Dive Brief:
- Speaking to investors and analysts during his company's quarterly earnings call, Wisconsin Energy Corp. CEO Gale Klappa said the utility would be a "willing investor" in a new power plant in Michigan's Upper Peninsula.
- The Upper Peninsula region has been focused on a generation shortfall. Klappa's comments came in response to questions over whether the situation could impact the company's bid to take over Integrys Energy Group.
- The solution could involve up to 350 MW of gas-fired generation as well as the addition of renewable resources.
Dive Insight:
Midwest Energy News reports that during Wisconsin Energy's earnings call, CEO Klappa took a question asking whether or not Michigan's upper peninsula generation woes could have an impact on the company's proposed deal to buy Integrys Energy Group for $5.8 billion.
Just days before, Michigan Gov. Rick Snyder's administration filed comments with regulators calling the deal "fatally flawed."
“The level of concentration in both generation and transmission in the Upper Peninsula by one company as a result of this merger is a major concern,” Snyder's administration told the Michigan Public Service Commission.
The proposed acquisition will need approval from Michigan and three other state commissions, as well as federal regulators. A proposed generation solution likely includes 250 MW to 350 MW of combined-cycle gas-fired power and possibly renewable generation, Wisconsin Energy officials said according to Midwest Energy News.
“I think the preference of the administration is building additional generation in the UP, and we have indicated that we would be willing to be an investor as part of that solution," Klappa said.