New Year's Black-eyed Peas

2 c Dried black-eyed peas
1/2 lb Bacon
2 qt Water
1 c Uncooked rice
1 c Chopped onion
1 c Chopped celery
2 ts Butter
1/2 ts Italian seasoning; (up to 1)
1 ts Sugar
1 1/2 ts Salt
1/4 ts Pepper

Sort and wash peas; place in heavy saucepan. Cover with water and bring to a boil; cook 2 min. Remove from heat; cover and let soak 1 hour. Drain. Combine ham & 2 qts water in large Dutch oven; bring to a boil. Reduce heat; cover and simmer 15 min. Add peas; bring to a boil. Reduce heat; cover and simmer 45 min. Add remaining ingredients; bring to a boil. Reduce heat; cover and simmer an additional 30 min. or until peas are done. Remove ham; cut into small pieces. Stir ham into pea mixture. 10-12 servings.