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Environmental Performance Report . 2010 real differences

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Page 1: real differences · to produce gas. The process also resulted in byproducts including tars, oils and wood chips. Over time, some byproducts found their way into the soil and groundwater

Environmental Performance Report . 2010

real differences

Page 2: real differences · to produce gas. The process also resulted in byproducts including tars, oils and wood chips. Over time, some byproducts found their way into the soil and groundwater

Integrys Environmental Performance Report . 2010

Integrys Energy Group (NYSE: TEG) is a leading Midwest energy company focused on providing customers with the best value in energy and related services. We’re headquartered in Chicago, Illinois, and have seven energy subsidiaries:

• The Peoples Gas Light and Coke Company, a regulated natural gas utility serving the city of Chicago.

• Wisconsin Public Service Corporation, a regulated electric and natural gas utility serving northeastern Wisconsin and an adjacent portion of Michigan’s Upper Peninsula.

• Minnesota Energy Resources Corporation, a regulated natural gas utility serving communities throughout Minnesota.

• Michigan Gas Utilities Corporation, a regulated natural gas utility serving lower Michigan.

• North Shore Gas Company, a regulated natural gas utility serving the northern suburbs of Chicago.

• Upper Peninsula Power Company, a regulated electric utility serving a portion of Michigan’s Upper Peninsula.

about us

• Integrys Energy Services, Inc., a nonregulated energy supply and services company serving competitive energy markets with traditional and renewable energy solutions.

Our business services subsidiary, Integrys Business Support, provides best-in-class support services for our energy subsidiaries, creating efficiencies and always aiming for operational excellence.

You can learn more about us at www.integrysgroup.com.

About the cover: Bald eagles have recently joined the peregrine falcons that nest in trees outside the J.P. Pulliam Power Plant owned by Wisconsin Public Service. The plant is located in Green Bay, Wisconsin, at the mouth of the Fox River.

Integrys Energy Services

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iIntegrys Environmental Performance Report . 2010

ii Our Environmental Vision & Principles 1 Letter from Our Chairman, President & CEO

2 Real Differences for Our World in 2010 3 Across Integrys 6 Peoples Gas 9 Wisconsin Public Service 14 Michigan Gas Utilities 16 Minnesota Energy Resources 18 North Shore Gas 20 Upper Peninsula Power Company 23 Integrys Energy Services

25 Environmental Performance 25 Carbon Dioxide Emissions 25 Projected Carbon Dioxide Emission Rates 26 Projected Carbon Dioxide Emissions 26 Nitrogen Oxide Emissions 26 Mercury Emissions 26 Sulfur Dioxide Emissions 26 Notices of Violations 26 Renewable Portfolio

Contents

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ii Integrys Environmental Performance Report . 2010

Our Environmental Vision & Principles

“Creating energy solutions for a sustainable tomorrow”

1. Protect the environment. We reduce our impact on the environment and operate our facilities to meet or surpass environmental standards.

2. Use natural resources responsibly. We conserve resources through efficient use, minimize the creation of waste and recycle whenever possible.

3. Use energy wisely. We invest in energy efficiency and conservation in our own operations and help our customers do the same.

4. Improve environmental performance. We commit to implement these principles, continually improve our environmental performance and meet our obligations with

integrity. Our employees use their expertise, innovation and energy to achieve our vision.

5. Safeguard a healthy environment. We supply energy in a way that minimizes adverse impacts and protects the health and safety of our employees, customers and the public. We talk to our customers about using natural gas safely.

6. Engage stakeholders. We rely on open, honest dialog with our employees and the public to improve our environmental performance. We partner with educators, communities and other organizations and consider their environmental expectations in our decision making.

Environmental Principles

Environmental Vision

7. Embrace environmental sustainability. We strive to meet the energy needs of today while ensuring a reliable energy future. This includes making business decisions that will protect and enhance the quality of the environment for current and future generations.

8. Measure and report performance. We regularly review our environmental policy and performance, and assess our operations from an environmental perspective.

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1Integrys Environmental Performance Report . 2010

Integrys Energy Group is fulfilling a vision of “Creating

Energy Solutions for a Sustainable Tomorrow.” As an energy company, we take our responsibility for environmental stewardship to heart. We know the world we share with you depends upon every corporate citizen doing its part to make the world a little bit greener every day.

