| [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 21, 2011                                                                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                           |   |
| 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                     | 3                         |
|                       |                      |   |   |
| ITEM 1.                    | BUSINESS                  | 3 |
|                       |                      |   |
|                       | A.                        | GENERAL | 3 |
|                       |                      |   |   |   |
|                       | B.                        | REGULATED ELECTRIC UTILITY OPERATIONS | 3 |
|                       |                      |   |   |   |
|                       | C.                        | REGULATED NATURAL GAS UTILITY OPERATIONS | 6 |
|                       |                      |   |   |   |
|                       | D.                        | ENVIRONMENTAL MATTERS | 8 |
|                       |                      |   |   |   |
|                       | E.                        | CAPITAL REQUIREMENTS | 8 |
|                       |                      |   |   |
|                       | F.                        | EMPLOYEES | 8 |
|                       |                      |   |   |
| ITEM 1A.                   | RISK FACTORS              | 9 |
|                       |                      |   |   |
| ITEM 1B.                   | UNRESOLVED STAFF COMMENTS | 12 |
|                       |                      |   |   |
| ITEM 2.                    | PROPERTIES                | 13 |
|                       |                      |   |   |
| ITEM 3.                    | LEGAL PROCEEDINGS         | 15 |
|                       |                      |   |   |
| ITEM 4.                    | (REMOVED AND RESERVED)    | 15 |

| PART II  | 15                                                                                                           |
|----------|--------------------------------------------------------------------------------------------------------------|
|     |                                                                                                         |   |   |   |
| ITEM 5.  | MARKET FOR REGISTRANT'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                                                   | 38 |
|     |                                                                                                         |   |   |
| ITEM 8.  | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                  | 40 |

|   | A. | Management Report on Internal Control over Financial Reporting | 40    |
|--------|----|----------------------------------------------------------------|-------|
|   | B. | Consolidated Statements of Income                              | 41    |
|   | C. | Consolidated Balance Sheets                                    | 42    |
|   | D. | Consolidated Statements of Capitalization                      | 43    |
|   | E. | Consolidated Statements of Common Shareholder's Equity         | 44    |
|   | F. | Consolidated Statements of Cash Flows                          | 45    |
|   | G. | Notes to Consolidated Financial Statements                     | 46-78 |

----

|                                                  |                                                                                           | Note 1                                                                                     | Summary of Significant Accounting Policies                                                                                   | 46 |   |
|-------------------------------------------------------|------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|--------|
|                                                  |                                                                                           | Note 2                                                                                     | Risk Management Activities                                                                                                   | 51 |   |
|                                                  |                                                                                           | Note 3                                                                                     | Restructuring Expense                                                                                                        | 52 |   |
|                                                  |                                                                                           | Note 4                                                                                     | Property, Plant, and Equipment                                                                                               | 52 |   |
|                                                  |                                                                                           | Note 5                                                                                     | Jointly Owned Utility Facilities                                                                                             | 53 |   |
|                                                  |                                                                                           | Note 6                                                                                     | Regulatory Assets and Liabilities                                                                                            | 53 |   |
|                                                  |                                                                                           | Note 7                                                                                     | Leases                                                                                                                       | 55 |   |
|                                                  |                                                                                           | Note 8                                                                                     | Short-Term Debt and Lines of Credit                                                                                          | 55 |   |
|                                                  |                                                                                           | Note 9                                                                                     | Long-Term Debt                                                                                                               | 56 |   |
|                                                  |                                                                                           | Note 10                                                                                    | Asset Retirement Obligations                                                                                                 | 57 |   |
|                                                  |                                                                                           | Note 11                                                                                    | Income Taxes                                                                                                                 | 58 |   |
|                                                  |                                                                                           | Note 12                                                                                    | Commitments and Contingencies                                                                                                | 60 |   |
|                                                  |                                                                                           | Note 13                                                                                    | Guarantees                                                                                                                   | 65 |   |
|                                                  |                                                                                           | Note 14                                                                                    | Employee Benefit Plans                                                                                                       | 65 |   |
|                                                  |                                                                                           | Note 15                                                                                    | Preferred Stock                                                                                                              | 71 |   |
|                                                  |                                                                                           | Note 16                                                                                    | Common Equity                                                                                                                | 71 |   |
|                                                  |                                                                                           | Note 17                                                                                    | Stock-Based Compensation                                                                                                     | 72 |   |
|                                                  |                                                                                           | Note 18                                                                                    | Variable Interest Entities                                                                                                   | 72 |   |
|                                                  |                                                                                           | Note 19                                                                                    | Fair Value                                                                                                                   | 73 |   |
|                                                  |                                                                                           | Note 20                                                                                    | Miscellaneous Income                                                                                                         | 74 |   |
|                                                  |                                                                                           | Note 21                                                                                    | Regulatory Environment                                                                                                       | 74 |   |
|                                                  |                                                                                           | Note 22                                                                                    | Segments of Business                                                                                                         | 75 |   |
|                                                  |                                                                                           | Note 23                                                                                    | Related Party Transactions                                                                                                   | 76 |   |
|                                                  |                                                                                           | Note 24                                                                                    | Quarterly Financial Information (Unaudited)                                                                                  | 78 |   |
|                                                  | H.                                                                                             | Report of Independent Registered Public Accounting Firm on  Financial Statements | 79                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                  |                                                                                           |                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ITEM 9.                                               | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE           | 80                                                                                         |
|                                                  |                                                                                           |                                                                                       |
| ITEM 9A.                                              | CONTROLS AND PROCEDURES                                                                        | 80                                                                                         |
|                                                  |                                                                                           |                                                                                       |
| ITEM 9B.                                              | OTHER INFORMATION                                                                              | 80                                                                                         |
|                                                  |                                                                                           |                                                                                       |
| PART III                                              | 81                                                                                             |
|                                                  |                                                                                           |                                                                                       |
| ITEM 10.                                              | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                         | 81                                                                                         |
|                                                  |                                                                                           |                                                                                       |
| ITEM 11.                                              | EXECUTIVE COMPENSATION                                                                         | 82                                                                                         |
|                                                  |                                                                                           |                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ITEM 12.                                              | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 95                                                                                         |
|                                                  |                                                                                           |                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 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 |
| BACT                                             | Best Available Control Technology |
| CAA                                              | Clean Air Act |
| EPA                                              | United States Environmental Protection Agency |
| 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 |
| ITC                                              | Investment Tax Credit |
| 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 |
| UPPCO                                            | Upper Peninsula Power Company |
| 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 individual and cumulative 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; financial reform; health care reform; changes in environmental and other regulations, including but not limited to, greenhouse gas emissions, other environmental regulations impacting coal-fired generation facilities, 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 proceedings, 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 CAA 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, natural gas, and purchased power, including their impact on margins, working capital, and liquidity requirements;                                                                                                                                                                                                                                                                                                                                                                                                       |
| ● | 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, including the ability to adequately forecast energy usage for customers;                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ● | 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 and derivative 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;                                                                                    |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|
| ● | 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. |

----

PART I

A.

B

----

| (Millions)                                                                                   |   |       |     |   |       |   |     |       |   |
|----------------------------------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|----------|------------|--------|
| Energy Source (kilowatt-hours)                                                               |   |  2010 |     |   |  2009 |   |     |  2008 |   |
| Company-owned generation units                                                               |   |       |     |   |       |   |     |       |   |
|    Coal                                                                       |   |       | 10,232.9 |   |       |   | 8,974.3  |       |   |   | 9,570.9 |   |
|    Wind                                                                       |   |       | 287.7    |   |       |   | 46.4     |       |   |   | 17.8 |   |
|    Hydroelectric                                                              |   |       | 232.8    |   |       |   | 161.1    |       |   |   | 196.6 |   |
|    Natural gas, fuel oil, and tire derived                                    |   |       | 104.0    |   |       |   | 63.5     |       |   |   | 196.9 |   |
|      Total company-owned generation units                           |   |       | 10,857.4 |   |       |   | 9,245.3  |       |   |   | 9,982.2 |   |
| Power purchase contracts                                                                     |   |       |     |   |       |   |     |       |   |   |   |   |
|    Nuclear (Kewaunee Power Station)                                           |   |       | 2,940.8  |   |       |   | 2,663.9  |       |   |   | 2,656.8 |   |
|    Natural gas (Fox Energy Center, LLC and Combined Locks Energy Center, LLC) |   |       | 608.4    |   |       |   | 673.7    |       |   |   | 699.5 |   |
|    Hydroelectric                                                              |   |       | 526.7    |   |       |   | 569.5    |       |   |   | 369.4 |   |
|    Wind                                                                       |   |       | 149.1    |   |       |   | 136.9    |       |   |   | 109.0 |   |
|    Other                                                                      |   |       | 205.5    |   |       |   | 571.1    |       |   |   | 167.8 |   |
|      Total power purchase contracts                                 |   |       | 4,430.5  |   |       |   | 4,615.1  |       |   |   | 4,002.5 |   |
| Purchased power from MISO                                                                    |   |       | 742.1    |   |       |   | 1,740.5  |       |   |   | 1,871.7 |   |
| Total purchased power                                                                        |   |       | 5,172.6  |   |       |   | 6,355.6  |       |   |   | 5,874.2 |   |
| Opportunity sales                                                                            |   |       |     |   |       |   |     |       |   |   |   |   |
|    Sales to MISO                                                              |   |       | (668.6   | )      |       |   | (421.7   | )          |   |   | (478.6 | ) |
|    Net sales to other                                                         |   |       | (248.4   | )      |       |   | (373.6   | )          |   |   | (276.8 | ) |
| Total opportunity sales                                                                      |   |       | (917.0   | )      |       |   | (795.3   | )          |   |   | (755.4 | ) |
| Total WPS electric utility supply                                                            |   |       | 15,113.0 |   |       |   | 14,805.6 |       |   |   | 15,101.0 |   |

| Fuel Type   |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Coal        |   | $      | 2.05   |   |   | $      | 1.94   |   |   | $ | 1.78 |   |
| Natural gas |   |   | 6.28   |   |   |   | 6.73   |   |   |   | 9.74 |   |
| Fuel oil    |   |   | 26.59  |   |   |   | 28.88  |   |   |   | 15.21 |   |

----

----

C.

| (MDth)                                                                                                                                |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Natural gas purchases                                                                                                                 |   |   | 36,007 |   |   |   | 40,425 |   |   |   | 45,315 |   |
| Customer-owned natural gas received                                                                                                   |   |   | 33,233 |   |   |   | 33,849 |   |   |   | 35,428 |   |
| Underground storage, net                                                                                                              |   |   | 906    |   |   |   | (149   | )      |   |   | (157 | ) |
| Contracted pipeline and storage compressor fuel, franchise     requirements, and unaccounted-for natural gas |   |   | 344    |   |   |   | (351   | )      |   |   | 360 |   |
| Total                                                                                                                                 |   |   | 70,490 |   |   |   | 73,774 |   |   |   | 80,946 |   |

----

----

D

E

F.  

----

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;                                                           |
| · | Limit access to the commercial paper market; and                                                                       |
| · | Require provision of additional credit assurance, including cash margin calls, to contract counterparties.             |

| ·   | Higher working capital costs, particularly related to natural gas inventory, accounts receivable, and cash collateral postings; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased liquidity requirements due to potential counterparty margin calls related to the use of derivative instruments to manage commodity price and volume exposure; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduced profitability to the extent that reduced margins, increased bad debt, and interest expenses are not recovered through rates; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Higher rates charged to customers, which could impact WPS’s competitive position; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | Reduced demand for energy, which could impact margins and operating expenses; and |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Shutting down of generation facilities if the cost of generation exceeds the market price for electricity. |
|--------------------|------------------------------------------------------------------------------------------------------------|

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                   |   |                  | 98.0    |   |   |   | (2 | ) |
|                                | Pulliam (4 units)           | Green Bay, WI       | Coal                   |   |                  | 332.9   |   |   |   |   |   |
|                                | Weston Units 1, 2, and 3    | Marathon County, WI | Coal                   |   |                  | 460.9   |   |   |   |   |   |
|                                | Weston Unit 4               | Marathon County, WI | Coal                   |   |                  | 385.7   |   |   |   | (2 | ) |
| Total Steam                         |                        |                |                   |   |                  | 1,632.0 |   |   |   |   |   |
|                                |                        |                |                   |   |                  |    |   |   |   |   |   |
| Combustion                          | De Pere Energy Center       | De Pere, WI         | Natural Gas            |   |                  | 169.6   |   |   |   |   |   |
|   Turbine and             | Eagle River                 | Eagle River, WI     | Distillate Fuel Oil    |   |                  | 4.2     |   |   |   |   |   |
|   Diesel                  | Juneau #31                  | Adams County, WI    | Distillate Fuel Oil    |   |                  | 6.2     |   |   |   | (2 | ) |
|                                | Oneida Casino               | Green Bay, WI       | Distillate Fuel Oil    |   |                  | 3.5     |   |   |   |   |   |
|                                | Pulliam #31                 | Green Bay, WI       | Natural Gas            |   |                  | 84.6    |   |   |   |   |   |
|                                | West Marinette #31          | Marinette, WI       | Natural Gas            |   |                  | 37.7    |   |   |   |   |   |
|                                | West Marinette #32          | Marinette, WI       | Natural Gas            |   |                  | 32.6    |   |   |   |   |   |
|                                | West Marinette #33          | Marinette, WI       | Natural Gas            |   |                  | 51.8    |   |   |   | (2 | ) |
|                                | Weston #31                  | Marathon County, WI | Natural Gas            |   |                  | 19.5    |   |   |   |   |   |
|                                | Weston #32                  | Marathon County, WI | Natural Gas            |   |                  | 48.1    |   |   |   |   |   |
| Total Combustion Turbine and Diesel |                        |                |                   |   | 457.8                 |    |   |   |   |   |
|                                |                        |                |                   |   |                  |    |   |   |   |   |   |
| Hydroelectric                       | Various                     | Wisconsin           | Hydro                  |   |                  | 67.8    |   |   |   | (3 | ) |
|                                |                        |                |                   |   |                  |    |   |   |   |   |   |
| Wind                                | Kewaunee County             | Wisconsin           | Wind                   |   |                  | 1.1     |   |   |   |   |   |
|                                | Crane Creek                 | Iowa                | Wind                   |   |                  | 21.7    |   |   |   |   |   |
| Total Wind                          |                        |                |                   |   |                  | 22.8    |   |   |   |   |   |
|                                |                        |                |                   |   |                  |    |   |   |   |   |   |
| Total System                        |                        |                |                   |   |                  | 2,180.4 |   |   |   |   |   |

| (1)    | Based on capacity ratings for July 2011, 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. |
|   |                                                                                                                                                                                                                                                                                                                    |   |
|   | -                                                                                                                                                                                                                                                                                                                       | At December 31, 2010, WPS operated the West Marinette 33 unit and held a 68% ownership interest in the facility, while Marshfield Electric and Water Department held the remaining 32% ownership.  On February 1, 2011, WPS purchased Marshfield Electric and Water Department's ownership interest and is now the sole owner of this facility. |
|   |                                                                                                                                                                                                                                                                                                                    |
| (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 Castle Rock.                                                                                                               |

----

| ● | Approximately 7,600 miles of natural gas distribution mains located in Michigan and Wisconsin, |
|---------|------------------------------------------------------------------------------------------------|
| ● | Approximately 250 miles of natural gas transmission mains located in Michigan and Wisconsin,   |
| ● | 87 natural gas distribution and transmission gate stations, and                                |
| ● | Approximately 297,000 natural gas lateral services.                                            |

----

ITEM 3

ITEM 4

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

|  ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------------|--------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| ITEM 6.  SELECTED FINANCIAL DATA                                                                                                                    |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| WISCONSIN PUBLIC SERVICE CORPORATION                                                                                                                          |   |
| COMPARATIVE FINANCIAL DATA AND OTHER STATISTICS (2006 TO 2010)                                                                                                |   |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| As of or for Year Ended December 31                                                                                                                           |   |   |    |   |   |   |    |   |   |   |    |   |   |
| (Millions, except weather information)                                                                                                                        |   | 2010   |    |   | 2009   |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Operating revenues                                                                                                                                            |   | $      | 1,589.0 |   |   | $      | 1,583.8 |   |   | $      | 1,748.4 |   |   | $      | 1,596.1 |   |   | $ | 1,434.4 |   |
| Net income attributed to common shareholder                                                                                                                   |   |   | 131.9   |   |   |   | 117.3   |   |   |   | 129.2   |   |   |   | 110.2   |   |   |   | 99.0 |   |
| Total assets                                                                                                                                                  |   |   | 3,386.0 |   |   |   | 3,311.3 |   |   |   | 3,313.7 |   |   |   | 3,017.6 |   |   |   | 2,956.6 |   |
| Long-term debt (excluding current portion)                                                                                                                    |   |   | 729.7   |   |   |   | 880.2   |   |   |   | 880.7   |   |   |   | 756.1   |   |   |   | 631.6 |   |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Weather information *                                                                                                                                         |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cooling degree days                                                                                                                                           |   |   | 616     |   |   |   | 274     |   |   |   | 464     |   |   |   | 634     |   |   |   | 521 |   |
| Cooling degree days as a percent of normal                                                                                                                    |   |   | 130.8   | %      |   |   | 54.3    | %      |   |   | 93.9    | %      |   |   | 128.6   | % |   |   | 110.1 | % |
| Heating degree days                                                                                                                                           |   |   | 7,080   |   |   |   | 7,962   |   |   |   | 7,969   |   |   |   | 7,102   |   |   |   | 6,785 |   |
| Heating degree days as a percent of normal                                                                                                                    |   |   | 94.2    | %      |   |   | 104.9   | %      |   |   | 104.6   | %      |   |   | 93.2    | % |   |   | 88.5 | % |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| * 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.                |   |
|                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |

----

| ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------------|---------------------------------------------------------------------------------------|

----

|                                        |   | Year Ended December 31 |   |   |  Change in |   |   |  Change in |   |
|---------------------------------------------|--------|-----------------------------|--------|--------|-----------------|--------|--------|-----------------|--------|
| (Millions)                                  |   | 2010                        |   |   | 2009            |   |   | 2008            |   |   | 2010 Over 2009 |   |   | 2009 Over 2008 |   |
| Electric utility operations                 |   | $                           | 103.4  |   |            | $      | 88.0   |            |   | $ | 88.6 |   |   |   | 17.5 | % |   |   | (0.7 | )% |
| Natural gas utility operations              |   |                        | 23.2   |   |            |   | 24.1   |            |   |   | 32.0 |   |   |   | (3.7 | )% |   |   | (24.7 | )% |
| Other operations                            |   |                        | 5.3    |   |            |   | 5.2    |            |   |   | 8.6 |   |   |   | 1.9 | % |   |   | (39.5 | )% |
|                                        |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributed to common shareholder |   | $                           | 131.9  |   |            | $      | 117.3  |            |   | $ | 129.2 |   |   |   | 12.4 | % |   |   | (9.2 | )% |

----

|                                            |   |                        |     |   |  Change in |   |     |  Change in |   |
|-------------------------------------------------|--------|-----------------------------|----------|--------|-----------------|--------|----------|-----------------|--------|
|                                            |   | Year Ended December 31 |     |   |  2010 Over |   |     |  2009 Over |   |
|                                            |   | 2010                        |     |   | 2009            |   |     | 2008            |   |   | 2009 |   |   | 2008 |   |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |
| Revenues                                        |   | $                           | 1,223.4  |   |            | $      | 1,188.2  |            |   | $ | 1,208.9 |   |   |   | 3.0 | % |   |   | (1.7 | )% |
| Fuel and purchased power costs                  |   |                        | 512.1    |   |            |   | 527.0    |            |   |   | 589.9 |   |   |   | (2.8 | )% |   |   | (10.7 | )% |
| Margins                                         |   |                        | 711.3    |   |            |   | 661.2    |            |   |   | 619.0 |   |   |   | 7.6 | % |   |   | 6.8 | % |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and maintenance expense               |   |                        | 377.5    |   |            |   | 352.5    |            |   |   | 336.2 |   |   |   | 7.1 | % |   |   | 4.8 | % |
| Restructuring expense                           |   |                        | (0.3     | )      |            |   | 7.8      |            |   |   | - |   |   |   | N/A |   |   |   | N/A |   |
| Depreciation and amortization expense           |   |                        | 88.2     |   |            |   | 84.1     |            |   |   | 78.5 |   |   |   | 4.9 | % |   |   | 7.1 | % |
| Taxes other than income taxes                   |   |                        | 40.8     |   |            |   | 42.0     |            |   |   | 40.4 |   |   |   | (2.9 | )% |   |   | 4.0 | % |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                |   |                        | 205.1    |   |            |   | 174.8    |            |   |   | 163.9 |   |   |   | 17.3 | % |   |   | 6.7 | % |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous income                            |   |                        | 0.8      |   |            |   | 4.5      |            |   |   | 5.8 |   |   |   | (82.2 | )% |   |   | (22.4 | )% |
| Interest expense                                |   |                        | (40.7    | )      |            |   | (38.6    | )               |   |   | (33.4 | ) |   |   | 5.4 | % |   |   | 15.6 | % |
| Other expense                                   |   |                        | (39.9    | )      |            |   | (34.1    | )               |   |   | (27.6 | ) |   |   | 17.0 | % |   |   | 23.6 | % |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                             |   | $                           | 165.2    |   |            | $      | 140.7    |            |   | $ | 136.3 |   |   |   | 17.4 | % |   |   | 3.2 | % |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales in kilowatt-hours                         |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Residential                               |   |                        | 2,846.9  |   |            |   | 2,771.4  |            |   |   | 2,794.8 |   |   |   | 2.7 | % |   |   | (0.8 | )% |
|  Commercial and industrial                 |   |                        | 7,914.4  |   |            |   | 7,596.5  |            |   |   | 8,060.4 |   |   |   | 4.2 | % |   |   | (5.8 | )% |
|  Wholesale                                 |   |                        | 4,810.8  |   |            |   | 4,817.7  |            |   |   | 4,529.0 |   |   |   | (0.1 | )% |   |   | 6.4 | % |
|  Other                                     |   |                        | 33.6     |   |            |   | 34.5     |            |   |   | 36.8 |   |   |   | (2.6 | )% |   |   | (6.3 | )% |
|    Total sales in kilowatt-hours |   |                        | 15,605.7 |   |            |   | 15,220.1 |            |   |   | 15,421.0 |   |   |   | 2.5 | % |   |   | (1.3 | )% |
|                                            |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Weather                                         |   |                        |     |   |            |   |     |            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Heating degree days                       |   |                        | 7,080    |   |            |   | 7,962    |            |   |   | 7,969 |   |   |   | (11.1 | )% |   |   | (0.1 | )% |
|  Cooling degree days                       |   |                        | 616      |   |            |   | 274      |            |   |   | 464 |   |   |   | 124.8 | % |   |   | (40.9 | )% |

| · | An approximate $16 million increase in revenues due to a 7.5% increase in sales volumes to large commercial and industrial customers, primarily related to changes in the business operations of WPS customers year over year.                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                       |
| · | The approximate $14 million positive impact of a retail electric rate increase, effective January 1, 2010.  This rate increase was necessary, in part, for recovery of higher operating expenses (as discussed below).                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                       |
| · | An approximate $13 million increase in revenues due to a 2.7% increase in sales volumes to residential customers and a 0.9% increase in sales volumes to small commercial and industrial customers, primarily related to warmer year-over-year weather during the cooling season as evidenced by the increase in cooling degree days. |
|   |                                                                                                                                                                                                                                                                                                                                       |
| · | An approximate $4 million increase in opportunity sales, made possible by the availability of low-cost energy from Weston 4.                                                                                                                                                                                                     |

----

|   |                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | These increases in regulated electric utility segment revenues were partially offset by an approximate $18 million decrease in revenues from wholesale customers, primarily due to lower fuel costs.  Fuel costs are passed directly through to wholesale customers in rates. |

| · | An approximate $26 million increase in margins driven by lower fuel and purchased power costs incurred during 2010 as compared with authorized fuel and purchased power cost recovery rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | The approximate $14 million positive impact of a retail electric rate increase, effective January 1, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | An approximate $7 million increase in margins due to a 2.7% increase in sales volumes to residential customers, primarily related to warmer year-over-year weather during the cooling season, as evidenced by the increase in cooling degree days.  Margins were impacted by the year-over-year increase in sales volumes because WPS reached the annual $14.0 million electric decoupling cap in the second quarter of 2010 and 2009 and remained over the cap through the end of both years.  Therefore, no additional decoupling deferral was allowed for additional shortfalls from authorized margin for the remainder of both years.  Under decoupling, WPS is allowed to defer (up to the established cap) the difference between its actual margin and the rate case authorized margin recognized from residential and small commercial and industrial customers. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | An approximate $7 million increase in margins due to a 7.5% increase in sales volumes to large commercial and industrial customers, primarily related to changes in the business operations of WPS customers year over year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | These increases in regulated electric utility segment margins were partially offset by an approximate $2 million decrease in margins from wholesale customers, primarily due to a decrease in sales volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| · | A $13.5 million increase in electric transmission expense.                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                |
| · | A $12.9 million increase in customer assistance expense related to payments made to the Focus on Energy program, which helps residents and businesses install cost-effective, energy-efficient, and renewable energy products. |
|   |                                                                                                                                                                                                                                |
| · | A $4.6 million increase in employee benefit costs, primarily related to an increase in pension and other postretirement benefit expenses, driven by the amortization of negative investment returns from prior years.          |
|   |                                                                                                                                                                                                                                |
| · | A $4.1 million increase in depreciation and amortization expense, primarily related to the Crane Creek Wind Farm being placed in service for accounting purposes in December 2009.                                        |
|   |                                                                                                                                                                                                                                |
| · | A $3.5 million increase in stock-based compensation expense.  See Note 17, "Stock-Based Compensation," for more information.                                                                                    |

----

|   |                                                                                       |
|--------|--------------------------------------------------------------------------------------------|
| · | These increases in regulated electric utility operating expenses were partially offset by: |
|   |                                                                                       |
|   | -                                                                                          | An $8.1 million year-over-year decrease in restructuring expenses related to a reduction in workforce.  See Note 3, "Restructuring Expense," for more information. |
|   |                                                                                       |   |
|   | -                                                                                          | A $6.0 million decrease in labor costs, driven by the reduction in workforce and company-wide furloughs implemented as part of previously announced cost management efforts. |
|   |                                                                                       |   |
|   | -                                                                                          | A $2.1 million decrease in electric maintenance expense, primarily related to a greater number of planned outages at WPS's generation plants during 2009 compared with 2010. |

| · | An approximate $22 million year-over-year reduction in revenues 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 21, "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 revenues, 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. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 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 revenues.  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 revenues were partially offset by: |
|   |                                                                                     |
|   | -                                                                                        | An approximate $19 million increase in revenues 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 revenues 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, for WPS. |

| · | An approximate $20 million year-over-year increase in margins 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 margins 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, for WPS.                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| · | An approximate $11 million year-over-year increase in margins 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 margins was partially offset by an approximate $3 million year-over-year decrease in margins, 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 margins due to lower sales volumes, which was attributed to the general economic slowdown and cooler year-over-year weather during the cooling season. |

| · | 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 expense driven by negative pension investment returns in 2008, as well as higher heath care related expenses in 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 in Iowa. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                 |
| · | 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.                                                                                |

|                                         |   |                        |   |   |  Change in |   |   |  Change in |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                                         |   | Year Ended December 31 |   |   |  2010 Over |   |   |  2009 Over |   |
|                                         |   | 2010                        |   |   | 2009            |   |   | 2008            |   |   | 2009 |   |   | 2008 |   |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |
| Revenues                                     |   | $                           | 365.6  |   |            | $      | 395.6  |            |   | $ | 539.4 |   |   |   | (7.6 | )% |   |   | (26.7 | )% |
| Natural gas purchased for resale             |   |                        | 211.2  |   |            |   | 241.7  |            |   |   | 382.3 |   |   |   | (12.6 | )% |   |   | (36.8 | )% |
| Margins                                      |   |                        | 154.4  |   |            |   | 153.9  |            |   |   | 157.1 |   |   |   | 0.3 | % |   |   | (2.0 | )% |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating and maintenance expense            |   |                        | 77.3   |   |            |   | 71.1   |            |   |   | 66.8 |   |   |   | 8.7 | % |   |   | 6.4 | % |
| Restructuring expense                        |   |                        | -      |   |            |   | 2.6    |            |   |   | - |   |   |   | (100.0 | )% |   |   | N/A |   |
| Depreciation and amortization expense        |   |                        | 22.4   |   |            |   | 23.0   |            |   |   | 20.9 |   |   |   | (2.6 | )% |   |   | 10.0 | % |
| Taxes other than income taxes                |   |                        | 5.4    |   |            |   | 6.8    |            |   |   | 6.2 |   |   |   | (20.6 | )% |   |   | 9.7 | % |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                             |   |                        | 49.3   |   |            |   | 50.4   |            |   |   | 63.2 |   |   |   | (2.2 | )% |   |   | (20.3 | )% |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous income                         |   |                        | 0.2    |   |            |   | 0.6    |            |   |   | 2.4 |   |   |   | (66.7 | )% |   |   | (75.0 | )% |
| Interest expense                             |   |                        | (9.6   | )      |            |   | (10.5  | )               |   |   | (9.0 | ) |   |   | (8.6 | )% |   |   | 16.7 | % |
| Other expense                                |   |                        | (9.4   | )      |            |   | (9.9   | )               |   |   | (6.6 | ) |   |   | (5.1 | )% |   |   | 50.0 | % |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes                          |   | $                           | 39.9   |   |            | $      | 40.5   |            |   | $ | 56.6 |   |   |   | (1.5 | )% |   |   | (28.4 | )% |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Throughput in therms                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Residential                            |   |                        | 222.1  |   |            |   | 242.8  |            |   |   | 258.1 |   |   |   | (8.5 | )% |   |   | (5.9 | )% |
|  Commercial and industrial              |   |                        | 125.9  |   |            |   | 137.2  |            |   |   | 147.9 |   |   |   | (8.2 | )% |   |   | (7.2 | )% |
|  Interruptible                          |   |                        | 10.3   |   |            |   | 8.9    |            |   |   | 20.1 |   |   |   | 15.7 | % |   |   | (55.7 | )% |
|  Interdepartmental                      |   |                        | 13.9   |   |            |   | 9.5    |            |   |   | 28.6 |   |   |   | 46.3 | % |   |   | (66.8 | )% |
|  Transport                              |   |                        | 332.7  |   |            |   | 339.3  |            |   |   | 354.8 |   |   |   | (1.9 | )% |   |   | (4.4 | )% |
|    Total throughput in therms |   |                        | 704.9  |   |            |   | 737.7  |            |   |   | 809.5 |   |   |   | (4.4 | )% |   |   | (8.9 | )% |
|                                         |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Weather                                      |   |                        |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
|  Heating degree days                    |   |                        | 7,080  |   |            |   | 7,962  |            |   |   | 7,969 |   |   |   | (11.1 | )% |   |   | (0.1 | )% |

| · | An approximate $34 million decrease in revenues as a result of the 4.4% lower natural gas throughput volumes, related to: |
|--------|--------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                           |   |
|   | -                                                                                                                              | An approximate $25 million decrease as a result of warmer year-over-year weather during the heating season, as evidenced by the 11.1% decrease in heating degree days. |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | -                                                                                                                                                                                                                                                                                                                                                                                           | An approximate $9 million decrease driven by lower weather-normalized volumes.  Residential customer volumes decreased, which WPS attributes to energy conservation and efficiency efforts.   Commercial and industrial customers' sales volumes also decreased, which WPS attributes to reduced demand related to changes in customers' business operations and conservation and efficiency efforts. |
|   |                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| · | An approximate $9 million decrease in revenues as a result of an approximate 5% year-over-year decrease in the average per-unit cost of natural gas sold.  Prudently incurred natural gas commodity costs are passed directly through to customers in current rates.                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| · | Partially offsetting these decreases was the approximate $13 million positive impact of a retail natural gas distribution rate increase effective January 1, 2010.  This rate increase was necessary, in part, to recover higher operating expenses (as discussed below).  See Note 21, "Regulatory Environment," for more information on this rate increase. |

| · | An approximate $13 million decrease in margins driven by the lower natural gas throughput volumes, resulting from: |
|--------|-------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                    |
|   | -                                                                                                                       | An approximate $9 million decrease related to warmer year-over-year weather during the heating season. |
|   |                                                                                                                    |   |
|   | -                                                                                                                       | An approximate $4 million decrease related to lower weather-normalized volumes, primarily attributed to customer conservation, efficiency efforts, and general economic conditions. |

| · | An $8.3 million increase in customer assistance expense related to payments made to the Focus on Energy program, which helps residents and businesses install cost-effective, energy-efficient, and renewable energy products. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                |
| · | A $2.2 million increase in employee benefit costs, primarily related to an increase in pension expense, driven by the amortization of negative investment returns from prior years.                                            |
|   |                                                                                                                                                                                                                                |
| · | These increases in operating expense were partially offset by:                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                |
|   | -                                                                                                                                                                                                                                   | A $2.7 million decrease in bad debt expense, primarily related to the positive impact lower volumes and lower energy prices had on accounts receivable balances, as well as a decrease in past due account balances. |
|   |                                                                                                                                                                                                                                |
|   | -                                                                                                                                                                                                                                   | A $2.6 million decrease in restructuring expenses recorded in 2009 related to a reduction in workforce.  See Note 3, "Restructuring Expense," for more information. |
|   |                                                                                                                                                                                                                                |   |
|   | -                                                                                                                                                                                                                                   | A $1.4 million decrease in taxes other than income taxes related to lower gross receipt taxes. |

