Louise/John:

These changes are consistent with providing a strong Enron relationship at the top of the organization.  Dick will be stepping down in the next few quarters due to mandatory retirement.  Bill Morrow (our stronghold) is over all unregulated business (enovate, power, retail, etc.) and the utility gas supply function.  Don Field the new President, is over the utilities (operations, systems, etc.) and is a 2-3 year assignment until Bill Morrow reaches "seniority" i.e. his 50's.

These changes complement our objectives with PEC in the following manner 1) Upon Dick's departure, Tom wants to aggressively grow the company and imprint his direction/objectives, including taking the regulated assets into non-regulated business, M&A activity, and regaining ground on NICOR 2) Bill will now set the course for the retail business which will potentially provide Enron the ability to leverage EES via Peoples namesake in Chicago 3) Tom/Bill's legacies are directly tied to growth in the non-regulated business which were provided the $.268 of EPS from Enron business.  All other business at PEC provided negative contributions.

Please advise if you have further questions.

Laura Luce
 -----Original Message-----
From: 	Penman, Gregg  
Sent:	Thursday, September 06, 2001 7:22 AM
To:	Luce, Laura
Subject:	Press Release

Here is the Peoples press release.  We got a little bit larger download from Tim last night.  Seems decent for us.  

Talk to you later - Gregg

Thursday September 6, 6:00 am Eastern Time 
Press Release
SOURCE: Peoples Energy Corporation 
Peoples Energy Announces Reorganization
Moves Advance Strategy
CHICAGO, Sept. 6 /PRNewswire/ -- Following a meeting of its Board of Directors, Peoples Energy Corporation (NYSE: PGL <http://finance.yahoo.com/q?s=pgl&d=t> - news </n/p/pgl.html>) today announced a reorganization to advance the company's strategy to enhance utility operations while maximizing the potential of its diversified businesses. The changes are effective October 1. 
``The changes we are announcing today continue to sharpen our focus on the performance of the individual business units, as well as improve the efficiency and effectiveness of corporate functions,'' said chairman and CEO Dick Terry. 
Tom Patrick, 55, president and COO of Peoples Energy, and a director of the company, assumes the additional title of vice chairman of the company 's operating subsidiaries. 
Don Field, 51, executive vice president of Peoples Energy, was named president and COO of the company's utilities, Peoples Gas and North Shore Gas, and will report to Patrick. ``With Don Field as president, all our gas distribution functions will be brought directly under his capable oversight,'' Patrick said. 
Desiree Rogers, 42, currently chief marketing officer of Peoples Energy, was promoted to senior vice president of the corporation and its utility subsidiaries. In her new position, Rogers will lead the utilities' marketing, sales, rates and customer care operations, reporting to Field. Rogers will also continue to direct corporate marketing and communications under Patrick. 
``In her few years at Peoples Energy, Desiree Rogers has helped the firm develop a clearer understanding of the importance of a customer focused organization,'' said Patrick. ``Now she will assume direct operating responsibilities for meeting the customer needs of our business.'' 
Charles Thompson, 54, vice president, gas operations, assumes the new title of senior vice president, gas operations for Peoples Gas. Thompson will add the utility's field service operations to his existing responsibilities of distribution operations, engineering and environmental matters. ``With this move, all our Chicago field operations will be consolidated in a single unit,'' said Patrick. 
Peoples Energy also announced changes to the accounting and finance area and other support services. 
James Luebbers, currently chief financial officer and controller, becomes vice president, strategic reorganization. Luebbers, who has more than 32 years of service with the company, will retire April 1, 2002. For personal reasons, Mr. Luebbers is reducing the extent of his responsibilities but has agreed to support the company's reorganization activities until his retirement. 
``Jim Luebbers has made significant contributions during his impressive career at Peoples Energy. We profoundly appreciate his service to the company,'' Terry said. ``We will continue to benefit from his assistance with our new organization in the coming months. 
Thomas Nardi, 47, currently president of Peoples Energy Services, the company's retail energy marketer, was named chief financial officer, succeeding Luebbers. Nardi, who joined Peoples Energy one year ago, after spending 18 years at Nicor, Inc., is an industry veteran, with experience leading a variety of utility and non-utility businesses and financial functions. 
``We are confident that Tom Nardi has the broad experience, leadership skills and vision required to succeed in his new post,'' said Patrick. 
Nardi's successor at Peoples Energy Services will be announced at a later date. 
Joan Gagen, 50, vice president of customer service for the utility subsidiaries, will move to vice president and controller of Peoples Energy, reporting to Nardi. ``The growth of our multiple businesses requires commensurate focus on the control function,'' said Patrick. 
The retail subsidiary, which had reported to Patrick, will now report to William Morrow, 45, executive vice president of Peoples Energy and president of Peoples Energy Resources. With this move, Morrow assumes oversight of all the company's Midwest diversified businesses. Morrow will also retain responsibility for gas supply activities of the utilities. 
``Bill Morrow has done a superb job building our power generation and midstream services businesses into substantial income contributors,'' said Patrick. ``Putting all Midwest-based diversified energy concerns under his direction will maximize synergies.'' 
Steve Nance, 44, president of Peoples Energy Production, the company's Houston-based oil and gas production unit, will continue to report to Patrick. 
Peoples Energy also announced the consolidation of support services into a new business services unit, comprised of ITS, human resources and other administrative functions. Katherine Donofrio, 44, was promoted to senior vice president, business services to head this unit, leaving her current position as vice president, utility rates and marketing. Reporting to her will be Willard Evans, vice president, ITS and John Ibach, vice president, human resources. 
``Our new business services unit will focus on the efficiency and quality of support services provided to our business units, so they in turn can focus clearly on business operations,'' said Patrick. 
Peoples Energy is a diversified energy company comprised of five primary business segments: Gas Distribution, Power Generation, Midstream Services, Retail Energy Services, and Oil and Gas Production. The Gas Distribution business serves about 1 million retail customers in Chicago and northeastern Illinois. Visit the Peoples Energy web site at PeoplesEnergy.com . 
SOURCE: Peoples Energy Corporation