For Release: 08/23/2013
Renewable World Energy Signs Letter of Intent to Buy Otter Rapids Dam from Wisconsin Public Service
Green Bay and Neshkoro, WI – Citing reasons that operation of its Otter Rapids hydroelectric power plant no longer fits the company's electric generation portfolio due to its size and location, Wisconsin Public Service (WPS), a subsidiary of Integrys Energy Group (NYSE: TEG), has entered into negotiations to sell the dam to Renewable World Energies (RWE), which owns and operates 22 hydroelectric facilities in the upper Midwest. The parties hope to arrive at an Asset Sale Agreement, following the due diligence of the buyer, by December 31, 2013. A sale is subject to regulatory approvals which would likely take six months.
The terms of the project’s license with the Federal Energy Reglatory Commission, which expires in 2037, requires that the Otter Rapids hydroelectric power plant continue to be operated as it has been.
RWE is dedicated to providing clean, reliable, safe, and renewable hydroelectric power. RWE is family owned and operated and its employees have more than 100 years of combined industry experience. RWE has redeveloped previous hydroelectric sites and rehabilitated original infrastructure turning non-productive assets into sustainable supplemental energy sources in many communities.
RWE was attracted to Otter Rapids because of its historical significance and its own capabilities to optimize the electrical generation of hydroelectric facilites of this vintage and size. RWE expects to make improvements that will keep Otter Rapids financially viable, as well. The dam holds back water that helps form the Eagle River Chain of Lakes, a popular recreational area surrounding Eagle River in northern Wisconsin. The sale should not affect any of the recreational or other opportunities provided by the Eagle Chain of Lakes.
For More Information, Contact:
- Kerry Spees, WPS Spokesperson
- Tom Berutti, RWE EVP and CFO
- Media Hotline 800-977-2250