----

|   |   |                                                                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | -      | A $1.0 million decrease in labor costs as a result of the reduction in workforce and company-wide furloughs implemented as part of previously announced cost management efforts. |

| · | An approximate $95 million decrease in revenues 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 revenues 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 energy 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 revenues 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, subject to an annual cap, to defer the difference between the actual and rate case authorized delivery charge components of margin from certain customers and adjust future rates in accordance with rules specified by the PSCW. |

| · | An approximate $8 million year-over-year decrease in margins 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 margins during 2009. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | The decrease in margins 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 February 2009.                                         |

| · | 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.                                                                               |

|                |   |                              |   |   |  Change in |   |   |  Change in |   |
|---------------------|--------|-----------------------------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                |   |  Year Ended December 31 |   |   |  2010 Over |   |   |  2009 Over |   |
| (Millions)          |   | 2010                              |   |   | 2009            |   |   | 2008            |   |   | 2009 |   |   | 2008 |   |
|                |   |                              |   |   |            |   |   |            |   |   |   |   |   |   |   |
| Operating income    |   | $                                 | 0.6    |   |            | $      | 0.4    |            |   | $ | 0.7 |   |   |   | 50.0 | % |   |   | (42.9 | )% |
| Other income        |   |                              | 7.3    |   |            |   | 6.8    |            |   |   | 11.8 |   |   |   | 7.4 | % |   |   | (42.4 | )% |
|                |   |                              |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes |   | $                                 | 7.9    |   |            | $      | 7.2    |            |   | $ | 12.5 |   |   |   | 9.7 | % |   |   | (42.4 | )% |

|               |   | Year Ended December 31 |   |
|--------------------|--------|-----------------------------|--------|
|               |   | 2010                        |   |   | 2009 |   |   | 2008 |   |
| Effective Tax Rate |   |                        | 36.6   | % |   |   | 36.1 | % |   |   | 35.6 | % |

----

| · | A $185.7 million net decrease in cash provided by working capital, driven by: |
|--------|------------------------------------------------------------------------------------|

----

|   |                                                                                                              |                                                                                                                                                                                                                                            |
|--------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | -                                                                                                                 | An $82.1 million year-over-year increase in cash used for other current liabilities, which was driven by a year-over-year increase in refunds to customers, primarily related to fuel cost over-collections.                               |
|   |                                                                                                              |                                                                                                                                                                                                                                            |
|   | -                                                                                                                 | A $1.4 million increase in accounts receivable and accrued unbilled revenues during 2010, compared with a $58.1 million decrease in accounts receivable and accrued unbilled revenues during 2009, mainly due to changes in natural gas prices. |
|   |                                                                                                              |                                                                                                                                                                                                                                            |
|   | -                                                                                                                 | A $43.7 million year-over-year decrease in cash generated from reduced inventory levels due to changes in natural gas prices.                                                                                                              |
|   |                                                                                                              |                                                                                                                                                                                                                                            |
| · | An $83.4 million year-over-year increase in contributions to pension and other postretirement benefit plans. |

| · | A $260.5 million decrease in 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 changes was a $25.8 million year-over-year decrease in net recoveries of regulatory assets and liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| Reportable Segment (millions) |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Electric utility              |   | $      | 62.7   |   |   | $      | 235.2  |   |   | $ | 190.0 |   |
| Natural gas utility           |   |   | 22.8   |   |   |   | 24.3   |   |   |   | 85.4 |   |
| WPS consolidated              |   | $      | 85.5   |   |   | $      | 259.5  |   |   | $ | 275.4 |   |

----

| Credit Ratings       |   | Standard & Poor's |   |   | Moody's |   |
|----------------------|--------|-----------------------|--------|--------|---------|--------|
| Issuer credit rating |   |                  | A-     |   |    |   | A2 |   |
| First mortgage bonds |   |                  | N/A    |   |    | Aa3    |   |
| Senior secured debt  |   |                  | A      |   |    | Aa3    |   |
| Preferred stock      |   | BBB                   |   |   | Baa1    |   |
| Commercial paper     |   |                  | A-2    |   |    |   | P-1 |   |
| Credit facility      |   |                  | N/A    |   |    |   | A2 |   |

----

|                                                                                        |   |                   |    |   |                   |   |   |         |   |   |         |   |   |                |   |
|---------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|---------------------|--------|
|                                                                                        |   |                   |    |   | Payments Due By Period |   |
| (Millions)                                                                                  |   | Total AmountsCommitted |    |   | 2011                   |   |   | 2012 to 2013 |   |   | 2014 to 2015 |   |   | 2016 and Thereafter |   |
|                                                                                        |   |                   |    |   |                   |   |   |         |   |   |         |   |   |                |   |
| Long-term debt principal and interestpayments (1)                                           |   | $                      | 1,232.6 |   |                   | $      | 194.6  |         |   | $      | 366.2        |   |   | $                   | 174.4  |   |   | $ | 497.4 |   |
| Operating lease obligations                                                                 |   |                   | 22.4    |   |                   |   | 2.4    |         |   |   | 3.3          |   |   |                | 1.7    |   |   |   | 15.0 |   |
| Commodity purchase obligations (2)                                                          |   |                   | 1,728.2 |   |                   |   | 311.9  |         |   |   | 591.3        |   |   |                | 302.7  |   |   |   | 522.3 |   |
| Purchase orders (3)                                                                         |   |                   | 99.4    |   |                   |   | 96.8   |         |   |   | 2.6          |   |   |                | -      |   |   |   | - |   |
| Pension and other postretirement      funding obligations (4) |   |                   | 276.6   |   |                   |   | 73.3   |         |   |   | 94.4         |   |   |                | 31.7   |   |   |   | 77.2 |   |
| Total contractual cash obligations                                                          |   | $                      | 3,359.2 |   |                   | $      | 679.0  |         |   | $      | 1,057.8      |   |   | $                   | 510.5  |   |   | $ | 1,111.9 |   |

| (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 reasonably be estimated beyond 2013. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| (Millions)                                                      |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|
| Environmental projects                                          |   | $      | 316.8  |   |
| Electric and natural gas distribution projects                  |   |   | 123.5  |   |
| Electric and natural gas delivery and customer service projects |   |   | 32.8   |   |
| Other projects                                                  |   |   | 123.9  |   |
| Total capital expenditures                                      |   | $      | 597.0  |   |

----

----

----

----

| Actuarial Assumption(Millions, except percentages) |   | Percentage-Point Change in Assumption |   |   | Impact on Projected BenefitObligation |   |   | Impact on 2010 Pension Cost |   |
|----------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|-----------------------------|--------|
| Discount rate                                      |   |                                  | (0.5   | )      |                                  | $      | 32.9   |                        |   | $ | 2.5 |   |
| Discount rate                                      |   |                                  | 0.5    |   |                                  |   | (30.4  | )                           |   |   | (2.4 | ) |
| Rate of return on plan assets                      |   |                                  | (0.5   | )      |                                  |   | N/A    |                        |   |   | 2.4 |   |
| Rate of return on plan assets                      |   |                                  | 0.5    |   |                                  |   | N/A    |                        |   |   | (2.4 | ) |

| Actuarial Assumption(Millions, except percentages) |   | Percentage-Point Change in Assumption |   |   | Impact on Postretirement Benefit Obligation |   |   | Impact on 2010 Postretirement Benefit Cost |   |
|----------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------------|--------|--------|--------------------------------------------|--------|
| Discount rate                                      |   |                                  | (0.5   | )      |                                        | $      | 20.0   |                                       |   | $ | 1.8 |   |
| Discount rate                                      |   |                                  | 0.5    |   |                                        |   | (17.8  | )                                          |   |   | (1.5 | ) |
| Health care cost trend rate                        |   |                                  | (1.0   | )      |                                        |   | (33.2  | )                                          |   |   | (4.8 | ) |
| Health care cost trend rate                        |   |                                  | 1.0    |   |                                        |   | 41.0   |                                       |   |   | 6.0 |   |
| 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. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|-----------------------------------------------------------------|

----

----

ITEM 8

----

|                                                                                                      |   |   |    |   |   |   |    |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| B. CONSOLIDATED STATEMENTS OF INCOME                                                                 |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |
| Year Ended December 31                                                                                    |   |   |    |   |   |   |    |   |   |
| (Millions)                                                                                                |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |
| Operating revenues                                                                                        |   | $      | 1,589.0 |   |   | $      | 1,583.8 |   |   | $ | 1,748.4 |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Cost of fuel, natural gas, and purchased power                                                            |   |   | 722.5   |   |   |   | 767.8   |   |   |   | 971.3 |   |
| Operating and maintenance expense                                                                         |   |   | 455.0   |   |   |   | 424.2   |   |   |   | 403.2 |   |
| Restructuring expense                                                                                     |   |   | (0.3    | )      |   |   | 10.4    |   |   |   | - |   |
| Depreciation and amortization expense                                                                     |   |   | 110.6   |   |   |   | 107.1   |   |   |   | 99.5 |   |
| Taxes other than income taxes                                                                             |   |   | 46.2    |   |   |   | 48.7    |   |   |   | 46.6 |   |
| Operating income                                                                                          |   |   | 255.0   |   |   |   | 225.6   |   |   |   | 227.8 |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Miscellaneous income                                                                                      |   |   | 12.4    |   |   |   | 16.8    |   |   |   | 21.6 |   |
| Interest expense                                                                                          |   |   | (54.4   | )      |   |   | (54.0   | )      |   |   | (44.0 | ) |
| Other expense                                                                                             |   |   | (42.0   | )      |   |   | (37.2   | )      |   |   | (22.4 | ) |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Income before taxes                                                                                       |   |   | 213.0   |   |   |   | 188.4   |   |   |   | 205.4 |   |
| Provision for income taxes                                                                                |   |   | 78.0    |   |   |   | 68.0    |   |   |   | 73.1 |   |
| Net income                                                                                                |   |   | 135.0   |   |   |   | 120.4   |   |   |   | 132.3 |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| Preferred stock dividend requirements                                                                     |   |   | 3.1     |   |   |   | 3.1     |   |   |   | 3.1 |   |
| Net income attributed to common shareholder                                                               |   | $      | 131.9   |   |   | $      | 117.3   |   |   | $ | 129.2 |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
| The accompanying notes to the consolidated financial statements are an integral part of these statements. |   |   |    |   |   |
|                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |

----

|                                                                                                      |   |   |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|          C.  CONSOLIDATED BALANCE SHEETS           |   |
|                                                                                                      |   |   |    |   |   |   |
| At December 31                                                                                            |   |   |    |   |   |   |
| (Millions)                                                                                                |   | 2010   |    |   | 2009   |   |
|                                                                                                      |   |   |    |   |   |   |
| Assets                                                                                                    |   |   |    |   |   |   |
| Cash and cash equivalents                                                                                 |   | $      | 71.4    |   |   | $      | 6.0 |   |
| Accounts receivable and accrued unbilled revenues, net of reserves of $3.1 and $5.0, respectively         |   |   | 203.9   |   |   |   | 203.6 |   |
| Receivables from related parties                                                                          |   |   | 4.2     |   |   |   | 8.1 |   |
| Inventories                                                                                               |   |   | 70.4    |   |   |   | 70.1 |   |
| Regulatory assets                                                                                         |   |   | 46.0    |   |   |   | 40.5 |   |
| Materials and supplies, at average cost                                                                   |   |   | 25.5    |   |   |   | 24.8 |   |
| Prepaid federal income tax                                                                                |   |   | 41.6    |   |   |   | 30.6 |   |
| Prepaid gross receipts tax                                                                                |   |   | 39.3    |   |   |   | 39.0 |   |
| Other current assets                                                                                      |   |   | 25.8    |   |   |   | 17.9 |   |
| Current assets                                                                                            |   |   | 528.1   |   |   |   | 440.6 |   |
|                                                                                                      |   |   |    |   |   |   |   |   |
| Property, plant, and equipment, net of accumulated depreciation of $1,213.8 and $1,182.0, respectively    |   |   | 2,345.7 |   |   |   | 2,379.8 |   |
| Regulatory assets                                                                                         |   |   | 379.0   |   |   |   | 362.0 |   |
| Receivables from related parties                                                                          |   |   | 13.7    |   |   |   | 10.5 |   |
| Goodwill                                                                                                  |   |   | 36.4    |   |   |   | 36.4 |   |
| Other long-term assets                                                                                    |   |   | 83.1    |   |   |   | 82.0 |   |
| Total assets                                                                                              |   | $      | 3,386.0 |   |   | $      | 3,311.3 |   |
|                                                                                                      |   |   |    |   |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                      |   |   |    |   |   |   |   |   |
| Short-term debt                                                                                           |   | $      | 10.0    |   |   | $      | 17.0 |   |
| Current portion of long-term debt                                                                         |   |   | 150.0   |   |   |   | - |   |
| Accounts payable                                                                                          |   |   | 102.8   |   |   |   | 109.0 |   |
| Payables to related parties                                                                               |   |   | 23.2    |   |   |   | 26.5 |   |
| Regulatory liabilities                                                                                    |   |   | 18.5    |   |   |   | 44.4 |   |
| Customer credit balances                                                                                  |   |   | 17.8    |   |   |   | 28.2 |   |
| Other current liabilities                                                                                 |   |   | 41.3    |   |   |   | 47.6 |   |
| Current liabilities                                                                                       |   |   | 363.6   |   |   |   | 272.7 |   |
|                                                                                                      |   |   |    |   |   |   |   |   |
| Long-term debt to parent                                                                                  |   |   | 8.6     |   |   |   | 9.3 |   |
| Long-term debt                                                                                            |   |   | 721.1   |   |   |   | 870.9 |   |
| Deferred income taxes                                                                                     |   |   | 427.9   |   |   |   | 294.2 |   |
| Deferred investment tax credits                                                                           |   |   | 9.2     |   |   |   | 9.8 |   |
| Regulatory liabilities                                                                                    |   |   | 255.9   |   |   |   | 234.2 |   |
| Environmental remediation liabilities                                                                     |   |   | 76.1    |   |   |   | 75.3 |   |
| Pension and other postretirement benefit obligations                                                      |   |   | 220.4   |   |   |   | 258.6 |   |
| Payables to related parties                                                                               |   |   | 9.0     |   |   |   | 9.0 |   |
| Other long-term liabilities                                                                               |   |   | 95.8    |   |   |   | 98.1 |   |
| Long-term liabilities                                                                                     |   |   | 1,824.0 |   |   |   | 1,859.4 |   |
|                                                                                                      |   |   |    |   |   |   |   |   |
| 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                                                                                |   |   | 626.7   |   |   |   | 640.2 |   |
| Retained earnings                                                                                         |   |   | 424.9   |   |   |   | 392.2 |   |
| Total liabilities and shareholders' equity                                                                |   | $      | 3,386.0 |   |   | $      | 3,311.3 |   |
|                                                                                                      |   |   |    |   |   |   |   |   |
| The accompanying notes to the consolidated financial statements are an integral part of these statements. |   |   |    |   |   |
|                                                                                                      |   |   |    |   |   |   |   |   |

----

|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------------|--------|---------|--------|--------|--------|---------|--------|
| D. CONSOLIDATED STATEMENTS OF CAPITALIZATION                                                         |   |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |
| At December 31                                                                                            |   |   |   |   |               |   |    |   |   |   |    |   |
| (Millions, except share amounts)                                                                          |   |   | 2010   |   |               | 2009   |    |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |
| 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                                                                                |   |   |   |   |               |   | 626.7   |   |   |   | 640.2   |   |
| Retained earnings                                                                                         |   |   |   |   |               |   |    |   | 424.9  |   |    |   | 392.2 |   |
| Total common stock equity                                                                                 |   |   |   |   |               |   | 1,147.2 |   |   |   | 1,128.0 |   |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |   |   |
| 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    |   |   |   | 3.4     |   |   |   | 3.8 |   |
|                                                                                                      |   |   | 7.35   | %      |               |   | 2016    |   |   |   | 5.2     |   |   |   | 5.5 |   |
| Total long-term debt to parent                                                                            |   |   |   |   |               |   |    | 8.6    |   |   |    | 9.3    |   |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| 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                                                               |   |   |   | (1.0   | )                  |   |    | (1.2   | )      |
| Total                                                                                                     |   |   |   |   |               |   |    |   |   |   | 871.1   |   |   |   | 870.9 |   |
| Current portion                                                                                           |   |   |   |   |               |   |    |   |   |   | (150.0  | )      |   |   | - |   |
| Total long-term debt                                                                                      |   |   |   |   |               |   |    | 721.1  |   |   |    | 870.9  |   |
| Total capitalization                                                                                      |   |   |   |   |               |   |    |   |   | $      | 1,928.1 |   |   | $ | 2,059.4 |   |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |
| The accompanying notes to the consolidated financial statements are an integral part of these statements. |   |
|                                                                                                      |   |   |   |   |               |   |    |   |   |   |    |   |   |   |   |   |

----

|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|---------|---------|--------------|--------|--------|---------------|--------|--------|----------------|--------|
| E. CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY                                            |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   | Additional    |   |   |           |   |
|                                                                                                      |   |  Comprehensive |   |   |   |    |    |  Common |   |   |  Paid in |   |   |  Retained |   |
| (Millions)                                                                                                |   | Income              |   |   | Total  |    |    | Stock        |   |   | Capital       |   |   | Earnings       |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |
| 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 |   |
| Net income attributed to common shareholder                                                               |   | $                   | 131.9  |   |   |    | 131.9   |         |   |   | -             |   |   |           | -      |   |   |   | 131.9 |   |
| Comprehensive income                                                                                      |   | $                   | 131.9  |   |   |    |    |         |   |   |          |   |   |           |   |   |   |   |   |   |
| Net return of capital to parent                                                                           |   |                |   |   |   |    | (15.0   | )            |   |   | -             |   |   |           | (15.0  | ) |   |   | - |   |
| Dividends to parent                                                                                       |   |                |   |   |   |    | (99.6   | )            |   |   | -             |   |   |           | -      |   |   |   | (99.6 | ) |
| Other                                                                                                     |   |                |   |   |   |    | 1.9     |         |   |   | -             |   |   |           | 1.5    |   |   |   | 0.4 |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |   |   |   |   |   |
| Balance at December 31, 2010                                                                              |   |                |   |   |   | $       | 1,147.2 |         |   | $      | 95.6          |   |   | $              | 626.7  |   |   | $ | 424.9 |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |   |   |   |   |   |
| The accompanying notes to the consolidated financial statements are an integral part of these statements. |   |
|                                                                                                      |   |                |   |   |   |    |    |         |   |   |          |   |   |           |   |   |   |   |   |   |

