SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
Current Report On
FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
OCTOBER 6, 1999
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Commission Registrant; State of Incorporation IRS Employer
File Number Address; and Telephone Number Identification No.
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1-9057 WISCONSIN ENERGY CORPORATION 39-1391525
(A Wisconsin Corporation)
231 West Michigan Street
P.O. Box 2949
Milwaukee, WI 53201
(414) 221-2345
1-1245 WISCONSIN ELECTRIC POWER COMPANY 39-0476280
(A Wisconsin Corporation)
231 West Michigan Street
P.O. Box 2046
Milwaukee, WI 53201
(414) 221-2345
FORM 8-K
WISCONSIN ENERGY CORPORATION
WISCONSIN ELECTRIC POWER COMPANY
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ITEM 5. OTHER EVENTS
GIDDINGS & LEWIS INC/ CITY OF WEST ALLIS LAWSUIT
As previously reported, iron-cyanide-bearing wastes were found at two
sites in West Allis, Wisconsin. One site is on property formerly owned by
Kearney & Trecker Corporation, now a part of Giddings & Lewis Inc. The
other site is owned by the City of West Allis. Environmental remediation
at both sites was completed several years ago, with the current owners
paying for disposal of materials found on their respective portions of the
sites.
On July 25, 1996, Giddings & Lewis, Kearney & Trecker and the City of
West Allis filed an action for damages in the Milwaukee County Circuit
Court against Wisconsin Electric Power Company, the principal utility
subsidiary of Wisconsin Energy Corporation, alleging that Wisconsin
Electric was responsible for deposition of the material in 1959 and
therefore liable to the plaintiffs. Investigations into the potential
source of the waste led Wisconsin Electric to believe that it was not the
source of this waste.
On July 14, 1999, a Milwaukee County Circuit Court jury issued a
verdict against Wisconsin Electric in the lawsuit that awarded the
plaintiffs $4.5 million as actual damages for clean-up costs and loss of
property value and also awarded the plaintiffs $100 million in punitive
damages. On October 6, 1999, the Wisconsin trial court judge denied
Wisconsin Electric's post trial motions and directed that judgment on the
verdict be entered. Under Wisconsin law, interest at the rate of 12% per
annum will accrue until the judgment is reversed or satisfied.
Wisconsin Electric is presently seeking a stay of execution on the
judgment pending appeal and will file an appeal of the case to the
Wisconsin Court of Appeals. In the opinion of management, based in part on
the advice of legal counsel, the jury verdict was not supported by the
evidence or the law and the unprecedented award of punitive damages of this
magnitude was unwarranted and should therefore be reversed or substantially
reduced. As such, Wisconsin Electric has not established a reserve for
potential damages from this suit.
FORM 8-K
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
WISCONSIN ENERGY CORPORATION
(Registrant)
/s/Paul Donovan
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Date: October 18, 1999 Paul Donovan, Senior Vice President,
and Chief Financial Officer
WISCONSIN ELECTRIC POWER COMPANY
(Registrant)
/s/Calvin H. Baker
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Date: October 18, 1999 Calvin H. Baker, Vice President -
Finance and Chief Financial Officer
