Integrys Energy Group Inc. has wrapped up its risk-reduction program for subsidiary Integrys Energy Services Inc. The company said Wednesday it expects to have divested “a substantial portion of its nonregulated business” by early in the second quarter.

The divestitures were aimed at reducing collateral support requirements for any capital invested in the nonregulated business, the company said.

The Canadian trading arm of Shell Energy North America LP bought nearly all of the natural gas and power customer contracts of Integrys Energy Services of Canada Corp. (see Daily GPI, July 20, 2009). Minneapolis-based U.S. Energy Services acquired the energy management business of Integrys Energy Services (see Daily GPI, July 21, 2009). Essentially all of Energy Services’ wholesale gas marketing business was sold to Sequent Energy Management LP (see Daily GPI, Dec. 8, 2009). And Macquarie Cook Power Inc. acquired nearly all of the wholesale power marketing and trading business (see Power Market Today, Dec. 29, 2009).

Integrys said it would retain a selected portion of the Integrys Energy Services retail gas and power marketing businesses and has restructured the business to reduce its scale and risk profile. The retention of the restructured retail marketing business is expected by the company to have a positive impact on previously issued earnings per share guidance for 2011.

“With the restructuring of Integrys Energy Services, the continued progress of the rate cases in each of our regulated service jurisdictions and the continuing implementation of our cost containment and operational efficiency program, we believe that we are well positioned for the future,” said Integrys Energy Group CEO Charles Schrock. “We have met our objectives for Integrys Energy Services by significantly reducing capital investment and collateral support requirements.”

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