8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report:           November 5, 2012          

(Date of earliest event reported)

Commission File Number	Registrant; State of Incorporation Address; and Telephone Number	IRS Employer Identification No.
1-11337	INTEGRYS ENERGY GROUP, INC. (A Wisconsin Corporation) 130 East Randolph Street Chicago, Illinois  60601-6207 (312) 228-5400	39-1775292

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02	Results of Operations and Financial Condition
On November 5, 2012, Integrys Energy Group, Inc. will issue a news release reporting its financial results for the quarter and year ended September 30, 2012.  A copy of the news release is filed with this Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
Integrys Energy Group will hold an earnings conference call on November 6, 2012, to discuss the 2012 financial performance of Integrys Energy Group and its subsidiaries.  For information on how to participate in the conference call, see the news release attached as Exhibit 99.1.
Item 9.01	Financial Statements and Exhibits.
	(a)	Not applicable.
	(b)	Not applicable.
	(c)	Not applicable.
	(d)	Exhibits.  The following exhibit is being filed herewith:
		99.1	News Release dated November 5, 2012, reporting Integrys Energy Group, Inc. financial results for the quarter and year ended September 30, 2012.

2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
	INTEGRYS ENERGY GROUP, INC. By:  /s/ Joseph P. O'Leary                                              Joseph P. O'Leary      Senior Vice President and Chief Financial Officer
Date:  November 5, 2012

3

INTEGRYS ENERGY GROUP, INC.

Exhibit Index to Form 8-K

Dated November 5, 2012

Exhibit Number
99.1	News Release dated November 5, 2012, reporting Integrys Energy Group, Inc. financial results for the quarter and year ended September 30, 2012.

4

EX-99.1

[Integrys Energy Group, Inc. logo]

Integrys Energy Group, Inc.

Third Quarter 2012 Earnings

Released November 5, 2012

Contents

	Pages
News Release	5
Condensed Consolidated Statements of Income	1
Condensed Consolidated Statements of Comprehensive Income	1
Condensed Consolidated Balance Sheets	1
Condensed Consolidated Statements of Cash Flows	1
Diluted Earnings Per Share – Adjusted and Weather Impacts	1
Non-GAAP Financial Information Reported by Segment	4
Non-GAAP Adjusted Earnings Variance Drivers – By Segment	2
Diluted Earnings Per Share Guidance Information	1
Supplemental Quarterly Financial Highlights	3

[Integrys Energy Group, Inc. logo]

NEWS RELEASE
For Immediate Release
November 5, 2012
	Contact:	Steven P. Eschbach, CFA
		Vice President – Investor Relations
		Integrys Energy Group, Inc.
		(312) 228-5408

Integrys Energy Group, Inc. Reports Improved Third Quarter 2012 Earnings

Guidance for 2012 Earnings Per Share – Adjusted up 7% Due to Decreased Operating Expenses

Chicago – November 5, 2012 – Integrys Energy Group, Inc. (NYSE: TEG) recognized earnings on a Generally Accepted Accounting Principles (GAAP) basis and an adjusted basis as follows:

	Quarter Ended September 30				Nine Months Ended  September 30
	2012		2011		2012		2011
GAAP earnings (millions)	$	65.7	$	36.9	$	213.4	$	188.7
GAAP diluted earnings per share	$	0.83	$	0.47	$	2.69	$	2.39
Adjusted earnings (millions) *	$	43.1	$	33.2	$	187.7	$	187.5
Diluted earnings per share – adjusted *	$	0.55	$	0.42	$	2.37	$	2.38

Adjusted earnings exclude the effects of certain items that are not comparable from one period to the next.

Third Quarter Results

Earnings were up this quarter compared with the same quarter last year on both a GAAP basis and an adjusted basis. Rate increases effective in January 2012 at The Peoples Gas Light and Coke Company, North Shore Gas Company, and Upper Peninsula Power Company drove the increase in adjusted earnings. In addition, maintenance expense at the electric utilities was down quarter over quarter, mainly due to fewer storms in their service territories.

______________________________

* This news release includes non-GAAP financial measures.  Schedules that provide details on these measures and reconcile these measures to the most comparable GAAP figures are included with this news release.

Integrys Energy Group, Inc.

Third Quarter 2012 Earnings

November 5, 2012

Page 2

Partially offsetting the increase in adjusted earnings was the impact of lower sales volumes at the natural gas utilities due to lower use per residential customer in the third quarter of 2012. In addition, wholesale electric utility sales volumes were down.

Weather did not have a significant impact on quarter-over-quarter adjusted earnings.

"I am extremely pleased with the strong adjusted financial results in the third quarter of 2012," said Charles A. Schrock, Chairman, President and Chief Executive Officer of Integrys Energy Group. "Continued cost control efforts by our employees contributed to the increase in our guidance for 2012 diluted earnings per share – adjusted."

EARNINGS FORECAST

Integrys Energy Group’s guidance range for 2012 diluted earnings per share on a GAAP basis was increased to between $3.19 and $3.37. This guidance assumes continued operational improvements, the availability of generation units, and normal weather conditions for the rest of 2012. The company's guidance range for 2012 diluted earnings per share – adjusted was increased to between $3.22 and $3.38. Integrys Energy Group is not estimating the impact of derivative and inventory fair value accounting activities for 2012.

SUPPLEMENTAL DATA PACKAGE

A supplemental data package has been posted on Integrys Energy Group’s website.  It includes this news release, as well as financial statements, non-GAAP financial information, guidance information for diluted earnings per share, and quarterly financial information by reportable segment.

CONFERENCE CALL

An earnings conference call is scheduled for 8 a.m. Central time on Tuesday, November 6, 2012.   The call can be accessed 15 minutes prior to the scheduled start time by dialing 888-788-9425.  Callers will be required to supply EARNINGS as the passcode and MR. STEVEN ESCHBACH as the leader.  A replay of the conference call will be available through February 26, 2013, by dialing 800-513-1175.

Investors may also listen to the live conference or a replay on Integrys Energy Group’s website at http://www.integrysgroup.com/investor/presentations.aspx.

PowerPoint slides will be posted on the website and will be referred to within the prepared remarks during the call.  The slides will be available at 6 a.m. Central time on November 6.

Integrys Energy Group, Inc.

Third Quarter 2012 Earnings

November 5, 2012

Page 3

FORWARD-LOOKING STATEMENTS

Financial results in this news release are unaudited.  In this news release, Integrys Energy Group makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance.  These statements are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous management assumptions, risks, and uncertainties. Therefore, actual results may differ materially from those expressed or implied by these statements. Although Integrys Energy Group believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that such statements will prove correct.

Forward-looking statements involve a number of risks and uncertainties. Some risks that could cause actual results to differ materially from those expressed or implied in forward-looking statements include those described in Item 1A of Integrys Energy Group’s Annual Report on Form 10-K for the year ended December 31, 2011, as may be amended or supplemented in

Part II, Item IA of its subsequently filed Quarterly Reports on Form 10-Q, and those identified below.

• The timing and resolution of rate cases and related negotiations, including recovery of deferred and current costs and the ability to earn a reasonable return on investment, and other regulatory decisions impacting the regulated businesses;

• Federal and state legislative and regulatory changes relating to the environment, including climate change and other environmental regulations impacting coal-fired generation facilities and renewable energy standards;

• Other federal and state legislative and regulatory changes, including deregulation and restructuring of the electric and natural gas utility industries, financial reform, health care reform, energy efficiency mandates, reliability standards, pipeline integrity and safety standards, and changes in tax and other laws and regulations to which Integrys Energy Group and its subsidiaries are subject;

• Costs and effects of litigation and administrative proceedings, settlements, investigations, and claims, including manufactured gas plant site cleanup, third-party intervention in permitting and licensing projects, compliance with Clean Air Act requirements at generation plants, and prudence and reconciliation of costs recovered in revenues through automatic gas cost recovery mechanisms;

• Changes in credit ratings and interest rates caused by volatility in the financial markets and actions of rating agencies and their impact on Integrys Energy Group's and its subsidiaries' liquidity and financing efforts;

• The risks associated with changing commodity prices, particularly natural gas and electricity, and the available sources of fuel, natural gas, and purchased power, including

Integrys Energy Group, Inc.

Third Quarter 2012 Earnings

November 5, 2012

Page 4

	their impact on margins, working capital, and liquidity requirements;
•	The timing and outcome of any audits, disputes, and other proceedings related to taxes;
•	The effects, extent, and timing of additional competition or regulation in the markets in which Integrys Energy Group’s subsidiaries operate;
•	The ability to retain market-based rate authority;
•	The risk associated with the value of goodwill or other intangible assets and their possible impairment;
•	The investment performance of employee benefit plan assets and related actuarial assumptions, which impact future funding requirements;
•	The impact of unplanned facility outages;
•	Changes in technology, particularly with respect to new, developing, or alternative sources of generation;
•	The effects of political developments, as well as changes in economic conditions and the related impact on customer use, customer growth, and the ability to adequately forecast energy use for all of Integrys Energy Group’s customers;
•	Potential business strategies, including mergers, acquisitions, and construction or disposition of assets or businesses, which cannot be assured to be completed timely or within budgets;
•	The risk of terrorism or cyber security attacks, including the associated costs to protect assets and respond to such events;
•	The risk of failure to maintain the security of personally identifiable information, including the associated costs to notify affected persons and to mitigate their information security concerns;
•	The effectiveness of risk management strategies, the use of financial and derivative instruments, and the related recovery of these costs from customers in rates;
•	The risk of financial loss, including increases in bad debt expense, associated with the inability of Integrys Energy Group’s and its subsidiaries’ counterparties, affiliates, and customers to meet their obligations;
•	Unusual weather and other natural phenomena, including related economic, operational, and/or other ancillary effects of any such events;
•	The ability to use tax credit and loss carryforwards;
•	The financial performance of American Transmission Company and its corresponding contribution to Integrys Energy Group’s earnings;
•	The effect of accounting pronouncements issued periodically by standard-setting bodies; and
•	Other factors discussed in reports Integrys Energy Group files with the United States Securities and Exchange Commission.

Except to the extent required by the federal securities laws, Integrys Energy Group undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

About Integrys Energy Group, Inc.

Integrys Energy Group is a diversified energy holding company with regulated natural gas and electric utility operations (serving customers in Illinois, Michigan, Minnesota, and Wisconsin), an approximate 34% equity ownership interest in American Transmission Company (a federally regulated electric transmission company operating in Wisconsin, Michigan, Minnesota, and Illinois), and nonregulated energy operations.

More information is available at www.integrysgroup.com.

- Unaudited Financial Statements to Follow -

INTEGRYS ENERGY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)	Three Months Ended						Nine Months Ended
	September 30						September 30
(Millions, except per share data)	2012			2011			2012			2011
Utility revenues	$	582.3		$	596.2		$	2,116.9		$	2,435.7
Nonregulated revenues		345.3			338.2			898.6			1,130.1
Total revenues		927.6			934.4			3,015.5			3,565.8
Utility cost of fuel, natural gas, and purchased power		228.2			245.7			926.4			1,211.6
Nonregulated cost of sales		263.9			292.8			730.4			985.1
Operating and maintenance expense		240.6			240.3			749.1			760.4
Depreciation and amortization expense		62.9			61.8			187.7			185.3
Taxes other than income taxes		23.8			23.5			74.0			73.5
Operating income		108.2			70.3			347.9			349.9
Earnings from equity method investments		22.2			19.9			65.5			59.6
Miscellaneous income		3.1			1.0			7.2			4.1
Interest expense		(29.9	)		(31.3	)		(90.0	)		(98.0	)
Other expense		(4.6	)		(10.4	)		(17.3	)		(34.3	)
Income before taxes		103.6			59.9			330.6			315.6
Provision for income taxes		29.4			22.5			106.3			121.7
Net income from continuing operations		74.2			37.4			224.3			193.9
Discontinued operations, net of tax		(7.9	)		0.2			(8.7	)		(2.9	)
Net income		66.3			37.6			215.6			191.0
Preferred stock dividends of subsidiary		(0.7	)		(0.7	)		(2.3	)		(2.3	)
Noncontrolling interest in subsidiaries		0.1			-			0.1			-
Net income attributed to common shareholders	$	65.7		$	36.9		$	213.4		$	188.7
Average shares of common stock
Basic		78.5			78.7			78.5			78.6
Diluted		79.3			79.2			79.3			78.9
Earnings (loss) per common share (basic)
Net income from continuing operations	$	0.94		$	0.47		$	2.83		$	2.44
Discontinued operations, net of tax		(0.10	)		-			(0.11	)		(0.04	)
Earnings per common share (basic)	$	0.84		$	0.47		$	2.72		$	2.40
Earnings (loss) per common share (diluted)
Net income from continuing operations	$	0.93		$	0.47		$	2.80		$	2.43
Discontinued operations, net of tax		(0.10	)		-			(0.11	)		(0.04	)
Earnings per common share (diluted)	$	0.83		$	0.47		$	2.69		$	2.39
Dividends per common share declared	$	0.68		$	0.68		$	2.04		$	2.04

INTEGRYS ENERGY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)	Three Months Ended						Nine Months Ended
	September 30						September 30
(Millions)	2012			2011			2012			2011
Net income	$	66.3		$	37.6		$	215.6		$	191.0
Other comprehensive income, net of tax:
Cash flow hedges
Unrealized net gains (losses) arising during period, net of tax of $0.1 million, $ - million,
$(0.1) million, and $1.2 million, respectively		0.1			(0.4	)		(0.1	)		1.5
Reclassification of net losses to net income, net of tax of $1.0 million, $0.6 million,
$2.6 million, and $3.4 million, respectively		1.6			1.3			4.1			5.4
Cash flow hedges, net		1.7			0.9			4.0			6.9
Defined benefit pension plans
Amortization of pension and other postretirement benefit costs included in net periodic benefit cost,
net of tax of $0.2 million, $0.2 million, $0.7 million,  and $0.4 million, respectively		0.4			0.2			1.1			0.7
Other comprehensive income, net of tax		2.1			1.1			5.1			7.6
Comprehensive income		68.4			38.7			220.7			198.6
Preferred stock dividends of subsidiary		(0.7	)		(0.7	)		(2.3	)		(2.3	)
Noncontrolling interest in subsidiaries		0.1			-			0.1			-
Comprehensive income attributed to common shareholders	$	67.8		$	38.0		$	218.5		$	196.3

INTEGRYS ENERGY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)	September 30			December 31
(Millions)	2012			2011
Assets
Cash and cash equivalents	$	18.1		$	28.1
Collateral on deposit		51.6			50.9
Accounts receivable and accrued unbilled revenues, net of reserves of $42.0 and $47.1, respectively		484.6			737.7
Inventories		320.7			298.0
Assets from risk management activities		158.3			227.2
Regulatory assets		117.6			125.1
Assets held for sale		13.0			26.1
Deferred income taxes		102.7			94.2
Prepaid taxes		129.9			209.6
Other current assets		23.1			29.0
Current assets		1,419.6			1,825.9
Property, plant, and equipment, net of accumulated depreciation of $3,120.0 and $3,006.9, respectively		5,473.0			5,177.8
Regulatory assets		1,621.2			1,658.5
Assets from risk management activities		42.7			64.4
Equity method investments		506.7			476.3
Goodwill		658.3			658.4
Other long-term assets		122.8			121.9
Total assets	$	9,844.3		$	9,983.2
Liabilities and Equity
Short-term debt	$	410.3		$	303.3
Current portion of long-term debt		387.0			250.0
Accounts payable		368.1			426.6
Liabilities from risk management activities		192.9			311.5
Accrued taxes		45.5			70.5
Regulatory liabilities		80.3			67.5
Liabilities held for sale		27.4			27.3
Other current liabilities		243.7			217.0
Current liabilities		1,755.2			1,673.7
Long-term debt		1,708.1			1,845.0
Deferred income taxes		1,176.9			1,070.7
Deferred investment tax credits		47.6			44.0
Regulatory liabilities		354.2			332.5
Environmental remediation liabilities		594.9			615.1
Pension and other postretirement benefit obligations		530.5			749.3
Liabilities from risk management activities		61.2			102.0
Asset retirement obligations		413.5			397.2
Other long-term liabilities		139.3			141.1
Long-term liabilities		5,026.2			5,296.9
Commitments and contingencies
Common stock - $1 par value; 200,000,000 shares authorized; 78,287,906 shares issued; 77,907,270 shares outstanding		78.3			78.3
Additional paid-in capital		2,571.5			2,579.1
Retained earnings		417.0			363.6
Accumulated other comprehensive loss		(37.4	)		(42.5	)
Shares in deferred compensation trust		(17.6	)		(17.1	)
Total common shareholders' equity		3,011.8			2,961.4
Preferred stock of subsidiary - $100 par value; 1,000,000 shares authorized; 511,882 shares issued; 510,495 shares outstanding		51.1			51.1
Noncontrolling interest in subsidiaries		-			0.1
Total liabilities and equity	$	9,844.3		$	9,983.2

INTEGRYS ENERGY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)			Nine Months Ended
			September 30
(Millions)			2012			2011
Operating Activities
Net income			$	215.6		$	191.0
Adjustments to reconcile net income to net cash provided by operating activities
	Discontinued operations, net of tax			8.7			2.9
	Depreciation and amortization expense			187.7			185.3
	Recoveries and refunds of regulatory assets and liabilities			12.6			42.8
	Net unrealized gains on energy contracts			(42.8	)		(18.9	)
	Bad debt expense			19.3			27.3
	Pension and other postretirement expense			46.7			54.1
	Pension and other postretirement contributions			(247.8	)		(109.7	)
	Deferred income taxes and investment tax credits			86.8			155.9
	Equity income, net of dividends			(13.4	)		(11.2	)
	Other			32.9			24.7
	Changes in working capital
		Collateral on deposit		(1.1	)		(9.8	)
		Accounts receivable and accrued unbilled revenues		232.6			295.5
		Inventories		(20.9	)		(71.4	)
		Other current assets		66.9			16.3
		Accounts payable		(45.1	)		(56.3	)
		Other current liabilities		5.7			(83.8	)
Net cash provided by operating activities				544.4			634.7
Investing Activities
Capital expenditures				(437.8	)		(203.2	)
Capital contributions to equity method investments				(24.0	)		(25.6	)
Acquisition of compressed natural gas fueling companies, net of cash acquired				1.3			(42.6	)
Other				11.7			4.8
Net cash used for investing activities				(448.8	)		(266.6	)
Financing Activities
Short-term debt, net				107.0			240.2
Repayment of notes payable				-			(10.0	)
Issuance of long-term debt				28.0			-
Repayment of long-term debt				(28.2	)		(556.2	)
Proceeds from stock option exercises				54.9			8.0
Shares purchased for stock-based compensation				(85.1	)		(10.9	)
Payment of dividends
	Preferred stock of subsidiary			(2.3	)		(2.3	)
	Common stock			(159.0	)		(153.4	)
Payments made on derivative contracts related to divestitures classified as financing activities				(27.9	)		(29.3	)
Other				0.5			(3.5	)
Net cash used for financing activities				(112.1	)		(517.4	)
Change in cash and cash equivalents - continuing operations				(16.5	)		(149.3	)
Change in cash and cash equivalents - discontinued operations
	Net cash provided by (used for) operating activities			6.6			(1.2	)
	Net cash used for investing activities			(0.1	)		(0.9	)
	Net cash used for financing activities			-			(0.3	)
Net change in cash and cash equivalents				(10.0	)		(151.7	)
Cash and cash equivalents at beginning of period				28.1			179.0
Cash and cash equivalents at end of period			$	18.1		$	27.3

Integrys Energy Group, Inc.

