PGL Peoples Energy Corp

Peoples Energy Services Corporation, one of the largest deregulated energy marketers in northern Illinois, announced today it has won a $30.2 million contract to supply electricity for the Department of Energy's Fermi National Accelerator Laboratory in Batavia, Ill. The supply contract begins in December 2006 and covers the 12-month period ending December 2007. "Peoples Energy Services is very pleased to be chosen to supply electricity to Fermilab. We realize that Fermilab plays a critical role in the world of science and technology," said Ann DeBortoli, vice president of Peoples Energy Services. "Our team is proud and committed to this important partnership and we look forward to building a long-term relationship with Fermilab." Through this contract, Fermilab will become one of Peoples Energy Services largest electricity customers. Fermilab uses more than 400 million-kilowatt hours of electricity annually, which is enough to power 50,000 homes. Launched in 1996, Peoples Energy Services serves more than 25,000 customers, the company provides a portfolio of products to manage energy needs of business, institutional and residential consumers in today's volatile and complex energy market. The company's performance and commitment to customers is reflected in the fact that more than 90% of current customers consistently renew their relationship each year. The company recently won approval to offer services in Michigan, Ohio and New York. A subsidiary of Peoples Energy Corporation (NYSE:PGL), Peoples Energy Services is the preferred natural gas supplier for the Illinois Energy Consortium, State of Illinois, IUPC and the Illinois Retail Merchants Association. Visit PeoplesEnergyServices.com for more information. Peoples Energy, a member of the S&P 500, is a diversified energy company consisting of five primary business segments: Gas Distribution, Oil and Gas Production, Power Generation, Energy Marketing and Energy Assets. Visit the Peoples Energy web site at PeoplesEnergyServices.com.