CMS Energy has sold its one-third interest in the 142-mile Guardian Pipeline LLC to a subsidiary of WPS Resources Corp. for $26 million. Wisconsin Energy and Viking Gas Transmission each still hold their one-third interests in the pipeline, which began operations in December 2002. The pipe begins near Joliet, IL, and transports gas into southern Wisconsin. Guardian can transport 750 MMcf/d.

“Even though our principal utility doesn’t connect to it, we’ve supported the Guardian Pipeline since it was first proposed because it provided potential benefits of competition to current and future customers in the state of Wisconsin,” said Joe O’Leary, CFO of WPS. “We think it will be a great addition to our business holdings. The pipeline is critical to natural gas reliability in Wisconsin and over 88% of its capacity is under contract through 2012.”

CMS plans to use the sale’s proceeds to reduce its debt. Also, because of the sale, $62.5 million of cash that CMS had committed to collateralize a letter of credit was released.

“The sale of our Guardian interest supports our back-to-basics strategy, which is focused on making us a smaller, stronger company with more predictable earnings and less business risk,” said Ken Whipple, CEO of CMS.

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