Presentation

WPS

WPS Resources Corporation

American Gas Association
Finance Committee Meeting
October 2-4, 2006

This presentation 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," "believe," "estimate," "expect," "intend," "plan," "project," and other similar words.
Although we believe we have been prudent in our plans and assumptions, there can be no assurance that indicated results
will be realized. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove
inaccurate, actual results could vary materially from those anticipated.

Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update

any forward-looking statements, whether as a result of new information, future events, or otherwise. We recommend that
you consult any further disclosures we make on related subjects in our 10-Q, 8-K, and 10-K reports to the Securities and
Exchange Commission.

The following is a cautionary list of risks and uncertainties that may affect the assumptions which form the basis of

forward-looking statements relevant to our business. These factors, and other factors not listed here, could cause actual
results to differ materially from those contained in forward-looking statements.

- Timely completion of the proposed merger of Peoples Energy Corporation into WPS Resources (including receipt of the

required regulatory approvals) and the successful integration of operations;

- Successful integration of both the Michigan and Minnesota natural gas distribution operations purchased from Aquila,

which are now operated by Michigan Gas Utilities Corporation and Minnesota Energy Resources Corporation,
respectively;

- Resolution of pending and future rate cases and negotiations (including the recovery of deferred costs) and other

regulatory decisions impacting WPS Resources' regulated businesses;

- The impact of recent and future federal and state regulatory changes, including legislative and regulatory initiatives

regarding deregulation and restructuring of the electric and natural gas utility industries, changes in environmental, tax
and other laws and regulations to which WPS Resources and its subsidiaries are subject, as well as changes in
application of existing laws and regulations;

- Current and future litigation, regulatory investigations, proceedings or inquiries, including but not limited to,

manufactured gas plant site cleanup, pending United States Environmental Protection Agency investigations of
Wisconsin Public Service Corporation’s generation facilities and the appeal of the decision in the contested case
proceeding regarding the Weston 4 air permit;

- Resolution of audits by the Internal Revenue Service and various state revenue agencies;

Forward-looking statements

- The effects, extent, and timing of additional competition or regulation in the markets in which our subsidiaries operate;

- The impact of fluctuations in commodity prices, interest rates, and customer demand;

- Available sources and costs of fuels and purchased power;

- Ability to control costs;

- Investment performance of employee benefit plan assets;

- Advances in technology;

- Effects of and changes in political, legal, and economic conditions and developments in the United States and Canada;

- The performance of projects undertaken by nonregulated businesses and the success of efforts to invest in and develop

new opportunities;

- Potential business strategies, including mergers and acquisitions or dispositions of assets or businesses, which cannot

be assured to be completed (such as the proposed merger with Peoples Energy, construction of the Weston 4 power
plant, and additional investment in American Transmission Company related to construction of the Wausau, Wisconsin, to
Duluth, Minnesota, transmission line);

- The direct or indirect effect resulting from terrorist incidents, natural disasters, or responses to such events;

- Financial market conditions and the results of financing efforts, including credit ratings and risks associated with

commodity prices (in particular electricity and natural gas), interest rates, and counterparty credit;

- Weather and other natural phenomena; and

- The effect of accounting pronouncements issued periodically by standard-setting bodies.

Forward-looking statements (continued)

Expanding energy company serving the Midwest for over 120 years

Dependable and growing base of regulated operations

Low risk utility operations producing significant portion of earnings

Constructive regulatory environment

Significant capital investment opportunities

Complimentary nonregulated energy-related businesses

Commitment to maintaining a strong financial profile

Track record of increasing dividend payments

Talented and experienced management team

Attractive investment opportunity

WPS Investments

LLC

Regulated Operations

Nonregulated Operations

WPSC and UPPCO

MERC

MGU

WPS Resources overview

Expanding utility investments

in a constructive regulatory
environment

Generating superior

customer service

Growing nonregulated

segment while effectively
mitigating risk

Executing asset management

strategy

Long – term growth drivers

Key accomplishments

2006

Announced merger with Peoples

Energy

WPSC electric and natural gas rate

case

UPPCO electric rate increase

Successful integration of Aquila assets

Asset management sales

Interest in Kimball natural gas storage

field

1/3 Interest in Guardian Pipeline, L.L.C.

Sunbury

2005

Reduced risk profile

Sale of Sunbury emissions credits

Protection of synfuel tax credit value

Sale of Kewaunee nuclear plant

Announced acquisition of Aquila assets

Wisconsin electric and natural gas rate

increase

Positioned to deliver growth

Service territory

WPSC and UPPCO

MERC

MGU

Capital expenditures

Approximately $1,013 million

between 2006 and 2008

$181 million average annual

maintenance capex versus about
$129 million average annual
depreciation

Overview of utility operations

Note: WPL – Wisconsin Power & Light; NSP – Northern States Power - Wisconsin; MGE – Madison Gas & Electric; WEP – Wisconsin Electric Power; WI – Wisconsin

Average; NCNTL – North Central Region Average (includes: IL, IN, MI, OH, WI); WGC – Wisconsin Gas Co.; and WE-GO – Wisconsin Electric Gas Operation

(1) Source: Edison Electric Institute, January 1, 2006

(2) Source: Public Service Commission of Wisconsin approved tariffs, effective January 1, 2006

Average total retail electric prices (% of WPSC)⁽¹⁾

Large C&I natural gas rates - distribution cost (% of

WPSC)⁽²⁾

WPSC regulated operations – rate comparison

500 MW low sulfur coal-fired

base-load generation facility

Construction began in October

2004

Planned commercial operation

date is June 2008

Dairyland Power Cooperative

owns 30% interest in Weston 4

Current return on 100% of

CWIP

Weston 4

Project overview

Weston 4 project

220-mile 345-kV line from Wausau, WI

to Duluth, MN

Construction to be completed in

2008

Line construction increases WPS

ownership

Anticipated WPS capital calls

between 2006 and 2008 of $61
million to complete line

Completion of the Wausau — Duluth

line will increase WPS interest in ATC
to 33%

Total projected capital calls from ATC

of about $164 million over the next four
years

Service territory

230kV-344
kV

345kV-499
kV

Below

230kV

Over $1 billion in transmission assets

Announced in 2005 plans to spend

$3.4 billion over 10 years

Authorized ROE: 12.2% on 50%

equity

True up mechanism with return on

CWIP

Wausau — Duluth line

ATC Key operating statistics

American Transmission Company

Supplies nonregulated natural gas, electric, and alternative fuel to retail and

wholesale customers

Provides high quality energy management and consulting services

Developed strong operations in the Northeast U.S. and Eastern Canada

Launched operations in Texas

In July, began delivering physical electricity to retail commercial and industrial

customers

Active risk-mitigation strategies

Modest VAR allowed under portfolio risk policy

Uncontracted generation managed under risk policy limits

Ranked among the top natural gas marketers in the nation by customers

MastioGale survey ranked ESI second on the customer value index

WPS Energy Services, Inc.

Generation facilities

Overview of operations

Fuel mix

State

Total: 434 MW

Wisconsin

21%

Pennsylvania

Maine/

Canada 22%

New York

50%

Oil 14%

Coal

29%

Gas

49%

Hydro 8%

Power generation portfolio

totaling 434 MW of capacity

Other production facilities include

synfuel processing and steam
production facilities in Arkansas,
Kentucky, Oregon, and Wisconsin

Protection of synfuel tax credits

•

Substantially protected in

2006

•

40% protected in 2007

WPS Energy Services, Inc.

Purchase price

Ownership

Required

approvals

Expected

closing

Stock for stock transaction. Peoples Energy shareholders will

receive 0.825 shares of WPS Resources common stock for
every share of Peoples common stock

Upon consummation of the merger, WPS Resources’

shareholders will own approximately 57.6% of the combined
company and Peoples Energy shareholders will own
approximately 42.4%

Federal Energy Regulatory Commission and Illinois Commerce

Commission in addition to shareholder approval

First quarter 2007

Leadership

Larry L. Weyers, Chairman, President, and CEO of WPS

Resources will serve as its President and CEO. Jim Boris,
current lead director of Peoples Energy, will serve as
non-executive Chairman of the Board. The combined
company’s board will have 16 members, 9 selected by WPS
Resources and 7 selected by Peoples Energy

