Dan Fox Senior Capacity Planning Consultant WPA Presentation Dan Fox Senior Capacity Planning Consultant

Nicor Gas Overview Background information Supply Portfolio Pipeline Interconnects Gas Purchasing

Nicor Gas’ Service Territory Subsidiary of Nicor Inc. 2 million customers 1-2% annual growth rate Adding 30,000 customers annually Annual sendout exceeds 500 Bcf (50% Sales/ 50% End-users) Illinois

Nicor Gas Customer Mix (% of 2002 Deliveries) 2% 29% 41% Residential Commercial Industrial 19% 8% 1% Sales Transportation

Nicor Gas’ Portfolio Designed Peak Day sendout - 5.2 Bcf Planned 2.8 Bcf/d Nicor Gas storage withdrawal 140 Bcf top gas capacity in 7 locations Aquifer based 1 Bcf/d injection capability Illinois

Nicor Gas’ Portfolio (continued) 1.8 Bcf/d of pipeline transport capacity Remaining filled with citygate purchases Illinois

Nicor Gas System Map Nicor Gas territory Major gas main Crystal Lake Rockford Schaumburg DeKalb Oak Brook Naperville Joliet Bloomington Kankakee Major gas main Underground gas storage field Natural Gas Pipeline Company of America Northern Natural Gas Midwestern Gas Transmission Panhandle Energies ANR Pipeline Alliance Pipeline Northern Border Vector Horizon Guardian

Major Pipeline Suppliers to Chicago Area Midwestern/Tenn. Natural Gas Pipeline Northern Natural ANR Pipeline Northern Border Panhandle Eastern Trunkline Gas Co. Alliance Pipeline

Nicor Gas - Natural Gas Pipeline of America Nicor Gas Interconnects 82 locations Approximately 1.0 BCF of transport Approximately 0.5 BCF of No-Notice Storage Service To fill Nicor Gas’ storage fields, Peak Day deliveries and Balance Power Plants

Nicor Gas - Northern Natural Gas Nicor Gas interconnect at East Dubuque Approximately 0.2 BCF of Transport High load factor Supports north end of Nicor Gas’ system

Nicor Gas - ANR Nicor Gas Interconnects - 2 existing and 1 being developed Access to Nicor Gas’ Transmission and Storage systems with about 500,000 dth/day

Nicor Gas - Northern Border Pipeline Nicor Gas Interconnects -2 Access to Nicor Gas’ Transmission and Storage systems Citygate purchases

Nicor Gas - Alliance Nicor Gas Interconnect -1 Access to Nicor Gas’ Transmission and Storage systems

Nicor Gas’ Gas Purchasing Parameters Reliability Liquid point Dislike price volatility Competitive prices Long term supply availability Diversify supply basins

Nicor Gas’ Gas Purchasing Contracts Short term 1 year or less Long term 3-5 years Index based pricing Midcontinent zone Chicago market Citygate vs. transport

Questions?

Contact Information Dan Fox Senior Capacity Planning Consultant 1844 Ferry Road Naperville, Illinois 60563 (630) 983-8676 Ext. 4818 Fax: (630) 983-9885 Email: Dfox@nicor.com