<PAGE>

                                                                  Exhibit 10 (d)

DATE:   OCTOBER 25, 1995                                     CONTRACT NO. 24950


                              FTS - 1 SERVICE AGREEMENT

This AGREEMENT is entered into by ANR Pipeline Company

(Transporter) and North Shore Gas Company (Shipper)

WHEREAS, Shipper has requested Transporter to transport Gas on its behalf and
Transporter represents that it is willing to transport Gas under the terms and
conditions of this Agreement.

NOW, THEREFORE, Transporter and Shipper agree that the terms below, together
with the terms and conditions of Transporter's applicable Rate Schedule and
General Terms and Conditions of Transporter's FERC Gas Tariff constitute the
transportation service to be provided and the rights and obligations of Shipper
and Transporter.

1.  AUTHORITY FOR TRANSPORTATION SERVICE:

    284G - Blanket

2.  RATE SCHEDULE:  FIRM TRANSPORTATION SERVICE (FTS - 1)

3.  CONTRACT QUANTITIES:

    Primary Routes - see Exhibit attached hereto.

    Such Contract Quantities shall be reduced for scheduling purposes, but not
    for billing purposes, by the Contract Quantities that Shipper has released
    through Transporter's capacity release program for the period of any
    release.

4.  TERM OF AGREEMENT:

    11/01/1995 to

    10/31/2000

5.  RATES:

    Maximum rates, charges, and fees shall be applicable for the entitlements
    and quantities delivered pursuant to this Agreement unless Transporter has
    advised Shipper in writing or by ANR Xpedite that it has agreed otherwise.

<PAGE>


DATE:   OCTOBER 25, 1995                                     CONTRACT NO. 24950

    It is further agreed that Transporter may seek authorization from the
    Commission and/or other appropriate body at any time and from time to time
    to change any rates, charges or other provisions in the applicable Rate
    Schedule and General Terms and Conditions of Transporter's FERC Gas Tariff,
    and Transporter shall have the right to place such changes in effect in
    accordance with the Natural Gas Act. This Agreement shall be deemed to
    include such changes and any changes which become effective by operation of
    law and Commission order. Nothing contained herein shall be construed to
    deny Shipper any rights it may have under the Natural Gas Act, including
    the right to participate fully in rate or other proceedings by intervention
    or otherwise to contest increased rates in whole or in part.


6.  INCORPORATION BY REFERENCE

    The provisions of Transporter's applicable Rate Schedule and the General
    Terms and Conditions of Transporter's FERC Gas Tariff are specifically
    incorporated herein by reference and made a part hereof.

7.  NOTICES:

    All notices can be given by telephone or other electronic means, however,
    such notice shall be confirmed in writing at the addresses below or through
    ANR Xpedite. Shipper or Transporter may change the addresses below by
    written notice to the other without the necessity of amending this
    agreement:

    TRANSPORTER:

    ANR PIPELINE COMPANY
    500 Renaissance Center
    Detroit, Michigan 48243
    Attentions:    Gas Control (Nominations)
                   Volume Management (Statements)
                   Cash Control (Payments)
                   Marketing Administration (All Other Matters)

    SHIPPER:

    NORTH SHORE GAS COMPANY              (Shipper Name)
    ----------------------------------
    130 East Randolph, 22nd Floor        (Address)
    ----------------------------------
    Chicago, IL 60601-6207               (City, State, Zip)
    ----------------------------------
    Attention:   Raulando C. deLara
                 ---------------------
    Telephone:   (312)  240-7057
                 ---------------------
    Fax:         (312)  240-4211
                 ---------------------


                                          2


<PAGE>

DATE: OCTOBER 25, 1995                                       CONTRACT NO. 24950

    INVOICES AND STATEMENTS:

    THE PEOPLES GAS LIGHT AND COKE CO.   (Shipper Name)
    ----------------------------------
    130 East Randolph, 22nd Floor        (Address)
    ----------------------------------
    Chicago, IL 60601-6207               (City, State, Zip)
    ----------------------------------
    Attention:     Raulando C. deLara
                 ---------------------
    Telephone:     (312)  240-7057
                 ---------------------
    Fax:           (312)  240-4211
                 ---------------------

    NOMINATIONS:


    THE PEOPLES GAS LIGHT AND COKE CO.   (Shipper Name)
    ----------------------------------
    130 East Randolph, 22nd Floor        (Address)
    ----------------------------------
    Chicago, IL 60601-6207               (City, State, Zip)
    ----------------------------------
    Attention:     Jerome J. Slechta
                 ---------------------
    Telephone:     (312)  240-7057
                 ---------------------
    Fax:           (312)  240-4211
                 ---------------------

    Mechanical Dialing
    Device No(s)
                    -------------------------------

    ALL OTHER MATTERS:


    THE PEOPLES GAS LIGHT AND COKE CO.   (Shipper Name)
    ----------------------------------
    130 East Randolph, 22nd Floor        (Address)
    ----------------------------------
    Chicago, IL 60601-6207               (City, State, Zip)
    ----------------------------------
    Attention:     Raulando C. deLara
                 ---------------------
    Telephone:     (312)  240-7057
                 ---------------------
    Fax:           (312)  240-4211
                 ---------------------


                                          3


<PAGE>

DATE: OCTOBER 25, 1995                                       CONTRACT NO. 24950

8.  FURTHER AGREEMENT

    A.   The rate for all quantities of gas transported on the Primary Route(s)
         up to the Primary Route MDQ(s) under this Agreement shall be the
         current FERC Tariff Rates in effect not to exceed $0.15 per dth on a
         100% load factor basis inclusive of  Volumetric Buyout/Buydown, GRI,
         Dakota and Transition Costs.  In addition, Shipper will be charged
         ACA, fuel and any other related fees or surcharges.

