For Release: 10/07/2009

Recent Rise in Natural Gas Prices Tempers Earlier Forecast; WPS Customers Still Expected to Pay 10-15% Less than Last Winter

Green Bay, WI – Customers of Wisconsin Public Service Corporation (WPS), a subsidiary of Integrys Energy Group, Inc., (NYSE: TEG), will likely benefit from a lower-cost heating season this year, but the benefit may not be as great as predicted earlier.

Natural gas market prices fell from near record levels in July 2008 to the lowest level in years before rising recently. Current market prices are similar to last year at this time (natural gas prices dropped by more than 50% before the start of winter 2008). WPS expects a typical residential customer using 900 therms of gas annually to save about $80 over the winter (November 1 – March 31), a drop of about 12%.

As a natural gas distribution company WPS, like other state utilities passes along the prices it pays for natural gas, whether higher or lower, to customers. The comparisons are based on normal temperatures.

"Despite very high levels of natural gas in storage, natural gas market prices have risen quite a bit in the past month or two," said Kerry Spees, WPS spokesperson. "That is probably happening because there is a forecast for a much colder than normal winter in the northeastern U.S. Even though there is a chance for a milder winter in the Upper Midwest, the natural gas market is nationwide, so we could see pricing effects of increased demand elsewhere in the country."

Even though heating costs are expected to be lower this season, Spees said that customers can still make efforts to conserve and save even more. "There are so many things that customers can do on their own to reduce their heating bills," he said. "And some of them are relatively inexpensive."

WPS is also urging customers who might face difficulty paying winter bills to apply early for energy assistance if they believe they might be eligible, since those funds can be quickly exhausted. Customers may also consider joining the company's Budget Billing Program in which they pay an average bill monthly instead on seasonal high and low bills. More information is available at www.wisconsinpublicservice.com.

Using energy wisely: WPS wants to help. Energy use is a concern for all of us. With expectations for higher heating costs this winter, WPS is helping to show customers how they can save energy – and that can have quite an impact on monthly bills. Taking small steps can add up to significant energy savings. Here are some energy conservation tips for winter:

WPS has many more ideas on ways to minimize your energy use both in the winter and in the summer. At www.wisconsinpublicservice.com, you find tips on lighting and appliances (both large and small), and an on-line cost calculator that can help you determine the approximate cost of energy use for most major appliances.

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