For Release: 02/16/2010

UPPCO to Transfer Ownership of Au Train Dam

Companies entered into a sales agreement subject to regulatory approval

Houghton MI - Upper Peninsula Power Company (UPPCO), a subsidiary of Integrys Energy Group (NYSE: TEG), has reached agreement with North American Hydro to transfer ownership of UPPCO's Au Train dam and power plant, along with the corresponding Federal Energy Regulatory Commission (FERC) operating license. North American Hydro is the largest independent power producer in the Midwest. The agreement is subject to FERC approval.

UPPCO sought to divest itself of the hydro due to concerns about the cost of repairs needed for the dam to withstand the "probable maximum flood."

"This is great news for Au Train residents and others who use the flowage area for recreation," said Keith Moyle, Vice President and General Manager of UPPCO. "At public meetings they made it clear they wanted the dam to remain intact, which was our preference, too. We appreciate the community's patience while we took the time we needed to work things though. If everything goes as planned, this will be a positive change all around."

Financial terms of the transfer were not disclosed.

Moyle said that UPPCO has scheduled another public meeting at the Au Train Township Hall on Wednesday, February 24, 2010, at 6:00 P.M. to update residents and answer questions about the transfer.

"If the process goes well, we expect to have the necessary approval to close the deal before the end of 2010," Moyle said.

For More Information, Contact: