Wisconsin Energy posts third quarter and nine month results

         Wisconsin Energy posts third quarter and nine month results

PR Newswire

MILWAUKEE, Oct. 31, 2012

MILWAUKEE, Oct. 31, 2012 /PRNewswire/ --Wisconsin Energy (NYSE: WEC) today
reported net income from continuing operations of $156.1 million or 67 cents a
share for the third quarter of 2012. This compares with net income from
continuing operations of $129.8 million or 55cents a share for the third
quarter of 2011.

For the first nine months of 2012, the company recorded net income from
continuing operations of $447.5 million or $1.92 a share – up from $398.7
million or $1.69 a share in the corresponding period a year ago.

Factors contributing to the positive third quarter performance include lower
operation and maintenance costs, warm summer temperatures, stronger recovery
of fuel costs, and the positive impact of the company's share repurchase

For the third quarter, consumption of electricity by small commercial and
industrial customers grew by 0.7 percent, while residential electricity use
was down by 1.2 percent.

"Our third quarter performance was strengthened by near record energy demand
in early July as temperatures rose to the 100-degree mark across the region,"
said Gale Klappa, chairman, president and chief executive officer."However,
high humidity and warmer than normal temperatures persisted throughout the
third quarter last year. So our residential sales registered a small decline
compared to the third quarter a year ago," Klappa added.

Electricity use by large commercial and industrial customers dropped by 8.3
percent. The decline was driven by lower sales stemming from a planned outage
at a major iron ore mine and two customers adding self-generation. Excluding
sales to the mines and the two customers that added self-generation,
electricity use by large commercial and industrial customers rose by 0.6
percent compared to the third quarter a year ago.

"While our large commercial and industrial sales were down, they were in line
with our expectations. Our largest customer in Michigan experienced a planned
outage that began in the second quarter and continued through the third
quarter," said Klappa. "The planned outage is now complete, and demand from
the iron ore mines has returned to normal levels."

At the end of September, the company was serving approximately 3,300 more
electric customers and 5,200 more natural gas customers than a year ago.

"From customer satisfaction to network reliability, our companies are
performing at ahigh level, and we continue to make excellent progress on our
biomass-fueled power plant in northern Wisconsin. Construction of the
50-megawatt facility is nearly 50 percent complete. We're on budget and
targeting an in-service date by the end of 2013," Klappa said.

Earnings per share listed in this news release are on a fully diluted basis.

Conference call
A conference call is scheduled for 1 p.m. Central time on Oct. 31, 2012. The
presentation will review 2012 third quarter earnings and discuss the company's
future outlook.

All interested parties, including stockholders, news media and the general
public, are invited to listen to the presentation. The conference call may be
accessed by dialing866-439-9410 up to 15 minutes before the call begins.
International callers may dial 706-643-5658. The conference ID is 37849959.
Access also may be gained through the company's website
(wisconsinenergy.com). Click 'Third Quarter Earnings Release and Conference
Call' and then click 'Go to webcast.' In conjunction with this earnings
announcement, Wisconsin Energy will post on its website a package of detailed
financial information on its third quarter performance. The materials will be
available at 6:30 a.m. Central time on Oct. 31, 2012.

A replay will be available on the website and by phone after the
presentation. Access to the webcast replay will be available on the website
about two hours after the presentation. Access to a phone replay also will be
available approximately two hours after the presentation and remain accessible
through Nov. 14, 2012. Domestic callers should dial855-859-2056.
International callers should dial 404-537-3406. The replay conference ID is

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 utility is We
Energies. The company's other major subsidiary, We Power, designs, builds and
owns electric generating plants.

Wisconsin Energy Corporation (wisconsinenergy.com), a component of the S&P
500, has nearly $14billion of assets, approximately 4,600 employees and more
than 42,000 stockholders of record.

Forward-looking Statements

Certain statements contained in this press release are "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. These statements are
based upon management's current expectations and are subject to risks and
uncertainties that could cause our actual results to differ materially from
those contemplated in the statements. Readers are cautioned not to place
undue reliance on these statements. Forward-looking statements include, among
other things, statements concerning management's expectations and projections
regarding the completion of the biomass facility.

Actual results may differ materially from those set forth in forward-looking
statements. In addition to the assumptions and other factors referred to
specifically in connection with these statements, factors that could cause
actual results to differ materially from those contemplated in any
forward-looking statements include, but are not limited to: shortages of, the
ability to obtain or the cost of labor or materials; the ability of the
contractors to perform under their contracts; strikes; adverse weather
conditions; the ability to obtain necessary operating permits in a timely
manner; legal challenges; changes in applicable law or regulations; adverse
interpretation or enforcement of permit conditions, laws and regulations by
courts or the permitting agencies; and other factors described under the
heading "Factors Affecting Results, Liquidity and Capital Resources" in
Management's Discussion and Analysis of Financial Condition and Results of
Operations and under the headings "Cautionary Statement Regarding
Forward-Looking Information" and "Risk Factors" contained in the company's
Form 10-K for the year ended Dec. 31, 2011 and in subsequent reports filed
with the Securities and Exchange Commission.

The company expressly disclaims any obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.

