2008 marks 50th consecutive year of dividend increases
CHICAGO, May 15 /PRNewswire-FirstCall/ -- Integrys Energy Group, Inc. (NYSE:TEG) President and Chief Executive Officer Larry L. Weyers was upbeat in his remarks to shareholders at the company's annual meeting held at the Chase Auditorium in Chicago. Listing several examples, Weyers told of significant progress at combining the former WPS Resources Corporation and Peoples Energy Corporation.
"Despite many challenges (such as falling real estate prices, the sub-prime loans in the financial sector, rising energy costs for all types of energy, and a devalued dollar), employees across the Integrys enterprise continued moving forward, meeting deadlines, passing milestones, and completing activities to ensure the continuing success of our company," said Weyers. "We captured $38 million in synergy savings in the past year and are on a path to capture $73 million in permanent savings in 2008." Weyers added, "We sold our Peoples Energy Production subsidiary, which reduced the risk profile of the company, reduced cash requirements for capital expenditures, and resulted in a significant cash infusion well beyond the pre-merger pro forma estimates. In addition, we filed the first rate cases for Peoples Gas and North Shore Gas in 12 years and were reasonably successful with a rate increase of approximately $71 million at Peoples Gas and a provision that will allow us to continue promoting energy efficiency without harming future returns." The company received new retail electric rates at Wisconsin Public Service in 2008 and expects to file for new retail natural gas rates for Michigan Gas Utilities and Minnesota Energy Resources in 2008.
"A major part of our strategy is to provide shareholders with attractive returns," Weyers noted. "Our common stock dividend currently provides a return of over 5%, and this year we are celebrating the 50th consecutive year of dividend increases. We are proud of that record." Weyers also spoke of the company's "exceptionally high" rankings in governance from two leading governance ratings services. One ranked Integrys Energy Group higher than 93% of companies in the energy industry and 88% of the companies in the S&P 500, while the other gave the company a perfect "10" in their global ratings, which include 4,000 companies worldwide.
"Moving forward, the future for Integrys Energy Group is full of opportunity," said Weyers. "Integrys is poised for growth. The platforms are in place to accommodate physical growth, and the plans are in place to realize growth in earnings. In addition, our risk profile has been substantially improved with a much larger utility base providing an estimated 75% of our earnings for the next few years. Our capital expenditures have shifted to renewable projects, energy efficiency, emission reductions, and conservation. These are investments that support our strategy to move us closer to being a green company. And, although we have a substantial investment opportunity, we will invest with a cautious eye on the associated price increases for our customers. We must ensure that we meet our mission of providing customers with the best value in energy." This meeting was the last for Chairman of the Board Jim Boris who announced that Larry Weyers will succeed him as Chairman of the Board effective today.
In addition, Bob Gallagher, one of Integrys Energy Group's independent directors, has been selected as Lead Director. "These gentlemen held those roles prior to the merger," said Boris, "so I am confident the Board will have outstanding leadership under their direction and they will take their stewardship responsibilities seriously as they continue to safeguard investments in Integrys Energy Group." Weyers will retain his role as President and Chief Executive Officer.
Also at the meeting, Senior Vice President and Chief Human Resources Officer Bud Treml presented the Recognition of Valor Award to the following employees: -- Herb Skiple -- Service Technician for Minnesota Energy Resources in
Thief River Falls, Minnesota. Herb entered a burning mobile home and
rescued a woman and two young children. -- Louis Derks -- Auxiliary Operator for Wisconsin Public Service
Corporation at the Weston Power Plant in Wausau, Wisconsin. Louis
performed the Heimlich maneuver on an employee until the piece of
sandwich became dislodged from the employee's airway and breathing
resumed. -- Wayne Exe -- Field Technician for Minnesota Energy Resources in
Rushford, Minnesota, and a volunteer fire fighter. During heavy rain
and flooding, Wayne assisted with the evacuation of residents in the
community, despite suffering personal loss to his property, home, and
pet. -- James Van Stechelman -- Meter Reader/Field Services Representative for
Wisconsin Public Service Corporation in Green Bay, Wisconsin. While
reconnecting an electric meter, Jim noticed that the meter dial
immediately started spinning, which meant something electrical within
the apartment, was operating and using current. Jim alerted the
apartment manager, then smelled smoke and noticed flames in the
apartment. Jim immediately dialed 911 and summoned the fire
department. He then proceeded to evacuate the occupants from the
remaining apartments. -- Delvin Wurz -- Coal and Yard Operator at Wisconsin Public Service's
Weston Power Plant in Wausau, Wisconsin. Delvin positioned himself
alongside a runaway train of 30 railcars moving towards the turbine
room, hit the air release valve in the front car, which activated the
air break. The train stopped just short of hitting the turbine
generator, which could have caused an explosion and possible loss of
life of the people in the control room. Forward-Looking Statements
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.
About Integrys Energy Group, Inc.
Integrys Energy Group, Inc. (NYSE:TEG), headquartered in Chicago, Illinois, is a holding company for energy related subsidiaries, which includes regulated utilities and nonregulated subsidiaries.
The six regulated utilities consist of: -- The Peoples Gas Light and Coke Company, a natural gas utility serving
approximately 830,000 customers in the City of Chicago. -- Wisconsin Public Service Corporation, an electric and natural gas
utility serving approximately 433,000 electric customers and 314,000
natural gas customers in northeastern Wisconsin and an adjacent
portion of Michigan's Upper Peninsula. -- Minnesota Energy Resources Corporation, a natural gas utility serving
approximately 207,000 customers throughout Minnesota. -- Michigan Gas Utilities Corporation, a natural gas utility serving
approximately 165,000 customers in lower Michigan. -- North Shore Gas Company, a natural gas utility serving approximately
158,000 customers in the northern suburbs of Chicago. -- Upper Peninsula Power Company, an electric utility serving
approximately 52,000 customers in Michigan's Upper Peninsula. The company's principal nonregulated subsidiary is: -- Integrys Energy Services, Inc., a diversified nonregulated energy supply and services company serving residential, commercial, industrial, and wholesale customers in developed competitive markets in the United States and Canada. DATASOURCE: Integrys Energy Group, Inc.
CONTACT: Steven P. Eschbach, CFA, Vice President - Investor Relations of Integrys Energy Group, Inc., +1-312-228-5408 Web site: http://www.integrysgroup.com/
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