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Slower Growth at Integrys Energy Services Due to Illinois Market Development Delays

August 5, 2011
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Delays in the development of the Illinois retail electric market were among the reasons for slower growth at Integrys Energy Services, executives said yesterday during an earnings call.

As noted by Matters yesterday in connection with Integrys Energy Services' earnings (see 8/4), Integrys Energy Group said that market delays and changing market dynamics in some regions where its non-regulated segment operates have resulted in growth taking longer than originally expected.

During an earnings call, Integrys Energy Group CEO Charles Schrock cited Illinois as an example of one of these delays.

Integrys anticipated that the regulatory framework to better facilitate retail access for small customer classes in Illinois would be in place in 2010 rather than the first quarter of 2011. Consequently Integrys Energy Services did not begin offering Illinois residents electricity until the second quarter of 2011, rather than early in the first quarter as originally planned.

Integrys Energy Services now offers residential and small commercial electric supply at both ComEd and Ameren, in addition to serving large customers.

Schrock said that there were similar challenges with growth initiatives that Integrys Energy Services is implementing in other geographic markets as well, but did not cite specific markets.

While growth may be slower than forecast, executives stressed that the Integrys Energy Services segment continues to grow. Additionally, executives reported that Integrys Energy Services' customer retention has exceeded 95% for the first six months of the year.

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