FORM 10-Q

               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

  (Mark One)


    [ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

        For the Quarterly Period Ended December 31, 1997

                               OR

    [    ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

                 Commission File Number 2-26983


             THE PEOPLES GAS LIGHT AND COKE COMPANY
     (Exact name of registrant as specified in its charter)


                       Illinois            36-1613900
       (State or other jurisdiction of    (IRS Employer
       incorporation or organization)     Identification No.)


 24th Floor, 130 East Randolph Drive, Chicago, Illinois 60601-6207
    (Address of principal executive offices)            (Zip Code)


                         (312) 240-4000
      (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has 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) has been subject to such filing
requirements for the past 90 days.  Yes [x]   No [  ]


Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of t latest practicable date:
24,817,566 shares of Common Stock, without par value, outstanding
at January 31, 1998.

                                  Part I.  FINANCIAL INFORMATION

Item 1.  Financial Statements
<TABLE>
                           The Peoples Gas Light and Coke Company
                             CONSOLIDATED STATEMENTS OF INCOME
                                      (Unaudited)
 
<CAPTION>
                                               Three Months Ended    Twelve Months Ended
                                                  December 31,           December 31,
                                                1997       1996        1997         1996
                                                         (Thousands of Dollars)
<S>                                           <C>        <C>       <C>         <C> 
OPERATING REVENUES:
Gas sales                                     $ 268,231  $ 297,213 $   935,335 $   941,049
Transportation                                   33,564     34,196     118,144     141,751
Other                                             5,171      5,070      16,492      15,627
     Total Operating Revenues                   306,966    336,479   1,069,971   1,098,427

OPERATING EXPENSES:
Gas costs                                       144,079    161,183     502,231     498,210
Operation                                        41,712     47,397     166,648     190,339
Maintenance                                       9,894     10,786      43,801      43,901
Depreciation and amortization                    16,780     16,404      66,450      64,546
Taxes- Income                                    18,977     19,975      45,614      50,692
     - State and local revenue                   32,320     35,900     111,850     115,537
     - Other                                      4,464      4,511      18,993      19,734
     Total Operating Expenses                   268,226    296,156     955,587     982,959

OPERATING INCOME                                 38,740     40,323     114,384     115,468

OTHER INCOME AND (DEDUCTIONS):
Interest income                                     214        244       4,123       1,983
Allowance for funds used during construction        236         27         476          51
Interest on long-term debt                       (7,777)    (7,770)    (31,101)    (31,102)
Other interest expense                             (955)      (696)     (2,454)     (3,212)
Income taxes                                       (142)       (72)     (1,727)     (5,147)
Miscellaneous - net                                 108         54        (288)     11,316
     Total Other Income and Deductions           (8,316)    (8,213)    (30,971)    (26,111)

NET INCOME APPLICABLE
   TO COMMON STOCK                            $  30,424  $  32,110  $   83,413 $    89,357

The Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>

<TABLE>
                   The Peoples Gas Light and Coke Company

                          CONSOLIDATED BALANCE SHEETS

<CAPTION>

                                                       December 31,             December 31,
                                                          1997     September 30,   1996
                                                       (Unaudited)    1997      (Unaudited)
                                                              (Thousands of Dollars)
PROPERTIES AND OTHER ASSETS

<S>                                                    <C>        <C>         <C>
CAPITAL INVESTMENTS:
Property, plant and equipment, at original cost        $1,830,564 $ 1,819,567 $ 1,771,886
Less - Accumulated depreciation                           623,906     614,224     583,109
     Net property, plant and equipment                  1,206,658   1,205,343   1,188,777
Other investments                                           5,406       5,470       5,797
     Total Capital Investments - Net                    1,212,064   1,210,813   1,194,574

