WEC Energy Locks In 20-Year Nuclear Power Deal for Point Beach
WEC is trading near its 52-week low of $102.95 (7.9% above the low).
Summary
WEC Energy's Wisconsin Electric Power unit signed a 20-year power purchase agreement with NextEra Energy Point Beach for 86% of the output from both units at the Point Beach nuclear plant. The deal runs through 2050 for Unit 1 and 2053 for Unit 2, starting when current agreements expire. It requires approval from the Public Service Commission of Wisconsin. WEC says the new terms will save customers money compared with the existing PPA. This is a long-term supply commitment that locks in nuclear capacity for WEC and provides revenue certainty for NextEra's Point Beach assets. The agreement is a material development for both companies, though the financial impact is not quantified in the filing.
At the time of this announcement, WEC was trading at $111.05 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $36.2B. The 52-week trading range was $102.95 to $119.91. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.