| [X] | ANNUAL REPORT      PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

| CommissionFile Number | Registrant;      State of Incorporation;Address; and Telephone    Number                                                                                        | IRS      EmployerIdentification No. |
|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|                  |                                                                                                                                                            |                                |
| 1-3016                | WISCONSIN      PUBLIC SERVICE CORPORATION(A Wisconsin      Corporation)700 North      Adams StreetP. O. Box      19001Green Bay, WI      54307-9001800-450-7260 | 39-0715160                          |

| Preferred      Stock, Cumulative, $100 par value |
|--------------------------------------------------|
|                                             |   |   |   |   |
|                                             | 5.00%      Series5.04%      Series | 5.08%      Series6.76%      Series | 6.88%      Series |   |

| Yes  [  ]                           No  [X] |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Yes  [  ]                           No  [X] |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Yes  [X]                           No  [  ] |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Yes      [  ]   No  [  ] |
|-------------------------------------------------------------|

| Large      accelerated filer [  ] | Accelerated      filer [  ]         |
|---------------------------------------------|-----------------------------------------------|
| Non-accelerated      filer [X]              | Smaller      reporting company [  ] |

| Yes  [  ]     No  [X] |
|------------------------------------------------------------------------------|

| State the      aggregate market value of the voting andnon-voting common equity held by non-affiliates of      the Registrant. |
|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                           |
| None.                                                                                                                          |

| Number of      shares outstanding of each classof common stock, as of February 24,      2010                                                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                          |   |
| Common Stock,      $4 par value, 23,896,962 shares.  Integrys Energy Group, Inc. is      the sole holder of Wisconsin Public Service Corporation Common      Stock. |

----

|                       |                                                     |
|----------------------------|----------------------------------------------------------|
|                       |                                                     |   | Page |
|                       |                                                     |
| Forward-Looking Statements | 1                                                        |
|                       |                                                     |
| PART      I                | 2                                                        |
|                       |                                                     |   |   |
| ITEM 1.                    | BUSINESS                                                 | 2 |
|                       |                                                     |   |
|                       | A.                                                       | GENERAL | 2 |
|                       |                                                     |   |   |   |
|                       | B.                                                       | REGULATED      ELECTRIC UTILITY OPERATIONS | 2 |
|                       |                                                     |   |   |   |
|                       | C.                                                       | REGULATED      NATURAL GAS UTILITY OPERATIONS | 5 |
|                       |                                                     |   |   |   |
|                       | D.                                                       | ENVIRONMENTAL      MATTERS | 7 |
|                       |                                                     |   |   |   |
|                       | E.                                                       | CAPITAL      REQUIREMENTS | 7 |
|                       |                                                     |   |   |   |
|                       | F.                                                       | EMPLOYEES | 7 |
|                       |                                                     |   |   |
|                       | G.                                                       | AVAILABLE      INFORMATION | 8 |
|                       |                                                     |   |   |
| ITEM 1A.                   | RISK      FACTORS                                        | 9 |
|                       |                                                     |   |   |
| ITEM 1B                    | UNRESOLVED      STAFF COMMENTS                           | 12 |
|                       |                                                     |   |   |
| ITEM 2.                    | PROPERTIES                                               | 13 |
|                       |                                                     |   |   |
| ITEM 3.                    | LEGAL      PROCEEDINGS                                   | 15 |
|                       |                                                     |   |   |
| ITEM 4.                    | SUBMISSION OF      MATTERS TO A VOTE OF SECURITY HOLDERS | 15 |

| PART      II | 15                                                                                                              |
|--------------|-----------------------------------------------------------------------------------------------------------------|
|         |                                                                                                            |   |   |   |
| ITEM 5.      | MARKET FOR      WPS'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF      EQUITY SECURITIES | 15 |
|         |                                                                                                            |   |
| ITEM 6.      | SELECTED      FINANCIAL DATA                                                                                    | 16 |
|         |                                                                                                            |   |   |
| ITEM 7.      | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS                 | 17 |
|         |                                                                                                            |   |   |
| ITEM 7A.     | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                 | 39 |
|         |                                                                                                            |   |   |
| ITEM 8.      | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA                                                                | 40 |
|         |                                                                                                            |   |

|        | A. | Management      Report on Internal Control over Financial Reporting | 40 |
|--------|----|---------------------------------------------------------------------|----|
|   | B. | Report of      Independent Registered Public Accounting Firm        | 41 |
|   | C. | Consolidated      Statements of Income                              | 43 |
|   | D. | Consolidated      Balance Sheets                                    | 44 |

----

|          | E.                                                                                                       | Consolidated      Statements of Capitalization                                                       | 45                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------|----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | F.                                                                                                       | Consolidated      Statements of Common Shareholder's    Equity                                       | 46                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          | G.                                                                                                       | Consolidated      Statements of Cash Flows                                                           | 47                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          | H.                                                                                                       | Notes to Consolidated Financial      Statements                                                      | 48                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |                                                                                                     | Note      1                                                                                          | Summary of      Significant Accounting      Policies                                                                                   | 48 |   |
|          |                                                                                                     | Note      2                                                                                          | Risk      Management      Activities                                                                                                   | 53 |   |
|          |                                                                                                     | Note      3                                                                                          | Restructuring      Expense                                                                                                             | 54 |   |
|          |                                                                                                     | Note      4                                                                                          | Property,      Plant, and      Equipment                                                                                               | 54 |   |
|          |                                                                                                     | Note      5                                                                                          | Jointly Owned      Utility      Facilities                                                                                             | 54 |   |
|          |                                                                                                     | Note      6                                                                                          | Regulatory      Assets and      Liabilities                                                                                            | 55 |   |
|          |                                                                                                     | Note      7                                                                                          | Leases                                                                                                                                 | 56 |   |
|          |                                                                                                     | Note      8                                                                                          | Short-Term      Debt and Lines of      Credit                                                                                          | 56 |   |
|          |                                                                                                     | Note      9                                                                                          | Long-Term      Debt                                                                                                                    | 57 |   |
|          |                                                                                                     | Note      10                                                                                         | Asset      Retirement      Obligations                                                                                                 | 58 |   |
|          |                                                                                                     | Note      11                                                                                         | Income      Taxes                                                                                                                      | 59 |   |
|          |                                                                                                     | Note      12                                                                                         | Commitments      and      Contingencies                                                                                                | 60 |   |
|          |                                                                                                     | Note      13                                                                                         | Guarantees                                                                                                                             | 66 |   |
|          |                                                                                                     | Note      14                                                                                         | Employee      Benefit      Plans                                                                                                       | 66 |   |
|          |                                                                                                     | Note      15                                                                                         | Preferred      Stock                                                                                                                   | 72 |   |
|          |                                                                                                     | Note      16                                                                                         | Common      Equity                                                                                                                     | 72 |   |
|          |                                                                                                     | Note      17                                                                                         | Stock-Based      Compensation                                                                                                          | 73 |   |
|          |                                                                                                     | Note      18                                                                                         | Fair      Value                                                                                                                        | 73 |   |
|          |                                                                                                     | Note      19                                                                                         | Miscellaneous      Income                                                                                                              | 75 |   |
|          |                                                                                                     | Note      20                                                                                         | Regulatory      Environment                                                                                                            | 75 |   |
|          |                                                                                                     | Note      21                                                                                         | Segments of      Business                                                                                                              | 77 |   |
|          |                                                                                                     | Note      22                                                                                         | Related Party      Transactions                                                                                                        | 78 |   |
|          |                                                                                                     | Note      23                                                                                         | Quarterly      Financial Information      (Unaudited)                                                                                  | 79 |   |
|          | I.                                                                                                       | Report of      Independent Registered Public Accounting Firm on  Financial      Statements | 80                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |                                                                                                     |                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ITEM 9.       | CHANGES IN      AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE           | 81                                                                                                   |
|          |                                                                                                     |                                                                                                 |
| ITEM 9A.      | CONTROLS AND      PROCEDURES                                                                             | 81                                                                                                   |
|          |                                                                                                     |                                                                                                 |
| ITEM 9B.      | OTHER      INFORMATION                                                                                   | 81                                                                                                   |
|          |                                                                                                     |                                                                                                 |
| PART      III | 82                                                                                                       |
|          |                                                                                                     |                                                                                                 |
| ITEM 10.      | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                              | 82                                                                                                   |
|          |                                                                                                     |                                                                                                 |
| ITEM 11.      | EXECUTIVE      COMPENSATION                                                                              | 83                                                                                                   |
|          |                                                                                                     |                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ITEM 12.      | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS | 94                                                                                                   |
|          |                                                                                                     |                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ITEM 13.      | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE                      | 95                                                                                                   |
|          |                                                                                                     |                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ITEM 14.      | PRINCIPAL      ACCOUNTING FEES AND SERVICES                                                              | 96                                                                                                   |
|          |                                                                                                     |                                                                                                 |
|          |                                                                                                     |

----

| PART IV                                              | 97                                              |
|------------------------------------------------------|-------------------------------------------------|
|                                                 |                                            |   |
| ITEM 15.                                             | EXHIBITS AND      FINANCIAL STATEMENT SCHEDULES | 97 |
|                                                 |                                            |
| SIGNATURES                                           | 98                                              |
|                                                 |                                            |
| SCHEDULE II - VALUATION AND QUALIFYING      ACCOUNTS | 99                                              |
|                                                 |                                            |
| EXHIBIT INDEX                                        | 100                                             |
|                                                 |

----

| Acronyms      Used in this Annual Report on Form 10-K |
|-------------------------------------------------------|
|                                                  |   |
| AFUDC                                                 | Allowance For      Funds Used During Construction |
| ASC                                                   | Accounting      Standards Codification |
| ATC                                                   | American      Transmission Company LLC |
| EPA                                                   | United States      Environmental Protection Agency |
| ESOP                                                  | Employee      Stock Ownership Plan |
| FASB                                                  | Financial      Accounting Standards Board |
| FERC                                                  | Federal      Energy Regulatory Commission |
| GAAP                                                  | United States      Generally Accepted Accounting Principles |
| IBS                                                   | Integrys      Business Support, LLC |
| IRS                                                   | United States      Internal Revenue Service |
| MERC                                                  | Minnesota      Energy Resources Corporation |
| MGU                                                   | Michigan Gas      Utilities Corporation |
| MISO                                                  | Midwest      Independent Transmission System Operator, Inc. |
| MPSC                                                  | Michigan      Public Service Commission |
| N/A                                                   | Not      Applicable |
| NSG                                                   | North Shore      Gas Company |
| NYMEX                                                 | New York      Mercantile Exchange |
| PEC                                                   | Peoples      Energy Corporation |
| PGL                                                   | The Peoples      Gas Light and Coke Company |
| PSCW                                                  | Public      Service Commission of Wisconsin |
| SEC                                                   | United States      Securities and Exchange Commission |
| SFAS                                                  | Statement of      Financial Accounting Standards |
| WDNR                                                  | Wisconsin      Department of Natural Resources |
| WPS                                                   | Wisconsin      Public Service Corporation |
| WRPC                                                  | Wisconsin      River Power Company |

----

Forward

| ● | Resolution of      pending and future rate cases and negotiations (including the recovery of      deferred costs) and other regulatory decisions impacting    WPS;                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | The impact of      recent and future federal and state regulatory changes, including      legislative and regulatory initiatives regarding deregulation and      restructuring of the electric and natural gas utility industries, changes      in environmental and other regulations, including but not limited to,      greenhouse gas emissions, energy efficiency mandates, renewable energy      standards, and reliability standards, and changes in tax and other laws      and regulations to which WPS and its subsidiary are    subject; |
| ● | Current and      future litigation and regulatory investigations, enforcement actions or      inquiries, including but not limited to, manufactured gas plant site      cleanup, third-party intervention in permitting and licensing projects,      and compliance with Clean Air Act requirements at generation      plants;                                                                                                                                                                                                                      |
| ● | The impacts      of changing financial market conditions, credit ratings, and interest      rates on the liquidity and financing efforts of WPS and its      subsidiary;                                                                                                                                                                                                                                                                                                                                                                            |
| ● | The risks      associated with changing commodity prices (particularly natural gas and      electricity) and the available sources of fuel and purchased power,      including their impact on margins;                                                                                                                                                                                                                                                                                                                                             |
| ● | Resolution of      audits or other tax disputes with the IRS, Wisconsin Department of      Revenue, Michigan Department of Treasury, or other revenue      agencies;                                                                                                                                                                                                                                                                                                                                                                                |
| ● | The effects,      extent, and timing of additional competition or regulation in the markets      in which WPS and its subsidiary operate;                                                                                                                                                                                                                                                                                                                                                                                                           |
| ● | Investment      performance of employee benefit plan assets and the related impact on      future funding requirements;                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ● | Changes in      technology, particularly with respect to new, developing, or alternative      sources of generation;                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ● | Effects of      and changes in political and legal developments, as well as economic      conditions and the related impact on customer demand;                                                                                                                                                                                                                                                                                                                                                                                                     |
| ● | Potential      business strategies, including acquisitions and construction or      disposition of assets or businesses, which cannot be assured to be      completed timely or within budgets;                                                                                                                                                                                                                                                                                                                                                     |
| ● | The direct or      indirect effects of terrorist incidents, natural disasters, or responses      to such events;                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ● | The      effectiveness of risk management strategies, the use of financial and      derivative instruments, and the ability to recover costs from customers in      rates associated with the use of those strategies and financial      instruments;                                                                                                                                                                                                                                                                                               |
| ● | The risk of      financial loss, including increases in bad debt expense, associated with      the inability of WPS's and its subsidiary's counterparties, affiliates,      and customers to meet their obligations;                                                                                                                                                                                                                                                                                                                                |
| ● | Customer      usage, weather and other natural phenomena, in particular the effect of      weather on natural gas and electricity sales after certain limits have      been exceeded under the decoupling mechanisms at WPS;                                                                                                                                                                                                                                                                                                                        |
| ● | Contributions      to earnings by non-consolidated equity method and other investments, which      may vary from projections;                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ● | The effect of      accounting pronouncements issued periodically by standard-setting bodies;      and                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| ● | Other factors      discussed elsewhere herein and in other reports filed by WPS and/or      Integrys Energy Group from time to time with the  SEC.                                                                                                                                                                                                                                                                                                                                                                                                  |

----

ITEM 1

----

| (Millions)                                                                                                  |   |   |     |
|-------------------------------------------------------------------------------------------------------------|--------|--------|----------|
| Energy      Source (kilowatt-hours)                                                                         |   | 2009   |     |   | 2008 |   |
| Company-owned      generation units                                                                         |   |   |     |   |   |   |
|    Coal                                                                                      |   |   | 8,974.3  |   |   |   | 9,570.9 |   |
|    Natural      gas, fuel oil, and tire derived                                              |   |   | 63.5     |   |   |   | 196.9 |   |
|    Hydroelectric                                                                             |   |   | 161.1    |   |   |   | 196.6 |   |
|    Wind                                                                                      |   |   | 46.4     |   |   |   | 17.8 |   |
|      Total      company-owned generation units                                     |   |   | 9,245.3  |   |   |   | 9,982.2 |   |
| Purchased      power contracts                                                                              |   |   |     |   |   |   |   |   |
|    Nuclear      (Kewaunee Power Station)                                                     |   |   | 2,663.9  |   |   |   | 2,656.8 |   |
|    Natural      gas (Fox Energy Center, LLC and Combined Locks Energy Center,      LLC) |   |   | 673.7    |   |   |   | 699.5 |   |
|    Hydroelectric                                                                             |   |   | 569.5    |   |   |   | 369.4 |   |
|    Wind                                                                                      |   |   | 136.9    |   |   |   | 109.0 |   |
|    Other                                                                                     |   |   | 571.1    |   |   |   | 167.8 |   |
|      Total      purchased power contracts                                          |   |   | 4,615.1  |   |   |   | 4,002.5 |   |
| Purchased      power from MISO                                                                              |   |   | 1,740.5  |   |   |   | 1,871.7 |   |
| Total      purchased power                                                                                  |   |   | 6,355.6  |   |   |   | 5,874.2 |   |
| Opportunity      sales                                                                                      |   |   |     |   |   |   |   |   |
|    Sales      to MISO                                                                        |   |   | (421.7   | ) |   |   | (478.6 | ) |
|    Net      sales to other                                                                   |   |   | (373.6   | ) |   |   | (276.8 | ) |
| Total      opportunity sales                                                                                |   |   | (795.3   | ) |   |   | (755.4 | ) |
| Total WPS      electric utility supply                                                                      |   |   | 14,805.6 |   |   |   | 15,101.0 |   |

| Fuel      Type                |   | 2009   |   |   | 2008   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
|         Coal        |   | $      | 1.94   |   |   | $      | 1.78 |   |
|         Natural gas |   |   | 6.73   |   |   |   | 9.74 |   |
|         Fuel oil    |   |   | 28.88  |   |   |   | 15.21 |   |

----

----

| (MDth)                                                                                                                                          |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Natural gas      purchases                                                                                                                      |   |   | 40,425 |   |   |   | 45,315 |   |   |   | 40,544 |   |
| Customer-owned      natural gas received                                                                                                        |   |   | 33,849 |   |   |   | 35,428 |   |   |   | 34,406 |   |
| Underground      storage, net                                                                                                                   |   |   | (149   | )      |   |   | (157   | )      |   |   | 3,543 |   |
| Contracted      pipeline and storage compressor fuel, franchise     requirements,      and unaccounted-for natural gas |   |   | (351   | )      |   |   | 360    |   |   |   | 303 |   |
| Total                                                                                                                                           |   |   | 73,774 |   |   |   | 80,946 |   |   |   | 78,796 |   |

----

----

----

| · | Annual Report      on Form 10-K;                 |
|--------|-------------------------------------------------------|
| · | Quarterly      Reports on Form 10-Q;                  |
| · | Registration      statements, including prospectuses; |
| · | Current      Reports on Form 8-K; and                 |
| · | Any      amendments to these documents.               |

----

ITEM 1A

----

----

| · | Fluctuations      in economic activity and growth in WPS's regulated service areas;      and |
|--------|----------------------------------------------------------------------------------------------|
| · | Weather      conditions, seasonality, and temperature  extremes.                             |

| · | Require the      payment of higher interest rates in future financings and possibly reduce      the potential pool of creditors; |
|--------|----------------------------------------------------------------------------------------------------------------------------------|
| · | Increase      borrowing costs under its existing credit facility; and                                                            |
| · | Limit access      to the commercial paper market.                                                                                |
|   |                                                                                                                             |

----

ITEM 1B

----

ITEM 2

| Type                                     | Name                             | Location                 |    Fuel   |   | RatedCapacity(MW)      (1) |    |   |   |   |
|------------------------------------------|----------------------------------|--------------------------|--------------------------|--------|----------------------------|---------|--------|--------|--------|
|                                     |                             |                     |                     |   |                       |    |   |   |   |
| Steam                                    | Columbia      Units 1 and 2 | Portage,      WI         | Coal                     |   |                       | 354.5   |   |   |   | (2 | ) |
|                                     | Edgewater      Unit 4       | Sheboygan,      WI       | Coal                     |   |                       | 92.6    |   |   |   | (2 | ) |
|                                     | Pulliam (4      units)           | Green Bay,      WI       | Coal                     |   |                       | 320.3   |   |   |   |   |   |
|                                     | Weston Units      1, 2, and 3    | Marathon      County, WI | Coal                     |   |                       | 471.1   |   |   |   |   |   |
|                                     | Weston Unit      4               | Marathon      County, WI | Coal                     |   |                       | 373.4   |   |   |   | (2 | ) |
| Total      Steam                         |                             |                     |                     |   |                       | 1,611.9 |   |   |   |   |   |
|                                     |                             |                     |                     |   |                       |    |   |   |   |   |   |
| Combustion                               | De Pere Energy      Center       | De Pere,      WI         | Natural      Gas         |   |                       | 166.6   |   |   |   |   |   |
|   Turbine      and             | Eagle      River                 | Eagle River,      WI     | Distillate      Fuel Oil |   |                       | 4.2     |   |   |   |   |   |
|   Diesel                       | Juneau      #31                  | Adams County,      WI    | Distillate      Fuel Oil |   |                       | 7.1     |   |   |   | (2 | ) |
|                                     | Oneida      Casino               | Green Bay,      WI       | Distillate      Fuel Oil |   |                       | 3.5     |   |   |   |   |   |
|                                     | Pulliam      #31                 | Green Bay,      WI       | Natural      Gas         |   |                       | 84.7    |   |   |   |   |   |
|                                     | West Marinette      #31          | Marinette,      WI       | Natural      Gas         |   |                       | 38.3    |   |   |   |   |   |
|                                     | West Marinette      #32          | Marinette,      WI       | Natural      Gas         |   |                       | 35.4    |   |   |   |   |   |
|                                     | West Marinette      #33          | Marinette,      WI       | Natural      Gas         |   |                       | 51.6    |   |   |   | (2 | ) |
|                                     | Weston      #31                  | Marathon      County, WI | Natural      Gas         |   |                       | 15.3    |   |   |   |   |   |
|                                     | Weston      #32                  | Marathon      County, WI | Natural      Gas         |   |                       | 48.4    |   |   |   |   |   |
| Total      Combustion Turbine and Diesel |                             |                     |                     |   | 455.1                      |    |   |   |   |   |
|                                     |                             |                     |                     |   |                       |    |   |   |   |   |   |
| Hydroelectric                            | Various                          | Wisconsin                | Hydro                    |   |                       | 67.9    |   |   |   | (3 | ) |
|                                     |                             |                     |                     |   |                       |    |   |   |   |   |   |
| Wind                                     | Kewaunee      County             | Wisconsin                | Wind                     |   |                       | 1.0     |   |   |   |   |   |
|                                     | Crane      Creek                 | Iowa                     | Wind                     |   |                       | 21.7    |   |   |   |   |   |
| Total      Wind                          |                             |                     |                     |   |                       | 22.7    |   |   |   |   |   |
|                                     |                             |                     |                     |   |                       |    |   |   |   |   |   |
| Total      System                        |                             |                     |                     |   |                       | 2,157.6 |   |   |   |   |   |

| (1)    | Based on      capacity ratings for July 2010, which can differ from nameplate      capacity, especially on wind projects.  As a result of      continually reaching demand peaks in the summer months, primarily due to      air conditioning demand, the summer period is the most relevant for      capacity planning purposes.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)    | These      facilities are jointly owned by WPS and various other      utilities.  The capacity indicated for each of these units is      equal to WPS’s portion of total plant capacity based on its percent of      ownership.                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                   |   |
|   | -                                                                                                                                                                                                                                                                                                                                                      | Wisconsin      Power and Light Company operates the Columbia and Edgewater units, and WPS      holds a 31.8% ownership interest in these facilities. |
|   |                                                                                                                                                                                                                                                                                                                                                   |   |
|   | -                                                                                                                                                                                                                                                                                                                                                      | WPS operates      the Weston 4 facility and holds a 70% ownership in this facility, while      Dairyland Power Cooperative holds the remaining 30%. |
|   |                                                                                                                                                                                                                                                                                                                                                   |   |
|   | -                                                                                                                                                                                                                                                                                                                                                      | WRPC owns and      operates the Juneau unit.  WPS holds a 50% ownership interest in      WRPC. |
|   |                                                                                                                                                                                                                                                                                                                                                   |   |
|   | -                                                                                                                                                                                                                                                                                                                                                      | WPS operates      the West Marinette 33 unit and holds a 68% ownership interest in the      facility, while Marshfield Electric and Water Department holds the      remaining 32% ownership. |
|   |                                                                                                                                                                                                                                                                                                                                                   |
| (3)    | WRPC owns and      operates the Castle Rock and Petenwell units.  WPS holds a      50% ownership interest in WRPC; however, WPS is entitled to 66.7% of total      capacity at Petenwell and CastleRock.                                                                                                                                |

----

| ● | Approximately      7,600 miles of natural gas distribution mains located in Michigan and      Wisconsin, |
|---------|----------------------------------------------------------------------------------------------------------|
| ● | Approximately      230 miles of natural gas transmission mains located in Michigan and      Wisconsin,   |
| ● | 87 natural      gas distribution and transmission gate stations, and                                     |
| ● | Approximately      295,000 natural gas lateralservices.                                                  |