This report highlights the role we play. It tells the stories of

letter from our chairman, president & ceo

Charles A. Schrock Chairman, President & Chief Executive Officer Integrys Energy Group

Dear Investors and Community Partners,

individual efforts by each of our subsidiaries that add up to real differences for a healthy environment. It also shows that making changes for a better world means benefits for the bottom line. And that’s just good business.

We believe it’s worth the energy to approach our work with a sustainable mindset and to share the environmental ingenuity of our employees with others — to make real differences for our world.

Thank you for reading our report, and for your support of our company and our environmental vision.

Warmest regards,

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Integrys employees are making real differences for our

world, in big ways and in small ways. “Creating energy solutions for a sustainable tomorrow” means looking at every aspect of our work and asking the question, Is there a more responsible way to do this and meet the needs

real differences

of our customers, employees and shareholders? Our environmental stewardship shows in how we generate and deliver energy, and in the way we run our supporting operations.

Here are just some of the stories of our environmental stewardship in 2010.

Integrys Environmental Performance Report . 20102

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across integrys

Art Lopez, a senior service specialist at Peoples Gas, fuels his work van with compressed natural gas. Using compressed natural gas has helped reduce Integrys Energy Group’s carbon footprint.

3Integrys Environmental Performance Report . 2010

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4 Integrys Environmental Performance Report . 2010

Reducing CO2 with Every Mile

Across Integrys

Integrys’ regulated utilities own about 2,200 vehicles and an additional 700 pieces of motorized equipment.

In 2010, our fleet vehicles and equipment consumed 100,000 fewer gallons of fuel than in 2009, preventing more than 1,000 tons of carbon dioxide (CO2) from reaching the air. This was accomplished in a variety of ways:

• Reducingvehicleidling.

• Improvingouremployees’driving practices, such as reducing hard braking and acceleration.

• Decreasingvehicleweightfor better mileage.

• Buyingandusingsmaller,lighter vehicles when appropriate.

• Buyingalternative-fuelvehicles, such as trucks using compressed natural gas.

Our goal is to reduce CO2 output as a company.

According to Tim Harteau, fleet services director at Integrys Business Support, “This can happen by using less fuel. But it can also be accomplished by using less carbon-intensive fuel. The vehicles that are fueled with compressed natural gas at our Illinois locations and the electric hybrid vehicles at Michigan Gas Utilities are examples of using vehicles that produce less carbon dioxide.”

Integrys measures progress toward the goal by tracking gallons of fuel used from our own in-ground fuel tanks and

fuel purchased at local gas stations. We total the gallons used across the enterprise and multiply by a factor to arrive at the amount of CO2 produced.

In addition to reducing CO2, our regulated utilities reduced their fuel costs by approximately $285,000 in 2010, a real bottom-line savings stemming from our environmental stewardship efforts.

In 2011 and beyond, our efforts to reduce the CO2 output at Integrys will continue by further decreasing our consumption of gasoline and diesel fuel in our fleet vehicles.

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5Integrys Environmental Performance Report . 2010

Making Recycling Easier Than Ever

Across Integrys

Single-stream recycling is a system that mixes all recyclable materials together. Paper, plastics, glass and other recyclable materials are all placed in the same collection containers, rather than being sorted. Using single-stream recycling brings benefits for a business like Integrys:

• Recyclingbecomesreallyeasy. Employees are 30% more likely to recycle when they can place all recyclables in the same container.

• Wereducetheneedfortrash disposal service. For example, a 6-yard container of trash that is emptied twice a week can be emptied just once a week when adding a single-stream container.

• Fewertrucksvisitourcompany sites, which means less fuel use and therefore fewer vehicle emissions.

An increase in recycling reduces carbon dioxide and methane emissions, and extends the life of local

landfills. For example, in 2010, Integrys companies recycled 6.58 tons of material in total, which saved:

• 10metrictonsofgreenhouse gas emissions.

• 13barrelsofoil—enoughenergy to heat and cool 32 houses per month.

• 114maturetrees—enoughtrees to produce 1.4 million sheets of newspaper.

• 39,151gallonsofwater—enough fresh water to meet the daily needs of 522 people.

• 26cubicyardsoflandfillspace — enough space to fill the municipal waste disposal needs of 402 people.

Eleven Integrys locations use single-stream recycling — and more are planned. Wherever single-stream recycling is not yet used, we still recycle in other ways, finding markets for any used materials we can.