CURRENT ASSETS:
Cash and cash equivalents                                   6,745      18,509       7,326
Temporary cash investments                                    500      15,500         500
Receivables -
   Customers, net of allowance for uncollectible accounts
       of $26,144, $28,959, and $26,503, respectively     116,343      67,330     121,568
   Other                                                   25,568      40,159      28,706
Accrued unbilled revenues                                  68,377      20,109      79,991
Materials and supplies, at average cost                    14,739      13,225      13,107
Gas in storage, at last-in, first-out cost                 65,089      67,536      69,836
Gas costs recoverable through rate adjustments              5,500       3,328      33,955
Regulatory assets                                           9,098      16,698      35,740
Prepayments                                                46,565      39,802      13,813
     Total Current Assets                                 358,524     302,196     404,542

OTHER ASSETS:
Regulatory assets                                          28,743      28,914      33,348
Deferred charges                                           17,777      15,704      14,794
     Total Other Assets                                    46,520      44,618      48,142

Total Properties and Other Assets                      $1,617,108 $ 1,557,627 $ 1,647,258


The Notes to Consolidated Financial Statements are an integral part of these statements.
</TABLE>

<TABLE>
                        The Peoples Gas Light and Coke Company

                             CONSOLIDATED BALANCE SHEETS
<CAPTION>

                                                           December 31,          December 31,
                                                             1997    September 30,    1996
                                                           (Unaudited)   1997     (Unaudited)
                                                                 (Thousands of Dollars)
CAPITALIZATION AND LIABILITIES

<S>                                                         <C>        <C>        <C>
CAPITALIZATION:
Common Stockholder's Equity:
Common stock, without par value -
   Authorized 40,000,000 shares
   Outstanding 24,817,566 shares                           $  165,307 $  165,307 $  165,307
Retained earnings                                             423,707    409,662    417,832
     Total Common Stockholder's Equity                        589,014    574,969    583,139

Long-term debt, exclusive of sinking fund
  payments and maturities due within one year                 462,400    462,400    462,400
     Total Capitalization                                   1,051,414  1,037,369  1,045,539

CURRENT LIABILITIES:
Interim loans                                                  45,375        700     17,290
Accounts payable                                              111,868    113,502    171,798
Dividends payable on common stock                              16,380     32,015     13,153
Customer gas service and credit deposits                       40,938     39,753     35,552
Accrued taxes                                                  47,133     19,056     66,497
Gas sales revenue refundable through rate adjustments               -     14,484     12,384
Accrued interest                                                6,265      8,763      6,269
Temporary LIFO liquidation credit                                (230)         -          -
     Total Current Liabilities                                267,729    228,273    322,943

DEFERRED CREDITS AND OTHER LIABILITIES:

Deferred income taxes - primarily accelerated depreciation    234,575    229,225    215,462
Investment tax credits being amortized over
  the average lives of related property                        30,002     30,350     31,328
Other                                                          33,388     32,410     31,986
     Total Deferred Credits and Other Liabilities             297,965    291,985    278,776

     Total Capitalization and Liabilities                  $1,617,108 $1,557,627 $1,647,258


The Notes to Consolidated Financial Statements are an integral part of these
statements.
</TABLE>

                   The Peoples Gas Light and Coke Company

                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)

                                                           Three Months Ended
                                                             December 31,
                                                            1997      1996
                                                        (Thousands of Dollars)
Operating Activities:
Net income                                                $ 30,424 $  32,110
Adjustments to reconcile net income to net cash:
  Depreciation and amortization                             16,780    16,404
  Deferred income taxes and investment tax credits - net     4,558     1,406
  Change in deferred credits and other liabilities           1,422     4,551
  Change in other assets                                    (3,306)    2,214
  Change in current assets and liabilities:
    Receivables - net                                      (34,422)  (55,077)
    Accrued unbilled revenues                              (48,268)  (54,457)
    Materials and supplies                                  (1,514)      911
    Gas in storage                                           2,447   (13,960)
    Gas costs recoverable                                   (2,172)  (16,535)
    Regulatory assets                                        7,600       926
    Prepayments                                             (6,763)   (1,916)
    Accounts payable                                        (1,634)   50,145
    Customer gas service and credit deposits                 1,186    (1,569)
    Accrued taxes                                           28,077    35,255
    Gas sales revenue refundable                           (14,484)    1,650
    Accrued interest                                        (2,498)   (2,489)
    Temporary LIFO liquidation credit                         (230)        -