----

ITEM 3

ITEM 4

|   | PART      II |
|--------|--------------|

ITEM 5

----

|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| ITEM 6.  SELECTED FINANCIAL DATA                                                                                                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| WISCONSIN      PUBLIC SERVICE CORPORATION                                                                                                                                    |   |
| COMPARATIVE      FINANCIAL DATA AND OTHER STATISTICS (2005 TO 2009)                                                                                                          |   |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| As      of or for Year Ended December 31                                                                                                                                     |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| (Millions,      except weather information)                                                                                                                                  |   | 2009   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Operating      revenues                                                                                                                                                      |   | $      | 1,583.8 |   |   | $      | 1,748.4 |   |   | $      | 1,596.1 |   |   | $      | 1,434.4 |   |   | $ | 1,454.9 |   |
| Net income      attributed to common shareholder                                                                                                                             |   |   | 117.3   |   |   |   | 129.2   |   |   |   | 110.2   |   |   |   | 99.0    |   |   |   | 81.4 |   |
| Total      assets                                                                                                                                                            |   |   | 3,311.3 |   |   |   | 3,313.7 |   |   |   | 3,017.6 |   |   |   | 2,956.6 |   |   |   | 2,686.5 |   |
| Long-term      debt (excluding current portion)                                                                                                                              |   |   | 880.2   |   |   |   | 880.7   |   |   |   | 756.1   |   |   |   | 631.6   |   |   |   | 507.6 |   |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Weather      information *                                                                                                                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cooling      degree days                                                                                                                                                     |   |   | 274     |   |   |   | 464     |   |   |   | 634     |   |   |   | 521     |   |   |   | 649 |   |
| Cooling      degree days as a percent of normal                                                                                                                              |   |   | 54.3    | %      |   |   | 93.9    | %      |   |   | 128.6   | %      |   |   | 110.1   | % |   |   | 135.2 | % |
| Heating      degree days                                                                                                                                                     |   |   | 7,962   |   |   |   | 7,969   |   |   |   | 7,102   |   |   |   | 6,785   |   |   |   | 7,401 |   |
| Heating      degree days as a percent of normal                                                                                                                              |   |   | 104.9   | %      |   |   | 104.6   | %      |   |   | 93.2    | %      |   |   | 88.5    | % |   |   | 96.2 | % |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| * Normal      heating and cooling degree days are based on a 20-year average of monthly      temperatures from the Green Bay Weather                                    |   |
|        Station. Daily degree days are calculated by subtracting the 24-hour      average daily temperature from 65° Fahrenheit. Heating degree      days |   |   |    |   |   |   |    |   |   |
|   result      if temperatures are less than 65° Fahrenheit, and cooling degrees result      if temperatures are more than 65° Fahrenheit.                     |   |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |

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ITEM 7

| · | Continued      investment in environmental projects to improve air quality and meet the      requirements set by environmental regulators.  Capital projects      to construct and/or upgrade equipment to meet or exceed required      environmental standards are planned each year. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                             |
| · | WPS's      purchase of the 99-megawatt Crane Creek wind generation project      constructed in Howard County, Iowa, which became operational in      2009.                                                                                                                                       |

| · | IBS, a wholly      owned service company of Integrys Energy Group, was formed to achieve      consolidation and efficient delivery of various support services, and to      provide more consistent and transparent allocation of costs throughout      Integrys Energy Group and its subsidiaries.                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                       |
| · | "Operational      Excellence" initiatives were implemented to provide top performance in the      areas of project management, process improvement, contract administration,      and compliance in order to reduce costs and manage projects and activities      within appropriate budgets, schedules, and  regulations. |

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| · | Managing      operations to minimize the impact on the environment.  WPS's      Weston 4 facility, completed in 2008, is one of the most efficient      pulverized coal-fired electric generation units in the country with      state-of-the-art environmental controls, which allow WPS to reduce the      amount of emissions produced.  WPS also expects to maintain or      decrease the amount of greenhouse gases released over time and supports      research and development initiatives that will enable further progress      toward decreasing its carbon footprint. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| · | Effectively      operating a mixed portfolio of generation assets and investing in new      generation and distribution assets, such as Weston 4, wind projects,      and its natural gas connection to the Guardian II pipeline, ensures      continued reliability for WPS'scustomers.                                                                                                                                                                                                                                                                                                              |

|                                             |   | Year Ended December 31 |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
| (Millions)                                       |   | 2009                        |   |   | 2008   |   |   | 2007   |   |   | Change      in2009      Over 2008 |   |   | Change      in2008      Over 2007 |   |
| Electric      utility operations                 |   | $                           | 88.0   |   |   | $      | 88.6   |   |   | $ | 80.1 |   |   |   | (0.7 | )% |   |   | 10.6 | % |
| Natural gas      utility operations              |   |                        | 24.1   |   |   |   | 32.0   |   |   |   | 23.1 |   |   |   | (24.7 | )% |   |   | 38.5 | % |
| Other      operations                            |   |                        | 5.2    |   |   |   | 8.6    |   |   |   | 7.0 |   |   |   | (39.5 | )% |   |   | 22.9 | % |
|                                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income      attributed to common shareholder |   | $                           | 117.3  |   |   | $      | 129.2  |   |   | $ | 110.2 |   |   |   | (9.2 | )% |   |   | 17.2 | % |

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| · | Net income      attributed to common shareholder at the regulated electric utility segment      decreased $0.6 million, driven by an $18.8 million after-tax      increase in operating expenses (including restructuring expense related to      workforce reductions), a $4.6 million increase in the provision for      income taxes, and a $3.9 million after-tax increase in other expense      primarily related to an increase in interest expense.  Partially      offsetting these increases in expenses was a $25.3 million after-tax      increase in margin.                                                                  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| · | Net income      attributed to common shareholder at the regulated natural gas utility      segment decreased $7.9 million, driven by a $5.8 million      after-tax increase in operating expenses, including restructuring expense      related to workforce reductions.  A $4.8 million after-tax      decrease in margin related to lower period-over-period volumes (including      the positive impact of WPS’s decoupling mechanism), partially offset by a      $3.0 million after-tax increase in margin related to a change in rate      design, effective January 1, 2009, also contributed to a net decrease in      earnings. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| · | Other segment      earnings decreased $3.4 million in 2009 compared with 2008, driven by      an increase in interest expense on deferred compensation plans and a      decrease in income from land sales and WPS's equity method investment in      WRPC.                                                                                                                                                                                                                                                                                                                                                                                                             |

| · | Net income      attributed to common shareholder at the regulated electric utility segment      increased $8.5 million, driven by a $7.0 million after-tax      decrease in electric maintenance expenses, an approximate $6 million      after-tax increase in margin related to retail electric rate increases, an      approximate $6 million after-tax increase in margin driven by higher      contracted sales volumes to a large wholesale customer, and a $3.7 million      after-tax decrease in external costs to achieve merger synergies related      to Integrys Energy Group's merger with PEC, partially offset by a      $7.6 million after-tax increase in electric transmission expenses and      an approximate $7 million after-tax decrease in margin due to lower      residential and commercial and industrial sales volumes as a result of      cooler weather during the cooling season and customer conservation      efforts. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | Net income      attributed to common shareholder at the regulated natural gas utility      segment increased $8.9 million.  The increase was driven by      a $4.8 million after-tax increase in margin from higher volumes sold      primarily related to colder weather, a $1.7 million after-tax      decrease in employee benefit costs, and a $1.6 million after-tax      increase in AFUDC related to the construction of natural gas laterals that      connect WPS’s natural gas distribution system to the Guardian II natural      gas pipeline.                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | Other segment      earnings increased $1.6 million in 2008 compared with 2007, driven by      an increase in income from equity method investments and a decrease in      interest expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|                                                 |   |                        |     |   |   |   |     |   |   |
|------------------------------------------------------|--------|-----------------------------|----------|--------|--------|--------|----------|--------|--------|
|                                                 |   | Year Ended December 31 |     |   |   |   |     |   |   |
|                                                 |   | 2009                        |     |   | 2008   |   |     | 2007   |   |   | Change      in2009      Over 2008 |   |   | Change      in2008      Over 2007 |   |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |
| Revenues                                             |   | $                           | 1,188.2  |   |   | $      | 1,208.9  |   |   | $ | 1,125.2 |   |   |   | (1.7 | )% |   |   | 7.4 | % |
| Fuel and      purchased power costs                  |   |                        | 527.0    |   |   |   | 589.9    |   |   |   | 574.6 |   |   |   | (10.7 | )% |   |   | 2.7 | % |
| Margins                                              |   |                        | 661.2    |   |   |   | 619.0    |   |   |   | 550.6 |   |   |   | 6.8 | % |   |   | 12.4 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and      maintenance expense               |   |                        | 352.5    |   |   |   | 336.2    |   |   |   | 283.5 |   |   |   | 4.8 | % |   |   | 18.6 | % |
| Restructuring      expense                           |   |                        | 7.8      |   |   |   | -        |   |   |   | - |   |   |   | N/A |   |   |   | N/A |   |
| Depreciation      and amortization expense           |   |                        | 84.1     |   |   |   | 78.5     |   |   |   | 74.4 |   |   |   | 7.1 | % |   |   | 5.5 | % |
| Taxes other      than income taxes                   |   |                        | 42.0     |   |   |   | 40.4     |   |   |   | 38.9 |   |   |   | 4.0 | % |   |   | 3.9 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                |   |                        | 174.8    |   |   |   | 163.9    |   |   |   | 153.8 |   |   |   | 6.7 | % |   |   | 6.6 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous      income                            |   |                        | 4.5      |   |   |   | 5.8      |   |   |   | 6.2 |   |   |   | (22.4 | )% |   |   | (6.5 | )% |
| Interest      expense                                |   |                        | (38.6    | )      |   |   | (33.4    | )      |   |   | (29.5 | ) |   |   | 15.6 | % |   |   | 13.2 | % |
| Other      expense                                   |   |                        | (34.1    | )      |   |   | (27.6    | )      |   |   | (23.3 | ) |   |   | 23.6 | % |   |   | 18.5 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before      taxes                             |   | $                           | 140.7    |   |   | $      | 136.3    |   |   | $ | 130.5 |   |   |   | 3.2 | % |   |   | 4.4 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      in kilowatt-hours                         |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Residential                                    |   |                        | 2,771.4  |   |   |   | 2,794.8  |   |   |   | 2,895.7 |   |   |   | (0.8 | )% |   |   | (3.5 | )% |
|  Commercial      and industrial                 |   |                        | 7,596.5  |   |   |   | 8,060.4  |   |   |   | 8,173.4 |   |   |   | (5.8 | )% |   |   | (1.4 | )% |
|  Wholesale                                      |   |                        | 4,817.7  |   |   |   | 4,529.0  |   |   |   | 3,694.1 |   |   |   | 6.4 | % |   |   | 22.6 | % |
|  Other                                          |   |                        | 34.5     |   |   |   | 36.8     |   |   |   | 36.4 |   |   |   | (6.3 | )% |   |   | 1.1 | % |
|    Total      sales in kilowatt-hours |   |                        | 15,220.1 |   |   |   | 15,421.0 |   |   |   | 14,799.6 |   |   |   | (1.3 | )% |   |   | 4.2 | % |
|                                                 |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weather                                              |   |                        |     |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Heating      degree days                       |   |                        | 7,962    |   |   |   | 7,969    |   |   |   | 7,102 |   |   |   | (0.1 | )% |   |   | 12.2 | % |
|  Cooling      degree days                       |   |                        | 274      |   |   |   | 464      |   |   |   | 634 |   |   |   | (40.9 | )% |   |   | (26.8 | )% |

| · | An      approximate $22 million year-over-year reduction in revenue related      to refunds due to customers in both 2009 and 2008 related to WPS's      over-collection of fuel costs.  On April 23, 2009, the PSCW made      2009 fuel cost recovery subject to refund, effective April 25, 2009, as      actual and projected fuel costs for the remainder of the year were      estimated to be below the 2% fuel window.  See Note 20,      "Regulatory      Environment," for more information on WPS's fuel      window. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| · | A 5.8%      decrease in commercial and industrial sales volumes and a 0.8% decrease in      residential sales volumes, which resulted in an approximate      $20 million year-over-year decrease in revenue, after the impact of      decoupling.  The primary drivers of the decrease      were:                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | An      approximate $29 million year-over-year decrease due to lower demand      related to changes in commercial and industrial customers' plant      operations, which WPS attributed mainly to the general economic      slowdown. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | An      approximate $6 million decrease primarily related to cooler      year-over-year weather during the cooling season as evidenced by the      decrease in cooling degree days. |

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|   |                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | -                                                                                                                                                                                 | These      decreases in volumes were partially offset by the $14.0 million      impact that decoupling, which went into effect on January 1, 2009,      had on WPS's revenue.  Under decoupling, WPS is allowed to defer      the difference between its actual margin and the rate case authorized      margin recognized from residential and small commercial and industrial      customers.  This four-year pilot program for electric decoupling      has an annual $14.0 million cap for the deferral of any excess or      shortfall from the rate case authorized margin.  This cap was      reached during the second quarter of 2009; therefore, no additional      decoupling deferral was allowed for additional shortfalls from authorized      margin for the second half of the year. |
|   |                                                                                                                                                                              |
| · | An      approximate $13 million year-over-year decrease in opportunity sales      driven by lower demand and the availability of lower cost power from the      MISO market. |
|   |                                                                                                                                                                              |
| · | These      decreases in regulated electric utility segment revenue were partially      offset by:                                                                                 |
|   |                                                                                                                                                                              |
|   | -                                                                                                                                                                                 | An      approximate $19 million increase driven by higher wholesale volumes      due to an increase in contracted sales volumes to a large wholesale      customer and an increase in the wholesale demand rate, effective January      1, 2009, to recover costs related to Weston 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | -                                                                                                                                                                                 | An      approximate $15 million increase in revenue from the combined effect      of the July 4, 2008 fuel surcharge, a portion of which was      incorporated into WPS's 2009 non-fuel base retail electric rates, and the      full year's benefit of the 2008 retail electric rate increase, effective      January 16, 2008, forWPS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| · | An      approximate $20 million year-over-year increase in margin from      wholesale customers related to increases in contracted sales volumes with      an existing customer and an increase in the wholesale demand rate,      effective January 1, 2009, to recover costs related to      Weston 4.                                                                                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | An      approximate $14 million year-over-year increase in margin from the      combined effect of the July 4, 2008 fuel surcharge, a portion of      which was incorporated into WPS's 2009 non-fuel base retail electric      rates, and the full year's benefit of the 2008 retail electric rate      increase, effective January 16, 2008, forWPS.                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | An      approximate $11 million year-over-year increase in margin due to fuel      and purchased power costs that were approximately $12 million lower      than what was recovered in rates during 2009, compared with fuel and      purchased power costs that were approximately $1 million lower than      what was recovered in rates during 2008.                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | The increase      in margin was partially offset by an approximate $3 million      year-over-year decrease in margin, after the impact of the WPS decoupling      mechanism, caused by a 4.5% year-over-year decrease in sales volumes to      residential and commercial and industrial customers.  The      $14.0 million impact of decoupling partially offset the approximate      $17 million decrease in margin due to lower sales volumes, which was      attributed to the general economic slowdown and cooler year-over-year      weather during the cooling season. |

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| · | An      $8.2 million increase in electric maintenance expenses, primarily      related to a greater number of planned outages at the generation plants      during 2009, compared with 2008.                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                             |
| · | $7.8 million      in restructuring expenses related to a reduction in workforce at WPS and      IBS.  See Note 3, "Restructuring Expense,"      for more information.                                                        |
|   |                                                                                                                                                                                                                                             |
| · | A      $7.2 million increase in employee benefit costs, primarily related to      an increase in pension expensedriven by      negative pension investment returns in 2008, as well as higher heath care      related expensesin      2009. |
|   |                                                                                                                                                                                                                                             |
| · | A      $5.6 million increase in depreciation and amortization expense,      primarily related to Weston 4 being placed in service for accounting      purposes in April 2008.                                                          |

| · | A      $5.2 million increase in interest expense, primarily related to      increased long-term borrowings in December 2008.  The additional      borrowings were utilized to fund various construction projects, most      notably the Crane Creek wind generation project inIowa. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                               |
| · | A      $2.5 million decrease in interest earned on the transmission      facilities WPS funded on ATC's behalf.  WPS was reimbursed by      ATC for these transmission facilities in April  2008.                                                                                   |

| · | A 4.2%      increase in electric sales volumes, which resulted in an approximate      $33 million increase in revenue year-over-year, related      to: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                        |
|   | -                                                                                                                                                           | A 22.6%      increase in wholesale volumes year-over-year, which drove an      approximate$52 million      increase in revenue.  There was an approximate $40 million      increase in opportunity sales year-over-year as the electric utility had      more low-cost generation with Weston 4 becoming commercially      operational in 2008, combined with available capacity due to lower sales      volumes to residential customers.  In addition, WPS experienced      an approximate $12 million increase in wholesale revenue, driven by      higher contracted sales volumes to a large wholesale customer      year-over-year. |
|   |                                                                                                                                                        |
|   | -                                                                                                                                                           | The increase      in revenue related to wholesale volumes was partially offset by a 3.5%      decrease in residential sales volumes and a 1.4% decrease in commercial      and industrial sales volumes year-over-year, which drove an approximate      $19 million decrease in revenue.  Of this decrease in      revenue, approximately $12 million related to energy conservation      efforts on the part of residential customers, which is believed to be the      result of high energy prices and the general economic      slowdown.  Approximately $4 million related to decreased      demand by commercial and industrial customers in the third and fourth      quarters of 2008 as the economy worsened.  In addition, cooler      weather during the 2008 cooling season compared with 2007 contributed      approximately $3 million to the decrease in  revenue. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | An interim      fuel surcharge approved by the PSCW for WPS's retail electric customers      effective March 22, 2008, related to higher fuel and purchased      power costs.  In addition, a surcharge increase was approved by      the PSCW effective July 4, 2008. Both orders combined      had an overall impact on revenue of approximately      $25 million.  Contributing factors in this rate change were      increased purchased power costs due to lower-than-expected generation from      the new Weston 4 power plant during the start-up phases, increased      coal and coal transportation costs, and increased natural gas      costs.  On September 30, 2008, the PSCW reopened the 2008 fuel      surcharge to review forecasted fuel costs as WPS's current and anticipated      annual fuel costs were below those projected in the fuel      surcharge.  As a result of these lower costs, WPS accrued at      December 31, 2008 a refund payable in 2009 to its electric customers      of approximately $5 million, which is excluded from the      $25 million noted above.  See Note 20, "Regulatory      Environment," for more information      on WPS's interim fuel surcharges. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | A retail      electric rate increase, effective January 16, 2008, which contributed an      approximate $23 million increase in revenue.  The full      benefit of the 2007 retail electric rate increase, effective January 12,      2007, also contributed to the increase in revenue      year-over-year.  Per the PSCW's order approving Integrys Energy      Group's merger with PEC, WPS was not permitted to increase its base rates      for natural gas or electric service prior to January 1,      2009.  However, WPS was allowed to adjust rates for changes in      purchased power costs as well as fuel costs related to electric generation      due to changes in NYMEX natural gas futures prices, delivered coal prices,      and transmission costs.  The increase also included recovery of      deferred 2005 and 2006 MISO Day 2 costs over a one-year      period.  See Note 20, "Regulatory      Environment," for more information      on WPS's rateincrease.                                                                                                                                                                                                                                                                |

| · | A      $54.0 million partial refund to Wisconsin retail customers in 2007      for their portion of proceeds from the liquidation of the Kewaunee      nonqualified decommissioning trust fund.  Pursuant to regulatory      accounting, the decrease in the 2007 margin related to the refund was      offset by a corresponding decrease in operating and maintenance expense in      2007 and, therefore, did not have an impact on 2007      earnings.  WPS completed this refund in 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| · | An      approximate $10 million increase in margin from the 2008 retail      electric rate increase effective January 16, 2008, and the full benefit of      the 2007 retail electric rate increase effective      January 12, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |
| · | An      approximate $10 million increase in margin driven by higher      contracted sales volumes to a large wholesale customer      year-over-year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| · | An      approximate $5 million increase in regulated electric utility margin      year-over-year driven by fuel and purchased power costs that were      approximately $1 million lower than what was recovered in rates      during 2008, compared with fuel and purchased power costs that were      approximately $4 million higher than what was recovered in rates      during 2007.  As a result of approximately $23 million of      under-recovered fuel and purchased power costs in the first quarter of      2008, the PSCW approved an interim rate surcharge effective      March 22, 2008, and subsequently approved a higher final      surcharge effective July 4, 2008.  The $5 million      increase in electric margin includes lower fuel costs from the fuel window      reset and the net impact of the refund accrued at December 31, 2008      payable in 2009 to electric customers from the reopening of the 2008 fuel      surcharge on September 30, 2008, by the PSCW. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| · | These      increases in the electric margin at WPS were partially offset by an      approximate $11 million decrease in margin due to a decline in      residential and commercial and industrial sales volumes.  Of      this decrease, approximately $8 million related to energy      conservation efforts on the part of residential customers, which is      believed to be the result of high energy prices and the general economic      slowdown.  Approximately $1 million related to decreased      demand by commercial and industrial customers in the third and fourth      quarters of 2008 as the economy worsened.  In addition, cooler      weather during the 2008 cooling season compared with 2007 contributed      approximately $2 million to the decrease in gross    margin. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The increase      in operating expenses was driven by:               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | A      $54.0 million year-over-year increase related to the partial      amortization in 2007 of the regulatory liability previously recorded for      WPS's obligation to refund proceeds received from the liquidation of the      Kewaunee nonqualified decommissioning trust fund to Wisconsin retail      electric ratepayers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | A      $12.7 million increase in electric transmission expenses, primarily      related to higher rates charged by MISO and ATC due to additional      transmission costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | A      $6.1 million increase in cost of capital and depreciation expense      charged by IBS for assets transferred from WPS to IBS in the beginning of      2008 and reported as operating and maintenance expense in      2008.  Similar costs were reported as depreciation and      amortization expense in 2007, prior to the start-up ofIBS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | A      $4.1 million increase in depreciation and amortization expense,      primarily related to $9.2 million of depreciation expense related to      Weston 4 being placed in service for accounting purposes in      April 2008, partially offset by a decrease in depreciation related to      assets transferred to IBS and reported in operating and maintenance      expense in 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| These      increases in operating expenses were partially offset by: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | An      $11.6 million decrease in electric maintenance expenses, primarily      due to major planned outages at the Weston 2 and Weston 3      generation stations, the De Pere Energy Center, and the Pulliam generation      station, as well as several unplanned outages at the Weston 3      generation station in 2007, compared with fewer outages in      2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ·                                                               | A decrease in      external costs to achieve merger synergies of $6.2 million related to      Integrys Energy Group's merger with PEC, from $11.4 million in 2007,      to $5.2 million in 2008.  This decrease occurred primarily      because all external costs to achieve merger synergies incurred from      July 2006 through March 2007 were reallocated in 2007 from Integrys      Energy Group to the other reportable segments, including WPS as part of      the regulated electric segment.  These reportable segments are      the beneficiaries of the synergy savings resulting from the costs to      achieve.  In addition, the reduction in 2008 external costs to      achieve merger synergies was due to less integration work required in 2008      compared with 2007. |   |