Diluted Earnings Per Share – Adjusted

and Weather Impacts

Diluted Earnings Per Share Information (Non-GAAP Information)

We prepare financial statements in accordance with accounting principles generally accepted in the United States (GAAP).  In addition, we disclose and discuss diluted earnings per share (EPS) – adjusted and adjusted earnings (loss), which are non-GAAP measures.  Management uses these measures in its internal performance reporting and for reports to the Board of Directors.  We disclose these measures in our quarterly earnings releases, on investor conference calls, and during investor conferences and related events.  Management believes that diluted EPS – adjusted and adjusted earnings (loss) are useful measures for providing investors with additional insight into our operating performance.  These measures allow investors to better compare our financial results from period to period, as they eliminate the effects of certain items that are not comparable.  This additional information is not meant to be considered in isolation or as a substitute for our results of operations prepared and presented in conformance with GAAP.  Tax impacts are calculated using the applicable combined federal and state statutory rate modified for any attributable permanent tax effect and/or tax credit.

	Three Months Ended September 30						Nine Months Ended September 30
	2012			2011			2012			2011
Diluted EPS	$	0.83		$	0.47		$	2.69		$	2.39
Special Items (net of taxes):
Net noncash gains related to derivative and inventory accounting activities		(0.31	)		(0.05	)		(0.36	)		(0.14	)
Tax expense (benefit) at the regulated utility segments related to health care reform legislation		(0.07	)		-			(0.07	)		0.02
Discontinued operations		0.10			-			0.11			0.04
Tax expense resulting from Michigan law change		-			-			-			0.05
Restructuring expense		-			-			-			0.02
Diluted EPS – adjusted	$	0.55		$	0.42		$	2.37		$	2.38
Average Shares of Common Stock – Diluted (in millions)		79.3			79.2			79.3			78.9

Weather Impacts (Compared to Normal, Net of Decoupling)

	Three Months Ended September 30					Nine Months Ended September 30
Dollar Impacts, net of taxes (Millions)	2012			2011		2012			2011
Natural Gas Utility Segment	$	0.2	(1)	$	0.4	$	(22.1	) (2)	$	2.5
Electric Utility Segment		-			-		(2.3	)		(0.1	)
Integrys Energy Services – Core		-			-		(2.2	)		0.8
Total	$	0.2		$	0.4	$	(26.6	)	$	3.2

(1) Reflects the $0.8 million after-tax impact of a reduction in reserves against regulatory assets at Peoples Gas and North Shore Gas related to permanent decoupling mechanisms.

(2) Reflects the $8.9 million after-tax impact of an increase in reserves against regulatory assets at Peoples Gas and North Shore Gas related to permanent decoupling mechanisms.

	Three Months Ended September 30					Nine Months Ended September 30
Diluted EPS Impacts, net of taxes	2012			2011		2012			2011
Natural Gas Utility Segment	$	-	(1)	$	0.01	$	(0.28	) (2)	$	0.03
Electric Utility  Segment		-			-		(0.03	)		-
Integrys Energy Services – Core		-			-		(0.03	)		0.01
Total	$	-		$	0.01	$	(0.34	)	$	0.04

(1) Reflects the $0.01 after-tax impact of a reduction in reserves against regulatory assets at Peoples Gas and North Shore Gas related to permanent decoupling mechanisms.

(2) Reflects the $0.11 after-tax impact of an increase in reserves against regulatory assets at Peoples Gas and North Shore Gas related to permanent decoupling mechanisms.

Integrys Energy Group, Inc.

Non-GAAP Financial Information Reported by Segment

Net income (loss) attributed to common shareholders is adjusted by reportable segment for the financial impact of special items for the quarters ended September 30, 2012 and 2011.

September 30, 2012 (Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Integrys EnergyServices					Holding Company and Other			Integrys Energy Group Consolidated
									Core		Other
Net income (loss) attributed to    common shareholders	$	(14.0	)	$	47.2		$	13.4	$	7.6	$	16.6		$	(5.1	)	$	65.7
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities		(0.1	)		-			-		-		(24.5	)		-			(24.6	)
Reversal of tax expense related to health care reform legislation		(1.2	)		(4.7	)		-		-		-			-			(5.9	)
Discontinued operations		-			-			-		-		7.9			-			7.9
Adjusted earnings (loss)	$	(15.3	)	$	42.5		$	13.4	$	7.6	$	-		$	(5.1	)	$	43.1

September 30, 2011 (Millions)	Natural Gas Utility			Electric Utility		Electric Transmission Investment			Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
									Core		Other
Net income (loss) attributed to   common shareholders	$	(20.0	)	$	39.5	$	12.2		$	6.9	$	4.0		$	(5.7	)	$	36.9
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities at Integrys Energy Services		-			-		-			-		(3.8	)		-			(3.8	)
Tax expense related to health care reform legislation		0.1			-		-			-		-			-			0.1
Discontinued operations		-			-		-			-		(0.2	)		-			(0.2	)
Tax expense (benefit) resulting from Michigan law change		-			-		(0.2	)		-		-			0.4			0.2
Adjusted earnings (loss)	$	(19.9	)	$	39.5	$	12.0		$	6.9	$	-		$	(5.3	)	$	33.2

Integrys Energy Group, Inc.

Non-GAAP Financial Information Reported by Segment

Diluted earnings per share is adjusted by reportable segment for the financial impact of special items on diluted earnings per share for the quarters ended September 30, 2012 and 2011.

September 30, 2012	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
									Core		Other
Diluted EPS	$	(0.18	)	$	0.60		$	0.17	$	0.09	$	0.21		$	(0.06	)	$	0.83
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities		-			-			-		-		(0.31	)		-			(0.31	)
Reversal of tax expense related to health care reform legislation		(0.01	)		(0.06	)		-		-		-			-			(0.07	)
Discontinued operations		-			-			-		-		0.10			-			0.10
Diluted EPS – adjusted	$	(0.19	)	$	0.54		$	0.17	$	0.09	$	-		$	(0.06	)	$	0.55

September 30, 2011	Natural Gas Utility			Electric Utility		Electric Transmission Investment		Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
								Core		Other
Diluted EPS	$	(0.25	)	$	0.50	$	0.15	$	0.09	$	0.05		$	(0.07	)	$	0.47
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities at Integrys Energy Services		-			-		-		-		(0.05	)		-			(0.05	)
Tax expense related to health care reform legislation		-			-		-		-		-			-			-
Discontinued operations		-			-		-		-		-			-			-
Tax expense (benefit) resulting from Michigan law change		-			-		-		-		-			-			-
Diluted EPS – adjusted	$	(0.25	)	$	0.50	$	0.15	$	0.09	$	-		$	(0.07	)	$	0.42

Integrys Energy Group, Inc.

