For Release: 09/21/2009

Integrys Energy Services Exits Natural Gas and Electric Marketing Businesses in Canada

Sale of natural gas storage contract completed; sale of natural gas and electric power contract portfolio closed

Chicago - September 21, 2009 - Integrys Energy Group, Inc. (NYSE: TEG) today announced that Integrys Energy Services of Canada Corp., a subsidiary of its nonregulated subsidiary, Integrys Energy Services, Inc., has closed its transaction to sell nearly all of its Canadian natural gas and electric power contract portfolio to Shell Energy North America (Canada) Inc., a subsidiary of Shell Energy North America (US). Effective October 1, 2009, these customer contracts will be integrated into Shell Energy's existing natural gas and power portfolio.

In a separate transaction, Integrys Energy Services of Canada Corp. has completed the sale of its 2-bcf natural gas storage contract to TransCanada Gas Storage Partnership, a subsidiary of TransCanada Corporation, one of the largest natural gas storage providers in North America with approximately 370 bcf of storage capacity.

With these two transactions, Integrys Energy Services, Inc. has exited electric and natural gas marketing in all provinces in Canada, leaving only the New Brunswick-based power generation and associated electricity production. As a result of the closing of these two transactions, Integrys Energys Group's collateral support requirements, which include corporate guarantees, letters of credit and cash, are expected to be reduced by approximately $300 million by year-end 2009.

"These transactions demonstrate our commitment to reducing the collateral requirements and capital investment for Integrys Energy Services," said Integrys Energy Group President and Chief Executive Officer Charles A. Schrock. "These deals, part of our structured capital redeployment process, will strengthen our balance sheet to support the growth of our core regulated utilities business."

J.P. Morgan Securities acted as exclusive financial advisor to Integrys Energy Group and Thorndike Landing acted as lead advisor to Integrys Energy Services for these transactions.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.

About Integrys Energy Group, Inc.

Integrys Energy Group is a diversified holding company with regulated utility operations operating through six wholly owned subsidiaries, Wisconsin Public Service Corporation, The Peoples Gas Light and Coke Company, North Shore Gas Company, Upper Peninsula Power Company, Michigan Gas Utilities Corporation and Minnesota Energy Resources Corporation; nonregulated operations serving the competitive energy markets in the United States and Canada through its wholly owned nonregulated subsidiary, Integrys Energy Services; and a 34% equity ownership interest in American Transmission Company LLC (an electric transmission company operating in Wisconsin, Michigan, Minnesota and Illinois). More information about Integrys Energy Group, Inc. is available online at www.integrysgroup.com

About Shell Energy North America

Houston-based Shell Energy, a wholly owned subsidiary of Royal Dutch Shell plc (Shell), serves its customers through its regional offices located throughout the United States and Canada. As an integral part of the Shell Trading network of companies, Shell Energy is the primary marketer of Shell’s equity natural gas in North America. As a leader in gas and power marketing, Shell Energy and its subsidiaries, trade and market natural gas, wholesale power, environmental products and risk management products with counterparties and customers throughout the region. More information about Shell Energy is available online at www.shell.com/us/energy

About TransCanada With more than 50 years’ experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 370 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP. More information about TransCanada is available online at www.transcanada.com

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