----

|                                         |   |                        |   |   |   |   |   |   |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   | Year Ended December 31 |   |   |   |   |   |   |   |
|                                         |   | 2009                        |   |   | 2008   |   |   | 2007   |   |   | Change      in2009      Over 2008 |   |   | Change      in2008      Over 2007 |   |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                     |   | $                           | 395.6  |   |   | $      | 539.4  |   |   | $ | 471.0 |   |   |   | (26.7 | )% |   |   | 14.5 | % |
| Natural gas      purchased for resale        |   |                        | 241.7  |   |   |   | 382.3  |   |   |   | 322.2 |   |   |   | (36.8 | )% |   |   | 18.7 | % |
| Margins                                      |   |                        | 153.9  |   |   |   | 157.1  |   |   |   | 148.8 |   |   |   | (2.0 | )% |   |   | 5.6 | % |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and      maintenance expense       |   |                        | 71.1   |   |   |   | 66.8   |   |   |   | 68.8 |   |   |   | 6.4 | % |   |   | (2.9 | )% |
| Restructuring      expense *                 |   |                        | 2.6    |   |   |   | -      |   |   |   | - |   |   |   | N/A |   |   |   | N/A |   |
| Depreciation      and amortization expense   |   |                        | 23.0   |   |   |   | 20.9   |   |   |   | 22.1 |   |   |   | 10.0 | % |   |   | (5.4 | )% |
| Taxes other      than income taxes           |   |                        | 6.8    |   |   |   | 6.2    |   |   |   | 6.5 |   |   |   | 9.7 | % |   |   | (4.6 | )% |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                        |   |                        | 50.4   |   |   |   | 63.2   |   |   |   | 51.4 |   |   |   | (20.3 | )% |   |   | 23.0 | % |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous      income                    |   |                        | 0.6    |   |   |   | 2.4    |   |   |   | 0.4 |   |   |   | (75.0 | )% |   |   | 500.0 | % |
| Interest      expense                        |   |                        | (10.5  | )      |   |   | (9.0   | )      |   |   | (11.1 | ) |   |   | 16.7 | % |   |   | (18.9 | )% |
| Other      expense                           |   |                        | (9.9   | )      |   |   | (6.6   | )      |   |   | (10.7 | ) |   |   | 50.0 | % |   |   | (38.3 | )% |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before      taxes                     |   | $                           | 40.5   |   |   | $      | 56.6   |   |   | $ | 40.7 |   |   |   | (28.4 | )% |   |   | 39.1 | % |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Throughput      in therms                    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Residential                            |   |                        | 242.8  |   |   |   | 258.1  |   |   |   | 239.4 |   |   |   | (5.9 | )% |   |   | 7.8 | % |
|  Commercial      and industrial         |   |                        | 137.2  |   |   |   | 147.9  |   |   |   | 133.9 |   |   |   | (7.2 | )% |   |   | 10.5 | % |
|  Interruptible                          |   |                        | 8.9    |   |   |   | 20.1   |   |   |   | 23.1 |   |   |   | (55.7 | )% |   |   | (13.0 | )% |
|  Interdepartmental                      |   |                        | 9.5    |   |   |   | 28.6   |   |   |   | 47.1 |   |   |   | (66.8 | )% |   |   | (39.3 | )% |
|  Transport                              |   |                        | 339.3  |   |   |   | 354.8  |   |   |   | 344.5 |   |   |   | (4.4 | )% |   |   | 3.0 | % |
|    Total      sales in therms |   |                        | 737.7  |   |   |   | 809.5  |   |   |   | 788.0 |   |   |   | (8.9 | )% |   |   | 2.7 | % |
|                                         |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weather                                      |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Heating      degree days               |   |                        | 7,962  |   |   |   | 7,969  |   |   |   | 7,102 |   |   |   | (0.1 | )% |   |   | 12.2 | % |

| · | An      approximate $95 million decrease in revenue as a result of an      approximate 29% decrease in the per-unit cost of natural gas sold by the      regulated natural gas utility during 2009 compared with      2008.  Prudently incurred natural gas commodity costs are passed      directly through to customers in current rates. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                       |
| · | An      approximate $61 million decrease in revenue as a result of lower      year-over-year natural gas throughput volumes, driven  by:                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                       |   |
|   | -                                                                                                                                                                                                                                                                                                                                                          | An      approximate $42 million decrease related to lower overall volumes,      including residential customer volumes, resulting from customer      conservation and efficiency efforts.  Lower volumes were also      driven by decreased commercial and industrial customer volumes resulting      from reduced demand related to changes in customers' plant operations,      which WPS attributed to the general economic slowdown. |
|   |                                                                                                                                                                                                                                                                                                                                                       |   |
|   | -                                                                                                                                                                                                                                                                                                                                                          | An      approximate $19 million decrease related to a reduction in volumes      sold to the electric utility segment driven by the availability of lower      cost power from MISO, resulting in a decrease in the need for the electric      utility to run its natural gas-fired peaking generation    units. |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The decrease      in revenue year-over-year was partially offset by an approximate      $12 million increase in revenue resulting from the PSCW's final order      that approved a new rate design, which incorporates higher volumetric      rates and lower fixed customer charges in addition to a decoupling      mechanism effective January 1, 2009.  Under decoupling, WPS      is allowed to defer the difference between the actual and rate case      authorized delivery charge components of margin from certain customers and      adjusts future rates in accordance with rules specified by the      PSCW. |

| · | An      approximate $8 million year-over-year decrease in margin resulting from an      8.9% decrease in natural gas throughput volumes attributed to the negative      impact of the general economic slowdown and customer conservation and      efficiency efforts.  This decrease in margin includes the      positive impact of a decoupling mechanism that was first effective on      January 1, 2009.  The decoupling mechanism includes an annual      $8.0 million cap for the deferral of any excess or shortfall from the      rate case authorized margin.  Approximately $7 million of      additional margin was recognized due to a shortfall from the rate case      authorized margin during 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| · | The decrease      in margin was partially offset by an approximate $5 million positive      year-over-year impact resulting from the change in the rate design for      WPS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

| · | Restructuring      expenses of $2.6 million related to a reduction in workforce at WPS      and IBS.  See Note 3, "Restructuring Expense,"      for more information.                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                |
| · | A      $2.5 million increase in amortization of a regulatory asset related      to conservation program initiatives.                                                                                                                           |
|   |                                                                                                                                                                                                                                                |
| · | A      $2.1 million increase in employee benefit costs, primarily related to      an increase in pension expense resulting from negative pension investment      returns in 2008, as well as higher health care related expenses in      2009. |
|   |                                                                                                                                                                                                                                                |
| · | A      $2.1 million increase in depreciation and amortization expense,      primarily related to the natural gas laterals being connected to the      Guardian II pipeline in February2009.                                                    |

| · | A      $2.2 million decrease in AFUDC related to the construction of natural      gas laterals for connection to the Guardian II pipeline that were      placed in service in February 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                   |
| · | An increase      in interest expense resulting from additional long-term debt issued in the      fourth quarter of 2008.                                                                               |

----

| · | An      approximate $50 million increase in revenue driven by the approximate      15.9% increase in the per-unit cost of natural gas in 2008, compared with      2007.                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                 |
| · | An      approximate $38 million increase in revenue from colder weather      during the 2008 heating season compared with 2007, evidenced by the 12.2%      year-over-year increase in heating degree days.                                                                                     |
|   |                                                                                                                                                                                                                                                                                                 |
| · | An      approximate $1 million increase in revenue from WPS receiving the      benefit of its 2007 retail natural gas rate increase for the full year of      2008, whereas this rate increase did not benefit 2007 natural gas utility      results until its January 12, 2007 effective date. |
|   |                                                                                                                                                                                                                                                                                                 |
| · | The increase      in revenue was partially offset by an approximate $22 million      decrease in revenue driven by lower year-over-year natural gas throughput      volumes normalized for the impact of weather driven by:                                                                     |
|   |                                                                                                                                                                                                                                                                                                 |
|   | -                                                                                                                                                                                                                                                                                                    | An      approximate $16 million decrease in revenue related to lower volumes,      sold to WPS's electric utility segment.  The decrease in volumes      sold to the electric utility segment was a result of a decrease in the      need for the electric utility to run its peaking generation units during      the 2008 summer cooling season because of cooler year-over-year      weather.  In addition, electricity was available from      Weston 4, WPS's coal-fired generating facility that became      commercially operational in June 2008. |
|   |                                                                                                                                                                                                                                                                                                 |
|   | -                                                                                                                                                                                                                                                                                                    | An      approximate $4 million decrease in revenue related to lower volumes,      normalized for the impact of weather, sold to WPS's residential customers,      driven by customer conservation efforts and a larger number of customer      disconnections, which WPS believes resulted from high energy prices and a      general slowdown in the economy. |
|   |                                                                                                                                                                                                                                                                                                 |   |
|   | -                                                                                                                                                                                                                                                                                                    | An      approximate $2 million decrease in revenue related to lower demand,      excluding the impact of weather, by WPS's commercial and industrial      customers, as the economy worsened. |

| · | A 2.7%      increase in natural gas throughput volumes which had an approximate      $8 million positive impact on natural gas utility      margins.  Colder year-over-year weather conditions during the      heating season had an approximate $10 million positive impact on      margins.  Partially offsetting the positive impact of colder      weather conditions, were energy conservation efforts by residential      customers and a larger number of customer disconnections year-over-year      which had an approximate $2 million impact on  margins. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | An      approximate $1 million impact from WPS receiving the benefit of its      2007 retail natural gas rate increase for all of 2008, whereas this rate      increase did not benefit 2007 natural gas utility results until its      January 12, 2007, effective date.                                                                                                                                                                                                                                                                                                                     |   |

----

| · | A      $2.6 million increase in AFUDC related to the construction of natural      gas laterals for connection to the Guardian IIpipeline.                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                               |
| · | A decrease in      interest expense resulting from a decrease in short-term borrowing levels      and a decrease in interest rates for the natural gas    segment. |

|                     |   |   |                                   |   |   |       |                 |   |       |   |                 |   | Change      in  |   |   |   | Change      in  |   |
|--------------------------|--------|--------|----------------------------------------|--------|--------|------------|----------------------|--------|------------|--------|----------------------|--------|----------------------|--------|--------|--------|----------------------|--------|
|                     |   |   | Year Ended      December 31  |   |   |       | 2009      Over  |   |       |   | 2008      Over  |   |
| (Millions)               |   |   | 2009                              |   |   | 2008  |                 |   | 2007  |   |                 |   | 2008            |   |   |   | 2007            |   |
|                     |   |   |                                   |   |   |       |                 |   |       |   |                 |   |                 |   |   |   |                 |   |
| Operating      income    |   | $      | 0.4                                    |   | $      | 0.7        |                 | $      | 0.8        |   |                 |   | (42.9                | )%     |   |   | (12.5                | )%     |
| Other      income        |   |   | 6.8                                    |   |   | 11.8       |                 |   | 8.1        |   |                 |   | (42.4                | )%     |   |   | 45.7                 | %      |
|                     |   |   |                                   |   |   |       |                 |   |       |   |                 |   |                 |   |   |   |                 |   |   |
| Income before      taxes |   | $      | 7.2                                    |   | $      | 12.5       |                 | $      | 8.9        |   |                 |   | (42.4                | )%     |   |   | 40.4                 | %      |

|                    |   | Year Ended December 31 |   |
|-------------------------|--------|-----------------------------|--------|
|                    |   | 2009                        |   |   | 2008 |   |   | 2007 |   |
| Effective Tax      Rate |   |                        | 36.1   | % |   |   | 35.6 | % |   |   | 37.1 | % |

----

| · | A      $260.5 million increase related to lower working capital      requirements, primarily due to a $58.1 million decrease in accounts      receivable and accrued unbilled revenues in 2009, compared with a $47.0      million increase in accounts receivable and accrued unbilled revenues in      2008, a $45.2 million decrease in inventories during 2009, compared      with a $31.8 million increase in inventories during 2008, and a      $1.0 million decrease in accounts payable in 2009, compared with a      $74.7 million decrease in accounts payable in 2008, all driven by lower      year-over-year natural gas prices. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| · | The receipt      of $4.5 million for income taxes in 2009, compared with the payment of      $59.1 million for income taxes in 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| · | Partially      offsetting these increases in cash provided by operating activities was a      $25.8 million decrease in net recoveries of regulatory assets and      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| · | A      year-over-year decrease in cash related to working capital of      $122.2 million.  This decrease was primarily the result of      an increase in the average price of natural gas in inventory in 2008,      compared with 2007, driven by extremely high natural gas prices during the      summer months of 2008, when inventory is generally injected into      storage.  Also contributing to the decrease in cash related to      working capital was a decrease in accounts payable, due in part to less      purchased power and capital expenditures costs related to the      Weston 4 generation facility, as it became commercially operational      in June 2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| · | The decrease      in cash provided by operating activities was partially offset      by:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | A      $101.1 million increase in cash related to recoveries and refunds of      regulatory assets and liabilities, driven by a decrease in the refund to      ratepayers in 2008, compared with 2007, of proceeds WPS received from the      liquidation of the nonqualified decommissioning trust fund upon the sale      of the Kewaunee Power Station. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | An      $11.6 million year-over-year decrease in pension and other      postretirement funding.  The contribution requirements for      pension benefits are determined by the PSCW and, as such, funding      requirements change from year toyear. |

----

| Reportable      Segment (millions) |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric      utility              |   | $      | 235.2  |   |   | $      | 190.0  |   |   | $ | 191.2 |   |
| Natural gas      utility           |   |   | 24.3   |   |   |   | 85.4   |   |   |   | 29.9 |   |
| WPS      consolidated              |   | $      | 259.5  |   |   | $      | 275.4  |   |   | $ | 221.1 |   |

----

| Credit      Ratings                                                                                                                                                                                                             | Standard      & Poor's | Moody's         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|-----------------|
|         Issuer credit rating   First      mortgage bonds   Senior      secured debt        Preferred stock        Commercial paper        Credit facility | A-N/AABBBA-2N/A            | A2A1A1Baa1P-1A2 |

----

|                                                                                                  |   |                        |    |   | Payments      Due By Period |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
| (Millions)                                                                                            |   | Total      AmountsCommitted |    |   | 2010                        |   |   | 2011      to 2012 |   |   | 2013      to 2014 |   |   | 2015      and Thereafter |   |
|                                                                                                  |   |                        |    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt principal and interest       payments      (1) |   | $                           | 1,281.0 |   |                        | $      | 48.4 |   |   | $ | 383.2 |   |   | $ | 202.6 |   |   | $ | 646.8 |   |
| Operating      lease obligations                                                                      |   |                        | 26.5    |   |                        |   | 3.7 |   |   |   | 4.5 |   |   |   | 2.6 |   |   |   | 15.7 |   |
| Commodity      purchase obligations (2)                                                               |   |                        | 1,959.8 |   |                        |   | 368.6 |   |   |   | 610.8 |   |   |   | 464.6 |   |   |   | 515.8 |   |
| Purchase      orders (3)                                                                              |   |                        | 215.1   |   |                        |   | 215.1 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Pension and      other postretirementfunding obligations (4)                                          |   |                        | 258.0   |   |                        |   | 30.9 |   |   |   | 88.9 |   |   |   | 54.5 |   |   |   | 83.7 |   |
| Total      contractual cash obligations                                                               |   | $                           | 3,740.4 |   |                        | $      | 666.7 |   |   | $ | 1,087.4 |   |   | $ | 724.3 |   |   | $ | 1,262.0 |   |

| (1) |  Represents      bonds and notes issued by WPS.  WPS records all principal      obligations on the balance sheet. |
|-----|----------------------------------------------------------------------------------------------------------------------------------|

| (2) |  The      costs of commodity purchase obligations are expected to be recovered in      future customer rates. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (3) |  Includes      obligations related to normal business operations and large construction      obligations. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (4) |  Obligations      for pension and other postretirement benefit plans, other than the      Integrys Energy Group Retirement Plan, cannot be estimated beyond      2012. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Millions)                                                           |   |   |   |
|----------------------------------------------------------------------|--------|--------|--------|
| Environmental      projects                                          |   | $      | 164.1  |   |
| Electric and      natural gas distribution projects                  |   |   | 150.9  |   |
| Electric and      natural gas delivery and customer service projects |   |   | 59.1   |   |
| Other      projects                                                  |   |   | 108.0  |   |
| Total capital      expenditures                                      |   | $      | 482.1  |   |

----

----

----

| Actuarial      Assumption(Millions,      except percentages) |   | Percentage-Point      Change in Assumption |   |   | Impact      on Projected BenefitObligation |   |   | Impact      on 2009 Pension Cost |   |
|--------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|----------------------------------|--------|
| Discount      rate                                           |   |                                       | (0.5   | )      |                                       | $      | 26.4   |                             |   | $ | 2.1 |   |
| Discount      rate                                           |   |                                       | 0.5    |   |                                       |   | (22.2  | )                                |   |   | (0.2 | ) |
| Rate of      return on plan assets                           |   |                                       | (0.5   | )      |                                       |   | N/A    |                             |   |   | 2.3 |   |
| Rate of      return on plan assets                           |   |                                       | 0.5    |   |                                       |   | N/A    |                             |   |   | (2.3 | ) |

| Actuarial      Assumption(Millions,      except percentages) |   | Percentage-Point      Change in Assumption |   |   | Impact      on Postretirement Benefit Obligation |   |   | Impact      on 2009 Postretirement Benefit Cost |   |
|--------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|-------------------------------------------------|--------|
| Discount      rate                                           |   |                                       | (0.5   | )      |                                             | $      | 17.3   |                                            |   | $ | 1.7 |   |
| Discount      rate                                           |   |                                       | 0.5    |   |                                             |   | (16.0  | )                                               |   |   | (1.6 | ) |
| Health care      cost trend rate                             |   |                                       | (1.0   | )      |                                             |   | (28.6  | )                                               |   |   | (4.1 | ) |
| Health care      cost trend rate                             |   |                                       | 1.0    |   |                                             |   | 35.1   |                                            |   |   | 5.5 |   |
| Rate of      return on plan assets                           |   |                                       | (0.5   | )      |                                             |   | N/A    |                                            |   |   | 0.8 |   |
| Rate of      return on plan assets                           |   |                                       | 0.5    |   |                                             |   | N/A    |                                            |   |   | (0.8 | ) |

----

----

----

ITEM 7A

----

ITEM 8

----

----

----

|                                                                     |   |   |    |   |   |   |    |   |   |
|--------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| C. CONSOLIDATED      STATEMENTS OF INCOME                           |   |
|                                                                     |   |   |    |   |   |   |    |   |   |
| Year      Ended December 31                                              |   |   |    |   |   |   |    |   |   |
| (Millions)                                                               |   | 2009   |    |   | 2008   |   |    | 2007   |   |
|                                                                     |   |   |    |   |   |   |    |   |   |
| Operating      revenues                                                  |   |   |    |   |   |   |    |   |   |
| Electric                                                                 |   | $      | 1,188.2 |   |   | $      | 1,209.0 |   |   | $ | 1,125.1 |   |
| Natural      gas                                                         |   |   | 395.6   |   |   |   | 539.4   |   |   |   | 471.0 |   |
| Total      operating revenues                                            |   |   | 1,583.8 |   |   |   | 1,748.4 |   |   |   | 1,596.1 |   |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Electric      production fuels                                           |   |   | 187.1   |   |   |   | 204.4   |   |   |   | 162.6 |   |
| Purchased      power                                                     |   |   | 339.0   |   |   |   | 384.6   |   |   |   | 411.1 |   |
| Natural gas      purchased for resale                                    |   |   | 241.7   |   |   |   | 382.3   |   |   |   | 322.2 |   |
| Operating and      maintenance expense                                   |   |   | 424.2   |   |   |   | 403.2   |   |   |   | 352.3 |   |
| Restructuring      expense                                               |   |   | 10.4    |   |   |   | -       |   |   |   | - |   |
| Depreciation      and amortization expense                               |   |   | 107.1   |   |   |   | 99.5    |   |   |   | 96.4 |   |
| Taxes other      than income taxes                                       |   |   | 48.7    |   |   |   | 46.6    |   |   |   | 45.5 |   |
| Operating      income                                                    |   |   | 225.6   |   |   |   | 227.8   |   |   |   | 206.0 |   |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Miscellaneous      income                                                |   |   | 16.8    |   |   |   | 21.6    |   |   |   | 17.6 |   |
| Interest      expense                                                    |   |   | (54.0   | )      |   |   | (44.0   | )      |   |   | (43.5 | ) |
| Other      expense                                                       |   |   | (37.2   | )      |   |   | (22.4   | )      |   |   | (25.9 | ) |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Income before      taxes                                                 |   |   | 188.4   |   |   |   | 205.4   |   |   |   | 180.1 |   |
| Provision for      income taxes                                          |   |   | 68.0    |   |   |   | 73.1    |   |   |   | 66.8 |   |
| Net      income                                                          |   |   | 120.4   |   |   |   | 132.3   |   |   |   | 113.3 |   |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| Preferred      stock dividend requirements                               |   |   | 3.1     |   |   |   | 3.1     |   |   |   | 3.1 |   |
| Net      income attributed to common shareholder                         |   | $      | 117.3   |   |   | $      | 129.2   |   |   | $ | 110.2 |   |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| The      accompanying notes are an integral part of these    statements. |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |

----

|                                                                                                             |   |   |    |   |   |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|          D.  CONSOLIDATED      BALANCE SHEETS             |   |
|                                                                                                             |   |   |    |   |   |   |
| At      December 31                                                                                              |   |   |    |   |   |   |
| (Millions)                                                                                                       |   | 2009   |    |   | 2008   |   |
|                                                                                                             |   |   |    |   |   |   |
| Assets                                                                                                           |   |   |    |   |   |   |
| Cash and cash      equivalents                                                                                   |   | $      | 6.0     |   |   | $      | 9.0 |   |
| Collateral on      deposit                                                                                       |   |   | 1.9     |   |   |   | 13.1 |   |
| Accounts      receivable and accrued unbilled revenues, net of reserves of $5.0 and      $4.8, respectively      |   |   | 203.6   |   |   |   | 241.5 |   |
| Receivables      from related parties                                                                            |   |   | 8.1     |   |   |   | 40.6 |   |
| Inventories                                                                                                      |   |   | 70.1    |   |   |   | 114.9 |   |
| Assets from      risk management activities                                                                      |   |   | 5.0     |   |   |   | 7.3 |   |
| Regulatory      assets                                                                                           |   |   | 40.5    |   |   |   | 34.4 |   |
| Materials and      supplies, at average cost                                                                     |   |   | 24.8    |   |   |   | 25.8 |   |
| Deferred      income taxes                                                                                       |   |   | 1.8     |   |   |   | 8.0 |   |
| Prepaid      federal income tax                                                                                  |   |   | 30.6    |   |   |   | 3.0 |   |
| Prepaid gross      receipts tax                                                                                  |   |   | 39.0    |   |   |   | 39.4 |   |
| Other current      assets                                                                                        |   |   | 9.2     |   |   |   | 6.2 |   |
| Current      assets                                                                                              |   |   | 440.6   |   |   |   | 543.2 |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| Property,      plant, and equipment, net of accumulated depreciation of $1,182.0 and      $1,107.7, respectively |   |   | 2,379.8 |   |   |   | 2,226.7 |   |
| Regulatory      assets                                                                                           |   |   | 362.0   |   |   |   | 400.2 |   |
| Receivables      from related parties                                                                            |   |   | 10.5    |   |   |   | 27.4 |   |
| Goodwill                                                                                                         |   |   | 36.4    |   |   |   | 36.4 |   |
| Other      long-term assets                                                                                      |   |   | 82.0    |   |   |   | 79.8 |   |
| Total      assets                                                                                                |   | $      | 3,311.3 |   |   | $      | 3,313.7 |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| Liabilities      and Shareholders' Equity                                                                        |   |   |    |   |   |   |   |   |
| Short-term      debt                                                                                             |   | $      | 17.0    |   |   | $      | 60.0 |   |
| Accounts      payable                                                                                            |   |   | 109.0   |   |   |   | 123.2 |   |
| Payables to      related parties                                                                                 |   |   | 26.5    |   |   |   | 22.5 |   |
| Liabilities      from risk management activities                                                                 |   |   | 2.5     |   |   |   | 12.8 |   |
| Regulatory      liabilities                                                                                      |   |   | 44.4    |   |   |   | 16.6 |   |
| Customer      credit balances                                                                                    |   |   | 28.2    |   |   |   | 15.4 |   |
| Other current      liabilities                                                                                   |   |   | 45.1    |   |   |   | 34.4 |   |
| Current      liabilities                                                                                         |   |   | 272.7   |   |   |   | 284.9 |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| Long-term debt      to parent                                                                                    |   |   | 9.3     |   |   |   | 9.9 |   |
| Long-term      debt                                                                                              |   |   | 870.9   |   |   |   | 870.8 |   |
| Deferred      income taxes                                                                                       |   |   | 294.2   |   |   |   | 198.8 |   |
| Deferred      investment tax credits                                                                             |   |   | 9.8     |   |   |   | 10.7 |   |
| Regulatory      liabilities                                                                                      |   |   | 234.2   |   |   |   | 232.3 |   |
| Environmental      remediation liabilities                                                                       |   |   | 75.3    |   |   |   | 73.9 |   |
| Pension and      other postretirement benefit obligations                                                        |   |   | 258.6   |   |   |   | 315.8 |   |
| Payables to      related parties                                                                                 |   |   | 9.0     |   |   |   | 10.5 |   |
| Other      long-term liabilities                                                                                 |   |   | 98.1    |   |   |   | 79.9 |   |
| Long-term      liabilities                                                                                       |   |   | 1,859.4 |   |   |   | 1,802.6 |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| Commitments      and contingencies                                                                               |   |   |    |   |   |   |   |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| Preferred      stock - $100 par value; 1,000,000 shares authorized; 511,882 shares issued      and outstanding   |   |   | 51.2    |   |   |   | 51.2 |   |
| Common stock -      $4 par value; 32,000,000 shares authorized; 23,896,962 shares issued and      outstanding    |   |   | 95.6    |   |   |   | 95.6 |   |
| Additional      paid-in capital                                                                                  |   |   | 640.2   |   |   |   | 707.4 |   |
| Retained      earnings                                                                                           |   |   | 392.2   |   |   |   | 372.0 |   |
| Total      liabilities and shareholders' equity                                                                  |   | $      | 3,311.3 |   |   | $      | 3,313.7 |   |
|                                                                                                             |   |   |    |   |   |   |   |   |
| The      accompanying notes are an integral part of these    statements.                                         |   |   |    |   |   |   |   |   |
|                                                                                                             |   |   |    |   |   |   |   |   |

