**EXHIBIT      3**

**BY-LAWS**

**OF**

**PEOPLES      ENERGY CORPORATION**

**AMENDED      December 2, 2005**

**EFFECTIVE      February 24, 2006**

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| 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                         |

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|   |   | 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 |
|--------|--------------------------------------|---|

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|   |   | 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     |

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|   |   | 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     |

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