Washington Group Receives Limited Notice to Proceed on Engineering, Procurement, Construction Services Contract for Wisconsin Power Plant

Business Wire, March 3, 2003

Energy Editors/Business Editors

BOISE, Idaho--(BUSINESS WIRE)--March 3, 2003

Washington Group International (OTCBB:WGII) announced today that it has received a limited notice to proceed (LNTP) from We Power LLC on an engineering, procurement, and construction contract for a new 500-megawatt, combined-cycle, natural-gas-fueled unit at Port Washington, Wisconsin.

The Public Service Commission of Wisconsin (PSCW) approved the Port Washington Generating Station project in December of 2002. The total installed cost of the first unit is $326 million.

We Power is a non-regulated energy development unit of Wisconsin Energy Corporation, and was established to design, build, and own new generation in Wisconsin.

Under the limited notice to proceed, Washington Group will engage in engineering and procurement activities for the first of the two natural gas-fueled generating units. Construction of the first unit is expected to begin later this year.

"Unlike many other parts of the country where power projects are being scaled back, this region has significant energy needs that require that this plant be brought on line as soon as possible," said Stephen G. Hanks, president and chief executive officer of Washington Group. "As a result of the Public Service Commission's approval to proceed with the Port Washington Generating Station, this notice really moves the project into high gear. It's a big step toward the manifestation of Wisconsin Energy's Power the Future program, and it adds another chapter to Washington Group's long service to the power industry."

Under the Power the Future program, Wisconsin Energy plans to add approximately 2,800 megawatts of new electric generating capacity in Wisconsin to ensure reliable and affordable supplies of electric energy for the state's future, and to support continued economic growth.

The new Port Washington Generating Station will consist of two natural-gas-fueled power generation units. Each unit will consist of two combustion turbines, two heat recovery steam generators, and one steam turbine.

Washington Group has a history of successful projects with Wisconsin Energy, including the replacement of steam generators at We Energies' Point Beach Nuclear Plant. Washington Group is currently completing installation of a selective catalytic reduction system at We Energies' Pleasant Prairie Power Plant in southeastern Wisconsin.

Wisconsin Energy Corporation (NYSE:WEC) is a Milwaukee-based holding company with subsidiaries in utility and non-utility businesses. The company serves more than one million electric customers and more than 960,000 natural gas customers throughout Wisconsin and Michigan's Upper Peninsula through its utility subsidiaries We Energies and Edison Sault Electric. Its non-utility subsidiaries include energy development, pump manufacturing, recycling and renewable energy, and real estate businesses.

Washington Group International, Inc. provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. With approximately 30,000 employees at work in over 40 states and more than 30 countries, the company offers a full life-cycle of services as a preferred provider of premier science, engineering, construction, operations, maintenance, program management and development services in 14 major markets.

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This news release contains forward-looking statements within the meaning of the private securities litigation reform act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Such forward-looking statements are necessarily based on various assumptions and estimates and are inherently subject to various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in social, economic, business industry, market, legal, and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including the corporation's customers, suppliers, business partners, and competitors and legislative, regulatory, judicial, and other governmental authorities and officials.