SEGMENTS OF BUSINESS

6 Months Ended

Jun. 30, 2011

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS

NOTE 15—SEGMENTS OF BUSINESS

At June 30, 2011, we reported three segments.  We manage our reportable segments separately due to their different operating and regulatory environments.  Our principal business segments are the regulated electric utility operations and the regulated natural gas utility operations.  The other segment includes nonutility activities, including equity earnings from our investments in WRPC and WPS Investments, LLC, which holds an interest in ATC.

The table below presents information related to our reportable segments:

	Regulated Utilities
(Millions)	Electric Utility			Natural Gas Utility			Total Utility			Other		Reconciling Eliminations			WPS Consolidated
Three Months Ended June 30, 2011
External revenues	$	289.8		$	61.2		$	351.0		$	0.3	$	(0.3	)	$	351.0
Intersegment revenues	—			2.8			2.8			—		(2.8		)	—
Depreciation and amortization expense	19.9			3.8			23.7			0.2		(0.2		)	23.7
Miscellaneous income	0.2			—			0.2			4.1		—			4.3
Interest expense	10.9			2.5			13.4			0.6		—			14.0
Provision for income taxes	10.1			—			10.1			2.0		—			12.1
Preferred stock dividend requirements	(0.7		)	(0.1		)	(0.8		)	—		—			(0.8		)
Net income (loss) attributed to common shareholder	17.2			(1.0		)	16.2			1.4		—			17.6
Three Months Ended June 30, 2010
Operating revenues	$	293.4		$	51.7		$	345.1		$	0.2	$	(0.3	)	$	345.0
Depreciation and amortization expense	23.0			5.7			28.7			0.2		(0.2		)	28.7
Miscellaneous income	0.2			0.1			0.3			4.2		—			4.5
Interest expense	10.0			2.7			12.7			0.7		—			13.4
Provision for income taxes	12.9			(1.7		)	11.2			1.9		—			13.1
Preferred stock dividend requirements	(0.7		)	(0.1		)	(0.8		)	—		—			(0.8		)
Net income (loss) attributed to common shareholder	24.8			(2.6		)	22.2			1.5		—			23.7

	Regulated Utilities
(Millions)	Electric Utility			Natural Gas Utility			Total Utility			Other		Reconciling Eliminations			WPS Consolidated
Six Months Ended June 30, 2011
External revenues	$	583.2		$	209.6		$	792.8		$	0.7	$	(0.7	)	$	792.8
Intersegment revenues	—			4.7			4.7			—		(4.7		)	—
Depreciation and amortization expense	40.2			7.5			47.7			0.3		(0.3		)	47.7
Miscellaneous income (expense)	0.3			(0.1		)	0.2			7.0		—			7.2
Interest expense	22.0			5.1			27.1			1.2		—			28.3
Provision for income taxes	20.2			12.2			32.4			2.8		—			35.2
Preferred stock dividend requirements	(1.3		)	(0.3		)	(1.6		)	—		—			(1.6		)
Net income attributed to common shareholder	39.5			18.5			58.0			3.1		—			61.1
Six Months Ended June 30, 2010
Operating revenues	$	598.9		$	213.1		$	812.0		$	0.7	$	(0.7	)	$	812.0
Depreciation and amortization expense	45.8			11.5			57.3			0.3		(0.3		)	57.3
Miscellaneous income	0.3			0.1			0.4			6.9		—			7.3
Interest expense	20.0			5.3			25.3			1.8		—			27.1
Provision for income taxes	28.5			13.0			41.5			2.2		—			43.7
Preferred stock dividend requirements	(1.3		)	(0.3		)	(1.6		)	—		—			(1.6		)
Net income attributed to common shareholder	49.5			18.7			68.2			3.0		—			71.2