**EXHIBIT      10(d)  **

**PEOPLES      ENERGY CORPORATION**

**LONG-TERM      INCENTIVE PLAN**

**FOR      DIVERSIFIED BUSINESS UNITS**

**I.      **
**Introduction**

**1.1**
***Purpose***
**.**

**1.2**
***Certain      Definitions***
**.**

**“**
**Aggregate      Sharing Percentage**
**”      **

**“**
**Award**
**”**

**“**
**Board**
**”**

**“**
**Business      Unit**
**”**

**“**
**Cause**
**”**

**“**
**Change      in Control**
**”**

**“**
**Code      Section 409A**

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**“**
**Committee**
**”**

**“**
**Common      Stock**
**”**

**“**
**Company**

**“**
**Disabled**
* *

**“**
**Divestiture**
**”**

**“**
**Equity      Interest Award**
**”**

**“**
**Excess      Market Value**
**”      **
*i.e.,*

**“**
**Exchange      Act**
**”**

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**“**
**Fair      Market Value**
**”**
*provided,      however,*

**“**
**IPO**
**”**

**“**
**Management      Committee**
**”      **

**Newco**

**“**
**Officer**
**”**

**“**
**Participant**
**”**

**“**
**Percentage      Interest**
**”      **

**“**
**Percentage      Interest Award**
**”**

**“**
**Performance      Award**
**”**

**“**
**Performance      Measures**
**”**

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**“**
**Performance      Period**
**”**

**“**
**Plan**
**”      **

**“**
**Public      Market Capitalization**
**”**

**“**
**Securities      Exchange**
**”**

**“**
**Spin-Off**
**”**

**“**
**Tax      Date**
**”**

**1.3**
***Administration***
**.**

**1.4**
***Eligibility***
**.**

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**II.      **
**Performance      Awards**

**2.1**
***Performance      Awards***
**.**

**2.2**
***Terms      of Performance Awards***
**.**

**2.3**
***Termination      of Employment or Service***
**.**

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**III.      **
**Awards      in the Event of Certain Business Unit Dispositions**

**3.1**
***IPO.***
*;      provided, however,*

**3.2**
***Divestiture***

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**3.3**
***No      Duplication.***

**3.4**
***Termination      of Employment or Service***

**IV.      **
**General**

**4.1**
***Effective      Date***
**.**
*provided,      however*
**.**

**4.2**
***Termination.***

**4.3**
***Amendments.***

**4.4**
***Non-Transferability      of Awards***
**.**

**4.5**
***Tax      Withholding.***

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*provided,      however*

**4.6**
***Restrictions      on Shares.***

***4.7***
***Acceleration      of Performance Awards.***

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|   | A. | the                acquisition by any Person or Persons acting in concert, of ownership                of                stock held by such Person or Persons acting in concert, that constitutes                more than fifty percent (50%) of the total fair market value or total                voting power of the stock of Peoples Energy Corporation (calculated                in                accordance with Section 318(a) of the Code and subject to the limitations                of Internal Revenue Service, Notice 2005-1);                or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | a                change in the ownership of a substantial portion of the assets (as                defined                for purposes of Section 409A of the Code) of Peoples Energy Corporation;                or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | a                change in the effective control (as defined for purposes                of Section                409A of the Code) of Peoples Energy Corporation. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | A. | the                acquisition by any Person or Persons acting in concert, of ownership                of                stock held by such Person or Persons acting in concert, that constitutes                more than fifty percent (50%) of the total fair market value or total                voting power of the stock of the Business Unit (calculated in accordance                with Section 318(a) of the Code and subject to the limitations of                Internal                Revenue Service, Notice 2005-1); or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | a                change in the ownership of a substantial portion of the assets (as                defined                for purposes of Section 409A of the Code) of the Business Unit. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**4.8**
***No      Right of Participation or Employment***
**.**

**4.9**
***Rights      as Shareholder***
**.**

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**4.10**
***Governing      Law; Venue***
**.**

**4.11**
***Foreign      Employees***
**.**

**V.**
**Code      Section 409A Compliance**

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