Exhibit 1

NEWS RELEASE
LACLEDE GAS


                                     Contact:  Richard N. Hargraves
                                               (314) 342-0652
FOR IMMEDIATE RELEASE
July 6, 2001


Laclede Gas provides earnings guidance

    ST. LOUIS, MO - Laclede Gas Company (NYSE: LG) today announced

earnings per share guidance for the remainder of fiscal year 2001.  Actual

third quarter earnings will be announced July 26, 2001.

    Laclede expects fiscal year earnings to be 15% to 23% higher than last

year, in the range of $1.58 to $1.68 per share.  Laclede earned $1.37 per

share last year.  However, this is below Wall Street estimates, the

consensus of which is $1.86, according to Thomson Financial/First Call.

    Reasons for the variance include higher carrying costs on natural gas

purchased in the wholesale market prior to receiving payment from customers,

higher uncollectible expense resulting from last winter's record wholesale

gas prices, expenses relating to the holding company formation and strategic

planning initiatives, lower sales due to third-quarter weather that is about

40% warmer than normal, and increased distribution costs.

    Laclede expects third quarter results will show a quarterly loss in the

range of $.20 to $.25 per share.  Last year, Laclede earned a $.02 profit in

the third quarter, which resulted from higher income generated from our Gas

Supply Incentive Program (GSIP) and increased off-system sales

opportunities.  This marked only the third time since 1990 that the Company

had recorded a profit in its third quarter.  The nature of Laclede's core

business - the distribution and sale of heating energy - requires us to

maintain our distribution system year-round but generates most of our

revenue within a few cold-weather months.  Therefore, we generally post

losses in the warm spring and summer months that comprise the third and

fourth quarters of our fiscal year.







    Laclede Gas is the largest natural gas distribution company in Missouri,

serving 633,000 customers in St. Louis and surrounding counties in eastern

Missouri.

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    Note: This news release contains forward-looking statements within the
    meaning of Section 21E of the Securities Exchange Act of 1934, as
    amended.  The Company's future operating results may be affected by
    various uncertainties and risk factors, many of which are beyond the
    Company's control, including weather conditions, governmental and
    regulatory policy and action, the competitive environment and economic
    factors.  For a more complete description of these uncertainties and
    risk factors, see the Company's Form 10-Q for the year ended March 31,
    2001, filed with the Securities and Exchange Commission.