----

|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------------------|--------|---------|--------|--------|--------|---------|--------|
| E. CONSOLIDATED      STATEMENTS OF CAPITALIZATION                   |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |
| At      December 31                                                      |   |   |   |   |               |   |    |   |   |   |    |   |
| (Millions,      except share amounts)                                    |   |   | 2009   |   |               | 2008   |    |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |
| Common      stock equity                                                 |   |   |   |   |               |   |    |   |   |   |
| Common stock -      $4 par value; 32,000,000 shares authorized;          |   |   |   |   |               |   |    |
| 23,896,962      shares outstanding                                       |   |   | $      | 95.6   |               |   | $       | 95.6   |   |
| Additional      paid-in capital                                          |   |   |   |   |               |   | 640.2   |   |   |   | 707.4   |   |
| Retained      earnings                                                   |   |   |   |   |               |   |    |   | 392.2  |   |    |   | 372.0 |   |
| Total      common stock equity                                           |   |   |   |   |               |   | 1,128.0 |   |   |   | 1,175.0 |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |
| Preferred      stock                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |
| Cumulative;      $100 par value; 1,000,000 shares authorized             |   |   |   |   |               |   |    |   |   |
| with no      mandatory redemption -                                      |   |   |   |   |               |   |    |   |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |
|                                                                     |   | Series |   |   | Shares Outstanding |   |    |   |   |   |    |   |   |   |
|                                                                     |   |   | 5.00   | %      |               |   | 131,916 |   |   |   | 13.2    |   |   |   | 13.2 |   |
|                                                                     |   |   | 5.04   | %      |               |   | 29,983  |   |   |   | 3.0     |   |   |   | 3.0 |   |
|                                                                     |   |   | 5.08   | %      |               |   | 49,983  |   |   |   | 5.0     |   |   |   | 5.0 |   |
|                                                                     |   |   | 6.76   | %      |               |   | 150,000 |   |   |   | 15.0    |   |   |   | 15.0 |   |
|                                                                     |   |   | 6.88   | %      |               |   | 150,000 |   |   |   | 15.0    |   |   |   | 15.0 |   |
| Total      preferred stock                                               |   |   |   |   |               |   |    | 51.2   |   |   |    | 51.2   |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| Long-term      debt to parent                                            |   |   |   |   |               |   |    |   |   |   |    |   |   |
|                                                                     |   | Series |   |   | Year Due           |   |    |   |   |   |    |   |   |   |
|                                                                     |   |   | 8.76   | %      |               | 2015   |    |   |   | 3.8    |    |   |   | 4.0 |   |
|                                                                     |   |   | 7.35   | %      |               | 2016   |    |   |   | 5.5    |    |   |   | 5.9 |   |
| Total      long-term debt to parent                                      |   |   |   |   |               |   |    | 9.3    |   |   |    | 9.9    |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| Long-term      debt                                                      |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| First Mortgage      Bonds                                                |   |   |   |   |               |   |    |   |   |   |    |   |   |
|                                                                     |   | Series |   |   | Year Due           |   |    |   |   |   |    |   |   |   |
|                                                                     |   |   | 7.125  | %      |               | 2023   |    |   |   | 0.1    |    |   |   | 0.1 |   |
|   Senior      Notes                                            |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
|                                                                     |   | Series |   |   | Year Due           |   |    |   |   |   |    |   |   |   |
|                                                                     |   |   | 6.125  | %      |               | 2011   |    |   |   | 150.0  |    |   |   | 150.0 |   |
|                                                                     |   |   | 4.875  | %      |               | 2012   |    |   |   | 150.0  |    |   |   | 150.0 |   |
|                                                                     |   |   | 3.95   | %      |               | 2013   |    |   |   | 22.0   |    |   |   | 22.0 |   |
|                                                                     |   |   | 4.80   | %      |               | 2013   |    |   |   | 125.0  |    |   |   | 125.0 |   |
|                                                                     |   |   | 6.375  | %      |               | 2015   |    |   |   | 125.0  |    |   |   | 125.0 |   |
|                                                                     |   |   | 5.65   | %      |               | 2017   |    |   |   | 125.0  |    |   |   | 125.0 |   |
|                                                                     |   |   | 6.08   | %      |               | 2028   |    |   |   | 50.0   |    |   |   | 50.0 |   |
|                                                                     |   |   | 5.55   | %      |               | 2036   |    |   |   | 125.0  |    |   |   | 125.0 |   |
| Total First      Mortgage Bonds and Senior Notes                         |   |   |   | 872.1  |               |   |    | 872.1  |   |
| Unamortized      discount on long-term debt, net                         |   |   |   | (1.2   | )                  |   |    | (1.3   | )      |
| Total      long-term debt                                                |   |   |   |   |               |   |    | 870.9  |   |   |    | 870.8  |   |
| Total      capitalization                                                |   |   |   |   |               |   |    |   |   | $      | 2,059.4 |   |   | $ | 2,106.9 |   |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| The      accompanying notes are an integral part of these    statements. |   |   |   |   |               |
|                                                                     |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |

----

|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |
|--------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|---------|---------|------------|--------|--------|--------------|--------|--------|----------|--------|--------|--------------------|--------|
| F. CONSOLIDATED      STATEMENTS OF COMMON SHAREHOLDERS'EQUITY       |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   | Accumulated        |   |
|                                                                     |   |                |   |   |   |    |    | Additional |   |   |         |   |   | Other    |   |
|                                                                     |   |  Comprehensive |   |   |   |    |    | Common     |   |   | Paid      in |   |   | Retained |   |   | Comprehensive      |   |
| (Millions)                                                               |   | Income              |   |   | Total  |    |    | Stock      |   |   | Capital      |   |   | Earnings |   |   | Income      (Loss) |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |
| Balance      at December 31, 2006                                        |   |                |   |   | $      | 1,100.0 |    |       | $      | 95.6   |         |   | $      | 685.1    |   |   | $                  | 319.5  |   |   | $ | (0.2 | ) |
| Net income      attributed to common shareholder                         |   | $                   | 110.2  |   |   |    | 110.2   |       |   |   | -            |   |   |     | -      |   |               |   | 110.2 |   |   |   | - |   |
| Comprehensive      income                                                |   | $                   | 110.2  |   |   |    | -       |       |   |   | -            |   |   |     | -      |   |               |   | - |   |   |   | - |   |
| Net equity      infusions from parent                                    |   |                |   |   |   |    | 25.0    |       |   |   | -            |   |   |     | 25.0   |   |               |   | - |   |   |   | - |   |
| Dividends to      parent                                                 |   |                |   |   |   |    | (91.2   | )          |   |   | -            |   |   |     | -      |   |               |   | (91.2 | ) |   |   | - |   |
| Adjustments to      unrecognized pension and other postretirement costs  |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |
|      (net      of taxes of $0.1)                |   |                |   |   |   |    | 0.2     |       |   |   | -            |   |   |     | -      |   |               |   | - |   |   |   | 0.2 |   |
| Other                                                                    |   |                |   |   |   |    | 2.4     |       |   |   | -            |   |   |     | 3.7    |   |               |   | (1.3 | ) |   |   | - |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                                        |   |                |   |   |   | $       | 1,146.6 |       |   | $      | 95.6         |   |   | $        | 713.8  |   |               | $      | 337.2 |   |   | $ | - |   |
| Net income      attributed to common shareholder                         |   | $                   | 129.2  |   |   |    | 129.2   |       |   |   | -            |   |   |     | -      |   |               |   | 129.2 |   |   |   | - |   |
| Comprehensive      income                                                |   | $                   | 129.2  |   |   |    | -       |       |   |   | -            |   |   |     | -      |   |               |   | - |   |   |   | - |   |
| Net return of      capital to parent                                     |   |                |   |   |   |    | (10.0   | )          |   |   | -            |   |   |     | (10.0  | )      |               |   | - |   |   |   | - |   |
| Dividends to      parent                                                 |   |                |   |   |   |    | (93.9   | )          |   |   | -            |   |   |     | -      |   |               |   | (93.9 | ) |   |   | - |   |
| Other                                                                    |   |                |   |   |   |    | 3.1     |       |   |   | -            |   |   |     | 3.6    |   |               |   | (0.5 | ) |   |   | - |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |   |   |   |
| Balance      at December 31, 2008                                        |   |                |   |   |   | $       | 1,175.0 |       |   | $      | 95.6         |   |   | $        | 707.4  |   |               | $      | 372.0 |   |   | $ | - |   |
| Net income      attributed to common shareholder                         |   | $                   | 117.3  |   |   |    | 117.3   |       |   |   | -            |   |   |     | -      |   |               |   | 117.3 |   |   |   | - |   |
| Comprehensive      income                                                |   | $                   | 117.3  |   |   |    | -       |       |   |   | -            |   |   |     | -      |   |               |   | - |   |   |   | - |   |
| Net return of      capital to parent                                     |   |                |   |   |   |    | (70.0   | )          |   |   | -            |   |   |     | (70.0  | )      |               |   | - |   |   |   | - |   |
| Dividends to      parent                                                 |   |                |   |   |   |    | (96.7   | )          |   |   | -            |   |   |     | -      |   |               |   | (96.7 | ) |   |   | - |   |
| Other                                                                    |   |                |   |   |   |    | 2.4     |       |   |   | -            |   |   |     | 2.8    |   |               |   | (0.4 | ) |   |   | - |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |   |   |   |
| Balance      at December 31, 2009                                        |   |                |   |   |   | $       | 1,128.0 |       |   | $      | 95.6         |   |   | $        | 640.2  |   |               | $      | 392.2 |   |   | $ | - |   |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these    statements. |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |
|                                                                     |   |                |   |   |   |    |    |       |   |   |         |   |   |     |   |   |               |   |   |   |   |   |   |   |

----

|                                                                                                                  |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| G. CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                    |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |
| Year      Ended December 31                                                                                           |   |   |   |   |   |   |   |   |   |
| (Millions)                                                                                                            |   | 2009   |   |   | 2008   |   |   | 2007   |   |
| Operating      Activities                                                                                             |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                       |   | $      | 120.4  |   |   | $      | 132.3  |   |   | $ | 113.3 |   |
| Adjustments to      reconcile net income to net cash provided by operating      activities                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization expense                                                                            |   |   | 107.1  |   |   |   | 99.5   |   |   |   | 96.4 |   |
| Refund of      nonqualified decommissioning fund                                                                      |   |   | (0.5   | )      |   |   | (0.5   | )      |   |   | (70.6 | ) |
| Recoveries and      refunds of other regulatory assets and liabilities                                                |   |   | 12.2   |   |   |   | 38.0   |   |   |   | 7.0 |   |
| Deferred      income taxes and investment tax credit                                                                  |   |   | 102.2  |   |   |   | 12.6   |   |   |   | 21.5 |   |
| Bad debt      expense                                                                                                 |   |   | 11.7   |   |   |   | 9.4    |   |   |   | 7.8 |   |
| Allowance for      equity funds used during construction                                                              |   |   | (7.2   | )      |   |   | (7.0   | )      |   |   | (1.2 | ) |
| Pension and      other postretirement expense                                                                         |   |   | 14.0   |   |   |   | 6.8    |   |   |   | 24.6 |   |
| Pension and      other postretirement funding                                                                         |   |   | (10.4  | )      |   |   | (23.5  | )      |   |   | (35.1 | ) |
| Equity income,      net of dividends                                                                                  |   |   | (1.9   | )      |   |   | (0.8   | )      |   |   | (3.2 | ) |
| Other,      net                                                                                                       |   |   | (14.7  | )      |   |   | 23.4   |   |   |   | 21.3 |   |
| Changes in      working capital                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Collateral on      deposit                                                                                            |   |   | 11.1   |   |   |   | (6.6   | )      |   |   | 6.9 |   |
| Accounts      receivable and accrued unbilled revenues                                                                |   |   | 58.1   |   |   |   | (47.0  | )      |   |   | (45.3 | ) |
| Inventories                                                                                                           |   |   | 45.2   |   |   |   | (31.8  | )      |   |   | 20.9 |   |
| Prepaid      federal income taxes                                                                                     |   |   | (27.6  | )      |   |   | 43.5   |   |   |   | (14.9 | ) |
| Other current      assets                                                                                             |   |   | (3.2   | )      |   |   | (5.3   | )      |   |   | 5.8 |   |
| Accounts      payable                                                                                                 |   |   | (1.0   | )      |   |   | (74.7  | )      |   |   | 24.8 |   |
| Accrued      taxes                                                                                                    |   |   | (0.7   | )      |   |   | (3.8   | )      |   |   | 2.3 |   |
| Other current      liabilities                                                                                        |   |   | 48.8   |   |   |   | (4.1   | )      |   |   | (8.1 | ) |
| Net      cash provided by operating activities                                                                        |   |   | 463.6  |   |   |   | 160.4  |   |   |   | 174.2 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing      Activities                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                             |   |   | (259.5 | )      |   |   | (275.4 | )      |   |   | (221.1 | ) |
| Proceeds from      sale of property                                                                                   |   |   | 3.1    |   |   |   | 7.3    |   |   |   | - |   |
| Assets      transferred to IBS                                                                                        |   |   | -      |   |   |   | 8.5    |   |   |   | - |   |
| Restricted      cash for repayment of long-term debt                                                                  |   |   | -      |   |   |   | -      |   |   |   | 22.0 |   |
| Cash paid for      transmission interconnection                                                                       |   |   | -      |   |   |   | (17.4  | )      |   |   | (23.9 | ) |
| Proceeds      received from transmission interconnection                                                              |   |   | -      |   |   |   | 99.7   |   |   |   | - |   |
| Other                                                                                                                 |   |   | 2.9    |   |   |   | 4.7    |   |   |   | 6.0 |   |
| Net      cash used for investing activities                                                                           |   |   | (253.5 | )      |   |   | (172.6 | )      |   |   | (217.0 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing      Activities                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term      debt - net                                                                                            |   |   | (43.0  | )      |   |   | (0.7   | )      |   |   | 12.7 |   |
| Issuance of      long-term debt                                                                                       |   |   | -      |   |   |   | 125.0  |   |   |   | 125.0 |   |
| Payments of      long-term debt                                                                                       |   |   | (0.6   | )      |   |   | (0.6   | )      |   |   | (22.5 | ) |
| Dividends to      parent                                                                                              |   |   | (96.7  | )      |   |   | (93.9  | )      |   |   | (91.2 | ) |
| Equity      contributions from parent                                                                                 |   |   | -      |   |   |   | 55.0   |   |   |   | 50.0 |   |
| Return of      capital to parent                                                                                      |   |   | (70.0  | )      |   |   | (65.0  | )      |   |   | (25.0 | ) |
| Preferred      stock dividends                                                                                        |   |   | (3.1   | )      |   |   | (3.1   | )      |   |   | (3.1 | ) |
| Other                                                                                                                 |   |   | 0.3    |   |   |   | 0.4    |   |   |   | 0.2 |   |
| Net      cash (used for) provided by financing activities                                                             |   |   | (213.1 | )      |   |   | 17.1   |   |   |   | 46.1 |   |
| Net      change in cash and cash equivalents                                                                          |   |   | (3.0   | )      |   |   | 4.9    |   |   |   | 3.3 |   |
| Cash and cash      equivalents at beginning of year                                                                   |   |   | 9.0    |   |   |   | 4.1    |   |   |   | 0.8 |   |
| Cash      and cash equivalents at end of year                                                                         |   | $      | 6.0    |   |   | $      | 9.0    |   |   | $ | 4.1 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes to WPS's consolidated financial statements are an      integral part of these statements. |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

NOTES

| (Millions)                                 |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash paid for      interest                |   | $      | 49.4   |   |   | $      | 42.7   |   |   | $ | 37.6 |   |
| Cash      (received) paid for income taxes |   |   | (4.5   | )      |   |   | 59.1   |   |   |   | 30.8 |   |

----

----

| Annual      Utility Composite Depreciation Rates |   | 2009   |   |   | 2008   |   |   | 2007 |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Electric                                         |   |   | 3.04   | %      |   |   | 3.09   | %    |   |   | 3.35 | % |
| Natural      gas                                 |   |   | 3.30   | %      |   |   | 3.39   | %    |   |   | 3.52 | % |

----

----

----

|                     |                            |   | Assets               |   |   | Liabilities                |   |
|--------------------------|---------------------------------|--------|----------------------|--------|--------|----------------------------|--------|
| (Millions)               | Balance      Sheet Presentation |   | December 312009 |   |   | December 31      2008 |   |   | December 312009 |   |   | December 31      2008 |   |
| Commodity      contracts | Current                         |   | $                    | 5.0    |   |                       | $      | 7.3 |   |   | $ | 2.5 |   |   | $ | 12.8 |   |
| Commodity      contracts | Other      Long-term            |   |                 | -      |   |                       |   | - |   |   |   | - |   |   |   | 0.2 |   |
| Total                    |                            |   | $                    | 5.0    |   |                       | $      | 7.3 |   |   | $ | 2.5 |   |   | $ | 13.0 |   |

| (Millions)               | Financial      Statement Presentation                          |   | 2009   |   |
|--------------------------|----------------------------------------------------------------|--------|--------|--------|
| Commodity      contracts | Balance Sheet      – Regulatory assets (current)         |   | $      | 10.5   |   |
| Commodity      contracts | Balance Sheet      – Regulatory assets (long-term)       |   |   | 0.2    |   |
| Commodity      contracts | Balance Sheet      – Regulatory liabilities (current)    |   |   | (0.8   | ) |
| Commodity      contracts | Income      Statement – Natural gas purchased for resale |   |   | 0.1    |   |

| Commodity                              |   | Purchases |   |   | Other      Transactions |   |
|----------------------------------------|--------|-----------|--------|--------|-------------------------|--------|
| Natural gas      (millions of therms)  |   |      | 54.6   |   |                    |   | N/A |   |
| FTRs      (millions of kilowatt-hours) |   |      | N/A    |   |                    |   | 4,306.0 |   |
| Petroleum      products (barrels)      |   |      | 15,144 |   |                    |   | N/A |   |

| (Millions)                              |   | December 31,      2009 |   |   | December 31,      2008 |   |
|-----------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
| Cash      collateral provided to others |   | $                           | 1.9    |   |                        | $      | 13.1 |   |

----

| (Millions)                     |   | 2009   |   |
|--------------------------------|--------|--------|--------|
| Natural gas      utility       |   | $      | 2.6    |   |
| Electric      utility          |   |   | 7.8    |   |
| Total      restructuring costs |   | $      | 10.4   |   |

| (Millions)                                     |   | 2009   |    |   | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Electric      utility                          |   | $      | 2,854.0 |   |   | $      | 2,566.2 |   |
| Natural gas      utility                       |   |   | 671.9   |   |   |   | 606.7 |   |
| Total utility      plant                       |   |   | 3,525.9 |   |   |   | 3,172.9 |   |
| Less:  Accumulated      depreciation |   |   | 1,174.6 |   |   |   | 1,100.8 |   |
| Net                                            |   |   | 2,351.3 |   |   |   | 2,072.1 |   |
| Construction      work in progress             |   |   | 20.5    |   |   |   | 145.9 |   |
| Net utility      plant                         |   |   | 2,371.8 |   |   |   | 2,218.0 |   |
|                                           |   |   |    |   |   |   |   |   |
| Nonutility      plant                          |   |   | 15.4    |   |   |   | 15.6 |   |
| Less:  Accumulated      depreciation |   |   | 7.4     |   |   |   | 6.9 |   |
| Net      nonutility plant                      |   |   | 8.0     |   |   |   | 8.7 |   |
|                                           |   |   |    |   |   |   |   |   |
| Total      property, plant, and equipment      |   | $      | 2,379.8 |   |   | $      | 2,226.7 |   |

| (Millions,      except for percentages and megawatts) |   | Weston 4 |   |   | West      MarinetteUnit      No. 33 |   |   | Columbia      EnergyCenterUnits      1 and 2 |   |   | EdgewaterUnit      No. 4 |   |
|-------------------------------------------------------|--------|---------------|--------|--------|------------------------------------------|--------|--------|----------------------------------------------|--------|--------|-------------------------------|--------|
| Ownership                                             |   |          | 70.0   | %      |                                     |   | 68.0   | %                                            |   |   | 31.8                          | %      |   |   | 31.8 | % |
| WPS's      share of rated capacity (megawatts)        |   |          | 374.5  |   |                                     |   | 56.8   |                                         |   |   | 335.2                         |   |   |   | 105.0 |   |
| Utility      plant in service                         |   | $             | 609.8  |   |                                     | $      | 18.2   |                                         |   | $      | 165.9                         |   |   | $ | 37.8 |   |
| Accumulated      depreciation                         |   | $             | 53.5   |   |                                     | $      | 9.7    |                                         |   | $      | 102.4                         |   |   | $ | 23.5 |   |
| In-service      date                                  |   | 2008          |   |   | 1993                                     |   |   | 1975      and 1978                           |   |   | 1969                          |   |

----

| (Millions)                                                         |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                               |   |   |   |   |   |   |
| Regulatory      assets                                             |   |   |   |   |   |   |
| Pension and      other postretirement benefit related items        |   | $      | 201.7  |   |   | $      | 246.8 |   |
| Environmental      remediation costs (net of insurance recoveries) |   |   | 74.2   |   |   |   | 74.1 |   |
| De Pere      Energy Center                                         |   |   | 33.4   |   |   |   | 35.8 |   |
| Decoupling                                                         |   |   | 21.0   |   |   |   | - |   |
| Weston 3      lightning strike                                |   |   | 18.1   |   |   |   | 22.3 |   |
| Costs of      previously owned nuclear plant                       |   |   | 14.3   |   |   |   | 24.1 |   |
| Conservation      program costs                                    |   |   | 9.2    |   |   |   | - |   |
| Income tax      related items                                      |   |   | 8.1    |   |   |   | 1.1 |   |
| Energy costs      receivable through rate adjustments              |   |   | 5.4    |   |   |   | 3.6 |   |
| Bad debt      expense                                              |   |   | 5.0    |   |   |   | 4.8 |   |
| Asset      retirement obligations                                  |   |   | 4.8    |   |   |   | 4.3 |   |
| Derivatives                                                        |   |   | 2.9    |   |   |   | 13.6 |   |
| Other                                                              |   |   | 4.4    |   |   |   | 4.1 |   |
| Total                                                              |   | $      | 402.5  |   |   | $      | 434.6 |   |
| Balance      Sheet Presentation                                    |   |   |   |   |   |   |   |   |
| Current                                                            |   | $      | 40.5   |   |   | $      | 34.4 |   |
| Long-term                                                          |   |   | 362.0  |   |   |   | 400.2 |   |
| Total                                                              |   | $      | 402.5  |   |   | $      | 434.6 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Regulatory      liabilities                                        |   |   |   |   |   |   |   |   |
| Cost of      removal reserve                                       |   | $      | 211.9  |   |   | $      | 202.0 |   |
| Energy costs      refundable through rate adjustments              |   |   | 33.2   |   |   |   | 6.2 |   |
| Pension and      other postretirement benefit related items        |   |   | 22.2   |   |   |   | 21.1 |   |
| ATC and MISO      refunds                                          |   |   | 4.6    |   |   |   | 9.6 |   |
| Derivatives                                                        |   |   | 4.0    |   |   |   | 4.8 |   |
| Income tax      related items                                      |   |   | 0.6    |   |   |   | 1.8 |   |
| Other                                                              |   |   | 2.1    |   |   |   | 3.4 |   |
| Total                                                              |   | $      | 278.6  |   |   | $      | 248.9 |   |
| Balance      Sheet Presentation                                    |   |   |   |   |   |   |   |   |
| Current                                                            |   | $      | 44.4   |   |   | $      | 16.6 |   |
| Long-term                                                          |   |   | 234.2  |   |   |   | 232.3 |   |
| Total                                                              |   | $      | 278.6  |   |   | $      | 248.9 |   |

