Home > News & Information > News Releases >

For Release: 07/28/2010

UPPCO Solicits Bids for Escanaba River Hydro Plants

Ishpeming, MI - Upper Peninsula Power Company (UPPCO), a subsidiary of Integrys Energy Group (NYSE: TEG), has issued a Request for Proposal from parties that may be interested in acquiring one or all of its three hydroelectric dams on the Escanaba River. The dams have the capability to generate about 9.2 megawatts of electricity and comprise the Escanaba Hydroelectric Project, which is licensed by the Federal Energy Regulatory Commission. The project consists of Dam #1, located near the mouth of the Escanaba River, Dam #3 just north of the New Page Escanaba Paper Mill, and Dam #4, which creates the Boney Falls impoundment.

Currently, the dams sell power to New Page, but the contract expires in April 2012.

"UPPCO isn't certain that continuing to own these plants is its best interests," said UPPCO Vice President and General Manager Keith Moyle. "Operations and maintenance costs could likely exceed the value of the electricity produced by the dams."

Boney Falls Dam is currently operating at reduced water levels because of a seepage problem.

Moyle said that if the company could not find entities interested at purchasing the dams at a fair price, it would consider whether to continue to operate them as a FERC project, surrender the license and sell them to anyone interested in keeping the dams without generating electricity, or seeking to abandon and remove the dams.

"Abandoning the dams is an option we'll have to consider if we can't find interested parties," said Moyle. "It's certainly the least favorable option for UPPCO."

Moyle said it would keep the community apprised of its efforts to sell the dams.

Parties have until August 31, 2010, to express interest in the dams.

For More Information, Contact: