WPS-Peoples Set New Structure

WPS Resources(WPS Quote) and Peoples Energy(PGL Quote) announced Monday the organizational structure for their proposed combined company.

The companies expect the transaction to close in the first calendar quarter of 2007, subject to necessary regulatory and shareholder approvals.

The organizational structure for the new company is built around three entities, the holding company, the operating companies and a services group. The holding company will oversee the entire organization, take on an undisclosed new name, and be listed on the NYSE.

The operating companies, comprising four operational groups, Peoples Energy Production, NewCo Gas Group, Wisconsin Public Service Corp. and NewCo Non-regulated Group, will deliver services to WPS Resources' and Peoples Energy's customers.

The new services group, ServCo LLC will provide central support services such as human resources, finance and legal to the subsidiaries and to the holding company.

Joe O'Leary, 51, was named as the senior vice president and chief financial officer of the holding company.

Following the close of the transaction, James R. Boris, 61, the current lead director for Peoples Energy, will serve as non-executive chairman of the board. Thomas M. Patrick, 60, chairman, president and CEO of Peoples Energy, earlier this year announced his intention to retire after the transaction was completed.