Document:

<PAGE>

                                                                   Exhibit 10(b)

                           PEOPLES ENERGY CORPORATION
                        2004 INCENTIVE COMPENSATION PLAN
                       PERFORMANCE SHARES AWARD AGREEMENT

               FOR PERFORMANCE CYCLE BEGINNING OCTOBER 1, _______
                        AND ENDING SEPTEMBER 30, ________

                          (Approved February 27, 2004)

Name:  _____________________________

Position:  ___________________________

      (1)                     (2)
Performance Share          Performance
     Award                   Cycle
                          (Fiscal Years)

    _______                ____ - _______

1.    GRANT OF PERFORMANCE SHARES. The Compensation Committee of the Board of
      Directors of Peoples Energy Corporation ("Committee"), acting on behalf of
      the Peoples Energy Corporation ("Company"), hereby grants to the
      individual named above (the "Employee") the Performance Share Award set
      forth above based on the terms and conditions set forth in this
      Performance Shares Award Agreement ("Award Agreement") and in the Peoples
      Energy Corporation 2004 Incentive Compensation Plan ("Plan"). Capitalized
      terms have the meanings set forth in the Plan.

2.    SETTLEMENT OF GRANT

      Unless the Employee's Performance Shares shall have been earlier forfeited
      or otherwise disposed of pursuant to the terms of the Plan, upon (i) the
      expiration of the Performance Cycle and (ii) the Committee's determination
      and certification of the extent to which the Performance Goals set forth
      herein have been achieved, the Employee shall become entitled to the
      number of Performance Shares equal to the Percent of Grant Paid determined
      by the level of achievement of the Performance Goals multiplied by the
      Performance Share Award. Achieving Target Performance on both Performance
      Goals will earn 100% of the Performance Share Award. The maximum possible
      Percent of Grant Paid is 150% of the Performance Share Award.

<PAGE>

3.    PERFORMANCE CYCLE. The Performance Cycle for the Performance Shares
      granted herein shall be the three-year Performance Cycle beginning October
      1, ____ and ending September 30, ____ ("Performance Cycle").

4.    PERFORMANCE GOALS. The Performance Goals for the Performance Cycle are as
      set forth on Appendix A of this Award Agreement.

5.    PERCENT OF GRANT PAID. The Percent of Grant Paid will be prorated between
      levels of the performance matrix set forth on Appendix A, if both
      threshold Performance Goals are met.

6.    FORM AND TIMING OF PAYMENT. Payment to the Employee in settlement of this
      Award of Performance Shares shall be made in shares of Common Stock, to be
      paid pursuant to the terms of the Plan.

7.    FORFEITURE. If the Employee's employment with the Company and all
      Subsidiaries terminates other than by reason of death, disability or
      retirement prior to the last day of the Performance Cycle, the Employee
      shall forfeit all Performance Shares granted herein.

8.    DEATH, DISABILITY, AND RETIREMENT. In the event of the Employee's
      termination of employment with the Company and all Subsidiaries by reason
      of death, disability or retirement prior to the last day of the
      Performance Cycle, the Employee's right to payment with respect to his or
      her Performance Shares shall be governed by the terms of the Plan.

9.    WITHHOLDING TAXES. The Company shall have the right to deduct from all
      amounts payable under this Award Agreement any Federal, state, or local
      taxes required by law to be withheld with respect to such payments.

10.   NO GUARANTEE OF EMPLOYMENT. Nothing in this Award Agreement or the Plan
      shall confer any right on the Employee to continue in the employ of the
      Company or any Subsidiary or shall interfere in any way with the right of
      the Company or Subsidiary to discharge the Employee at any time.

11.   NO TRANSFERS OF AWARDS; NO RIGHTS OF A SHAREHOLDER. The Performance Shares
      that are the subject of this Award Agreement are not transferable by the
      Employee (other than by the laws of descent and distribution). The
      Employee shall acquire no rights of a shareholder of Common Stock unless
      and until the Employee actually becomes the holder of shares of Common
      Stock delivered to the Employee in settlement of the Performance Shares
      granted hereunder.

