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Wisconsin Energy Corporation (NYSE:WEC)

2012 Annual Shareholder Meeting

May 3, 2012 11:00 AM ET

Executives

Gale Klappa – Chairman, President, Chief Executive Officer

Susan Martin – Executive Vice President, General Counsel, Corporate Secretary

Tom Metcalfe – Site Vice President at Oak Creek

Analysts

Dave Parker – Robert W. Baird

Caren Byrd – Morgan Stanley

Gale Klappa

Well good morning ladies and gentlemen, it’s shortly after 10:00 A.M. Central Daylight Time. The time set for convening Wisconsin Energy’s 2012 Annual Meeting of Stockholders. I’m Gale Klappa, Chairman, President and Chief Executive of Wisconsin Energy and I will service Chairman for today’s meeting.

We’re delighted to be here again at Concordia University and I’d like to thank the President of Concordia, the Reverend Dr. Patrick Ferry and his entire staff for their always gracious hospitality and for allowing us to use their beautiful campus today.

Now before we begin our session this morning, I’d like to take just a moment to tell you an amazing story about the actions of two of our employees. Over the years, some of you may have called our contact center to ask a question or perhaps to report an outage. The center is open 24 hours a day, seven days a week. The employees, who work there, are highly trained and focused on delivering the best customer care anywhere. Two of our contact center employees are with us today and I’d like to ask them to join me now at the podium.

Angela and Jenea welcome. Angela Walton is a customer consultant and Jenea Penna is one of our four supervisors. Last June, after a bad storm rumbled through the area, Angela answered a call from a customer in Greendale asking about when his power might be restored. During the conversation, the customer mentioned that his carbon monoxide detectors have gone off. But he thought it was just a false alarm, he had unplugged the detectors. This concerned Angela, so she advised the customer to check again and think about calling 911, but our customer said no, everything would be fine and he and his wife were headed for bed.

Well after the conversation was over, Angela was still concerned. Her sixth sense told her that something was just not right. So she talked it over with Jenea and they decided to call the fire department. Now for the rest of the story, here is the news report from Milwaukee’s ABC affiliate, WISN Channel 12.

[Audio Presentation]

What a terrific story. Angela, you could have hung up and moved on to the next call. But you and Jenea have great instincts and you saved the lives of two of our customers. Angela and Jenea in recognition of your exceptional performance, it’s my great pleasure to present each of you with the Chairman’s award. Angela, Janea, thank you.

Also in your honor, the Wisconsin Energy Foundation will make a $2,500 contribution to each of your favorite charities, The Hunger Task Force and Susan G. Komen for the Cure. Angela and Jenea thank you for the great work you do for us and for our customers we appreciate it.

And now ladies and gentlemen, if you will please stand, Angela and Jenea will lead us in the pledge of allegiance.

Angela Walton and Jenea Penna

I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

Gale Klappa

Thank you. Thank you again Angela and Jenea. Well I’m delighted to see that so many of you were able to join us here in person this morning. I’d also like to extend a word of welcome those who are joining us via the internet. Our meeting is streaming live this morning at wisconsinenergy.com.

And now it’s time to call our 2012 annual meeting to order. I’ve been given the inspectors report which indicates that more than 85% of the company’s outstanding shares are represented. This constitutes a quorum under our bylaws and this meeting therefore is duly convened to conduct business. At the end of our formal program, we’ll be happy to answer as many of your questions as time allows. You may also ask questions of any of our officers or directors who are here today.

As always, some of the information you will receive at this meeting is forward-looking in nature and is based on our current expectations. Our projections clearly involve risks and uncertainties, factors discussed in the company’s latest Form 10-K and in future reports filed with the Securities and Exchange Commission could cause our actual results to differ materially from those discussed today.

Now we’ll begin our business session by introducing the members of the Wisconsin Energy Board of Directors. I would ask each of our directors to please stand as I introduce them and remain standing until all have been recognized. Please you’re your applause until the end of the introductions.

John F. Bergstrom, Chairman and Chief Executive Officer of Bergstrom Corporation. John has been called to Detroit for an urgent meeting today and unfortunately could not be with us. Barbara L. Bowles, Retired Vice Chair of Profit Investment Management and Retired Chairman of The Kenwood Group. Patricia W. Chadwick, President of Ravengate Partners LLC. Robert A. Cornog, Retired Chairman of the Board, President and Chief Executive Officer of Snap-on Incorporated. Curt S. Culver, Chairman and Chief Executive Officer of MGIC Investment Corporation and Mortgage Guaranty Insurance Corporation. Thomas J. Fischer, Principal of Fischer Financial Consulting LLC. Ulice Payne, Jr., Managing Member of Addison-Clifton, LLC. And finally, I’m please to introduce our newest board member, Mary Ellen Stanek, Managing Director and Director of Asset Management for Robert W. Baird & Company Incorporated. Please join me in a round of our applause for our terrific directors.

Now before we move on, I’d like to take just a moment to recognize Frederick P. Stratton, Jr. Fred would you please stand? Fred is retiring from our Board after more than 25 years. Fred of course is Chairman of Emeritus of Briggs & Stratton Corporation. And in recognition of his many accomplishments and his commitment to the community, Fred was recently inducted into the Wisconsin Business Hall of Fame.

As I mentioned, Fred has been a director of our company for in excess of 25 years. In fact he has served on every one of our board committees. And nine years ago, Fred helped to convince meet to move to Wisconsin Energy. Other than that, a little lapse in his judgment, Fred has been an exceptional director. But seriously Fred, your knowledge, you advice and your insight born of experience have been in valuable to this company and this board and on behalf of our board and our entire management team, thank you for your service and thank you for your friendship.

Now I’d like to recognize the officers of Wisconsin Energy and its subsidiaries as well as the union and management representatives who are present here today. Our union and management teams work closely together to address important company issues. We appreciate your dedication and your hard work, would you please stand.

I’d also like to introduce Susan Hogan from our transfer agent Computershare. Susan has been appointed as the Inspector of Election for our meeting. Susan, would you please stand. There she is, Susan, thank you.

Also with us today our representatives of the Deloitte & Touche, Scott Wrobbel, Tom Keefe and Tricia Pemberton, they’re our auditors and they can answer any questions you may have regarding our 2011 financial statements. Folks? Here we go.

Now there is a rumor that I’d like to share with you, Scott Wrobbel. The rumor is he is going to take Donald Driver’s place next season on Dancing with the Star, so watch for that.

And now I’ll call on our Executive Vice President, General Counsel and Corporate Secretary, Susan Martin, to report on the proposals that we have before us this morning. Susan?

Susan Martin

Thank you, Gale. On March 26, 2012 proxy materials including a notice of this meeting were sent to all stockholders of record as of February 23, 2012. As set forth in your proxy statements, there are five items requiring a vote. One, election of nine directors to serve for a term expiring at the annual meeting of stockholders in 2013. Two, approval of the amendments to the company’s restated articles of incorporation to implement a majority voting standards for the election of directors in non-contested election. Three, approval of amendments to the company’s dialog to implement a majority of voting standards for the election of directors and non-contested elections.

Four, the ratification of Deloitte & Touche LLP as independent auditors for 2012. And five, the advisory vote on compensation of the named executive officers say unpaid. If you previously voted your proxy, your vote has already been recorded. At this time, I would like to ask, is there any outstanding proxies that have not been turned into be counted. If you have not yet voted, please raise your hands and an usher will pickup you ballot.

Thank you. The vote is now closed. I have been appointed to vote all of the shares represented by the proxy vote sent in by our stockholders. I have submitted the proxy ballot which reflects your instructions to the inspector of election. The preliminary inspectors report has been completed. The following nominees for election to the board of directors all received more than 89% of the vote and have been duly elected. Barbara Bowles, Patricia Chadwick, John Bergstrom, Robert Cornog, Curt Culver, Thomas Fischer, Gale Klappa, Ulice Payne, Jr. and Mary Ellen Stanek.

Each director will serve until the 2013 Annual Meeting. The proposal to approve amendments to the company’s restated articles of incorporation implementing a majority voting standards to the election of directors and non-contested elections has received an affirmative vote of more than 73% of the shares outstanding as of the record date. This proposal has been approved.

The proposal to approve amendments to the company’s dialog to implement a majority voting standards for the election of directors and non-contested elections has received an affirmative vote of more than 99% of the votes cap. This proposal has been approved. The proposal to ratify Deloitte & Touche LLP as independent auditors for 2012 as received as an affirmative vote of more than 98% of the vote’s cap. Deloitte & Touche LLP is therefore ratified as the independent auditors for 2012.

The proposal to approve the compensation of the company’s named executive officers as disclosed in the proxy statement has received the affirmative vote of more than 90% of the votes cap. This vote was advisory and not binding. However, the Board reviews the voting results and takes them into consideration when making future decisions regarding executive compensation.

I will now turn the meeting back over to Gale Klappa, who will discuss our 2011 performance and our outlook for the future.

Gale Klappa

Susan, thank you very much. Before we begin the state of the company report today, I’d like to take you back for about 116 years. Turn back the hands of time for a moment, to introduce you to this gentleman. His name is Charles Dow and other than having a prodigious beard his claim into fame was that Charles Dow was the gentleman who developed the first Dow Jones Industrial Average on a fine day in May in 1896.

And of course, the Dow Jones Industrial Average has over the years become the most famous and widely watched indicator of the stock market’s performance here in the United States. So Charles Dow first launched the Dow Jones Industrial Average as I say back on May 26 of 1896. And on that day, the Dow Jones Industrial Average which today has 30 stocks, on that day, the Dow Jones Industrial Average began with just 12 stocks.

And interesting footnote of history is that one of those 12 stocks was called the North American Company. The North American Company in 1896 was the parent of what is now known as Wisconsin Energy. So we have a long history in the financial adults of the American market.

And I think that Charles Dow and the founders of our company would be very pleased with the results of our performance in 2011. The company at almost every meaningful measure set very important new records. The first of which is we reported the highest net income in the company’s history. We also recorded the highest earnings per share in the company history, an increase of about 13.5% over the prior year to $2.18 a share.

As those of you who followed us for many years know, we have been focused not only in terms of growing the infrastructure that’s needed for the energy stability of the state, but we’ve also tried very much to bring our debt levels under control. The debt to the total amount of capital investment in the business going back to 2001 was at 68%. Today, we have successfully brought our debt to the total amount of capital invested in the business down to 54.4% and the credit ratings of our utilities now are very strong and in fact among the strongest credit ratings in our industry.

Also very pleased to report to you that last year, we were again named the most reliable utility in the Midwest and our folks should be duly proud of this accomplishment. This is the seventh time in the past decade. The seventh time in the past 10 years that we’ve been named the most reliable utility in the region. This award comes from an independent consulting and engineering firm that looks at outage data customer outages and restoration times of all the utilities across the United States. And again seven time in the past 10 years most reliable in the Midwest and we have some pretty good competition.

We’re also very pleased with the safety record of our employees during 2011. We remind ourselves everyday that we work in a dangerous business. And safety and as one of our folks says, target zero in terms of employee injuries has to be our constant goal every day. Last year, we turned in the best overall safety results in the long and glorious history of this company. And since 19 – well actually going back to the late 1800s, we have very thorough safety records. It’s one of those things that prior managements of the company has excelled at, and that is the recording of our safety performance and a focus on safe operations.

Since 2003, we have dramatically improved our recent safety record. We have a 66% improvement in both OSHA recordable incidents and lost-time accidents and we continue to focus on a safe workplace.

We’re also very focused, as all of you know on customer satisfaction. And for the fourth quarter of 2011, we have the best customer satisfaction since we began measuring customer satisfaction and certainly the best since the merger of Wisconsin Electric and Wisconsin Gas back in the year 2000.

We measure customer satisfaction in two ways. We first measure customer satisfaction with any transaction that a customer has had with our company. So if you call our contact center and talk to Angela or if you’re on your street trimming a tree or changing a meter or if you have a question about a bill, we want to measure your satisfaction with that particular transaction. And in the fourth quarter, 78.1% of the customers who had a transaction with us told us they were very satisfied with the company. And more than 90% were satisfied or very satisfied with the company. And then on a transaction itself, we’re almost at 87% very satisfied with the transaction and over 94% satisfied or very satisfied with the transaction.

We have also accessed lots of national data which independent polling firms do on customer satisfaction. And the latest national data that we’ve seen from one of the national independent polling firms puts We Energies at number one and Wisconsin number two in the Midwest and top quartile in the country in terms of customer satisfaction.

From a financial standpoint, we were able to given the increase of the share price we were able to declare a 2-for-1 stock split for our stockholders that was effective on March 1 of 2011 as the first stock split in about 15 years

And I’m very pleased to say that the market is responded with the company’s improved performance, we actually set 24 new all-time trading highs in the stock during 2011 and ironically on the very last trading day of 2011, December 30, the stock hit is all-time high for the year at $35.38, now we have been fortunate that we have since surpass that high I believe earlier this week the stock touched $37 of share.

We’ve also raised the dividend, our board of directors declared an increase in year dividend effective for the first quarter of 2012 that increase was a 15% increase on top of the 30% increase that we declared for the first quarter of 2011, and we’ll talk a little bit more about our dividend policy in just a moment.