Non-GAAP Financial Information Reported by Segment

Net income (loss) attributed to common shareholders is adjusted by reportable segment for the financial impact of special items for the nine months ended September 30, 2012 and 2011.

September 30, 2012 (Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Integrys EnergyServices					Holding Company and Other			Integrys Energy Group Consolidated
									Core		Other
Net income (loss) attributed to   common shareholders	$	53.4		$	92.4		$	39.8	$	17.2	$	17.8		$	(7.2	)	$	213.4
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities		(0.2	)		-			-		-		(28.3	)		-			(28.5	)
Reversal of tax expense related to health care reform legislation		(1.2	)		(4.7	)		-		-		-			-			(5.9	)
Discontinued operations		-			-			-		-		10.5			(1.8	)		8.7
Adjusted earnings (loss)	$	52.0		$	87.7		$	39.8	$	17.2	$	-		$	(9.0	)	$	187.7

September 30, 2011 (Millions)	Natural Gas Utility			Electric Utility		Electric Transmission Investment		Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
								Core		Other
Net income (loss) attributed to   common shareholders	$	58.4		$	82.8	$	35.6	$	20.5	$	7.2		$	(15.8	)	$	188.7
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities at Integrys Energy Services		-			-		-		-		(11.2	)		-			(11.2	)
Tax expense (benefit) related to health care reform legislation		0.4			1.3		-		-		-			(0.1	)		1.6
Discontinued operations		-			-		-		-		2.0			0.9			2.9
Tax expense (benefit) resulting from Michigan law change		(0.8	)		-		0.2		-		1.0			4.0			4.4
Restructuring expense		-			0.1		-		-		1.1			-			1.2
Net gain on disposition related to Integrys Energy Services' strategy change		-			-		-		-		(0.1	)		-			(0.1	)
Adjusted earnings (loss)	$	58.0		$	84.2	$	35.8	$	20.5	$	-		$	(11.0	)	$	187.5

Integrys Energy Group, Inc.

Non-GAAP Financial Information Reported by Segment

Diluted earnings per share is adjusted by reportable segment for the financial impact of special items on diluted earnings per share for the nine months ended September 30, 2012 and 2011.

September 30, 2012	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
									Core		Other
Diluted EPS	$	0.67		$	1.17		$	0.50	$	0.21	$	0.23		$	(0.09	)	$	2.69
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities		-			-			-		-		(0.36	)		-			(0.36	)
Reversal of tax expense related to health care reform legislation		(0.01	)		(0.06	)		-		-		-			-			(0.07	)
Discontinued operations		-			-			-		-		0.13			(0.02	)		0.11
Diluted EPS – adjusted	$	0.66		$	1.11		$	0.50	$	0.21	$	-		$	(0.11	)	$	2.37

September 30, 2011	Natural Gas Utility			Electric Utility		Electric Transmission Investment		Integrys Energy Services					Holding Company and Other			Integrys Energy Group Consolidated
								Core		Other
Diluted EPS	$	0.74		$	1.05	$	0.45	$	0.27	$	0.08		$	(0.20	)	$	2.39
Special Items (net of taxes)
Net noncash gains related to derivative and inventory accounting activities at Integrys Energy Services		-			-		-		-		(0.14	)		-			(0.14	)
Tax expense (benefit) related to health care reform legislation		-			0.02		-		-		-			-			0.02
Discontinued operations		-			-		-		-		0.03			0.01			0.04
Tax expense (benefit) resulting from Michigan law change		(0.01	)		-		-		-		0.01			0.05			0.05
Restructuring expense		-			-		-		-		0.02			-			0.02
Net gain on disposition related to Integrys energy Services' strategy change		-			-		-		-		-			-			-
Diluted EPS – adjusted	$	0.73		$	1.07	$	0.45	$	0.27	$	-		$	(0.14	)	$	2.38

Non-GAAP Adjusted Earnings Variance Drivers - By Segment
Quarter Ended September 30, 2012
(Millions)
ADJUSTED EARNINGS FOR QUARTER ENDED SEPTEMBER 30, 2011				$	33.2
Variance Driver by Segment	Variance
Natural Gas Utility
Net increase in margins due to rate orders	$	7.1
Net decrease in sales volumes, driven by lower use per residential customer		(2.2	)
Increase in operating expenses driven by an increase in natural gas distribution costs		(1.0	)
Other		0.7
					4.6
Electric Utility
Decrease in maintenance expense due to fewer storms	$	1.4
Tax adjustments required by GAAP to ensure the year-to-date interim effective tax rate reflects the
projected annual effective tax rate		1.1
Increase in margins due to the electric rate increase at Upper Peninsula Power Company		1.0
Reversal of the write-off of Upper Peninsula Power Company's net regulatory asset related to decoupling		0.9
Decrease in wholesale margins driven by lower sales volumes		(1.5	)
Other		0.1
					3.0
Electric Transmission Investment
Increase in earnings from investment					1.4
Integrys Energy Services
Tax rate differences, driven by adjustments required by GAAP to ensure the year-to-date interim
effective tax rate reflects the projected annual effective tax rate	$	2.5
Increase in operating expenses, due in part to an increase in professional fees primarily related to the
expansion  of the residential and small commercial customer segment		(1.9	)
Other		0.1
					0.7
Holding Company and Other					0.2
ADJUSTED EARNINGS FOR QUARTER ENDED SEPTEMBER 30, 2012				$	43.1

Non-GAAP Adjusted Earnings Variance Drivers - By Segment
Nine Months Ended September 30, 2012
(Millions)
ADJUSTED EARNINGS FOR NINE MONTHS ENDED SEPTEMBER 30, 2011				$	187.5
Variance Driver by Segment	Variance
Natural Gas Utility
Decrease in sales volumes, primarily driven by warmer weather, net of decoupling	$	(22.1	)
Increase in operating expenses driven by an increase in natural gas distribution costs		(4.5	)
Net increase in margins due to rate orders		20.2
Other		0.4
					(6.0	)
Electric Utility
Decrease in interest expense, driven by the repayment of long-term debt in 2011	$	3.7
Decrease in operating expenses, driven by fewer planned plant outages		2.7
Increase in margins due to the electric rate increase at Upper Peninsula Power Company		2.2
Decrease in wholesale margins driven by lower sales volumes		(3.2	)
Decrease in margins due to the 2012 Wisconsin Public Service Corporation rate case re-opener		(2.3	)
Other		0.4
					3.5
Electric Transmission Investment
Increase in earnings from investment					4.0
Integrys Energy Services
Decrease in realized retail electric margins, driven by the expiration of several large, lower margin contracts
in 2011, and competitive pressure on per-unit margins.	$	(3.1	)
Decrease in realized energy asset margins, driven by the expiration of a long-term capacity contract
related to the Combined Locks Energy Center in the fourth quarter of 2011		(2.0	)
Tax rate differences, driven by tax adjustments required by GAAP to ensure the year-to-date interim
effective tax rate reflects the projected annual effective tax rate		2.1
Other		(0.3	)
					(3.3	)
Holding Company and Other					2.0
ADJUSTED EARNINGS FOR NINE MONTHS ENDED SEPTEMBER 30, 2012				$	187.7

Integrys Energy Group, Inc.