     Net Cash Provided by (Used in) Operating Activities   (22,797)     (431)

Investing Activities:
Capital expenditures of subsidiaries - construction        (16,589)  (13,874)
Other assets                                                  (102)      508
Other capital investments                                       64       149
Other temporary cash investments                            15,000         -

Net Cash Used in Investing Activities                       (1,627)  (13,217)

Financing Activities:
Interim loans of subsidiaries - net                         44,675    16,590
Dividends paid on common stock                             (32,015)  (13,153)

     Net Cash Provided by (Used in) Financing Activities    12,660     3,437

Net Increase (Decrease) in Cash and Cash Equivalents       (11,764)  (10,211)
Cash and Cash Equivalents at Beginning of Period            18,509    17,537

Cash and Cash Equivalents at End of Period                $  6,745  $  7,326

The Notes to Consolidated Financial Statements are an integral part of these 
statements.


 

             The Peoples Gas Light and Coke Company
                                
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           (Unaudited)

1.  BASIS OF PRESENTATION

   The accompanying consolidated financial statements have been
prepared by The Peoples Gas Light and Coke Company (Company) in
conformity with the rules and regulations of the Securities and
Exchange Commission (SEC) and reflect all adjustments that are,
in the opinion of management, necessary to present fairly the
results for the interim periods herein and to prevent the
information from being misleading.

   Certain footnote disclosures and other information, normally
included in financial statements prepared in accordance with
generally accepted accounting principles, have been condensed or
omitted from these interim financial statements, pursuant to SEC
rules and regulations.  Therefore, the statements should be read
in conjunction with the consolidated financial statements and
related notes contained in the Company's Annual Report on Form 10-
K for the fiscal year ended September 30, 1997.  Certain items
previously reported for the prior periods have been reclassified
to conform with the presentation in the current periods.

   The business of the Company is influenced by seasonal weather
conditions because a large element of the Company's customer load
consists of gas used for space heating.  Weather-related
deliveries can, therefore, have a significant positive or
negative impact on net income.  Accordingly, the results of
operations for the interim periods presented are not indicative
of the results to be expected for all or any part of the balance
of the current fiscal year.

2.  SIGNIFICANT ACCOUNTING POLICIES

2A     Use of Estimates

  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.

2B    Revenue Recognition

  Gas sales revenues are recorded on the accrual basis for all
gas delivered during the month, including an estimate for gas
delivered but unbilled at the end of each month.

2C Regulated Operations

  The Company's utility operations are subject to regulation by
the Illinois Commerce Commission (Commission).  Regulated
operations are accounted for in accordance with Statement of
Financial Accounting Standards (SFAS) No. 71, "Accounting for the
Effects of Certain Types of Regulation."  This standard controls
the application of generally accepted accounting principles for
companies whose rates are determined by an independent regulator
such as the Commission.  Regulatory assets represent certain
costs that are expected to be recovered from customers through
the ratemaking process.  When incurred, such costs are deferred
as assets in the balance sheet and subsequently recorded as
expenses when those same amounts are reflected in rates.
2D    Income Taxes

   The Company follows the liability method of accounting for
deferred income taxes.  Under the liability method, deferred
income taxes have been recorded using currently enacted tax rates
for the differences between the tax basis of assets and
liabilities and the basis reported in the financial statements.
Due to the effects of regulation on the Company, certain
adjustments made to deferred income taxes are, in turn, debited
or credited to regulatory assets or liabilities.

2E Statement of Cash Flows

   For purposes of the balance sheet and the statement of cash
flows, the Company considers all short-term liquid investments
with maturities of three months or less to be cash equivalents.