----

| Year      ending December 31 |   |   |   |
|-----------------------------------|--------|--------|--------|
| (Millions)                        |   |   |   |
| 2010                              |   | $      | 3.7    |   |
| 2011                              |   |   | 2.9    |   |
| 2012                              |   |   | 1.6    |   |
| 2013                              |   |   | 1.6    |   |
| 2014                              |   |   | 1.0    |   |
| Later      years                  |   |   | 15.7   |   |
| Total      payments               |   | $      | 26.5   |   |

| (Millions,      except for percentages)                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Commercial      paper outstanding                          |   | $      | 7.0    |   |   | $      | 50.0   |   |   | $ | 50.7 |   |
| Average      discount rate on outstanding commercial paper |   |   | 0.22   | %      |   |   | 5.27   | %      |   |   | 5.65 | % |
| Short-term      notes payable outstanding                  |   | $      | 10.0   |   |   | $      | 10.0   |   |   | $ | 10.0 |   |
| Average      interest rate on short-term notes payable     |   |   | 0.18   | %      |   |   | 1.86   | %      |   |   | 5.20 | % |

| (Millions)                                                  |   | 2009 |   |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Average amount      of commercial paper outstanding         |   | $    | 3.2    |   |   | $      | 26.2   |   |   | $ | 45.9 |   |
| Average amount      of short-term notes payable outstanding |   | $    | 10.0   |   |   | $      | 10.0   |   |   | $ | 10.0 |   |

----

| (Millions)                                                       | Maturity |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------------------|----------|--------|--------|--------|--------|--------|--------|
| Revolving      credit facility (1)                               | 6/02/10  |   | $      | 115.0  |   |   | $      | 115.0 |   |
| Revolving      short-term notes payable (2)                      | 5/13/10  |   |   | 10.0   |   |   |   | 10.0 |   |
| Total      short-term credit capacity                            |     |   |   | 125.0  |   |   |   | 125.0 |   |
|                                                             |     |   |   |   |   |   |   |   |   |
| Less:                                                            |     |   |   |   |   |   |   |   |   |
| Letters of      credit issued inside credit facilities           |     |   |   | 3.2    |   |   |   | 3.8 |   |
| Loans      outstanding under credit agreements and notes payable |     |   |   | 10.0   |   |   |   | 10.0 |   |
| Commercial      paper outstanding                                |     |   |   | 7.0    |   |   |   | 50.0 |   |
| Available      capacity under existing agreements                |     |   | $      | 104.8  |   |   | $      | 61.2 |   |

| Year      ending December 31 (Millions) |   |   |   |
|---------------------------------------------------|--------|--------|--------|
| 2010                                              |   | $      | -      |   |
| 2011                                              |   |   | 150.0  |   |
| 2012                                              |   |   | 150.0  |   |
| 2013                                              |   |   | 147.0  |   |
| 2014                                              |   |   | -      |   |
| Later      years                                  |   |   | 425.1  |   |
| Total      payments                               |   | $      | 872.1  |   |

----

| (Millions)                                                  |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|
| Asset      retirement obligations at December 31, 2006 |   | $      | 8.1    |   |
| Accretion                                                   |   |   | 0.5    |   |
| Asset      retirement obligations at December 31, 2007 |   |   | 8.6    |   |
| Accretion                                                   |   |   | 0.5    |   |
| Asset      retirement obligations transferred in sales      |   |   | (0.1   | ) |
| Asset      retirement obligations at December 31, 2008 |   |   | 9.0    |   |
| Accretion                                                   |   |   | 0.5    |   |
| Additions and      revisions to estimated cash flows        |   |   | 8.3    | * |
| Asset      retirement obligations at December 31, 2009 |   | $      | 17.8   |   |

| * | This amount includes a      $6.3 million asset retirement obligation related to the 99-megawatt      Crane Creek wind generation project that became operational in the fourth      quarter of 2009. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions)                                     |   | 2009   |   |   | 2008   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                           |   |   |   |   |   |   |
| Deferred      income tax assets:               |   |   |   |   |   |   |
| Employee      benefits                         |   | $      | 45.3   |   |   | $      | 42.7 |   |
| Other                                          |   |   | 2.9    |   |   |   | 3.7 |   |
| Total      deferred income tax assets          |   | $      | 48.2   |   |   | $      | 46.4 |   |
|                                           |   |   |   |   |   |   |   |   |
| Deferred      income tax liabilities:          |   |   |   |   |   |   |   |   |
| Plant      related                             |   | $      | 290.3  |   |   | $      | 213.9 |   |
| Regulatory      deferrals                      |   |   | 29.6   |   |   |   | 17.9 |   |
| Deferred      income                           |   |   | 20.7   |   |   |   | 5.4 |   |
| Total      deferred income tax liabilities     |   | $      | 340.6  |   |   | $      | 237.2 |   |
|                                           |   |   |   |   |   |   |   |   |
| Consolidated      Balance Sheet presentation:  |   |   |   |   |   |   |   |   |
| Current      deferred income tax assets        |   | $      | 1.8    |   |   | $      | 8.0 |   |
| Long-term      deferred income tax liabilities |   |   | 294.2  |   |   |   | 198.8 |   |
| Net      deferred income tax liabilities       |   | $      | 292.4  |   |   | $      | 190.8 |   |

|                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (Millions,      except for percentages) |   | Rate   |   |   | Amount |   |   | Rate   |   |   | Amount |   |   | Rate |   |   | Amount |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory      federal income tax       |   |   | 35.0   | %      |   | $      | 66.0   |   |   |   | 35.0 | % |   | $ | 71.9 |   |   |   | 35.0 | % |   | $ | 63.0 |   |
| State income      taxes, net            |   |   | 5.2    |   |   |   | 9.7    |   |   |   | 4.3 |   |   |   | 8.9 |   |   |   | 4.9 |   |   |   | 8.9 |   |
| Benefits and      compensation          |   |   | (1.3   | )      |   |   | (2.4   | )      |   |   | (1.3 | ) |   |   | (2.6 | ) |   |   | (1.9 | ) |   |   | (3.4 | ) |
| Other      differences, net             |   |   | (2.8   | )      |   |   | (5.3   | )      |   |   | (2.4 | ) |   |   | (5.1 | ) |   |   | (0.9 | ) |   |   | (1.7 | ) |
| Effective      income tax               |   |   | 36.1   | %      |   | $      | 68.0   |   |   |   | 35.6 | % |   | $ | 73.1 |   |   |   | 37.1 | % |   | $ | 66.8 |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      provision                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                                 |   |   |   |   |   | $      | (36.1  | )      |   |   |   |   |   | $ | 46.0 |   |   |   |   |   |   | $ | 37.1 |   |
| State                                   |   |   |   |   |   |   | 2.7    |   |   |   |   |   |   |   | 14.5 |   |   |   |   |   |   |   | 8.4 |   |
| Total      current provision            |   |   |   |   |   |   | (33.4  | )      |   |   |   |   |   |   | 60.5 |   |   |   |   |   |   |   | 45.5 |   |
|                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      provision                 |   |   |   |   |   |   | 103.1  |   |   |   |   |   |   |   | 13.8 |   |   |   |   |   |   |   | 22.5 |   |
| Unrecognized      tax benefits          |   |   |   |   |   |   | (0.3   | )      |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (1.0 | ) |
| Interest                                |   |   |   |   |   |   | (0.5   | )      |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 0.8 |   |
| Investment tax      credit - net        |   |   |   |   |   |   | (0.9   | )      |   |   |   |   |   |   | (1.2 | ) |   |   |   |   |   |   | (1.0 | ) |
| Total      provision for income taxes   |   |   |   |   |   | $      | 68.0   |   |   |   |   |   |   | $ | 73.1 |   |   |   |   |   |   | $ | 66.8 |   |

----

| (Millions)                                                               |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |   |   |   |   |   |
| Balance      at January 1                                           |   | $      | 0.6    |   |   | $      | 0.8    |   |   | $ | 3.5 |   |
|   Increase      related to tax positions taken in prior years  |   |   | 9.0    |   |   |   | 0.2    |   |   |   | 0.2 |   |
|   Decrease      related to tax positions taken in prior years  |   |   | -      |   |   |   | (0.6   | )      |   |   | (0.4 | ) |
|   Increase      related to tax positions taken in current year |   |   | -      |   |   |   | -      |   |   |   | 0.2 |   |
|   Increase      related to settlements                         |   |   | -      |   |   |   | 0.2    |   |   |   | - |   |
|   Decrease      related to settlements                         |   |   | (0.3   | )      |   |   | -      |   |   |   | (2.7 | ) |
| Balance      at December 31                                         |   | $      | 9.3    |   |   | $      | 0.6    |   |   | $ | 0.8 |   |

| ● | Wisconsin      Department of Revenue – for the 2001 through 2006 tax    years. |
|---------|--------------------------------------------------------------------------------------|

| ● | IRS – for the      2006 and 2007 tax years. |
|---------|---------------------------------------------------|

| ● | WPS's      electric utility segment has obligations related to coal supply and      transportation that extend through 2016 and total $350.7 million,      obligations of $1,162.6 million for either capacity or energy related      to purchased power that extend through 2027, and obligations for other      commodities totaling $13.5 million, which extend through      2013. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ● | WPS's natural      gas utility segment has obligations related to natural gas supply and      transportation contracts totaling $433.0 million, some of which      extend through 2024.                  |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | WPS also has      commitments in the form of purchase orders issued to various vendors,      which totaled $215.1 million and relate to normal business      operations, including constructionprojects. |

----

| ● | shut down any      unit found to be operating in non-compliance, |
|---------|------------------------------------------------------------------|
| ● | install      additional pollution control equipment,             |
| ● | pay a fine,      and/or                                          |
| ● | conduct a      supplemental environmental project.               |

----

----

----

----

|                               |   |                                                           |   |   | Expiration                |   |
|------------------------------------|--------|----------------------------------------------------------------|--------|--------|---------------------------|--------|
| (Millions)                         |   | Total      AmountsCommitted      atDecember 31,      2009 |   |   | Less      Than1      Year |   |   | Over      1 Year |   |
| Standby      letters of credit (1) |   | $                                                              | 3.3    |   |                      | $      | 3.2 |   |   | $ | 0.1 |   |
| Other      guarantee (2)           |   |                                                           | 0.5    |   |                      |   | - |   |   |   | 0.5 |   |
| Total      guarantees              |   | $                                                              | 3.8    |   |                      | $      | 3.2 |   |   | $ | 0.6 |   |

| (1) | At WPS's request, financial      institutions have issued standby letters of credit for the benefit of      third parties that have extended credit to WPS.  These amounts      are not reflected on the Consolidated Balance    Sheets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Issued for workers compensation      coverage in Michigan.  This amount is not reflected on the      Consolidated Balance Sheets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Closure of      the defined benefit pension plans to non-union new hires, effective      January 1, 2008;                                                                                                                                                        |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | A freeze in      defined benefit pension service accruals for non-union employees,      effective January 1, 2013;                                                                                                                                               |
| ● | A freeze in      compensation amounts used for determining defined benefit pension amounts      for non-union employees, effective January 1,2018;                                                                                                               |
| ● | Revised      eligibility requirements for retiree medical benefits for employees hired      on or after January 1, 2008, and the introduction of an annual      premium reduction credit for employees eligible to retire after      December 31, 2012; and |
| ● | Closure of      the retiree dental and life benefit programs to all new hires, effective      January 1, 2008, and elimination of these benefits for any existing      employees who are not eligible to retire before December 31,      2012.              |

----

|                                               |   | Pension    Benefits  |   | Other  Benefits  |
|----------------------------------------------------|--------|---------------------------|--------|-----------------------|
| (Millions)                                         |   | 2009                 |   | 2008             |   | 2009  |   | 2008  |
| Reconciliation      of benefit obligation          |   |                      |   |                  |   |   |   |   |
| Obligation at      January 1                  | $      | 598.7                     | $      | 747.0                 | $ | 276.1 | $ | 250.4 |
| Service      cost                                  |   | 11.5                      |   | 11.6                  |   | 5.7 |   | 6.2 |
| Interest      cost                                 |   | 38.8                      |   | 35.5                  |   | 14.1 |   | 16.6 |
| Plan      amendments                               |   | 3.0                       |   | -                     |   | - |   | - |
| Plan      curtailment                              |   | 0.2                       |   | -                     |   | - |   | - |
| Transfer to      affiliates                        |   | (3.6                      |   | (186.4                |   | (55.8 |   | - |
| Actuarial      (gain) loss, net                    |   | (1.9                      |   | 24.0                  |   | 12.6 |   | 1.3 |
| Benefit      payments                              |   | (24.1                     |   | (33.0                 |   | (9.8 |   | (11.9 |
| Federal      subsidy on benefits paid              |   | -                         |   | -                     |   | 0.7 |   | 0.8 |
| Other                                              |   | -                         |   | -                     |   | - |   | 12.7 |
| Obligation at      December 31                | $      | 622.6                     | $      | 598.7                 | $ | 243.6 | $ | 276.1 |
|                                               |   |                      |   |                  |   |   |   |   |
| Reconciliation      of fair value of plan assets   |   |                      |   |                  |   |   |   |   |
| Fair value of      plan assets at January 1   | $      | 379.8                     | $      | 704.5                 | $ | 175.4 | $ | 223.8 |
| Actual return      on plan assets                  |   | 82.1                      |   | (136.0                |   | 24.9 |   | (50.2 |
| Employer      contributions                        |   | 1.3                       |   | 15.6                  |   | 9.1 |   | 7.9 |
| Benefit      payments                              |   | (24.1                     |   | (33.0                 |   | (9.8 |   | (11.9 |
| Transfer to      affiliates                        |   | (3.6                      |   | (171.3                |   | (33.9 |   | - |
| Other                                              |   | -                         |   | -                     |   | - |   | 5.8 |
| Fair value of      plan assets at December 31 | $      | 435.5                     | $      | 379.8                 | $ | 165.7 | $ | 175.4 |

| (1) | In connection      with the reduction in workforce discussed in Note 3, "Restructuring Expense,"      a curtailment loss was recognized.  WPS's portion of the      curtailment expense was notsignificant. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The transfer      of pension plan obligations and assets to affiliates occurred in      connection with the change in plan sponsor from WPS to IBS.  The      amounts transferred in the table above relate to the participation, prior      to December 31, 2008, of Integrys Energy Group and certain      subsidiaries other than WPS, in the WPS pension  plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The transfer      of other benefit plan obligations and assets to affiliates occurred in      connection with an affiliate agreement whereby each participating      affiliate in the WPS sponsored other postretirement plans is responsible      for its share of plan obligations and is entitled to its share of plan      assets.  The amounts transferred in the table above relate to      the participation, prior to December 31, 2009, of Integrys Energy      Group and certain subsidiaries other than WPS, in the WPS other      postretirement plans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                        |   | Pension Benefits |   |   | Other Benefits |   |
|-----------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)                  |   | 2009             |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
| Current      liabilities    |   | $                | 6.2    |   |           | $      | 3.8 |   |   | $ | 0.2 |   |   | $ | - |   |
| Noncurrent      liabilities |   |             | 180.9  |   |           |   | 215.1 |   |   |   | 77.7 |   |   |   | 100.7 |   |
| Total      liabilities      |   | $                | 187.1  |   |           | $      | 218.9 |   |   | $ | 77.9 |   |   | $ | 100.7 |   |

|                                |   | December 31 |   |
|-------------------------------------|--------|------------------|--------|
| (Millions)                          |   | 2009             |   |   | 2008 |   |
| Projected      benefit obligation   |   | $                | 622.6  |   |   | $ | 598.7 |   |
| Accumulated      benefit obligation |   |             | 545.0  |   |   |   | 555.1 |   |
| Fair value of      plan assets      |   |             | 435.5  |   |   |   | 379.8 |   |

|                             |   | Pension Benefits |   |   | Other Benefits |   |
|----------------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)                       |   | 2009             |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
| Net      regulatory assets       |   |             |   |   |           |   |   |   |   |   |   |   |
| Net actuarial      loss          |   | $                | 131.3  |   |           | $      | 183.8 |   |   | $ | 48.6 |   |   | $ | 47.2 |   |
| Prior service      cost (credit) |   |             | 20.1   |   |           |   | 21.7 |   |   |   | (24.4 | ) |   |   | (27.9 | ) |
| Transition      obligation       |   |             | -      |   |           |   | - |   |   |   | 0.7 |   |   |   | 0.9 |   |
| Regulatory      deferral *       |   |             | 4.5    |   |           |   | - |   |   |   | (1.3 | ) |   |   | - |   |
| Total                            |   | $                | 155.9  |   |           | $      | 205.5 |   |   | $ | 23.6 |   |   | $ | 20.2 |   |

| * | The PSCW      authorized recovery for net increased 2009 pension and other      postretirement benefit costs related to plan asset losses that occurred in      2008.  Amortization and recovery of these deferred costs will      occur in 2010. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Pension Benefits |   |   | Other Benefits |   |
|--------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)                                       |   | 2009             |   |   | 2008           |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Net      periodic benefit cost                   |   |             |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                |   | $                | 10.3   |   |           | $      | 10.7 |   |   | $ | 18.0 |   |   | $ | 5.7 |   |   | $ | 5.5 |   |   | $ | 6.1 |   |
| Interest      cost                               |   |             | 38.0   |   |           |   | 35.0 |   |   |   | 34.4 |   |   |   | 14.1 |   |   |   | 13.2 |   |   |   | 13.2 |   |
| Expected      return on plan assets              |   |             | (39.4  | )      |           |   | (44.4 | ) |   |   | (40.2 | ) |   |   | (13.9 | ) |   |   | (14.3 | ) |   |   | (13.2 | ) |
| Amortization      of transition obligation       |   |             | -      |   |           |   | - |   |   |   | - |   |   |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.3 |   |
| Amortization      of prior service cost (credit) |   |             | 4.5    |   |           |   | 4.6 |   |   |   | 4.6 |   |   |   | (3.5 | ) |   |   | (3.5 | ) |   |   | (2.3 | ) |
| Amortization      of net actuarial loss (gain)   |   |             | 1.1    |   |           |   | 0.4 |   |   |   | 3.0 |   |   |   | 0.1 |   |   |   | (0.6 | ) |   |   | 0.8 |   |
| Curtailment      gain                            |   |             | -      |   |           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.1 | ) |
| Regulatory      deferral *                       |   |             | (4.5   | )      |           |   | - |   |   |   | - |   |   |   | 1.3 |   |   |   | - |   |   |   | - |   |
| Net periodic      benefit cost                   |   | $                | 10.0   |   |           | $      | 6.3 |   |   | $ | 19.8 |   |   | $ | 4.0 |   |   | $ | 0.5 |   |   | $ | 4.8 |   |

| * | The PSCW      authorized recovery for net increased 2009 pension and other      postretirement benefit costs related to plan asset losses that occurred in      2008.  Amortization and recovery of these deferred costs will      occur in 2010. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | Pension Benefits |   |   | Other Benefits |   |
|-----------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
|                                                |   | 2009             |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
| Discount      rate                                  |   |             | 6.15   | %      |           |   | 6.45 | % |   |   | 6.05 | % |   |   | 6.50 | % |
| Rate of      compensation increase                  |   |             | 4.27   | %      |           |   | 4.27 | % |   |   | N/A |   |   |   | N/A |   |
| Assumed      medical cost trend rate (under age 65) |   |             | N/A    |   |           |   | N/A |   |   |   | 8.0 | % |   |   | 9.0 | % |
| Ultimate      trend rate                            |   |             | N/A    |   |           |   | N/A |   |   |   | 5.0 | % |   |   | 5.0 | % |
| Ultimate      trend rate reached in                 |   |             | N/A    |   |           |   | N/A |   |   | 2013 |   |   | 2013 |   |
| Assumed      medical cost trend rate (over age 65)  |   |             | N/A    |   |           |   | N/A |   |   |   | 8.5 | % |   |   | 9.5 | % |
| Ultimate      trend rate                            |   |             | N/A    |   |           |   | N/A |   |   |   | 5.5 | % |   |   | 5.5 | % |
| Ultimate      trend rate reached in                 |   |             | N/A    |   |           |   | N/A |   |   | 2013 |   |   | 2013 |   |
| Assumed      dental cost trend rate                 |   |             | N/A    |   |           |   | N/A |   |   |   | 5.0 | % |   |   | 5.0 | % |

|                               |   | Pension Benefits |   |
|------------------------------------|--------|------------------|--------|
|                               |   | 2009             |   |   | 2008 |   |   | 2007 |   |
| Discount      rate                 |   |             | 6.45   | % |   |   | 6.40 | % |   |   | 5.87 | % |
| Expected      return on assets     |   |             | 8.50   | % |   |   | 8.50 | % |   |   | 8.50 | % |
| Rate of      compensation increase |   |             | 4.27   | % |   |   | 4.27 | % |   |   | 5.50 | % |

|                                                |   | Other Benefits |   |
|-----------------------------------------------------|--------|----------------|--------|
|                                                |   | 2009           |   |   | 2008 |   |   | 2007 |   |
| Discount      rate                                  |   |           | 6.50   | % |   |   | 6.50 | % |   |   | 5.87 | % |
| Expected      return on assets                      |   |           | 8.50   | % |   |   | 8.50 | % |   |   | 8.50 | % |
| Assumed      medical cost trend rate (under age 65) |   |           | 9.0    | % |   |   | 10.0 | % |   |   | 8.0 | % |
| Ultimate      trend rate                            |   |           | 5.0    | % |   |   | 5.0 | % |   |   | 5.0 | % |
| Ultimate      trend rate reached in                 |   | 2013           |   |   | 2013 |   |   | 2010 |   |
| Assumed      medical cost trend rate (over age 65)  |   |           | 9.5    | % |   |   | 10.5 | % |   |   | 10.0 | % |
| Ultimate      trend rate                            |   |           | 5.5    | % |   |   | 5.5 | % |   |   | 6.5 | % |
| Ultimate      trend rate reached in                 |   | 2013           |   |   | 2013 |   |   | 2011 |   |
| Assumed      dental cost trend rate                 |   |           | 5.0    | % |   |   | 5.0 | % |   |   | 5.0 | % |

|                                                                                                                      |   | One-Percentage-Point |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
| (Millions)                                                                                                                |   | Increase             |   |   | Decrease |   |
| Effect on      total of service and interest cost components of net periodic      postretirement health care benefit cost |   | $                    | 3.4    |   |   | $ | (2.7 | ) |
| Effect on the      health care component of theaccumulated      postretirement benefit obligation                         |   |                 | 35.1   |   |   |   | (28.6 | ) |

