Integrys Energy Group – Creating a New Team and Advancing the Ball at WPS

1. Integrys Energy Group – Creating a New Team and Advancing the Ball at WPS Presented by: Charlie Schrock President Wisconsin Public Service Corporation Presented to: The North Central Electric Association August 28, 2008

2. Integrys Energy Group – A Leading Midwest Energy Company Regulated Natural Gas Holding Company and Other Regulated Electric Nonregulated WPS Investments LLC $4 billion market cap

3. Integrys Energy Group Strategy (SEC 10K) • Maintain and grow a strong regulated utility base • Strategically grow non-regulated business • Integrate resources to provide operational resources • Place strong emphasis on asset and risk management

4. Strong and Diversified Regulated Utility Business • Serving the Midwest for over 120 years • Stable organic earnings growth • Attractive service territories • Generation and distribution capital investment program • Constructive regulatory approach • Delivering superior customer service Regulated service territory Pre-Merger Peoples Energy

5. Serve 140,000 Customers Northeast quadrant of US, adjacent portions of Canada, Texas, and Alberta, Canada 32 pipelines and 6 electric markets Service Center locations United States: CO, IL, KY, ME, MI, NH, NY, OH, TX, VA, WI Canada: AB, ON, QC 2007 Annual Sales Data Revenue: $7 billion Natural gas sales: 765 BCF Electric sales: 18.2 million megawatt-hours Integrys Energy Services – Snapshot

6. Why Create Integrys Energy Group? • Balance the risk in our portfolio • Neither PEC nor WPSR big enough alone • PEC & WPSR strong in the delivery (utility) & energy marketing (nonregulated) spaces

7. Integrys Energy Group market capitalization today Pre Merger Post Merger

8. Customer counts before and after the merger Electric Customers (000s) Pre Merger Post Merger Gas Customers (000s) Post Merger Pre Merger

9. We’ve done a lot! • Some of our accomplishments: • Sold E&P business unit • Staffed a new organization • Created Integrys Business Support • Modernized HR systems • Secured rate relief in Illinois • Negotiated labor contracts in Illinois • Captured synergies

10. Estimated Synergy Savings and External Costs to Achieve

11. Wisconsin Public Service Operations – Advancing the Ball • Arrowhead - Weston Transmission Line • Completed in January 2008 • Weston 4 • Full commercial operation declared June 30, 2008 • Guardian II Laterals project • EOY 2008 in-service • Crane Creek Wind Farm • 99-megawatt Iowa wind project in Iowa - 2009

12. Arrowhead – Weston Transmission Line • Owned by American Transmission Company • Initiated and managed by WPSC • 220 miles from Duluth to Wausau • $439 million • 345,000 volts • 800 MW carrying capacity • Built safe, Within budget, ahead of schedule • Energized on January 23, 2008

13. Arrowhead – Weston Transmission Line

14. Weston 4 Project overview • 500 MW low sulfur coal-fired base-load generation facility • In service 1st quarter 2008, full commercial operation June 30, 2008 • Dairyland Power Cooperative owns 30% interest in Weston 4 • Earned POWER Magazine’s 2008 Plant of the Year award • See: http://www.powermag.com/ArchivedArticleDisplay2.aspx?a=32-CS_Plant&y=2008&m=august

15. September 2002 Announced Project to Public September 2003 Application to PSCW & WDNR February 2004 Dairyland and WPS sign LOI October 2004 PSCW Application Approved Oct. 18, 2004 Air Permit Issued by WDNR Oct. 21, 2004 Construction Phase Began November 23, 2004 Dairyland and WPS Sign Partnership Agrmnt November 2005 OSHA Partnership Agreement Signed January 2006 Started Boiler Pressure Parts Erection February 2007 Electrical Backfeed Completed March 2007 1,000,000 Work Hours w/o Lost Time Injury April 2007 Boiler Hydro Completed November 2007 First Fire on Gas Start of Steam Blows January 2008 Completion of Steam Blows March 2008 First Sync to Grid First Fire on Coal June 1, 2008 Begin commercial operation Weston 4 – Historical Project Milestones

16. Weston 4 Construction Facts • Pipe = 280,000 feet • Cable = 2,300,000 feet • Boiler Pressure Welds = 23,000 • Concrete = 69,000 yards • Railroad Track = 19,500 feet • Electrical Terminations = 111,000 • Recycled 82.4% of debris (by wt.)

17. W4 Recycling (pounds)

18. Safety Metrics Days Away from Work Cases Project to Date: 6

19. Aerial View (July 2005)

20. Generation Building Foundation (July 2005)

21. Aerial View (July 2005)

22. Aerial View (October 2005)

23. Setting Low Pressure Turbine-A Rotor

24. Welding of Spiral Wall Panels

25. First Fire on Gas - Testing

26. The Weston 4Power Plant A World Class Project

27. Weston 4 –POWER MAGAZINE’s 2008 Plant of the Year

28. Guardian II Laterals Project • Guardian II pipeline, owned and constructed by ONEOK • 118 miles from Ixonia to Green Bay • Scheduled completion EOY 2008 • WPSC Laterals • 57 miles of piping, 12” to 20” diameter • 4 new regulator stations • 5 new metering stations • $75 million • In service EOY 2008

29. Guardian II Laterals Project

30. Crane Creek Wind Farm • 99 MW Wind Farm • Howard County, northeastern Iowa • $250 million estimated cost • In service EOY 2009 • About 6000 - 8000 acres required to place 66 1.5 MW turbines

31. Crane Creek Wind Farm

32. Questions?