WPS Resources Corporation (NYSE:WPS) and Peoples Energy Corporation (NYSE:PGL) has announced that the Illinois Commerce Commission (ICC) approved the proposed merger of the companies (WPS Resources and Peoples Energy), as 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.

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.

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.