----

|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |
|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------|
|           F.  CONSOLIDATED STATEMENTS OF CASH FLOWS |
|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |
| Year Ended December 31                                                                                          |                                                                                                                |                                                                                                                |                                                                                      |
| (Millions)                                                                                                      | 2010                                                                                                                | 2009                                                                                                                | 2008                                                                                      |
| Operating Activities                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |
| Net Income                                                                                                      | $135.0                                                                                                              | $120.4                                                                                                              | $132.3                                                                                    |
| Adjustments to reconcile net income to net cash provided by operating activities                                |                                                                                                                |                                                                                                                |                                                                                      |
|                                                                                                            | Depreciation and amortization expense                                                                               | 110.6                                                                                                               | 107.1                                                                                     | 99.5                                                                                      |
|                                                                                                            | Refund of nonqualified decommissioning fund                                                                         |               (0.5)                           |               (0.5) |               (0.5) |
|                                                                                                            | Recoveries and refunds of other regulatory assets and liabilities                                                   | 10.8                                                                                                                | 12.2                                                                                      | 38.0                                                                                      |
|                                                                                                            | Deferred income taxes and investment tax credit                                                                     | 125.3                                                                                                               | 102.2                                                                                     | 12.6                                                                                      |
|                                                                                                            | Bad debt expense                                                                                                    | 7.3                                                                                                                 | 11.7                                                                                      | 9.4                                                                                       |
|                                                                                                            | Allowance for equity funds used during construction                                                                 | (1.0)                                                                                                               | (7.2)                                                                                     | (7.0)                                                                                     |
|                                                                                                            | Pension and other postretirement expense                                                                            | 24.2                                                                                                                | 14.0                                                                                      | 6.8                                                                                       |
|                                                                                                            | Pension and other postretirement contributions                                                                      | (93.8)                                                                                                              | (10.4)                                                                                    | (23.5)                                                                                    |
|                                                                                                            | Equity income, net of dividends                                                                                     | (1.2)                                                                                                               | (1.9)                                                                                     | (0.8)                                                                                     |
|                                                                                                            | Other                                                                                                               | 6.4                                                                                                                 | (14.7)                                                                                    | 23.4                                                                                      |
|                                                                                                            | Changes in working capital                                                                                          |                                                                                                                |                                                                                      |                                                                                      |
|                                                                                                            |                                                                                                                | Collateral on deposit                                                                                               | (2.4)                                                                                     | 11.1                                                                                      | (6.6)  |
|                                                                                                            |                                                                                                                | Accounts receivable and accrued unbilled revenues                                                                   | (1.4)                                                                                     | 58.1                                                                                      | (47.0) |
|                                                                                                            |                                                                                                                | Inventories                                                                                                         | 1.5                                                                                       | 45.2                                                                                      | (31.8) |
|                                                                                                            |                                                                                                                | Prepaid federal income taxes                                                                                        | (11.0)                                                                                    | (27.6)                                                                                    | 43.5   |
|                                                                                                            |                                                                                                                | Other current assets                                                                                                | (7.5)                                                                                     | (3.2)                                                                                     | (5.3)  |
|                                                                                                            |                                                                                                                | Accounts payable                                                                                                    | (1.1)                                                                                     | (1.0)                                                                                     | (74.7) |
|                                                                                                            |                                                                                                                | Accrued taxes                                                                                                       | 0.2                                                                                       | (0.7)                                                                                     | (3.8)  |
|                                                                                                            |                                                                                                                | Other current liabilities                                                                                           | (33.3)                                                                                    | 48.8                                                                                      | (4.1)  |
| Net cash provided by operating activities                                                                       | 268.1                                                                                                               | 463.6                                                                                                               | 160.4                                                                                     |
|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |
| Investing Activities                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |
| Capital expenditures                                                                                            | (85.5)                                                                                                              | (259.5)                                                                                                             | (275.4)                                                                                   |
| Proceeds from the sale or disposal of assets                                                                    | 3.4                                                                                                                 | 3.1                                                                                                                 | 7.3                                                                                       |
| Assets transferred to IBS                                                                                       |                    - |                    - | 8.5                                                                                       |
| Cash paid for transmission interconnection                                                                      |                    - |                    - | (17.4)                                                                                    |
| Proceeds received from transmission interconnection                                                             |                    - |                    - | 99.7                                                                                      |
| Other                                                                                                           |                                                                                                                | 4.0                                                                                                                 | 2.9                                                                                       | 4.7                                                                                       |
| Net cash used for investing activities                                                                          | (78.1)                                                                                                              | (253.5)                                                                                                             | (172.6)                                                                                   |
|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |
| Financing Activities                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |
| Short-term debt, net                                                                                            | (7.0)                                                                                                               | (43.0)                                                                                                              | (0.7)                                                                                     |
| Issuance of long-term debt                                                                                      |                    - |                    - | 125.0                                                                                     |
| Repayment of long-term debt                                                                                     |               (0.7)                           |               (0.6)                           |               (0.6) |
| Dividends to parent                                                                                             | (99.6)                                                                                                              | (96.7)                                                                                                              | (93.9)                                                                                    |
| Equity contributions from parent                                                                                |                    - |                    - | 55.0                                                                                      |
| Return of capital to parent                                                                                     | (15.0)                                                                                                              | (70.0)                                                                                                              | (65.0)                                                                                    |
| Preferred stock dividends                                                                                       | (3.1)                                                                                                               | (3.1)                                                                                                               | (3.1)                                                                                     |
| Other                                                                                                           |                                                                                                                | 0.8                                                                                                                 | 0.3                                                                                       | 0.4                                                                                       |
| Net cash (used for) provided by financing activities                                                            | (124.6)                                                                                                             | (213.1)                                                                                                             | 17.1                                                                                      |
| Net change in cash and cash equivalents                                                                         | 65.4                                                                                                                | (3.0)                                                                                                               | 4.9                                                                                       |
| Cash and cash equivalents at beginning of year                                                                  | 6.0                                                                                                                 | 9.0                                                                                                                 | 4.1                                                                                       |
| Cash and cash equivalents at end of year                                                                        | $71.4                                                                                                               | $6.0                                                                                                                | $9.0                                                                                      |
|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |
| The accompanying notes to WPS's consolidated financial statements are an integral part of these statements.     |                                                                                                                |
|                                                                                                            |                                                                                                                |                                                                                                                |                                                                                      |                                                                                      |   |

----

NOTES

| (Millions)                            |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash paid for interest                |   | $      | 49.1   |   |   | $      | 49.4   |   |   | $ | 42.7 |   |
| Cash (received) paid for income taxes |   |   | (30.3  | )      |   |   | (4.5   | )      |   |   | 59.1 |   |

----

----

| Annual Utility Composite Depreciation Rates |   | 2010   |   |   | 2009   |   |   | 2008 |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Electric                                    |   |   | 3.05   | %      |   |   | 3.04   | %    |   |   | 3.09 | % |
| Natural gas                                 |   |   | 3.28   | %      |   |   | 3.30   | %    |   |   | 3.39 | % |

----

----

----

|                        | Balance Sheet   |   | December 31, 2010 |   |
|-----------------------------|-----------------|--------|------------------------|--------|
| (Millions)                  | Presentation *  |   | Assets                 |   |   | Liabilities |   |
| FTRs                        | Other Current   |   | $                      | 2.2    |   |   | $ | 0.2 |   |
| Natural gas contracts       | Other Current   |   |                   | 0.4    |   |   |   | 2.3 |   |
| Petroleum product contracts | Other Current   |   |                   | 0.3    |   |   |   | - |   |
| Coal contract               | Other Current   |   |                   | -      |   |   |   | 1.2 |   |
| Coal contract               | Other Long-term |   |                   | 3.7    |   |   |   | - |   |
| Total commodity contracts   | Other Current   |   | $                      | 2.9    |   |   | $ | 3.7 |   |
| Total commodity contracts   | Other Long-term |   | $                      | 3.7    |   |   | $ | - |   |

| * | Assets and liabilities from risk management activities are classified as current or long-term based upon the maturities of the underlying contracts. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                | Balance Sheet  |   | December 31, 2009 |   |
|---------------------|----------------|--------|------------------------|--------|
| (Millions)          | Presentation * |   | Assets                 |   |   | Liabilities |   |
| Commodity contracts | Other Current  |   | $                      | 5.0    |   |   | $ | 2.5 |   |

| * | Assets and liabilities from risk management activities are classified as current or long-term based upon the maturities of the underlying contracts. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Millions)                 | Financial Statement Presentation                       |   | 2010   |   |
|----------------------------|--------------------------------------------------------|--------|--------|--------|
| FTRs                       | Balance Sheet – Regulatory assets (current)      |   | $      | 0.9    |   |
| FTRs                       | Balance Sheet – Regulatory liabilities (current) |   |   | (2.1   | ) |
| Natural gas contracts      | Balance Sheet – Regulatory assets (current)      |   |   | (1.4   | ) |
| Petroleum product contract | Balance Sheet – Regulatory liabilities (current) |   |   | 0.1    |   |
| Coal contract              | Balance Sheet – Regulatory assets (current)      |   |   | (1.2   | ) |
| Coal contract              | Balance Sheet – Regulatory liability (long-term) |   |   | 3.7    |   |

| (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    |   |

|                              |   | December 31, 2010 |     |   | December 31, 2009 |   |
|-----------------------------------|--------|------------------------|----------|--------|------------------------|--------|
| Commodity                         |   | Purchases              |     |   | Other Transactions     |   |   | Purchases |   |   | Other Transactions |   |
| Natural gas (millions of therms)  |   |                   | 100.6    |   |                   |   | N/A |   |   |   | 54.6 |   |   |   | N/A |   |
| FTRs (millions of kilowatt-hours) |   |                   | N/A      |   |                   |   | 5,645.3 |   |   |   | N/A |   |   |   | 4,306.0 |   |
| Petroleum products (barrels)      |   |                   | 44,648.0 |   |                   |   | N/A |   |   |   | 15,144.0 |   |   |   | N/A |   |
| Coal contract (millions of tons)  |   |                   | 4.9      |   |                   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

| (Millions)                         |   | December 31, 2010 |   |   | December 31, 2009 |   |
|------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
| Cash collateral provided to others |   | $                      | 3.7    |   |                   | $      | 1.9 |   |

| (Millions)                |   | 2010   |   |   | 2009   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|
| Natural gas utility       |   | $      | -      |   |   | $      | 2.6 |   |
| Electric utility          |   |   | (0.3   | )      |   |   | 7.8 |   |
| Total restructuring costs |   | $      | (0.3   | )      |   | $      | 10.4 |   |

| (Millions)                                                |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Accrued restructuring costs at beginning of period        |   | $      | 10.7   |   |   | $      | - |   |
| Add: Adjustments to accrual during the period             |   |   | -      | *      |   |   | 10.7 | * |
| Deduct: Cash payments                                     |   |   | 7.4    |   |   |   | - |   |
| Deduct: Payments to IBS for allocated restructuring costs |   |   | 3.3    |   |   |   | - |   |
| Accrued restructuring costs at end of period              |   | $      | -      |   |   | $      | 10.7 |   |

| * | $0.3 million of restructuring costs were billed to certain companies in both 2010 and 2009 in accordance with provisions in the operating agreements with these companies that allow WPS to recover a portion of its administrative and general expenses. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Millions)                                |   | 2010   |    |   | 2009   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Electric utility                          |   | $      | 2,855.1 |   |   | $      | 2,854.0 |   |
| Natural gas utility                       |   |   | 671.5   |   |   |   | 671.9 |   |
| Total utility plant                       |   |   | 3,526.6 |   |   |   | 3,525.9 |   |
| Less:  Accumulated depreciation |   |   | 1,206.2 |   |   |   | 1,174.6 |   |
| Net                                       |   |   | 2,320.4 |   |   |   | 2,351.3 |   |
| Construction work in progress             |   |   | 18.1    |   |   |   | 20.5 |   |
| Net utility plant                         |   |   | 2,338.5 |   |   |   | 2,371.8 |   |
|                                      |   |   |    |   |   |   |   |   |
| Nonutility plant                          |   |   | 14.8    |   |   |   | 15.4 |   |
| Less:  Accumulated depreciation |   |   | 7.6     |   |   |   | 7.4 |   |
| Net nonutility plant                      |   |   | 7.2     |   |   |   | 8.0 |   |
|                                      |   |   |    |   |   |   |   |   |
| Total property, plant, and equipment      |   | $      | 2,345.7 |   |   | $      | 2,379.8 |   |

----

| (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  |   |                             |   | 65.8   |                               |   |          | 335.2                    |   |   |   | 105.0 |   |
| Utility plant in service                         |   | $             | 614.7  |   |                             | $      | 18.3   |                               |   | $             | 165.3                    |   |   | $ | 38.5 |   |
| Accumulated depreciation                         |   | $             | 75.9   |   |                             | $      | 10.2   |                               |   | $             | 103.4                    |   |   | $ | 24.4 |   |
| In-service date                                  |   |          | 2008   |   |                             |   | 1993   |                               |   | 1975 and 1978 |                     |   |   | 1969 |   |

| * | On February 1, 2011, the joint owner of this facility sold all of its ownership interest to WPS, making WPS the sole owner. |
|---|----------------------------------------------------------------------------------------------------------------------------------|

----

| (Millions)                                                        |   | 2010   |   |   | 2009   |   |   | See Note |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
|                                                              |   |   |   |   |   |   |   |     |   |
| Regulatory assets                                                 |   |   |   |   |   |   |   |     |   |
| Unrecognized pension and other postretirement benefit costs       |   | $      | 222.8  |   |   | $      | 201.7  |     |   |   | 14 |   |
| Environmental remediation costs (net of insurance recoveries) (1) |   |   | 72.7   |   |   |   | 74.2   |     |   |   | 12 |   |
| Decoupling                                                        |   |   | 43.5   |   |   |   | 21.0   |     |   |   | 21 |   |
| De Pere Energy Center (2)                                    |   |   | 31.0   |   |   |   | 33.4   |     |   |   |   |   |
| Weston 3 lightning strike (1) (3)                            |   |   | 14.5   |   |   |   | 18.1   |     |   |   |   |   |
| Income tax related items                                          |   |   | 8.4    |   |   |   | 8.1    |     |   |   | 11 |   |
| Energy costs receivable through rate adjustments                  |   |   | 6.8    |   |   |   | 5.4    |     |   |   | 21 |   |
| Asset retirement obligations                                      |   |   | 5.6    |   |   |   | 4.8    |     |   |   | 10 |   |
| Costs of previously owned nuclear plant (4)                       |   |   | 4.7    |   |   |   | 14.3   |     |   |   |   |   |
| Other                                                             |   |   | 15.0   |   |   |   | 21.5   |     |   |   |   |   |
| Total                                                             |   | $      | 425.0  |   |   | $      | 402.5  |     |   |   |   |   |
| Balance Sheet Presentation                                        |   |   |   |   |   |   |   |     |   |   |   |   |
| Current                                                           |   | $      | 46.0   |   |   | $      | 40.5   |     |   |   |   |   |
| Long-term                                                         |   |   | 379.0  |   |   |   | 362.0  |     |   |   |   |   |
| Total                                                             |   | $      | 425.0  |   |   | $      | 402.5  |     |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |     |   |   |   |   |
| Regulatory liabilities                                            |   |   |   |   |   |   |   |     |   |   |   |   |
| Removal costs (5)                                                 |   | $      | 226.8  |   |   | $      | 211.9  |     |   |   |   |   |
| Unrecognized pension and other postretirement benefit costs       |   |   | 19.8   |   |   |   | 22.2   |     |   |   | 14 |   |
| Energy costs refundable through rate adjustments                  |   |   | 15.6   |   |   |   | 33.2   |     |   |   | 21 |   |
| Other                                                             |   |   | 12.2   |   |   |   | 11.3   |     |   |   |   |   |
| Total                                                             |   | $      | 274.4  |   |   | $      | 278.6  |     |   |   |   |   |
| Balance Sheet Presentation                                        |   |   |   |   |   |   |   |     |   |   |   |   |
| Current                                                           |   | $      | 18.5   |   |   | $      | 44.4   |     |   |   |   |   |
| Long-term                                                         |   |   | 255.9  |   |   |   | 234.2  |     |   |   |   |   |
| Total                                                             |   | $      | 274.4  |   |   | $      | 278.6  |     |   |   |   |   |

| (1) | Not earning a return.  The carrying costs associated with these regulatory assets are borne by Integrys Energy Group's shareholders. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Prior to WPS purchasing the De Pere Energy Center, WPS had a long-term power purchase contract with the De Pere Energy Center that was accounted for as a capital lease.  As a result of the purchase, the capital lease obligation was reversed and the difference between the capital lease asset and the purchase price was recorded as a regulatory asset.  WPS is authorized recovery of this regulatory asset over a 20-year period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | In 2007, a lightning strike caused significant damage to the Weston 3 generating facility.  The PSCW approved the deferral of the incremental fuel and purchased power expenses, as well as the non-fuel operating and maintenance expenditures incurred as a result of the outage that were not covered by insurance.  WPS is authorized recovery of this regulatory asset over a six-year period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | In 2005, a previously jointly owned nuclear plant at WPS was temporarily removed from service after a potential design weakness was identified in its auxiliary feedwater system.  WPS is authorized recovery of this regulatory asset over a five-year period. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Represents amounts collected from customers to cover the future removal of property, plant, and equipment. |
|-----|------------------------------------------------------------------------------------------------------------|

