| UNITED                STATES                                     |
|------------------------------------------------------------------|
| SECURITIES                AND EXCHANGE COMMISSION                |
| Washington,                D.C. 20549                            |
|                                                             |
| **FORM                10-K/A****Amendment                No. 2** |

|                     (Mark One)                                                   |                                                                                                                                                                               |
|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                 |                                                                                                                                                                               |   |
|                              R      |                                    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
| THE                SECURITIES EXCHANGE ACT OF 1934                                                   |
| **For                the fiscal year ended SEPTEMBER 30, 2006**                                      |
| OR                                                                                                   |
|                              £ |                                   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)      |
| OF                THE SECURITIES EXCHANGE ACT OF 1934                                                |

| Commission                 | Exact                Name of Registrant as Specified in Charter, State of                Incorporation, | IRS                Employer          |
|----------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------|
| File                Number | Address                of Principal Executive Office and Telephone Number                               | Identification                Number |
| **1-5540**                 | **PEOPLES                ENERGY CORPORATION**                                                           | **36-2642766**                       |
| **2-26983**                | **THE                PEOPLES GAS LIGHT AND COKE COMPANY**                                               | **36-1613900**                       |
| **2-35965**                | **NORTH                SHORE GAS COMPANY**                                                              | **36-1558720**                       |
|                       |                                                                                                    |                                 |
|                       | (an                Illinois Corporation)                                                                |                                 |
|                       | 130                East Randolph Drive, 24th                Floor                                       |                                 |
|                       | Chicago,                Illinois 60601-6207                                                             |                                 |
|                       | Telephone                (312) 240-4000                                                                 |                                 |

| Securities                registered pursuant to Section 12(b) of the Act: |
|----------------------------------------------------------------------------|
|                                                                       |   | Name                of each exchange |
| Title                of Each Class                                         |   | on                which registered |
| Peoples                Energy Corporation                                  |   | New                York Stock Exchange, |
| Common                Stock, without par value                             |   | Chicago                Stock Exchange, |
|                                                                       |   | and                Pacific Exchange |

| Indicate                by check mark if the registrant is a well-known seasoned issuer,                as                defined in Rule 405 of the Securities Act. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peoples                Energy Corporation                                                                                                                            | Yes                R                No                £ |
| The                Peoples Gas Light and Coke Company                                                                                                                | Yes                £                No                R |
| North                Shore Gas Company                                                                                                                               | Yes                £                No                R |

| Indicate                by check mark if the registrant is not required to file reports pursuant                to Section 13 or 15(d) of the Act. |
|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Peoples                Energy Corporation                                                                                                          | Yes                £                No                R |
| The                Peoples Gas Light and Coke Company                                                                                              | Yes                R                No                £ |
| North                Shore Gas Company                                                                                                             | Yes                R                No                £ |

| Indicate                by check mark whether the registrants (1) have filed all reports                required                to be filed by Section 13 or 15(d) of the Securities Exchange Act                of 1934                during the preceding 12 months (or for shorter period that the registrant                was required to file such reports), and (2) have been subject to                such                filing requirements for the past 90 days. Yes R                No                £ |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| Indicate                by check mark if disclosure of delinquent filers pursuant to Item                405 of                Regulation S-K (§229.405 of this chapter) is not contained herein, and                will not be contained, to the best of registrant's knowledge, in                definitive proxy or information statements incorporated by reference                in                Part III of this Form 10-K or any amendment to this Form 10-K.                R                              |

----

| Indicate                by check mark whether the registrant is a large accelerated filer,                an                accelerated filer, or a non-accelerated filer. See definition of                "accelerated filer and large accelerated filer" in Rule 12b-2 of                the                Exchange Act. (Check one): |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                      |
| Peoples                Energy Corporation                                                                                                                                                                                                                                                                                                 |
| Large                accelerated filer R     Accelerated                filer £                     Non-accelerated filer £                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                      |
| The                Peoples Gas Light and Coke Company                                                                                                                                                                                                                                                                                     |
| Large                accelerated filer £  Accelerated                filer £  Non-accelerated                filer R                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                      |
| North                Shore Gas Company                                                                                                                                                                                                                                                                                                    |
| Large                accelerated filer £  Accelerated                filer £  Non-accelerated                filer R                                                                                                                                                                                        |

| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Act). |
|------------------------------------------------------------------------------------------------------------------------------------------------------|
| Peoples                Energy Corporation                                                                                                            | Yes                £                No                R |
| The                Peoples Gas Light and Coke Company                                                                                                | Yes                £                No                R |
| North                Shore Gas Company                                                                                                               | Yes                £                No                R |

| The                aggregate market value of the voting stock held by non-affiliates                of the                registrants as of the last business day of the registrant's most                recently                completed second fiscal quarter: |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                               |   |
| Peoples                Energy Corporation                                                                                                                                                                                                                          | Approximately                $1.4 billion computed on the basis of the closing market price of                $35.64                for a share of Common Stock on March 31, 2006. |
|                                                                                                                                                                                                                                                               |   |
| The                Peoples Gas Light and Coke Company                                                                                                                                                                                                              | None. |
|                                                                                                                                                                                                                                                               |   |
| North                Shore Gas Company                                                                                                                                                                                                                             | None. |

| Indicate                the number of shares outstanding of each of the registrant's classes                of                Common Stock, as of the latest practicable date (November 30,                2006): |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                              |   |
| Peoples                Energy Corporation                                                                                                                                                                         | Common                Stock, no par value, 38,572,918 shares outstanding |
|                                                                                                                                                                                                              |   |
| The                Peoples Gas Light and Coke Company                                                                                                                                                             | Common                Stock, no par value, 25,357,566 shares outstanding (all of which                are owned                beneficially and of record by Peoples Energy                Corporation) |
|                                                                                                                                                                                                              |   |
| North                Shore Gas Company                                                                                                                                                                            | Common                Stock, no par value, 3,625,887 shares outstanding (all of which are                owned                beneficially and of record by Peoples Energy                Corporation) |

| This                combined Form 10-K is separately filed by Peoples Energy Corporation,                The                Peoples Gas Light and Coke Company, and North Shore Gas Company.                Information contained herein relating to any individual company is                filed                by such company on its own behalf. Each company makes no representation                as                to information relating to the other companies. **The                Peoples Gas Light and Coke Company and North Shore Gas Company meet                the                conditions set forth in General Instruction I(1)(a) and (b) of Form                10-K                and are therefore filing this Form 10-K with the reduced disclosure                format                permitted by General Instruction                I(2).** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Documents                Incorporated by Reference** |
|--------------------------------------------------------|
|                                                   |   |   |
|                                                   | Document | Part                of Form 10-K |
|                                                   |   |   |
| Peoples                Energy Corporation              | None |   |
|                                                   |   |   |
| The                Peoples Gas Light and Coke Company  | None |   |
|                                                   |   |   |
| North                Shore Gas Company                 | None |   |

----

**EXPLANATORY      NOTE**

| ·   | to                include Part III, Items 10, 11, 12, 13, and 14 of the Form 10-K;                and |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | to                amend the “Equity Compensation Plan Information” table and related                footnote (3) of Item 12 for the correction of the number of securities                remaining available for future issuance under equity compensation                plans                approved by security holders as previously reported in the Company’s                Annual Report on Form 10-K filed with the SEC on December 14,                2006. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**PART      III**

**ITEM      10. Directors and Executive Officers of the Company**

*Keith      E. Bailey, 64.*

*James      R. Boris, 62.*

*William      J. Brodsky, 63.*

*Pastora      San Juan Cafferty, 66.*
*      emerita*

*Diana      S. Ferguson, 43.*

*John      W. Higgins, 60.*

*Dipak      C. Jain, 49.*

----

*Michael      E. Lavin, 60. *

*Homer      J. Livingston, Jr., 71.*

*Thomas      M. Patrick, 61.*

*Richard      P. Toft, 70.*

**Section 16(a)      Beneficial Ownership Reporting Compliance **

**Code      of Ethics**

*www.peoplesenergy.com*

**Audit      Committee**

**Director      Independence**

*www.peoplesenergy.com*

----

**ITEM      11. Executive Compensation**

**SUMMARY      COMPENSATION TABLE**

|                                                                                                                |        |               |                                   |                  |            |             |             |                                                              |        | **Long                Term Compensation**                       |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------------------------------------|-----------------------|------------|------------------|-------------|-------------------------------------------------------------------|--------|-----------------------------------------------------------------|
|                                                                                                                |        |               | **Annual                Compensation** |                       | **Awards** |                  | **Payouts** |
| **Name                and Principal Position**                                                                      |   | **Fiscal****Year** |                                   | **Salary****($)**     |       | **Bonus****($)** |        | **Other****Annual****Compensation****($)                (1) (2)** |   | **Restricted****Stock****Awards****($)                (3) (4)** |   | **LTIP****Payouts****($)** |   | **All                Other****Compensation****($)                (5)** |
| Thomas                M. PatrickChairman,                President andChief                Executive Officer        |   | 200620052004       |                                   | 669,800650,300637,500 |       | 00151,100        |        | 5,86411,4716,678                                                  |   | 426,231465,212426,701                                           |   | 000 |   | 7,9207,5607,380 |
|                                                                                                                |   |               |                                   |                  |       |             |        |                                                              |   |                                                            |   |   |   |   |
| William                E. MorrowExecutive                Vice President                                             |   | 200620052004       |                                   | 360,500350,000313,083 |       | 087,50096,100    |        | 5,3886,4545,388                                                   |   | 147,825159,267121,162                                           |   | 000 |   | 7,9207,5607,380 |
|                                                                                                                |   |               |                                   |                  |       |             |        |                                                              |   |                                                            |   |   |   |   |
| Thomas                A. NardiExecutive                Vice Presidentand                Chief Financial Officer     |   | 200620052004       |                                   | 360,500325,000300,900 |       | 056,90082,300    |        | 5,3885,9905,566                                                   |   | 147,825145,556119,073                                           |   | 000 |   | 7,9207,5607,380 |
|                                                                                                                |   |               |                                   |                  |       |             |        |                                                              |   |                                                            |   |   |   |   |
| Desiree                G. RogersSenior                Vice President                                                |   | 200620052004       |                                   | 305,000285,000251,092 |       | 0139,50080,800   |        | 5,3885,3885,388                                                   |   | 125,013129,73497,139                                            |   | 000 |   | 7,9207,5607,556 |
|                                                                                                                |   |               |                                   |                  |       |             |        |                                                              |   |                                                            |   |   |   |   |
| Steven                W. NancePresident,                Peoples Energy Production                                   |   | 200620052004       |                                   | 325,000310,000300,000 |       | 00135,800        |        | 4,9995,4874,730                                                   |   | 133,22554,84752,225                                             |   | 80,37282,824386,114 |   | 07,5607,380 |
|                                                                                                                |   |               |                                   |                  |       |             |        |                                                              |   |                                                            |   |   |   |   |
| Theodore                R. TetzlaffGeneral                Counsel,Ungaretti                & Harris LLP **(6)** |   | 200620052004       |                                   | 750,000250,0000       |       | 000              |        | 000                                                               |   | 000                                                             |   | 000 |   | 000 |

| (1)   | Figures                shown only reflect amounts reimbursed for the payment of taxes, except                for                the following which contain above market interest accrued on deferred                compensation under the Company's Executive Deferred Compensation                Plan, for                the following officers: fiscal 2005, Messrs, Patrick, $5,608; Morrow,                $1,066; and Nardi, $601; and fiscal 2006, Messrs. Patrick, $5,913;                Morrow, $2,402 and Nardi, $1,355. Figures do not include any perquisite                or                other personal benefit amounts as the aggregate amount of such                compensation was less than the lesser of $50,000 or 10% of the officer's                total annual salary and bonus. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Perquisites                or other personal benefits that exceed 25% of the total perquisites                and                other personal benefits received are as follows. In fiscal 2004,                Messrs.                Patrick, Morrow, and Nardi, Ms. Rogers and Mr. Nance each received                a                $9,000 auto allowance, and Mr. Nance received a $9,317 club membership                allowance. During fiscal 2005, Messrs. Patrick, Morrow, and Nardi,                Ms.                Rogers and Mr. Nance each received a $9,000 auto allowance. Also,                during                fiscal 2005, Mr. Patrick received an $8,597 club membership allowance,                Mr.                Nance received a $9,616 club membership allowance, and Ms. Rogers                received                a $13,355 club membership allowance. During fiscal 2006, Messrs.                Patrick,                Morrow and Nardi, Ms. Rogers and Mr. Nance each received a $9,000                auto                allowance. Also, during 2006, Mr. Patrick received a $10,017 club                membership allowance and $7,500 financial planning allowance; Ms.                Rogers                received a $4,680 club membership allowance; and Mr. Nance received                an                $11,771 club membership allowance. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (3)   | Restricted                stock award amounts represent the dollar value of the restricted                shares                based upon the closing market price of the Company's common stock                on the                New York Stock Exchange on the date of grant. The total number of                restricted shares held by the named executive officers and the aggregate                market value of such shares at September 30, 2006 were as follows:                Mr. Patrick, 33,515 shares, valued at $1,362,385; Mr. Morrow,                10,735 shares, valued at $436,378; Mr. Nardi, 10,385 shares, valued                at $422,150; Ms. Rogers, 8,790 shares, valued at $357,314 and                Mr. Nance, 5,440 shares, valued at $221,136. Dividends are paid on                the restricted shares at the same time and at the same rate as dividends                paid to all shareholders of common stock. Aggregate market value                is based                on a per share price of $40.65, the closing price of Peoples Energy’s                stock on the New York Stock Exchange Composite Transactions on                September 29, 2006, as September 30 falls on a                weekend. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Restricted                stock awards granted to date vest in equal annual increments over                a                five-year period. If a recipient’s employment with the Company terminates,                other than by reason of death, disability, or retirement after attaining                age 65, the recipient forfeits all rights to the unvested portion                of the                restricted stock award. In addition, the Management Development And                Compensation Committee (and with respect to the CEO, the Management                Development And Compensation Committee, subject to the approval of                the                nonemployee directors) may, in its sole discretion, accelerate the                vesting                of any restricted stock awards granted under the Long-Term Incentive                Compensation Plan. Total restricted stock awarded to the named individuals                for 2004 constitutes 19,900 shares, of which 3,980 shares vested                in 2005;                3,980 shares vested in 2006; 3,980 shares will vest in 2007; 3,980                shares                will vest in 2008; and the remaining 3,980 shares will vest in 2009.                Total                restricted stock awarded to the named individuals for 2005 constitutes                22,500 shares, of which 4,500 shares vested in 2006, 4,500 shares                will                vest in 2007; 4,500 shares will vest in 2008; 4,500 shares will vest                in                2009; and the remaining 4,500 shares will vest in 2010. Total restricted                stock awarded to the named individuals for 2006 constitutes 26,875                shares,                of which 5,375 shares will vest in 2007; 5,375 shares will vest in                2008;                5,375 shares will vest in 2009; 5,375 shares will vest in 2010; and                5,375                shares will vest in 2011. All unvested restricted stock awards will                vest                upon a change in control as defined in the Company’s Long-Term Incentive                Compensation Plans. The consummation of the pending Merger with WPS                Resources would qualify as a change in control of the                Company. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Company                contributions to the Capital Accumulation Plan accounts of the named                executive officers during the above fiscal years. Employee contributions                under the plan are subject to a maximum limitation under the Internal                Revenue Code of 1986, as amended. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Mr. Tetzlaff                is a partner in the law firm of Ungaretti & Harris LLP and is not an                employee of the Company or its subsidiaries. Mr. Tetzlaff resigned as                General Counsel of the Company in December of                2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**AGGREGATED      OPTION/SAR EXERCISES IN FISCAL 2006 AND FISCAL YEAR-END OPTION/SAR      VALUES**

|                                                                                                                 |        |                                                    |   |                                  |        |   |              | **Number                of Securities****Underlying                Unexercised****Options/SARs                at****Fiscal                Year-End (#) (1)** |    | **Value of Unexercised In-the-****Money                Options/SARs****at                Fiscal Year-End ($)** |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------------------------------|
| **Name                and Principal Position**                                                                  |   | **Shares                Acquired on Exercise (#)** |   | **Value                Realized ($)** |   |   | Exercisable  |                                                                                                                                                              |    | Unexercisable                                                                                                            |   |   |  Exercisable  |   |  Unexercisable  |   |
| Thomas                M. PatrickChairman,                President andChief                Executive Officer    |   |                                               | 0      |                                  | $      | 0      |              |                                                                                                                                                              | 112,400 |                                                                                                                          |   | 0 |   |   | $ | 380,436 |   | $ | 0 |   |
|                                                                                                            |   |                                               |   |                                  |   |   |              |                                                                                                                                                              |    |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| William                E. MorrowExecutive                Vice President                                         |   |                                               | 0      |                                  |   | 0      |              |                                                                                                                                                              | 21,000  |                                                                                                                          |   | 0 |   |   |   | 0 |   |   | 0 |   |
|                                                                                                            |   |                                               |   |                                  |   |   |              |                                                                                                                                                              |    |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Thomas                A. NardiExecutive                Vice Presidentand                Chief Financial Officer |   |                                               | 0      |                                  |   | 0      |              |                                                                                                                                                              | 18,600  |                                                                                                                          |   | 0 |   |   |   | 0 |   |   | 0 |   |
|                                                                                                            |   |                                               |   |                                  |   |   |              |                                                                                                                                                              |    |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Desiree                RogersSenior                Vice President                                               |   |                                               | 0      |                                  |   | 0      |              |                                                                                                                                                              | 16,800  |                                                                                                                          |   | 0 |   |   |   | 0 |   |   | 0 |   |
|                                                                                                            |   |                                               |   |                                  |   |   |              |                                                                                                                                                              |    |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Steven                W. NancePresident,                Peoples EnergyProduction                Company         |   |                                               | 0      |                                  |   | 0      |              |                                                                                                                                                              | 12,100  |                                                                                                                          |   | 0 |   |   |   | 40,174 |   |   | 0 |   |
|                                                                                                            |   |                                               |   |                                  |   |   |              |                                                                                                                                                              |    |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |
| Theodore                R. TetzlaffGeneral                Counsel,Ungaretti                & Harris LLP     |   |                                               | 0      |                                  |   | 0      |              |                                                                                                                                                              | 0       |                                                                                                                          |   | 0 |   |   |   | 0 |   |   | 0 |   |