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peoples gas

Brett Halsey (left), a gas mechanic with Peoples Gas, and Joshua Adeszko (right), a gas mechanic with the utility, install natural gas main.

Integrys Environmental Performance Report . 20106

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7Integrys Environmental Performance Report . 2010

Orchestrating Big Changes with Little Environmental Impact

Peoples Gas & The Environment

Peoples Gas opened 2010 with planning for accelerated natural gas main replacement in Chicago. This is one of the largest projects our company has ever undertaken. The 20-year endeavor to replace about 2,000 miles of cast-iron and ductile-iron pipeline in Chicago will position Peoples Gas as a leader in operational excellence by increasing reliability and reducing maintenance costs. And environmental precautions will ensure this big project has little to no impact on the environment.

For example, with “directional boring,” Peoples Gas crews won’t excavate a trench to do their work. Instead, they’ll bore under the ground surface, eliminating the need to cut open city streets, sidewalks, driveways and lawns — and reducing the amount of restoration work required. In other areas, they’ll simply insert a smaller-diameter pipe inside an existing pipe to further reduce any disturbance.

Some pipe that’s removed will be recycled rather than

brought to a landfill. And construction debris will be recycled whenever possible.

When the work day is done, our crews will use street sweepers to clean the area where they’ve been working, minimizing dirt, mud and dust.

Finally, replacing cast-iron and ductile-iron mains will also reduce natural gas leaks, thereby reducing the release of methane, a greenhouse gas, into the air.

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8 Integrys Environmental Performance Report . 2010

Restoring a Manufactured Gas Storage Site

Peoples Gas & The Environment

On a 16-acre site on 73rd Street in Chicago, crews are completing the last phase of cleaning up a former manufactured gas storage site.

The location was used for storing manufactured gas from about 1928 through 1943. At the time, natural gas wasn’t available as an energy source. So utilities used coal and oil to produce gas. The process also resulted in byproducts including tars, oils and wood chips. Over time, some byproducts found their way into the soil and groundwater.

From 2001 through 2004, Peoples Gas completed investigations and an initial clean-up of the site. Because it was home to some current operations, however, clean-up could only go so far. During the initial clean-up, about 66,000 tons of contaminated soil was removed, and containment structures were installed where excavation wasn’t possible.

The second clean-up began in October 2010 after all current operations had closed. We demolished structures,

removed underground tanks and excavated another 55,000 tons of contaminated soil. Throughout the process, we monitored the air to ensure standards were met and that people near the site were protected. The project is expected to be completed by spring 2011.

Completing this work is good for the environment, of course, and could provide opportunities for future development.

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wisconsin public service

9Integrys Environmental Performance Report . 2010

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10 Integrys Environmental Performance Report . 2010

Leading the Way in Anaerobic Digesters

Wisconsin Public Service & The Environment

In 2010, Wisconsin Public Service purchased biogas-produced electricity from 11 of Wisconsin’s 25 active farm-based anaerobic digesters — or 44 percent of the digesters in the state. This makes Wisconsin Public Service the leading utility purchaser of biogas in Wisconsin.

In fact, of the approximately 404 million kilowatt-hour (kWh) equivalent of usable energy produced by digesters in the United States, Wisconsin

dominated production nationally with more than 95 million kWh.

On a related note, in 2010 Wisconsin Public Service helped a rural Brown County, Wisconsin, business start making electricity using waste from the food processing industry. This anaerobic biodigester, a joint venture of American Foods Group and NEW Organic Digestion, a division of Northern Concrete, generates about

1,200 kilowatts of electricity per hour, along with usable heat, fertilizer and animal bedding — while solving the problem of what to do with food-processing byproducts. Wisconsin Public Service buys the electricity.

When it comes to creating energy solutions for a sustainable tomorrow, Wisconsin and our Wisconsin utility have really made great strides in promoting biogas as a viable renewable form of energy.

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11Integrys Environmental Performance Report . 2010

is a real focus at Wisconsin Public Service. In any year, you will find the employees making improvements that reduce the utility’s impact on the environment, help control costs for customers and shareholders and help meet or exceed all environmental requirements for Wisconsin utilities.

In 2010, activities for responsibly generating power included these:

Generating Electricity Responsibly

Most of the electricity Wisconsin Public Service customers use — 65% of it — comes from coal-fired power plants. The utility buys another 15% from Dominion’s Kewaunee Nuclear Power Station, in Kewaunee, Wisconsin. And about 4% is generated using natural gas, hydroelectric dams or alternative sources like the wind. The rest is purchased from neighboring utilities.

