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WPS To Purchase Power Plant In Kaukauna

Wisconsin Public Service Corp. has agreed to purchase a power plant in Kaukauna for $440 million, under a deal announced Monday.

The purchase of Fox Energy Company LLC would include $390 million for the 593-megawatt combined cycle generating facility in Kaukauna and $50 million for the early termination of the existing tolling agreement between WPS and Fox Energy.

"This deal makes sense for our customers on several levels," WPS President Chuck Cloninger said in a statement. "The acquisition will add diversity to our generation fleet, enhance supply and pricing options for the company, and allow us to better manage our generation assets and the overall cost of energy for our customers' benefit."

The move is expected to provide WPS with diversity in its mix of power plant fuels. Fox Energy is a dual-fuel facility, equipped to use fuel oil but expected to run primarily on natural gas. 

Fox Energy Company LLC is owned by subsidiaries of GE and Tyr Energy, Inc.

If approved by state and federal regulators, the deal is expected to close around April 1, 2013. 


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