From: Maripat Blankenheim

Dec. 19, 2003

ATC applauds PSC decision on Arrowhead-Weston project

Commission issues written order on 220-mile electric transmission line project

WAUKESHA, Wis. – Today’s written order from the Public Service Commission of Wisconsin approving the revised cost estimate of the Arrowhead-Weston transmission line project paves the way for construction to begin in early 2004. The PSC order concludes more than six years of electrical system study, analysis and public input.

“We applaud the Commission on its decision to approve this project and help ensure that the millions of people in Wisconsin and the upper Midwest will have a reliable and secure supply of electricity,” said Mark Williamson, vice president of major projects at American Transmission Co. “We look forward to continuing our work with local elected officials and landowners to ensure that this line is built in a fair and timely fashion.”

ATC will immediately begin working closely with landowners to answer questions and start the surveying and easement negotiation processes. Williamson said he understands the imposition the line will have on some landowners and pledges to work with them with the utmost respect.

The PSC originally approved the 345-kilovolt, 220-mile project from Wausau, Wis., to Duluth, Minn., in October 2001. ATC submitted a revised cost estimate shortly after taking over the project in 2002. The revised costs were due to improved environmental protections, increased payments to landowners, farmland bio-protection measures, and project delays.

“We are responsible for addressing Wisconsin’s electric transmission infrastructure needs and will do so as quickly and cost-efficiently as possible. We will begin construction of this vital project in Minnesota in early 2004 and begin work in Wisconsin in late 2004,” said Williamson.

ATC is continuing to work with the National Park Service to secure a permit to cross the Namekogan River, where an existing power line will be replaced with the new 345kV line. The Department of Natural Resources is expected to issue the necessary permits early next year.

Construction on Arrowhead-Weston is expected to be complete by 2008.

ATC plans, constructs, operates and maintains transmission facilities in portions of Wisconsin, Michigan and Illinois. It provides non-discriminatory service to all customers, supporting effective competition in energy markets without favoring any market participant. A member of the Midwest ISO regional transmission organization, ATC owns more than 8,900 miles of transmission lines with a total investment of approximately $700 million in transmission facilities. Visit our Web site at www.atcllc.com for more information.

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