Generating electricity in the most responsible manner

Wisconsin Public Service & The Environment

• Installing equipment to reduce nitrogen oxide (NOx) emissions: In 2010, employees finished installing secondary overfire air equipment — NOx-reducing equipment — at the Wisconsin Public Service-owned Pulliam and Weston coal-fired power plants (in Green Bay and Wausau, Wisconsin, respectively). This was a final step in a series of NOx reduction projects the utility

Continued on next page.

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12 Integrys Environmental Performance Report . 2010

and Edgewater coal-fired power plants the utility jointly owns with other utilities (in Portage and Sheboygan, Wisconsin, respectively). The equipment was installed in 2009 to meet an annual total poundage limitation for mercury emissions in Wisconsin. Now the plants are in a position to meet the state requirements for mercury reduction through 2015.

• Operating hydroelectric dams skillfully during flooding: In late summer 2010, Wisconsin saw the greatest rainfall it had seen in decades. Flooding was an immediate and very real concern, especially near rivers and dams like the Petenwell and Castle Rock hydro dams (located in Juneau County and Adams County, Wisconsin, respectively). The dams are owned by Wisconsin

Wisconsin Public Service & The Environment

began in 2008. Like other emissions, NOx emissions are regulated by the U.S. Environmental Protection Agency (EPA). Any plant producing NOx must have a corresponding number of emission allowances, or purchase them from another plant to offset emissions that are greater than its EPA allocation of allowances. By reducing our own NOx emissions, we helped improve air quality in northern and central Wisconsin, and we reduced the need to purchase NOx allowances in future years — a savings with an expected payback period of less than five years.

• Commissioning mercury-reduction equipment: In 2010, Wisconsin Public Service commissioned mercury-reducing equipment at its Pulliam and Weston power plants, as well as at the Columbia

Generating Electricity ResponsiblyContinued from page 11.

River Power Company, which is 50% owned by Wisconsin Public Service. Wisconsin Public Service operates the dams and for Wisconsin River Power Company. Our operators at the dams helped control the water level of the rivers and the release from the dams to minimize flooding. As a result, they avoided major damage to personal property near the dam and decreased negative impacts on wildlife habitat in the area.

• Celebrating a year of wind energy: Crane Creek Wind Farm marked a full year of generating renewable energy in 2010. Wisconsin Public Service owns and operates the 66-turbine, 99-megawatt wind farm, located near Riceville, Iowa, and serving customers in Wisconsin. During its first year, the

Continued on next page.

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13Integrys Environmental Performance Report . 2010

wind farm’s turbines were ready and able to operate 97% of the time, which is impressive for a new installation, where start-up issues can surface. During the year, the turbines generated energy 86.5% of the time, and usually they generated a total of 10 megawatts of power. In total during 2010, the Crane Creek Wind Farm produced more than 270,000 megawatt-hours of electricity, enough to

Wisconsin Public Service & The Environment

Generating Electricity ResponsiblyContinued from page 12.

supply the energy needs of roughly 30,000 typical homes.

• Reducing Our Plants’ Energy Use: In 2010, employees at the Pulliam and Weston power plants implemented a large-scale program to reduce electric use within those facilities. First, they conducted critical plant-wide assessments of processes that use energy. Next, they evaluated alternatives for

reducing energy use and implemented the best ideas, sometimes making bold changes to practices. They reduced nonessential lighting, eliminated redundant systems, and right-sized operating equipment or turned it off during low production periods. The utility reduced electricity use by more than 9,000 megawatt-hours in 2010 with efforts at both plants.

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michigan gas utilities

14 Integrys Environmental Performance Report . 2010

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15Integrys Environmental Performance Report . 2010

Michigan Gas Utilities & The Environment

Restoring a Manufactured Gas Plant Site

In spring 2010, Michigan Gas Utilities began restoring a former manufactured gas plant site in Otsego, Michigan. The plant operated in the early 1900s, supplying gas for cooking and heating. As mentioned in our Peoples Gas story on page 9, at the time, natural gas wasn’t available as an energy source. So utilities used coal and oil to produce gas. The process produced byproducts including tars, oils and wood chips during the gas purification process.

As clean-burning natural gas became an option about 75 years ago, manufactured gas plants closed.

In recent years, utilities — including ours — have gone back to the manufactured gas sites to determine if any contaminants remain from past operations.

