CHICAGO, June 7 /PRNewswire-FirstCall/ -- Integrys Energy Group, Inc. (NYSE: TEG) today announced that its nonregulated subsidiary, Integrys Energy Services, Inc., has sold all of its Texas retail electric marketing business as part of Integrys Energy Group's strategy to reduce the size and scope of its nonregulated marketing and energy services operations.
Financial terms of the transaction involving an unnamed buyer are not being disclosed. The sale, when fully transitioned, will result in a further reduction of collateral support requirements (corporate guarantees, letters of credit, and/or cash) by Integrys Energy Group of about $50 million.
Since Integrys Energy Group announced its strategy change for Integrys Energy Services of reducing the scale and scope of its nonregulated energy services subsidiary operations in February 2009, it has reduced its capital investment for this business by $700 million and reduced its collateral support requirements by $1.4 billion. Integrys Energy Group is on track to reduce its collateral support requirements by another $800 million by December 31, 2010, to a level of $500 million from a peak of $2.6 billion on March 31, 2009.
J.P. Morgan Securities acted as exclusive financial advisor to Integrys Energy Group and Thorndike Landing acted as lead advisor to Integrys Energy Services for this transaction.
Integrys Energy Group remains committed to a smaller-scale nonregulated energy services subsidiary that will provide a more predictable contribution to consolidated earnings with controlled growth and reduced risk compared to its peak in 2008. Integrys Energy Services continues to operate its retail natural gas and electric marketing businesses primarily to small- and medium-sized commercial and industrial customers in the northeastern quadrant of the United States, and continues develop solar and other renewable projects in selected areas throughout the United States. Integrys Energy Services also owns and operates approximately 240 megawatts of conventional (fueled by natural gas, oil, and diesel) merchant power generating units in New York, Wisconsin, and Pennsylvania that it expects to sell over time as the appropriate opportunity arises.
About Integrys Energy Group, Inc.
Integrys Energy Group is a diversified holding company with regulated utility operations operating through six wholly owned subsidiaries, Wisconsin Public Service Corporation, The Peoples Gas Light and Coke Company, North Shore Gas Company, Upper Peninsula Power Company, Michigan Gas Utilities Corporation, and Minnesota Energy Resources Corporation; nonregulated operations serving competitive energy markets through its wholly owned nonregulated subsidiary, Integrys Energy Services; and also a 34% equity ownership interest in American Transmission Company LLC (an electric transmission company operating in Wisconsin, Michigan, Minnesota, and Illinois).
More information about Integrys Energy Group, Inc. is available online at www.integrysgroup.com
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words. Forward-looking statements are beyond the ability of Integrys Energy Group to control and, in many cases, Integrys Energy Group cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.
SOURCE Integrys Energy Group, Inc.