For Release: 11/03/2006

Michigan Gas Utilities to Lower Natural Gas Costs

Conservation & Insulation Can Lower Customer Costs

MONROE, MI, - Officials of Michigan Gas Utilities, a subsidiary of WPS Resources Corporation (NYSE: WPS) announced today that it would reduce natural gas costs to customers as a result of lower natural gas market prices. We're happy to announce that natural gas costs from suppliers are reduced compared to the same period last year," said Michigan Gas Utilities President Gary Erickson. "Although these costs are still higher than we'd like for our customers, we know they will appreciate this 10% reduction in the gas cost recovery factor."

The cost decrease will be effective for bills issued on and after the first billing cycle in November and could hold until January 1, 2007, at which time natural gas costs will be re-evaluated. Erickson said that the cost decrease reflected an increase in supply of natural gas with no real adverse events like hurricanes reducing production. "We're hoping to continue the trend with lower prices after January," he said. "But weather plays such an important role in the price of natural gas, we'll have to wait and see. Let's all cross our fingers and hope for a mild winter, that could help reduce prices even more. Colder weather will increase demand and higher prices will likely follow."

As a result of the lower wholesale prices, Michigan Gas Utilities has requested a lower GCR from $.93196 per CCF (one CCF equals 100 cubic feet) to $.83500 per CCF for both residential and commercial customers.

Like any other regulated gas utility across the state, MGU does not profit from the GCR portion on the customer's bill. The GCR is the largest component of the customer's gas bill, accounting for about 75-80% of the total.

"As always, MGU encourages customers to conserve natural gas — it only makes sense" said Erickson, "Adding insulation in the attic, inspecting the caulk around windows and other openings, and lowering the thermostat a few degrees can really make a difference."

To help customers plan more effectively for energy costs, MGU offers its Budget Billing Program. Budget Billing is a level-payment plan in which customers pay the same amount for natural gas each month, based on the average use during the previous 12-months. There is an annual "true-up" in which differences in actual energy use and amounts paid by the customer are balanced. Customers interested in Budget Billing may call 1 800 401-6402 and may visit www.michigangasutilities.com online for further conservation measures.

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