For Release: 09/25/2007

Michigan Gas Utilities Lowers Natural Gas Costs -- To Begin Heating Season

Monroe, MI -- Officials of Michigan Gas Utilities, a subsidiary of Integrys Energy Group, Inc. (NYSE: TEG), announced today it would reduce natural gas costs 13% to begin the month of October.

"The cost per ccf (one ccf equals 100 cubic feet of natural gas) filed with the Michigan Public Service Commission October 1, will be $0.672/ccf, the lowest cost since February of this year, when the cost was $0.650/ccf," said Michigan Gas Utilities President Gary Erickson. "As temperatures begin to fall this time of year, this is a nice reduction in our Gas Cost Recovery (GCR), which we are pleased to pass on to our customers."

In comparing October 2006 to October 2007, there is a 27% decrease to start this year's heating season compared to last year and that's welcomed news. However, weather in the Gulf of Mexico needs to remain calm. If tropical storms or hurricanes threaten or damage natural gas production, prices could go higher. "We're in good shape for this time of the year," Erickson said. "Our plan for injecting natural gas into storage during the past several months is on target and is nearly complete, as well."

The GCR is merely a pass-through cost, as the utility cannot profit from the cost of natural gas it provides to its customers under state law. The October reduction will be effective for bills issued on and after the first billing cycle in October.

Mr. Erickson challenged customers to weatherize their homes during the month of October and refer to www.michigangasutilities.com for dozens of energy-saving tips. "Your house is your home and it needs to be comfortable," he said. "Weather-stripping, caulking, a programmable thermostat, and furnace maintenance (by a certified technician) all play a huge role in customers being comfortable this winter."

To ensure the safety of customers, every home should have smoke- and carbon-monoxide detectors, and it never hurts to have fire extinguishers on each floor of the home.

Erickson indicated that as the heating season moves along, depending on the weather and natural gas price indexes, MGU may raise or lower the GCR according to the plan filed with the Michigan Public Service Commission. Under the plan, MGU could raise the GCR to a ceiling of $.90385/CCF through the upcoming heating season.

"Michigan Gas Utilities customers have plenty of options going into the heating season," Erickson added. "Budget Billing, Automatic Payment and Quick Payment are methods preferred by many of our customers. However, customers having difficult times paying their gas bills need to let us know early in the season, by enrolling in our Winter Protection Plan or utilizing funds from The Heat and Warmth Fund (THAW). More information is available by calling our Customer Service number at 800-401-6402."

Michigan Gas Utilities provides natural gas to nearly 165,000 customers across southern and western Michigan.

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