<PAGE>
                                                               Exhibit 10.20

                           THE LACLEDE GROUP, INC.
                            MANAGEMENT BONUS PLAN

         The Laclede Group, Inc. Management Bonus Plan (hereinafter called the
"Plan") was adopted by the Board of Directors of The Laclede Group, Inc., a
Missouri corporation (hereinafter called the "Company"), on September 26,
2002 to be effective with the fiscal year beginning October 1, 2002.

1. PURPOSE

         The Plan is intended to motivate the Company's executives and senior
managers to commit to the continued growth, development, and financial
success of the Company and encourage them to remain with and devote their
best efforts to the business of the Company, thereby advancing the interests
of the Company and its shareholders. Accordingly, the Company may award to
executives, senior managers, and other key contributors annual bonuses on
the terms and conditions established herein.

2. DEFINITIONS

         For the purposes of the Plan, unless the context requires otherwise,
the following terms shall have the meanings indicated:

         "Award" means the compensation payable under this Plan to a Participant
as determined by the Committee pursuant to such terms, conditions,
restrictions, and limitations established by the Committee and the Plan.

         "Board" means the Board of Directors of the Company.

         "CEO" means the Chief Executive Officer of the Company.

         "Cause" means with respect to the termination of a Participant's
employment with the Company or any of its Subsidiaries:

                  (i) Willful and continued failure by the Participant to
         perform substantially the Participant's duties as assigned (other
         than any such failure resulting from incapacity due to physical or
         mental illness) after a written demand for substantial performance
         has been delivered to the Participant by the Board or the Chief
         Executive Officer of the Company that specifically identifies the
         manner in which the Board or the Chief Executive Officer believes
         that the Participant has not substantially performed the
         Participant's duties; or

                   (ii) Willful engagement by the Participant in misconduct
         that is materially injurious to the Company or any of its
         Subsidiaries.

         For purposes of this definition, no act, or failure to act, on the
         Participant's part shall be considered "willful" unless done, or
         omitted to be done, by the Participant in bad faith or without
         reasonable belief that the Participant's action or omission was in
         the best interests of the Company and its Subsidiaries. Any act or
         failure to act based upon authority given pursuant to a resolution
         duly adopted by the Board or upon the instructions of the Chief
         Executive Officer or a senior officer of the Company or based upon
         the advice of counsel for the Company shall

                                       1                  September 19, 2002


<PAGE>
<PAGE>

         be conclusively presumed to be done, or omitted to be done, by the
         participant in good faith and in the best interests of the Company
         and its Subsidiaries.

         "Change in Control" of the Company shall be deemed to have occurred if:

                  (i) any person, entity or group of persons, within the
         meaning of Section 13(d) or 14(d) of the Securities Exchange Act
         of 1934 ("Exchange Act") (excluding, for this purpose, the Company
         or its Subsidiaries or any employee benefit plan of the Company or
         its Subsidiaries), acquires beneficial ownership (within the
         meaning of Rule 13d-3 promulgated under the Exchange Act) of 30%
         or more of either the Company's then outstanding shares of common
         stock or the combined voting power of the Company's then
         outstanding voting securities entitled to vote generally in the
         election of directors; or

                  (ii) a change in the composition of the Board such that the
         individuals who, as of the effective date of the Plan, constitute
         the Board ( such Board hereinafter referred to as the "Incumbent
         Board") cease for any reason to constitute at least a majority of
         the Board; provided, however, that any individual becoming a
         director subsequent to the effective date of the Plan whose
         election, or nomination for election by the Company's
         shareholders, was approved by the vote of at least a majority of
         the directors then comprising the Incumbent Board shall be
         considered as though such individual were a member of the
         Incumbent Board, but excluding, as a member of the Incumbent
         Board, any such individual whose initial election to office occurs
         as a result of either an actual or threatened election contest (as
         such term is used in Rule 14a-11 of Regulation 14A promulgated
         under the Exchange Act) or other actual or threatened solicitation
         of proxies or consents by or on behalf of a party other than the
         Company's Board; or

                  (iii) approval by the Company's shareholders of a
         reorganization, merger or consolidation, in each case, with
         respect to which persons who were the Company's shareholders
         immediately prior to such reorganization, merger or consolidation
         do not, immediately thereafter, own more than 50% of the surviving
         entity's then outstanding shares of common stock or the surviving
         entity's combined voting power entitled to vote generally in the
         election of directors, or of a liquidation or dissolution of the
         Company or of the sale of all or substantially all of the
         Company's assets. In making this computation as to any of the
         Company's shareholders who was also an equity owner in any other
         party to such reorganization, merger, or consolidation prior to
         consummating such transaction, only the common stock or voting
         power relating to such shareholder's equity interests in the
         Company shall be counted towards the 50% threshold in the prior
         sentence.

