PGL Peoples Energy Corp

Peoples Energy today confirmed media reports that it is engaged in discussions regarding a potential strategic transaction with WPS Resources Corporation (WPS). The company emphasized that no agreement with respect to many material terms and conditions of any transaction has been reached. Furthermore, the Company can provide no assurance that any definitive agreement with WPS will be reached. The Company does not intend to make further public statements regarding this matter until either a definitive agreement is reached or discussions are terminated. Peoples Energy, a member of the S&P 500, is a diversified energy company consisting of four primary business segments: Gas Distribution, Oil and Gas Production, Energy Assets and Energy Marketing. The Gas Distribution business serves about 1 million utility customers in Chicago and northeastern Illinois. Visit the Peoples Energy web site at www.PeoplesEnergy.com. Forward-Looking Information. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as management's strategy for acquiring oil and gas properties and its expectations for the newly-acquired oil and gas producing properties. Actual results could differ materially from such expectations because of many uncertainties, including, but not limited to: weather-related energy demand; the company's success in identifying diversified energy segment projects on financially acceptable terms and generating earnings within a reasonable time; the future health of the United States and Illinois economies; changes in the nature of the company's competition resulting from industry consolidation, legislative change, regulatory change and other factors, as well as action taken by particular competitors; the timing and extent of changes in interest rates and energy commodity prices, including but not limited to the effect of unusually high gas prices on cost of gas supplies, accounts receivable and the provision for uncollectable accounts, and interest expense; drilling risks and the inherent uncertainty of gas and oil reserve estimates; regulatory developments in the U.S., Illinois and other states where Peoples Energy does business; and terrorist activities. Some of the uncertainties that may affect future results are discussed in more detail in Peoples Energy's Form 10-K under Item 1 - Business and Item 7 Management's Discussion and Analysis, as such information may be updated by subsequent filings under the Securities Exchange Act of 1934. All forward-looking statements included in this press release are based upon information presently available, and Peoples Energy assumes no obligation to update any forward-looking statements.