We have completed now the major infrastructure build that has been a huge focus of this company over the course of the past decade. We call it Power the Future. Power the Future required significant amount of cash to be invested in the business and now with Power the Future behind us with those new generating units complete, we have adopted a new dividend policy. Our goal now is to increase the dividend and increase the payout of earnings and to dividends to 60%. So our plan by 2014 would be the payout approximately 60% of our earnings in dividends to our shareholders that’s a level as we work to get our dividend back to industry standards that’s a level that we believe will get us more competitive with other companies in the regulated utility sector.

That policy moving to a 60% payout ratio should support double digit increases in our dividend, not only this year but also in 2013 and in 2014. We’ve also done a number of other important activities to maintain appropriate financial balance and financial strength, we retired $450 million of long-term debt at the holding company in the spring of last year and our board is authorized as also with our free cash flow to devote a part of that free cash flow to repurchasing shares and during 2011 we spent a $100 million on repurchasing stock, we have a $300 million authorization between now and the end of 2013, so between now and the end of 2013 our board is authorized as to repurchase up to $300 million of our stock. So far our average purchase price has been very beneficial; our average repurchase price has been $30.79 of share.

One of the things we’ve been very pleased about is the consistency over the last decade of the performance of the company and I thought this particular statistic might be particularly revealing. Wisconsin Energy is the only company in any of the major utility indices, the S&P Electric Index, the S&P Utilities Index, the Philadelphia Utility Index or the Dow Jones Utilities Average. We’re the only company in those indices that has been able to grow both earnings per share and dividends per share every year since 2003.

Now if we look a little broader measure of performance this going to be fun folks. Looking at the past three years, so this would be 2009, 2010 and 2011 and looking at total shareholder return which would be increase or decrease and share price and reinvested dividends. So total shareholder return, you can see the major market average is here, they’ve had a fairly good rebound the Dow in terms of total shareholder return up over 50% over the last three years, the S&P Index, the S&P 500 up just about 50%, NASDAQ up over 70%, and the two major utility averages up around 30% to 38%. By contrast over the past three years Wisconsin Energy’s total shareholder return up 83.3%.

Now five years, now the five year period will actually show lower total shareholder returns because if you recall the five year period will actually include the recession year of 2008 where we had a serious market crash. So you can see the Dow over the last five year up about 12.5%, the S&P 500 actually in negative territory, the Utilities performing reasonably well though by comparison over that five year period with the Philadelphia Utility Index up about 20% and the S&P Electric Index trailing that by just 1% or 2%, and again by contrast total shareholder return for our shareholders 69.7%.

So since this is fun, let’s try seven years. The Dow up about 36% in terms of total shareholder return and you can see stronger performances from the Utilities over the past seven year period with about a 70% total shareholder return from the companies in the Philadelphia Utility Index and the S&P Electric Index, and Wisconsin Energy total shareholder return of a 150%.

And then what the heck, 10 years. Over the 10 year period here ending 2011 you can see about a 56% total return for the companies in the Dow Industrial Average, very strong comparative performance by the Utilities. About a 119% to a 128% total shareholder returns over that 10 year period for the companies that are major Utilities of the country. And my favorite number, Wisconsin Energy total shareholder return we’ve got a triple, thank you.

So your results may vary in the future but at least last the 10 years we’ve had a very, very good ride. A few days ago we released our first quarter financial results and despite the warmest winter in Wisconsin in 122 years which dropped residential demand for natural gas by 24% compared to a year ago, we were still able to show a modest increase in earnings. Our first quarter 2012 earnings per share came in at $0.74 versus $0.72 of share in the comparable quarter of 2011 and we have reaffirmed our earnings guidance for this year in a range of $2.24 and $2.29 per share.

Also very pleased to report to you that just in the couple of weeks we were named again one of the 100 best corporate citizens in the United States by Corporate Responsibility Magazine. This is the fifth year in the row that our company has been named one of the best 100 in the United States. And what this particular national magazine does is they look at all the publicly available data from the 1,000 largest corporations in America, and then they look at your environmental performance record, your employee relations, your philanthropic giving, your financial condition and financial performance and the corporate governance practices of the board of directors, and they take all of that data from a 1,000 largest companies in the country and pick from that the top 100, so we’re very pleased to be in that lead category.

In speaking of corporate governance, one of the major rating agencies that actually ranks and rates the governance practices of boards of directors across the country in the world for that matter. And it’s continued to rate us very high, in fact we’ve been rated a perfect 10 by governance metrics international 28 of the past 29 times and I’m pleased to report you that we are the only company out of more than 4,000 companies rated by governance metrics worldwide that is consistently earn this distinction of a perfect 10 for corporate governance and I’m very appreciative to our board for their great work.

Now switching to the basics of our business, just a very brief reminder about Power the Future, because that was so important to meeting this region’s energy needs and having an energy infrastructure in Wisconsin that again could support economic growth and growth in jobs. We entered the year 2000 as many of you would recall very short in the state of Wisconsin, a power plant capacity very short of transmission capacity, there was a major investment required to bring the state back to where it needs to be.

A huge part of that investment were four major generating units, the first two of which we completed one in 2005 and the other in 2008 at Port Washington. We have been generating electricity at Port Washington for more than 70 years and what we did at Port Washington was we retired and dismantled an older coal fire power plant so they’ve been in place since really the 1920s, it was not really efficient any more by today’s standards. We retired that plan and in its place we built two highly efficient new natural gas fired units at Port Washington. Now we call your attention to the bottom of the screen, the cost per unit of capacity at Port Washington, $609 per unit of capacity.

Today ladies and gentlemen if we were to try to build these same two units today on the same site, it would cost more than $1,000 per unit of capacity. So we believe these units will serve our customers and are a real bargain for our customers and will service well for generations to come.

I might add that with today’s low, low natural gas prices these units at Port Washington are being dispatched into the Midwestern energy market almost like a 24/7 work hours plant. These units are running exceptionally well and performing very well in a low natural gas price market.

The other major portion of our power of the future efforts was the new coal-fired units that we’ve completed South of Milwaukee on our generating site at Oak Creek. And again, this is a site where we’ve generated electricity for decades. We have four older units still operating at the Oak Creek site and now two new units with the latest environmental controls, these two units at Oak Creek, one that completed in February of 2010 and the other that we just brought on in January of last year, these two new units are so efficient that they are among the two or three most efficient coal-fired base-load units anywhere in the United States.

And again, I bring your attention to the bottom of the screen where we talk about the cost per unit of capacity. And here, building a major highly technical coal-fired unit that cost more than building a natural gas unit. So we brought these coal-fired units in for just about $1,950 per unit of capacity which again I think will prove to be a tremendous bargain for our customers. By comparison, Duke Energy, which is a very good company is building a comparable unit exact same technology, exact same emission controls in North Carolina, they are just about the complete that unit at a plant called Cliffside and the Cliffside unit that they are building identical to this unit will come in at over $3,000 per unit as capacity. So again, we think we’ve been very fortunate in bringing these units in on-time, on-budget and at a price that will be very competitive for our customers.

