Wisconsin Energy Corporation (NYSE:WEC) is the largest electric and natural gas utility in Wisconsin^[1] and the 7th largest in the country. WEC serves 1,132,500 electric customers and 1,049,500 natural gas customers in the Great Lakes region (Michigan and Wisconsin). ^[2]

Following the rolling blackouts in California during the late 1990s, Wisconsin, which had traditionally underinvested in its electric utility infrastructure, approved WEC's plans to add two coal-fired generation plants as well as a natural gas facility and a wind powered facility. The company expects the expansion to increase its megawatt production by about 38% by 2010.^[3] Analysts estimate that the expansion will cost the company $2B between 2008 and 2009, and about $6B over the life of the project.^[4] WEC is funding the expansion through its own cash along with debt financing. As of mid 2008, the company was spending more on the construction of the new plants than it generates in cash flow. The company is depending on pre-approved rate increases to make its new plants profitable. Any changes to rates by regulators would have a dramatic impact on WEC's future profitability. ^[5]

(Read more at Wikinvest )