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Sig's Peace Maker is Sig's very own combination of a Peace Maker and a rifle. While primary fire is that of the Rifle, Sig can charge it up with the destructive power of a Peace Maker. This takes a minute or so to charge fully, but the power is immense as seen at the Pumping Station where Sig can blast an entire tank to destruction with it. It can also kill various large enemies, as seen in the same Station.
Jak has to protect Sig while he charges the Peace Maker in these situations, as he cannot move while charging, or even defend himself while doing so. This version of the Peace Maker seems to have a better target-finding system. (although Sig's synthetic red eye could provide the advanced target finding) It can additionally be used as a staff of some sort to whack enemies in close combat.
When Sig lives in Spargus in Jak 3, the charging time seems to be reduced and he can now fire the Peace Maker without needing to fully charge it, making it much more convenient to use when fighting regular enemies.