exv10wxby



 






EXHIBIT 10(b)




PEOPLES ENERGY CORPORATION

Perquisites and Supplemental Benefits for Officers



At Peoples Energy we view compensation as all payments, (both cash and non-cash) and
prerequisites. Our decisions as to what is offered are based upon benchmarked job data.
Peoples Energy’s compensation system includes base pay, incentives and market based
perquisites for officers. Each component is selected to ensure we are able to fairly
compensate officers for their work both on and off company site(s), mitigate exposure to
extraordinary financial risk and/or to remain competitive in the marketplace.




Flexible Perquisite Allowance


All officer level employees receive an annual Flexible Perquisite Allowance (FPA). The
annual allowance is $12,000 for the Chief Executive Officer and $8,500 for all other
officers. Reimbursements for any perquisites under the FPA will not be grossed-up for tax
purposes. Under the FPA, officers have the option of requesting reimbursements for all
perquisites in the FPA program or requesting a greater reimbursement for just one
perquisite, up to the maximum allowance of $12,000 for the Chief Executive Officer and
$8,500 for all other officers. Perquisites under the FPA program include:





	 	v	 	Home Office Equipment






	 	Ø	 	New or upgrading of desktop computer or laptop
	 
	 	Ø	 	New or upgrading of computer accessories (modems,
CD-Rom, hard drives, etc.)
	 
	 	Ø	 	New or upgrading of business related software (MS Office
or MS Windows)
	 
	 	Ø	 	Monitor
	 
	 	Ø	 	Printer
	 
	 	Ø	 	Fax
	 
	 	Ø	 	Dedicated phone line or broadband connection (DSL
or cable)






	 	v	 	Excess Personal Liability Insurance






	 	Ø	 	Additional insurance coverage for a car, home, etc. A financial planner can
provide advice on the appropriate amount of coverage.






	 	v	 	Personal Financial Counseling






	 	Ø	 	Utilization of any outside professional service provider for
financial/tax counseling, investment planning, estate planning and/or income
tax preparation.
	 
	 	Ø	 	Service provider must be professionally licensed (CPA, CFP or lawyer) to
offer aforementioned services.
	 
	 	Ø	 	Accredited tax preparation centers such as H&R Block are also considered
to be eligible service providers.
	 
	 	Ø	 	Bills for brokerage fees resulting from any financial counseling or
investment planning advice received are not eligible for reimbursement.




 









 





2






Executive Deferred Compensation Program



Officers and other senior level employees have an opportunity to defer all or part of their
cash compensation under IRS guidelines.




Supplemental Retirement Benefit Plan



Maintains the level of total retirement benefits which would otherwise be payable under the
Retirement Plan, but for limitations on benefits imposed the Internal Revenue Code.




Post-Retirement Life Insurance



Post-Retirement Life Insurance is $10,000.




Executive Physical Program



The health of our officers is vital to the success of Peoples Energy and the Company wants to
encourage participation in the program and provide flexibility.

The Executive Physical Program affords officers the opportunity to receive a comprehensive
executive physical examination on an annual basis at the following recommended healthcare
facilities or at a healthcare provider/facility of their choice:





	 	v	 	Mayo Clinic (facility in Scottsdale, Arizona)
	 
	 	v	 	Loyola University Medical Center
	 
	 	v	 	The University of Chicago
	 
	 	v	 	Rush-Presbyterian-St Luke’s Medical Center




Use of the Executive Physical Program is strictly voluntary.



Officers (and their spouses) are eligible to receive a maximum reimbursement of $2,000 ($4,000
including spouses) for the cost of each complete comprehensive Executive Physical Exam.



Officers will receive “grossed-up” reimbursements to satisfy most of the tax liability that will be
incurred. Any transportation or other expenses incurred in receiving the exam will be the
officer’s responsibility.




 









 






3


Luncheon Club Membership



It is expected that from time to time Officers may have a need to conduct business over lunch
or dinner. To help facilitate a productive meeting, Officers are eligible to receive a luncheon
club membership.




Private Airline Club



Officers are eligible for membership to private clubs at airlines, such as the Red Carpet Club
at United Airlines. Club memberships make it easier for frequent travelers to have access to
private telephones, fax machines and conference rooms while waiting for flights. Officers should
contact the airline of their choice for more information.




Elected Officer Perquisites




Auto Allowance



Payments of $2,250 ($9,000 annually) are made at the beginning of each calendar quarter, plus
any gross-up amount that satisfies taxes on the payments.




Parking Pass



Officers are eligible to receive a parking pass at their primary work location.