GUARANTEES

We enter into various guarantees to provide financial and performance assurance to third parties on behalf of our affiliates. As of December 31, 2011, we had the following guarantees:



	Maximum Potential		Liability
	Future Payments	Outstanding	Recorded
	(Millions of Dollars)

Guarantees	$2.7	$0.1	$—
Letters of Credit	$1.6	$0.1	$—

We provide guarantees to support obligations of our affiliates to third parties under agreements and surety bonds. In the event our affiliates fail to perform, we would be responsible for the obligations.

Wisconsin Electric is subject to the potential retrospective premiums that could be assessed under its insurance program.