But the big story about what we have done to reshape our power plant fleet over the course of the last decade, the big story is really on this slide. Compared to the 2000, we today are capable of generating 50% more electricity than we would have been. But the environmental performance is incredible, even after adding 50% more capacity our emissions of nitrogen oxide, sulfur dioxide and mercury, the major emissions that we monitor will be down by 70%, a dramatic improvement in our environmental performance.

Thank you.

And in fact, speaking of the state-of-the-art emission controls, what you seen on the screen is a picture from about last October. This is at the older coal-fired units at our Old Creek side and we have four older units that are 1960s vintage. And what we’re building here are modern state-of-the-art emission controls for those four older units and this is kind of where we stood with the construction in October and now you can see a more up-to-date picture as we’re completing this major project. In fact, this is the second largest construction project in the history of the company and Chris is back there with the controls with any kind of luck through the magic of satellite, we – I hope we’ll have Tom Metcalfe with us. Tom, are you there?

Tom Metcalfe

Good morning, Gale.

Gale Klappa

Can you hear us, Tom?

Tom Metcalfe

Loud and clear.

Gale Klappa

Fantastic. Tom, tell our shareholders where you’re standing today. This by the way is our version of where is Waldo. Thank you.

Tom Metcalfe

I’m not in front of our new air quality control equipment, Gale.

Gale Klappa

All right, terrific. Tom, tell us a little bit about the equipment and what it does.

Tom Metcalfe

Absolutely. Well, last year I talked about the new air quality control equipment that we built as part of the new coal-fired units just north of here. What we’ve added to the Oak Creek power plant is almost identical. We’ve added selective catalytic reactors, well SCR’s for controlling nitrogen oxide and that’s just like the catalytic converter in your car. We’ve also added scrubbers for removing sulfur dioxide.

Now you mentioned there are four units at Oak Creek, two of those units Gale will tie into one air quality control system and the other two units will tie into a separate air quality control system. So in that sense we have two scrubbers and two SCR and all that equipment is tied together with around 5,000 feet of doc work.

Of the four regions, (inaudible) through the SCR, we first need to raise its temperature to around 500 degrees Fahrenheit. We do that so the SCR can operate efficiently. And we use very large air heaters to achieve that, in fact these weigh more than 1,300 tons each that are among the largest of that type in the world.

After the SCR, the exhaust gas passes on to the scrubber and that’s simply a stainless steel tank where we spray a limestone slurry in the form a mist, the limestone reacts with the sulfur and the byproducts is gypsum. That’s helpful because we use gypsum in the agricultural industry and to sale products such as (inaudible).

Gale Klappa

Tom, how is the construction going? I know that for the first two units that we’ve been working on which are units five and six. We’ve now completed the construction and actually commissioned the equipment. How about – tell us about the status of the equipment and where we’re finishing up on the final construction stage?

Tom Metcalfe

Well, that’s absolutely right Gale. Construction has perceived very well. During the three years I’m particularly proud of the safety record. We had very few injuries and indeed no loss time accidents and that’s commendable particularly given the very tight corners in which we had to work. A lot of this equipment is being built inside or even on top of the operating power station.

And as you mentioned, we’ve already turned over the first of the air quality control systems and we’re on budget and on schedule for the second air quality control systems to be placed in service at the end of July or early August.

Gale Klappa

All right. And Tom, remind our shareholders what the investment is in this project.

Tom Metcalfe

Well we’ve – the total investment is around $750 million and it’s the second largest investment of – for the company in its history. I might add if I may Gale that the equipment is already proving very successful. Our missions are already well within the air permit requirements and you mentioned that our goal fleet wide is to produce emissions of mercury, sulfur dioxide and nitrogen oxide by 70%. But if we look at just Oak Creek, just what we’ve achieved here at the Oak Creek power plant, we’re expecting those emissions to be reduced by more than 85%. So what we’ve build here is a big path of our fleet goal.

Gale Klappa

All right. Tom, you’ve done a terrific job there. You really have.

Tom Metcalfe

Thank you, Gale.

Gale Klappa

All right. Do you have any idea Tom where we’re going to have you next year?

Tom Metcalfe

I’m not sure Gale, but I would hope you might be going to the Olympics this year in London and I will be carrying your bag if you’re willing.

Gale Klappa

Tom before we can let you go back to England, we got to work on your South Milwaukee accent a little bit. Tom, thank you. We’ll let you get back to work.

Tom Metcalfe

Thank you, Gale.

Gale Klappa

All right. Tom is from England. We’re very fortunate to have him. You probably notice him saying schedule, but he has done – he is our Site Vice President at Oak Creek. He worked with Rick Kuester when Rick was in Hong Kong and we’re very fortunate to attract at Tom, he has done a tremendous job for us at Oak Creek.

And speaking of construction, during 2011 right before Christmas we gave this state another Christmas present and that was the completion of Wisconsin’s largest wind farm. It’s in Columbia County about 45 miles Northeastern Madison, it covers 17,300 acres of rolling farm land and as I say with 90 turbans and 162 megawatts of generating capacity, it is now the largest wind farm in the state of Wisconsin. The cost, well we brought it in on time and under budget at $360 million.

We are building winds and I will talk with you about another renewable projects in just a second that we have underway now. But just as a remainder, we are building renewable generation because there is a state mandate and that state mandate requires us to provide 10% of all of our retail sales of electricity in the year 2015 from renewable sources.

The most cost effective renewable sources in our region are win like the Glacier Hills Wind Farm and this new project that we have underway in Northern Wisconsin and that is a biomass project. And let me explain what we mean by a biomass project.

We are building a power plant here in Northern Wisconsin that is like any other power plan we’ve built except it’s slightly smaller. This will only have 50 megawatts of generating capacity. In Oak Creek for example, our new Oak Creek units have over 600 megawatts of generating capacity.

But our renewable plants are biomass plants that we’re building in Northern Wisconsin again it will operate like any other power plant just smaller, the difference is the fuel. Instead of coal or natural gas or oil, this will burn wood waste from the Northern Wisconsin forests. It will burn saw dust, it will burn tree trunks, it will burn tree bark, it will burn tree tops, it will burn the leftovers from the forest floor after logging.

And this plant has the benefit compared to win of us being able to actually dispatch the unit when we need it because it will operate just like any other power plant as opposed to a wind farm which generates electricity only when the wind is blowing at a certain level of width.

So we’re well underway on this 50-megawatt biomass plant. As of today, we are just under 25% complete with the construction and what you see on the screen there is the field for the boiler building that is being topped out. The cost of this is expected to be approximately $255 million. Right now, because of the mild winter that we’ve had, we’re actually a little ahead of our construction schedule were honored better than budget and we’re scheduling completion for this new biomass plant by the end of 2013.