During the month-long project in Otsego, Michigan Gas Utilities cleaned more than 6,700 tons of contaminated soil and 2,500 gallons of

impacted water at the gas plant site. The project was completed without any safety incidents. And testing during the clean-up activities showed air quality to be well within healthy levels.

Michigan Gas Utilities worked closely with the Michigan Department of Environmental Quality on this project. Now that the clean-up is complete, we have options for using the property or looking at future redevelopment opportunities.

Historic photo of the Ostego gas plant.

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minnesota energy resources

16 Integrys Environmental Performance Report . 2010

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17Integrys Environmental Performance Report . 2010

Minnesota Energy Resources & The Environment

Turning Paper into Trees

Minnesota Energy Resources undertook a real effort in 2010 to convert customers from their traditional paper bill to e-Bill Paperless Billing. Reducing paper bills has several benefits:

• Weuselesspaper,whichisgood for the environment.

• Wereducecosts,becausewe don’t have to pay for paper, printing, envelopes or postage.

• Customersgaintheconvenience of a bill that they can view and pay quickly and easily online, with no envelope to mail and no postage to buy.

Ed Marek, executive director of the Minnesota Environmental Fund, received the $2,000 check Minnesota Energy Resources sent as the result of the “e-Bill Super Paper-Saver Sign-Up” campaign.

To encourage this sustainable and convenient choice, Minnesota Energy Resources launched the “e-Bill Super Paper-Saver Sign-Up” campaign. Based on the number of customers who signed up for e-Bill Paperless billing in October and November, Minnesota Energy Resources would make a donation to the Minnesota Environmental Fund.

“Customers reacted favorably to the offer, allowing us to make a $2,000 donation to the Minnesota Environmental Fund,” reported Ann Carlon, Minnesota Energy Resources’ senior external affairs manager.

The Minnesota Environmental Fund is a state-wide network of Minnesota’s most respected and responsible nonprofit environmental and conservation organizations. They work together to protect, conserve and restore Minnesota’s environment, including improving and managing parks, eliminating toxic threats to the air , land and water, and reducing waste in landfills.

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north shore gas

18 Integrys Environmental Performance Report . 2010

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19Integrys Environmental Performance Report . 2010

Bringing a Living Wall to Life

In 2010, North Shore Gas delivered more than natural gas to the northern suburbs of Chicago. The utility partnered with and supported the Preservation Foundation and the Lake County Forest Preserves district to bring an active “living wall” to the district’s Greenbelt Cultural Center in North Chicago.

The Forest Preserves are expanding and improving the cultural center through an 11,400-square-foot addition that will improve educational programming, better accommodate groups and enhance the use of energy-efficient green technologies. The center’s

North Shore Gas & The Environment

Rendering courtesy of the Preservation Foundation of the Lake County Forest Preserves.

Living Wall is a vertical garden designed to reduce energy costs and remove indoor air contaminants.

Here’s how it works: Air is drawn in through the wall’s plant system, exposing the roots of the plants to the air. Microbes on the plant roots trap and ingest air pollutants, essentially cleaning the air. In addition, the wall is integrated into the building’s heating, ventilation and air-conditioning system to reduce the amount of outside air required in the building.

The Living Wall will provide environmental education in conjunction with programs offered at the cultural center.

It is the first Living Wall to be installed east of the Mississippi.

The Preservation Foundation was founded to provide real, meaningful ways for the community to partner in the mission of the Lake County Forest Preserves: “Working to preserve and restore the habitats that our native wildlife and plants need to survive and thrive.” North Shore Gas stands by its commitment to the community and environment, and supports the ongoing environmental educational opportunities the cultural center offers the community of North Chicago.

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upper peninsula power company

Improvements at the McClure Hydro, in Marquette County, Michigan, included

replacing a 2.5 mile, 7-foot-diameter water pipe.

20 Integrys Environmental Performance Report . 2010

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21Integrys Environmental Performance Report . 2010

Upper Peninsula Power Company & The Environment

Caring for Nature’s Original Renewable Energy Resource2010 saw the employees of Upper Peninsula Power Company (UPPCO) focusing in large part on hydroelectric power. They undertook significant maintenance projects at the utility’s McClure and Bond Falls hydro facilities. And they showed environmental stewardship at its best.