**LONG-TERM      INCENTIVE PLANS-AWARDS IN LAST FISCAL YEAR**

|                                | **Fiscal****Year** | **Number of****Shares, Units****or                Other****Rights (#)** | **Performance****or                Other****Period                Until****Maturation or****Payout** | **Estimated                Future Payouts Under****Non-Stock                Price-Based Plans** |
|-------------------------------------|--------------------|----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
| **Threshold****(#)**                | **Target****(#)**  | **Maximum****(#)**                                                                     |
| Thomas                M. Patrick    | 2006               | 18,400                                                                                 | 9-30-2008                                                                                                 | 9,200                                                                                           | 18,400 | 27,600 |
|                                | 2005               | 14,025                                                                                 | 9-30-2007                                                                                                 | 7,012                                                                                           | 14,025 | 21,037 |
|                                | 2004               | 12,700                                                                                 | 9-30-2006                                                                                                 | 6,350                                                                                           | 12,700 | 19,050 |
|                                |               |                                                                                   |                                                                                                      |                                                                                            |   |   |
| William                E. Morrow    | 2006               | 4,950                                                                                  | 9-30-2008                                                                                                 | 2,475                                                                                           | 4,950 | 7,425 |
|                                | 2005               | 4,525                                                                                  | 9-30-2007                                                                                                 | 2,262                                                                                           | 4,525 | 6,787 |
|                                | 2004               | 3,475                                                                                  | 9-30-2006                                                                                                 | 1,737                                                                                           | 3,475 | 5,212 |
|                                |               |                                                                                   |                                                                                                      |                                                                                            |   |   |
| Thomas                A. Nardi      | 2006               | 4,950                                                                                  | 9-30-2008                                                                                                 | 2,475                                                                                           | 4,950 | 7,425 |
|                                | 2005               | 4,150                                                                                  | 9-30-2007                                                                                                 | 2,075                                                                                           | 4,150 | 6,225 |
|                                | 2004               | 3,500                                                                                  | 9-30-2006                                                                                                 | 1,750                                                                                           | 3,500 | 5,250 |
|                                |               |                                                                                   |                                                                                                      |                                                                                            |   |   |
| Desiree                G. Rogers    | 2006               | 4,200                                                                                  | 9-30-2008                                                                                                 |  2,100                                                                                     | 4,200 | 6,300 |
|                                | 2005               | 3,700                                                                                  | 9-30-2007                                                                                                 |                  1,850                                                                     | 3,700 | 5,550 |
|                                | 2004               | 2,900                                                                                  | 9-30-2006                                                                                                 |                  1,450                                                                     | 2,900 | 4,350 |
|                                |               |                                                                                   |                                                                                                      |                                                                                            |   |   |
| Steven                W. Nance      | 2006               | 0                                                                                      | n/a                                                                                                       | 0                                                                                               | 0 | 0 |
|                                | 2005               | 0                                                                                      | n/a                                                                                                       | 0                                                                                               | 0 | 0 |
|                                | 2004               | 0                                                                                      | n/a                                                                                                       | 0                                                                                               | 0 | 0 |
|                                |               |                                                                                   |                                                                                                      |                                                                                            |   |   |
| Theodore                R. Tetzlaff | 2006               | 0                                                                                      | n/a                                                                                                       | 0                                                                                               | 0 | 0 |
|                                | 2005               | 0                                                                                      | n/a                                                                                                       | 0                                                                                               | 0 | 0 |
|                                | 2004               | 0                                                                                      |  n/a                                                                                                 | 0                                                                                               | 0 | 0 |

----

| 1 | The                Peer Group consists of the following companies: AGL Resources Inc.,                Ameren                Corporation, Atmos Energy Corporation, Cascade Natural Gas Company,                Dominion Resources, Inc., DTE Energy Company, Energen Corporation,                Equitable Resources, Inc., KeySpan Corporation, The Laclede Group,                Inc.,                MGE Energy, Inc., National Fuel Gas Company, New Jersey Resources                Corporation, Nicor Inc., NiSource Inc., Northwest Natural Gas Company,                OGE                Energy Corp., Oneok, Inc., Piedmont Natural Gas Company, Inc., Questar                Corporation, SEMCO Energy, Inc., Sempra Energy, Southern Union Company,                South Jersey Industries, Inc., Southwest Gas Corporation, UGI Corporation,                Vectren Corporation, WGL Holdings, Inc., Wisconsin Energy Corporation                and                WPS Resources Corporation. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Pension      Plan Table**

|                                              |   | **Years                of Service** |   |
|---------------------------------------------------|--------|-------------------------------------|--------|
| **Average                Annual Compensation**    |   | **20**                              |   | **25** |   | **30** |   | **35** |   | **40** |   |
| $     300,000            |   | 112,108                             |   | 140,135 |   | 168,162 |   | 186,912 |   | 205,662 |   |
|        350,000 |   | 132,108                             |   | 165,135 |   | 198,162 |   | 220,037 |   | 241,912 |   |
|        400,000 |   | 152,108                             |   | 190,135 |   | 228,162 |   | 253,162 |   | 278,162 |   |
|        450,000 |   | 172,108                             |   | 215,135 |   | 258,162 |   | 286,287 |   | 314,412 |   |
|        500,000 |   | 192,108                             |   | 240,135 |   | 288,162 |   | 319,412 |   | 350,662 |   |
|        550,000 |   | 212,108                             |   | 265,135 |   | 318,162 |   | 352,537 |   | 386,912 |   |
|        600,000 |   | 232,108                             |   | 290,135 |   | 348,162 |   | 385,662 |   | 423,162 |   |
|        650,000 |   | 252,108                             |   | 315,135 |   | 378,162 |   | 418,787 |   | 459,412 |   |
|        700,000 |   | 272,108                             |   | 340,135 |   | 408,162 |   | 451,912 |   | 495,662 |   |
|        750,000 |   | 292,108                             |   | 365,135 |   | 438,162 |   | 485,037 |   | 531,912 |   |
|        800,000 |   | 312,108                             |   | 390,135 |   | 468,162 |   | 518,162 |   | 568,162 |   |
|        850,000 |   | 332,108                             |   | 415,135 |   | 498,162 |   | 551,287 |   | 604,412 |   |
|        900,000 |   | 352,108                             |   | 440,135 |   | 528,162 |   | 584,412 |   | 640,662 |   |
|        950,000 |   | 372,108                             |   | 465,135 |   | 558,162 |   | 617,537 |   | 676,912 |   |
|     1,000,000                 |   | 392,108                             |   | 490,135 |   | 588,162 |   | 650,662 |   | 713,162 |   |

----

**Compensation      of Directors**

*ex officio*

**Employment      Contracts, Termination of Employment and Change-in-Control      Arrangements**

----

*de      minimis*

----

** **

** **

----

*Equity      Compensation Awards*
** **

*Long-Term      Cash Awards*

| **Executive**                               |   | **Cash                Award** |
|---------------------------------------------|--------|-------------------------------|
| William                E. Morrow            |   | $                             | 0 |   |
| Steven                W. Nance              |   | $                             | 2,555,850 |   |
| Thomas                A. Nardi              |   | $                             | 0 |   |
| Thomas                M. Patrick            |   | $                             | 0 |   |
| Desiree                G. Rogers            |   | $                             | 0 |   |
| Theodore                R. Tetzlaff         |   | $                             | 0 |   |
| All                other executive officers |   | $                             | 0 |   |

*Directors      Stock and Option Plan*

----

*Directors      Deferred Compensation Plan*

** **

**Compensation      Committee Interlocks and Insider Participation**

**REPORT      OF THE MANAGEMENT DEVELOPMENT AND COMPENSATION COMMITTEE ON EXECUTIVE      COMPENSATION **

**Committee      Responsibilities **

**Compensation      Philosophy **

*Emphasis      is on alignment between pay and performance.*

*Stock      ownership is emphasized.*

*Compensation      programs will be designed to reflect the competitive market that will support      the attraction and retention of talent.*

