Integrys Energy : Wisconsin Public Service Files with State Utility Regulators to Add Electric Generator to Fox Energy Center Site

For Release: 01/21/2015

WPS forecasts a need for the additional power by 2019 due to modest growth in the demand for electricity as the economy recovers and the expected closing of older, smaller and less efficient generating units in Green Bay, Wausau, and Sheboygan. Adding a generating unit at the Fox Energy Center will strengthen the electric grid in northeastern Wisconsin and help ensure reliable electricity.
"Adding a natural gas combined cycle generating unit to our existing Fox Energy Center is the best value for customers in the long term," said WPS Vice President of Energy Supply Paul Spicer. "Owning the generation instead of buying electric capacity, even if available, provides much greater opportunity to control costs and reduce risk."
Spicer added that the most recent PSCW Strategic Energy Assessment indicated the state would not have a surplus of electric capacity by mid-2018, primarily due to the planned retirement of older coal-fired plants in the state.
The economies of scale at the site are also significant, said Spicer. "We are able to take advantage of existing cooling water and intake structures, as well as the electric transmission facilities and natural gas pipeline already in place at the site."
Spicer noted that combined cycle natural gas-fired generation protects customers in the event of more stringent environmental regulations. The plant is also able to ramp up quickly to serve as a base-load plant to provide for the load profile of the industrial customer base of WPS.
Assuming PSCW approval in 2015, construction is scheduled to begin in 2016. At the peak of construction, about 400 union workers will be needed. The new unit will begin operating in 2019 and require about 10 new full-time union positions.
The addition of a generating unit at Fox Energy Center will increase shared revenue for the local communities. Currently revenue is shared by the Village of Wrightstown, Town of Kaukauna (in an agreement with Wrightstown), and Outagamie County.
The Commission will thoroughly review the application and likely hold public and technical hearings. A ruling on the application, which the PSCW could approve, deny, or approve it with conditions, is expected in the third or fourth quarter of 2015.

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.

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