Integrys Energy integrates energy activities in the Windy City and surrounding geographies. The energy holding company owns six regulated utilities: Michigan Gas Utilities Corporation (165,000 gas customers), Minnesota Energy Resources Corporation (212,000 gas customers), North Shore Gas Company (158,000 customers in the northern suburbs of Chicago), Peoples Gas Light and Coke Company (819,000 natural gas customers in Chicago), Wisconsin Public Service (440,000 electric customers and 315,000 natural gas customers in Wisconsin and Michigan), and Upper Peninsula Power (52,000 electricity customers). The company's nonregulated subsidiary, Integrys Energy Services, provides retail energy supply and services.
Integrys Energy Services' largest retail electric markets include Illinois, Michigan, New York, Ohio, and Mid-Atlantic and New England regions. It's biggest retail natural gas markets include Illinois, Michigan, Ohio, Wisconsin, and the Mid-Atlantic region.
Integrys Energy operates in a handful of business segments: Natural gas utility; electric utility; and Integrys Energy Services (a diversified nonregulated retail energy supply and services company that ells electricity and natural gas in deregulated markets ans invests in renewable energy assets).
In addition Integrys Energy also holds a 34% stake in American Transmission Company (ATC, an electric transmission firm which operates in Illinois, Michigan, Minnesota, and Wisconsin).
The company's revenues decreased by 10% in 2012 due to a 16% drop in natural gas utility segment revenues as the result of a 20% slump in the cost of natural gas sold during 2012 and 11% lower nonregulated segment revenues caused by lower commodity prices (partially offset by higher retail electric sales volumes).
Integrys Energy's net income grew by 24% in 2012 primarily due to higher earnings from equity method investments related to its ATC holding and an increase in miscellaneous income.
The company is seeking to balance growing its our core regulated businesses with developing nonregulated energy services businesses with a high growth potential. In this regard he company is eyeing the growth of the compressed natural gas (CNG) market as more companies and government agencies expand their natural gas vehicle fleets.
In 2012 Integrys Energy subsidiary Trillium USA announced a joint venture with AMP Americas called AMP Trillium to build CNG stations along the I-65 and I-75 trucking corridors and major routes in Texas.
Mergers and Acquisitions
In 2011 Integrys Energy moved into the CNG fueling business through the acquisition of Pinnacle CNG Systems and Trillium USA for an undisclosed price.
Growing its energy capacity, in 2012 Wisconsin Public Service agreed to buy Fox Energy (with a 593 MW power plant) for $440 million.
Integrys Energy took its current name after the 2007 acquisition of Peoples Energy for $1.5 billion.
In order to reduce its debt, and refocus on lower-risk regulated operations, the company has steadily sold its non-regulated segment (formerly the largest contributor to total revenues). In 2009 the company sold Integrys Energy Services' non-retail energy services operations to U.S. Energy Services (based in Minneapolis). In 2009 and 2010 it also sold that unit's wholesale natural gas and electric marketing and Canadian energy marketing businesses. Integrys Energy Services has narrowed its focus to retail accounts and renewable energy investments.