**EXHIBIT        3(b)   **

**BY-LAWS**

**OF**

**PEOPLES        ENERGY CORPORATION**

**AMENDED        December 6, 2006**

----

| ARTICLE                  I    | -      | Offices                                                                 |
|-------------------------------|--------|-------------------------------------------------------------------------|
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  II   | -      | Meetings                  of Shareholders                               |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  III  | -      | Directors                  and Committees                               |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  IV   | -      | Officers                                                                |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  V    | -      | Indemnification                  of Directors,                          |
|                          |   |     Officers,                  Employees and Agents |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  VI   | -      | Certificates                  of Stock and Their                        |
|                          |   |     Transfer                                        |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  VII  | -      | Miscellaneous                  (Contracts)                              |
|                          |   |                                                                    |
|                          |   |                                                                    |
| ARTICLE                  VIII | -      | Amendment                  or Repeal of By-Laws                         |

----

|   |   | PAGE |
|--------|--------|------|

|   | Amendment                  of By-Laws                 | 19 |
|--------|-------------------------------------------------------|----|
|   | Appointment                  of Officers              | 11 |
|   | Assistant                  Controller, Duties of      | 14 |
|   | Assistant                  General Counsel, Duties of | 14 |
|   | Assistant                  Secretary, Duties of       | 14 |
|   | Assistant                  Treasurer, Duties of       | 14 |
|   | Assistant                  Vice President, Duties of  | 13 |

|   | Board                  of Directors | 5 |
|--------|-------------------------------------|---|

|   | Certificates                  of Stock and Their Transfer | 16     |
|--------|-----------------------------------------------------------|--------|
|   | Chairman                  of the Board, Duties of         | 12     |
|   | Chairman                  of the Executive Committee      | 9      |
|   | Committees                                                |   |
|   |    Executive                               | 9      |
|   |    Other                                   | 9      |
|   | Controller,                  Duties of                    | 14     |
|   | Contracts,                  Execution of                  | 18     |

|   | Directors                  and Committees | 5 |
|--------|-------------------------------------------|---|

|   | Election                  of Directors | 5  |
|--------|----------------------------------------|----|
|   | Election                  of Officers  | 11 |
|   | Executive                  Committee   | 9  |

|   | Fees                  and Compensation | 9 |
|--------|----------------------------------------|---|

----

|   |   | PAGE |
|--------|--------|------|

|   | General                  Counsel, Duties of | 14 |
|--------|---------------------------------------------|----|

|   | Indemnification                  of Directors, Officers, Employees |   |
|--------|--------------------------------------------------------------------|--------|
|   |    And                  Agents                      | 15     |

|   | Lead                  Director, Duties of | 10 |
|--------|-------------------------------------------|----|

|   | Meetings                                                                    |   |
|--------|-----------------------------------------------------------------------------|--------|
|   |    Directors                                                 | 7      |
|   |       Action                  Without Meeting | 9      |
|   |       Shareholders                            | 1      |

|   | Notice                  of Meetings |   |
|--------|-------------------------------------|--------|
|   |    Directors         | 7      |
|   |    Shareholders      | 2      |

|   | Officers                                                 |   |
|--------|----------------------------------------------------------|--------|
|   |    Appointed                              | 11     |
|   |    Elected                                | 11     |
|   | Offices,                  Two or More Held By One Person | 11     |

----

|   |   | PAGE |
|--------|--------|------|

|   | President,                  Duties of                    | 12     |
|--------|----------------------------------------------------------|--------|
|   | Presiding                  Officer                       |   |
|   |    Board                  Meetings        | 8      |
|   |    Shareholders                  Meetings | 5      |
|   | Proxies                                                  | 4      |

|   | Quorum                         |   |
|--------|--------------------------------|--------|
|   |    Board        | 8      |
|   |    Shareholders | 4      |

|   | Secretary,                  Duties of                      | 13 |
|--------|------------------------------------------------------------|----|
|   | Signatures                  to Checks, Drafts, etc.        | 19 |
|   | Stock,                  Certificates of and their Transfer | 16 |

|   | Treasurer,                  Duties | 13 |
|--------|------------------------------------|----|

|   | Vice                  President, Duties of                | 13     |
|--------|-----------------------------------------------------------|--------|
|   | Voting                                                    |   |
|   |    Shareholders                            | 5      |
|   |    Stock                  Owned by Company | 19     |

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----

----