Hydro power was our original renewable energy resource — used by Integrys companies for more than a century. Keeping up our hydro facilities, and caring for the natural areas around them, means they’ll continue to provide cost-effective, sustainable energy and recreational enjoyment for years to come. Here’s a summary of what UPPCO accomplished for the environment:

Enhancing Natural Resources

• Boney Falls: Changed operation of the plant

to increase river flow during warm periods. This improves the habitat for trout that live downstream.

• Bond Falls: Modified the outlet that passes water downstream to improve fish habitat and water quality.

• Bond Falls: Redeveloped shoreline areas to prevent erosion caused by waves and public use.

Managing Invasive Species

• Lake Gogebic: Reared and released Galeruca beetles. This leaf beetle feeds on purple loosestrife, a plant that takes over wetlands areas.

• Pricket Hydro: Began a program to control Eurasian water milfoil, a feathery underwater plant that can alter the ecology of a body of water and interfere with water activities.

• Cisco Chain of Lakes: Completed a survey of Eurasian water milfoil, in preparation for a future control program.

• Silver Lake: Controlled spotted knapweed in the unfilled Silver Lake basin, near the dam site and near the Dead River. Spotted knapweed is a plant that crowds out native species.

• Bond Falls: Controlled garlic mustard in new campground areas near the falls. Garlic mustard is a plant that invades woodland areas.

Managing Endangered Species

• Bond Falls: Conducted a survey of the common loon, developed nesting habitat and implemented protection measures.

Continued on next page.

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22 Integrys Environmental Performance Report . 2010

Upper Peninsula Power Company & The Environment

Educating the Public & Making Recreational Improvements

• Hoist and McClure Hydros: Provided property owners near the water with a brochure about shoreline wildlife management.

• Bond Falls: Improved the public boat landings on the

UPPCO Hydro Facilities

GOGEBIC

IRON

BARAGA

MARQUETTE

DICKINSONDELTA

ALGERSCHOOLCRAFT

LUCE

CHIPPEWA

MACKINAC

MENOMINEE

HOUGHTON

KEWEENAW

ONTONAGON

Victoria Hydro Prickett Hydro

Lake Gogebic Dam

Cisco Chain Dam

Bond Falls Dam

Silver Lake Dam

McClure HydroHoist Hydro

Boney Falls Hydro

Escanaba Hydro 3Escanaba Hydro 1

reservoir for enjoyment of the natural area.

Taking Extra Care During Construction

• McClure Hydro: Implemented a program to monitor and protect the natural area during construction of a new

penstock — a 2.5-mile, 7-foot-diameter water pipe.

• Bond Falls: Implemented a program to monitor and protect the natural shoreline area during redevelopment of the dam.

UPPCO Hydro Facilities

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integrys energy services

23Integrys Environmental Performance Report . 2010

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24 Integrys Environmental Performance Report . 2010

Integrys Energy Services & The Environment

Growing a Portfolio of Solar Energy Systems

In 2010, Integrys Energy Services entered a joint venture with Duke Energy Generation Services to jointly own solar energy projects that deliver electricity to commercial, government, and utility customers under long-term power purchase agreements.

Such partnerships give us the ability to invest in more energy projects, alongside strong peers, creating greater diversity within our asset portfolio. In this case, the joint venture has already yielded new projects.

Rooftop solar energy systems are being built at five schools in Pennsylvania.

The Bellefonte Area School District includes three rooftop projects at a high school and two elementary schools, and the Bald Eagle Area School District includes two rooftop projects at a combined middle/high school and an elementary school. All five installations are located within 15 miles of one another and have a total planned installed capacity of approximately 1.5 megawatts. That amount of electricity would meet the electric needs of nearly 150 single-family homes.

Approximately $8 million in total capital is being invested in the projects, which have qualified for about $2.8 million in state grants. The solar

renewable energy credits have been sold under a 10-year contract, and power purchase agreements will be in place with the school districts for 20 years. Four of the five projects are scheduled to be placed into service in the first quarter of 2011, with the final project being completed by summer 2011.

This is an ideal fit for the joint venture, helping Integrys Energy Services continue enhancing its position as a solar energy leader by growing a portfolio of solar systems that are both environmentally and economically attractive.

