deferral of the Wisconsin retail portion of the costs associated with the lightning strike and will seek recovery in future rate proceedings. Assuming the company receives a favorable regulatory outcome, it is expected that there will be no material impact on net income.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.