      Income taxes and interest paid (excluding capitalized
   interest) were as follows:

        For the three months
        ended December 31,    1997       1996
                               (Thousands)
         Income taxes paid $     30  $  2,928
         Interest paid       10,578    10,742

2F Recovery of Gas

   Under the tariffs of the Company, the difference for any month
between costs recoverable through the Gas Charge and revenues
billed to customers under the Gas Charge is refunded to or
recovered from customers.  Consistent with these tariff
provisions, such difference for any month is recorded either as a
current liability or as a current asset (with a contra entry to
Gas Costs).

   For each gas utility, the Commission conducts annual
proceedings regarding the reconciliation of revenues from the Gas
Charge and related costs incurred for gas.  In such proceedings,
costs recovered by a utility through the Gas Charge are subject
to challenge.  Such a proceeding regarding the Company for fiscal
year 1997 is currently pending before the Commission.

3.  ENVIRONMENTAL MATTERS

   The Company, its predecessors, and certain former affiliates
operated facilities in the past at multiple sites for the purpose
of manufacturing gas and storing manufactured gas (Manufactured
Gas Sites).  In connection with manufacturing and storing gas,
various by-products and waste materials were produced, some of
which might have been disposed of rather than sold.  Under
certain laws and regulations relating to the protection of the
environment, the Company might be required to undertake remedial
action with respect to some of these materials.  Two of the
Manufactured Gas Sites are discussed in more detail below.  The
Company, under the supervision of the Illinois Environmental
Protection Agency (IEPA), is conducting investigations of an
additional 27 Manufactured Gas Sites.  These investigations may
require the Company to perform additional investigation and
remediation.  The investigations are in a preliminary stage and
are expected to occur over an extended period of time.

   The Company has observed what appear to be gas purification
wastes on a Manufactured Gas Site in Chicago, formerly called the
110th Street Station, and property contiguous thereto (110th
Street Station Site).  The Company has fenced the 110th Street
Station Site and is conducting a study under the supervision of
the IEPA to determine the feasibility of a limited removal
action.

   The current owner of a site in Chicago, formerly called Pitney
Court Station, filed suit against the Company in federal district
court under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended.  The suit
seeks recovery of the past and future costs of investigating and
remediating the site and an order directing the Company to
remediate the site.  The Company is contesting this suit.

   The Company is accruing and deferring the costs it incurs in
connection with all of the Manufactured Gas Sites, including
related legal expenses, pending recovery through rates or from
insurance carriers or other entities.  At December 31, 1997, the
total of the costs deferred by the Company, net of recoveries and
amounts billed to other entities, was $10.6 million.  This amount
includes an estimate of the costs of the investigations being
conducted under the supervision of the IEPA referred to above.
The amount also includes an estimate of the costs of remediation
at the 110th Street Station Site, at the minimum amount of the
current estimated range of such costs.  The costs of remediation
at the other sites cannot be determined at this time.  While the
Company intends to seek contribution from other entities for the
costs incurred at the sites, the full extent of such
contributions cannot be determined at this time.

   The Company has filed suit against a number of insurance
carriers for the recovery of environmental costs relating to its
former manufactured gas operations.  The suit asks the court to
declare that the insurers are liable under policies in effect
between 1937 and 1986 for costs incurred or to be incurred by the
Company in connection with three Manufactured Gas Sites in
Chicago.  The Company is also asking the court to award damages
stemming from the insurers' breach of their contractual
obligation to defend and indemnify the Company against these
costs.  At this time, management cannot determine the timing and
extent of the Company's recovery of costs from its insurance
carriers.  Accordingly, the costs deferred at December 31, 1997
have not been reduced to reflect recoveries from insurance
carriers.

   Costs incurred by the Company for environmental activities
relating to former manufactured gas operations will be recovered
from insurance carriers or other entities or through rates for
utility service.  Accordingly, management believes that the costs
incurred by the Company in connection with former manufactured
gas operations will not have a material adverse effect on the
financial position or results of operations of the Company.  The
Company is recovering the costs of environmental activities
relating to its former manufactured gas operations, including
carrying charges on the unrecovered balances, under a rate
mechanism approved by the Commission.  At December 31, 1997, it
had recovered $5.8 million of such costs through rates.