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25Integrys Environmental Performance Report . 2010

Environmental Performance – Integrys Energy Group

11,143,69510,504,514

12,033,206 12,212,293 12,699,046

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Tons

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Emissions

11,143,69510,504,514

12,033,206 12,212,293 12,785,757

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2006 2007 2008 2009 2010

Tons

Integrys Energy Group's Carbon Dioxide

Emissions*

Met

ric

Tons

* This graph shows the maximum CO2 emission rates assuming the zero-carbon energy from Kewaunee Power Station (a nuclear power plant) will not be in our asset portfolio after 2013. If a post-2013 Kewaunee power purchase agreement and/or another zero-carbon energy contract is executed, these rates will decrease significantly.

0.79 0.79 0.770.95 0.94

0.96 0.95 0.94 0.95 0.95

0.700.800.901.001.10

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e)

Metric Tons per Megawatt- Hour

Projected Emission Rates*

* CO2 tonnage for 2006-09 was calculated using emission factors and /or continuous emission monitors (CEMs). Beginning in 2010, the CO2e (carbon dioxide equivalent) metric tons were calculated using EPA’s Mandatory Greenhouse Gas Reporting Rule methodology; please note the unit change.

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26 Integrys Environmental Performance Report . 2010

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

14 14 1411 11 12 12 13 13 13

11 11 11 11 11 11 12 12 12 1220

s

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

14 14 1411 11 12 12 13 13 13

11 11 11 11 11 11 12 12 12 12

0

10

20

Millions

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

14 14 1411 11 12 12 13 13 13

11 11 11 11 11 11 12 12 12 12

0

10

20

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

M H CO2 M i T Y

14 14 1411 11 12 12 13 13 13

11 11 11 11 11 11 12 12 12 12

0

10

20

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

Megawatt‐Hours CO2e Metric Tons per Year

14 14 1411 11 12 12 13 13 13

11 11 11 11 11 11 12 12 12 12

0

10

20

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millions

Integrys Energy Group's Carbon Dioxide Equivalent (CO2e) Projected Emissions

Megawatt‐Hours CO2e Metric Tons per Year

557

444

555 572507

439

300

400

500

600

700

800

Poun

ds

Integrys Energy Group's Mercury Emissions*

557

444

555 572507

439

0

100

200

300

400

500

600

700

800

2005 2006 2007 2008 2009 2010

Poun

ds

Integrys Energy Group's Mercury Emissions

Environmental Performance – Integrys Energy GroupContinued from page 25.

3.93.6 3.6

2.84.0

5.0

6.0

7.0

8.0

15,000

20,000

25,000

30,000

Meg

awatt

-Hou

r

Tons

Integrys Energy Group's Nitrogen Oxide (NOx) Emissions*

24,713 18,259 16,652 14,972 9,485 9,089

3.93.6 3.6

2.8

1.71.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

5,000

10,000

15,000

20,000

25,000

30,000

2005 2006 2007 2008 2009 2010

Poun

ds p

er M

egaw

att-H

our

Tons

Integrys Energy Group's Nitrogen Oxide (NOx) Emissions

2

5

4

23

4

5

6

of NOVs

Integrys Energy Group's Notices of Violation (NOVs)

2

1 1

5

4

2

0

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010

# of NOVs

Integrys Energy Group's Notices of Violation (NOVs)

66,580

34 54615.0

20.0

25.0

30.0

30 000

40,000

50,000

60,000

70,000

Megaw

att‐Hou

r

Tons 

Integrys Energy Group's Sulfur Dioxide  (SO2) Emissions

66,580

34,54630,447 29,610

22,93327,308

10.6

6.7 6.6 5.64.1 3.2 0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009 2010

Poun

ds per M

egaw

att‐Hou

r

Tons 

Integrys Energy Group's Sulfur Dioxide  (SO2) Emissions

34%46%

10%1%

3% 6%

Integrys Energy Group's Renewable Portfolio for 2010

Hydro Wind Landfill Solar Farm Biomass Residues

Page 31: real differences · to produce gas. The process also resulted in byproducts including tars, oils and wood chips. Over time, some byproducts found their way into the soil and groundwater

If you have questions about Integrys Energy Group and its activities in

the environment, please e-mail us at [email protected].

Page 32: real differences · to produce gas. The process also resulted in byproducts including tars, oils and wood chips. Over time, some byproducts found their way into the soil and groundwater

Printed on paper that contains 30% recycled post-consumer fiber.

integrysgroup.com

Integrys Energy Group130 East Randolph StreetChicago, IL 60601

Environmental Stewardship – It’s Worth the Energy.

Environmental Performance Report . 2010

real differences