----

|                                                                                                 |   | Pension      Plan Assets |   |   | Other      Benefit Plan Assets |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|--------------------------------|--------|
| (Millions)                                                                                           |   | Level      1             |   |   | Level      2                   |   |   | Level      3 |   |   | Total |   |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Asset      Category                                                                                  |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash      equivalents                                                                       |   | $                        | 1.0    |   |                           | $      | 15.3 |   |   | $ | - |   |   | $ | 16.3 |   |   | $ | - |   |   | $ | 7.8 |   |   | $ | - |   |   | $ | 7.8 |   |
| Equity      securities:                                                                              |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      United      States equity                                              |   |                     | 122.3  |   |                           |   | 76.1 |   |   |   | - |   |   |   | 198.4 |   |   |   | 38.0 |   |   |   | 31.8 |   |   |   | - |   |   |   | 69.8 |   |
|      International      equity                                              |   |                     | 14.5   |   |                           |   | 67.4 |   |   |   | - |   |   |   | 81.9 |   |   |   | - |   |   |   | 21.8 |   |   |   | - |   |   |   | 21.8 |   |
| Fixed income      securities:                                                                        |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      United      States government                                          |   |                     | -      |   |                           |   | 49.7 |   |   |   | - |   |   |   | 49.7 |   |   |   | - |   |   |   | 27.8 |   |   |   | - |   |   |   | 27.8 |   |
|      Foreign      government                                                |   |                     | -      |   |                           |   | 5.7 |   |   |   | 0.2 |   |   |   | 5.9 |   |   |   | - |   |   |   | 1.3 |   |   |   | - |   |   |   | 1.3 |   |
|      Corporate      debt                                                    |   |                     | -      |   |                           |   | 57.1 |   |   |   | 1.3 |   |   |   | 58.4 |   |   |   | - |   |   |   | 27.1 |   |   |   | - |   |   |   | 27.1 |   |
|      Asset-backed      securities                                           |   |                     | -      |   |                           |   | 18.0 |   |   |   | - |   |   |   | 18.0 |   |   |   | - |   |   |   | 7.8 |   |   |   | - |   |   |   | 7.8 |   |
| Real estate      securities                                                                          |   |                     | -      |   |                           |   | - |   |   |   | 11.7 |   |   |   | 11.7 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                                                                |   |                     | -      |   |                           |   | - |   |   |   | 0.5 |   |   |   | 0.5 |   |   |   | - |   |   |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |
|                                                                                                 |   |                     | 137.8  |   |                           |   | 289.3 |   |   |   | 13.7 |   |   |   | 440.8 |   |   |   | 38.0 |   |   |   | 125.6 |   |   |   | - |   |   |   | 163.6 |   |
| 401(h) other      benefit plan assets     invested      as pension assets * |   |                     | (0.6   | )      |                           |   | (1.4 | ) |   |   | (0.1 | ) |   |   | (2.1 | ) |   |   | 0.6 |   |   |   | 1.4 |   |   |   | 0.1 |   |   |   | 2.1 |   |
|      Total                                                                  |   | $                        | 137.2  |   |                           | $      | 287.9 |   |   | $ | 13.6 |   |   | $ | 438.7 |   |   | $ | 38.6 |   |   | $ | 127.0 |   |   | $ | 0.1 |   |   | $ | 165.7 |   |

| * | Pension trust      assets are used to pay other postretirement benefits as allowed under      Internal Revenue Code Section401(h). |
|---|------------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions)                                                                             |   | Foreign      Government Debt |   |   | Corporate      Debt |   |   | Real      Estate Securities |   |   | Other  |   |   | Total  |   |
|----------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|---------------------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
| Beginning      balance at December 31, 2008                                       |   | $                            | 0.4    |   |                | $      | 0.9    |                        |   | $      | 16.7   |   |   | $      | 0.7    |   |   | $ | 18.7 |   |
| Actual return      on plan assets:                                                     |   |                         |   |   |                |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |
|      Relating      to assets still held at the reporting date |   |                         | 0.4    |   |                |   | 0.5    |                        |   |   | (5.6   | )      |   |   | 0.5    |   |   |   | (4.2 | ) |
|      Relating      to assets sold during the period           |   |                         | -      |   |                |   | (0.2   | )                           |   |   | -      |   |   |   | (0.2   | ) |   |   | (0.4 | ) |
| Purchases,      sales, and settlements                                                 |   |                         | -      |   |                |   | 0.3    |                        |   |   | 0.6    |   |   |   | (0.5   | ) |   |   | 0.4 |   |
| Transfers in      and/or out of Level 3                                                |   |                         | (0.6   | )      |                |   | (0.2   | )                           |   |   | -      |   |   |   | -      |   |   |   | (0.8 | ) |
| Ending balance      at December 31, 2009                                          |   | $                            | 0.2    |   |                | $      | 1.3    |                        |   | $      | 11.7   |   |   | $      | 0.5    |   |   | $ | 13.7 |   |

| (Millions) |   | Pension      Benefits |   |   | Other      Benefits |   |   | Federal      Subsidies |   |
|------------|--------|-----------------------|--------|--------|---------------------|--------|--------|------------------------|--------|
| 2010       |   | $                     | 41.7   |   |                | $      | 12.7   |                   |   | $ | (0.8 | ) |
| 2011       |   |                  | 39.2   |   |                |   | 13.5   |                   |   |   | (0.8 | ) |
| 2012       |   |                  | 42.0   |   |                |   | 14.1   |                   |   |   | (0.9 | ) |
| 2013       |   |                  | 43.6   |   |                |   | 14.5   |                   |   |   | (0.9 | ) |
| 2014       |   |                  | 45.4   |   |                |   | 15.1   |                   |   |   | (1.0 | ) |
| 2015-2019  |   |                  | 260.5  |   |                |   | 88.9   |                   |   |   | (5.4 | ) |

----

| (Millions,      except share amounts) | 2009   |   |                    | 2008    |    |
|---------------------------------------|--------|--------|-------------------------|---------|---------|
| Series                                |   |   | Shares      Outstanding |    |    | Carrying      Value |   |   | Shares      Outstanding |   |   | Carrying      Value |   |
|                                  | 5.00   | %      |                    |    | 131,916 |   |   | $ | 13.2 |   |   |   | 131,916 |   |   | $ | 13.2 |   |
|                                  | 5.04   | %      |                    |    | 29,983  |   |   |   | 3.0 |   |   |   | 29,983 |   |   |   | 3.0 |   |
|                                  | 5.08   | %      |                    |    | 49,983  |   |   |   | 5.0 |   |   |   | 49,983 |   |   |   | 5.0 |   |
|                                  | 6.76   | %      |                    |    | 150,000 |   |   |   | 15.0 |   |   |   | 150,000 |   |   |   | 15.0 |   |
|                                  | 6.88   | %      |                    |    | 150,000 |   |   |   | 15.0 |   |   |   | 150,000 |   |   |   | 15.0 |   |
| Total                                 |   |   |                    | 511,882 |    |   | $ | 51.2 |   |   |   | 511,882 |   |   | $ | 51.2 |   |

----

|                             |   | December 31,      2009 |   |
|----------------------------------|--------|-----------------------------|--------|
| (Millions)                       |   | Level 1                |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Risk      management assets      |   | $                           | 0.7    |   |   | $ | - |   |   | $ | 4.3 |   |   | $ | 5.0 |   |
| Risk      management liabilities |   |                        | 1.3    |   |   |   | - |   |   |   | 1.2 |   |   |   | 2.5 |   |

|                             |   | December 31,      2008 |   |
|----------------------------------|--------|-----------------------------|--------|
| (Millions)                       |   | Level 1                |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Risk      management assets      |   | $                           | 0.4    |   |   | $ | 0.1 |   |   | $ | 6.8 |   |   | $ | 7.3 |   |
| Risk      management liabilities |   |                        | 8.8    |   |   |   | 0.1 |   |   |   | 4.1 |   |   |   | 13.0 |   |

----

|                                                                                                           |   | Year      Ended December 31 |   |
|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
| (Millions)                                                                                                     |   | 2009                             |   |   | 2008 |   |
| Balance at      beginning of period                                                                            |   | $                                | 2.7    |   |   | $ | 8.6 |   |
| Net realized      (loss) gain included in earnings                                                             |   |                             | (2.9   | ) |   |   | 9.2 |   |
| Net      unrealized gain (loss) recorded as regulatory     assets      or liabilities |   |                             | 2.0    |   |   |   | (8.2 | ) |
| Net purchases      and settlements                                                                             |   |                             | 1.3    |   |   |   | (6.9 | ) |
| Balance      at end of period                                                                                  |   | $                                | 3.1    |   |   | $ | 2.7 |   |

|                 |   | 2009                 |   |   | 2008      |   |
|----------------------|--------|----------------------|--------|--------|-----------|--------|
| (Millions)           |   | Carrying Amount |   |   | FairValue |   |   | Carrying Amount |   |   | FairValue |   |
| Long-term      debt  |   | $                    | 870.9  |   |      | $      | 909.9 |   |   | $ | 870.8 |   |   | $ | 881.2 |   |
| Preferred      stock |   |                 | 51.2   |   |      |   | 44.4 |   |   |   | 51.2 |   |   |   | 46.1 |   |

----

| (Millions)                                       |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Equity      earnings on investments              |   | $      | 11.0   |   |   | $      | 12.0   |   |   | $ | 11.0 |   |
| Equity      AFUDC                                |   |   | 5.1    |   |   |   | 5.2    |   |   |   | 0.9 |   |
| Weston 4      ATC interconnection agreement |   |   | -      |   |   |   | 2.5    |   |   |   | 3.9 |   |
| (Loss) gain      on sale of property             |   |   | (0.1   | )      |   |   | 1.3    |   |   |   | 0.1 |   |
| Other                                            |   |   | 0.8    |   |   |   | 0.6    |   |   |   | 1.7 |   |
| Total      miscellaneous income                  |   | $      | 16.8   |   |   | $      | 21.6   |   |   | $ | 17.6 |   |

----

----

|                                             |   | Regulated      Utilities |    |   |                    |   |   |         |   |   |    |   |
|--------------------------------------------------|--------|--------------------------|---------|--------|-------------------------|--------|--------|--------------|--------|--------|---------|--------|
| 2009      (Millions)                             |   | ElectricUtility          |    |   | Natural      GasUtility |   |   | TotalUtility |   |   | Other   |   |   | Reconciling      Eliminations |   |   | WPSConsolidated |   |
|                                             |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Income      Statement                            |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Operating revenues                               |   | $                        | 1,188.2 |   |                    | $      | 395.6  |         |   | $      | 1,583.8 |   |   | $ | 1.4 |   |   | $ | (1.4 | ) |   | $ | 1,583.8 |   |
| Depreciation and amortization      expense       |   |                     | 84.1    |   |                    |   | 23.0   |         |   |   | 107.1   |   |   |   | 0.5 |   |   |   | (0.5 | ) |   |   | 107.1 |   |
| Miscellaneous income                             |   |                     | 4.5     |   |                    |   | 0.6    |         |   |   | 5.1     |   |   |   | 11.711.3 |   |   |   | - |   |   |   | 16.8 |   |
| Interest expense                                 |   |                     | 38.6    |   |                    |   | 10.5   |         |   |   | 49.1    |   |   |   | 4.9 |   |   |   | - |   |   |   | 54.0 |   |
| Provision for income    taxes                    |   |                     | 50.2    |   |                    |   | 15.8   |         |   |   | 66.0    |   |   |   | 2.0 |   |   |   | - |   |   |   | 68.0 |   |
| Preferred stock dividend      requirements       |   |                     | 2.5     |   |                    |   | 0.6    |         |   |   | 3.1     |   |   |   | - |   |   |   | - |   |   |   | 3.1 |   |
| Net income attributed to common      shareholder |   |                     | 88.0    |   |                    |   | 24.1   |         |   |   | 112.1   |   |   |   | 5.2 |   |   |   | - |   |   |   | 117.3 |   |
| Total      assets                                |   |                     | 2,602.5 |   |                    |   | 606.2  |         |   |   | 3,208.7 |   |   |   | 102.6 |   |   |   | - |   |   |   | 3,311.3 |   |
| Cash      expenditures for long-lived assets     |   |                     | 235.2   |   |                    |   | 24.3   |         |   |   | 259.5   |   |   |   | - |   |   |   | - |   |   |   | 259.5 |   |

|                                             |   | Regulated      Utilities |    |   |                    |   |   |         |   |   |    |   |
|--------------------------------------------------|--------|--------------------------|---------|--------|-------------------------|--------|--------|--------------|--------|--------|---------|--------|
| 2008      (Millions)                             |   | ElectricUtility          |    |   | Natural      GasUtility |   |   | TotalUtility |   |   | Other   |   |   | Reconciling      Eliminations |   |   | WPSConsolidated |   |
|                                             |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Income      Statement                            |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Operating revenues                               |   | $                        | 1,208.9 |   |                    | $      | 539.4  |         |   | $      | 1,748.3 |   |   | $ | 1.5 |   |   | $ | (1.4 | ) |   | $ | 1,748.4 |   |
| Depreciation and amortization      expense       |   |                     | 78.5    |   |                    |   | 20.9   |         |   |   | 99.4    |   |   |   | 0.6 |   |   |   | (0.5 | ) |   |   | 99.5 |   |
| Miscellaneous income                             |   |                     | 5.8     |   |                    |   | 2.4    |         |   |   | 8.2     |   |   |   | 13.4 |   |   |   | - |   |   |   | 21.6 |   |
| Interest expense                                 |   |                     | 33.4    |   |                    |   | 9.0    |         |   |   | 42.4    |   |   |   | 1.6 |   |   |   | - |   |   |   | 44.0 |   |
| Provision for income    taxes                    |   |                     | 45.6    |   |                    |   | 23.6   |         |   |   | 69.2    |   |   |   | 3.9 |   |   |   | - |   |   |   | 73.1 |   |
| Preferred stock dividend      requirements       |   |                     | 2.1     |   |                    |   | 1.0    |         |   |   | 3.1     |   |   |   | - |   |   |   | - |   |   |   | 3.1 |   |
| Net income attributed to common      shareholder |   |                     | 88.6    |   |                    |   | 32.0   |         |   |   | 120.6   |   |   |   | 8.6 |   |   |   | - |   |   |   | 129.2 |   |
| Total      assets                                |   |                     | 2,527.0 |   |                    |   | 686.8  |         |   |   | 3,213.8 |   |   |   | 99.9 |   |   |   | - |   |   |   | 3,313.7 |   |
| Cash      expenditures for long-lived assets     |   |                     | 190.0   |   |                    |   | 85.4   |         |   |   | 275.4   |   |   |   | - |   |   |   | - |   |   |   | 275.4 |   |

|                                             |   | Regulated      Utilities |    |   |                    |   |   |         |   |   |    |   |
|--------------------------------------------------|--------|--------------------------|---------|--------|-------------------------|--------|--------|--------------|--------|--------|---------|--------|
| 2007      (Millions)                             |   | ElectricUtility          |    |   | Natural      GasUtility |   |   | TotalUtility |   |   | Other   |   |   | Reconciling      Eliminations |   |   | WPSConsolidated |   |
|                                             |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Income      Statement                            |   |                     |    |   |                    |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Operating revenues                               |   | $                        | 1,125.2 |   |                    | $      | 471.0  |         |   | $      | 1,596.2 |   |   | $ | 1.3 |   |   | $ | (1.4 | ) |   | $ | 1,596.1 |   |
| Depreciation and amortization      expense       |   |                     | 74.4    |   |                    |   | 22.1   |         |   |   | 96.5    |   |   |   | 0.4 |   |   |   | (0.5 | ) |   |   | 96.4 |   |
| Miscellaneous income                             |   |                     | 6.2     |   |                    |   | 0.4    |         |   |   | 6.6     |   |   |   | 11.0 |   |   |   | - |   |   |   | 17.6 |   |
| Interest expense                                 |   |                     | 29.5    |   |                    |   | 11.1   |         |   |   | 40.6    |   |   |   | 2.9 |   |   |   | - |   |   |   | 43.5 |   |
| Provision for income    taxes                    |   |                     | 48.2    |   |                    |   | 16.7   |         |   |   | 64.9    |   |   |   | 1.9 |   |   |   | - |   |   |   | 66.8 |   |
| Preferred stock dividend      requirements       |   |                     | 2.2     |   |                    |   | 0.9    |         |   |   | 3.1     |   |   |   | - |   |   |   | - |   |   |   | 3.1 |   |
| Net income attributed to common      shareholder |   |                     | 80.1    |   |                    |   | 23.1   |         |   |   | 103.2   |   |   |   | 7.0 |   |   |   | - |   |   |   | 110.2 |   |
| Total      assets                                |   |                     | 2,279.9 |   |                    |   | 623.4  |         |   |   | 2,903.3 |   |   |   | 114.3 |   |   |   | - |   |   |   | 3,017.6 |   |
| Cash      expenditures for long-lived assets     |   |                     | 191.2   |   |                    |   | 29.9   |         |   |   | 221.1   |   |   |   | - |   |   |   | - |   |   |   | 221.1 |   |

----

| (Millions)                                                    |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |
| Notes payable      (1)                                        |   |   |   |   |   |   |
|     Integrys      Energy Group            |   | $      | 9.3    |   |   | $      | 9.9 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Benefit costs      (2)                                        |   |   |   |   |   |   |   |   |
|     Receivables      from related parties |   |   | 10.9   |   |   |   | 28.4 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Liability      related to income tax allocation               |   |   |   |   |   |   |   |   |
|     Integrys      Energy Group            |   |   | 10.5   |   |   |   | 12.1 |   |

----

| (Millions)                                                                                                                                                                |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Electric      transactions                                                                                                                                                |   |   |   |   |   |   |   |   |   |
|     Sales      to Upper Peninsula Power Company                                                                                                       |   | $      | 42.5   |   |   | $      | 43.9   |   |   | $ | 43.0 |   |
|     Purchases      from Upper Peninsula Power Company                                                                                                 |   |   | 0.2    |   |   |   | -      |   |   |   | - |   |
|                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas      transactions                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|     Sales      to Integrys Energy Services                                                                                                            |   |   | 0.5    |   |   |   | 0.8    |   |   |   | 5.2 |   |
|     Purchases      from Integrys Energy Services                                                                                                      |   |   | 1.5    |   |   |   | 8.7    |   |   |   | 3.2 |   |
|                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense (1)                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|     Integrys      Energy Group                                                                                                                        |   |   | 0.8    |   |   |   | 0.8    |   |   |   | 0.9 |   |
|                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Transactions      with equity method investments                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|     Charges      from ATC for network transmission services                                                                                           |   |   | 84.5   |   |   |   | 82.2   |   |   |   | 73.3 |   |
|      Net      amounts received from (advanced to) ATC for         transmission      interconnection |   |   | -      |   |   |   | 82.3   |   |   |   | (23.9 | ) |
|     Charges      to ATC for services and construction                                                                                                 |   |   | 7.2    |   |   |   | 10.6   |   |   |   | 96.1 |   |
|     Net      proceeds from WRPC sales of energy to MISO                                                                                               |   |   | 2.6    |   |   |   | 5.8    |   |   |   | 6.0 |   |
|     Purchases      of energy from WRPC                                                                                                                |   |   | 4.6    |   |   |   | 4.7    |   |   |   | 4.7 |   |
|     Revenues      from services provided to WRPC                                                                                                      |   |   | 0.6    |   |   |   | 0.8    |   |   |   | 1.0 |   |
|     Income      from WPS Investments, LLC (3)                                                                                                         |   |   | 10.0   |   |   |   | 9.8    |   |   |   | 8.7 |   |

| (1) | WPS Leasing      is a consolidated subsidiary of WPS with a note payable to WPS's      parent company, Integrys EnergyGroup. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

| (2) | WPS serves as      plan sponsor and administrator for certain other postretirement benefit      plans.  The net periodic benefit cost associated with the plans      and the portions of the funded status not yet recognized in income are      allocated among Integrys Energy Group's subsidiaries.  Prior to      2009, the liabilities for certain other postretirement benefit plans were      recorded on WPS's Consolidated BalanceSheets. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | WPS Investments,      LLC is a consolidated subsidiary of Integrys Energy Group that is jointly      owned by Integrys Energy Group, WPS, and UPPCO.  At      December 31, 2009, WPS had a 12.77% interest in WPS Investments      accounted for under the equity method. WPS's percentage ownership      interests have continued to decrease as additional equity contributions      are made by Integrys Energy Group to WPS  Investments. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Millions)                                       |   | Three      Months Ended |   |
|--------------------------------------------------|--------|-------------------------|--------|
|                                             |   | 2009                    |   |
|                                             |   | March                   |   |   | June |   |   | September |   |   | December |   |   | Total |   |
|                                             |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                          |   | $                       | 488.2  |   |   | $ | 347.6 |   |   | $ | 351.2 |   |   | $ | 396.8 |   |   | $ | 1,583.8 |   |
| Operating      income                            |   |                    | 87.4   |   |   |   | 46.4 |   |   |   | 62.1 |   |   |   | 29.7 |   |   |   | 225.6 |   |
| Net income      attributed to common shareholder |   |                    | 49.3   |   |   |   | 24.7 |   |   |   | 33.6 |   |   |   | 9.7 |   |   |   | 117.3 |   |
|                                             |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | 2008                    |   |
|                                             |   | March                   |   |   | June |   |   | September |   |   | December |   |   | Total |   |
|                                             |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                          |   | $                       | 515.7  |   |   | $ | 386.9 |   |   | $ | 409.2 |   |   | $ | 436.6 |   |   | $ | 1,748.4 |   |
| Operating      income                            |   |                    | 53.6   |   |   |   | 40.4 |   |   |   | 85.2 |   |   |   | 48.6 |   |   |   | 227.8 |   |
| Net income      attributed to common shareholder |   |                    | 30.1   |   |   |   | 21.3 |   |   |   | 50.6 |   |   |   | 27.2 |   |   |   | 129.2 |   |

----

----

ITEM 9

ITEM 9A

ITEM 9B

----

| ITEM 10. | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE |
|----------|------------------------------------------------------------|

| Name      and Age      (1) |   | Position      and BusinessExperience      During Past Five Years                                                                                                                                                        | EffectiveDate  |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                       |   |                                                                                                                                                                                                                    |           |
| Larry L.      Weyers       | 64     | Executive      Chairman of Integrys Energy Group                                                                                                                                                                        | 03-16-09       |
|                       |   | Executive      Chairman of Integrys Energy Group and Chairman and Director    of      WPS                                                                                                           | 01-01-09       |
|                       |   | Chairman,      President and Chief Executive Officer of Integrys EnergyGroup    (previously      named WPS Resources Corporation) and Chairman and    Director      of WPS | 05-15-08       |
|                       |   | President and      Chief Executive Officer of Integrys Energy Group and    Chairman      and Director of WPS                                                                                        | 02-21-07       |
|                       |   | Chairman,      President and Chief Executive Officer of Integrys EnergyGroup    and      Chairman and Chief Executive Officer and Director of WPS                                                   | 08-15-04       |
|                       |   |                                                                                                                                                                                                                    |           |
| Charles A.      Schrock    | 56     | President and      Chief Executive Officer of Integrys Energy Group and    Chairman      and Director of WPS                                                                                        | 03-16-09       |
|                       |   | President and      Chief Executive Officer of Integrys Energy Group and    Director      of WPS                                                                                                     | 01-01-09       |
|                       |   | President,      Chief Executive Officer and Director of WPS                                                                                                                                                             | 05-31-08       |
|                       |   | President and      Director of WPS                                                                                                                                                                                      | 02-21-07       |
|                       |   | President and      Chief Operating Officer – Generation                                                                                                                                                           | 08-15-04       |
|                       |   |                                                                                                                                                                                                                    |           |
| Phillip M.      Mikulsky   | 61     | Executive Vice      President – Corporate Development and Shared    Services      at Integrys Energy Group and Director of WPS                                                                | 09-21-08       |
|                       |   | Executive Vice      President and Chief Development Officer at Integrys    Energy      Group and Director of WPS                                                                                    | 02-21-07       |
|                       |   | Executive Vice      President – Development at Integrys Energy Group                                                                                                                                              | 09-12-04       |
|                       |   |                                                                                                                                                                                                                    |           |
| Lawrence T.      Borgard   | 48     | President and      Chief Operating Officer – Utilities of Integrys Energy Group and President      and Chief Executive Officer and Director of WPS                                                                | 04-05-09       |
|                       |   | President and      Chief Operating Officer – Integrys Gas Group (2)      and    Director      of WPS                                                                                          | 02-21-07       |
|                       |   | President and      Chief Operating Officer – Energy Delivery                                                                                                                                                      | 08-15-04       |
|                       |   |                                                                                                                                                                                                                    |           |
| Joseph P.      O'Leary     | 55     | Senior Vice      President and Chief Financial Officer of Integrys Energy    Group      and WPS and Director of WPS                                                                                 |  02-21-07 |
|                       |   | Senior Vice      President and Chief Financial Officer of Integrys Energy Group and      WPS                                                                                                                            |  06-04-01 |
|                       |   |                                                                                                                                                                                                                    |           |
| Thomas P.      Meinz       | 63     | Executive Vice      President and Chief External Affairs Officer and    Director      of WPS                                                                                                        | 05-15-08       |
|                       |   | Executive Vice      President – External Affairs of Integrys Energy Group    and      Director of WPS                                                                                         | 02-21-07       |
|                       |   | Executive Vice      President – Public Affairs                                                                                                                                                                    | 09-12-04       |
|                       |   |                                                                                                                                                                                                                    |           |
| William D.      Laakso (3) | 47     | Vice President      – Human Resources – Integrys Energy Group and Director of    WPS                                                                                                                        | 09-21-08       |   |
|                       |   | Director of      WPS                                                                                                                                                                                                    | 08-25-08       |   |
|                       |   | Interim Vice      President – Human Resources of IBS                                                                                                                                                              | 05-15-08       |   |
|                       |   | Director –      Workforce and Organizational Development of IBS                                                                                                                                                   | 08-12-07       |   |
|                       |   | Director of      Organizational Development of IBS                                                                                                                                                                      | 02-21-07       |   |
|                       |   | Director of      Organizational Development                                                                                                                                                                             | 12-12-05       |   |
|                       |   | Vice President      – Operations/Clinical Director of Employee Resource Center,      Inc.                                                                                                                         | 02-04-02       |   |
|                       |   |                                                                                                                                                                                                                    |           |

----

| Diane L.      Ford      | 56     | Vice President      and Corporate Controller of Integrys Energy Group and    WPS                                   |  02-21-07 |
|-------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                    |   | Vice President      – Controller and Chief Accounting Officer of Integrys Energy    Group      and WPS       |  07-11-99 |
|                    |   |                                                                                                                                   |           |
| Bradley A.      Johnson | 55     | Vice President      and Treasurer of Integrys Energy Group and Treasurer    of      WPS                            |  02-21-07 |
|                    |   | Vice President      and Treasurer of Integrys Energy Group and WPS                                                                     | 07-18-04       |
|                    |   |                                                                                                                                   |           |
| Barth J.      Wolf      | 52     | Vice      President, Chief Legal Officer, and Secretary of Integrys      Energy    Group      and Secretary of WPS |  07-31-07 |
|                    |   | Vice President      – Legal Services and Chief Compliance Officer – IBS                                                    | 02-21-07       |
|                    |   | Secretary and      Manager – Legal Services of Integrys Energy Group and    WPS                              |  09-19-99 |

| (1)    | All ages are      as of January 1, 2010.  None of the executives and/or      directors listed above are related by blood, marriage, or adoption to any      of the other officers listed or to any director of WPS.  Each      officer holds office until his or her successor has been duly elected and      qualified, or until his or her death, resignation, disqualification, or      removal. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (2)    | The Integrys      Gas Group includes PGL, NSG, MERC, and MGU.                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (3)    | Prior to      joining Integrys Energy Group, William D. Laakso’s responsibilities at      Employee Resource Center, Inc. (ERC) included leadership of ERC’s      management team and duties of Clinical Director.  ERC provides      employee assistance programs to over 200 corporate customers in Northeast      Wisconsin and covers 75,000 employees and their  dependents.                       |

ITEM 11.