**Elements      of Executive Compensation **

***Base      Salary***

----

*.      *

***Annual      Incentive***

***Long-Term      Incentive***

----

***Perquisites***

----

**Stock      Ownership Objectives **

**CEO      Compensation and Performance **

**Deductibility      of Executive Compensation**

**Conclusion      **

*      ex      officio *

----

**PERFORMANCE      GRAPH **

| Company                Name/Index            | Sep-01  | Sep-02 | Sep-03  | Sep-04  | Sep-05  | Sep-06  |
|----------------------------------------------|---------|--------|---------|---------|---------|---------|
| Peoples                Energy Corp           | $100.00 | $89.61 | $116.07 | $122.92 | $122.26 | $133.90 |
| S                & P 500 Index           | $100.00 | $79.52 | $98.91  | $112.63 | $126.42 | $140.09 |
| S                & P 500 Utilities Index | $100.00 | $64.59 | $79.23  | $94.70  | $131.27 | $137.52 |
| Peer                Group                    | $100.00 | $97.98 | $122.90 | $144.99 | $172.41 | $187.09 |

----

**ITEM      12. Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters**

**EQUITY      COMPENSATION PLAN INFORMATION**

|      Plan                Category                    | (A)   Number                of Securities to be Issued                Upon Exercise of Outstanding                Options, Warrants                and Rights | (B)   Weighted-Average                Exercise                Price of Outstanding                Options, Warrants                and Rights | (C) Number                of Securities Remaining                Available for Future                Issuance under Equity Compensation                Plans (Excluding                Securities Reflected                in Column A) |
|-------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          |                                                                                                                                                                         |                                                                                                                                                         |                                                                                                                                                                                                                                         |
| Equity                compensation plans approved by security holders         | 563,006                (1) (2)                                                                                                                                               | $38.91                                                                                                                                                       | 645,495                (3)                                                                                                                                                                                                                   |
| Equity                compensation plans not approved by security holders (4) | 107,632                (4)                                                                                                                                                   | $36.89                                                                                                                                                       | 82,468                                                                                                                                                                                                                                       |
| Total                                                                         | 670,638                                                                                                                                                                      | --                                                                                                                                                           | 727,963                                                                                                                                                                                                                                      |

| (1)   | Excludes                25,600 SARs outstanding and exercisable under the Company's LTIC                Plan. The                grant of a SAR enables the recipient to receive, for each SAR granted,                cash in an amount equal to the excess of the fair market value of                one                share of Company common stock on the date the SAR is exercised over                the                fair market value of one share on the date the SAR was granted. No                security is issued upon the exercise of a                SAR. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes                94,106 shares equivalent held for the account of participants in                the                Company's DDC Plan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes                594,138 shares remaining available for issuance under the Company's                2004                Incentive Compensation Plan for awards of performance shares, restricted                stock and RSUs, of which no more than 244,138 shares may be used                for                awards of restricted stock or RSUs that vest solely upon continued                service. Includes 51,357 share equivalents remaining available for                future                issuance under the DDC Plan. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes                41,632 deferred shares held for the account of participants in the                Company's DSOP. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

----

**Security      Ownership of Management**

| **Directors                & Officers**                | **Shares Beneficially****Owned                as of****December                31, 2006 (1)**                                    | **Percent****of****Class**                                 |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
| Keith                E. Bailey                             | 7,614 (3)                                                       | *                                                          |
| James                R. Boris                              | 37,028 (2) (3) (5)                                                                                           | *                                                          |
| William                J. Brodsky                          | 31,372 (2) (3) (5)                                                                                           | *                                                          |
| Pastora                San Juan Cafferty                   | 17,477 (3) (5)                                                                           | *                                                          |
| Diana                S. Ferguson                           | 6,077 (2) (3)                                                                            | *                                                          |
| John                W. Higgins                             | 5,259 (3)                                                  | *                                                          |
| Dipak                C. Jain                               | 14,731 (2) (3) (5)                                                                                      | *                                                          |
| Michael                E. Lavin                            | 6,464 (3)                                                  | *                                                          |
| Homer                J. Livingston, Jr.                    | 27,822 (2) (3) (5)                                                                                      | *                                                          |
| William                E. Morrow                           | 42,815 (4) (5)                                                                      | *                                                          |
| Steven                W. Nance                             | 25,482 (4) (5)                                                                      | *                                                          |
| Thomas                A. Nardi                             | 38,421 (4) (5)                                                                      | *                                                          |
| Thomas                M. Patrick                           | 189,740 (4) (5)                                                                     | *                                                          |
| Desiree                G. Rogers                           | 35,498 (4) (5)                                                                      | *                                                          |
| Theodore                R. Tetzlaff                        | 0                                      | *                                                          |
| Richard                P. Toft                             | 26,778 (2) (3) (5)                                                                                      | *                                                          |
| Directors                and executive officers as a group | 583,525 (2) (3) (4) (5)                                                                                                     |                        1.51% |

| (1)                  | Unless                otherwise indicated, each individual has sole voting and investment                power                with respect to the shares of common stock attributed to him or her                in the                table. |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)                  | Includes                the following number of shares to which the following are prospectively                entitled pursuant to the Directors Deferred Compensation Plan of                the                Company: Messrs. Boris, 21,664 and Brodsky, 15,408;                Ms. Ferguson, 3,963; Messrs. Jain, 6,967; Livingston, 13,358 and                Toft, 12,114. |
|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)                  | Includes                the following number of shares to which the following are prospectively                entitled pursuant to the Directors Stock and Option Plan of the Company:                Messrs. Bailey, 2,114; Boris, 4,465 and Brodsky, 4,465;                Mrs. Cafferty, 4,465; Ms. Ferguson, 2,114; Messrs. Higgins,                3,260; Jain, 4,465; Lavin, 4,465; Livingston, 4,465 and Toft, 4,465. |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)                  | Includes                shares of restricted stock awarded under the Long-Term Incentive                Compensation Plan of the Company, the restrictions on which had not                lapsed                as of December 31, 2006, as follows: Messrs. Morrow, 7,365; Nance,                4,200; Nardi, 7,150 and Patrick, 22,855; Ms. Rogers, 6,075 and all                directors and executive officers as a group, 60,835. Owners of shares                of                restricted stock have the right to vote such shares and to receive                dividends thereon, but have no investment power with respect to such                shares until the restrictions thereon lapse. |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes                shares that the following have a right to acquire within 60 days                following December 31, 2006, through the exercise of options granted                under                the Directors Stock and Option Plan, in the case of nonemployee directors,                or the Long-Term Incentive Compensation Plan of the Company, in the                case                of executive officers: Messrs. Boris, 9,000 and Brodsky, 9,000;                Mrs. Cafferty, 9,000; Messrs. Jain, 3,000; Livingston, 9,000;                Toft, 9,000; Morrow, 21,000; Nance, 12,100; Nardi, 18,600 and Patrick,                112,400; Ms. Rogers, 16,800 and all directors and executive officers                of the Company as a group, 264,000. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      13. **
**Certain      Relationships and Related Transactions**

