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For Release: 06/04/2010

UPPCO Expands Search for Buyer of Cataract Dam and Flowage Property

The company has determined that it is uneconomical to repair the facilities

Ishpeming, MI – Upper Peninsula Power Company (UPPCO) is in the final stages of evaluating its options regarding the disposition of the Cataract Dam and property on the Escanaba River near Gwinn, MI. Its studies showed that the cost to repair the dam's penstock, which has reached the end of its useful life, would be higher than the revenue produced by the dam. Previously, UPPCO had marketed the dam and approximately 900 acres as an electrical generating facility. Now, to potentially increase its options, UPPCO will offer the dam and property for other purposes and consider its options to surrender the license to operate. The last resort is to remove the dam and return the river to its original banks.

UPPCO Vice President & General Manager Keith Moyle said, "It's such a beautiful flowage, we've decided to see if there are other buyers out there who would purchase it, including the dam and powerhouse, and keep the flowage as is. The dam does not have safety issues and is in the low-risk category so an entity could find it profitable to buy the property to either develop it or use it as forest management and still keep the flowage."

Moyle said the company would contact buyers who may be interested in such properties, including developers, logging interests, and others.

"One way or the other, we'll know more in a couple months," Moyle said. "We don't want to let this issue drag on."

People with questions or comments may contact Kerry Spees, (920) 433-1589 or kaspees@integrysgroup.com.

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