Dividend

After closing, quarterly dividend expected to be $0.66 per

Peoples merger – transaction summary

Note: Customer data as of 12/31/05; balance sheet data as of 3/31/06; volume and adjusted EBITDA for the twelve months ended 3/31/06; WPS

Resources natural gas customers pro forma for acquisition of MERC (closed 7/1/06)

1 Share price as of 07/05/06 and shares outstanding as of 3/31/06; WPS Resources includes 2.7 million shares from exercise of equity forward

2 Reported EBITDA, adjusted for gain on decommissioning trust, gain on sale of emission allowances and impairment loss

3 Reported EBITDA, adjusted for gas charge settlement

4 Regulated split based on data for twelve months ending 3/31/06

Peoples merger – creates an energy leader in the Midwest

Pro forma regulated service territory

Highlights

Stable organic earnings growth

Attractive service territories

Generation and distribution focused capital

investment program

Shared core values across organization

Constructive regulatory approach

Synergy potential

Opportunities to create value through

sharing of best practices

Direct cost savings through elimination of

redundant and overlapping functions

Balance sheet strength

Peoples Energy service

territory

WPS Resources service territory

		WPS Resources	Peoples Energy
Electric customers		476,782	0
Natural gas customers		668,540	969,068
Current authorized ROEs	WPSC: 11.0% UPPCO: 10.75%	MGU: 11.4% MERC: 11.71%	Peoples Gas: 11.1% NSG: 11.3%
Regulated jurisdictions		WI, MN, MI	IL
Customer split (Res/C&I)		90% / 10%	94% / 6%

Peoples merger – creates a larger, stronger, and more

diversified regulated utility business

WPS Resources

Pro forma energy marketing operations

Peoples Energy

Ontario

Quebec

Highlights

Complementary wholesale and

retail energy marketing
businesses

Identified strategic growth

opportunities

Retail and wholesale

customer focus

Growth in new territories

Disciplined approach to risk

management

Leverages expertise,

reputation and assets

Expanded geographic reach

Stronger Illinois presence

when electric market opens in
2007

Statistic	WPS Resources	Peoples Energy	Combined
Bcf delivered (1)	590	102	692
GWh delivered (1)	8,436	1,550	9,986
Power generation capacity (MW)(2)	434	NA	434
(1) For the twelve months ended 3/31/06
(2) As of 3/31/06

Peoples merger – combines complementary and

successful nonregulated energy marketing businesses

Peoples Energy Oil &

Gas Production

Geographic overview of Peoples Energy Oil & Gas

operations

Highlights

Significant proven and probable

reserves, with large inventory of
drilling opportunities

Lower risk business model

Onshore, domestic reserves,

primarily natural gas

Acquire and exploit strategy –

minimal exploratory drilling

Active management versus

passive investment

Talented organization, with full

array of analytical and operating
expertise

Upside from high natural gas

prices as legacy hedges roll off

Ontario

Quebec

Statistic	Peoples Energy
Production (Bcfe) (1)	24.7
Pro forma reserves (Bcfe)-proven (2)	236
Locations	TX, LA, NM, AR, OK, ND
(1) For the twelve months ended 3/31/06
(2) As of 3/31/06

Peoples merger - Peoples Energy Oil & Gas Production

business

Estimated annual synergies

Highlights

24% IT

42% Staffing

18%

Corporate and
administrative
programs

Procurement
chain

3% Natural gas

supply

7% Nonregulated

Estimated annual steady-state synergies

of approximately $94 million

Opportunity for savings from corporate

overhead and redundancies

IT integration

Administrative and public company costs

Corporate staff

Facilities and other

Aggressive timeline for implementation and

execution

Transition teams focused

Deliver operational excellence

In addition, combined company will

continue to work towards longer-term
implementation of best practices

Costs to integrate are expected to be

approximately $186 million

IT integration and upgrades

Severance and relocation

Other fees and expenses

Analysis prepared with assistance from

Booz Allen Hamilton

Peoples merger – synergy potential

Strong credit ratings

Commitment to strong balance sheet and credit

ratings

66 consecutive years of

dividends paid

48 consecutive years of

dividend increases

S&P High Yield Dividend

Aristocrat Index

Mergent Dividend Achiever

Commentary

EPS growth

Dividend growth

Consistent earnings and dividend growth

Income available for common shareholders for the six months ended June 30 (millions)