**ITEM      14. Principal Accounting Fees and Services**

|                              |   |   | **2005**                                     |   |        | **2006**                                     |        |
|-----------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|
|                              |   |        | **Deloitte & Touche LLP** |        |        | **Deloitte                & Touche LLP** |        |
| Audit                Fees         |        | $      | 1,787,599                                    |   | $      | 1,606,748                                    |   |
| Audit-Related                Fees |        |   | --                                           |   |   | 262,750                                      |   |
| Tax                Fees           |        |   | 98,731                                       |   |   | 96,602                                       |   |
| All                Other Fees     |        |   | --                                           |   |   | --                                           |   |
|                              |        |   |                                              |   |   |                                         |   |
| Total                             |        | $      | 1,886,330                                    |        | $      | 1,966,100                                    |   |

*Audit      Fees.*
** **

*Audit-Related      Fees.*

*Tax      Fees.*

*All      Other Fees.*

----

*www.peoplesenergy.com*

----

**SIGNATURES**

|                                                 |   | PEOPLES                ENERGY CORPORATION                                                                    |
|------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
|                                                 |   |                                                                                                         |
| Date:                January                29, 2007 |   | By:                /s/                THOMAS A. NARDI                                                        |
|                                                 |   | Thomas                A. Nardi                                                                               |
|                                                 |   | Executive                Vice President, Chief Financial Officer(Principal                Financial Officer) |

|                                                 |   | THE                PEOPLES GAS LIGHT AND COKE COMPANY                                                                                    |
|------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |   |                                                                                                                                     |
| Date:                January                29, 2007 |   | By:                /s/                THOMAS A. NARDI                                                                                    |
|                                                 |   | Thomas                A. Nardi                                                                                                           |
|                                                 |   | Executive                Vice President, Chief Financial Officerand                Director (Principal Financial                Officer) |

|                                                 |   | NORTH                SHORE GAS COMPANY                                                                                                   |
|------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |   |                                                                                                                                     |
| Date:                January                29, 2007 |   | By:                /s/                THOMAS A. NARDI                                                                                    |
|                                                 |   | Thomas                A. Nardi                                                                                                           |
|                                                 |   | Executive                Vice President, Chief Financial Officerand                Director (Principal Financial                Officer) |

----

**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

| (a) | The                exhibits listed below are filed herewith and made a part hereof,                and are                incorporated herein by reference: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ExhibitNumber |  Description                of Document                                                                                                                                                                                                                                                                                                          |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 10(a)*        | Employment                and Retention Agreement dated August 31, 2006 between the Company                and                Thomas M. Patrick.                                                                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 10(b)*        | Seasonal                Credit Agreement dated as of October 20, 2006 between the Company                and ABN                AMRO Bank N.V.                                                                                                                                                                                                        |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 10(c)*        | Seasonal                Credit Agreement dated as of October 20, 2006 between the Company                and Bank                of America, N.A.                                                                                                                                                                                                     |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 10(d)*        | Seasonal                Credit Agreement dated as of October 20, 2006 between the Company                and                JPMorgan Chase Bank.                                                                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 10(e)*        | Amendment                Number One to the Amended and Restated Trust under the Company's                Directors                Deferred Compensation Plan, Directors Stock and Option Plan, Executive                Deferred Compensation Plan and Supplemental Retirement Benefit Plan,                dated                as of July 24, 2006. |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 12*           | Statement                re: Computation of Ratio of Earnings to Fixed charges for the Company,                Peoples Gas and North Shore Gas.                                                                                                                                                                                                       |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 21*           | Subsidiaries                of the Company.                                                                                                                                                                                                                                                                                                           |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 23(a)*        | Consent                of Deloitte & Touche LLP to incorporate by reference in Registration                Statement File Nos. 333-84594, 333-70702, 2-82760, 33-6369, 33-63193,                333-62070, 333-113204, 333-116192, and 333-17701.                                                                                                 |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 23(b)*        | Consent                of Netherland, Sewell and Associates, Inc. to incorporate by reference                in                Registration Statement File Nos. 333-84594, 333-70702, 2-82760, 33-6369,                033-63193, 333-62070, 333-113204, 333-116192, and                333-17701.                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 23(c)*        | Consent                of Miller and Lents, Ltd. to incorporate by reference in Registration                Statement File Nos. 333-84594, 333-70702, 2-82760, 33-6369, 033-63193,                333-62070, 333-113204, 333-116192, and 333-17701.                                                                                                   |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 23(d)*        | Prator                Bett, L.L.C. consent to incorporate by reference in Registration                Statement                File Nos. 333-84594, 333-70702, 2-82760, 33-6369, 033-63193, 333-62070,                333-113204, 333-116192, and 333-17701.                                                                                          |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 23(e)**       | Consent                of Deloitte & Touche LLP (with respect to Elwood Energy                LLC).                                                                                                                                                                                                                                               |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 31(a)***      | Certification                of Thomas M. Patrick on behalf of the Company, Peoples Gas and North                Shore                Gas pursuant to 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a), as                adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002.                                |
|          |                                                                                                                                                                                                                                                                                                                                                  |
| 31(b)***      | Certification                of Thomas A. Nardi on behalf of the Company, Peoples Gas and North                Shore                Gas pursuant to 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a), as                adopted                pursuant to Section 302 of the Sarbanes-Oxley Act of                2002.                                  |
|          |                                                                                                                                                                                                                                                                                                                                                  |

----

**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

| ExhibitNumber |  Description                of Document                                                                                                                                                                                                                                      |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                              |
| 32(a)***      | Certification                of Thomas M. Patrick on behalf of the Company, Peoples Gas and North                Shore                Gas pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906                of the Sarbanes-Oxley Act of 2002. |
|          |                                                                                                                                                                                                                                                                              |
| 32(b)***      | Certification                of Thomas A. Nardi on behalf of the Company, Peoples Gas and North                Shore                Gas pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906                of the Sarbanes-Oxley Act of 2002.   |
|          |                                                                                                                                                                                                                                                                              |
| 99*           | Form                11-K for the Employee Stock Purchase Plan of the Company for the                fiscal                year ended September 30, 2006.                                                                                                                          |
|          |                                                                                                                                                                                                                                                                              |
| 99.1**        | Consolidated                Financial Statements of Elwood Energy LLC for the year ended September                30,                2006.                                                                                                                                        |

| * | Previously                filed with the Company’s Annual Report on Form 10-K filed with the                Securities and Exchange Commission on December 14,                2006. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Previously                filed with the Company’s Form 10-K/A Amendment No. 1 to the Annual Report                filed with the Securities and Exchange Commission on December 29,                2006. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Filed                herewith as part of this Form 10-K/A Amendment No.                2. |
|-----|-------------------------------------------------------------------------------------------|