Now when we bring this plant online and with the other renewables that we have built, the two major new wind farms, we expect to be in a very good position to meet the 2015 standard in place by the State of Wisconsin.

As we look, ladies and gentlemen, to the future, our emphasis in terms of our five-year plan is shifting a little bit. We have focused obviously on these major large infrastructure projects that were so badly needed in the state. The new power plants, the emission controls both at Oak Creek and at Pleasant Prairie. But now our focus is changing and we will be undertaking many more smaller projects but no less valuable and no less important and I call it delivering the future.

Over the next five years, between now and the end of 2016, we will be really focusing on upgrading and renewing our distribution network. The building blocks, the basics of the business, the cables, the transformers, the poles in fact our plan is to rebuild about on the electric side of our business about 2,500 miles of electric distribution lines, lines that are now over 50 years old.

And also our plan is to replace about 28,000 power poles many of which are 70, 80, 90 even 100 years of age today. We’ll also plan to replace about 28,000 transformers and hundreds and hundreds of substation components. As these particular pieces of equipment come to the end of their useful lives, it is very important that we focus on this renewal and this upgrade to maintain our status as the most reliable utility in the Midwest.

And on the natural gas distribution side of our business, again between now and the end of 2016, we’re proposing to replace over 1,250 miles of fiberglass, steel, plastic gas mains, they’re safe today but they need replacing. We’ll also replace about 83,000 individual gas distribution lines. These would be the lines that go straight to your home and almost to the 0.25 million gas meter sets. So we’ve got a lot of work in front of us, a lot of investment in front us to maintain our reliability.

Another project that you’ll probably hear a great deal about is our request to upgrade the natural gas pipeline that now comes of Lincoln Avenue and moves up toward Menomonee Valley. The gas line there is a 1940s vintage gas line, it’s operating safely today but we need to upgrade that line and increase the capacity of the line to deliver natural gas. There’s one other side benefit from this particular project and that is how it could impact our Valley Power Plant.

As many of you know, we have an older power plant in Menomonee Valley which we call the Valley Power Plant and it’s a vital energy source for Downtown Milwaukee. It provides steam for all of the major downtown buildings for the market campus for Northwestern Mutual Life, for City Hall, for over 400 downtown buildings they received their heat from the steam produced at the Valley Power Plant.

The Valley Power Plant today runs on coal and we’re in complete compliance with all the environmental regulations. But as environmental regulations continue to change, we are looking at the possibility of converting the Valley Power Plant from coal to natural gas. The project that I just talked about the upgrading of the pipeline would allow us the flexibility when completed to actually have enough natural gas being distributed into the Valley to be able to potentially convert the Valley Power Plant from coal to natural gas. We continue to have that under review and of course at today’s low natural gas prices, if they were to stay where they are today, a conversion would certainly look promising.

So in summary, over the next five years, our plan is to invest about $3.5 billion on the type of infrastructure projects we’ve just discussed. And the goal would be to renew and modernize our grid, to meet new and changing environmental standards and to add clean renewable energy to our fleet, so that we can continue to meet the State’s renewable energy standards actually for both Wisconsin and Michigan.

So ladies and gentlemen, in summary, I think all the objective data would tell us that Wisconsin Energy has now become one of the top performing companies in our industry. I think we’re poised to deliver a very bright future and to borrow a line from that Great American Philosopher Tina Turner. Our goal is to be ‘simply the best’.

Thank you for your attention.

All right, thank you again. And now it’s time for the question-and-answer portion of our meeting. In just a few minutes, we’ll be happy to take questions from the floor but first we thought we try something a little bit different. We thought it would be interesting for you to hear from two veteran observers of our industry, who are in touch with shareholders and with the investing and banking communities literally around the world.

Dave Parker is the Senior Analyst who covers utilities Robert W. Baird. Prior to joining Baird, in 1993, Dave followed our industry for A.G. Edwards & Sons and Duff & Phelps Investment Research. Over the years, Dave has consistently been rated as one of the top analyst of the utility sector.

And then Caren Byrd, Caren is the Managing Director in the Global Power and Utility Group of Morgan Stanley in New York. Caren has spent more than four – she doesn’t look like it but she has spent more four decades following the electric utility industry. Caren is a chartered financial analyst, a member of the CFA Institute, The Wall Street Utility Group, the New York Society of Security Analyst and she also serves with me on the Board of Directors of the Electric Power Research Institute.

Dave and Caren have kindly agreed to join Rick Kuester, our Chief Financial Officer and me here on stage to ask us a few questions that they’re hearing from investors and from the investment and banking community about our industry and our company around the world.

Please welcome Dave Parker, Caren Byrd and our Chief Financial Officer, Rick Kuester.

Hi Dave welcome.

Dave Parker – Robert W. Baird

Good morning Rick.

Rick Kuester

Good morning.

Question-And-Answer Session

Gale Klappa

All right. Well thank you again for – I know how busy your schedules are for joining us today. And I’m told that your questions have been hermetically sealed noon yesterday. You got them on your iPad.

Dave Parker – Robert W. Baird

Yeah, I do just to make sure I don’t miss any of them.

Gale Klappa

Okay.

Dave Parker – Robert W. Baird

Yeah. Thanks for your presentation and I think what you – and you brought up for all of us in the room is that excellent returns, I think really represent a keen focus by the Wisconsin Energy team on managing risk for all of our stakeholders and I think when we look at today substantial increase kind of volatility in global financial markets see it in the papers constantly as well as very volatile energy markets that’s increased the political and regulatory risk. So as you’re delivering the future, how do you manage for the next 5 to 10 years of risk investors and risk for all your stakeholders?

Gale Klappa

Very good question obviously and Rick can take a shot at this well. I would start up by saying that probably the most important concept for managing risk for our stockholders and managing regulatory risk is to really educate our regulators about how important it is to have a financially strong utility. And the truth of matter is and a lot of people are surprised by this, but the single biggest cost component of your electric bill is not fuel, it’s not operation and maintenance expenses, it’s the cost of capital because we’re so capital intensive. So to have a utility and have regulators understand that it’s important to have a strong utility to attract capital of low cost that’s a real key. And I think for us, Rick, another key is now moving much more towards smaller projects with individually less risk in the projects.

Rick Kuester

Yeah, I think that if you look at where we are today, while we are facing a more volatile environment. I think we’re starting in a good place because if you look what’s happened to the business over the last few years, we’ve been building large mega projects that had a lot of development risk, a lot of construction risk, litigation risk. And we’ve largely got that risk behind us. We’ve also, as Gale showed in the slides, improved our sales from financial from our balance sheet standpoint. So our financial risk is down, the risks around the projects that we’re facing, is far different I think than what we’ve seen in the past. So while the environment continued to be evolved or challenging I think we’re well positioned where we are as a company.

Gale Klappa

Caren, what are you hearing?

Caren Byrd – Morgan Stanley

And first of all, congratulations on a great 2011 and a good start to the year.