----

|                         |   | Payout      Levels(as      a percent of adjustedgross      base salary) |   |   | Measurement      Weightings(as      a percent of total payout) |   |
|------------------------------|--------|-------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
| Named      Executive Officer |   | Threshold                                                               |   |   | Target                                                         |   |   | Superior |   |   | NetIncome |   |   | Operational      Measures (2) |   |
| Barth J.      Wolf           |   |                                                                    | 27.5   |   |                                                           |   | 55 |   |   |   | 82.5 |   |   |   | 70 | (1) |   |   | 30 |   |
| Diane L.      Ford           |   |                                                                    | 22.5   |   |                                                           |   | 45 |   |   |   | 67.5 |   |   |   | 70 | (1) |   |   | 30 |   |
| Bradley A.      Johnson      |   |                                                                    | 20.0   |   |                                                           |   | 40 |   |   |   | 60.0 |   |   |   | 70 | (1) |   |   | 30 |   |

----

----

| Named      Executive Officer |   | Annual      Percentage Credit Earned in 2009 |   |   | Accumulated      Total Service Credits Earned as ofDecember 31,      2009 |   |
|------------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
| Barth J.      Wolf           |   |                                         | 15     | %      |                                                                           |   | 316 |   |
| Diane L.      Ford           |   |                                         | 15     | %      |                                                                           |   | 527 |   |
| Bradley A.      Johnson      |   |                                         | 15     | %      |                                                                           |   | 454 |   |

----

| Named      Executive Officer |   | Life      Insurance Coverage ($) |    |
|------------------------------|--------|----------------------------------|---------|
| Barth J.      Wolf           |   |                             | 872,000 |   |
| Diane L.      Ford           |   |                             | 500,000 |   |
| Bradley A.      Johnson      |   |                             | 747,000 |   |

----

| Name      andPrincipal      Position                                                                   | Year         | Salary      ($)(1)    | Bonus($) | Stock      Awards ($)(2)         | Option      Awards ($)(2) | Non-Equity      Incentive Plan Compensa-tion($)(3) | Change      in Pension Value and Nonqualified Deferred Compensa-tion Earnings      ($)(4) | All      Other Compensation($)(5) | Total($)                |
|--------------------------------------------------------------------------------------------------------|--------------|-----------------------|----------|----------------------------------|---------------------------|----------------------------------------------------|-------------------------------------------------------------------------------------------|-----------------------------------|-------------------------|
| (a)                                                                                                    | (b)          | (c)                   | (d)      | (e)                              | (f)                       | (g)                                                | (h)                                                                                       | (i)                               | (j)                     |
|                                                                                                   |         |                  |     |                             |                      |                                               |                                                                                      |                              |                    |
| Barth J.      Wolf   Secretary                                                          | 200920082007 | 301,154290,000233,038 | --1,950  | 193,156179,02537,822             | 58,78566,38123,143        | 165,59592,098171,571                               | 196,953658,57844,886                                                                      | 19,76314,01515,202                | 935,4061,300,097527,612 |
|                                                                                                   |         |                  |     |                             |                      |                                               |                                                                                      |                              |                    |
| Diane L.      Ford   Vice      President and   Corporate      Controller | 200920082007 | 272,834255,000231,288 | --2,100  | 144,243169,275  39,764 | 43,91162,74724,328        | 122,74680,983123,929                               | 57,805273,97474,968                                                                       | 19,24613,34714,714                | 660,785855,326511,091   |
|                                                                                                   |         |                  |     |                             |                      |                                               |                                                                                      |                              |                    |
| Bradley A.      Johnson   Treasurer                                                     | 200920082007 | 256,785240,000220,327 | --1,950  | 126,290148,15839,119             | 38,44654,93623,954        | 102,68967,750104,915                               | 88,912254,34274,088                                                                       | 20,53813,15014,893                | 633,660778,336479,246   |

| (1)   | Amount      reflects 27 pay periods in 2009 and includes amounts deferred into the      Integrys Energy Group Deferred Compensation Plan.  See the      Nonqualified Deferred Compensation Table for 2009 for more      information. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The amounts      shown in columns (e) and (f) reflect the grant date fair value of the      awards computed in accordance with FASB ASC Topic 718 - Stock      Compensation.  For information regarding the assumptions made in      valuing the stock and option awards, see Note 17, “Stock-Based      Compensation.” |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Non-equity      incentive compensation is payable annually in the first quarter of the      next fiscal year following the year in which it was earned, and may be      deferred at the election of the named executive      officer.  Payment is calculated based on the measurement      outcomes and as a percent of adjusted gross earnings from the company for      services performed during the payroll year.  Various      extraordinary payments and the prior year payout are excluded in the      calculation. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      calculation of above-market earnings on nonqualified deferred compensation      is based on the difference between 120% of the applicable federal      long-term rate (AFR) and the rate of return received on Reserve Accounts A      and B.  Provided below are the actual rates of return used in      the calculation:  Note that Reserve Account A was frozen to new      deferrals beginning on January 1, 1996.  Reserve Account B was      frozen to new deferrals beginning on April 1,  2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Time      Period                       |   | AFR      120% |   |   | Res A – Daily |   |   | Res B – Daily |   |
|----------------------------------------|--------|---------------|--------|--------|---------------------|--------|--------|---------------------|--------|
| October 2008 –      March 2009   |   |          | 5.19   | %      |                |   | 8.9302 | %                   |   |   | 6.3427 | % |
| April 2009 –      September 2009 |   |          | 4.42   | %      |                |   | 6.0000 | %                   |   |   | 6.0000 | % |
| October 2009 –      March 2010   |   |          | 4.93   | %      |                |   | 6.0000 | %                   |   |   | 6.0000 | % |

| (5)   | Reflects other      compensation items consisting of life insurance premiums, imputed income      from life insurance benefits and Employee Stock Ownership Plan (ESOP)      matching contributions.  For individual items included in column      (i) that were in excess of $10,000, see the table below reflecting ESOP      matching contributions.  For individual items included in column      (i) that were in excess of $10,000 for Mr. Borgard and Mr. O’Leary,      see the Proxy Statement under the caption "Executive Compensation –      Summary Compensation Table for2009." |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Named      Executive Officer |   | ESOP      ($) |   |
|------------------------------|--------|---------------|--------|
| Barth J.      Wolf           |   |          | 16,203 |   |
| Diane L.      Ford           |   |          | 16,145 |   |
| Bradley A.      Johnson      |   |          | 15,811 |   |

----

| Name                    | Grant      Date | Estimated      Future Payouts Under Non-Equity Incentive Plan AwardsAnnual      Incentive Plan (1) | Estimated      Future Payouts Under Equity Incentive Plan AwardsPerformance      Share Program | All      Other Stock Awards:  Number of Shares of Stock or Units      (#)Restricted      Stock Program | All      Other Option Awards:  Number of Securities Underlying Options      (#)Stock      Option Program | Exercise      or Base Price Option Awards ($/Sh) | Grant      Date Fair Value of Stock and Option Awards($)      (2) |
|-------------------------|-----------------|----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|-------------------------------------------------------------------|
| Threshold      ($)      | Target($)       | Maximum      ($)                                                                                   | Threshold      (#)                                                                             | Target      (#)                                                                                                  | Maximum      (#)                                                                                                   |
| (a)                     | (b)             | (c)                                                                                                | (d)                                                                                            | (e)                                                                                                              | (f)                                                                                                                | (g)                                              | (h)                                                               | (i) | (j) | (k) | (l) |
| Barth J.      Wolf      | 2009            | 79,750                                                                                             | 159,500                                                                                        | 239,250                                                                                                          |                                                                                                               |                                             |                                                              |   |   |   |   |
| 2/19/09                 |            |                                                                                               |                                                                                           | 1,888                                                                                                            | 3,776                                                                                                              | 7,552                                            |                                                              |   |   | 140,127 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             | 1,259                                                             |   |   | 53,029 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             |                                                              | 15,931 | 42.12 | 58,785 |
| Diane L.      Ford      | 2009            | 59,510                                                                                             | 119,019                                                                                        | 178,529                                                                                                          |                                                                                                               |                                             |                                                              |   |   |   |   |
| 2/19/09                 |            |                                                                                               |                                                                                           | 1,410                                                                                                            | 2,820                                                                                                              | 5,640                                            |                                                              |   |   | 104,650 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             | 940                                                               |   |   | 39,593 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             |                                                              | 11,900 | 42.12 | 43,911 |
| Bradley A.      Johnson | 2009            | 49,786                                                                                             | 99,571                                                                                         | 149,357                                                                                                          |                                                                                                               |                                             |                                                              |   |   |   |   |
| 2/19/09                 |            |                                                                                               |                                                                                           | 1,235                                                                                                            | 2,469                                                                                                              | 4,938                                            |                                                              |   |   | 91,625 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             | 823                                                               |   |   | 34,665 |
| 2/12/09                 |            |                                                                                               |                                                                                           |                                                                                                             |                                                                                                               |                                             |                                                              | 10,419 | 42.12 | 38,446 |

| (1)   | Based on 2009      Executive Incentive Plan payout percentages.  For more      information, see the Proxy Statement under the caption "Executive      Compensation – Compensation Discussion and Analysis – Key Components of      the Executive Compensation Program – Short-Term Incentive      Compensation.” |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Performance      shares are valued at target payout using the value derived from a Monte      Carlo simulation.  Restricted stock is valued at $42.12, the      closing stock price on the grant date.  Stock options are valued      at $3.69 on an accounting expense basis based on a proprietary "advance      lattice" option pricing model. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                                    |                                                    Options      Awards      (1)                                                     |                                Stock      Awards      (2)                               |
|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number      of securities underlying unexercised options (#)Exercisable | Number      of securities underlying unexercised options (#)Unexercisable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Equity      incentive plan awards:  Number of securities underlying      unexercised unearned options(#)                                                                                                                                                                                                                                                                                       | Option      exercise price($) | Option      expiration date | Number      of shares or units of stock thathave      not vested (#) | Market      value of shares or units of stock thathave      not vested($) | Equity      incentive plan awards: Number of unearned shares, unitsor      other rights that have not vested (#) (3) | Equity      incentive plan awards:  Market or payout value of unearned      shares, units or other rights that have not vested ($)  (3) |
| (a)                                                                     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (c)                                                                                                                                                                                                                                                                                                                                                                                                      | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
| Barth J.      Wolf                                                      | 2,530                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                                                                                                                                                                                                                                                                                                                                                        | - | 34.09 | 12/13/2011 | 2,153 | 90,404 | 6,471 | 271,717 |
| 4,119                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 37.96 | 12/12/2012 |   |   |   |   |
| 4,463                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 44.73 | 12/10/2013 |   |   |   |   |
| 5,156                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 48.11 | 12/7/2014 |   |   |   |   |
| 6,491                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 54.85 | 12/7/2015 |   |   |   |   |
| 5,088                                                                   | 1,695                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                                                                                                                                                                                                                                                                                                                                                        | 52.73 | 12/7/2016 |   |   |   |   |
| 1,484                                                                   | 1,483                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                                                                                                                                                                                                                                                                                                                                                        | 58.65 | 5/17/2017 |   |   |   |   |
| 3,672                                                                   | 11,014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -                                                                                                                                                                                                                                                                                                                                                                                                        | 48.36 | 2/14/2018 |   |   |   |   |
| Diane L.      Ford                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 15,931                                                                                                                                                                                                                                                                                                                                                                                                   | - | 42.12 | 2/12/2019 |   |   |   |   |
| 6,244                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 34.09 | 12/13/2011 | 1,829 | 76,800 | 5,368 | 225,402 |
| 6,382                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 37.96 | 12/12/2012 |   |   |   |   |
| 6,332                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 44.73 | 12/10/2013 |   |   |   |   |
| 7,433                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 48.11 | 12/7/2014 |   |   |   |   |
| 8,036                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 54.85 | 12/7/2015 |   |   |   |   |
| 6,848                                                                   | 2,282                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                                                                                                                                                                                                                                                                                                                                                        | 52.73 | 12/7/2016 |   |   |   |   |
| Bradley A.      Johnson                                                 | 1,560                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,559                                                                                                                                                                                                                                                                                                                                                                                                    | - | 58.65 | 5/17/2017 |   |   |   |   |
| 3,471                                                                   | 10,411                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -                                                                                                                                                                                                                                                                                                                                                                                                        | 48.36 | 2/14/2018 |   |   |   |   |
| -                                                                       | 11,900                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -                                                                                                                                                                                                                                                                                                                                                                                                        | 42.12 | 2/12/2019 |   |   |   |   |
| 2,449                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 37.96 | 12/12/2012 | 1,607 | 67,478 | 4,699 | 197,311 |
| 4,577                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 44.73 | 12/10/2013 |   |   |   |   |
| 6,071                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 48.11 | 12/7/2014 |   |   |   |   |
| 6,491                                                                   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                                                                                                                                                                                                                                                                                                                                                                                                        | 54.85 | 12/7/2015 |   |   |   |   |
| 5,723                                                                   | 1,907                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | -                                                                                                                                                                                                                                                                                                                                                                                                        | 52.73 | 12/7/2016 |   |   |   |   |

| Grant      Date | Full      Vesting Date | Expiration      Date  |
|-----------------|------------------------|-----------------------|
| 12/13/2001      | 12/13/2005             | 12/13/2011            |
| 12/12/2002      | 12/12/2006             | 12/12/2012            |
| 12/10/2003      | 12/10/2007             | 12/10/2013            |
| 12/08/2004      | 12/08/2008             | 12/08/2014            |
| 12/07/2005      | 12/07/2009             | 12/07/2015            |
| 12/07/2006      | 12/07/2010             | 12/07/2016            |
| 5/17/2007       |   5/17/2011  |   5/17/2017 |
| 2/14/2008       |  2/14/2012        |  2/14/2018       |

| (2)   | Integrys      Energy Group stock price on December 31, 2009 was    $41.99. |
|-----------------|---------------------------------------------------------------------------------|

| (3)   | Subsequent to      December 31, 2009, a payout will occur on performance shares for the      performance period of 2007-2009 due to Total Shareholder Return results      being above threshold requirements.  The number of earned      performance shares attributable to each named executive officer as a      result of the threshold requirements being achieved, along with the      corresponding market value of such shares, is as  follows: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Named      Executive Officer |   | #      EarnedShares |   |   | Market      or payout value ofearned      shares ($) |   |
|------------------------------|--------|---------------------|--------|--------|------------------------------------------------------|--------|
| Barth J.      Wolf           |   |                | 887    |   |                                                 |   | 37,245 |   |
| Diane L.      Ford           |   |                | 1,100  |   |                                                 |   | 46,189 |   |
| Bradley A.      Johnson      |   |                | 969    |   |                                                 |   | 40,688 |   |

----

|                    |   | Option Awards                                  |   |   | Stock Awards (1)                    |   |
|-------------------------|--------|------------------------------------------------|--------|--------|-------------------------------------|--------|
| Name                    |   | Number      of shares acquired on exercise (#) |   |   | Value      realized on exercise ($) |   |   | Number      ofshares      acquired on vesting (#) |   |   | Value      realized on vesting ($) |   |
| (a)                     |   | (b)                                            |   |   | (c)                                 |   |   | (d) |   |   | (e) |   |
| Barth J.      Wolf      |   |                                           | -      |   |                                |   | - |   |   |   | 1,278 |   |   |   | 52,857 |   |
| Diane L.      Ford      |   |                                           | -      |   |                                |   | - |   |   |   | 1,507 |   |   |   | 62,426 |   |
| Bradley A.      Johnson |   |                                           | -      |   |                                |   | - |   |   |   | 1,327 |   |   |   | 54,891 |   |

| (1)   | Payout on      total shareholder return for the performance period ending December 31,      2009, meeting the threshold payout level.  These performance      shares had a performance period of2007-2009. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                    | Plan      Name(1)    | Number      of years of credited service(#)(2) | Present      value of accumulated benefits($)(3) | Payments      during last fiscal year($) |
|-------------------------|----------------------|------------------------------------------------|--------------------------------------------------|------------------------------------------|
| (a)                     | (b)                  | (c)                                            | (d)                                              | (e)                                      |
| Barth J.      Wolf      | Retirement      Plan | 21                                             | 474,385                                          | -                                        |
| Restoration      Plan   | 21                   | 208,282                                        | -                                                |
| SERP                    | 21                   | 715,365                                        | -                                                |
| Total                   |                 | 1,398,032                                      | -                                                |
|                    |                 |                                           |                                             |                                     |
| Diane L.      Ford      | Retirement      Plan | 34                                             | 935,543                                          | -                                        |
| Restoration      Plan   | 34                   | 362,611                                        | -                                                |
| SERP                    | 34                   | 317,317                                        | -                                                |
| Total                   |                 | 1,615,471                                      | -                                                |
|                    |                 |                                           |                                             |                                     |
| Bradley A.      Johnson | Retirement      Plan | 30                                             | 744,883                                          | -                                        |
| Restoration      Plan   | 30                   | 284,140                                        | -                                                |
| SERP                    | 30                   | 403,772                                        | -                                                |
| Total                   |                 | 1,432,795                                      | -                                                |

|  (1) | For a      description of the material terms and conditions of the above named plans,      see the Proxy Statement under the caption "Executive Compensation –      Compensation Discussion and Analysis – Key Components of the Executive      Compensation Program – OtherBenefits." |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Full years of      credited service only.  Actual plan benefits are calculated      taking into account full and fractional years of credited      service. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3)   | Change in      pension value during 2009 and present value of accumulated benefit at      year-end: |
|-----------------|-----------------------------------------------------------------------------------------------------|

|   | Qualified      Retirement Plan |
|--------|--------------------------------|

| Name                    | Executive      Contributions in last fiscal year($)(1) | Registrant      contributions in last fiscal year($)(1) | Aggregate      earnings in last fiscal year($)(2) | Aggregate      withdrawal/distributions      ($) | Aggregate      balance at last fiscal year end ($)(3) |
|-------------------------|--------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------|--------------------------------------------------|-------------------------------------------------------|
| (a)                     | (b)                                                    | (c)                                                     | (d)                                               | (e)                                              | (f)                                                   |
| Barth J.      Wolf      | 21,081                                                 | -                                                       | 72,306                                            | -                                                | 767,625                                               |
| Diane L.      Ford      |         27,283 | -                                                       | 184,879                                           | -                                                | 1,271,855                                             |
| Bradley A.      Johnson | 19,914                                                 | -                                                       | 85,026                                            | -                                                | 1,058,169                                             |

| (1)   | Deferrals into      the Deferred Compensation Plan were made from compensation earned in 2009      and are reported in column (c) of the Summary Compensation Table for 2009,      with the exception of annual incentive and performance share amounts      earned in 2008, but paid out and deferred in 2009.  These      amounts are as follows: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                    |   | Annual      Incentive Payout |   |   | Performance      Share Payout |   |
|-------------------------|--------|------------------------------|--------|--------|-------------------------------|--------|
| Barth J.      Wolf      |   |                         | 69,074 |   |                          |   | - |   |
| Diane L.      Ford      |   |                         | 64,786 |   |                          |   | - |   |
| Bradley A.      Johnson |   |                         | 67,750 |   |                          |   | - |   |

| (2)   | Above market earnings received on      Reserve Accounts A and B are reported in column (h) of theSummary Compensation Table for      2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The aggregate      balance includes amounts shown in footnote (1) and the above market      earnings on Reserve Accounts A and B, which are included in column (h) of      the Summary Compensation Table for2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                    | Aggregate      earnings for Reserve Ain      lastfiscal      year ($) | Aggregate      earnings for Reserve Bin      lastfiscal      year ($) | Aggregate      earnings for Mutual Funds in lastfiscal      year ($) | Aggregate      earnings for company stock in last fiscal year ($) | Aggregate      earningsin      last fiscalyear      ($) |
|-------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------|
| Barth J.      Wolf      | -                                                                     | 14,171                                                                | 34,133                                                               | 24,002                                                            | 72,306                                                  |
| Diane L.      Ford      | 7,813                                                                 | -                                                                     | 152,167                                                              | 24,899                                                            | 184,879                                                 |
| Bradley A.      Johnson | 3,692                                                                 | 25,373                                                                | 30,751                                                               | 25,210                                                            | 85,026                                                  |

| Type      of Termination     |   | Barth      J.Wolf (1) |      |   | Diane      L.Ford (2) |   |      | Bradley A. Johnson (2) |   |
|------------------------------|--------|-----------------------|-----------|--------|-----------------------|--------|-----------|------------------------|--------|
| Retirement      (3)          |   | $                     | -         |   |                  | $      | 2,662,795 |                   |   | $ | 2,364,722 |   |
| Change In      Control (CIC) |   |                  | 1,517,223 |   |                  |   | 1,363,361 |                   |   |   | 1,248,655 |   |

| (1)   | Mr. Wolf was      not retirement eligible as of December 31,2009. |
|-----------------|-------------------------------------------------------------------|

----

| (2)   | Ms. Ford and      Mr. Johnson are currently eligible for retirement under the pension      program, as specified in the plan documents.  Termination for      reasons that are voluntary/involuntary/for cause would be treated the same      as retirement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Included in      the value shown is the present value of future retirement benefit      payments.  Under the Pension Restoration Plan and the      Supplemental Retirement Plan, certain participants will be paid a monthly      benefit (for a fixed number of payments or a lifetime      annuity).  The present value of future monthly benefit payments      was determined using an interest rate and mortality table consistent with      assumptions used for financial reporting under the Compensation-Retirement      Benefits Topic of the FASB ASC.  Also included in the total is      the enhanced value for any outstanding equity  grants. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 12. | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED      STOCKHOLDER MATTERS |
|----------|----------------------------------------------------------------------------------------------------------|

----

|                                                                                                           |   | Amount      and Nature of Shares Beneficially Owned February      1, 2010 |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|
| Name      and Title                                                                                            |   | Aggregate      Number of Shares Beneficially Owned                             | Number      of Shares Subject to Stock Options | Percent      of Shares |
| Lawrence T.      Borgard    President      and Chief Executive Officer and Director        |   | 101,628                                                                        | 76,646 | * |
| Phillip M.      Mikulsky    Director (1)                                              |   | 236,328                                                                        | 194,003 | * |
| Thomas P.      Meinz    Director      (2)                                                  |   | 112,024                                                                        | 87,902 | * |
| William D.      Laakso    Director                                                         |   | 3,484                                                                          | 2,335 | * |
| Joseph P.      O'Leary    Senior      Vice President, Chief Financial Officer and Director |   | 179,762                                                                        | 162,579 | * |
| Charles A.      Schrock    Director                                                        |   | 148,375                                                                        | 126,345 | * |
| Diane L.      Ford   Vice      President and Corporate Controller                               |   | 65,823                                                                         | 52,752 | * |
| Barth J.      Wolf    Secretary                                                            |   | 47,519                                                                         | 40,658 | * |
| Bradley A.      Johnson    Treasurer                                                       |   | 47,377                                                                         | 35,530 | * |
| All 9      directors and executive officers as a group (3)                                                     |   | 942,320                                                                        | 778,750 | 1.2% |

|   |  * | Less than 1%      of Integrys Energy Group’s outstanding shares of common stock as of      December 31, 2009 |
|--------|---------|--------------------------------------------------------------------------------------------------------------------|

|   | (1) | Includes 7,501      shares owned in a joint trust withspouse. |
|--------|-----|---------------------------------------------------------------|

|   | (2) | Includes 4,432      shares owned in a joint trust withspouse. |
|--------|-----|---------------------------------------------------------------|

|   | (3) | Aggregate      Number of Shares Beneficially Owned includes shares of common stock held      in the Employee Stock Ownership Plan and Trust, the WPS Deferred      Compensation Trust, and all stock options, which are exercisable within      60 days of February 1, 2010.  Each director or officer has      sole voting and investment power with respect to the shares reported,      unless otherwise noted.  No voting or investment power exists      related to the stock options reported until  exercised. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE |
|----------|-------------------------------------------------------------------------------------|