----

| Year ending December 31 |   |   |   |
|------------------------------|--------|--------|--------|
| (Millions)                   |   |   |   |
| 2011                         |   | $      | 2.4    |   |
| 2012                         |   |   | 1.6    |   |
| 2013                         |   |   | 1.7    |   |
| 2014                         |   |   | 1.0    |   |
| 2015                         |   |   | 0.7    |   |
| Later years                  |   |   | 15.0   |   |
| Total payments               |   | $      | 22.4   |   |

| (Millions, except for percentages)                            |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Commercial paper outstanding                                  |   |   | -      |   |   | $      | 7.0    |   |   | $ | 50.0 |   |
| Average discount rate on outstanding commercial paper         |   |   | -      |   |   |   | 0.22   | %      |   |   | 5.27 | % |
| Short-term notes payable outstanding                          |   | $      | 10.0   |   |   | $      | 10.0   |   |   | $ | 10.0 |   |
| Average interest rate on short-term notes payable outstanding |   |   | 0.32   | %      |   |   | 0.18   | %      |   |   | 1.86 | % |

| (Millions)                                             |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Average amount of commercial paper outstanding         |   | $      | 0.1    |   |   | $      | 3.2    |   |   | $ | 26.2 |   |
| Average amount of short-term notes payable outstanding |   |   | 10.0   |   |   |   | 10.0   |   |   |   | 10.0 |   |

----

| (Millions)                                                  | Maturity |   | 2010   |   |   | 2009   |   |
|-------------------------------------------------------------|----------|--------|--------|--------|--------|--------|--------|
| Revolving credit facility (1)                               | 04/23/13 |   | $      | 115.0  |   |   | $      | - |   |
| Revolving credit facility (2)                               | 06/02/10 |   |   | -      |   |   |   | 115.0 |   |
| Revolving short-term notes payable (3)                      | 05/13/11 |   |   | 10.0   |   |   |   | 10.0 |   |
|                                                        |     |   |   |   |   |   |   |   |   |
| Total short-term credit capacity                            |     |   |   | 125.0  |   |   |   | 125.0 |   |
|                                                        |     |   |   |   |   |   |   |   |   |
| Less:                                                       |     |   |   |   |   |   |   |   |   |
| Letters of credit issued inside credit facilities           |     |   |   | 0.2    |   |   |   | 3.2 |   |
| Loans outstanding under credit agreements and notes payable |     |   |   | 10.0   |   |   |   | 10.0 |   |
| Commercial paper outstanding                                |     |   |   | -      |   |   |   | 7.0 |   |
|                                                        |     |   |   |   |   |   |   |   |   |
| Available capacity under existing agreements                |     |   | $      | 114.8  |   |   | $      | 104.8 |   |

| (1) | In April 2010, WPS entered into a new revolving credit agreement to provide support for its commercial paper borrowing program. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (2) | This facility was replaced with a new revolving credit agreement in April 2010.  Upon entering into the new agreement, the maturing facility was terminated. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This Note is renewed every six months and is used for general corporate purposes. |
|-----|----------------------------------------------------------------------------------------|

----

| Year ending December 31 (Millions) |   |   |   |
|----------------------------------------------|--------|--------|--------|
| 2011                                         |   | $      | 150.0  |   |
| 2012                                         |   |   | 150.0  |   |
| 2013                                         |   |   | 147.0  |   |
| 2014                                         |   |   | -      |   |
| 2015                                         |   |   | 125.0  |   |
| Later years                                  |   |   | 300.1  |   |
| Total payments                               |   | $      | 872.1  |   |

| (Millions)                                             |   |   |   |
|--------------------------------------------------------|--------|--------|--------|
| 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   |   |
| Accretion                                              |   |   | 1.0    |   |
| Asset retirement obligations at December 31, 2010 |   | $      | 18.8   |   |

| * | 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)                                                            |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                  |   |   |   |   |   |   |
| Deferred income tax assets                                            |   |   |   |   |   |   |
| Employee benefits                                                     |   | $      | 4.4    |   |   | $      | 45.3 |   |
| Other                                                                 |   |   | 5.2    |   |   |   | 2.9 |   |
| Total deferred income tax assets                                      |   | $      | 9.6    |   |   | $      | 48.2 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Deferred income tax liabilities                                       |   |   |   |   |   |   |   |   |
| Plant-related                                                         |   | $      | 382.4  |   |   | $      | 290.3 |   |
| Regulatory deferrals                                                  |   |   | 30.2   |   |   |   | 29.6 |   |
| Deferred income                                                       |   |   | 20.8   |   |   |   | 20.7 |   |
| Total deferred income tax liabilities                                 |   | $      | 433.4  |   |   | $      | 340.6 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Consolidated Balance Sheet presentation                               |   |   |   |   |   |   |   |   |
| Current deferred income tax assets - included in other current assets |   | $      | 4.1    |   |   | $      | 1.8 |   |
| Long-term deferred income tax liabilities                             |   |   | 427.9  |   |   |   | 294.2 |   |
| Net deferred income tax liabilities                                   |   | $      | 423.8  |   |   | $      | 292.4 |   |

----

|                               |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (Millions, except for percentages) |   | Rate   |   |   | Amount |   |   | Rate   |   |   | Amount |   |   | Rate |   |   | Amount |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statutory federal income tax       |   |   | 35.0   | %      |   | $      | 74.5   |   |   |   | 35.0 | % |   | $ | 66.0 |   |   |   | 35.0 | % |   | $ | 71.9 |   |
| State income taxes, net            |   |   | 4.8    |   |   |   | 10.3   |   |   |   | 5.2 |   |   |   | 9.7 |   |   |   | 4.3 |   |   |   | 8.9 |   |
| Federal tax credits                |   |   | (2.8   | )      |   |   | (5.9   | )      |   |   | (0.2 | ) |   |   | (0.3 | ) |   |   | - |   |   |   | - |   |
| Other differences, net             |   |   | (0.4   | )      |   |   | (0.9   | )      |   |   | (3.9 | ) |   |   | (7.4 | ) |   |   | (3.7 | ) |   |   | (7.7 | ) |
| Effective income tax               |   |   | 36.6   | %      |   | $      | 78.0   |   |   |   | 36.1 | % |   | $ | 68.0 |   |   |   | 35.6 | % |   | $ | 73.1 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current provision                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                            |   |   |   |   |   | $      | (38.7  | )      |   |   |   |   |   | $ | (36.1 | ) |   |   |   |   |   | $ | 46.0 |   |
| State                              |   |   |   |   |   |   | (8.8   | )      |   |   |   |   |   |   | 2.7 |   |   |   |   |   |   |   | 14.5 |   |
| Total current provision            |   |   |   |   |   |   | (47.5  | )      |   |   |   |   |   |   | (33.4 | ) |   |   |   |   |   |   | 60.5 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred provision                 |   |   |   |   |   |   | 125.9  |   |   |   |   |   |   |   | 103.1 |   |   |   |   |   |   |   | 13.8 |   |
| Unrecognized tax benefits          |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | (0.3 | ) |   |   |   |   |   |   | - |   |
| Interest                           |   |   |   |   |   |   | 0.2    |   |   |   |   |   |   |   | (0.5 | ) |   |   |   |   |   |   | - |   |
| Investment tax credit, net         |   |   |   |   |   |   | (0.6   | )      |   |   |   |   |   |   | (0.9 | ) |   |   |   |   |   |   | (1.2 | ) |
| Total provision for income taxes   |   |   |   |   |   | $      | 78.0   |   |   |   |   |   |   | $ | 68.0 |   |   |   |   |   |   | $ | 73.1 |   |

| (Millions)                                                          |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                |   |   |   |   |   |   |   |   |   |
| Balance at January 1                                           |   | $      | 9.3    |   |   | $      | 0.6    |   |   | $ | 0.8 |   |
|   Increase related to tax positions taken in prior years  |   |   | 0.9    |   |   |   | 9.0    |   |   |   | 0.2 |   |
|   Decrease related to tax positions taken in prior years  |   |   | (5.4   | )      |   |   | -      |   |   |   | (0.6 | ) |
|   Increase related to tax positions taken in current year |   |   | -      |   |   |   | -      |   |   |   | - |   |
|   Increase related to settlements                         |   |   | -      |   |   |   | -      |   |   |   | 0.2 |   |
|   Decrease related to settlements                         |   |   | -      |   |   |   | (0.3   | )      |   |   | - |   |
| Balance at December 31                                         |   | $      | 4.8    |   |   | $      | 9.3    |   |   | $ | 0.6 |   |

| ● | IRS – for the 2006, 2007, and 2008 tax years. |
|---------|-----------------------------------------------------|

----

| ● | WPS's electric utility segment had obligations of $185.0 million related to coal supply and transportation that extend through 2016, obligations of $1,146.8 million for either capacity or energy related to purchased power that extend through 2030, and obligations of $9.8 million for other commodities that extend through 2013. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | WPS's natural gas utility segment had obligations of $386.6 million related to natural gas supply and transportation contracts that extend through 2024.                                                                                                                                                                                          |
| ● | WPS also had commitments of $99.4 million in the form of purchase orders issued to various vendors that relate to normal business operations, including construction projects.                                                                                                                                                                    |

----

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

----

----

----

----

|                          |   |                                            |   |   | Expiration       |   |
|-------------------------------|--------|-------------------------------------------------|--------|--------|------------------|--------|
| (Millions)                    |   | Total AmountsCommitted atDecember 31, 2010 |   |   | Less Than 1 Year |   |   | 1 to 2 Years |   |   | Over 2 Years |   |
| Standby letters of credit (1) |   | $                                               | 0.3    |   |             | $      | 0.2 |   |   | $ | 0.1 |   |   | $ | - |   |
| Other guarantee (2)           |   |                                            | 0.4    |   |             |   | - |   |   |   | - |   |   |   | 0.4 |   |
| Total guarantees              |   | $                                               | 0.7    |   |             | $      | 0.2 |   |   | $ | 0.1 |   |   | $ | 0.4 |   |

| (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. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   |   | Pension Benefits |   |   |   | Other Benefits |   |
|--------------------------------------|--------|--------|------------------|--------|--------|--------|----------------|--------|
| (Millions)                           |   |   | 2010             |   |   |   | 2009           |   |   |   | 2010 |   |   |   | 2009 |   |
| Reconciliation of benefit obligation |   |   |             |   |   |   |           |   |   |   |   |   |   |   |   |   |
| Obligation at January 1         |   | $      | 622.6            |   |   | $      | 598.7          |   |   | $ | 243.6 |   |   | $ | 276.1 |   |
| Service cost                         |   |   | 12.6             |   |   |   | 11.5           |   |   |   | 5.8 |   |   |   | 5.7 |   |
| Interest cost                        |   |   | 37.7             |   |   |   | 38.8           |   |   |   | 14.1 |   |   |   | 14.1 |   |
| Plan amendments                      |   |   | -                |   |   |   | 3.0            |   |   |   | - |   |   |   | - |   |
| Plan curtailment                     |   |   | -                |   |   |   | 0.2            | (1)    |   |   | - |   |   |   | - |   |
| Transfer to affiliates               |   |   | (16.0            | ) (2)  |   |   | (3.6           | ) (2)  |   |   | - |   |   |   | (55.8 | ) (3) |
| Actuarial (gain) loss, net           |   |   | 43.3             |   |   |   | (1.9           | )      |   |   | 14.2 |   |   |   | 12.6 |   |
| Participant contributions            |   |   | -                |   |   |   | -              |   |   |   | 0.5 |   |   |   | 0.4 |   |
| Benefit payments                     |   |   | (42.0            | )      |   |   | (24.1          | )      |   |   | (10.1 | ) |   |   | (10.2 | ) |
| Federal subsidy on benefits paid     |   |   | -                |   |   |   | -              |   |   |   | 0.8 |   |   |   | 0.7 |   |
| Obligation at December 31       |   | $      | 658.2            |   |   | $      | 622.6          |   |   | $ | 268.9 |   |   | $ | 243.6 |   |

| Reconciliation of fair value of plan assets   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fair value of plan assets at January 1   |   | $      | 435.5  |   |   | $      | 379.8  |   |   | $      | 165.7  |   |   | $      | 175.4  |   |
| Actual return on plan assets                  |   |   | 56.3   |   |   |   | 82.1   |   |   |   | 18.3   |   |   |   | 24.9   |   |
| Employer contributions                        |   |   | 83.2   |   |   |   | 1.3    |   |   |   | 10.6   |   |   |   | 9.1    |   |
| Participant contributions                     |   |   | -      |   |   |   | -      |   |   |   | 0.5    |   |   |   | 0.4    |   |
| Benefit payments                              |   |   | (42.0  | )      |   |   | (24.1  | )      |   |   | (10.1  | )      |   |   | (10.2  | )      |
| Transfer to affiliates                        |   |   | (16.0  | ) (2)  |   |   | (3.6   | ) (2)  |   |   | 0.1    |   |   |   | (33.9  | ) (3)  |
| Fair value of plan assets at December 31 |   | $      | 517.0  |   |   | $      | 435.5  |   |   | $      | 185.1  |   |   | $      | 165.7  |   |

| (1) | In connection with the reduction in workforce discussed in Note 3, "Restructuring Expense," a curtailment loss was recognized. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The transfer of pension plan assets and obligations to affiliates relates to past WPS employees who at retirement were employed by IBS.  The assets and corresponding obligations are transferred to IBS, as IBS pays the benefits. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The transfer of other benefit plan assets and obligations to affiliates occurred in connection with an agreement whereby each participating affiliate in the WPS-sponsored other postretirement benefit plans is responsible for its share of plan obligations and is entitled to its share of plan assets.  The amounts shown as 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 benefit plans. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Pension Benefits |   |   | Other Benefits |   |
|------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)             |   | 2010             |   |   | 2009           |   |   | 2010 |   |   | 2009 |   |
| Current liabilities    |   | $                | 4.4    |   |           | $      | 6.2 |   |   | $ | 0.2 |   |   | $ | 0.2 |   |
| Noncurrent liabilities |   |             | 136.8  |   |           |   | 180.9 |   |   |   | 83.6 |   |   |   | 77.7 |   |
| Total liabilities      |   | $                | 141.2  |   |           | $      | 187.1 |   |   | $ | 83.8 |   |   | $ | 77.9 |   |

|                           |   | December 31 |   |
|--------------------------------|--------|------------------|--------|
| (Millions)                     |   | 2010             |   |   | 2009 |   |
| Projected benefit obligation   |   | $                | 658.2  |   |   | $ | 622.6 |   |
| Accumulated benefit obligation |   |             | 584.3  |   |   |   | 545.0 |   |
| Fair value of plan assets      |   |             | 517.0  |   |   |   | 435.5 |   |