4.  LONG-TERM DEBT

Interest-Rate Adjustments

   The rate of interest on the City of  Joliet 1984 Series C
Bonds, which are secured by the Company's Adjustable-Rate First
Mortgage Bonds, Series W, is subject to adjustment annually on
October 1.  Owners of the Series C Bonds have the right to tender
such bonds at par during a limited period prior to that date.
The Company is obligated to purchase any such bonds tendered if
they cannot be remarketed.  All Series C Bonds that were tendered
prior to October 1, 1997, have been remarketed.  The interest
rate on such bonds is 3.875 per cent for the period October 1,
1997, through September 30, 1998.

   The rate of interest on the City of Chicago 1993 Series B
Bonds, which are secured by the Company's Adjustable-Rate First
Mortgage Bonds, Series EE, is subject to adjustment annually on
December 1.  Owners of the Series B Bonds have the right to
tender such bonds at par during a limited period prior to that
date.  The Company is obligated to purchase any such bonds
tendered if they cannot be remarketed.  All Series B Bonds that
were tendered prior to December 1, 1997, have been remarketed.
The interest rate on such bonds is 3.90 per cent for the period
December 1, 1997, through November 30, 1998.

   The Company classifies these adjustable-rate bonds as long-
term liabilities, since it would refinance them on a long-term
basis if they could not be remarketed.  In order to ensure its
ability to do so, on February 1, 1994, the Company established a
$37.4 million three year line of credit with The Northern Trust
Company, which has since been extended to January 31, 2000.


Item 2.  Management's Discussion and Analysis of Results of
      Operations and Financial Condition

RESULTS OF OPERATIONS

Net Income

   Net income applicable to common stock decreased $1.7 million,
to $30.4 million, for the three-months ended December 31, 1997,
due primarily to lower gas deliveries caused by warmer weather
and conservation.  Increased depreciation and amortization
expense also contributed to the decline.  These effects were
partially offset by decreased pension expense caused by changes
in settlement accounting attributed to employees choosing early
retirement and actuarial assumptions, a reduction in the
provision for uncollectible accounts, and lower group insurance
expense.

   Net income applicable to common stock decreased $5.9 million,
to $83.4 million, for the  12-month period ending December 31, 1997, due 
principally to lower gas deliveries due to warmer weather and conservation.  
Also contributing was the prior period's one-time gain associated with
the expiration of gas storage contracts.  Benefiting the current period 
was the aforementioned reduction in pension expense, a tax accrual
adjustment, and lower interest expense as well as higher interest
income.

   A summary of variations affecting income between periods is
presented below, with explanations of significant differences
following:

                                  Three Months Ended     12 Months Ended
                                   December 31, 1997     December 31, 1997
                                  Increase/(Decrease)   Increase/(Decrease)  
                                   from Prior Period     from Prior Period
                                            (Thousands of dollars)
                                      Amount  Per Cent   Amount  Per Cent
Net operating revenues (a)             (8,829)  (6.3)   (28,790)  (5.9)
Operation and maintenance expenses     (6,577) (11.3)   (23,791) (10.2)
Depreciation and amortization expense     376    2.3      1,904    2.9
Income taxes                             (998)  (5.0)    (5,078) (10.0)
Other income and deductions              (103)   1.3     (4,860)  18.6
Net income applicable to common stock  (1,686)  (5.3)    (5,944)  (6.7)

(a) Operating revenues, net of gas costs and revenue taxes.