         "Code" means the Internal Revenue Code of 1986, as amended, together
with the published rulings, regulations, and interpretations duly
promulgated hereunder.

         "Committee" means the Compensation Committee of the Board or such
other committee appointed or designated by the Board to administer the Plan in
accordance with Section 3 of this Plan.

         "Disability" means a physical and/or mental condition that renders a
Participant unable to perform the duties of the Participant's position on a
full-time basis for a period of one hundred eighty (180) consecutive
business days. Disability shall be deemed to exist when certified by a
physician selected by the Company or its insurers. The Participant will
submit to such examinations and tests as such physician deems necessary to
make any such Disability determination.

         "Funding" or "Funded" mean the level of achievement against approved,
pre-established Performance Goals required to permit a corresponding level
of Awards to be earned by Participants for a Performance Period. Funding can
be established at Threshold, Target, and High Performance levels.

                                      2                  September 19, 2002


<PAGE>
<PAGE>

         "High Performance Opportunity" means the cash Award that a Participant
is potentially eligible to earn under the Plan, expressed as a percentage of
the Participant's annual base salary at the start of the Performance Period,
if the Plan is Funded at the High Performance level and the Participant's
overall performance against Performance Goals exceeds expectations.

         "Participant" means an employee who is selected by the Committee to
participate in the Plan.

         "Performance Criteria" or "Performance Goals" mean the objectives
established by the Committee for the Performance Period pursuant to Section
5 hereof, for the purpose of determining Awards under the Plan.

         "Performance Period" or "Plan Year" mean the consecutive twelve-month
period that constitutes the Company's fiscal year, or, for an employee who
becomes a Participant after the start of the Performance Period, the period
of time between becoming a Participant and the end of the Company's fiscal
year.

         "Plan" means The Laclede Group, Inc. Management Bonus Plan, effective
October 1, 2002, as amended from time to time.

         "Retirement" means the Participant's termination of employment with
the Company and its subsidiaries on or after the Participant's attainment
of age 55 and completion of five or more years of service with the Company
and its Subsidiaries.

         "Subsidiary" means any company (other than the Company) with respect
to which the Company owns, directly or indirectly, 50% or more of the total
combined voting power of all classes of stock. In addition, any other
related entity may be designated by the Board as a Subsidiary, provided such
entity could be considered as a subsidiary according to generally accepted
accounting principles.

         "Target Opportunity" means the cash Award that a Participant is
potentially eligible to earn under the Plan, expressed as a percentage of
the Participant's annual base salary at the start of the Performance Period,
if the Plan is fully Funded and the Participant's overall performance
against Performance Goals meets expectations.

         "Threshold Opportunity" means the cash Award that a Participant is
potentially eligible to earn under the Plan, expressed as a percentage of
the Participant's annual base salary at the start of the Performance Period,
if the Plan is Funded at the Threshold level and the Participant's overall
performance against Performance Goals meets minimum expectations.

3. ADMINISTRATION

         The Plan shall be administered by the Committee unless otherwise
determined by the Board. The Committee shall consist of not fewer than two
members of the Board who are "independent" as that term is defined by the
listing standards of the New York Stock Exchange. Unless otherwise provided
in the Committee's charter document, the Committee shall select one of its
members to act as its Chairman and a majority of the Committee shall
constitute a quorum, and the act of a majority of the members of the
Committee present at a meeting at which a quorum is present shall be the act
of the Committee.

         The Committee shall determine and designate from time to time the
eligible employees who may be Participants and to whom Awards will be made.
The Committee, in its discretion, shall (a) interpret the Plan, (b)
prescribe, amend, and rescind any rules and regulations necessary or
appropriate

                                      3                  September 19, 2002


<PAGE>
<PAGE>

for the administration of the Plan, and (c) make such other determinations
and take such other action as it deems necessary or advisable in the
administration of the Plan. Any interpretation, determination, or
other action made or taken by the Committee shall be final, binding, and
conclusive on all interested parties. The Committee may, however, delegate
all or any portion of its administrative authority to any one or more of its
members and may delegate all or any part of its administrative authority to
any person or persons selected by it, as the members by unanimous consent
deem appropriate. The Committee may revoke any such allocation or delegation
at any time.