Gale Klappa

Thank you.

Caren Byrd – Morgan Stanley

And thanks for the update on the environment. The environment is obviously something that investors all your sophisticated institutional investors as well as everyone in this room is in very concerned about is impressive what you’re doing. The EPA has been very active and just within the last several weeks the EPA has issued a landmark ruling relating to carbon emissions for new generating plants. Now though we don’t know all the details, we and the financial community are very focused on this and see this is a very important ruling. I wonder if you would comment on your understanding of this new rule, how it might impact Wisconsin Energy as well as the electric utility industry a whole?

Gale Klappa

Sure. Rick and I can both give it at a shot at. A very good question Caren and what Caren is referring to is, the Environmental Protection Agency it literally just within the last few weeks has put out what is known as a global warming standard. As you recall many of you may remember, there was a huge debate in Congress over whether or not CO2 is actually a pollutant that would be subject to regulation under the Clean Air Act.

Well the U.S. Supreme Court a couple of years ago said, yes it was and the Environmental Protection Agency could regulate with standards the emission of CO2. Fast forward to a couple of weeks ago and what the EPA has done is they have proposed a new standard for any new power plant to be built.

As Caren said, all the details aren’t clear yet and I’m sure there’s going to be a protracted time in Court over this standard. But the EPA is proposing essentially a certain level of emissions per kilowatt hour produced for all plants to be built in the future that would only allow you from a fossil fuel standpoint to build a natural gas fire plant. In other words a plant like the one that we’ve just completed at Oak Creek, if this standard holds, Rick my understanding is, we would not be permitted to build one of these in the future.

Rick Kuester

That’s correct Gale and like everyone knows most of our energy produced in this country comes from coal natural gas and nuclear. And natural gas and coal are abandoned resources in this country. So as we face an uncertain future, I think one of the keys for a strong economy is competitive reliable energy. And so taking one of the big three kind of off the table and you’re really limiting your portfolio going forward in the future there’s some risk to that and I think that nuclear is really going to be built just by large companies. So for many companies I think the default position is going to be the go build natural gas. And today that looks like a good decision 10 years from now, 20 years from now I hope it looks the same.

Gale Klappa

I agree. This is going to be very controversial and we’ll see where this goes but I’m confident Caren and we’ll end up – the whole industry will end up in Court over this particular rule. One other point, many of the other rules that the Environmental Protection Agency has proposed or is now putting in place, we already in compliance with because of the investments we’ve made and one of the pieces of good is that our customers today already paying for many of the environmental controls of the EPA is about to mandate. So we’re ahead of the curve already having made that investment.

Rick Kuester

And I think the Oak Creek unit we just build is going to be among the last to be built. So we’ve really positioned our portfolio very well for the next several years.

Gale Klappa

Absolutely. Dave?

Dave Parker – Robert W. Baird

Yeah, during your presentation, Gale, you talked about a change in dividend policy and in over the last 10 years that OK total return you got there was mostly a price appreciation and sort of track earnings growth generated by part of the future with the 15% increase in the dividend growth. I think you just announced in the 10% kind of a growth throughout the next couple of years. How do you – if you got point of look at your crystal ball what would you sort of forecast investors returns are look like going forward, is it more like other utilities, will there be more dividend yield return as suppose to just earnings growth appreciation?

Gale Klappa

Dave, I think we probably are emerging from this hyper growth period that we just talked about to a period where we would be more of a total return story. I mean we still see our management team still see is significant investment requirements $3.5 billion. But we’re really saying we think we can grow the company in about 4% to 6% a year in terms of earnings per share and then if you add a very progressed of dividend policy to that I think we can deliver 8% to 10% total share holder returns. So I see us moving from – I think Barron has called us a utility on steroids at one point. I’m just moving from that to a total return story that I think still will be very attractive and I hope will be very attractive to our investors.

Caren Byrd – Morgan Stanley

We’ve all heard about the major changes in the U.S. natural gas industry, you’ve touched on that, mainly from a dramatic advances in shale gas in the United States. I’d like to hear your current reviews on current as well as expected gas prices. Do you think we are having a permanent change in the gas industry, in gas prices or just part of this commodity cycle just depended on time demand? Your views and how it will affect your dispatch of plants in your generation?

Gale Klappa

Caren if we get this answer right I want you to go to Vegas with me. Rick, you want to try a shit out, what you think.

Rick Kuester

That one is tough, I agree with Gale, it’s hard to predict the future on gas prices. But I will say that I think that we have gone from believing we were short of natural gas in this country to be – believing now we are very long, I think that is good for the economy. I think that will help manufacturing in terms of what the price will be, natural gas has a history of volatility, I think having a portfolio as we’ve got going into that makes a lot of sense for us. But it does appear that like we really have transformed the industry in terms of the technology and we are now facing a situation where it does appear the natural gas is going to benefit this economy and the systems of the nation for a long time.

Gale Klappa

I agree with Rick, I think there’s been a technological transformation. I don’t think that today’s natural gas price and I could be wrong, I don’t think it’s sustainable. I mean natural gas is $2 per million BTU, I don’t see that continuing. And there is one other I think important factor that maybe it will come into the play over the next several years. The coal production of the U.S. now for example is part of a world market, I mean we are exporting, the coal companies in the U.S. are exporting more coals to Asia, to Japan, to India, to China and they’ve exported in years. So coal production in the U.S. and the price of coal is now highly tied to a world market, natural gas is not yet. But I think you will see, I mean for example in Europe people are paying five times the price for natural gas that we are paying here in the U.S. I don’t think that’s sustainable, I think we will start to emerge to a world market for natural gas and the only way to go if that’s the case in terms of price is up. So I think Rick is right, natural gas can be a wild ride. And I see from our screen here it says time is up. Caren and Dave, thank you so much for joining us we appreciate. Rick, thank you.

All right, thank you again Caren and Dave for joining us today. And now we’ll open the meeting for the stock holders in our audience. If you have a question or comment please feel free to step to the microphone nearest to you and an assistant will be happy to assist you. Before asking your question please state your name, your city of residence for the minutes and I would also ask that you please limit yourself to one question or comment so that others may have the opportunity to speak during the time we have remaining together. Thank you so much. Who has the first question?

Yes, microphone number three.