----

|                        |   | Pension Benefits |   |   | Other Benefits |   |
|-----------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)                  |   | 2010             |   |   | 2009           |   |   | 2010 |   |   | 2009 |   |
| Net regulatory assets       |   |             |   |   |           |   |   |   |   |   |   |   |
| Net actuarial loss          |   | $                | 150.5  |   |           | $      | 131.3 |   |   | $ | 57.5 |   |   | $ | 48.6 |   |
| Prior service cost (credit) |   |             | 15.3   |   |           |   | 20.1 |   |   |   | (20.8 | ) |   |   | (24.4 | ) |
| Transition obligation       |   |             | -      |   |           |   | - |   |   |   | 0.5 |   |   |   | 0.7 |   |
| Regulatory deferral *       |   |             | -      |   |           |   | 4.5 |   |   |   | - |   |   |   | (1.3 | ) |
| Total                       |   | $                | 165.8  |   |           | $      | 155.9 |   |   | $ | 37.2 |   |   | $ | 23.6 |   |

|   | * | 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 occurred in 2010. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Pension Benefits |   |   | Other Benefits |   |
|---------------------------------------------|--------|------------------|--------|--------|----------------|--------|
| (Millions)                                  |   | 2010             |   |   | 2009           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Net periodic benefit cost                   |   |             |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                                |   | $                | 11.5   |   |           | $      | 10.3 |   |   | $ | 10.7 |   |   | $ | 5.8 |   |   | $ | 5.7 |   |   | $ | 5.5 |   |
| Interest cost                               |   |             | 36.6   |   |           |   | 38.0 |   |   |   | 35.0 |   |   |   | 14.1 |   |   |   | 14.1 |   |   |   | 13.2 |   |
| Expected return on plan assets              |   |             | (39.6  | )      |           |   | (39.4 | ) |   |   | (44.4 | ) |   |   | (14.2 | ) |   |   | (13.9 | ) |   |   | (14.3 | ) |
| Amortization of transition obligation       |   |             | -      |   |           |   | - |   |   |   | - |   |   |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Amortization of prior service cost (credit) |   |             | 4.8    |   |           |   | 4.5 |   |   |   | 4.6 |   |   |   | (3.5 | ) |   |   | (3.5 | ) |   |   | (3.5 | ) |
| Amortization of net actuarial loss (gain)   |   |             | 4.1    |   |           |   | 1.1 |   |   |   | 0.4 |   |   |   | 1.2 |   |   |   | 0.1 |   |   |   | (0.6 | ) |
| Regulatory deferral *                       |   |             | 4.5    |   |           |   | (4.5 | ) |   |   | - |   |   |   | (1.3 | ) |   |   | 1.3 |   |   |   | - |   |
| Net periodic benefit cost                   |   | $                | 21.9   |   |           | $      | 10.0 |   |   | $ | 6.3 |   |   | $ | 2.3 |   |   | $ | 4.0 |   |   | $ | 0.5 |   |

| * | 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 occurred in 2010. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   | Pension Benefits |   |   | Other Benefits |   |
|------------------------------------------------|--------|------------------|--------|--------|----------------|--------|
|                                           |   | 2010             |   |   | 2009           |   |   | 2010 |   |   | 2009 |   |
| Discount rate                                  |   |             | 5.80   | %      |           |   | 6.15 | % |   |   | 5.80 | % |   |   | 6.05 | % |
| Rate of compensation increase                  |   |             | 4.29   | %      |           |   | 4.29 | % |   |   | N/A |   |   |   | N/A |   |
| Assumed medical cost trend rate (under age 65) |   |             | N/A    |   |           |   | N/A |   |   |   | 7.5 | % |   |   | 8.0 | % |
| Ultimate trend rate                            |   |             | N/A    |   |           |   | N/A |   |   |   | 5.0 | % |   |   | 5.0 | % |
| Ultimate trend rate reached in                 |   |             | N/A    |   |           |   | N/A |   |   |   | 2016 |   |   |   | 2013 |   |
| Assumed medical cost trend rate (over age 65)  |   |             | N/A    |   |           |   | N/A |   |   |   | 8.0 | % |   |   | 8.5 | % |
| Ultimate trend rate                            |   |             | N/A    |   |           |   | N/A |   |   |   | 5.5 | % |   |   | 5.5 | % |
| Ultimate trend rate reached in                 |   |             | N/A    |   |           |   | N/A |   |   |   | 2016 |   |   |   | 2013 |   |
| Assumed dental cost trend rate                 |   |             | N/A    |   |           |   | N/A |   |   |   | 5.0 | % |   |   | 5.0 | % |

----

|                          |   | Pension Benefits |   |
|-------------------------------|--------|------------------|--------|
|                          |   | 2010             |   |   | 2009 |   |   | 2008 |   |
| Discount rate                 |   |             | 6.15   | % |   |   | 6.45 | % |   |   | 6.40 | % |
| Expected return on assets     |   |             | 8.50   | % |   |   | 8.50 | % |   |   | 8.50 | % |
| Rate of compensation increase |   |             | 4.29   | % |   |   | 4.27 | % |   |   | 4.27 | % |

|                                           |   | Other Benefits |   |
|------------------------------------------------|--------|----------------|--------|
|                                           |   | 2010           |   |   | 2009 |   |   | 2008 |   |
| Discount rate                                  |   |           | 6.05   | % |   |   | 6.50 | % |   |   | 6.50 | % |
| Expected return on assets                      |   |           | 8.50   | % |   |   | 8.50 | % |   |   | 8.50 | % |
| Assumed medical cost trend rate (under age 65) |   |           | 8.0    | % |   |   | 9.0 | % |   |   | 10.0 | % |
| Ultimate trend rate                            |   |           | 5.0    | % |   |   | 5.0 | % |   |   | 5.0 | % |
| Ultimate trend rate reached in                 |   |           | 2013   |   |   |   | 2013 |   |   |   | 2013 |   |
| Assumed medical cost trend rate (over age 65)  |   |           | 8.5    | % |   |   | 9.5 | % |   |   | 10.5 | % |
| Ultimate trend rate                            |   |           | 5.5    | % |   |   | 5.5 | % |   |   | 5.5 | % |
| Ultimate trend rate reached in                 |   |           | 2013   |   |   |   | 2013 |   |   |   | 2013 |   |
| 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 |   | $                    | 3.5    |   |   | $ | (2.8 | ) |
| Effect on the health care component of the accumulated postretirement benefit obligation                        |   |                 | 41.0   |   |   |   | (33.2 | ) |

----

|                                                                                       |   | December 31, 2010 |   |
|--------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                       |   | Pension Plan Assets    |   |   | Other Benefit Plan Assets |   |
| (Millions)                                                                                 |   | Level 1                |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Asset Class                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                  |   | $                      | 1.6    |   |   | $ | 16.0 |   |   | $ | - |   |   | $ | 17.6 |   |   | $ | - |   |   | $ | 5.6 |   |   | $ | - |   |   | $ | 5.6 |   |
| Equity securities:                                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      United States equity                                         |   |                   | 59.1   |   |   |   | 141.0 |   |   |   | - |   |   |   | 200.1 |   |   |   | 21.1 |   |   |   | 49.8 |   |   |   | - |   |   |   | 70.9 |   |
|      International equity                                         |   |                   | 35.8   |   |   |   | 116.7 |   |   |   | - |   |   |   | 152.5 |   |   |   | 12.5 |   |   |   | 41.9 |   |   |   | - |   |   |   | 54.4 |   |
| Fixed income securities:                                                                   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      United States government                                     |   |                   | -      |   |   |   | 34.5 |   |   |   | - |   |   |   | 34.5 |   |   |   | 8.1 |   |   |   | 27.3 |   |   |   | - |   |   |   | 35.4 |   |
|      Foreign government                                           |   |                   | -      |   |   |   | 6.2 |   |   |   | 3.7 |   |   |   | 9.9 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Corporate debt                                               |   |                   | -      |   |   |   | 67.5 |   |   |   | 1.0 |   |   |   | 68.5 |   |   |   | - |   |   |   | 15.4 |   |   |   | - |   |   |   | 15.4 |   |
|      Asset-backed securities                                      |   |                   | -      |   |   |   | 24.9 |   |   |   | 0.1 |   |   |   | 25.0 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Other                                                        |   |                   | -      |   |   |   | 2.4 |   |   |   | - |   |   |   | 2.4 |   |   |   | 0.2 |   |   |   | - |   |   |   | - |   |   |   | 0.2 |   |
| Real estate securities                                                                     |   |                   | -      |   |   |   | - |   |   |   | 14.1 |   |   |   | 14.1 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |                   | 96.5   |   |   |   | 409.2 |   |   |   | 18.9 |   |   |   | 524.6 |   |   |   | 41.9 |   |   |   | 140.0 |   |   |   | - |   |   |   | 181.9 |   |
| 401(h) other benefit plan assets     invested as pension assets * |   |                   | (0.7   | ) |   |   | (3.0 | ) |   |   | (0.1 | ) |   |   | (3.8 | ) |   |   | 0.7 |   |   |   | 3.0 |   |   |   | 0.1 |   |   |   | 3.8 |   |
|      Total                                                        |   | $                      | 95.8   |   |   | $ | 406.2 |   |   | $ | 18.8 |   |   | $ | 520.8 |   |   | $ | 42.6 |   |   | $ | 143.0 |   |   | $ | 0.1 |   |   | $ | 185.7 |   |

| * | Pension trust assets are used to pay other postretirement benefits as allowed under Internal Revenue Code Section 401(h). |
|---|---------------------------------------------------------------------------------------------------------------------------|

|                                                                                       |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                       |   | Pension Plan Assets    |   |   | Other Benefit Plan Assets |   |
| (Millions)                                                                                 |   | Level 1                |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Asset Class                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |
|      Other                                                        |   |                   | -      |   |   |   | - |   |   |   | 0.5 |   |   |   | 0.5 |   |   |   | - |   |   |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |
| Real estate securities                                                                     |   |                   | -      |   |   |   | - |   |   |   | 11.7 |   |   |   | 11.7 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |                   | 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 Section 401(h). |
|---|---------------------------------------------------------------------------------------------------------------------------|

----

|   (Millions)                                                                 |   |   | Foreign Government Debt |   |   |   | Corporate Debt |   |   | Asset-Backed Securities |   |   | Other Fixed Income Securities |   |   |   | Real Estate Securities |   |   |   | Total  |   |
|-----------------------------------------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|----------------|--------|--------|-------------------------|--------|--------|-------------------------------|--------|--------|--------|------------------------|--------|--------|--------|--------|--------|
|                                                                              |   |   |                    |   |   |   |           |   |   |                    |   |   |                          |   |   |   |                   |   |   |   |   |   |
| Beginning balance at December 31, 2008                                       |   | $      | 0.4                     |   |   | $      | 0.9            |   | $      | -                       |   | $      | 0.7                           |   |   | $      | 16.7                   |   |   | $      | 18.7   |   |
| Actual return on plan assets:                                                     |   |   |                    |   |   |   |           |   |   |                    |   |   |                          |   |   |   |                   |   |   |   |   |   |
|      Relating to assets still held at the reporting date |   |   | 0.4                     |   |   |   | 0.5            |   |   | -                       |   |   | 0.5                           |   |   |   | (5.6                   | )      |   |   | (4.2   | )      |
|      Relating to assets sold during the period           |   |   | -                       |   |   |   | (0.2           | )      |   | -                       |   |   | (0.2                          | )      |   |   | -                      |   |   |   | (0.4   | )      |
| Purchases, sales, and settlements                                                 |   |   | -                       |   |   |   | 0.3            |   |   | -                       |   |   | (0.5                          | )      |   |   | 0.6                    |   |   |   | 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            |   |   | -                       |   |   | 0.5                           |   |   |   | 11.7                   |   |   |   | 13.7   |   |
| Actual return on plan assets:                                                     |   |   |                    |   |   |   |           |   |   |                    |   |   |                          |   |   |   |                   |   |   |   |   |   |
|      Relating to assets still held at the reporting date |   |   | (0.1                    | )      |   |   | 0.2            |   |   | -                       |   |   | -                             |   |   |   | 1.8                    |   |   |   | 1.9    |   |
| Purchases, sales, and settlements                                                 |   |   | 3.6                     |   |   |   | (0.5           | )      |   | 0.1                     |   |   | (0.5                          | )      |   |   | 0.6                    |   |   |   | 3.3    |   |
| Ending balance at December 31, 2010                                          |   | $      | 3.7                     |   |   | $      | 1.0            |   | $      | 0.1                     |   | $      | -                             |   |   | $      | 14.1                   |   |   | $      | 18.9   |   |

| (Millions) |   | Pension Benefits |   |   | Other Benefits |   |   | Federal Subsidies |   |
|------------|--------|------------------|--------|--------|----------------|--------|--------|-------------------|--------|
| 2011       |   | $                | 39.9   |   |           | $      | 13.0   |              |   | $ | (0.9 | ) |
| 2012       |   |             | 41.5   |   |           |   | 13.6   |              |   |   | (0.9 | ) |
| 2013       |   |             | 42.7   |   |           |   | 14.2   |              |   |   | (1.0 | ) |
| 2014       |   |             | 44.1   |   |           |   | 14.9   |              |   |   | (1.1 | ) |
| 2015       |   |             | 48.2   |   |           |   | 15.8   |              |   |   | (1.1 | ) |
| 2016-2020  |   |             | 248.2  |   |           |   | 93.5   |              |   |   | (6.1 | ) |

----

| (Millions, except share amounts) | 2010   |   |               | 2009    |    |
|----------------------------------|--------|--------|--------------------|---------|---------|
| 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, 2010 |   |
|------------------------------|--------|------------------------|--------|
| (Millions)                   |   | Level 1           |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Risk management assets       |   |                   |   |   |   |   |   |   |   |   |   |   |
| FTRs                         |   | $                      | -      |   |   | $ | - |   |   | $ | 2.2 |   |   | $ | 2.2 |   |
| Natural gas contracts        |   |                   | 0.4    |   |   |   | - |   |   |   | - |   |   |   | 0.4 |   |
| Petroleum products contracts |   |                   | 0.3    |   |   |   | - |   |   |   | - |   |   |   | 0.3 |   |
| Coal contract                |   |                   | -      |   |   |   | - |   |   |   | 3.7 |   |   |   | 3.7 |   |
| Total                        |   | $                      | 0.7    |   |   | $ | - |   |   | $ | 5.9 |   |   | $ | 6.6 |   |
|                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk management liabilities  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FTRs                         |   | $                      | -      |   |   | $ | - |   |   | $ | 0.2 |   |   | $ | 0.2 |   |
| Natural gas contracts        |   |                   | 2.3    |   |   |   | - |   |   |   | - |   |   |   | 2.3 |   |
| Coal contract                |   |                   | -      |   |   |   | - |   |   |   | 1.2 |   |   |   | 1.2 |   |
| Total                        |   | $                      | 2.3    |   |   | $ | - |   |   | $ | 1.4 |   |   | $ | 3.7 |   |

|                        |   | 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 |   |

|                                                                    |   | 2010   |   |   | 2009          |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|---------------|--------|
| (Millions)                                                              |   | FTRs   |   |   | Coal Contract |   |   | Total |   |   | FTRs |   |
| Balance at beginning of period                                          |   | $      | 3.1    |   |          | $      | - |   |   | $ | 3.1 |   |   | $ | 2.7 |   |
| Net realized (loss) gain included in earnings                           |   |   | 4.0    |   |          |   | - |   |   |   | 4.0 |   |   |   | (2.9 | ) |
| Net unrealized gain (loss) recorded as regulatory assets or liabilities |   |   | (1.2   | )      |          |   | 2.5 |   |   |   | 1.3 |   |   |   | 2.0 |   |
| Net purchases and settlements                                           |   |   | (3.9   | )      |          |   | - |   |   |   | (3.9 | ) |   |   | 1.3 |   |
| Balance at end of period                                                |   | $      | 2.0    |   |          | $      | 2.5 |   |   | $ | 4.5 |   |   | $ | 3.1 |   |

----

|            |   | 2010                 |   |   | 2009      |   |
|-----------------|--------|----------------------|--------|--------|-----------|--------|
| (Millions)      |   | Carrying Amount |   |   | FairValue |   |   | Carrying Amount |   |   | FairValue |   |
| Long-term debt  |   | $                    | 871.1  |   |      | $      | 924.3 |   |   | $ | 870.9 |   |   | $ | 909.9 |   |
| Preferred stock |   |                 | 51.2   |   |      |   | 46.9 |   |   |   | 51.2 |   |   |   | 44.4 |   |

| (Millions)                                           |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Equity earnings on investments                       |   | $      | 10.8   |   |   | $      | 11.0   |   |   | $ | 12.0 |   |
| Key executive life insurance income                  |   |   | 1.6    |   |   |   | 1.2    |   |   |   | 0.9 |   |
| Equity portion of AFUDC                              |   |   | 0.7    |   |   |   | 5.1    |   |   |   | 5.2 |   |
| Weston 4 ATC interconnection agreement interest |   |   | -      |   |   |   | -      |   |   |   | 2.5 |   |
| Other                                                |   |   | (0.7   | )      |   |   | (0.5   | )      |   |   | 1.0 |   |
| Total miscellaneous income                           |   | $      | 12.4   |   |   | $      | 16.8   |   |   | $ | 21.6 |   |

----

----

|                                        |   | Regulated Utilities |    |   |               |   |   |         |   |   |    |   |
|---------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|--------|--------------|--------|--------|---------|--------|
| 2010 (Millions)                             |   | ElectricUtility     |    |   | Natural GasUtility |   |   | TotalUtility |   |   | Other   |   |   | Reconciling Eliminations |   |   | WPSConsolidated |   |
|                                        |   |                |    |   |               |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Income Statement                            |   |                |    |   |               |   |   |         |   |   |    |   |   |   |   |   |   |   |
| Operating revenues                          |   | $                   | 1,223.4 |   |               | $      | 365.6  |         |   | $      | 1,589.0 |   |   | $ | 1.4 |   |   | $ | (1.4 | ) |   | $ | 1,589.0 |   |
| Depreciation and amortization expense       |   |                | 88.2    |   |               |   | 22.4   |         |   |   | 110.6   |   |   |   | 0.5 |   |   |   | (0.5 | ) |   |   | 110.6 |   |
| Miscellaneous income                        |   |                | 0.8     |   |               |   | 0.2    |         |   |   | 1.0     |   |   |   | 11.411.3 |   |   |   | - |   |   |   | 12.4 |   |
| Interest expense                            |   |                | 40.7    |   |               |   | 9.6    |         |   |   | 50.3    |   |   |   | 4.1 |   |   |   | - |   |   |   | 54.4 |   |
| Provision for income taxes                  |   |                | 59.3    |   |               |   | 16.1   |         |   |   | 75.4    |   |   |   | 2.6 |   |   |   | - |   |   |   | 78.0 |   |
| Preferred stock dividend requirements       |   |                | 2.5     |   |               |   | 0.6    |         |   |   | 3.1     |   |   |   | - |   |   |   | - |   |   |   | 3.1 |   |
| Net income attributed to common shareholder |   |                | 103.4   |   |               |   | 23.2   |         |   |   | 126.6   |   |   |   | 5.3 |   |   |   | - |   |   |   | 131.9 |   |
| Total assets                                |   |                | 2,653.4 |   |               |   | 628.7  |         |   |   | 3,282.1 |   |   |   | 103.9 |   |   |   | - |   |   |   | 3,386.0 |   |
| Cash expenditures for long-lived assets     |   |                | 62.7    |   |               |   | 22.8   |         |   |   | 85.5    |   |   |   | - |   |   |   | - |   |   |   | 85.5 |   |

|                                        |   | 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 |   |

