Exhibit 10(e)
                                                                           
                                                        Contract No. 113418

             NATURAL GAS PIPELINE COMPANY OF AMERICA (Natural)
     TRANSPORTATION RATE SCHEDULE FTS AGREEMENT DATED January 15, 1998
           UNDER SUBPART G OF PART 284 OF THE FERC'S REGULATIONS

1.   SHIPPER is: THE PEOPLES GAS LIGHT AND COKE COMPANY, a LOCAL
     DISTRIBUTION COMPANY.

2.   (a)  MDQ totals: 105,071 MMBTU per day.

     (b)  Service option selected (check any or all):
            [  ] LN          [  ] SW          [  ] NB

3.   TERM: Service under FTS Agreement No. 113418 shall commence on the
     next calendar day following the termination of Peoples Gas FTS
     Agreement No. 110381 dated December 1, 1995, and shall continue
     through the last day of the month in which twelve complete months of
     service have been provided under the FTS Agreement.

4.   Service will be ON BEHALF OF: [X ] Shipper or [  ] Other:.

5.   The  ULTIMATE  END  USERS  are  customers  within  any  state  in  the
     continental U.S.; or (specify state)

     __________________________________________________________________

6.   [  ] This Agreement supersedes and cancels a __________ Agreement
     dated  ______

     [   ]  Capacity rights for this Agreement were released from Natural's
     Transportation Rate Schedule Agreement (KT #) dated and are subject to
     any recall/return provisions in Natural's Capacity Release Package  ID
     #.

     [X] Service and reservation charges commence the latter of:
             (a) December 01, 1998, and
          (b) the date capacity to provide the service hereunder is
              available on Natural's System.

     [  ] Other: ____________________________________

7.   SHIPPER'S ADDRESSES              NATURAL'S ADDRESSES

                          General Correspondence:
THE PEOPLES GAS LIGHT AND COKE COMPANY   NATURAL GAS PIPELINE COMPANY OF
AMERICA
WILLIAM MORROW                       ATTENTION: GAS TRANSPORTATION SERVICES
130 E. RANDOLPH ST- 23RD FLOOR       3200 SOUTHWEST FREEWAY   77027-7523
CHICAGO, IL   60601-6207             P.O. BOX 283   77001-0283
                                     HOUSTON, TEXAS

             Statements/Invoices/Accounting Related Materials:
THE PEOPLES GAS LIGHT AND COKE COMPANY  NATURAL GAS PIPELINE COMPANY OF
AMERICA
PATRICIA GARCIA                       ATTENTION: ACCOUNT SERVICES
130 E. RANDOLPH ST - 23RD FLOOR       701 EAST 22ND STREET
CHICAGO, IL   60601-6207              LOMBARD, ILLINOIS   60148

                                    Payments:
                                    NATURAL GAS PIPELINE COMPANY OF AMERICA
                                    P.O. BOX 2910
                                    CAROL STREAM, ILLINOIS   60132-2910

                                    FOR WIRE TRANSFER OR ACH:
                                    DEPOSITORY INSTITUTION: CITIBANK N.A.
                                    ABA ROUTING#:   021000089
                                    ACCOUNT #:   4067-6195


8.   The above stated Rate Schedule, as revised from time to time, controls
     this Agreement and is incorporated herein. The attached Exhibits A, B, and
     C (for firm service only) are a part of this Agreement. NATURAL AND SHIPPER
     ACKNOWLEDGE THAT THIS AGREEMENT IS SUBJECT TO THE PROVISIONS OF NATURAL'S
     FERC GAS TARIFF AND APPLICABLE FEDERAL LAW. TO THE EXTENT THAT STATE LAW IS
     APPLICABLE, NATURAL AND SHIPPER EXPRESSLY AGREE THAT THE LAWS OF THE STATE
     OF ILLINOIS SHALL GOVERN THE VALIDITY, CONSTRUCTION, INTERPRETATION AND
     EFFECT OF THIS CONTRACT, EXCLUDING, HOWEVER, ANY CONFLICT OF LAWS RULE
     WHICH WOULD APPLY THE LAW OF ANOTHER STATE. This Agreement states the
     entire agreement between the parties and no waiver, representation, or
     agreement shall affect this Agreement unless it is in writing. Shipper
     shall provide the actual end user purchaser name(s) to Natural if Natural
     must provide them to FERC.

AGREED TO BY:
NATURAL GAS PIPELINE COMPANY OF AMERICA   THE PEOPLES GAS LIGHT AND COKE
COMPANY
"Natural"                                    "Shipper"

By:   /s/ Stephen G. Weiman                  By:   /s/ William E. Morrow

Name:     Stephen G. Weiman                  Name:      William E. Morrow

Title:    Senior Vice President              Title:     Vice President







113418

                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                 EXHIBIT A
                          DATED: January 15, 1998
                     EFFECTIVE DATE: December 01, 1998

COMPANY: THE PEOPLES GAS LIGHT AND COKE COMPANY
CONTRACT: 113418

RECEIPT POINT/S

                             County/Parish          PIN              MDQ
 Name/Location                    Area     State    No.    Zone   (MMBtu/d)


PRIMARY RECEIPT POINT/S

1. NGPL/TPC GAGE                  GAGE       NE     2900    07    105,071
   INTERCONNECT WITH TRAILBLAZER PIPELINE
   IN SEC. 15-T4N-R6E, GAGE COUNTY,
   NEBRASKA.