Diluted Earnings Per Share Guidance Information

2012 Diluted EPS Guidance	Potential 2012
	Low Scenario			High  Scenario
Regulated natural gas utility segment	$	1.21		$	1.27
Regulated electric utility segment		1.32			1.34
Electric transmission investment segment		0.67			0.67
Integrys Energy Services
Core		0.25			0.30
Other – Discontinued Operations		(0.12	)		(0.10	)
Holding company and other segment		(0.14	)		(0.11	)
Diluted EPS	$	3.19		$	3.37
Average Shares of Common Stock – Diluted (in millions)		79.3			79.3

Information on Special Items:

Diluted earnings per share guidance is adjusted for special items and their financial impact on the diluted earnings per share guidance for 2012.

Diluted EPS	$	3.19		$	3.37
Special Items (net of taxes)
Reversal of tax expense at the regulated utility segments related to      health care reform legislation		(0.07	)		(0.07	)
Discontinued operations		0.10			0.08
Diluted EPS – Adjusted	$	3.22		$	3.38
Average Shares of Common Stock – Diluted (in millions)		79.3			79.3

Key Assumptions for 2012:

§   Continued operational improvements

§   Availability of generation units

§   Normal weather conditions for the rest of the year

§   Not estimating the impact of derivative and inventory fair value accounting activities

Integrys Energy Group, Inc.
Supplemental Quarterly Financial Highlights
(millions, except per share amounts)
	2011															2012
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year Ended			1st Qtr			2nd Qtr			3rd Qtr			Year-to-Date
Regulated Natural Gas Utility Segment
Revenues	$	853.4		$	364.0		$	239.3		$	541.3		$	1,998.0		$	665.7		$	253.7		$	220.0		$	1,139.4
year-over-year change		-7.9	%		22.6	%		2.1	%		-9.7	%		-2.9	%		-22.0	%		-30.3	%		-8.1	%		-21.8	%
Purchased natural gas costs		531.1			180.6			99.6			290.1			1,101.4			346.5			92.7			71.9			511.1
Margins	$	322.3		$	183.4		$	139.7		$	251.2		$	896.6		$	319.2		$	161.0		$	148.1		$	628.3
year-over-year change		0.9	%		4.3	%		-3.7	%		-5.2	%		-1.0	%		-1.0	%		-12.2	%		6.0	%		-2.6	%
margins/revenues		37.8	%		50.4	%		58.4	%		46.4	%		44.9	%		47.9	%		63.5	%		67.3	%		55.1	%
Operating and maintenance expense		139.8			130.8			121.1			131.9			523.6			135.3			127.0			119.7			382.0
Depreciation and amortization expense		31.2			31.3			31.7			31.9			126.1			32.4			32.7			33.2			98.3
Taxes other than income taxes		9.4			8.2			8.7			9.3			35.6			9.5			8.6			9.0			27.1
Operating income (loss)		141.9			13.1			(21.8	)		78.1			211.3			142.0			(7.3	)		(13.8	)		120.9
year-over-year change		2.0	%		35.1	%		-24.8	%		-0.1	%		6.7	%		0.1	%		N/M	(1)		-36.7	%		-9.2	%
Net income (loss) attributed to common shareholders	$	77.2		$	1.2		$	(20.0	)	$	44.9		$	103.3		$	78.6		$	(11.2	)	$	(14.0	)	$	53.4
Total throughput in therms		1,693.5			678.6			454.5			1,042.8			3,869.4			1,372.3			601.8			462.3			2,436.4
year-over-year change		7.1	%		27.8	%		0.7	%		-10.8	%		3.6	%		-19.0	%		-11.3	%		1.7	%		-13.8	%
Retail throughput in therms
Residential		782.4			228.6			95.6			434.9			1,541.5			606.4			171.0			87.2			864.6
Commercial and industrial		238.4			67.0			37.1			127.0			469.5			183.4			51.0			36.3			270.7
Other		21.5			12.2			12.0			15.6			61.3			18.7			14.2			23.3			56.2
Total retail throughput in therms		1,042.3			307.8			144.7			577.5			2,072.3			808.5			236.2			146.8			1,191.5
Transport throughput in therms
Residential		114.5			39.5			16.6			66.8			237.4			87.1			31.3			15.8			134.2
Commercial and industrial		536.7			331.3			293.2			398.5			1,559.7			476.7			334.3			299.7			1,110.7
Total transport throughput in therms		651.2			370.8			309.8			465.3			1,797.1			563.8			365.6			315.5			1,244.9
Regulated Electric Utility Segment
Revenues	$	322.6		$	315.4		$	367.5		$	301.8		$	1,307.3		$	307.0		$	311.8		$	366.8		$	985.6
year-over-year change		-3.7	%		-1.7	%		-1.9	%		-2.2	%		-2.4	%		-4.8	%		-1.1	%		-0.2	%		-2.0	%
Fuel and purchased power costs		137.8			133.6			157.5			117.4			546.3			127.5			135.5			160.9			423.9
Margins	$	184.8		$	181.8		$	210.0		$	184.4		$	761.0		$	179.5		$	176.3		$	205.9		$	561.7
year-over-year change		-5.0	%		-1.4	%		-4.6	%		4.7	%		-1.8	%		-2.9	%		-3.0	%		-2.0	%		-2.6	%
margins/revenues		57.3	%		57.6	%		57.1	%		61.1	%		58.2	%		58.5	%		56.5	%		56.1	%		57.0	%
Operating and maintenance expense		101.0			106.5			102.7			111.3			421.5			100.3			99.8			96.6			296.7
Restructuring expense		0.2			-			-			-			0.2			-			-			-			-
Depreciation and amortization expense		22.1			22.0			22.0			22.4			88.5			22.0			22.1			22.3			66.4
Taxes other than income taxes		12.3			12.0			11.9			11.4			47.6			12.9			11.7			11.7			36.3
Operating income		49.2			41.3			73.4			39.3			203.2			44.3			42.7			75.3			162.3
year-over-year change		-11.2	%		-19.2	%		-9.4	%		29.7	%		-6.7	%		-10.0	%		3.4	%		2.6	%		-1.0	%
Net income attributed to common shareholders	$	25.1		$	18.2		$	39.5		$	17.7		$	100.5		$	24.3		$	20.9		$	47.2		$	92.4
Sales in kilowatt-hours		3,940.7			3,922.4			4,424.1			3,664.5			15,951.7			3,897.4			4,059.3			4,768.6			12,725.3
year-over-year change		-2.5	%		-3.4	%		-1.6	%		-8.2	%		-3.8	%		-1.1	%		3.5	%		7.8	%		3.6	%
Residential		814.3			685.2			882.4			753.7			3,135.6			775.2			687.4			897.2			2,359.8
Commercial and industrial		2,053.2			2,093.4			2,275.9			2,098.4			8,520.9			2,087.8			2,137.2			2,275.4			6,500.4
Wholesale		1,062.2			1,136.0			1,257.4			801.2			4,256.8			1,023.5			1,227.1			1,587.7			3,838.3
Other		11.0			7.8			8.4			11.2			38.4			10.9			7.6			8.3			26.8
Electric Transmission Investment Segment
American Transmission Company (ATC)
Equity contributions to ATC	$	3.4		$	2.5		$	2.6		$	-		$	8.5		$	3.4		$	5.1		$	8.5		$	17.0
After-tax equity earnings recognized     from ATC investment		11.4			12.0			12.2			12.2			47.8			13.3			13.1			13.4			39.8
Notes:
(1) Not meaningful