<PAGE>

12.   ACKNOWLEDGEMENT. The Employee's signature below indicates the Employee's
      acceptance of the Award, the Employee's agreement to the terms and
      conditions set forth in this Award Agreement, his or her acknowledgement
      of having received a copy of the Plan and its Prospectus, and his or her
      agreement to the terms and conditions set out in the Plan and its
      Prospectus. In the event of any conflict between the terms of this Award
      Agreement and the Plan, the Plan shall control.

                                            PEOPLES ENERGY CORPORATION

                                            By:  _______________________________

                                            Date:  __________________

AGREED TO AND
ACKNOWLEDGED BY:

___________________________
Employee's Signature

___________________________
Date

<PAGE>

                                   APPENDIX A

                           PEOPLES ENERGY CORPORATION
                        2004 INCENTIVE COMPENSATION PLAN
                            PERFORMANCE SHARES AWARD

                FOR PERFORMANCE CYCLE BEGINNING OCTOBER 1, ______
                         AND ENDING SEPTEMBER 30, ______

PERFORMANCE GOALS

Performance Goals for the Performance Cycle beginning October 1, _____ and
ending September 30, ______ are shown in the following performance/reward
matrix:

                              PERCENT OF GRANT PAID

                   MAXIMUM
THREE-YEAR          ____%           50%      100%         125%           150%
AVERAGE RETURN   PLAN TARGET
ON CAPITAL          ____%
                  THRESHOLD         25%       75%         100%           125%
                    ____%
                    BELOW            0%       50%          63%            75%
                  THRESHOLD
                                     0%        0%          25%            25%

                              BELOW       THRESHOLD      TARGET        MAXIMUM
                            THRESHOLD     35TH %TILE   55TH %TILE     75TH %TILE
                                                                        AND OVER

                 ANNUALIZED THREE-YEAR TOTAL SHAREHOLDER RETURN
                                RELATIVE TO PEERS

THREE-YEAR AVERAGE RETURN ON CAPITAL (ROC) means the average of the Return on
Capital for the three fiscal years of the Performance Cycle.

RETURN ON CAPITAL means for any fiscal year, (i) the Company's Operating Profits
After Taxes divided by (ii) its Average Capital.

OPERATING PROFITS AFTER TAXES means, for the relevant fiscal year, the sum of
(i) Operating Income After Taxes and (ii) Qualified Tax Benefits.

<PAGE>

OPERATING INCOME AFTER TAXES is the product of (a) the Company's operating
income minus short term interest expense and fees related to commercial paper
and lines of credit plus interest income and (b) one minus the Company's
marginal tax rate.

QUALIFIED TAX BENEFITS is identifiable tax credits that contribute to the
economic merits of a project or investment (e.g. wind power, oil and gas
production tax credits).

AVERAGE CAPITAL means, for the relevant fiscal year, the average of invested
capital (stockholders' equity plus long-term debt, including long-term debt
classified as short-term), determined by dividing (a) thirteen into (b) the sum
of (i) the invested capital balance at month end for each of the 12 months of
the relevant fiscal year and (ii) the month end balance of invested capital for
the month immediately preceding such fiscal year.

ANNUALIZED THREE-YEAR TOTAL SHAREHOLDER RETURN (TSR) means (a) taking the cubic
root of Total Shareholder Return and (b) subtracting one.

      Total Shareholder Return means the result of dividing (a) Ending Total
      Value by (b) Beginning Total Value.

      Ending Total Value means the product of (a) the Number of Shares On Ending
      Date multiplied by (b) the closing share price on the last Trading Day of
      the Performance Cycle.

      Beginning Total Value means the closing value of one share on the last
      Trading Day of the month immediately preceding the beginning date of the
      Performance Cycle.

      Number of Shares On Ending Date means the number of shares, inclusive of
      dividend reinvestment, on the last day of the Performance Cycle. Number of
      Shares on Ending Date is calculated assuming one share is owned at the
      beginning of the Performance Cycle, to which amount is added, in any month
      in which a dividend payment occurs (determined by the date a stock goes
      "ex-dividend"), the amount of additional shares that could be purchased by
      dividing (a) the ending month share price into (b) the product of (i) the
      amount of shares owned (inclusive of any prior dividend reinvestments) at
      the beginning of the month and (ii) the dividend rate per share. Share
      prices are determined by the closing price on the last Trading Day of the
      month.

