Peeples was part of the team which readied the USS Brattain for towing after it was discovered adrift near a binary star system. Unbeknownst to the Enterprise-D crew, both ships had become ensnared within a Tyken's Rift and were being psychologically affected by the transmissions from an alien vessel trapped on the other side of the rift, causing REM sleep deprivation and subsequently delusions and paranoia.
Peeples was one of the first Enterprise-D crewmembers to be affected and believed he heard movement aboard the vacant Brattain. La Forge assured him it was only natural to be uneasy considering that the Brattain's crew had all been found dead. (TNG: "Night Terrors")