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6 July 2006 -- WPS Resources Corp. confirmed today that it is in discussions with Peoples Energy regarding a potential business combination.

WPS said in a press release that there can be no assurances that a transaction will be successfully negotiated or consummated, or as to the terms, structure or timing of any transaction. WPS said it would not make any further statement regarding the business discussions until it either abandons these discussions or reaches a definitive agreement regarding a transaction.

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