  Integrys Energy Group, Inc. Financial Supplement

Page 1

Integrys Energy Group, Inc.
Supplemental Quarterly Financial Highlights
(millions, except Integrys Energy Services' natural gas sales volumes)
	2011															2012
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year Ended			1st Qtr			2nd Qtr			3rd Qtr			Year-to-Date
Nonregulated Segment - Integrys Energy Services
Nonregulated revenues	$	451.2		$	334.1		$	333.1		$	262.6		$	1,381.0		$	270.0		$	269.1		$	335.5		$	874.6
Nonregulated cost of fuel, natural gas, and purchased power		400.8			288.7			289.7			288.1			1,267.3			270.4			189.0			258.7			718.1
Margins	$	50.4		$	45.4		$	43.4		$	(25.5	)	$	113.7		$	(0.4	)	$	80.1		$	76.8		$	156.5
Margin Detail:
- Electric and other margins		34.7			36.7			41.5			(23.7	)		89.2			(23.7	)		67.5			72.5			116.3
- Natural gas margins		15.7			8.7			1.9			(1.8	)		24.5			23.3			12.6			4.3			40.2
Margins		50.4			45.4			43.4			(25.5	)		113.7			(0.4	)		80.1			76.8			156.5
Retail Electric Realized Unit Margins	$	6.88		$	8.01		$	7.79		$	9.08		$	7.93		$	5.79		$	7.23		$	6.78		$	6.63
Retail Natural Gas Realized Unit Margins	$	0.48		$	0.29		$	0.23		$	0.42		$	0.39		$	0.54		$	0.25		$	0.19		$	0.38
Operating and maintenance expense		29.5			25.4			22.7			22.2			99.8			27.7			24.9			25.8			78.4
Restructuring expense		1.0			0.8			-			-			1.8			-			-			-			-
Impairment losses on property, plant, and equipment		-			-			-			4.6			4.6			-			-			-			-
Net gain on Integrys Energy Services dispositions related to strategy change		(0.1	)		(0.1	)		-			(0.1	)		(0.3	)		-			-			-			-
Depreciation and amortization expense		2.8			2.6			2.6			2.5			10.5			2.4			2.4			2.7			7.5
Taxes other than income taxes		1.6			1.8			0.7			1.8			5.9			1.4			0.3			0.6			2.3
Operating income (loss)		15.6			14.9			17.4			(56.5	)		(8.6	)		(31.9	)		52.5			47.7			68.3
Discontinued operations, net of tax		0.1			(2.3	)		0.2			0.1			(1.9	)		(0.8	)		(1.8	)		(7.9	)		(10.5	)
Net income (loss) attributed to common shareholders	$	10.8		$	6.0		$	10.9		$	(33.8	)	$	(6.1	)	$	(20.1	)	$	30.9		$	24.2		$	35.0
Physically settled volumes
- Retail electric sales volumes in kilowatt-hours		2,952.5			2,997.0			3,504.6			2,962.4			12,416.5			2,918.9			3,082.7			4,010.6			10,012.2
- Wholesale assets and distributed solar electric sales volumes in kilowatt-hours (1)		19.1			26.1			42.5			21.7			109.4			29.1			25.0			26.3			80.4
- Retail natural gas sales volumes in billion cubic feet		48.5			23.9			18.3			34.8			125.5			43.8			23.3			22.3			89.4
Nonregulated Segment - Holding Company and Other
Net income (loss) attributed to common shareholders	$	(1.8	)	$	(8.3	)	$	(5.7	)	$	(2.3	)	$	(18.1	)	$	2.8		$	(4.9	)	$	(5.1	)	$	(7.2	)
Notes:
(1) The volumes related to the remaining wholesale electric contracts are not significant.

