Wisconsin Public Service Corp. (WPS), a subsidiary of Integrys Energy Group, announced it has agreed to buy Fox Energy Company LLC. The $440 million purchase includes $390 million for the Fox Energy Center, a 593-megawatt combined cycle generating facility in Kaukauna, and $50 million for the early termination of the existing tolling agreement between the entities.
The transaction is expected to close on or around April 1, 2013. The agreement is subject to the approval of the lenders who currently provide project financing for the sellers. The transaction is also subject to state regulatory approvals, including cost recovery, federal regulatory approvals, and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
“This deal makes sense for our customers on several levels,” said WPS president Chuck Cloninger. “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.”
Fox Energy Center is a dual-fuel facility, equipped to use fuel oil but expected to run primarily on natural gas. Adding this plant to its portfolio will give WPS a more balanced mix of electric generation, including coal, natural gas, hydroelectric, wind, and other renewable sources.
Fox Energy Company LLC is owned by subsidiaries of GE and Tyr Energy, Inc.