4. ELIGIBILITY

         Only those employees in positions (a) that have the potential to
materially and positively impact reliability, profitability, shareholder
value, or customer satisfaction, or (b) where competitive market data
strongly indicate the prevalence of a bonus opportunity for such position,
shall be considered eligible for participation in the Plan. Prior to the
beginning of the Performance Period, the CEO shall make recommendations to
the Committee as to the Participants and their respective Target
Opportunities for the upcoming Performance Period. The Committee, in its
sole discretion, shall make the final determination as to Participants, and
to their respective Target Opportunities. Participation in one Plan Year
does not entitle any Participant to be a Participant in a subsequent Plan
Year. The CEO may recommend an employee who is hired or promoted (after the
start of the Plan Year) into a position considered to be eligible to
participate in the Plan, to the Committee for inclusion as a Participant in
the current Plan Year. Such Participant shall be eligible to earn a prorated
Award based on the number of full months as a Participant during the
Performance Period, as the Committee may determine. An employee who is not a
Participant at the start of the Plan Year must be a Participant in the Plan
for a minimum of six months during the Plan Year to be eligible for an Award
for that Plan Year.

5. PERFORMANCE GOALS AND MEASUREMENT

         AWARDS. Awards may be made annually in accordance with actual
performance compared to the Performance Goals previously established by the
Committee for the Performance Period.

         PERFORMANCE GOALS. The Committee shall establish, in writing,
Performance Goals relating to Funding for a Performance Period not later
than 90 days after commencement of the Performance Period. Performance Goals
may include alternative and multiple Performance Goals and may be based on
one or more business and/or financial criteria. In establishing the
Performance Goals for the Plan Year, the Committee in its discretion may
include one or any combination of the following Performance Criteria, in
either absolute or relative terms, for the Company, any of its Subsidiary
organizations, or an individual business unit:

         (a) Measures of operating stability and reliability, efficiencies,
               employee safety and attendance, and service disruptions

         (b) Return on assets, equity, capital, or investment

         (c) Pre-tax or after-tax profit levels, including: earnings per
               share; earnings before interest and taxes; earnings before
               interest, taxes, depreciation and amortization; net operating
               profits after tax, and net income

         (d) Cash flow and cash flow return on investment

         (e) Economic value added and economic profit

                                      4                  September 19, 2002


<PAGE>
<PAGE>

         (f) Credit rating or credit worthiness

         (g) Levels of operating expense or other expense items as reported
               on the income statement, including operating and maintenance
               expense.

         (h) Total shareholder return

         (i) Measures of customer satisfaction and customer service as
               surveyed from time to time, or as tracked within the Company,
               including the relative improvement therein.

         The Committee shall similarly establish Performance Goals for the CEO,
and approve Performance Goals for all other Participants. The Performance
Goals may be identical for all Participants or, at the discretion of the
Committee, may be different to reflect more appropriate measures of
individual performance.

         ADJUSTMENTS FOR EXTRAORDINARY ITEMS. The Committee shall be authorized
to make adjustments in the method of calculating attainment of Performance
Goals in recognition of: (a) extraordinary or non-recurring items, (b)
changes in tax laws, (c) changes in generally accepted accounting principles
or changes in accounting policies, (d) charges related to restructured or
discontinued operations, (e) restatement of prior period financial results,
and (f) any other unusual, non-recurring gain or loss that is separately
identified and quantified in the Company's financial statements.
Notwithstanding the foregoing, the Committee may, at its sole discretion,
reduce the performance results upon which Awards are based under the Plan,
to offset any unintended result(s) arising from events not anticipated when
the Performance Goals were established.

         DETERMINATION OF AWARDS. The Award and payment of any Award under this
Plan to a Participant with respect to the Performance Period shall be
contingent upon both (a) the attainment of the Performance Goals related to
Funding, and (b) the attainment of the Performance Goals that are applicable
to such Participant, in such combination as the Committee shall determine.
The Committee shall certify in writing prior to payment of any such Award
that such applicable Performance Goals relating to the Award are satisfied.
Approved minutes of the Committee may be used for this purpose.

