For Release: 12/22/2009

Costs for Wisconsin Public Service Electric Customers to Remain Flat Overall for 2010; Small Refund Later in Year

Residential electric rates up slightly; natural gas rate increase of about three percent.

Green Bay, WI – The Public Service Commission of Wisconsin today formally approved 2010 electric and natural gas rates for Wisconsin Public Service Corporation (WPS), a subsidiary of Integrys Energy Group (NYSE: TEG).

Electric base rates rise by about 2% for typical residential customers using about 630 kilowatt-hours monthly, but this rise is largely offset by crediting an over-collection resulting from lower-than-expected fuel costs in 2009. The net effect is a cost increase of about $0.50 monthly for the typical residential electric customer. Natural gas rates for residential customers using 900 therms annually will rise about $2.74 monthly (just over three percent).

Originally, WPS had requested significantly higher rate increases based on the anticipated costs of purchased power and fuel, primarily natural gas, to generate electricity. However, the costs of fuel included in the initial request have dropped, reducing the cost increase to customers.

Rates for large industrial customers fall slightly, resulting in 2010 overall electric rates that are about equal to rates in 2009.

Later this year, customers will see a refund of any remaining amounts that were over-collected by WPS in 2009. This, again, is due to the reduced fuel and purchased power costs. The total refund, including interest, is still being calculated.

"We're pleased that the need for large rate increases dissipated with the severe drop in natural gas prices in the latter half of 2009," said John Guntlisbergen, WPS manager of Electric Fuel Cost Recovery. "The economy is showing signs of a rebound, but we understand that any increase to customer bills can be hard to swallow. We hope our fuel costs will stabilize for the near future and take some pressure off electric rates."

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