WPS Resources business mix

2006 full year guidance

Special items

Shareholder return (%)

* Return based on stock price change and assumed reinvestment of dividends

Source: The Wall Street Journal - Monday, February 27, 2006

Focus on long-term shareholder return

Expanding energy company serving the Midwest for over 120 years

Dependable and growing base of regulated operations

Low risk utility operations producing significant portion of earnings

Constructive regulatory environment

Significant capital investment opportunities

Complimentary nonregulated energy-related businesses

Commitment to maintaining a strong financial profile

Track record of increasing dividend payments

Talented and experienced management team

Attractive investment opportunity

www.wpsr.com

A copy of this presentation and the following financial reports are available

on our web site:

2005 Form 10-K filed on February 28, 2006

2005 Annual Report released on April 7, 2006

2006 Form 8-K earnings release filed on May 4, 2006

2006 first quarter Form 10-Q filed on May 4, 2006

2006 Form 8-K documents filed on July 10, 12, and 14, 2006

2006 Form 8-K earnings release filed on August 3, 2006

2006 second quarter Form 10-Q filed on August 3, 2006

2006 Form 8-K filed on August 9, 2006

Disclaimer

Additional Information. This communication is not a solicitation of a proxy from any security holder of WPS

Resources Corporation or Peoples Energy Corporation. WPS Resources Corporation intends to file a
registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) in connection
with the proposed transaction. The registration statement will include a joint proxy statement of WPS
Resources Corporation and Peoples Energy Corporation that also constitutes a prospectus of WPS
Resources Corporation, which will be sent to the shareholders of WPS Resources Corporation and Peoples
Energy Corporation. Shareholders are urged to read the joint proxy statement/prospectus and any other
relevant document when they become available, because they will contain important information about WPS
Resources Corporation, Peoples Energy Corporation and the proposed transaction. A definitive proxy
statement will be sent to shareholders of WPS Resources Corporation and Peoples Energy Corporation
seeking approval of the proposed transaction. The joint proxy statement/prospectus and other documents
relating to the proposed transaction (when they are available) can be obtained free of charge from the SEC’s
website at www.sec.gov. These documents (when they are available) can also be obtained free of charge
from WPS Resources Corporation upon written request to WPS Resources Corporation, Attention: Barth J.
Wolf, Secretary and Manager - Legal Services, P.O. Box 19001, Green Bay, Wisconsin 54307-9001, or by
calling (920) 433-1727, or from Peoples Energy Corporation, upon written request to Peoples Energy
Corporation, Attention: Secretary, 130 East Randolph Drive, 24th Floor, Chicago, Illinois 60601, or by calling
(312) 240-4000.

Participants in the Proposed Transaction. WPS Resources Corporation, Peoples Energy Corporation and

certain of their respective directors and executive officers may be deemed to be participants in the
solicitation of proxies from shareholders in connection with the proposed transaction under the rules of the
SEC. Information about the directors and executive officers of WPS Resources Corporation may be found in
its 2005 Annual Report on Form 10-K filed with the SEC on February 28, 2006 and definitive proxy statement
relating to its 2006 Annual Meeting of Shareholders filed with the SEC on April 7, 2006. Information about the
directors and executive officers of Peoples Energy Corporation may be found in its Amendment No. 1 to its
2005 Annual Report on Form 10-K filed with the SEC on December 14, 2005 and definitive proxy statement
relating to its 2006 Annual Meeting of Shareholders filed with the SEC on January 1, 2006. These documents
can be obtained free of charge from the sources indicated above. Additional information regarding the
interests of these participants will also be included in the joint proxy statement/prospectus regarding the
proposed transaction when it becomes available.

Non-Solicitation. This communication shall not constitute an offer to sell or the solicitation of an offer to sell

or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus
meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Questions?