----

**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

|   | ExhibitNumber                                                                                                                                                                                                                                                                                                                                                                                                                        |  Description                of Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (b)    | Exhibits                listed below have been filed heretofore with the SEC pursuant to                the                Securities Act of 1933, as amended, and/or the Securities Exchange                Act of                1934, as amended, and are incorporated herein by reference. The file                number and exhibit number of each such exhibit are stated in the                description of such exhibits. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(a)                                                                                                                                                                                                                                                                                                                                                                                                                                 | Articles                of Incorporation of the Company, as amended on March 3, 1995 (The                Company—Form 10-K for the fiscal year ended September 30, 1995, Exhibit                3(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(b)                                                                                                                                                                                                                                                                                                                                                                                                                                 | Articles                of Incorporation of Peoples Gas, as amended on April 24, 1995 (Peoples                Gas—Form 10-K for fiscal year ended 1995, Exhibit                3(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(c)                                                                                                                                                                                                                                                                                                                                                                                                                                 | Articles                of Incorporation of North Shore Gas, as amended on April 24, 1995                (North                Shore Gas—Form 10-K for fiscal year ended 1995, Exhibit                3(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(d)                                                                                                                                                                                                                                                                                                                                                                                                                                 | By-Laws                of the Company, as amended December 2, 2005 (The Company—Form 10-Q for the                quarter ended March 31, 2006, Exhibit 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(e)                                                                                                                                                                                                                                                                                                                                                                                                                                 | By-Laws                of Peoples Gas, as amended August 10, 2004, (Peoples Gas—Form 10-K for the                fiscal year ended 2004, Exhibit 3(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3(f)                                                                                                                                                                                                                                                                                                                                                                                                                                 | By-Laws                of North Shore Gas, as amended August 10, 2004, (North Shore Gas—Form 10-K                for the fiscal year ended 2004, Exhibit 3(d)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 4(a)                                                                                                                                                                                                                                                                                                                                                                                                                                 | Indenture                dated as of January 18, 2001, from the Company to Bank One Trust                Company                National Association (The Company—Form 10-Q for the quarter ended March                31, 2001, Exhibit 4(a)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 4(b)                                                                                                                                                                                                                                                                                                                                                                                                                                 | The                Peoples Gas Light and Coke Company First and Refunding Mortgage,                dated                January 2, 1926, from Chicago By-Product Coke Company to Illinois                Merchants Trust Company, Trustee, assumed by The Peoples Gas Light                and                Coke Company (Peoples Gas) by Indenture dated March 1, 1928 (Peoples                Gas—May 17, 1935, Exhibit B-6a, Exhibit B-6b A-2 File No. 2-2151, 1936);                Supplemental Indenture dated as of May 20, 1936, (Peoples Gas—Form                8-K for the year 1936, Exhibit B-6f); Supplemental Indenture dated                as of                March 10, 1950 (Peoples Gas—Form 8-K for the month of March 1950, Exhibit                B-6i); Supplemental Indenture dated as of June 1, 1951 (Peoples Gas—File                No. 2-8989, Post-Effective, Exhibit 7-4(b)); Supplemental Indenture                dated                as of August 15, 1967 (Peoples Gas—File No. 2-26983, Post-Effective,                Exhibit 2-4); Supplemental Indenture dated as of                September 15, 1970 (Peoples Gas—File No. 2-38168, Post-Effective                Exhibit 2-2); Supplemental Indenture dated June 1, 1995 (Peoples                Gas—Form                10-K for fiscal year ended September 30, 1995); Supplemental Indenture,                First and Refunding Mortgage Multi-Modal Bonds, Series HH of Peoples                Gas,                effective March 1, 2000 (Peoples Gas—Form 10-K for fiscal year ended                September 30, 2000, Exhibit 4(b)); Supplemental Indenture dated as                of                February 1, 2003, First and Refunding Mortgage 5% Bonds, Series KK                (The                Company and Peoples Gas—Form 10-Q for the quarter ended March 31, 2003,                Exhibit 4(a)); Supplemental Indenture dated as of February 1, 2003,                First                and Refunding Mortgage Multi-Modal Bonds, Series LL (The Company                and                Peoples Gas—Form 10-Q for the quarter ended March 31, 2003, Exhibit 4(b));                Supplemental Indenture dated as of |

----

**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

|   | ExhibitNumber                     |  Description                of Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                              | February                15, 2003, First and Refunding Mortgage 4.00% Bonds, Series MM-1 and                Series                MM-2 (The Company and Peoples Gas—Form 10-Q for the quarter ended March                31, 2003, Exhibit 4(c)); Supplemental Indenture dated as of April                15,                2003, First and Refunding Mortgage 4.625% Bonds, Series NN-1 and                Series                NN-2 (The Company and Peoples Gas—Form 10-Q for the quarter ended March                31, 2003, Exhibit 4(e)); Supplemental Indenture dated as of October                1,                2003, First and Refunding Mortgage Bonds, Series OO (The Company                and                Peoples Gas—Form 10-Q for the quarter ended December 31, 2003, Exhibit                4(a)); Peoples Gas Supplemental Indenture dated as of October 1,                2003,                First and Refunding Mortgage Bonds, Series PP (The Company and Peoples                Gas—Form 10-Q for the quarter ended December 31, 2003, Exhibit 4(b));                Peoples Gas Supplemental Indenture dated as of November 1, 2003,                First and                Refunding Mortgage Multi-Modal Bonds, Series QQ (The Company and                Peoples                Gas—Form 10-Q for the quarter ended December 31, 2003, Exhibit 4(c));                Peoples Gas Supplemental Indenture dated as of January 1, 2005, First                and                Refunding Mortgage Bonds, Series RR (The Company and Peoples Gas—Form 10-Q                for the quarter ended December 31, 2004, Exhibit 4(b)); Loan Agreement                between Peoples Gas and Illinois Development Finance Authority dated                October 1, 2003, Gas Supply Refunding Revenue Bonds, Series 2003C                (The                Company and Peoples Gas—Form 10-Q for the quarter ended December 31, 2003,                Exhibit 4(d)); Loan Agreement between Peoples Gas and Illinois Development                Finance Authority dated October 1, 2003, Gas Supply Refunding Revenue                Bonds, Series 2003D (The Company and Peoples Gas—Form 10-Q for the quarter                ended December 31, 2003, Exhibit 4(e)); Loan Agreement between Peoples                Gas                and Illinois Development Finance Authority dated November 1, 2003,                Gas                Supply Refunding Revenue Bonds, Series 2003E (The Company and Peoples                Gas—Form 10-Q for the quarter ended December 31, 2003, Exhibit 4(f));                Loan                Agreement between Peoples Gas and Illinois Finance Authority dated                as of                January 1, 2005 (The Company and Peoples Gas—Form 10-Q for the quarter                ended December 31, 2004, Exhibit 4(a)). |
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | 4(c)                              | North                Shore Gas Company (North Shore) Indenture, dated as of                April 1, 1955, from North Shore to Continental Bank, National                Association, as Trustee; Third Supplemental Indenture, dated as of                December 20, 1963 (North Shore—File No. 2-35965, Exhibit 4-1); Fourth                Supplemental Indenture, dated as of May 1 1964 (North Shore—File No.                2-35965, Exhibit 4-1); Fifth Supplemental Indenture dated as of                February 1, 1970 (North Shore—File No. 2-35965, Exhibit 4-2);                Ninth Supplemental Indenture dated as of December 1, 1987 (North                Shore—Form 10-K for the fiscal year ended September 30, 1987, Exhibit 4);                Thirteenth Supplemental Indenture dated December 1, 1998 (North Shore                Gas—Form 10-Q for the quarter ended March 31, 1999, Exhibit 4); Fourteenth                Supplemental Indenture dated as of April 15, 2003, First Mortgage                4.625%                Bonds, Series N-1 and Series N-2 (The Company and North Shore Gas—Form                10-Q for the quarter ended March 31, 2003, Exhibit                4(g)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                   10(f) | Lease                dated October 20, 1993, between Prudential Plaza Associates, as                Landlord, and Peoples Gas, as Tenant (Peoples Gas—Form 10-Q for the                quarterly period ended December 31, 1993, Exhibit 10); Peoples                Gas fourth Amendment to Lease (for headquarters office space) between                SIP                North Stetson Venture, LLC and Peoples Gas dated August 13, 2003                (Peoples                Gas—Form 10-K for fiscal year ended September 30, 2003, Exhibit                10(h)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