----

| ITEM 14. | PRINCIPAL      ACCOUNTING FEES AND SERVICES |
|----------|---------------------------------------------|

| Fees                        |   | 2009   |    |   | 2008   |   |
|-----------------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees      (a)         |   | $      | 671,160 |   |   | $      | 804,659 |   |
| Audit Related      Fees (b) |   |   | -       |   |   |   | 500 |   |
| Tax Fees      (c)           |   |   | 179,387 |   |   |   | - |   |
| All Other      Fees (d)     |   |   | 630     |   |   |   | 590 |   |
| Total      Fees             |   | $      | 851,177 |   |   | $      | 805,749 |   |

| a)   | Audit Fees. Consists of      aggregate fees for the audits of the annual consolidated financial      statements, reviews of the interim condensed consolidated financial      statements included in quarterly reports, and audits of the effectiveness      of, and management's assessment of the effectiveness of, internal control      over financial reporting.  Audit fees also include services that      are normally provided by Deloitte & Touche in connection with      statutory and regulatory filings or engagements, including comfort      letters, consents and other services related to SEC matters, and      consultations arising during the course of the audits and reviews      concerning financial accounting and reporting  standards. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Audit Related Fees.      Consists of fees billed for assurance and related services that are      reasonably related to the performance of the audit or review of the      consolidated financial statements or internal control over financial      reporting and are not reported under "Audit  Fees." |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Tax Fees. Consists of      fees billed for professional services rendered for tax      compliance. |
|----------------|----------------------------------------------------------------------------------------------------|

| d)   | All Other Fees.      Consists of other fees for services provided to WPS by Deloitte &      Touche LLP for products and services other than the services reported      above.  All Other Fees are for software licensing and training      provided in 2009 and 2008.  The nature of the software license      fees, which include support, learning services, and training, has been      deemed as permissible non-attestservices. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

PART IV

| ITEM      15. | EXHIBITS      AND FINANCIAL STATEMENT SCHEDULES |
|---------------|-------------------------------------------------|

| Documents      filed as part of this report: |
|----------------------------------------------|
|                                         |   |
| (1)                                          | Consolidated      Financial Statements included in Part II at Item 8  above: |
|                                         |   |
|                                         | Description | Pages in 10-K |
|                                         |   |   |
|                                         | Consolidated      Statements of Income for the three years ended December 31, 2009,      2008, and 2007 | 43 |
|                                         |   |
|                                         | Consolidated      Balance Sheets as of December 31, 2009 and 2008 | 44 |
|                                         |   |
|                                         | Consolidated      Statements of Capitalization as of December 31, 2009 and      2008 | 45 |
|                                         |   |
|                                         | Consolidated      Statements of Common Shareholder's Equity for the three years ended      December 31, 2009, 2008, and 2007 | 46 |
|                                         |   |
|                                         | Consolidated      Statements of Cash Flows for the three years ended December 31, 2009,      2008, and 2007 | 47 |
|                                         |   |
|                                         | Notes to      Consolidated Financial Statements | 48 |
|                                         |   |   |
|                                         | Report of      Independent Registered Public Accounting Firm | 80 |
|                                         |   |   |
| (2)                                          | Financial      Statement Schedules.The following      financial statement schedules are included in Part IV of this      report.  Schedules not included herein have been omitted because      they are not applicable or the required information is shown in the      financial statements or notes thereto. |
|                                         |   |
|                                         | Description | Pages in 10-K |
|                                         |   |   |
|                                         | Schedule II      WPS Valuation and Qualifying Accounts | 99 |
|                                         |   |   |
| (3)                                          | Listing of      all exhibits, including those incorporated by reference. See Exhibit      Index |

----

SIGNATURES

|   |   | WISCONSIN      PUBLIC SERVICE CORPORATION |
|--------|--------|-------------------------------------------|
|   |
|   |   |                                      | (Registrant) |
|   |   |                                      |   |
|   |   | By:                                       | /s/ Lawrence      T. Borgard |
|   |   |                                      | Lawrence T.      BorgardPresident and      Chief Executive Officer |

| Signature                                                                                                                                                                                                                                                                                                                         | Title                                                                                              | Date                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
| William D.      Laakso *                                                                                                                                                                                                                                                                                                          | Director                                                                                           |                   |
| Thomas P.      Meinz *                                                                                                                                                                                                                                                                                                            | Director                                                                                           |                   |
| Phillip M.      Mikulsky *                                                                                                                                                                                                                                                                                                        | Director                                                                                           |                   |
| Charles A.      Schrock *                                                                                                                                                                                                                                                                                                         | Director and      Chairman                                                                         |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
| /s/ Lawrence T.      Borgard                                                      | President,      Chief Executive Officer and Director(principal      executive officer)             | February 25,      2010 |
| Lawrence T.      Borgard                                                                                                                                                                                                                                                                                                          |                                                                                               |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
| /s/ Joseph P.      O'Leary                                                        | Senior Vice      President, Chief Financial Officer and Director(principal      financial officer) | February 25,      2010 |
| Joseph P.      O'Leary                                                                                                                                                                                                                                                                                                            |                                                                                               |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
| /s/ Diane L.      Ford                                                            | Vice      President and Corporate Controller(principal      accounting officer)                    | February 25,      2010 |
| Diane L.      Ford                                                                                                                                                                                                                                                                                                                |                                                                                               |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
|                                                                                                                                                                                                                                                                                                                              |                                                                                               |                   |
| * By: /s/ Diane L.      Ford                                                 |                                                                                               |                   |
|         Diane      L. Ford                                                                                                                                                                                                                                                                | Attorney-in-Fact                                                                                   | February 25,      2010 |

----

| SCHEDULE II                                                                                           |   |              |   |   |            |   |   |                |   |   |               |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|--------|---------------------|--------|--------|--------------------|--------|
| WISCONSIN      PUBLIC SERVICE CORPORATION                                                             |   |              |   |   |            |   |   |
| VALUATION      AND QUALIFYING ACCOUNTS                                                                |   |              |   |   |            |   |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |
| Allowance      for Doubtful Accounts                                                                  |   |
| Years      Ended December 31, 2009, 2008, and 2007                                                    |   |
| (in      millions)                                                                                    |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |
|                                                                                                  |   | Balance      at   |   |   | Additions       |   |   |                |   |   |               |   |
|                                                                                                  |   | Beginning      of |   |   | Charged      to |   |   |                |   |   | Balance      at    |   |
| Fiscal      Year                                                                                      |   | Period            |   |   | Expense (1)     |   |   | Reductions      (2) |   |   | End of      Period |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |
| 2007                                                                                                  |   | $                 | 7.0    |   |            | $      | 7.8    |                |   | $      | 10.8               |   |   | $ | 4.0 |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |   |   |   |   |
| 2008                                                                                                  |   | $                 | 4.0    |   |            | $      | 9.4    |                |   | $      | 8.6                |   |   | $ | 4.8 |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |   |   |   |   |
| 2009                                                                                                  |   | $                 | 4.8    |   |            | $      | 11.7   |                |   | $      | 11.5               |   |   | $ | 5.0 |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |   |   |   |   |
| (1)      Net of recoveries.                                                                           |   |              |   |   |            |   |   |                |   |   |               |   |   |
| (2)      Represents amounts written off to the reserve, net of adjustments to      regulatory assets. |   |
|                                                                                                  |   |              |   |   |            |   |   |                |   |   |               |   |   |   |   |   |

----

EXHIBIT

| ExhibitNumber | Description of Documents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.1*          | Asset      Contribution Agreement between ATC and Wisconsin Electric Power Company,      Wisconsin Power and Light Company, WPS, Madison Gas & Electric Co.,      Edison Sault Electric Company, South Beloit Water, Gas and Electric      Company, dated as of December 15, 2000.  (Incorporated by      reference to Exhibit 2A-3 to Integrys Energy Group's and WPS's Form 10-K      for the year ended December 31, 2000.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.1           | Articles of      Incorporation of WPS as effective May 26, 1972 and amended through May 31,      1988 (Incorporated by reference to Exhibit 3A to Form 10-K for the year      ended December 31, 1991); Articles of Amendment to Articles of      Incorporation dated June 9, 1993. (Incorporated by reference to Exhibit 3      to Form 8-K filed June 10, 1993.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 3.2           | By-Laws of      WPS, as amended through March 16, 2009.  (Incorporated by      reference to Exhibit 3.2 to WPS's Form 8-K filed March 19,      2009.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.1           | First      Mortgage and Deed of Trust, dated as of January 1, 1941 from WPS to U.S.      Bank National Association (successor to First Wisconsin Trust Company),      Trustee (Incorporated by reference to Exhibit 7.01 - File No. 2-7229);      Supplemental Indenture, dated as of November 1, 1947 (Incorporated by      reference to Exhibit 7.02 - File No. 2-7602); Supplemental Indenture,      dated as of November 1, 1950 (Incorporated by reference to Exhibit 4.04 -      File No. 2-10174); Supplemental Indenture, dated as of May 1, 1953      (Incorporated by reference to Exhibit 4.03 - File No. 2-10716);      Supplemental Indenture, dated as of October 1, 1954 (Incorporated by      reference to Exhibit 4.03 - File No. 2-13572); Supplemental      Indenture, dated as of December 1, 1957 (Incorporated by reference to      Exhibit 4.03 - File No. 2-14527); Supplemental Indenture, dated as of      October 1, 1963 (Incorporated by reference to Exhibit 2.02B -      File No. 2-65710); Supplemental Indenture, dated as of June 1, 1964      (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Supplemental Indenture, dated as of November 1, 1967 (Incorporated by      reference to Exhibit 2.02B - File No. 2-65710); Supplemental Indenture,      dated as of April 1, 1969 (Incorporated by reference to Exhibit 2.02B -      File No. 2-65710); Fifteenth Supplemental Indenture, dated as of May 1,      1971 (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Sixteenth Supplemental Indenture, dated as of August 1, 1973      (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Seventeenth Supplemental Indenture, dated as of September 1, 1973      (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Eighteenth Supplemental Indenture, dated as of October 1, 1975      (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Nineteenth Supplemental Indenture, dated as of February 1, 1977      (Incorporated by reference to Exhibit 2.02B - File No. 2-65710);      Twentieth Supplemental Indenture, dated as of July 15, 1980 (Incorporated      by reference to Exhibit 4B to Form 10-K for the year ended      December 31, 1980); Twenty-First Supplemental Indenture, dated as of      December 1, 1980 (Incorporated by reference to Exhibit 4B to      Form 10-K for the year ended December 31, 1980); Twenty-Second      Supplemental Indenture dated as of April 1, 1981 (Incorporated by      reference to Exhibit 4B to Form 10-K for the year ended December 31,      1981); Twenty-Third |

----

|   | Supplemental Indenture, dated as of February 1, 1984 (Incorporated      by reference to Exhibit 4B to Form 10-K for the year ended      December 31, 1983); Twenty-Fourth Supplemental Indenture, dated as of      March 15, 1984 (Incorporated by reference to Exhibit 1 to Form 10-Q for      the quarter ended June 30, 1984); Twenty-Fifth Supplemental      Indenture, dated as of October 1, 1985 (Incorporated by reference to      Exhibit 1 to Form 10-Q for the quarter ended September 30,      1985); Twenty-Sixth Supplemental Indenture, dated as of December 1,      1987 (Incorporated by reference to Exhibit 4A-1 to Form 10-K for the year      ended December 31, 1987); Twenty-Seventh Supplemental Indenture,      dated as of September 1, 1991 (Incorporated by reference to Exhibit 4 to      Form 8-K filed September 18, 1991); Twenty-Eighth Supplemental Indenture,      dated as of July 1, 1992 (Incorporated by reference to Exhibit 4B - File      No. 33-51428); Twenty-Ninth Supplemental Indenture, dated as of October 1,      1992 (Incorporated by reference to Exhibit 4 to Form 8-K filed October 22,      1992); Thirtieth Supplemental Indenture, dated as of February 1, 1993      (Incorporated by reference to Exhibit 4 to Form 8-K filed      January 27, 1993); Thirty-First Supplemental Indenture, dated as of      July 1, 1993 (Incorporated by reference to Exhibit 4 to Form 8-K filed      July 7, 1993); Thirty-Second Supplemental Indenture, dated as of      November 1, 1993 (Incorporated by reference to Exhibit 4 to      Form 10-Q for the quarter ended September 30, 1993); Thirty-Third      Supplemental Indenture, dated as of December 1, 1998 (Incorporated by      reference to Exhibit 4D to Form 8-K filed December 18, 1998);      Thirty-Fourth Supplemental Indenture, dated as of August 1, 2001      (Incorporated by reference to Exhibit 4D to Form 8-K filed August 24,      2001); Thirty-Fifth Supplemental Indenture, dated as of December 1,      2002 (Incorporated by reference to Exhibit 4D to Form 8-K filed      December 16, 2002); Thirty-Sixth Supplemental Indenture, dated as of      December 8, 2003 (Incorporated by reference to Exhibit 4.2 to Form      8-K filed December 9, 2003); Thirty-Seventh Supplemental Indenture,      dated as of December 1, 2006 (Incorporated by reference to Exhibit      4.2 to Form 8-K filed November 30, 2006); Thirty-Eighth Supplemental      Indenture, dated as of August 1, 2006 (Incorporated by reference to      Exhibit 4.1 to Form 10-K for the year ended December 31, 2006);      Thirty-Ninth Supplemental Indenture, dated as of November 1, 2007      (Incorporated by reference to Exhibit 4.2 to Form 8-K filed November 16,      2007) ; and Fortieth Supplemental Indenture, dated as of December 1, 2008      (Incorporated by reference to Exhibit 4.2 to Form 8-K filed December 4,      2008).  All references to periodic reports are to those of WPS      (File No. 1-3016). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2    | Indenture,      dated as of December 1, 1998, between WPS and U.S. Bank National      Association (successor to Firstar Bank Milwaukee, N.A., National      Association) (Incorporated by reference to Exhibit 4A to Form 8-K filed      December 18, 1998); First Supplemental Indenture, dated as of      December 1, 1998 between WPS and Firstar Bank Milwaukee, N.A.,      National Association (Incorporated by reference to Exhibit 4C to Form 8-K      filed December 18, 1998); Second Supplemental Indenture, dated as of      August 1, 2001 between WPS and Firstar Bank, National Association      (Incorporated by reference to Exhibit 4C of Form 8-K filed August 24,      2001); Third Supplemental Indenture, dated as of December 1, 2002      between WPS and U.S. Bank National Association (Incorporated by reference      to Exhibit 4C of Form 8-K filed December 16, 2002); Fourth      Supplemental Indenture, dated as of December 8, 2003, by and between      WPS and U.S. Bank National Association (successor to Firstar Bank,      National Association and Firstar Bank Milwaukee, N.A., National      Association)  (Incorporated by reference to Exhibit 4.1 to Form      8-K filed December 9, 2003); Fifth Supplemental Indenture, dated as      of December 1, 2006, by and between WPS and U.S. Bank National      Association (successor to Firstar Bank, National Association and Firstar      Bank Milwaukee, N.A., National Association)  (Incorporated by      reference to Exhibit 4.1 to Form 8-K filed November 30, 2006); Sixth      Supplemental Indenture, dated as of December 1, 2006, by and between      WPS and U.S. Bank National Association (successor to Firstar Bank,      National Association and Firstar Bank Milwaukee, N.A., National      Association) (Incorporated by reference to Exhibit 4.2 to Form 10-K for      the year ended December 31, 2006); Seventh Supplemental Indenture,      dated as of November 1, 2007, by and between WPS and U.S. Bank      National Association (successor to Firstar Bank, National Association and      Firstar Bank Milwaukee, N.A., National Association) (Incorporated by      reference to Exhibit 4.1 to Form 8-K filed November 16, 2007); and Eighth      Supplemental Indenture, dated as of December 1, 2008, by and between      WPS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

|         | and      U.S. Bank National Association (successor to Firstar Bank, National      Association and Firstar Bank Milwaukee, N.A., National Association)      (Incorporated by reference to Exhibit 4.1 to Form 8-K filed December 4,      2008).  References to periodic reports are to those of WPS (File      No. 1-3016).                                                                                                                                        |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.1         | Joint Power      Supply Agreement among WPS, Wisconsin Power and Light Company, and Madison      Gas and Electric Company, dated February 2, 1967.  (Incorporated      by reference to Exhibit 4.09 in File No. 2-27308.)                                                                                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.2*        | Joint Power      Supply Agreement among WPS, Wisconsin Power and Light Company, and Madison      Gas and Electric Company dated July 26,      1973.  (Incorporated by reference to Exhibit 5.04A in File      No. 2-48781.)                                                                                                                                                                                                                                  |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.3*      # | Joint Plant      Agreement by and between WPS and Dairyland Power Cooperative, dated as of      November 23, 2004.  (Incorporated by reference to Exhibit 10.19      to Integrys Energy Group's and WPS's Form 10-K for the year ended      December 31, 2004.)                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.4         | Basic      Generating Agreement, Unit 4, Edgewater Generating Station, dated June 5,      1967, between Wisconsin Power and Light Company and      WPS.  (Incorporated by reference to Exhibit 4.10 in File No.      2-27308.)                                                                                                                                                                                                                                         |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.5         | Agreement for      Construction and Operation of Edgewater 5 Generating Unit, dated      February 24, 1983, between Wisconsin Power and Light Company,      Wisconsin Electric Power Company, and WPS.  (Incorporated by      reference to Exhibit 10C-1 to WPS's Form 10-K for the year ended      December 31, 1983.)                                                                                                                                 |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.6         | Amendment No.      1 to Agreement for Construction and Operation of Edgewater 5 Generating      Unit, dated December 1, 1988.  (Incorporated by reference      to Exhibit 10C-2 to WPS's Form 10-K for the year ended December 31,      1988.)                                                                                                                                                                                                               |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.7         | Revised      Agreement for Construction and Operation of Columbia Generating Plant      among WPS, Wisconsin Power and Light Company, and Madison Gas and Electric      Company, dated July 26, 1973.  (Incorporated by reference to      Exhibit 5.07 in File No. 2-48781.)                                                                                                                                                                                           |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.8+        | Form of Key      Executive Employment and Severance Agreement entered into between Integrys      Energy Group and each of the following:  Lawrence T. Borgard,      Diane L. Ford, Bradley A. Johnson, Thomas P. Meinz, Joseph P. O'Leary,      Mark A. Radtke, Charles A. Schrock, and Barth J.      Wolf.  (Incorporated by reference to Exhibit 10.2 to Integrys      Energy Group's Form 10-K for the year ended December 31,      2008.) |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.9+        | Form of      Integrys Energy Group Performance Stock Right Agreement. (Incorporated by      reference to Exhibit 10.2 to Integrys Energy Group's and WPS's Form 8-K      filed December 13, 2005.)                                                                                                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.10+       | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan Performance      Stock Right Agreement approved May 17, 2007.  (Incorporated by      reference to Exhibit 10.5 to Integrys Energy Group's Form 10-K for the      year ended December 31, 2007 [File No. 1-11337].)                                                                                                                                                                    |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.11+       | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan Performance      Stock Right Agreement approved February 14, 2008.  (Incorporated      by reference to Exhibit 10.6 to Integrys Energy Group's Form 10-K for the      year ended December 31, 2007 [File No.  1-11337].)                                                                                                                                                              |

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| 10.12+ | Form of      Integrys Energy Group 2005 Omnibus Incentive Compensation Plan Restricted      Stock Award Agreement.  (Incorporated by reference to Exhibit      10.1 to Integrys Energy Group Form 8-K filed December 13,      2006.)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.13+ | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan Restricted      Stock Award Agreement approved May 17, 2007.  (Incorporated by      reference to Exhibit 10.8 to Integrys Energy Group's Form 10-K for the      year ended December 31, 2007 [File No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.14+ | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan Restricted      Stock Unit Award Agreement approved February 14,      2008.  (Incorporated by reference to Exhibit 10.9 to Integrys      Energy Group's Form 10-K for the year ended December 31, 2007 [File      No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.15+ | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan      NonQualified Stock Option Agreement approved May 17,      2007.  (Incorporated by reference to Exhibit 10.10 to Integrys      Energy Group's Form 10-K for the year ended December 31, 2007 [File      No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.16+ | Form of      Integrys Energy Group 2007 Omnibus Incentive Compensation Plan      NonQualified Stock Option Agreement approved February 14,      2008.  (Incorporated by reference to Exhibit 10.11 to Integrys      Energy Group's Form 10-K for the year ended December 31, 2007 [File      No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.17+ | Integrys      Energy Group 1999 Stock Option Plan.  (Incorporated by reference      to Exhibit 10-2 in Integrys Energy Group's Form 10-Q for the quarter ended      June 30, 1999, filed August 11, 1999.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.18+ | Integrys      Energy Group Deferred Compensation Plan as Amended and Restated Effective      April 1, 2008.  (Incorporated by reference to Exhibit 10.14 to      Integrys Energy Group's Form 10-K for the year ended December 31,      2007 [File No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.19+ | Integrys      Energy Group 2001 Omnibus Incentive Compensation      Plan.  (Incorporated by reference to Exhibit 10.16 to Integrys      Energy Group's and WPS's Form 10-K for the year ended December 31,      2005, filed February 28, 2006.)                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.20+ | Integrys      Energy Group, Inc. 2005 Omnibus Incentive Compensation      Plan.  (Incorporated by reference to Exhibit 10.2 to Integrys      Energy Group's and WPS's Form 10-Q filed August 4,  2005.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.21+ | Integrys      Energy Group, Inc. 2007 Omnibus Incentive Compensation      Plan.  (Incorporated by reference to Exhibit 10.17 to Integrys      Energy Group's Form 10-K for the year ended December 31, 2007 [File      No. 1-11337].)                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.22+ | Integrys      Energy Group Pension Restoration and Supplemental Retirement Plan, as      Amended and Restated Effective April 1, 2008.  (Incorporated by      reference to Exhibit 10.1 to Integrys Energy Group's Form 8-K filed April      15, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.23  | Five Year      Credit Agreement among Wisconsin Public Service Corporation, as Borrower,      The Lenders Identified Herein, U.S. Bank National Association, as      Syndication Agent, Wells Fargo Bank National Association, as      Co-Documentation Agent, JPMorgan Chase Bank, N.A., as Co-Documentation      Agent, UBS Securities LLC, as Co-Documentation Agent, Citibank, N.A., as      Administrative Agent and Citigroup Global Markets, Inc. and U.S. Bank      National Association, as Co-Lead Arrangers and Book Managers dated as of      June 2, 2005.  (Incorporated by reference to Exhibit 10.22 to      WPS's Form 10-K filed February 28, 2008 [File No.  1-3016].) |

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| 12     | WPS Ratio of      Earnings to Fixed Charges and Ratio of Earnings to Fixed Charges and      Preferred Dividends.                                                                                                                                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 21     | Subsidiaries      of WPS.                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 23     | Consent of      Independent Registered Public Accounting Firm for WPS.                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 24     | Powers of      Attorney.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.1   | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of      1934 for WPS.                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2   | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of      1934 for WPS.                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 32     | Written      Statement of the Chief Executive Officer and Chief Financial Officer      Pursuant to 18 U.S.C. Section 1350 for WPS.                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 99     | Proxy      Statement for Integrys Energy Group's 2010 Annual Meeting of      Shareholders.  [To be filed with the SEC under Regulation 14A      within 120 days after December 31, 2009; except to the extent      specifically incorporated by reference, the Proxy Statement for the 2010      Annual Meeting of Shareholders shall not be deemed to be filed with the      SEC as part of this Annual Report on Form 10-K.] |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| *      | Schedules and      exhibits to this document are not filed therewith.  The      registrant agrees to furnish supplementally a copy of any such schedule or      exhibit to the SEC upon request.                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| +      | A management      contract or compensatory plan or arrangement.                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| #      | Portions of      this exhibit have been redacted and are subject to a confidential      treatment request filed with the Secretary of SEC pursuant to Rule 24b-2      under the Securities and Exchange Act of 1934, as amended.  The      redacted material was filed separately with the  SEC.                                                                                                                                         |

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