GUARANTEES (Tables)

12 Months Ended

Dec. 31, 2011

GUARANTEES

Schedule of outstanding guarantees

			Expiration
(Millions)	Total Amounts Committed At December 31, 2011		Less Than 1 Year		1 to 3 Years		Over 3 Years
Guarantees supporting commodity transactions of subsidiaries (1)	$	614.2	$	387.6	$	4.9	$	221.7
Standby letters of credit (2)	64.0		33.4		30.6		—
Surety bonds (3)	13.5		13.5		—		—
Other guarantees (4)	42.8		—		20.0		22.8
Total guarantees	$	734.5	$	434.5	$	55.5	$	244.5

(1)Consists of our guarantees of $431.8 million to support the business operations of Integrys Energy Services; $119.1 million and $56.3 million, respectively, related to natural gas supply at MERC and MGU; and $5.0 million at IBS, and $2.0 million at UPPCO to support business operations. These guarantees are not reflected on our Balance Sheets.

(2)At our request or the request of our subsidiaries, financial institutions have issued standby letters of credit for the benefit of third parties that have extended credit to our subsidiaries. This amount consists of $61.5 million issued to support Integrys Energy Services’ operations and $2.5 million related to letters of credit issued to support UPPCO, WPS, MGU, NSG, MERC, PGL, and Pinnacle operations. These amounts are not reflected on our Balance Sheets.

(3)Primarily for workers compensation self insurance programs and obtaining various licenses, permits, and rights of way. These guarantees are not reflected on our Balance Sheets.

(4)Consists of (a) $20.0 million related to the sale agreement for Integrys Energy Services’ United States wholesale electric marketing and trading business, which included a number of customary representations, warranties, and indemnification provisions. In addition, for a two-year period, counterparty payment default risk was retained with approximately 50% of the counterparties associated with the commodity contracts transferred in this transaction; (b) $10.0 million related to the sale agreement for Integrys Energy Services’ Texas retail marketing business, which included a number of customary representations, warranties, and indemnification provisions. An insignificant liability was recorded related to the possible imposition of additional miscellaneous gross receipts tax in the event of a change in law or interpretation of the tax law; (c) $5.0 million related to an environmental indemnification provided by Integrys Energy Services as part of the sale of the Stoneman generation facility, under which we expect that the likelihood of required performance is remote (this amount is not reflected on the Balance Sheets); and (d) $7.8 million related to other indemnifications primarily for workers compensation self insurance programs . This amount is not reflected on our Balance Sheets.

Schedule of parental guarantees

(Millions)	December 31, 2011
Guarantees supporting commodity transactions	$	431.8
Standby letters of credit	61.5
Surety bonds	3.2
Other	35.5
Total guarantees	$	532.0