For Release: 04/01/2014

Wisconsin Public Service Requests New Electric and Natural Gas Rates for 2015

Green Bay, WI - Wisconsin Public Service Corporation (WPS), a subsidiary of Integrys Energy Group, Inc. (NYSE: TEG) today filed a request for new utility rates in 2015 with the Public Service Commission of Wisconsin (PSCW). The proposal calls for an 8.0% increase in electric rates and a decrease of 0.5% in natural gas rates. The company's electric rates have remained relatively unchanged since 2008 and gas distribution rates have decreased over the same period.

In recent years, WPS has been able to delay anticipated increases due to lower fuel costs.

WPS Electric Rate Changes
Year Overall Residential Commercial/Industrial
2009 0.00% 0.00% 0.00%
2010 0.00% 0.00% 0.00%
2011 0.61% 0.44% 0.20%
2012 0.85% 0.00% 3.62%
2013* 0.00% 0.00% 0.00%
2014** -1.31% -1.56% 0.00%

* Rate increase offset by 2012 fuel refund - subject to true up in future proceeding.

** Rate increase offset by 2013 fuel refund and decoupling mechanism.

WPS Natural Gas Rate Changes
Year Overall
2009 -0.44%
2010 +3.08%
2011 -2.22%
2012 -1.98%
2013 -1.10%
2014 +1.23%

If approved, and applied equally to all customer classes, the new rates will result in an increase of about $6.00 monthly for a typical residential electric customer using 600 kilowatt-hours per month. A natural gas customer using 800 therms annually would see a $0.34 monthly decrease. These rate changes continue the trend of WPS typical residential natural gas customers paying less than they did in 2008 - not including the savings they've seen from overall lower gas market prices WPS passes along directly to customers when it purchases the gas for consumption. While prices did increase due to the colder-than-normal winter this year, the 12-month rolling average total cost of distribution and gas prices are about 23% lower than in 2008.

For about the cost of the monthly plan for a single smartphone, WPS customers receive safe and reliable electricity to cool their home, refrigerate and freeze food, do laundry, operate and/or charge all electrical devices in the home and so much more!

While electricity rates have increased over the years, they have done so at a pace less than ordinary inflation (see chart that follows) - making electricity an even better value for customers. For about the cost of the monthly plan for a single smartphone, WPS customers receive safe and reliable electricity to cool their homes, refrigerate or freeze food, do laundry, operate and/or charge all electric devices in the home and so much more! Reflected in the chart below are periods of relatively stable rates when new infrastructure (generation plants and distribution/transmission lines) were not needed to serve customers. The periods of steeper growth primarily reflect the costs to build infrastructure.

"We've found ways to manage and reduce costs while making several improvements for our customers," said Patrick Campshure, WPS Rate Case Consultant. "Customers expect that from us, and rightfully so."

In its request to increase electric rates, the company cited a number of factors, including:

  • Completion of a one-time fuel refund to customers which had the effect of keeping rates flat in 2014.
  • Increased fuel costs for power plants.
  • Increased transmission costs.
  • Improved electric reliability by converting company distribution lines with lower performance history from overhead to underground.
  • General inflation.

As always, rate cases are an iterative process during which WPS and PSCW evaluate the most current data to arrive at final rates sometime near the end of 2014.

About Wisconsin Public Service Corporation

Wisconsin Public Service Corporation, a wholly owned subsidiary of Integrys Energy Group, Inc. (NYSE: TEG), is an investor-owned electric and natural gas utility headquartered in Green Bay, Wisconsin. It serves approximately 441,000 electric customers and 319,000 natural gas customers in residential, agricultural, industrial, and commercial markets. It also provides electric power to wholesale customers. The company's service area includes northeastern Wisconsin and an adjacent portion of Upper Michigan.www.wisconsinpublicservice.com.

  • Patrick Campshure
    Rate Case Consultant
    920-433-1419
  • Media Hotline
    800-977-2250
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