      Trading Day means any day that the New York Stock Exchange is open for
      business.

<PAGE>

ANNUALIZED THREE-YEAR TOTAL SHAREHOLDER RETURN RELATIVE TO PEERS will be Peoples
Energy's Annualized Three - Year Total Shareholder Return compared against the
Annualized Three-Year Total Shareholder Return of the following companies (the
"Peer Group"):

<TABLE>
<CAPTION>
Ticker                                        Ticker                                       Ticker
Symbol         Company                        Symbol        Company                        Symbol       Company
------         -------                        ------        -------                        ------       -------
<S>            <C>                            <C>           <C>                            <C>          <C>
ATG            Atlanta Gas Light              ATO           Atmos Energy                   DTE          Detroit Edison
EGN            Energen                        LG            Laclede Gas                    WEC          Wisconsin Energy
EQT            Equitable Resources            NJR           New Jersey Resources           EXC          Exelon
KSE            Keyspan                        SRE           Sempra                         AAE          Ameren
NFG            National Fuel Gas              SJI           South Jersey Ind.              ED           ConEdison
GAS            NICOR                          CGC           Cascade Natural Gas
NWN            Northwest Natural Gas          OGE           OGE
NUI            NUI Corp                       SWX           Southwest Gas
OKE            Oneok                          VVC           Vectren
PNY            Piedmont                       NI            NiSource
STR            Questar                        MGEE          Madison Gas & Electric
SUG            Southern Union                 UGI           UGI
WGL            Washington Gas Light
</TABLE>

Percentile Rank will be determined by assigning a rank ordering to the Company
and its peers on the basis of Annualized Three Year Total Shareholder Return,
and assigning to each rank the following percentile:

<TABLE>
<CAPTION>
Rank      Percentile          Rank       Percentile
----      ----------          ----       ----------
<S>       <C>                 <C>        <C>
  1        100.00%             19         40.00%
  2         96.60%             20         36.60%
  3         93.30%             21         33.30%
  4         90.00%             22         30.00%
  5         86.60%             23         26.60%
  6         83.30%             24         23.30%
  7         80.00%             25         20.00%
  8         76.60%             26         16.60%
  9         73.30%             27         13.30%
 10         70.00%             28         10.00%
 11         66.60%             29          6.60%
 12         63.30%             30          3.30%
 13         60.00%             31           .00%
 14         56.60%
 15         53.30%
 16         50.00%
 17         46.60%
 18         43.30%
</TABLE>

<PAGE>

Should a situation arise where it would no longer be possible to calculate Total
Shareholder Return for a Peer Group company (e.g. stock de-listing, acquisition)
then a suitable replacement firm will be added to the listing of Peer Group
companies, such replacement firm subject to approval of the Committee. In the
event no suitable replacement firm can be identified, then the
percentile-ranking table will be adjusted to reflect the remaining number of
firms in a manner consistent with current percentile-ranking table.

COMPUTATION OF FINAL PERCENT OF GRANT PAID: Since the matrix is not linear,
proration will occur in some cases. Base Value will be the pay-out box value
that corresponds to ROC and TSR levels immediately below those achieved.
Proration will occur when that base value is above zero. From the Base Value,
the ROC prorated value will be calculated by taking a proration between that ROC
level and the next higher ROC level. Then the TSR prorated value will be
computed in a like manner (starting from the Base Value). The two prorated
values will be added to the base value to get the percent of grant paid. If the
base value is zero, no proration will occur.<PAGE>

                                                                   EXHIBIT 10(c)

                           PEOPLES ENERGY CORPORATION

                     SHORT-TERM INCENTIVE COMPENSATION PLAN

                            ADMINISTRATIVE GUIDELINES

                                   FISCAL 2005

                                                                    OCTOBER 2004

                                       1
<PAGE>

                     SHORT-TERM INCENTIVE COMPENSATION PLAN

                            ADMINISTRATIVE GUIDELINES

                                   FISCAL 2005

         This document sets forth the Administrative Guidelines for fiscal 2005
established by the Compensation Committee under the Peoples Energy Corporation
Short-Term Incentive Compensation Plan ("Plan").