|   | ExhibitNumber |  Description                of Document                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(g)         | Credit                Agreement dated as of June 13, 2006, by and among Peoples Gas, the                financial institutions party hereto, and Bank of America, N.A., JPMorgan                Chase Bank, N.A., ABN AMRO Incorporated, US Bank National Association,                and                The Bank of Tokyo-Mitsubishi, Ltd. Chicago Branch, as agents (The                Company—Form 10-Q for the quarter ended June 30, 2006, Exhibit                10(a). |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(h)         | Insurance                Agreement between Peoples Gas and Ambac dated as of January 1, 2005                (The                Company and Peoples Gas—Form 10-Q for the quarter ended December 31, 2004,                Exhibit 10(b)).                                                                                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(i)         | Employee                Stock Purchase Plan, as amended, dated August 6, 1997 (The Company—Form                10-K for the fiscal year ended September 30, 1997, Exhibit                3(d)).                                                                                                                                                                                                                                                                                |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(j)         | Executive                Deferred Compensation Plan, amended as of December 4, 2002 (The                Company—Form 10-Q for the quarter ended December 31, 2002, Exhibit                10(c)).                                                                                                                                                                                                                                                                              |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(k)         | Directors                Stock and Option Plan as amended December 4, 2002 (The Company—Form 10-Q                for the quarterly period ended December 31, 2002, Exhibit                10(g)).                                                                                                                                                                                                                                                                              |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(l)         | Amended                and Restated Trust under the Company's Directors Deferred Compensation                Plan, Directors Stock and Option Plan, Executive Deferred Compensation                Plan and Supplemental Retirement Benefit Plan, dated as of August                13, 2003                (The Company—Form 10-K for fiscal year ended September 30, 2003, Exhibit                10(a)).                                                                    |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(m)         | Directors                Deferred Compensation Plan, as amended, dated April 7, 2004 (The                Company—Form 10-Q for the quarter ended June 30, 2004, Exhibit                10(a)).                                                                                                                                                                                                                                                                                 |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(n)         | The                Company's 2004 Incentive Compensation Plan, effective February 27,                2004                (The Company—Form 10-Q for the quarter ended March 31, 2004, Exhibit                10(a)).                                                                                                                                                                                                                                                           |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(o)         | The                Company’s Long-Term Incentive Compensation Plan, as amended December 4,                2002 (The Company—Form 10-Q for the quarter ended December 31, 2002,                Exhibit 10(d)).                                                                                                                                                                                                                                                            |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(p)         | Percentage                Interest Award granted to Steven W. Nance, dated December 17, 2001                (The                Company—Form 10-K for fiscal year ended September 30, 2003, Exhibit                10(b)).                                                                                                                                                                                                                                                     |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 10(q)         | Equity                Interest Award granted to Steven W. Nance, dated December 17, 2001                (The                Company—Form 10-K for fiscal year ended September 30, 2003, Exhibit                10(c)).                                                                                                                                                                                                                                                         |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

**Peoples      Energy Corporation and Subsidiary Companies**

**EXHIBIT      INDEX**

|   | ExhibitNumber |  Description                of Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(r)         | Severance                Agreement between the Company and Desiree G. Rogers dated as of April                22,                2005 (The Company—Form 10-Q for the quarter ended June 30, 2005, Exhibit                10(a)); Severance Agreement between the Company and Steven W. Nance                dated                as of June 2, 2004 (The Company—Form 10-K for fiscal year ended September                30, 2004, Exhibit 10(e)); Severance Agreement between the Company                and                William E. Morrow dated as of June 2, 2004 (The Company—Form 10-K for                fiscal year ended September 30, 2004, Exhibit 10(f)); Severance Agreement                between the Company and Thomas A. Nardi dated as of June 2, 2004                (The                Company—Form 10-K for fiscal year ended September 30, 2004, Exhibit                10(g)). |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(s)         | Retainer                Agreement between the Company and Theodore R. Tetzlaff dated as of                June                30, 2005 (The Company—Form 10-Q for the quarter ended June 30, 2005,                Exhibit 10(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(t)         | Summary                Sheet for Officer Perquisites (The Company—Form 10-K for fiscal year ended                September 30, 2005, Exhibit 10(b)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(u)         | Order                of the Illinois Commerce Commission in Docket No. 01-0706 for North                Shore                Gas (the Company (The Company—Form 10-Q for the quarter ended March 31,                2006, Exhibit 10.1).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(v)         | Order                of the Illinois Commerce Commission in Docket No. 02-0726 for North                Shore                Gas (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.2).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(w)         | Order                of the Illinois Commerce Commission in Docket No. 02-0727 for Peoples                Gas                (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(x)         | Order                of the Illinois Commerce Commission in Docket No. 03-0704 for North                Shore                Gas (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.4).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(y)         | Order                of the Illinois Commerce Commission in Docket No. 03-0705 for Peoples                Gas                (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.5).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(z)         | Order                of the Illinois Commerce Commission in Docket No. 04-0682 for North                Shore                Gas (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.6).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | 10(aa)        | Order                of the Illinois Commerce Commission in Docket No. 04-0683 for Peoples                Gas                (The Company—Form 10-Q for the quarter ended March 31, 2006, Exhibit                10.7).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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