It turns out that the not wrapping was being caused by this line
wbk.ActiveWorksheet.MergedCellsRegions.Add(UltraWebGrid1.Rows.Count + 16 + i, 1, UltraWebGrid1.Rows.Count + 16 + i, 3);
Is is possible to have a MergedCellRegion wrap text AND to have the cell expand vertically to fit the text? Thoughts?