Milwaukee

Recession-driven sales declines, particularly among large commercial and industrial customers, are affecting combination Milwaukee-based utility Wisconsin Energy (WE), but the company nevertheless reported increased profits for the first quarter compared to the same period in 2008.

Fuel costs, particularly the level and volatility of wholesale natural gas prices, cut into robust first quarter results for Milwaukee-based Wisconsin Energy, following record electricity and natural gas retail utility consumption in the winter quarter, the utility reported Tuesday.

Milwaukee-based Wisconsin Energy Corp. (WEC) is relying on its core gas and electric utility divisions to pull it through, while the company continues to take its lumps in asset sales and its non-utility energy business.

Milwaukee-based We Energies (formerly Wisconsin Energy Corp.) is delaying construction of a 38-mile natural gas lateral extension into the Guardian pipeline project until the spring of 2003, but Guardian will remain on schedule for an in-service date later this year, a spokeswoman said. We Energies is halting construction of the lateral through Jefferson and Waukesha counties until next year to resolve some permit and land acquisition issues.

Banking on a growing customer base in the upper Midwest,Milwaukee-based Wisconsin Energy Corp. this week unveiled a broad10-year, $6 billion manifesto to construct new power generationunits, refurbish or replace old facilities, improve itsdistribution system, cut its quarterly common stock dividend by50%, and double its share repurchase program.

The groundwork for an even more concentrated U.S. energyindustry was laid Monday as Wisconsin Energy Corp., a Milwaukee,WI-based electric and gas utility, announced plans to acquireneighboring gas distributor WICOR Inc. for about $1.51 billion incash, stock and debt, creating a major Midwest energy concern andthe 13th largest utility in the nation.