Tables Follow

                               Three Months Ended       Nine Months Ended

                               September 30            September 30
                               2012         2011        2012        2011
                               (Millions of Dollars, Except Per Share Amounts)
Operating Revenues             $  1,039.3   $ 1,052.8   $ 3,175.2   $ 3,373.2
Operating Expenses
Fuel and purchased power       336.4        350.9       848.9       904.5
Cost of gas sold               55.5         69.2        368.0       533.4
Other operation and            244.6        296.9       798.8       909.3
Depreciation and amortization  91.8         82.6        269.7       246.2
Property and revenue taxes     30.4         28.9        90.9        85.5
Total Operating Expenses       758.7        828.5       2,376.3     2,678.9
Operating Income               280.6        224.3       798.9       694.3
Equity in Earnings of          17.1         15.7        48.9        46.4
Transmission Affiliate
Other Income, net              9.0          16.2        33.6        43.1
Interest Expense, net          60.9         56.8        181.3       177.6
Income from Continuing         245.8        199.4       700.1       606.2
Operations Before Income Taxes
Income Tax Expense             89.7         69.6        252.6       207.5
Income from Continuing         156.1        129.8       447.5       398.7
Income from Discontinued       —            —           —           11.5
Operations, Net of Tax
Net Income                     $  156.1     $ 129.8     $ 447.5     $ 410.2
Earnings Per Share (Basic)
Continuing operations          $  0.68      $ 0.56      $ 1.94      $ 1.71
Discontinued operations        —            —           —           0.05
Total Earnings Per Share       $  0.68      $ 0.56      $ 1.94      $ 1.76
Earnings Per Share (Diluted)
Continuing operations          $  0.67      $ 0.55      $ 1.92      $ 1.69
Discontinued operations        —            —           —           0.05
Total Earnings Per Share       $  0.67      $ 0.55      $ 1.92      $ 1.74
Weighted Average Common Shares
Outstanding (Millions)
Basic                          230.4        232.2       230.4       233.2
Diluted                        232.9        234.9       233.1       236.0
Dividends Per Share of Common  $  0.30      $ 0.26      $ 0.90      $ 0.78

                                         September30, 2012  December31, 2011
                                         (Millions of Dollars)
Property, Plant and Equipment, Net       $    10,438.8       $   10,160.4
Equity investment in transmission        372.5               349.7
Other                                    36.4                43.6
Total Investments                        408.9               393.3
Current Assets
Cash and cash equivalents                13.0                14.1
Restricted cash                          9.5                 45.5
Accounts receivable, net                 298.6               349.4
Income taxes receivable                  48.4                155.1
Accrued revenues                         178.5               252.7
Materials, supplies and inventories      342.1               382.0
Prepayments and other                    194.7               227.4
Total Current Assets                     1,084.8             1,426.2
Deferred Charges and Other Assets
Regulatory assets                        1,280.4             1,238.7
Goodwill                                 441.9               441.9
Other                                    179.9               201.6
Total Deferred Charges and Other Assets  1,902.2             1,882.2
Total Assets                             $    13,834.7       $   13,862.1
Capitalization and Liabilities
Common equity                            $    4,147.2        $   3,963.3
Preferred stock of subsidiary            30.4                30.4
Long-term debt                           4,240.6             4,614.3
Total Capitalization                     8,418.2             8,608.0
Current Liabilities
Long-term debt due currently             381.1               32.6
Short-term debt                          453.2               669.9
Accounts payable                         277.7               325.7
Accrued payroll and benefits             101.5               105.9
Other                                    173.5               230.4
Total Current Liabilities                1,387.0             1,364.5
Deferred Credits and Other Liabilities
Regulatory liabilities                   872.9               902.0
Deferred income taxes - long-term        1,994.2             1,696.1
Deferred revenue, net                    714.1               754.5
Pension and other benefit obligations    149.6               222.7
Other                                    298.7               314.3
Total Deferred Credits and Other         4,029.5             3,889.6
Total Capitalization and Liabilities     $    13,834.7       $   13,862.1

                                                Nine Months Ended September 30
                                                2012              2011
                                                (Millions of Dollars)
Operating Activities
Net income                                      $   447.5         $   410.2
Reconciliation to cash
Depreciation and amortization                   278.2             248.9
Regulatory amortization in O&M                  45.0              156.0
Contributions to qualified benefit plans        (100.0)           (257.4)
Deferred income taxes and investment tax        249.6             215.9
credits, net
Working capital and other                       72.1              54.0
Cash Provided by Operating Activities           992.4             827.6
Investing Activities
Capital expenditures                            (477.5)           (612.2)
Investment in transmission affiliate            (13.1)            (6.6)
Proceeds from asset sales                       3.0               38.5
Change in restricted cash                       36.0              (37.2)
Other, net                                      (39.8)            (32.8)
Cash Used in Investing Activities               (491.4)           (650.3)
Financing Activities
Common stock issued (repurchased), net          (59.7)            (100.7)
Dividends paid on common stock                  (207.4)           (182.0)
Change in debt, net                             (235.0)           94.1
Other, net                                      —                 1.9
Cash Used in Financing Activities               (502.1)           (186.7)
Change in Cash                                  (1.1)             (9.4)
Cash at Beginning of Period                     14.1              24.5
Cash at End of Period                           $   13.0          $   15.1

SOURCE Wisconsin Energy Corporation

Website: http://www.wisconsinenergy.com
Contact: Brian Manthey, news media, +1-414-221-4444,
brian.manthey@we-energies.com; or Colleen F. Henderson, CFA, analysts,
+1-414-221-2592, colleen.henderson@wisconsinenergy.com
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