Unidentified Participant

Hello, my name is (inaudible) and I’m a homeowner on Underwood Parkway in Wauwatosa, a customer and a shareholder of We Energies and the Chair of People Friendly Power. Our organization, People Friendly Power, thanks Mr. Gale Klappa for his willingness to work with us as we develop alternative routes for the transmission lines being proposed in the neighborhood surroundings in Milwaukee County Ground. We believe additional power needs to be brought to the County Grounds is the key economic engine for our region. But we believe power lines can be and should be placed in a way which respects our parks environment and our neighborhoods. We believe Mr. Klappa shows a high level of listening and responding to the concerns of customers and shareholders and we want to thank him

Gale Klappa

Thank you Mrs. (inaudible). Thank you. Thanks I think we have a meeting a week for Monday. Thank you (inaudible) live in that area and they are concerned about some of the routes that have been selected or proposed nothing has been selected yet. In the area of the Milwaukee County Medical Grounds and actually, Professor (inaudible) husband, who is a professor of Electrical Engineering and knows this stuff has actually proposed them alternative routes and we’ve offered to help take a look at those and see if any those might work and give our input to American Transmission Company which is the responsible entity. Thank you Mrs. (inaudible). Yes sir, number four.

Robert Resnick

Yes, Robert Resnick from Germantown, Wisconsin. And in your presentation you mentioned a biomass facility in Rothschild which is I believe in your Wausau.

Gale Klappa

Yes.

Robert Resnick

What are the objective energy costs that compared to other types of facilities or as you call them generating units?

Gale Klappa

A very good question and thank you for coming today. We project that the cost per kilowatt hour of energy coming from the Biomass unit will be in the neighborhood of $0.10 to $0.105 a kilowatt hour, slightly more expensive than building a wind farm which should be about $0.09, $0.095 a kilowatt hour. And all of that compares to roughly $0.045 or $0.05 a kilowatt hour from our brand new coal fire units at Oak Creek. So the renewable projects today are not as cost competitive for customers as traditional generating the units are. But as I mentioned we have a state mandate we need to comply with and we are trying to build the most efficient renewable we can number one but number two. I think it’s very important to have some diversity in our renewable part of our portfolio because the simple problem with wind and wind has some benefits but the simple problem with wind is you can’t rely on it in any given time, we’ll be able to rely on this Biomass units. Is that respond to your question sir?

Robert Resnick

Yes, thank you.

Gale Klappa

Thank you very much. All right, yes number one.

Joe Dean

Good morning Gale, Joe Dean a stock holder in Port Washington. First thank you to you and your board and officers and all of the employees of We Energies for the remarkable storage ship of this treasure which is Wisconsin Energy Corp in Wisconsin, so thank you for that.

Gale Klappa

Thank you.

Joe Dean

Also I’m here today as my role as Volunteer Chairman of Stars and Stripes Honor Flight and on behalf of our now nearly 500 volunteers we want to thank you from the bottom of our free hearts for years generosity all of the stock holder generosity in supporting Honor Flight. And if I may or really very quick story for you, we just finished the flight that use We Energies head underwritten this last week and a gentlemen onboard that flight shared a story with me. Nearly 70 years ago he was onboard that USS Indianapolis and when the second torpedo hit that ship and it split in two, he ended up in the water with 600 of his fellow sailors.

Gale Klappa

Wow!

Joe Dean

Five days and five nights in the water with the sharks taking his buddies, his abandoned brothers one at a time until that circle of 600 was down to, I’m sorry the circle of 900 men was down to 317 when they were rescued five days later.

Gale Klappa

Wow!

Joe Dean

He said to me a couple of things, he held on to his Saint Anthony’s medal that his mother had given him those five days and nights with the sharks came to try to keep his sanity and to try to given this a reminder not to drink the salt water. And then when I thanked him for his service to the nation, he said it feels like yesterday, I can see the sharks, I can hear my buddy but son freedom is worth it.

Gale Klappa

Wow!

Joe Dean

And I want you all to know how much we at Stars and Stripes Honor Flight appreciate that you understand that freedom is worth it. We are losing this ladies and gentlemen from World War II at 1000 every single day and we are going to do everything that we can humanly possible to thank them and on August 11th at Miller Park we have a spectacular celebration and I hope you will all join us for that, so that we can thank these heroes. Thank you, Gale.

Gale Klappa

Thank you, Joe. Joe, thank you let me just take a second. Joe Dean has done an incredible job; he is the Chairman of the Honor Flight Program. And Joe came to see me with a couple of our retirees – oh, gosh Joe four, five years ago now, four years ago. And for those of you who are not familiar with the Honor Flights, what Joe and his volunteer group do is they call World War II Veterans in our region and offer them an incredible experience, they arrange the flight, they arrange the entire day, they arrange guardians for every one of these folks. And they fly these folks to Washington to see the World War II memorial and it’s even more than that, there is a mail call on the plane coming back, there is a huge audience of people at the airport when these folks return to thank them for their service.

It’s an incredible effort and we’re proud to be just a small part of it. Chris is in the Control list back there with electronics. I’m going to put Chris on the spot, Chris I think in our electronic files I don’t know if you get out them quick, we’ve got some pictures from the Saturday Honor Flight and a couple of our officers. Holy cow your good Chris. In the red shirt Kevin Fletcher our Senior Vice President of our operations, Charles Mathews is in charge of Wholesale Energy and Fuels and actually one of our retirees from the gas company who is on that flight. You can see the salute, the water salute as the plane takes off from Mitchell. And the folks are waiting our veterans to thank them in Washington D.C. it’s really incredible for these folks.

And what Joe has found – Chris I’m going to ask you if you can find in a second or two the video trailer. We got to do a blade and plug here Joe. What they have found is that so many of our veterans are no longer well enough and our two frail some make the trip. So Joe came with the idea that basically bringing the celebration to them, so we have – our foundation has underwritten what we call the field of honor night, it will August 11th Miller Park, we hope all of you will come. And Chris any luck you got it, let’s see the trailer video.

[Video Presentation]

Joe Dean

Thank you for that I didn’t know you are going to do all that but so this is literally going to be event of a generation, we don’t have time to talk about it all here in the Pentagon literally we’ll not let us release the number of surprises we had planned for that evening. But there will be World War II flyovers; we’re bringing a replica of the memorial to Miller Park. And the world premier of the Honor Flight documentary will be shown on the high desk score board at night at Miller Park. It’s an extraordinary film, we screened it for 400 people recently and this is an event, trust me you do not want to miss. So all the information is on our website but it’s really thanks to you the ticket prices are really low, it’s underwritten by the stock holder of We Energies. And it’s our chance once in for all to pay tribute to these heroes. Thank you.

Gale Klappa

Thanks you appreciate it very much. All right microphone number two please.

Unidentified Analyst

I’m William Pinsky (ph) a property in (inaudible). I have – American transmission owns power lines 54 towers on one site, 90 on the other. A few years ago I understood that townships got a tax credit out of these substations in these power lines. And I think it was Governor Lucy decided that he could use the money better sort to speak, are you paying anything taxes to these townships or these substations are or these power lines? Is the township getting the money or the state taken it all?

Gale Klappa

Very good question sir, I can tell you that the laws had changed and in particular the laws have changed related to a community that we’re hosting power plant. So take for example Port Washington and Oak Creek, we are paying directly to the city of Oak Creek and the city of Port Washington. The state does not receive that money. So for example a place like Port Washington or Greece to host the power plant, a new power plant there will be a direct payment and is a direct payment from us to the cities.