Net Operating Revenues

   Gross revenues of the Company are affected by changes in the
unit cost of the Company's gas purchases and do not include the
cost of gas supplies for customers who purchase gas directly from
producers and marketers rather than from the Company.  The direct
customer purchases have no effect on net income because the
Company provides transportation service for such gas volumes and
recovers margins similar to those applicable to conventional gas
sales.  Changes in the unit cost of gas do not significantly
affect net income because the Company's tariffs provide for
dollar-for-dollar recovery of gas costs.  (See Note 2F of the
Notes to Consolidated Financial Statements.)  The Company's
tariffs also provide for dollar-for-dollar recovery of the cost
of revenue taxes imposed by the State and City.

   Since income is not significantly affected by changes in
revenue from customers' gas purchases from producers or marketers
rather than from the Company, changes in gas costs, or changes in
revenue taxes, the discussion below pertains to "net operating
revenues" (operating revenues, net of gas costs and revenue
taxes).  The Company considers net operating revenues to be a
more pertinent measure of operating results than gross revenues.

   Net operating revenues declined $8.8 million, to $130.6
million, for the current three-month period, due largely to
reduced gas deliveries caused by weather that was eight percent
warmer and by conservation.

   Net operating revenues decreased $28.8 million, to $455.9
million, for the 12-month period, due to a decline in gas
deliveries attributable to weather that was six and one-half percent warmer
and conservation.

   See Other Matters - Operating Statistics for details of
selected financial and operating information by gas service
classification.

Operation and Maintenance Expenses

   Operation and maintenance expenses decreased $6.6 million, to
$51.6 million, for the current three-month period, due largely to
a $4.4 million decrease in pension expense, caused by changes in
settlement accounting attributed to employees choosing early
retirement and actuarial assumptions, and to a decrease in
environmental costs recovered through rates ($1.1 million).  In
addition, the provision for uncollectible accounts decreased
$741,000 and costs associated with operating and maintaining the
Company's distribution system decreased by $705,000.  Partially
offsetting these reductions was an increase in costs associated
with liability insurance premiums and claim settlements
($276,000).

   Operation and maintenance expenses decreased $23.8 million, to
$210.4 million, for the current 12-month period, due chiefly to a
$21.0 million decrease in the aforementioned pension expense and
a $2.5 million decrease in the provision for uncollectible
accounts.  Also, affecting the period were decreases in
environmental costs of $1.7 million and reductions in costs
associated with liability insurance premiums and claim
settlements of $1.5 million.  These reductions were offset, in
part, by an increase in outside services of $3.1 million.

Depreciation and Amortization Expense

   Depreciation and amortization expense increased $376,000, to
$16.8 million, and $1.9 million, to $66.5 million, for the
current three- and 12-month periods, respectively, due mainly to
net property additions.

Income Taxes

   Income taxes, exclusive of taxes in other income and
deductions, decreased $998,000, to $19.0 million, and $5.1
million, to $45.6 million, for the current three- and 12-month
periods, respectively, due primarily to lower pre-tax income.
Also, affecting the most recent 12-month period was a tax accrual
adjustment.

Other Income and Deductions

   Other income and deductions increased $103,000 for the current
three-month period due mainly to increased interest expense on
notes payable and on amounts refundable to customers.  Partially
offsetting these effects was an increase in the allowance for
funds used during construction.

   Other income and deductions increased $4.9 million for the
current 12-month period, due principally to the prior period's
gain associated with the expiration of natural gas storage
contracts.  Partially offsetting this impact was a decrease in
interest expense on amounts refundable to customers.

Other Matters

Effect of Weather.  Weather variations affect the volumes of gas
delivered for heating purposes and, therefore, can have a
significant positive or negative impact on net income, cash
position, and coverage ratios.

Large Volume Gas Service Agreements.  The Company has entered
into gas service contracts with certain large volume customers
under a specific rate schedule approved by the Commission.  These
contracts were negotiated to overcome the potential threat of
bypassing the utility's distribution system.  The impact on the
net income of the Company as a result of these contracts is not
material.

Small-Volume Transportation Service.  On June 25, 1997, the
Commission allowed Riders SVT and AGG to go into effect for the
Company, thus initiating a two year pilot program designed to
provide transportation service to certain small-volume industrial
and commercial customers of the utility as well as to some of its
large residential customers.  The Commission also ordered a
concurrent investigation of the program to ascertain if program
adjustments or revisions are required.