Participants                       All full-time salaried employees of Peoples
                                   Energy Corporation or its subsidiaries who
                                   occupy a position in an officer salary grade
                                   prior to April 1, 2005.

Award Opportunities                The positions of participants are grouped by
                                   incentive award categories, I through III.
                                   The following schedule shows, for each
                                   incentive award category, the maximum award
                                   opportunity and the target award opportunity
                                   for fiscal 2005, each expressed as a
                                   percentage of a participant's annual base
                                   salary. Where a participant has substantial
                                   operating responsibility for a diversified
                                   business, the Chief Executive Officer may
                                   assign, to business unit measures for the
                                   participant, a maximum award opportunity that
                                   is different from the maximum award
                                   opportunity shown in the following schedule.
                                   Where a participant's maximum award
                                   opportunity is established by separate
                                   agreement with the participant, the maximum
                                   award opportunity for purposes of these
                                   guidelines shall be that established by such
                                   agreement.

                                       2
<PAGE>

<Table>
<Caption>
                                                                                MAXIMUM AWARD            TARGET AWARD
                                                                                 OPPORTUNITY             OPPORTUNITY
 AWARD                                                                         (AS % OF ANNUAL          (AS % OF ANNUAL
CATEGORY                          POSITIONS                                      BASE SALARY)             BASE SALARY)
--------        ----------------------------------------------                 ---------------          ---------------
<S>             <C>                                                            <C>                      <C>
   I            Chairman, President and CEO                                          150%                      75%

   II           Exec. VP, Operations and President, PERC                             100%                      50%
                Senior VP and CFO
                President, PGL and NSG
                Senior VP, Business Services
                President, PEPCO

  III           Assistant General Counsel and Secretary                              75%                     37.5%
                VP and Treasurer
                VP and Controller
                VP, Risk Management
                VP, Administration
                VP, Corporate Communications
                VP, Human Resources
                VP, Information Technology Services
                VP, Gas Supply & Engineering
                VP, Gas Operations
                VP, Power Generation, PERC
                VP, Midstream Services, PERC
                VP, Peoples Energy Services
                VP, Exploration, PEPCO
                VP, Engineering & Operations, PEPCO
                VP, Land, PEPCO
                VP, Business Development, PEPCO
</Table>

                                   Where an employee becomes eligible to
                                   participate in the Plan subsequent to the
                                   establishment of these Guidelines but prior
                                   to April 1 of fiscal 2005, the Chief
                                   Executive Officer shall notify the Committee
                                   of such employee's participation in the Plan
                                   and such employee's assignment to an award
                                   category consistent with the foregoing
                                   schedule, provided that an assignment to any
                                   category other than Category III shall be
                                   made by the Committee.

                                       3
<PAGE>

Performance/                       Each participant's award opportunity will be
Award                              segmented into several components, each tied
Components                         to no more than four financial performance
                                   measures and one operational measure
                                   for Gas Distribution and Peoples
                                   Energy Production participants. For
                                   Senior Management (the Chairman,
                                   President and CEO in Category I) the
                                   entire award opportunity will be
                                   tied to the corporate financial
                                   performance measures as indicated in
                                   the following table.

<Table>
<Caption>
                                   Weighting of Corporate Financial Performance
                                                    Measures
                                             For Senior Management
                                   --------------------------------------------
                                                                     Operating
                                                                    Income from
                                                                      Energy
                                        EPS             ROE         Businesses
                                        ----            ----        -----------
<S>                                                     <C>         <C>
                                        50.0%           25.0%          25.0%
</Table>

                                   The other participants will have up to 50% of
                                   their award opportunity tied to the EPS
                                   corporate performance measure. The remaining
                                   percentage of their award opportunity will be
                                   tied to other corporate or business unit
                                   financial or operational measures.