SECONDARY RECEIPT POINT/S

  All  secondary receipt point, and the related priorities and volumes,  as
provided under the Tariff provisions governing this Agreement.

RECEIPT PRESSURE, ASSUMED ATMOSPHERIC PRESSURE

  Natural  gas to be delivered to Natural at the Receipt Point/s  shall  be
at a delivery pressure sufficient to enter Natural's pipeline facilities at
the  pressure maintained from time to time, but Shipper shall  not  deliver
gas  at  a  pressure in excess of the Maximum Allowable Operating  Pressure
(MAOP)  stated  for each Receipt Point. The measuring party  shall  use  or
cause  to  be  used  an assumed atmospheric pressure corresponding  to  the
elevation at such Receipt Point/s.

RATES

  Except  as  provided to the contrary in any written agreement(s)  between
the parties in effect during the term hereof, Shipper shall pay Natural the
maximum  rate  and  all  other lawful charges  as  specified  in  Natural's
applicable rate schedule.

FUEL GAS AND GAS LOST AND UNACCOUNTED FOR PERCENTAGE (%)

  Shipper will be assessed the applicable percentage for Fuel Gas and Gas
Lost and Unaccounted For.

TRANSPORTATION OF LIQUIDS

  Transportation  of  liquids may occur at permitted points  identified  in
Natural's current Catalog of Receipt and Delivery Points, but only  if  the
parties execute a separate liquids agreement.






                                    A-1
                                 EXHIBIT B
                          DATED January 15, 1998
                     EFFECTIVE DATE: December 01, 1998

COMPANY: THE PEOPLES GAS LIGHT AND COKE COMPANY
CONTRACT: 113418

DELIVERY POINT/S
                          County/Parish         PIN               MDQ
 Name/Location                 Area     State   No.     Zone   (MMBtu/d)


PRIMARY DELIVERY POINT/S

1. NO SHORE/NGPL GRAYSLAKE LAKELAKE       IL     1       06      50,000
   INTERCONNECT WITH NORTH SHORE GAS
   COMPANY LOCATED IN SEC. 12-T44N-R10E,
   LAKE COUNTY, ILLINOIS.

2. PGLC/NGPL OAKTON STREET COOKCOOK       IL    4174     06      55,071
   INTERCONNECT WITH THE PEOPLES GAS
   LIGHT AND COKE COMPANY ON TRANSPORTER'S
   HOWARD STREET LINE IN SEC. 26-T41N-R13E,
   COOK COUNTY, ILLINOIS.


SECONDARY DELIVERY POINT/S

  All  secondary delivery points, and the related priorities  and  volumes,
as provided under the Tariff provisions governing this Agreement.

DELIVERY PRESSURE, ASSUMED ATMOSPHERIC PRESSURE

  Natural  gas  to  be delivered by Natural to Shipper,  or  for  Shipper's
account,  at  the  Delivery Point/s shall be at the pressure  available  in
Natural's pipeline facilities from time to time. The measuring party  shall
use  or  cause to be used an assumed atmospheric pressure corresponding  to
the elevation at such Delivery Point/s.





                                    B-1

                                 EXHIBIT C
                          DATED January 15, 1998
                     EFFECTIVE DATE: December 01, 1998

COMPANY: THE PEOPLES GAS LIGHT AND COKE COMPANY
CONTRACT: 113418

  Pursuant   to   Natural's  tariff,  an  MDQ  exists  for   each   primary
transportation path segment and direction under the Agreement. Such MDQ  is
the  maximum daily quantity of gas which Natural is obligated to  transport
on a firm basis along a primary transportation path segment.

  A  primary  transportation path segment is the  path  between  a  primary
receipt, delivery, or node point and the next primary receipt, delivery, or
node  point.  A node point is the point of interconnection between  two  or
more of Natural's pipeline facilities.

  A  segment  is  a  section of Natural's pipeline system designated  by  a
segment number whereby the Shipper under the terms of their agreement based
on  the  points  within the segment identified on Exhibit C has  throughput
capacity rights.

  The  segment  numbers listed on Exhibit C reflect this  Agreement's  path
corresponding to Natural's most recent Pipeline System Map which identifies
segments and their corresponding numbers. All information provided in  this
Exhibit  C  is  subject  to  the actual terms and conditions  of  Natural's
Tariff.





                                    C-1
                                     
                                     
                                 EXHIBIT C
                          DATED January 15, 1998
                     EFFECTIVE DATE: December 01, 1998

COMPANY: THE PEOPLES GAS LIGHT AND COKE COMPANY
CONTRACT: 113418



Segment     Upstream    Forward/Backward   Flow Through
 Number     Segment    Haul (Contractual)    Capacity

   12          0              F               0

   13         12              F               105,071

   14         13              F               105,071

   29         14              F               50,000

   30         14              F               55,071

   37         29              F               50,000

   39         37              F               50,000