ATC Receives Wisconsin Commission Approvals.

Business Editors

WAUKESHA, Wis.--(BUSINESS WIRE)--Dec. 21, 2000

The Public Service Commission of Wisconsin today approved the formation, capitalization and operations of American Transmission Company, including the transfer of electric transmission assets from four of the state's investor-owned utility companies. The approval helps pave the way toward day one operations for ATC on Jan. 1.

Included in the transfer approval are transmission assets currently owned by Alliant-Wisconsin Power & Light, Edison Sault Electric, Madison Gas & Electric, South Beloit Water Gas and Electric, Wisconsin Electric and Wisconsin Public Service. Wisconsin Public Power Inc. is contributing cash to the new company in lieu of transmission assets. Additionally, the following municipal utilities and retail electric cooperatives plan to contribute either cash and/or transmission assets to the company and are pursuing separate approvals where required: Adams-Columbia Electric Cooperative, Algoma Utilities, Badger Power Marketing, Central Wisconsin Electric Cooperative, Kaukauna Electric, Manitowoc Public Utilities, Marshfield Electric and Water Department, Menasha Utilities, Oconto Falls Municipal Utilities, Plymouth Utilities, Reedsburg Electric and Water, Rock County Electric Cooperative, Sheboygan Light and Water, Sturgeon Bay Utilities, Sun Prairie Water and Light and Wisconsin Rapids Waterworks and Lighting.

"We're pleased with today's news from Madison," said ATC President and CEO Jose M. Delgado. "In approving the formation of the ATC, the Public Service Commission of Wisconsin has certified that the company was assembled as the Wisconsin Legislature intended when they passed reliability legislation last year. This decision validates the hard work of literally hundreds of people from companies across the state who have been working over the past 13 months to put this company together."

Formed under the provisions of the Reliability 2000 legislation contained in Gov. Tommy Thompson's 1999-2001 budget, ATC will provide high voltage transmission service to utilities and retail electric cooperatives. ATC will not own distribution or generation. Those facilities and functions remain with the participating utility companies, who will obtain transmission service from ATC.

The transfer includes land rights covering over 6,000 miles of transmission lines and more than 500 substations, comprised of over 30,000 separate parcels of real estate. The poles, wires, substations and other transmission facilities transferred have a book value in excess of $500 million.

The Federal Energy Regulatory Commission has approved the structure of the tariff under which ATC will provide service and is presently considering ATC's request for open access transmission rates. In addition, approval from the Securities and Exchange Commission is also required. All required approvals are expected by the end of the year.

"Today's decision is critical to allow ATC to begin providing service to our customers," said Delgado. "As the first for-profit stand-alone transmission company in the country, we will help enhance reliability and facilitate access to competitive energy sources for our utility customers in Wisconsin."

The American Transmission Company LLC will own, maintain, monitor and operate electric transmission equipment and provide service to customers when it begins formal operation. Visit our Web site at www.atcllc.com for more information on ATC, the energy access company.