STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 10—STOCK-BASED COMPENSATION

Our employees may be granted awards under Integrys Energy Group’s stock-based compensation plans.  At June 30, 2011, stock options, performance stock rights, restricted shares and restricted share units were outstanding under the various plans.  Compensation cost associated with these awards is allocated to us based on the percentages used for allocation of the award recipients’ labor costs.

Compensation cost recognized for stock options was not significant during the three and six months ended June 30, 2011, and 2010.

Compensation cost recognized for performance stock rights during the three months ended June 30, 2011, and 2010, was $0.7 million and $0.5 million, respectively.  Compensation cost recognized for performance stock rights during the six months ended June 30, 2011, and 2010, was $0.4 million and $1.0 million, respectively.

Compensation cost recognized for restricted share and restricted share unit awards during the three months ended June 30, 2011, and 2010, was $1.1 million and $0.5 million, respectively.  Compensation cost recognized for these awards during the six months ended June 30, 2011, and 2010, was $1.9 million and $1.1 million, respectively.