Electric Base Rate Increase Sought for Michigan Customers of Wisconsin Public Service

Green Bay, WI – Wisconsin Public Service Corporation, a subsidiary of Integrys Energy Group, Inc. (NYSE: TEG), today filed a request with the Michigan Public Service Commission (MPSC) to raise electric base rates for its Michigan customers by 3.87%. The requested increase would add about $5.44 to the monthly bill of a typical residential customer using 600 kilowatthours.

“During the last four years, inflation has pushed up consumer prices over 13%,” said David Kyto, Director of the Rate Case Process for Public Service. “We’re asking for less than a 4% base rate increase. It’s primarily needed to help offset inflationary pressures and to pay costs associated with the new Weston 4 Power Plant.”

Kyto noted that the request does not include any additional funds for employee medical, dental, and pensions even though those costs are rising. “We’re holding the line on those kinds of costs and not passing them along to customers,” Kyto said. “We have made changes to our benefit plans, and employees are also contributing more to the cost of those benefits.”

If approved by the MPSC, the new rates would likely become effective late in 2007 or early in 2008. The increase would impact approximately 9,000 retail electric customers in Menominee County, Michigan. Kyto also noted that customers could see additional rate changes in 2008 related to the cost of fuel used to generate electricity and purchase power. Those costs are addressed in separate annual proceedings