                                   One component's performance will not directly
                                   affect the portion of the award opportunity
                                   earnable from another component.

Award Payment                      Incentive awards will be paid under the Plan
Trigger                            for fiscal 2005 only if Peoples Energy's net
                                   income for the year equals or exceeds the
                                   dividend and Peoples Energy does not omit or
                                   reduce its common stock dividend during the
                                   year.

                                       4
<PAGE>

Individual                         If a participant's overall performance is
Performance                        deemed unsatisfactory to some degree, a lower
Requirement                        incentive award or no incentive award will be
                                   paid.

Performance                        The Corporate Financial Measures, Business
Measures                           Unit Financial Measures and Business Unit
                                   Operation Measures are defined in detail in
                                   Appendix A.

                                   The financial measures will be based on the
                                   performance that occurs within fiscal 2005
                                   and payout percentages will be prorated
                                   between levels. Performance under the
                                   measures will be determined in the manner
                                   described in Appendix A. For all applicable
                                   measures, any effect related to the outcome
                                   of the Reconciliation Proceeding or a change
                                   in Aquila's status (including downgrade or
                                   purchase of contract) will not be included in
                                   the results for the performance measure.

                                   The Chief Executive Officer will be
                                   responsible for the designation and
                                   evaluation of business unit measures.

Notice to                          At the beginning of fiscal 2005 or as soon as
Participants                       is practicable thereafter, each participant
                                   will be notified of his or her participation
                                   and receive a copy of these Administrative
                                   Guidelines, and a statement showing the
                                   participant's maximum award opportunity, the
                                   participant's target award opportunity, the
                                   performance measures that will be utilized to
                                   determine the participant's award for fiscal
                                   2005, and the weighting of the performance
                                   measures within the award opportunities.

                                       5
<PAGE>

Final Award                        The incentive award for a participant is
                                   computed as the sum of the awards earned
                                   based on corporate and/or business unit
                                   performance measures. The final award will be
                                   based on this computed award, adjusted up or
                                   down to reflect the participant's individual
                                   performance, such adjustment to be made at
                                   the sole discretion of the Compensation
                                   Committee for all participants other than the
                                   Chief Executive Officer. The final award for
                                   the Chief Executive Officer may be reduced
                                   from the computed award to reflect
                                   performance, such adjustment to be made at
                                   the sole discretion of the Compensation
                                   Committee subject to ratification by a
                                   majority of the non-employee and independent
                                   directors of the Board (as more fully
                                   described in the Plan). The final award for
                                   the Chief Executive Officer may not be
                                   increased from the computed award by a
                                   majority of all members of the Board who are
                                   not officers or employees of the Company. The
                                   final award for the Chief Executive Officer
                                   may not be increased from the computed award.
                                   It is intended that the final award for the
                                   CEO under these guidelines constitute
                                   "performance-based compensation" for purposes
                                   of Section 162(m) of the Internal Revenue
                                   Code. Accordingly, these Administrative
                                   Guidelines shall be interpreted and
                                   administered in accordance with such
                                   intention.

Form and Timing                    Payments of awards will be made in cash as
Payments                           soon as practicable following the end of
                                   fiscal 2005.

                                       6
<PAGE>

                                                                      Appendix A

                CORPORATE AND BUSINESS UNIT PERFORMANCE MEASURES

PEC - ONGOING OPERATING (NON-GAAP) - EARNINGS PER SHARE

         Peoples Energy attainment of targeted, diluted Non-GAAP EPS for fiscal
2005. Represents diluted EPS before restructuring related pension costs.

<Table>
<Caption>
LEVEL                      EPS                      PAYOUT % OF TARGET
-----                     -----                     ------------------
<S>                       <C>                       <C>
  1                       $____                            200%
  2                       $____                            150%
  3                       $____                            100%
  4                       $____                             75%
  5                       $____                             50%
</Table>

PEC - RETURN ON EQUITY

         Consolidated return on 13-month average common equity using PEC fiscal
2005 consolidated ongoing operating (non-GAAP) net income before restructuring
related pension costs. The balance of Other Comprehensive Income (OCI) - net of
tax is excluded from common equity for this calculation.

