PGL Peoples Energy Corp

Companies Move One Step Closer to Creating Integrys Energy Group, Inc. CHICAGO, Feb. 7 /PRNewswire-FirstCall/ -- WPS Resources Corporation (NYSE:WPS) and Peoples Energy Corporation (NYSE:PGL) today announced that the Illinois Commerce Commission (ICC) approved the proposed merger of the companies, first announced on July 10, 2006. In addition, the merger is on the agenda for tomorrow's meeting of the Public Service Commission of Wisconsin (PSCW). If the PSCW approves the merger, the transaction is expected to close shortly. Once the legal close is complete, the new company will be known as Integrys Energy Group, Inc., and will trade on the New York Stock Exchange under the symbol TEG. "We welcome today's approval by the ICC because it brings us much closer to the completion of the proposed merger of WPS Resources and Peoples Energy," said Larry L. Weyers, Chairman, President and CEO of WPS Resources. "We're eager to bring the two companies together under the Integrys banner, as a regional energy leader," Weyers said. Weyers will become President and CEO of Integrys Energy Group, Inc. The combined company will have total assets of about $10.3 billion and its market capitalization exceeds $4.0 billion. On the regulated side, the company will have more than 1.6 million natural gas customers and more than half a million electric customers, with operations in Illinois, Wisconsin, Michigan and Minnesota. On the nonregulated side, Integrys Energy Services will provide energy marketing services in Texas, the midwest and northeast United States and parts of Canada, and Peoples Energy Production will continue to be engaged in the acquisition and development of proven onshore natural gas reserves. "We are pleased to receive today's order and we appreciate the constructive approach taken by the parties in our Illinois proceeding," said Thomas M. Patrick, Chairman, President and CEO, Peoples Energy. "Collaborative negotiations produced a unanimously supported agreement on all issues, so that consumers, shareholders, and employees may share the benefits of our merger." The combination of the companies will enable benefits for customers, shareholders and employees, in the form of efficiencies and operating effectiveness across the corporate, shared services, and regulated and nonregulated operating areas. The regulated utilities will maintain their current corporate names in each of the company's service territories. About WPS Resources Corporation WPS Resources (NYSE:WPS), based in Green Bay, Wisconsin, is a holding company with five major subsidiaries providing electric and natural gas energy and related services in both regulated and nonregulated energy markets. Its largest subsidiary is Wisconsin Public Service Corporation, a regulated electric and natural gas utility serving northeastern Wisconsin and a portion of Michigan's Upper Peninsula. Wisconsin Public Service serves more than 425,000 electric customers and 308,000 natural gas customers. Minnesota Energy Services Corporation is a regulated natural gas utility serving more than 200,000 customers throughout Minnesota. Michigan Gas Utilities Corporation is a regulated natural gas utility serving 161,000 customers in lower Michigan. Another subsidiary, Upper Peninsula Power Company, is a regulated electric utility that serves approximately 52,000 electric customers in Michigan's Upper Peninsula. WPS Resources' major nonregulated subsidiary consists of WPS Energy Services, Inc., a diversified nonregulated energy supply and services company serving commercial, industrial and wholesale customers and aggregated groups of residential customers. Its principal market is the northeast quadrant of the United States and adjacent portions of Canada. Its principal operations are in Illinois, Maine, Michigan, Ohio, Texas, Virginia, and Wisconsin in the United States and Alberta, Ontario, and Quebec in Canada. WPS Energy Services also owns and/or operates nonregulated electric generation facilities. Visit the WPS Resources Web site at http://www.wpsr.com/ for additional information. About Peoples Energy Peoples Energy, (NYSE:PGL) a member of the S&P 500, is a diversified energy company consisting of three primary business segments: Gas Distribution, Oil and Gas Production, and Energy Marketing. Peoples Gas and North Shore Gas, regulated utilities, deliver natural gas to about one million customers in the city of Chicago and 54 communities in northeastern Illinois. The company's non-utility businesses include Peoples Energy Services (PESC) and Peoples Energy Production (PEP). PESC, launched in 1996, serves more than 40,000 customers, providing a portfolio of products to manage the energy needs of business, institutional and residential consumers. PEP is primarily engaged in the acquisition and development of proven onshore natural gas reserves with upside potential in a limited number of strategic supply basins. Value is then added through drilling programs, production enhancements and reservoir optimization. Visit Peoples' Web site at http://www.peoplesenergy.com/ for more information. Forward-Looking Statements This press 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," "may," "could," "project," "believe" and other similar words. Forward-looking statements are beyond the ability of WPS Resources and Peoples Energy to control and, in many cases, neither WPS Resources nor Peoples Energy can predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see WPS Resources' and Peoples Energy's periodic reports filed with the Securities and Exchange Commission (including their 10-Ks and 10-Qs) for listings of certain factors that could cause actual results to differ materially from those contained in forward-looking statements. All forward-looking statements included in this press release are based upon information presently available, and neither WPS Resources nor Peoples Energy assumes any obligation to update any forward-looking statements. DATASOURCE: WPS Resources Corporation CONTACT: Rodrigo Sierra of Peoples Energy, +1-312-240-4567, or Kerry Spees of WPS Resources Corp., +1-920-433-1589 Web site: http://www.wpsr.com/ http://www.peoplesenergy.com/

Copyright