Does this amendment change Wisconsin Energy's reported financial results?

No. According to the filing, the amendment corrects line descriptions in the Financing Activities section of the Consolidated Statement of Cash Flows and adds the Net Income line to the 1998 Consolidated Common Stock Equity Statement. The remainder of Item 8, including the financial statements and notes, is unchanged.

How did 1998 earnings compare with prior years?

Net income was $188.1 million, or $1.65 per share, in 1998, compared with $60.7 million ($0.54 per share) in 1997 and $218.1 million ($1.97 per share) in 1996. The 1997 results included a $30.7 million merger-cost write-off and a $30.0 million impairment on the Kimberly cogeneration equipment.

What is the status of the planned Connecticut power plant purchase?

WISVEST Connecticut, LLC agreed in October 1998 to buy the Bridgeport Harbor Station (590 megawatts active capacity) and the 466-megawatt New Haven Harbor Station from The United Illuminating Company for $272 million. The sale is expected to close in the second quarter of 1999, contingent on regulatory approvals, and WISVEST expects to finance it through nonrecourse project financing and an equity contribution from Wisconsin Energy.

How much debt did the company carry and what drove the increase?

Total long-term debt was $1.75 billion at December 31, 1998, up from $1.53 billion at year-end 1997. The filing cites 1998 issuances including $150 million of 6-1/2% debentures due 2028 by Wisconsin Electric, $25 million and $100 million of medium-term notes by Wisconsin Energy Capital Corporation, and $18 million of WISPARK bank financing, partly offset by debt retirements of $93.0 million.

What environmental and nuclear obligations are disclosed?

The filing estimates future manufactured gas plant remediation costs at $25 million to $40 million over the next ten years across eleven sites. For Point Beach Nuclear Plant, the estimated decommissioning cost in 1998 dollars is $489 million, and approximately $1.8 billion is projected to be spent over a thirty-three year period beginning in 2010.

WEC 10-K FY1998 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K/A filed April 15, 1999. Cited figures are marked; the original filing is the authoritative source.

Wisconsin Energy Corporation's Form 10-K/A (Amendment No. 1) for fiscal year 1998 does not restate the company's results; it corrects line descriptions in the Consolidated Statement of Cash Flows (1996–1998) and adds the missing "Net Income" line to the 1998 Consolidated Common Stock Equity Statement.

The remainder of Item 8, including the financial statements, notes and the PricewaterhouseCoopers report dated January 27, 1999, is unchanged. Per the filing, the company reported 1998 net income of $188.1 million^a ($1.65 basic and diluted EPS), down from $218.1 million in 1996 but up from $60.7 million in 1997, which included a $30.7 million merger-cost write-off and a $30.0 million equipment impairment. Operating revenues rose to $1.98 billion in 1998 from $1.79 billion in 1997, led by electric revenues of $1.66 billion.

Total assets grew to $5.36 billion^b from $5.04 billion, and long-term debt increased to $1.75 billion from $1.53 billion, reflecting several 1998 medium-term note and debenture issuances. Cash provided by operating activities was $459.9 million, and construction expenditures were $399.0 million. The filing also discloses pending and ongoing items relevant to investors: WISVEST Connecticut, LLC's agreement to purchase the Bridgeport Harbor and New Haven Harbor stations for $272 million, expected to close in the second quarter of 1999 subject to regulatory approvals; the ESELCO, Inc. acquisition accounted for as a pooling of interests; and remediation of eleven former manufactured gas plant sites with estimated future costs of $25 million to $40 million.

02—Key points

Key Highlights

1998 net income of $188.1 million, or $1.65 per share basic and diluted, versus $60.7 million ($0.54) in 1997 and $218.1 million ($1.97) in 1996.
Total operating revenues of $1.98 billion in 1998, up from $1.79 billion in 1997; electric revenues were $1.66 billion.
Total assets of $5.36 billion at December 31, 1998, compared with $5.04 billion a year earlier.
Long-term debt rose to $1.75 billion from $1.53 billion, including the June 1998 $150 million 6-1/2% debentures due 2028 and several Wisconsin Energy Capital Corporation medium-term note issues.
Pending acquisition by WISVEST Connecticut, LLC of two fossil-fueled plants (Bridgeport Harbor and New Haven Harbor) for $272 million, expected to close in the second quarter of 1999.
Acquisition of ESELCO, Inc. (parent of Edison Sault Electric) in May 1998 by issuing 2,407,275 shares, accounted for as a pooling of interests.
The amendment itself only corrects cash flow statement line descriptions and adds a Net Income line to the common stock equity statement; no financial figures were changed.

03—Questions

Frequently Asked Questions

Does this amendment change Wisconsin Energy's reported financial results?
No. According to the filing, the amendment corrects line descriptions in the Financing Activities section of the Consolidated Statement of Cash Flows and adds the Net Income line to the 1998 Consolidated Common Stock Equity Statement. The remainder of Item 8, including the financial statements and notes, is unchanged.
How did 1998 earnings compare with prior years?
Net income was $188.1 million, or $1.65 per share, in 1998, compared with $60.7 million ($0.54 per share) in 1997 and $218.1 million ($1.97 per share) in 1996. The 1997 results included a $30.7 million merger-cost write-off and a $30.0 million impairment on the Kimberly cogeneration equipment.
What is the status of the planned Connecticut power plant purchase?
WISVEST Connecticut, LLC agreed in October 1998 to buy the Bridgeport Harbor Station (590 megawatts active capacity) and the 466-megawatt New Haven Harbor Station from The United Illuminating Company for $272 million. The sale is expected to close in the second quarter of 1999, contingent on regulatory approvals, and WISVEST expects to finance it through nonrecourse project financing and an equity contribution from Wisconsin Energy.
How much debt did the company carry and what drove the increase?
Total long-term debt was $1.75 billion at December 31, 1998, up from $1.53 billion at year-end 1997. The filing cites 1998 issuances including $150 million of 6-1/2% debentures due 2028 by Wisconsin Electric, $25 million and $100 million of medium-term notes by Wisconsin Energy Capital Corporation, and $18 million of WISPARK bank financing, partly offset by debt retirements of $93.0 million.
What environmental and nuclear obligations are disclosed?
The filing estimates future manufactured gas plant remediation costs at $25 million to $40 million over the next ten years across eleven sites. For Point Beach Nuclear Plant, the estimated decommissioning cost in 1998 dollars is $489 million, and approximately $1.8 billion is projected to be spent over a thirty-three year period beginning in 2010.

04—Continue

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