Operating Statistics.  The following table represents gas
distribution margin components:

   	                              Three Months Ended      Twelve Months Ended
                                       December 31,          December 31,
                                      1997      1996       1997       1996
Operating Revenues (thousands):
 Gas sales
    Residential                    $ 229,655 $ 251,788 $  790,096 $  796,537
    Commercial                        32,429    38,438    121,470    122,060
    Industrial                         6,147     6,987     23,769     22,452
                                     268,231   297,213    935,335    941,049

 Transportation
    Residential                       10,514    10,777     33,760     46,427
    Commercial                        12,792    13,197     42,234     53,420
    Industrial                         6,594     7,768     24,663     35,387
    Contract Pooling                   3,231     2,054     17,054      6,117
    Other                                433       400        433        400
                                      33,564    34,196    118,144    141,751

 Other                                 5,171     5,070     16,492     15,627

Total Operating Revenues             306,966   336,479  1,069,971  1,098,427
Less- Gas Costs                      144,079   161,183    502,231    498,210
    - Revenues Taxes                  32,320    35,900    111,850    115,537

Net Operating Revenues             $ 130,567 $ 139,396 $  455,890 $  484,680

Deliveries (MDth):
 Gas Sales
    Residential                       35,416    39,644     117,031   127,631
    Commercial                         5,461     6,610      20,313    21,804
    Industrial                         1,124     1,307       4,339     4,532
                                      42,001    47,561     141,683   153,967

 Transportation (a)
    Residential                        8,009    8,245       24,917    27,291
    Commercial                        10,682    11,448      35,778    39,029
    Industrial                         8,841     9,716      31,635    37,507
    Other                                  -         -         234         -
                                      27,532    29,409      92,564   103,827

 Total Gas Sales and Transportation   69,533    76,970     234,247   257,794

 Margin per Dth delivered           $   1.88 $    1.81  $     1.95 $    1.88


 (a)Volumes associated with contract pooling revenues are
      included in their respective customer classes.

LIQUIDITY AND CAPITAL RESOURCES

Environmental Matters.  The Company is conducting environmental
investigations and work at certain sites that were the location
of former manufactured gas operations.  (See Note 3 of the Notes
to Consolidated Financial Statements.)

Credit Lines.  The Company has lines of credit totaling
$129.4 million of which North Shore Gas may borrow up to
$30 million.  At December 31, 1997, the Company and North Shore
Gas had unused credit available from banks of $68.8 million.

Interest Coverage.  The fixed charges coverage ratios for the
Company for the 12 months ended December 31, 1997, and for fiscal
1997 and 1996 were 4.90, 5.01, and 4.84, respectively.

Year 2000.  The Company is modifying all of its computer programs
to be year 2000 compatible.  The Company does not believe that
the amount of expenditures it will incur in connection with its
year 2000 modification will have a material adverse effect on the
financial position or results of operations of the Company.

                  PART II.   OTHER INFORMATION


Item 1.  Legal Proceedings

   See Note 3 of the Notes to Consolidated Financial Statements
for a discussion pertaining to environmental matters.


Item 6.  Exhibits and Reports on Form 8-K

      a.  Exhibits

          Exhibit
          Number       Description of Document

           27          Financial Data Schedule

      b.  Reports on Form 8-K filed during the quarter ended
December 31, 1997

        None




                            SIGNATURE



   Pursuant to the requirements of the Securities Exchange Act of

1934, as amended, the registrant has duly caused this report to

be signed on its behalf by the undersigned thereunto duly

authorized.




                    The Peoples Gas Light and
                          Coke Company
                          (Registrant)




 February 11, 1998                 By: /s/ K. S. BALASKOVITS
  (Date)                                   K. S. Balaskovits
                                   Vice President and Controller




    
                                             (Same as above)
                                       Principal Accounting Officer