Klappa Cites Customer Satisfaction, Total Shareholder Return and Stronger Earnings in Annual Meeting Review of 2010 Highlights

MILWAUKEE, May 5, 2011 /PRNewswire/ -- At Wisconsin Energy's (NYSE: WEC) annual meeting of stockholders held today at Concordia University Wisconsin, Chairman, President and Chief Executive Gale Klappa described the successful completion of the company's Power the Future plan and called 2010 a year of exceptional progress.

Klappa noted that a modest economic recovery and a return to warm summer temperatures helped grow total sales of electricity to retail customers by 6 percent. Electric energy use by large commercial and industrial customers increased by 9 percent, with the strongest rebound in energy demand from iron ore mining and specialty steel producers. Small commercial and industrial usage rose by 2.9 percent.  

Klappa cited the following 2010 highlights:

Earnings

• The highest net income in company history.
• Earnings from continuing operations of $1.92 per share – a 21 percent increase over the $1.59 per share recorded in 2009. (Earnings reflect the two-for-one stock split in March 2011.)

Shareholder return

• Wisconsin Energy's total return to shareholders has significantly outperformed the Dow Jones Industrial Average, the S&P 500, NASDAQ, the S&P 500 Electric Utility Index and the Philadelphia Utility Index over the past 10 years. Wisconsin Energy's total shareholder return, assuming reinvested dividends, was 31.6 percent over three years, 71.3 percent over five years, 110.2 percent over seven years and 243 percent over 10 years.

Dividend increase

• Raised the dividend by 30 percent in January 2011, to an annual rate of $1.04 per share, adjusted for the two-for-one stock split.
• With the company's Power the Future plan now complete, Klappa explained that the company plans to pay out 50 percent of its earnings in dividends this year.
• Over the period from 2012 to 2015, Klappa said the goal is to increase the company's payout to 60 percent of earnings – a level more competitive with other regulated energy companies. Beginning in 2012, this policy should support annual dividend increases in the 8 to 9 percent range over the forecast period.

Customer satisfaction

• For the fourth quarter of 2010, the company achieved the best customer satisfaction ratings since the merger of Wisconsin Electric and Wisconsin Gas in 2000.
• The company's principal utility – We Energies – also ranked in the top quartile nationally in a benchmarking study of customer satisfaction among the largest customers of 60 U.S. utilities.

Company performance

• Named for the fourth year in a row as one of the nation's best corporate citizens by Corporate Responsibility Magazine. The publication evaluates approximately 1,000 publicly held companies on the basis of environmental performance, employee relations, philanthropy, finance and governance practices.
• Received a perfect 10 rating for the 25th consecutive time for its corporate governance practices. Wisconsin Energy is the only company, out of more than 4,000 companies rated worldwide, to consistently earn this distinction from GovernanceMetrics International, an independent rating agency.
• Honored as one of the nation's most military friendly employers.

Power the Future

• The largest construction program in state history is now complete – bringing four major new generating units online between 2001 and 2011.
• The second 615-megawatt unit at the company's Oak Creek expansion achieved commercial operation on Jan. 12, 2011.
• Klappa estimated the direct impact to the Wisconsin economy of the company's Power the Future plan totaled $1.32 billion for labor and suppliers.

Next steps

With Power the Future complete, Klappa outlined the company's next important initiative – a plan called Power the Future 2. The effort calls for an investment of up to $3.4 billion from now through 2015 to modernize the company's electric and natural gas infrastructure, meet changing environmental standards and add clean, renewable energy to its generation fleet.

In addition, to maintain appropriate financial strength, Klappa said the company retired $450 million of long-term debt that matured on April 1, 2011.

Finally, Klappa announced that the Wisconsin Energy board of directors approved a share repurchase plan that authorizes management – over the period from now through the end of 2013 – to buy back up to $300 million of Wisconsin Energy common stock through open market purchases or in privately negotiated transactions.

Stockholder actions

During the meeting, stockholders re-elected the following directors to terms expiring at the 2012 annual meeting: John F. Bergstrom, Barbara L. Bowles, Patricia W. Chadwick, Robert A. Cornog, Curt S. Culver, Thomas J. Fischer, Gale E. Klappa, Ulice Payne, Jr. and Frederick P. Stratton, Jr.  

Stockholders also voted to:

• Initiate the process to elect directors by majority vote in uncontested elections.
• Ratify Deloitte & Touche LLP as independent auditors for 2011.
• Approve amendments to the Wisconsin Energy Corporation 1993 Omnibus Stock Incentive Plan, as amended and restated.
• Approve the compensation of the company's named executive officers as disclosed in the proxy statement (say-on-pay).
• Hold future say-on-pay votes annually.

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

A replay of the 2011 Annual Meeting of Stockholders is available on the Wisconsin Energy website – www.wisconsinenergy.com.

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 (www.wisconsinenergy.com), a component of the S&P 500, has more than $13 billion of assets, approximately 4,600 employees and 44,700 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 dividend payouts, dividend increases, share repurchases, investments in infrastructure and other projects to meet environmental standards, construction costs and capital expenditures and other matters. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "guidance," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should" or similar terms or variations of these terms.

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: unusual weather conditions; catastrophic weather-related or terrorism-related damage; availability of electric generating facilities; changes in purchased power costs; changes in coal or natural gas prices and supply and transportation availability; the ability to recover fuel and purchased power costs; nonperformance by purchased power or natural gas suppliers under existing contracts; environmental incidents; key personnel changes; inflation rates; the economic climate in the company's service territories; customer growth and declines; customer business conditions, including demand for their products and services; timing, resolution and impact of pending and future rate cases and other regulatory decisions; construction risks; changes in the interpretation or enforcement of permit conditions by permitting agencies; equity and bond market fluctuations and events in the global credit markets that may affect the availability and cost of capital; the investment performance of the company's pension and other post-retirement trusts; current and future litigation, regulatory investigations, proceedings or inquiries, including the pending lawsuit against the Wisconsin Energy Corporation Retirement Account Plan and Federal Energy Regulatory Commission matters; the impact of recent and future federal, state and local legislative and regulatory changes; foreign, governmental, economic, political and currency risks; 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, 2010 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.

SOURCE Wisconsin Energy Corporation