  Integrys Energy Group, Inc. Financial Supplement

Page 2

Integrys Energy Group, Inc.
Supplemental Quarterly Financial Highlights
(millions, except heating and cooling degree days information and Integrys Energy Services' sales volumes)
	2011															2012
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year Ended			1st Qtr			2nd Qtr			3rd Qtr			Year-to-Date
Other information:
Heating and Cooling Degree Days - WPS
Heating Degree Days - Actual		3,892			1,084			246			2,302			7,524			2,864			748			252			3,864
period-over-period change		13.0	%		45.7	%		8.4	%		-13.6	%		6.3	%		-26.4	%		-31.0	%		2.4	%		-26.0	%
compared with normal		6.3	%		10.8	%		10.8	%		-13.3	%		0.1	%		-22.7	%		-24.7	%		14.5	%		-21.4	%
Heating Degree Days - Normal		3,660			978			222			2,654			7,514			3,705			994			220			4,919
Cooling Degree Days - Actual		-			102			494			7			603			11			264			514			789
period-over-period change		N/M	(1)		-26.1	%		3.3	%		N/M	(1)		-2.1	%		N/M	(1)		158.8	%		4.0	%		32.4	%
compared with normal		N/M	(1)		-26.1	%		46.6	%		40.0	%		25.6	%		N/M	(1)		107.9	%		49.9	%		67.9	%
Cooling Degree Days - Normal		-			138			337			5			480			-			127			343			470
Heating and Cooling Degree Days - UPPCO
Heating Degree Days - Actual		4,108			1,487			346			2,735			8,676			3,282			1,182			434			4,898
period-over-period change		14.4	%		34.0	%		-19.5	%		-4.7	%		8.4	%		-20.1	%		-20.5	%		25.4	%		-17.6	%
compared with normal		3.3	%		6.8	%		-16.6	%		-6.1	%		-0.2	%		-18.5	%		-16.4	%		5.3	%		-16.3	%
Heating Degree Days - Normal		3,977			1,392			415			2,913			8,697			4,029			1,414			412			5,855
Cooling Degree Days - Actual		-			31			270			4			305			-			99			236			335
period-over-period change		N/M	(1)		-45.6	%		10.7	%		N/M	(1)		1.3	%		N/M	(1)		219.4	%		-12.6	%		11.3	%
compared with normal		N/M	(1)		-40.4	%		66.7	%		300.0	%		41.9	%		N/M	(1)		94.1	%		42.2	%		54.4	%
Cooling Degree Days - Normal		-			52			162			1			215			-			51			166			217
Heating Degree Days - MGU
Heating Degree Days - Actual		3,316			791			161			1,916			6,184			2,472			659			178			3,309
period-over-period change		9.1	%		54.2	%		34.2	%		-14.4	%		4.6	%		-25.5	%		-16.7	%		10.6	%		-22.5	%
compared with normal		5.2	%		0.0	%		12.6	%		-14.4	%		-2.2	%		-20.8	%		-16.1	%		35.9	%		-18.1	%
Heating Degree Days - Normal		3,151			791			143			2,238			6,323			3,122			785			131			4,038
Heating Degree Days - MERC
Heating Degree Days - Actual (northern service territory)		4,660			1,308			394			2,948			9,310			3,608			1,086			427			5,121
period-over-period change		11.4	%		24.9	%		-13.4	%		-10.7	%		3.6	%		-22.6	%		-17.0	%		8.4	%		-19.5	%
compared with normal		5.1	%		3.6	%		-7.7	%		-12.8	%		-2.0	%		-19.6	%		-15.4	%		0.5	%		-17.4	%
Heating Degree Days - Normal (northern service territory)		4,433			1,262			427			3,382			9,504			4,490			1,283			425			6,198
Heating Degree Days - Actual (southern service territory)		3,920			869			204			2,306			7,299			2,851			596			175			3,622
period-over-period change		6.5	%		48.3	%		11.5	%		-15.8	%		1.5	%		-27.3	%		-31.4	%		-14.2	%		-27.5	%
compared with normal		6.1	%		3.5	%		-1.0	%		-16.1	%		-2.5	%		-23.8	%		-29.7	%		-13.4	%		-24.4	%
Heating Degree Days - Normal (southern service territory)		3,694			840			206			2,747			7,487			3,742			848			202			4,792
Heating Degree Days - PGL and NSG
Heating Degree Days - Actual		3,340			853			153			1,838			6,184			2,379			530			111			3,020
period-over-period change		6.9	%		61.9	%		115.5	%		-19.7	%		2.9	%		-28.8	%		-37.9	%		-27.5	%		-30.5	%
compared with normal		7.8	%		21.3	%		82.1	%		-16.7	%		1.5	%		-24.3	%		-26.7	%		27.6	%		-23.6	%
Heating Degree Days - Normal		3,099			703			84			2,207			6,093			3,144			723			87			3,954
Capital Expenditures
Regulated utility expenditures		47.3			58.0			80.4			97.7			283.4			109.7			111.3			171.1			392.1
Integrys Energy Services		1.2			3.3			5.8			6.5			16.8			8.2			7.5			11.3			27.0
Other		2.7			2.0			2.5			2.8			10.0			5.1			7.4			6.2			18.7
Total Capital Expenditures	$	51.2		$	63.3		$	88.7		$	107.0		$	310.2		$	123.0		$	126.2		$	188.6		$	437.8

Nonregulated Segment - Integrys Energy Services	Forward Contracted Volumes at 09/30/11						Forward Contracted Volumes at 09/30/12
	10/01/11 - 09/30/12		10/01/12 - 09/30/13		Post 09/30/13		10/01/12 - 09/30/13		10/01/13 - 09/30/14		Post 09/30/14
Retail natural gas sales volumes - billion cubic feet		75.1		16.0		5.5		86.1		23.1		7.0
Retail electric sales volumes - million kilowatt-hours		8,714		4,028		1,696		11,072		4,937		2,186
	10/01/11 - 12/31/11		1/01/12 - 12/31/12		Post 01/01/13		10/01/12 - 12/31/12		1/01/13 - 12/31/13		Post 01/01/14
Retail natural gas sales volumes - billion cubic feet		26.4		55.4		14.8		30.8		64.2		21.2
Retail electric sales volumes - million kilowatt-hours		2,789		7,388		4,261		3,149		9,775		5,271

Nonregulated Segment - Integrys Energy Services	Wholesale Counterparty Credit Exposure at 09/30/11									Wholesale Counterparty Credit Exposure at 09/30/12
	Exposure									Exposure
Counterparty Rating	Total		< 1 Year		1 - 3 Years		> 3 Years			Total		< 1 Year		1 - 3 Years		> 3 Years
Investment grade - regulated utilities	$	8.8	$	6.4	$	2.4	$	-		$	4.9	$	4.9	$	-	$	-
Investment grade - other		13.4		12.4		1.0		-			1.6		0.5		1.1		-
Non-investment grade - regulated utilities		-		-		-		-			-		-		-		-
Non-investment grade - other		3.3		3.0		0.4		(0.1	)		1.3		0.8		0.1		0.4
Non-rated - regulated utilities		1.4		1.3		0.1		-			0.1		0.1		-		-
Non-rated - other		0.4		0.4		-		-			0.2		0.1		0.1
Total Exposure	$	27.3	$	23.5	$	3.9	$	(0.1	)	$	8.1	$	6.4	$	1.3	$	0.4

	The investment and non-investment grade categories are determined by publicly available credit ratings of the counterparty or the rating of any guarantor, whichever is higher.  Investment grade counterparties are those with a senior unsecured Moody's rating of Baa3 or above or a Standard & Poor's rating of BBB- or above.  Exposure before collateral considers netting of accounts receivable and accounts payable where netting agreements are in place as well as net mark to market exposure.  Credit collateral includes cash and letters of credit from the counterparties.  Net exposure does not include those counterparties to which Integrys Energy Services Inc. has exposure.
Notes:
(1) Not meaningful

  Integrys Energy Group, Inc. Financial Supplement

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