    B.   All quantities associated with Secondary Receipt Points, Secondary
         Delivery Points, Secondary Routes and the releases of the capacity
         under this Agreement will be at Maximum Tariff Rates plus all other
         related fees, surcharges and fuel.

    C.   Shipper and any Agent of Shipper agree that the rates stated herein
         shall be confidential and shall be maintained confidentially by
         Shipper and any Agent of Shipper. Shipper may disclose such rates only
         if such disclosure is required by law and Shipper requests
         confidential or privileged treatment under applicable statutes, rules
         and regulations, and provides reasonable notice to Transporter prior
         to such disclosure. Any unauthorized disclosure of the rates stated
         herein shall have the effect of terminating from the date the
         discounted rate is disclosed any rate discounts reflected herein such
         that, for the remaining term of this Agreement, Shipper shall be
         required to pay Transporter the maximum applicable rate for service,
         as well as all other charges, surcharges or direct bill applicable to
         such service.

    D.   Shipper waives its right to segment its FTS-1 capacity during the term
         of this Agreement.

    E.   If FTS-1 Agreement No. 24400 is terminated after one (1) year of
         service, this Agreement shall be amended to change the Primary
         Delivery Point to East Joliet only with a 100% load factor rate of
         $0.12 per dth inclusive of Volumetric Buyout/Buydown, GRI, Dakota and
         Transition Costs. In addition, Shipper will be charged ACA, fuel and
         any other related fees or surcharges.

    F.   During the November 1, 1995 to April 30, 1996, October through April
         (1996 - 2000) and October 1-31, 2000 periods, Shipper can nominate up
         to 37,500 dth/day from Crystal Falls to either Monclova or East Joliet
         as long as the total combined nomination does not exceed 37,500
         dth/day.


                                          4


<PAGE>

DATE:  OCTOBER 25, 1995                                      CONTRACT NO. 24950

    G.   Consistent with provisions of its Tariff, Transporter is willing to
         contract on Shipper's behalf for capacity required on third party
         transporters, or for other services to effectuate Shipper's receipt of
         gas on third party facilities and delivery of gas to Transporter's
         facilities.

         Shipper must advise Transporter prior to commencement of such third
         party transportation of its desire to have Transporter act in such a
         capacity.

         Shipper agrees to pay all charges related to such third party
         transportation arrangements pursuant to Transporter's Tariff.

    H.   To the extent Shipper desires to utilize receipt/delivery points
         pursuant to Part 284 B (Section 311 of the NGPA and Section 284.102 of
         the Commission's regulations), Shipper must execute a separate
         agreement with Transporter and Shipper must also certify that the
         transportation of gas will be on behalf of either an "intrastate
         pipeline" or a "local distribution company."

9.  OPERATIONAL FLOW ORDERS

    Shipper hereby guarantees to Transporter that each contract it has entered
    into in connection with the Gas to be transported under this Agreement
    contains a provision that permits Transporter to issue an effective
    Operational Flow Order pursuant to Section 8 of the General Terms and
    Conditions. Shipper shall also guarantee for any supply contract for Gas
    that is transported via Viking Gas Transmission Company, that Transporter
    shall be designated a third party beneficiary.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
by their respective Officers or Representatives thereunto duly authorized to be
effective as of the date stated above.


         North Shore
SHIPPER: Gas Company                     TRANSPORTER:  ANR Pipeline Company
By:      /s/ T. M. Patrick               By:       /s/ Linda M. Maiorana
         ------------------------------           -----------------------------
Title:   Vice President                  Title:    Assistant Vice President
         ------------------------------           -----------------------------
Date:    11/13/95                        Date:     11/16/95
         ------------------------------           -----------------------------

<PAGE>


    PRIMARY ROUTE EXHIBIT                   Contract No.       24950
    To Agreement Between                    Contract Rate      FTS-1
    ANR Pipeline Company (Transporter)      Contract Date      October 25, 1995
    and North Shore Gas Company (Shipper)   Amendment Date     -

<TABLE>
<CAPTION>

  RECEIPT              RECEIPT                 DELIVERY     DELIVERY       MDQ
  NUMBER                NAME                    NUMBER        NAME        (DTH)       EFFECTIVE PERIOD
----------      ------------------------      ----------   -------------  ------    ---------------------

<S>             <C>                           <C>          <C>            <C>       <C>
037000700       Crystal Falls/Fortune Lk      032110400    Monclova (1)   37500      11/01/95 to 04/30/96
                                              032200100    East Joliet

037000700       Crystal Falls/Fortune Lk      032200100    East Joliet    37500        MAY - SEPTEMBER
                                                                                        (1996 - 2000)

037000700       Crystal Falls/Fortune Lk      032110400    Monclova (1)   37500        OCTOBER - APRIL
                                              032200100    East Joliet                  (1996 - 2000)

037000700       Crystal Falls/Fortune Lk      032110400    Moncolva (1)   37500     10/01/2000 to 10/31/2000
                                              032200100    East Joliet

</TABLE>

(1) The Primary Delivery Point of Monclova can be used during the months of
October through April only; the Primary Delivery Point of East Joliet can be
used through the term of the Agreement.