         TIMING OF AWARDS. At the first meeting of the Committee after the
completion of the Plan Year, the Committee shall review the prior year's
performance in relation to the Performance Goals. The first meeting of the
Committee shall occur within 60 days following the completion of the
Performance Period. All Awards shall be paid in cash as soon as practicable
following certification by the Committee, unless deferred pursuant to an
election under a deferred compensation plan maintained by the Company or a
Subsidiary.

6. WITHHOLDING TAXES

         The Company shall have the right to deduct from any payment to be made
pursuant to the Plan the amount of any taxes required by law to be withheld
with respect to such payments.

7. TERMINATION OF EMPLOYMENT

         A Participant who, during the Performance Period, ceases to be an
employee due to Retirement, death, Disability, or involuntary termination
not for Cause, shall nonetheless be eligible to receive an award, as the
Committee shall determine, subject to the provisions of Section 5, prorated
for the period

                                      5                  September 19, 2002


<PAGE>
<PAGE>

of time, rounded to the nearest full month, that such employee was a
Participant under the Plan. A Participant who, during the Performance Period
or after the Performance Period but before certification of the Awards for
such Performance Period by the Committee, ceases to be an employee due to
voluntary termination or termination for Cause, shall forfeit all rights to
an Award for such Performance Period.

8. NO RIGHT TO CONTINUED EMPLOYMENT OR AWARDS

         No employee shall have any claim or right to receive an Award, and the
receipt of an Award shall not be construed as giving a Participant the right
to be retained in the employ of the Company or any of its Subsidiaries.
Further, the Company and its Subsidiaries expressly reserve the right at any
time to terminate the employment of any Participant free from any liability
under the Plan; except that a Participant, who meets or exceeds the
Performance Goals for the Performance Period and was actively employed for
six consecutive months or more of the Performance Period, may be eligible
for an Award provided, however, that the Participant is an active employee
of the Company at the time the Awards are paid under the Plan, or is
otherwise eligible for an Award subject to the provisions of Section 7.

9. CHANGE IN CONTROL

         Immediately upon a Change in Control, notwithstanding any other
provision of this Plan, all Awards for the Performance Period in which the
Change in Control occurs shall be deemed earned at the Target Opportunity
level, and the Company shall make a payment in cash, prorated for the period
of time elapsed commencing with the first day of the then current
Performance Period and ending with the effective date of the Change in
Control, to each Participant within thirty (30) days after the effective
date of the Change in Control in the amount of such Target Opportunity.

10. AMENDMENTS, MODIFICATION, SUSPENSION, OR TERMINATION

         Prior to the commencement of any Plan Year, the Committee may,
without the consent of the Participants, alter, amend, revise, suspend, or
discontinue the Plan in whole or in part.

11. GOVERNING LAW

         The validity, construction and effect of the Plan and any actions
taken or relating to the Plan shall be determined in accordance with the laws
of the State of Missouri and applicable Federal law.

12. SUCCESSORS AND ASSIGNS

         The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, expressly to assume and agree to
perform the Company's obligations under this Plan in the same manner and to
the same extent that the Company would be required to perform them if no
such succession had taken place. As used herein, the "Company" shall mean
the Company as hereinbefore defined and any aforesaid successor to its
business and/or assets.

                                      6                  September 19, 2002


<PAGE>
<PAGE>

13. INDEMNIFICATION

         No member of the Board or the Committee, nor any officer or employee
of the Company acting on behalf of the Board or the Committee, shall be
personally liable for any action, determination, or interpretation taken or
made in good faith with respect to the Plan, and all members of the Board or
the Committee and each and any officer or employee of the Company acting on
their behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect of any such action, determination, or
interpretation.

                                  * * * * *

         IN WITNESS WHEREOF, the Company has caused this instrument to be
executed as of September 26, 2002 by its President pursuant to prior action
taken by the Board.

                                     The Laclede Group, Inc.

                                     By:
                                         -----------------------------
                                         Douglas H. Yaeger
                                         Chairman of the Board, President
                                         and Chief Executive Officer

Attest:


---------------------
Mary Caola Kullman
Secretary


                                      7                  September 19, 2002