Cloverland closer to acquiring Edison Sault Electric

NEWS RELEASE

CLOVERLAND ELECTRIC COOPERATIVE

***************************** Cloverland Electric and WEC seek MPSC approval of Edison Sault transaction

Petition filed before Michigan Public Service Commission is next step in regulatory approval process

LANSING, MI - (January 27) - Cloverland Electric Cooperative and Wisconsin Energy Corporation (NYSE: WEC) filed a joint petition before the Michigan Public Service Commission (MPSC) on January 26 seeking approval of the companies’ proposed transaction involving Edison Sault Electric Company.

Under the terms of a definitive agreement announced October 28, 2009, Cloverland Electric would acquire Edison Sault Electric from Wisconsin Energy Corporation for approximately $61 million.

The transaction is contingent upon regulatory approvals from the MPSC, the Federal Energy Regulatory Commission and the USDA Rural Utilities Service.

Current members of Cloverland Electric overwhelmingly approved the proposed acquisition at a special meeting in November 2009, with 96 percent of votes in favor.

“This filing with the MPSC is the next step in our effort to build a stronger, more efficient and locally owned and controlled utility serving the eastern U.P.,” said Dan Dasho, executive vice president and general manager of Cloverland Electric. “We look forward to working with the MPSC and our friends at Wisconsin Energy over the  next few months to secure regulatory approval and begin welcoming thousands of new members to the Cloverland Electric family.”

The combined utility would serve approximately 42,000 accounts, roughly doubling the size of the not-for-profit, consumer-owned electric cooperative.

The acquisition would improve Cloverland Electric’s operational efficiency and preserve local control of energy resources, including the Edison Sault hydroelectric plant in Sault Ste. Marie.

Presently, the service territories of Cloverland Electric and Edison Sault Electric overlap, respectively serving rural and urban areas in the eastern portion of Michigan’s Upper Peninsula.

Should the transaction receive all requisite approvals, Edison Sault Electric customers will become member-owners of Cloverland Electric and enjoy the benefits of cooperative ownership, including voting rights, board representation and the opportunity for patronage capital refunds - the margins of a cooperative that are returned to members over time.

Until the transaction is complete, both companies will serve their respective consumers as they always have, and consumers should continue to direct all questions and other communication to their current utility provider.

Established in 1938, Cloverland Electric Cooperative is a not-for-profit utility located in Michigan’s Upper Peninsula delivering safe, reliable and affordable electricity to approximately 19,500 homes and businesses in Chippewa, Mackinac, Luce, and Schoolcraft counties.

The cooperative is headquartered in Dafter and maintains district offices in DeTour and Newberry.

In addition to its principal electric business, Cloverland Electric operates Lighthouse.Net, a wholly-owned subsidiary providing broadband service to the Upper Peninsula.

For more information, visit www.cloverland.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 utilities are We Energies and Edison Sault Electric.

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

For more information, visit www.wisconsinenergy.com.

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