<Table>
<Caption>
LEVEL                     PEC ROE                    PAYOUT % OF TARGET
-----                     -------                    ------------------
<S>                       <C>                        <C>
  1                        ____%                           200%
  2                        ____%                           150%
  3                        ____%                           100%
  4                        ____%                            75%
  5                        ____%                            50%
</Table>

<PAGE>

CORPORATE COST CENTER RESPONSIBILITY COSTS

         Includes all costs under the control of corporate cost centers. This
includes costs rebilled to other companies and amounts capitalized. This measure
does not include restructuring related pension costs. Costs in millions of
dollars.

<Table>
<Caption>
LEVEL                     CORP. COSTS               PAYOUT % OF TARGET
-----                     -----------               ------------------
<S>                       <C>                       <C>
  1                          $____                         200%
  2                          $____                         150%
  3                          $____                         100%
  4                          $____                          75%
  5                          $____                          50%
</Table>

OPERATING INCOME - DIVERSIFIED ENERGY BUSINESSES

         Operating income from PEC's diversified business segments: power
generation, midstream services, retail energy services, oil and gas, and other.
It does not include corporate segment operating costs or corporate financing
costs. Operating income in millions of dollars.

<Table>
<Caption>
LEVEL                OPERATING INCOME                PAYOUT % OF TARGET
-----                ----------------                ------------------
<S>                  <C>                             <C>
  1                        $____                            200%
  2                        $____                            150%
  3                        $____                            100%
  4                        $____                             75%
  5                        $____                             50%
</Table>

                                       2
<PAGE>

GAS DISTRIBUTION - NORMALIZED OPERATING INCOME

         Award is based on pre-tax operating income from PGL and NSG. This
operating income will include HUB operating income and be adjusted for weather
variations. Operating income in millions of dollars.

<Table>
<Caption>
LEVEL                   OPERATING INCOME             PAYOUT % OF TARGET
-----                   ----------------             ------------------
<S>                     <C>                          <C>
  1                          $____                          200%
  2                          $____                          150%
  3                          $____                          100%
  4                          $____                           75%
  5                          $____                           50%
</Table>

GAS DISTRIBUTION - RESPONSIBILITY COSTS

         Includes all costs under the control of Gas Distribution cost centers.
This excludes environmental costs recovered through Rider 11 and the provision
for bad debt. Costs in millions of dollars.

<Table>
<Caption>
LEVEL                 GAS DIST. COSTS                PAYOUT % OF TARGET
-----                 ---------------                ------------------
<S>                   <C>                            <C>
  1                        $____                            200%
  2                        $____                            150%
  3                        $____                            100%
  4                        $____                             75%
  5                        $____                             50%
</Table>

                                       3
<PAGE>

GAS DISTRIBUTION OPERATING MEASURE

         Reduction in the number of calls offered to the PGL and NSG call
centers

<Table>
<Caption>
LEVEL                  CALLS OFFERED                PAYOUT % OF TARGET
-----                  -------------                ------------------
<S>                    <C>                          <C>
  1                        ____                            200%
  2                        ____                            150%
  3                        ____                            100%
  4                        ____                             75%
  5                        ____                             50%
</Table>

         Increase in combined revenue for PGL and NSG generated through services
billed via Cfirst, revenue collected from jobbing contracts and revenue
collected from the leasing of construction heaters.

<Table>
<Caption>
                      NON-TRADITIONAL
LEVEL                     REVENUE                   PAYOUT % OF TARGET
-----                 ---------------               ------------------
<S>                   <C>                           <C>
  1                        $____                           200%
  2                        $____                           150%
  3                        $____                           100%
  4                        $____                            75%
  5                        $____                            50%
</Table>

                                       4
<PAGE>

OIL AND GAS - RETURN ON CAPITAL EMPLOYED

         Return on total capital investments each quarter, annualized, then
averaged at the end of the year. The return will be calculated using the Oil &
Gas segment's operating income (any other income would not be included) and the
total capital investment, net of depreciation, from the consolidated balance
sheet as disclosed in the 10-Q and 10-K. The calculation would include
investments in equity investments.