----

| (Millions)                                               |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                     |   |   |   |   |   |   |
| Notes payable (1)                                        |   |   |   |   |   |   |
|     Integrys Energy Group            |   | $      | 8.6    |   |   | $      | 9.3 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Benefit costs (2)                                        |   |   |   |   |   |   |   |   |
|     Receivables from related parties |   |   | 11.8   |   |   |   | 10.9 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Liability related to income tax allocation               |   |   |   |   |   |   |   |   |
|     Integrys Energy Group            |   |   | 9.0    |   |   |   | 10.5 |   |

----

| (Millions)                                                                                                                                                      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Electric transactions                                                                                                                                           |   |   |   |   |   |   |   |   |   |
|     Sales to UPPCO                                                                                                                          |   | $      | 26.7   |   |   | $      | 42.5   |   |   | $ | 43.9 |   |
|     Purchases from UPPCO                                                                                                                    |   |   | -      |   |   |   | 0.2    |   |   |   | - |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas transactions                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Sales to Integrys Energy Services                                                                                                       |   |   | 0.7    |   |   |   | 0.5    |   |   |   | 0.8 |   |
|     Purchases from Integrys Energy Services                                                                                                 |   |   | 1.2    |   |   |   | 1.5    |   |   |   | 8.7 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (1)                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|     Integrys Energy Group                                                                                                                   |   |   | 0.8    |   |   |   | 0.8    |   |   |   | 0.8 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Transactions with equity method investments                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|     Charges from ATC for network transmission services                                                                                      |   |   | 96.6   |   |   |   | 84.5   |   |   |   | 82.2 |   |
|      Net amounts received from (advanced to) ATC for         transmission interconnection |   |   | -      |   |   |   | -      |   |   |   | 82.3 |   |
|     Charges to ATC for services and construction                                                                                            |   |   | 11.2   |   |   |   | 7.2    |   |   |   | 10.6 |   |
|     Net proceeds from WRPC sales of energy to MISO                                                                                          |   |   | 4.5    |   |   |   | 2.6    |   |   |   | 5.8 |   |
|     Purchases of energy from WRPC                                                                                                           |   |   | 4.7    |   |   |   | 4.6    |   |   |   | 4.7 |   |
|     Revenues from services provided to WRPC                                                                                                 |   |   | 0.6    |   |   |   | 0.6    |   |   |   | 0.8 |   |
|     Income from WPS Investments, LLC (3)                                                                                                    |   |   | 9.8    |   |   |   | 10.0   |   |   |   | 9.8 |   |

| (1) | WPS Leasing, a consolidated subsidiary of WPS, has a note payable to WPS's parent company, Integrys Energy Group. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (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 Balance Sheets. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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, 2010, WPS had a 12.54% 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 |   |
|---------------------------------------------|--------|--------------------|--------|
|                                        |   | 2010               |   |
|                                        |   | March              |   |   | June |   |   | September |   |   | December |   |   | Total |   |
|                                        |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenues                          |   | $                  | 467.0  |   |   | $ | 345.0 |   |   | $ | 388.1 |   |   | $ | 388.9 |   |   | $ | 1,589.0 |   |
| Operating income                            |   |               | 89.8   |   |   |   | 46.5 |   |   |   | 70.7 |   |   |   | 48.0 |   |   |   | 255.0 |   |
| Net income attributed to common shareholder |   |               | 47.5   |   |   |   | 23.7 |   |   |   | 39.5 |   |   |   | 21.2 |   |   |   | 131.9 |   |
|                                        |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |  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 |   |

----

H. 

----

| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

ITEM 9A

ITEM 9B

----

PART III

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| Name and Age (1)         |   | Position and BusinessExperience During Past Five Years                                                                                                           | EffectiveDate |
|--------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                     |   |                                                                                                                                                             |          |
| Charles A. Schrock       | 57     | Chairman, President and Chief Executive Officer of Integrys Energy Group and    Chairman and Director of WPS                                      | 04-01-10      |
|                     |   | 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      |
|                     |   |                                                                                                                                                             |          |
| Lawrence T. Borgard | 49     | 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      |
|                     |   |                                                                                                                                                             |          |
| Phillip M. Mikulsky      | 62     | Executive Vice President – Business Performance and Shared Services of    Integrys Energy Group and Director of WPS                         | 12-26-10      |
|                     |   | Executive Vice President – Corporate Development and Shared    Services of Integrys Energy Group and Director of WPS                   | 09-21-08      |
|                     |   | Executive Vice President and Chief Development Officer of Integrys    Energy Group and Director of WPS                                       | 02-21-07      |
|                     |   | Executive Vice President – Development of Integrys Energy Group                                                                                            | 09-12-04      |
|                     |   |                                                                                                                                                             |          |
| Joseph P. O'Leary        | 56     | 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      |
|                     |   |                                                                                                                                                             |          |
| Diane L. Ford            | 57     | 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      |
|                     |   |                                                                                                                                                             |          |
| William J. Guc           | 41     | Vice President and Treasurer of Integrys Energy Group and Treasurer of WPS                                                                                       | 12-01-10      |   |
|                     |   | Vice President – Finance and Accounting and Controller – Integrys Energy Services                                                                    | 03-07-10      |   |
|                     |   | Vice President and Controller – Integrys Energy Services                                                                                                   | 09-21-08      |   |
|                     |   | Controller – Integrys Energy Services (previously named WPS Energy Services)                                                                               | 02-21-05      |   |
|                     |   |                                                                                                                                                             |          |   |
| William D. Laakso        | 48     | Vice President – Human Resources of Integrys Energy Group and Director of WPS                                                                              | 09-21-08      |   |
|                     |   | Interim Vice President – Human Resources of IBS and 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                                                                                                                           | 12-12-05      |   |

----

| Name and Age (1) |   |  Position and BusinessExperience During Past Five Years                                                                                          | EffectiveDate |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|             |   |                                                                                                                                                  |          |
| James F. Schott  | 53     | Vice President – External Affairs of Integrys Energy Group and WPS and Director    of WPS                                        | 05-12-10      |
|             |   | Vice President – External Affairs of Integrys Energy Group and Vice President –     Regulatory Affairs and Director of WPS | 04-01-10      |
|             |   | Vice President – External Affairs of Integrys Energy Group and Vice President –     Regulatory Affairs                     | 03-22-10      |
|             |   | Vice President – Regulatory Affairs                                                                                                             | 07-18-04      |
|             |   |                                                                                                                                                  |          |
| Barth J. Wolf    | 53     | 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, 2011.  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.                                                                                                                                                                                                                                                                                                                                       |

ITEM 11

----

| ·   | Lawrence T. Borgard, President and Chief Executive Officer; |
|--------------------|-----------------------------------------------------------------------|

| ·   | Joseph P. O'Leary, Senior Vice President and Chief Financial Officer; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Charles A. Schrock, Chairman, President and Chief Executive Officer of Integrys Energy Group; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Phillip M. Mikulsky, Executive Vice President – Business Performance and Shared Services of Integrys Energy Group; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Barth J. Wolf, Secretary |
|--------------------|------------------------------------|

| Compensation Philosophy and Objectives |
|----------------------------------------|

----

|                                                |   | Phillip M. Mikulsky |   |   | Barth J. Wolf |   |
|-----------------------------------------------------|--------|---------------------|--------|--------|---------------|--------|
| Consolidated Calculated Net Income (1)              |   |                | 70     | %      |          |   | 70 | % |
| Environmental Impact (2)                            |   |                | 5      | %      |          |   | 5 | % |
| Customer Satisfaction – Utility Customers (3) |   |                | 5      | %      |          |   | 5 | % |
| Customer Satisfaction – Business Partners (4) |   |                | 10     | %      |          |   | 10 | % |
| Safety (5)                                          |   |                | 10     | %      |          |   | 10 | % |

| (1)   | Performance is measured based on Integrys Energy Group consolidated net income attributed to common shareholders as reported in its 2010 Form 10-K, as adjusted by the Committee. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Performance is measured based on the implementation of projects and activities in 2010 that reduced annual emissions, such as carbon dioxide (CO2). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Performance is measured based on customer satisfaction through surveys performed by an outside vendor as compared to survey results of other regional benchmark energy suppliers. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Performance is measured based on internal customer satisfaction at the Integrys Business Support, LLC subsidiary through an annual partner survey of internal company business partners as compared to a target score. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Performance is measured based on OSHA recordable incident rates. |
|-----------------|------------------------------------------------------------------|

|                    |   | Payout Levels(as a percent of actual paid base salary) |   |
|-------------------------|--------|--------------------------------------------------------|--------|
| Named Executive Officer |   | Threshold                                              |   |   | Target |   |   | Superior |   |
| Phillip M. Mikulsky     |   |                                                   | -      |   |   |   | 60.0 |   |   |   | 120.0 |   |
| Barth J. Wolf           |   |                                                   | -      |   |   |   | 55.0 |   |   |   | 110.0 |   |

----

|                               |           |           |           |   | 2010 Actual Results |   |
|------------------------------------|----------------|----------------|----------------|--------|---------------------|--------|
| Financial Measure                  | Threshold      | Target         | Superior       |   | Amount              |   |   | Payout% of Target |   |
| Consolidated Calculated Net Income | $238.2 million | $264.7 million | $291.1 million |   | $                   | 251.7  |   |   |   | 50.94 | % |

| Nonfinancial Measures                           | Range of Performance Result  |
|-------------------------------------------------|------------------------------|
| Environmental Impact                            | Above Superior               |
| Customer Satisfaction – Utility Customers | Between Target and Superior  |
| Customer Satisfaction – Business Partners | Between Threshold and Target |
| Safety                                          | Between Target and Superior  |

|                       |   | Phillip M. Mikulsky |    |   | Barth J. Wolf |   |
|----------------------------|--------|---------------------|---------|--------|---------------|--------|
| Amount of Payout           |   | $                   | 183,914 |   |          | $      | 137,559 |   |
| Payout as % of Target      |   |                | 77.7    | %      |          |   | 77.7 | % |
| Payout as % of Base Salary |   |                | 46.7    | %      |          |   | 42.8 | % |

| Long-Term Incentive Compensation |
|----------------------------------|

----

| Other Benefits and Plans |
|--------------------------|

| Nonqualified Deferred Compensation Plan |
|-----------------------------------------|

| Qualified Pension Plan |
|------------------------|

| Named Executive Officer |   | Annual Percentage Credit Earned in 2010 |   |   | Accumulated Total Service Credits Earned as ofDecember 31, 2010 |   |
|-------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
| Phillip M. Mikulsky     |   |                                    | 15     | %      |                                                                 |   | 621 | % |
| Barth J. Wolf           |   |                                    | 15     | %      |                                                                 |   | 331 | % |

----

| Perquisites |
|-------------|

| Named Executive Officer |   | Life Insurance Coverage ($) |      |
|-------------------------|--------|-----------------------------|-----------|
| Phillip M. Mikulsky     |   |                        | 1,211,000 |   |
| Barth J. Wolf           |   |                        | 1,005,000 |   |

----

----

| Name andPrincipal Position                                                                                                                  | Year         |   | Salary ($)(1) |                  |   | Bonus($) |   |      | Stock Awards ($)(2) |   |   | Option Awards ($)(2)  |   |   | Non-Equity Incentive Plan Compensa-tion($)(3) |                            |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)(4) |   |                       | All Other Compensation($)(5) |   |   | Total($)              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|---------------|-----------------------|--------|----------|--------|-----------|---------------------|--------|--------|-----------------------|--------|--------|-----------------------------------------------|---------------------------------|--------|--------------------------------------------------------------------------------|--------|----------------------------|------------------------------|--------|--------|-----------------------|--------|
| (a)                                                                                                                                         | (b)          |   | (c)           |                  |   | (d)      |   |      | (e)                 |   |   | (f)                   |   |   | (g)                                           |                            |   | (h)                                                                            |   |                       | (i)                          |   |   | (j)                   |   |
|                                                                                                                                        |         |   |          |                  |   |     |   |      |                |   |   |                  |   |   |                                          |                            |   |                                                                           |   |                       |                         |   |   |                  |   |
| Phillip M. Mikulsky (6)   Executive Vice President – Business Performance and Shared Services of Integrys Energy Group | 2010         |   |          | 394,136               |   |     |   | -         |                |   |   | 457,655               |   |   |                                          | 151,368                         |   |                                                                           |   | 183,914                    |                         |   |   | 639,049               |   |   |   | 23,718 |   |   |   | 1,849,840 |   |
|                                                                                                                                        |         |   |          |                  |   |     |   |      |                |   |   |                  |   |   |                                          |                            |   |                                                                           |   |                       |                         |   |   |                  |   |   |   |   |   |   |   |   |   |
| Barth J. Wolf   Secretary                                                                                                    | 201020092008 |   |          | 321,594301,154290,000 |   |     |   | -- - |                |   |   | 319,446193,156179,025 |   |   |                                          | 105,650 58,785 66,381 |   |                                                                           |   | 137,559165,595 92,098 |                         |   |   | 520,240196,953658,578 |   |   |   | 16,85819,763 14,015 |   |   |   | 1,421,347935,4061,300,097 |   |

| (1)   | Amounts shown reflect a reduction of one week's salary due to unpaid furlough that was required of all employees during 2010.  Amounts shown include amounts deferred into the Integrys Energy Group Deferred Compensation Plan.  See the Nonqualified Deferred Compensation Table for 2010 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, 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 base salary earnings from the company for services performed during the payroll year. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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% |   |   | Reserve A – Daily |   |   | Reserve B – Daily |   |
|-----------------------------------|--------|----------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
| October 2009 – March 2010   |   |     | 4.93   | %      |                    |   | 6.0000 | %                       |   |   | 6.0000 | % |
| April 2010 – September 2010 |   |     | 5.29   | %      |                    |   | 6.0000 | %                       |   |   | 6.0000 | % |
| October 2010 – March 2011   |   |     | 3.99   | %      |                    |   | 8.2603 | %                       |   |   | 5.8531 | % |

| (5)   | The amounts shown for each named executive officer include 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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Named Executive Officer |   | ESOP ($) |   |
|-------------------------|--------|----------|--------|
| Phillip M. Mikulsky     |   |     | 13,176 |   |
| Barth J. Wolf           |   |     | 13,158 |   |

| (6)   | The amounts shown are only for 2010 as Mr. Mikulsky was not included as a WPS named executive officer during 2008 and 2009. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

----

| 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 ($)       | Target($)  | Superior ($)                                                                             | Threshold (#)                                                                        | Target (#)                                                                                        | Superior (#)                                                                                        |
| (a)                 | (b)        | (c)                                                                                      | (d)                                                                                  | (e)                                                                                               | (f)                                                                                                 | (g)                                         | (h)                                                     | (i) | (j) | (k) | (l) |
| Phillip M. Mikulsky | 2010       | -                                                                                        | 241,862                                                                              | 483,725                                                                                           |                                                                                                |                                        |                                                    |   |   |   |   |
| 02/11/10            |       |                                                                                     |                                                                                 | 3,878                                                                                             | 7,756                                                                                               | 15,512                                      |                                                    |   |   | 355,535 |
| 02/11/10            |       |                                                                                     |                                                                                 |                                                                                              |                                                                                                |                                        | 2,456                                                   |   |   | 102,120 |
| 02/11/10            |       |                                                                                     |                                                                                 |                                                                                              |                                                                                                |                                        |                                                    | 28,560 | 41.58 | 151,368 |
| Barth J. Wolf       | 2010       | -                                                                                        | 184,223                                                                              | 368,445                                                                                           |                                                                                                |                                        |                                                    |   |   |   |   |
| 02/11/10            |       |                                                                                     |                                                                                 | 2,707                                                                                             | 5,414                                                                                               | 10,828                                      |                                                    |   |   | 248,178 |
| 02/11/10            |       |                                                                                     |                                                                                 |                                                                                              |                                                                                                |                                        | 1,714                                                   |   |   | 71,268 |
| 02/11/10            |       |                                                                                     |                                                                                 |                                                                                              |                                                                                                |                                        |                                                    | 19,934 | 41.58 | 105,650 |

| (1)   | Based on 2010 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 $41.58, the closing stock price on the grant date.  Stock options are valued at $5.30 on an accounting expense basis based on a proprietary "advance lattice" option pricing model. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | Options Awards (1)                                                 |   | Stock Awards (2) |                                                                 |
|---------------------|--------|--------------------------------------------------------------------|--------|------------------|----------------------------------------------------------------------|
| Name                |   | 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) |   |
| Phillip M. Mikulsky |   |                                                               | 37,388 |             |                                                                 |   | - |   |   |   | - |   |   |   | 48.11 |   | 12/08/14 |   |   | 5,582 |   |   |   | 270,783 |   |   |   | 13,881 |   |   |   | 673,367 |   |
|                |   | 32,455                                                             |   |             |                                                                 | - |   |   |   | - |   |   |   | 54.85 |   | 12/07/15 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 28,761                                                             |   |             |                                                                 | - |   |   |   | - |   |   |   | 52.73 |   | 12/07/16 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 762                                                                |   |             |                                                                 | 253 |   |   |   | - |   |   |   | 58.65 |   | 05/17/17 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 15,136                                                             |   |             |                                                                 | 15,134 |   |   |   | - |   |   |   | 48.36 |   | 02/14/18 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 6,462                                                              |   |             |                                                                 | 19,383 |   |   |   | - |   |   |   | 42.12 |   | 02/12/19 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | -                                                                  |   |             |                                                                 | 28,560 |   |   |   | - |   |   |   | 41.58 |   | 02/11/20 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Barth J. Wolf       |   |                                                               | 5,156  |             |                                                                 |   | - |   |   |   | - |   |   |   | 48.11 |   | 12/07/14 |   |   | 3,541 |   |   |   | 171,774 |   |   |   | 9,190 |   |   |   | 445,807 |   |
|                |   | 6,491                                                              |   |             |                                                                 | - |   |   |   | - |   |   |   | 54.85 |   | 12/07/15 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 6,783                                                              |   |             |                                                                 | - |   |   |   | - |   |   |   | 52.73 |   | 12/07/16 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 2,226                                                              |   |             |                                                                 | 741 |   |   |   | - |   |   |   | 58.65 |   | 05/17/17 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 7,344                                                              |   |             |                                                                 | 7,342 |   |   |   | - |   |   |   | 48.36 |   | 02/14/18 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | 3,983                                                              |   |             |                                                                 | 11,948 |   |   |   | - |   |   |   | 42.12 |   | 02/12/19 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                |   | -                                                                  |   |             |                                                                 | 19,934 |   |   |   | - |   |   |   | 41.58 |   | 02/11/20 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (1) | Provided below is the corresponding vesting date relative to each option expiration date: |
|--------|-----|-------------------------------------------------------------------------------------------|

