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For Release: 02/02/2009

UPPCO Seeks Bids for AuTrain Hydroelectric Project

Ishpeming, MI – Upper Peninsula Power Company (UPPCO), a subsidiary of Integrys Energy Group (NYSE: TEG), has issued a Request for Proposal (RFP) to sell the AuTrain Dam and hydroelectric project property near Munising, MI.

The company is currently examining all its options for the dam, which needs significant modifications to conform to Federal Energy Regulatory Commission rules regarding its ability to withstand a Probable Maximum Flood (PMF). A PMF is sometimes referred to as a 10,000-year flood.

The cost of modifications to the dam and currently forecasted electricity prices suggest that this asset is not competitive with other generating resources available to UPPCO.

Selling the dam and land to an independent power producer (IPP) is one of the options UPPCO is considering in lieu of petitioning FERC for approval to abandon and remove the dam.

“IPPs are allowed a different method of accounting for these projects,” said Charlie Severance, General Manager of Renewable and Wholesale Energy for Integrys Energy Group, UPPCO’s parent company. “It’s quite possible that an IPP could find the economics of the Au Train project would meet their needs.”

UPPCO expects the RFPs back by the end of March 2009.

In addition to seeking the RFPs, UPPCO is studying options for removing the AuTrain from the FERC licensing process and transferring it to the State of Michigan jurisdiction. That option may allow the dam to be sold to entities that would not use it to generate electricity.

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