<Table>
<Caption>
LEVEL               OIL AND GAS - ROCI              PAYOUT % OF TARGET
-----               ------------------              ------------------
<S>                 <C>                             <C>
  1                        ____%                           200%
  2                        ____%                           150%
  3                        ____%                           100%
  4                        ____%                            75%
  5                        ____%                            50%
</Table>

OIL & GAS - OPERATING INCOME

Operating income from the existing base assets, the capital program and the
EnerVest Partnership. Operating income in millions of dollars.

<Table>
<Caption>
                      OIL AND GAS
LEVEL               OPERATING INCOME                PAYOUT % OF TARGET
-----               ----------------                ------------------
<S>                 <C>                             <C>
  1                       $____                           200%
  2                       $____                           150%
  3                       $____                           100%
  4                       $____                            75%
  5                       $____                            50%
</Table>

                                       5
<PAGE>

OIL AND GAS - DAILY AVERAGE PRODUCTION

         Annual average daily oil & gas production as measured on a MMCF per day
gas equivalent basis for the fiscal year from the existing assets and capital
program. Conversions will be based on 6 MCF of gas per BBL of oil.

<Table>
<Caption>
                       OIL & GAS
LEVEL                  PRODUCTION                 PAYOUT % OF TARGET
-----                  ----------                 ------------------
<S>                    <C>                        <C>
  1                        ____                            200%
  2                        ____                            150%
  3                        ____                            100%
  4                        ____                             75%
  5                        ____                             50%
</Table>

POWER GENERATION - OPERATING INCOME

Operating income from continuing operations. The sale of the western sites are
not included in this measure. Operating income in millions of dollars.

<Table>
<Caption>
                      POWER GENERATION
LEVEL                 OPERATING INCOME             PAYOUT % OF TARGET
-----                 ----------------             ------------------
<S>                   <C>                          <C>
  1                        $____                           200%
  2                        $____                           150%
  3                        $____                           100%
  4                        $____                            75%
  5                        $____                            50%
</Table>

                                       6
<PAGE>

POWER GENERATION - SALE OF WESTERN SITES

         Gain on the sale of the western sites in millions of dollars.

<Table>
<Caption>
                     POWER GENERATION
LEVEL             SALE OF WESTERN SITES             PAYOUT % OF TARGET
-----             ---------------------             ------------------
<S>               <C>                               <C>
  1                       $____                            200%
  2                       $____                            150%
  3                       $____                            100%
  4                       $____                             75%
  5                       $____                             50%
</Table>

MIDSTREAM SERVICES - OPERATING INCOME

Operating income, excluding the PGL Hub. Operating income in millions of
dollars.

<Table>
<Caption>
                    MIDSTREAM SERVICES
LEVEL                OPERATING INCOME             PAYOUT % OF TARGET
-----                ----------------             ------------------
<S>                  <C>                          <C>
  1                        $____                         200%
  2                        $____                         150%
  3                        $____                         100%
  4                        $____                          75%
  5                        $____                          50%
</Table>

                                       7
<PAGE>

RETAIL ENERGY - OPERATING INCOME

         Operating income in millions of dollars.

<Table>
<Caption>
                     RETAIL ENERGY
LEVEL               OPERATING INCOME        PAYOUT % OF TARGET
-----               ----------------        ------------------
<S>                 <C>                     <C>
  1                       $____                    200%
  2                       $____                    150%
  3                       $____                    100%
  4                       $____                     75%
  5                       $____                     50%
</Table>

MIDWEST DIVERSIFIED ENERGY OPERATING INCOME

                  Operating income from Retail, Power, Midstream and Other
segments excluding Hub but including the gain from the sale of the western
sites. Operating income in millions of dollars.

<Table>
<Caption>
                MIDWEST DIVERSIFIED
                 ENERGY OPERATING
LEVEL                 INCOME               PAYOUT % OF TARGET
-----           -------------------        ------------------
<S>             <C>                        <C>
  1                    $____                      200%
  2                    $____                      150%
  3                    $____                      100%
  4                    $____                       75%
  5                    $____                       50%
</Table>

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]