Unidentified Analyst

No my adjective is, the property owners they’re not doing (inaudible). Any new future or do you staff lines go true or the power lines go true, at least 50% of that money should be given up in all the stock for future use, not the man taken the money and even this land with restrictions on it. Where you power line (inaudible) but a few years back the features were robbing with facts that these now the land tax is this, but no teachers have done any benefit of a piece of ground.

Gale Klappa

Okay. I understand your point and I won’t say this. It will take a piece of legislation to change that.

Unidentified Analyst

And it have to be tighter and stock for future use that you’re destroying too much of (inaudible) power lines and somebody else just pay tax on that land, that land did not paid any penny for these schools.

Gale Klappa

All right, thank you for your comment sir. All right, yes number three.

Richard Strauss

Good morning.

Gale Klappa

Good morning.

Richard Strauss

My name is Richard Strauss. I’m a registered professional engineer from Milwaukee, Wisconsin. So I kept a slightly different baseball bat than most people. I’m not quite or friend poor Simpson but I’m close. I’m going to call a pension to something that I think is 98% of the existence of this company, so give me two minutes on this.

First side I’m up is the fact in the Wall Street Journal on April 11th, there are phenomenal articles explained the difference between coal supply, gas supply how much there is, you know what, big PR show everybody that you are willing to tell everybody this is what we’re up against, put it in your stockholder seat even go out and buy a page in the Milwaukee Journal say this is what we’re facing.

Gale Klappa

You want the stocks which pay the Milwaukee Journal, oh I’m sorry.

Richard Strauss

I don’t like the Milwaukee Journal either.

Gale Klappa

No, I’m sorry.

Richard Strauss

Anyways, but this coal, what I’m talking about, coal versus natural gas I have heard the Oak Creek new system that is phenomenal but you know what, there is no bill what there for earthquakes, zero. Here, coal we say yes, we will always have coal but I think natural gas can be a mega oops if we aren’t careful and here is why. We can convert from coal to natural gas I mean your units down at Oak Creek can be feathering natural gas in a week. The units up in Port Washington will never run with coal, they can only use natural gas period.

Gale Klappa

That is correct.

Richard Strauss

Now, where could the pipelines that supply or natural gas come from, all about maybe 20% or 30% runs out of Canada but most of them are upcoming through Oklahoma, through Missouri in that area, there is name New Madrid mean anything to anybody in this audience.

In 1812, there were some earthquake or some intensity it rained the church bells in Philadelphia 600 miles away, if that happens again there will be no pipelines. Now turning to the article in the Wall Street Journal, there is about 35 to 50 today supply of gas period in Michigan that’s where we put our spare.

Gale Klappa

Right.

Richard Strauss

And we got 35 to 50 days to repair those gas lines if they break, and we cannot make the gas fire generation run on coal. We do have coal, it’s phenomenal, keep it, if anybody say, oh you can’t run that just ask them for a personal guarantee that there will be no New Madrid earthquake, I’d be surprised if you get anything from anybody.

Gale Klappa

Right. A student with history here, thank you sir.

Richard Strauss

But now I think just…

Gale Klappa

There is more, okay.

Richard Strauss

Here is the recommend then – recommends, number one, if they want to get after you on an environmental standard as from personal guarantees they owe to. Now the next thing might be a consortium of users like Wisconsin Energy end of rail has a storage area with the equipment to repair those gas lines now, the pipe in place, the pipe there is in place, everything in place. So in 45 days you got those pipelines back up and running I mean as a stockholder, I’d say, put your money there first. I mean you can’t, if there is no energy you don’t have heat, you don’t have light and we’re not back a 100 years we’re back a fall of years in civilization and all these people that function off the internet are going to find there is no net.

And so it’s dividends versus survival. Protect me as a stockholder right, making sure that Wisconsin Energy keeps running.

Gale Klappa

Very good.

Richard Strauss

More importantly, protect our customers so they don’t freeze themselves out.

Gale Klappa

Right.

Richard Strauss

Okay?

Gale Klappa

Right, thank you sir, appreciate it very much. Yes, number four.

John Limbach

Good morning, John Limbach from Port Washington

Gale Klappa

Good morning, John.

John Limbach

Good morning, but I read a while back that you’re named CEO of the year but I liked your light empower, I just wanted to congratulate you on those giving that honor.

Gale Klappa

Well thank you very much, we appreciate that. That was a very nice personal recognition but it really speaks for the quality of the team that we have, thank you very much for your comment. All right, number two.

Aitor Sotes

My name is Aitor Sotes. I’m the CEO of Ingeteam Incorporated. We are a newcomer to Milwaukee and we are originally a company from Spain. About two years ago we decided to come to the United States and after looking around over 700 and something sites we decided to move to (inaudible) Valley that thanks to, otherwise we’ll share you, with you why we did.

We did that for many reasons but one of the main reasons was the fact that we work with the Milwaukee tenants, and I would like to thank you for your contributions on your leadership that you have in the other organizations.

Gale Klappa

Thanks Aitor.

Aitor Sotes

So your shareholders have an idea. We’ve encountered – during the process I mean as I said we, I visited the whole United States and I couldn’t find a better organization that represents a space exceeding and the southern counties. They worked, well with us in the share making process but what is shocked us, what impressed us the most is the way the – it worked with companies.

You might have met many economic development agencies that promise you everything, you create jobs and we’ll give you whatever but the – what they impressed us from the (inaudible) is the fact that they worked us with a team with a company, it was a truly public, private partnership and it was, you gave us an idea of what it would be to work with, to invest in Milwaukee, we invest $20 million we’re creating 300 new jobs and after meeting with, after working with the Milwaukee seven and continuously working with them in the ramp up process I’ve to say that we made the vast decision and because it is still helping us and then we know they’re going to help us in the future.

And they actually making us and as well also Milwaukee, so I would like to thank you for your contributes to that.

Gale Klappa

Aitor, thank you so much, we appreciate you coming today. So those of you who are not familiar, Ingeteam which Ingeteam US which Aitor is the CEO of – this is their first manufacturing plant in the United States. And as Aitor said, they had a choice of oh my goodness, I mean everybody that has any economic development organization at all who are seeking this particular plant and the plant now is operational, beautiful new plant, it makes invertors for the wind energy industry, for solar and it’s a big US market, Aitor we’re glad you’re here and thank you for what you’re doing for the community, we appreciate it very much.

All right. Well I think I have warned you out, we’ll pop back up here. Well this does conclude since we’ve run out of questions our 2012 annual meeting, thank you so much for taking part. And please be assured that our management team will work very hard in the year ahead to uphold your confidence and your support. Please drive home safely. Thank you for coming.

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