SEGMENT OF BUSINESS

3 Months Ended

Mar. 31, 2013

SEGMENT OF BUSINESS

SEGMENT OF BUSINESS

NOTE 22 — SEGMENT OF BUSINESS

At March 31, 2013, we reported five segments, which are described below.

• The natural gas utility segment includes the regulated natural gas utility operations of MERC, MGU, NSG, PGL, and WPS.

• The electric utility segment includes the regulated electric utility operations of UPPCO and WPS.

• The electric transmission investment segment includes our approximate 34% ownership interest in ATC. ATC is a federally regulated electric transmission company.

• Integrys Energy Services is a diversified nonregulated retail energy supply and services company that primarily sells electricity and natural gas in deregulated markets. In addition, Integrys Energy Services invests in energy assets with renewable attributes.

• The holding company and other segment includes the operations of the Integrys Energy Group holding company, ITF, and the PELLC holding company, along with any nonutility activities at IBS, MERC, MGU, NSG, PGL, UPPCO, and WPS.

The tables below present information related to our reportable segments:

	Regulated Operations											Nonutility and Nonregulated Operations
(Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Total Regulated Operations			Integrys Energy Services		Holding Company and Other			Reconciling Eliminations			Integrys Energy Group Consolidated
Three Months Ended
March 31, 2013
External revenues	$	792.0		$	331.8		$	—	$	1,123.8		$	545.4	$	9.0		$	—		$	1,678.2
Intersegment revenues	1.9			—			—		1.9			0.3		0.4			(2.6		)	—
Depreciation and amortization expense	32.2			21.5			—		53.7			2.7		4.6			(0.1		)	60.9
Earnings from equity method investments	—			—			21.7		21.7			0.2		0.4			—			22.3
Miscellaneous income	0.2			1.6			—		1.8			0.4		7.2			(3.7		)	5.7
Interest expense	12.7			9.1			—		21.8			0.5		10.7			(3.7		)	29.3
Provision (benefit) for income taxes	63.3			16.1			8.3		87.7			27.3		(5.4		)	—			109.6
Net income (loss) from continuing operations	89.8			29.3			13.4		132.5			51.3		(1.6		)	—			182.2
Discontinued operations	—			—			—		—			0.1		6.0			—			6.1
Preferred stock dividends of subsidiary	(0.1		)	(0.7		)	—		(0.8		)	—		—			—			(0.8		)
Net income attributed to common shareholders	89.7			28.6			13.4		131.7			51.4		4.4			—			187.5

	Regulated Operations											Nonutility and Nonregulated Operations
(Millions)	Natural Gas Utility			Electric Utility			Electric Transmission Investment		Total Regulated Operations			Integrys Energy Services			Holding Company and Other			Reconciling Eliminations			Integrys Energy Group Consolidated
Three Months Ended
March 31, 2012
External revenues	$	664.0		$	307.0		$	—	$	971.0		$	269.4		$	7.5		$	—		$	1,247.9
Intersegment revenues	1.7			—			—		1.7			0.2			0.7			(2.6		)	—
Depreciation and amortization expense	32.4			22.0			—		54.4			2.3			5.5			(0.1		)	62.1
Earnings from equity method investments	—			—			20.8		20.8			0.1			0.2			—			21.1
Miscellaneous income	0.2			0.1			—		0.3			0.6			5.7			(4.2		)	2.4
Interest expense	12.0			9.2			—		21.2			0.5			12.9			(4.2		)	30.4
Provision (benefit) for income taxes	51.5			10.2			7.5		69.2			(12.3		)	(9.5		)	—			47.4
Net income (loss) from continuing operations	78.7			25.0			13.3		117.0			(19.1		)	0.9			—			98.8
Discontinued operations	—			—			—		—			(1.0		)	1.9			—			0.9
Preferred stock dividends of subsidiary	(0.1		)	(0.7		)	—		(0.8		)	—			—			—			(0.8		)
Net income (loss) attributed to common shareholders	78.6			24.3			13.3		116.2			(20.1		)	2.8			—			98.9