Integrys Energy Group (NYSE:TEG) is an electric and gas utility in the Great Lakes Region. It owns an electric utility which generates and delivers electricity, a gas utility which delivers natural gas to consumers, and an electric services segment, which trades energy futures and provides consulting and supplies to other energy companies. Since utilities are regulated, putting a cap on earnings, most of Integrys' revenue comes from the energy services segment, though this makes the company vulnerable to fluctuations in the energy markets.

Integrys benefits from rising demand for electricity, but it faces rising pressure on its costs due to an increase in the price of fuel, particularly coal. 96% of integrys' electricity is generated from coal, making rising prices a threat to its margins. The regulation of the company's business does not help, as TEG cannot pass on costs to its customers without getting government approval, which takes time and leads to losses. TEG is also vulnerable to increasing environmental regulation in the U.S., as fears of climate change have led to legislation requiring the use of clean energy. The U.S. Congress, for example, passed a bill in 2007 requiring that 15% of all U.S. electricity come from renewables by 2020. Installing new renewable energy capacity will increase TEG's costs.

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