----

| Grant Date | Full Vesting Date    | Expiration Date      |
|------------|----------------------|----------------------|
| 12/08/04   | 12/08/08             | 12/08/14             |
| 12/07/05   | 12/07/09             | 12/07/15             |
| 12/07/06   | 12/07/10             | 12/07/16             |
| 05/17/07   |   05/17/11 |   05/17/17 |
| 02/14/08   |  02/14/12       |  02/14/18       |
| 02/12/09   | 02/12/13             | 02/12/19             |
| 02/11/10   | 02/11/14             | 02/11/20             |

| (2)   | Integrys Energy Group stock price on December 31, 2010, was $48.51. |
|-----------------|--------------------------------------------------------------------------|

| (3)   | Included in columns (i) and (j) above are the performance shares pertaining to grants made in 2009 and 2010 for the performance periods of 2009-2011 and 2010-2012 that may still be paid out as of December 31, 2010.  Not included in columns (i) and (j) above are the performance shares pertaining to grants made in 2008 for the performance period of 2008-2010.  Subsequent to December 31, 2010, a payout will occur on performance shares for the performance period of 2008-2010 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 ($) |   |
|-------------------------|--------|----------------|--------|--------|--------------------------------------------|--------|
| Phillip M. Mikulsky     |   |           | 6,888  |   |                                       |   | 334,137 |   |
| Barth J. Wolf           |   |           | 3,342  |   |                                       |   | 162,120 |   |

|                |   | Option Awards                             |   |   | Stock Awards *                 |   |
|---------------------|--------|-------------------------------------------|--------|--------|--------------------------------|--------|
| 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) |   |
| Phillip M. Mikulsky |   |                                      | 80,483 |   |                           |   | 800,208 |   |   |   | 8,381 |   |   |   | 398,310 |   |
| Barth J. Wolf       |   |                                      | 11,112 |   |                           |   | 95,208 |   |   |   | 4,097 |   |   |   | 194,220 |   |

|   | * | A payout will be made on performance shares in 2011 based on total shareholder return for the performance period ending December 31, 2010, meeting the threshold payout level.  These performance shares had a performance period beginning on January 1, 2008, and ending on December 31, 2010. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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)                                 |
| Phillip M. Mikulsky | Retirement Plan | 39                                        | 1,414,173                                   | -                                   |
| Restoration Plan    | 39              | 2,620,814                                 | -                                           |
| SERP                | 39              | 865,225                                   | -                                           |
| Total               |            | 4,900,212                                 | -                                           |
|                |            |                                      |                                        |                                |
| Barth J. Wolf       | Retirement Plan | 22                                        | 676,448                                     | -                                   |
| Restoration Plan    | 22              | 388,436                                   | -                                           |
| SERP                | 22              | 850,905                                   | -                                           |
| Total               |            | 1,915,789                                 | -                                           |

| (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 – Other Benefits and Plans." |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 2010 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)                                              |   |
| Phillip M. Mikulsky |   |                                              | 107,092 |   |                                               |   | -      |                                         |   |   | 581,868                                |   |   |                                             | -      |   |   |   | 4,368,062 |   |
| Barth J. Wolf       |   |                                              | 11,309  |   |                                               |   | -      |                                         |   |   | 119,699                                |   |   |                                             | -      |   |   |   | 898,633 |   |

| (1)   | Deferrals into the Deferred Compensation Plan were made from compensation earned in 2010 and are reported in column (c) of the Summary Compensation Table for 2010, with the exception of annual incentive and performance share amounts earned in 2009, but paid out and deferred in 2010.  These amounts are as follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                |   | Annual Incentive Payout |   |   | Performance Share Payout |   |
|---------------------|--------|-------------------------|--------|--------|--------------------------|--------|
| Phillip M. Mikulsky |   |                    | -      |   |                     |   | 107,092 |   |
| Barth J. Wolf       |   |                    | -      |   |                     |   | - |   |

| (2)   | Above-market earnings received on Reserve Accounts A and B are reported in column (h) of theSummary Compensation Table for 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (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 for 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 ($) |    |
|---------------------|--------|--------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|------------------------------------------|---------|
| Phillip M. Mikulsky |   |                                                   | 45,058 |   |                                                   |   | 22,689 |                                                       |   |   | 166,262                                                      |   |   |                                     | 347,859 |   |   |   | 581,868 |   |
| Barth J. Wolf       |   |                                                   | -      |   |                                                   |   | 14,726 |                                                       |   |   | 17,884                                                       |   |   |                                     | 87,089  |   |   |   | 119,699 |   |

----

| Type of Termination     |   | Phillip M.Mikulsky |      |   | Barth J.Wolf |   |
|-------------------------|--------|--------------------|-----------|--------|--------------|--------|
| Retirement (1)          |   | $                  | 6,304,101 | (2)    |         | $      | - |   |
| Change In Control (CIC) |   |               | 8,552,205 | (3)    |         |   | 5,304,963 |   |

| (1)   | Mr. Mikulsky is currently eligible for retirement under the pension program, as specified in the plan documents.  Termination for reasons that are voluntary/involuntary/for cause, including death/disability would be treated the same as retirement.  Mr. Wolf was not retirement eligible as of December 31, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 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, 2011 |
|------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
| Name and Title                                                                                       |   | Aggregate Number of Shares Beneficially Owned (1)                         | Number of Shares Subject to Stock Options | Percent of Shares |
| Charles A. Schrock    Chairman and Director                                      |   | 195,680                                                                   | 170,900 | * |
| Lawrence T. Borgard    President, Chief Executive Officer and Director      |   | 121,090                                                                   | 98,211 | * |
| Phillip M. Mikulsky    Director                                                  |   | 174,896                                                                   | 142,132 | * |
| Joseph P. O'Leary    Senior Vice President, Chief Financial Officer and Director |   | 202,277                                                                   | 181,044 | * |
| Diane L. Ford   Vice President and Corporate Controller                               |   | 73,827                                                                    | 58,882 | * |
| William J. GucTreasurer                                                                              |   | 3,174                                                                     | - | * |
| William D. Laakso    Director                                                    |   | 9,120                                                                     | 7,448 | * |
| James F. Schott    Vice President – External Affairs                       |   | 33,243                                                                    | 28,267 | * |
| Barth J. Wolf    Secretary                                                       |   | 52,814                                                                    | 44,621 | * |
|                                                                                                 |   |                                                                      |   |   |
| All 9 directors and executive officers as a group                                                    |   | 866,121                                                                   | 731,505 | 1.1% |

|   |  * | Less than 1% of Integrys Energy Group's outstanding shares of common stock as of December 31, 2010 |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | (1) | Includes shares and share equivalents of common stock held in the WPS Employee Stock Ownership Plan and Trust, the WPS Deferred Compensation Trust, and all stock options exercisable within 60 days of February 1, 2011.  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               |   | 2010   |      |   | 2009   |   |
|--------------------|--------|--------|-----------|--------|--------|--------|
| Audit Fees (a)     |   | $      | 722,438   |   |   | $      | 671,160 |   |
| Tax Fees (b)       |   |   | 305,791   |   |   |   | 179,387 |   |
| All Other Fees (c) |   |   | 891       |   |   |   | 630 |   |
| Total Fees         |   | $      | 1,029,120 |   |   | $      | 851,177 |   |

| a)   | Audit Fees. Consists of aggregate fees for the audits of the annual consolidated financial statements and reviews of the interim condensed consolidated financial statements included in quarterly reports.  For 2009, this also includes 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)   | Tax Fees. Consists of fees billed for professional services rendered for tax compliance. |
|----------------|------------------------------------------------------------------------------------------|

| c)   | 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 2010 and 2009.  The nature of the software license fees, which include support, learning services, and training, has been deemed as permissible non-attest services. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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, 2010, 2009, and 2008 | 41 |
|                                    |   |
|                                    | Consolidated Balance Sheets as of December 31, 2010 and 2009 | 42 |
|                                    |   |
|                                    | Consolidated Statements of Capitalization as of December 31, 2010 and 2009 | 43 |
|                                    |   |
|                                    | Consolidated Statements of Common Shareholder's Equity for the three years ended December 31, 2010, 2009, and 2008 | 44 |
|                                    |   |
|                                    | Consolidated Statements of Cash Flows for the three years ended December 31, 2010, 2009, and 2008 | 45 |
|                                    |   |
|                                    | Notes to Consolidated Financial Statements | 46 |
|                                    |   |   |
|                                    | Report of Independent Registered Public Accounting Firm | 79 |
|                                    |   |   |
| (2)                                     | Financial Statement Schedule. The following financial statement schedule is 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                                                                                 |                   |
| Phillip M. Mikulsky *                                                                                                                                                                                                                                                                                                                                                                                            | Director                                                                                 |                   |
| James F. Schott *                                                                                                                                                                                                                                                                                                                                                                                                | Director                                                                                 |                   |
| Charles A. Schrock *                                                                                                                                                                                                                                                                                                                                                                                             | Director and Chairman                                                                    |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
| /s/ Lawrence T. Borgard                                                                                                                                     | President, Chief Executive Officer and Director(principal executive officer)             | February 23, 2011 |
| Lawrence T. Borgard                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                     |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
| /s/ Joseph P. O'Leary                                                                                                                                            | Senior Vice President, Chief Financial Officer and Director(principal financial officer) | February 23, 2011 |
| Joseph P. O'Leary                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                     |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
| /s/ Diane L. Ford                                                                                                                                                | Vice President and Corporate Controller(principal accounting officer)                    | February 23, 2011 |
| Diane L. Ford                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                     |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                     |                   |
| * By: /s/ Diane L. Ford                                                               |                                                                                     |                   |
|         Diane L. Ford                                                                                                                                                                                                                                                                                                                                                    | Attorney-in-Fact                                                                         | February 23, 2011 |

----

|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |
|---------------------------------------------------------------------------------------------|--------|--------------|--------|--------|-------------|--------|--------|----------------|--------|--------|-------------|--------|
| SCHEDULE II                                                                                 |   |         |   |   |        |   |   |           |   |   |        |   |
| WISCONSIN PUBLIC SERVICE CORPORATION                                                        |   |         |   |   |        |   |   |
| VALUATION AND QUALIFYING ACCOUNTS                                                           |   |         |   |   |        |   |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |
| Allowance for Doubtful Accounts                                                             |   |
| Years Ended December 31, 2010, 2009, and 2008                                               |   |
| (In millions)                                                                               |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |
|                                                                                        |   | Balance at   |   |   | Additions   |   |   |           |   |   |        |   |
|                                                                                        |   | Beginning of |   |   | Charged to  |   |   |           |   |   | Balance at  |   |
| Fiscal Year                                                                                 |   | Year         |   |   | Expense (1) |   |   | Reductions (2) |   |   | End of Year |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |
| 2008                                                                                        |   | $            | 4.0    |   |        | $      | 9.4    |           |   | $      | 8.6         |   |   | $ | 4.8 |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |   |   |   |   |
| 2009                                                                                        |   | $            | 4.8    |   |        | $      | 11.7   |           |   | $      | 11.5        |   |   | $ | 5.0 |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |   |   |   |   |
| 2010                                                                                        |   | $            | 5.0    |   |        | $      | 7.3    |           |   | $      | 9.2         |   |   | $ | 3.1 |   |
|                                                                                        |   |         |   |   |        |   |   |           |   |   |        |   |   |   |   |   |
| (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); Fortieth Supplemental Indenture, dated as of December 1, 2008 (Incorporated by reference to Exhibit 4.2 to Form 8-K filed December 4, 2008); Forty-First Supplemental Indenture, dated as of December 18, 2008 (Incorporated by reference to Exhibit 4.1 to Form 10-Q filed May 6, 2010); and 42nd Supplemental Indenture, dated as of April 25, 2010 (Incorporated by reference to Exhibit 4.2 to Form 10-Q filed May 6, 2010).  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 Phillip M. Mikulsky.  (Incorporated by reference to Exhibit 10.1 to Integrys Energy Group’s Form 10-K filed February 26, 2009.)                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                         |
| 10.9+   | Form of Key Executive Employment and Severance Agreement entered into between Integrys Energy Group and each of the following:  Charles A. Schrock, Joseph P. O'Leary, Lawrence T. Borgard, Diane L. Ford, and Barth J. Wolf.  (Incorporated by reference to Exhibit 10.1 to Integrys Energy Group’s Form 8-K filed May 12, 2010.) |
|    |                                                                                                                                                                                                                                                                                                                                                         |
| 10.10+  | Integrys Energy Group Executive Change in Control Severance Plan applicable to the following: William D. Laakso and James F. Schott.  (Incorporated by reference to Exhibit 10.3 to Integrys Energy Group’s Form 10-K filed February 25, 2011.)                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                         |
| 10.11+  | Form of Integrys Energy Group 2005 Omnibus Incentive Compensation Plan Performance NonQualified Stock Option Agreement approved December 7, 2005.  (Incorporated by reference to Exhibit 10.1 to Integrys Energy Group's and WPS's Form 8-K filed December 13, 2005.)                                                                              |

----

|   |                                                                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.12+ | Form of Integrys Energy Group 2005 Omnibus Incentive Compensation Plan Performance NonQualified Stock Option Agreement approved December 7, 2006.  (Incorporated by reference to Exhibit 10.2 to Integrys Energy Group's and WPS's 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 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].)       |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.15+ | 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].)      |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.16+ | 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].) |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.17+ | 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].)  |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.18+ | Form of Integrys Energy Group, Inc. 2010 Omnibus Incentive Compensation Plan Performance Stock Right Agreement approved September 16, 2010.  (Incorporated by reference to Exhibit 10.3 to Integrys Energy Group’s Form 8-K filed September 22, 2010.)                                                       |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.19+ | Form of Integrys Energy Group, Inc. 2010 Omnibus Incentive Compensation Plan Restricted Stock Unit Award Agreement approved September 16, 2010.  (Incorporated by reference to Exhibit 10.4 to Integrys Energy Group’s Form 8-K filed September 22, 2010.)                                                   |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.20+ | Form of Integrys Energy Group, Inc. 2010 Omnibus Incentive Compensation Plan Nonqualified Stock Option Agreement approved September 16, 2010.  (Incorporated by reference to Exhibit 10.5 to Integrys Energy Group’s Form 8-K filed September 22, 2010.)                                                     |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.21+ | 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].)                                       |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.22+ | Integrys Energy Group, Inc. Deferred Compensation Plan, as Amended and Restated Effective January 1, 2011.  (Incorporated by reference to Exhibit 10.1 to Integrys Energy Group’s Form 8-K filed September 22, 2010.)                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                         |
| 10.23+ | 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.)                                                                    |

----

|   |                                                                                                                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24+ | 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.) |

|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.25+        | 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].)                                                                                                                                                                     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.26+        | Integrys Energy Group 2010 Omnibus Incentive Compensation Plan.  (Incorporated by reference to Exhibit 4 to Integrys Energy Group's Registration Statement on Form S-8 (Reg. No. 333-168540) filed August 5, 2010.)                                                                                                                                                                                        |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.27+        | 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.)                                                                                                                                                         |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.28+        | Integrys Energy Group, Inc. Pension Restoration and Supplemental Retirement Plan, as Amended and Restated Effective January 1, 2011.  (Incorporated by reference to Exhibit 10.2 to Integrys Energy Group’s Form 8-K filed September 22, 2010.)                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 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 2011 Annual Meeting of Shareholders.  [To be filed with the SEC under Regulation 14A within 120 days after December 31, 2010; except to the extent specifically incorporated by reference, the Proxy Statement for the 2011 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.                                                                                                                                |

----