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

2. Nicor Gas Overview Background information Supply Portfolio
Pipeline Interconnects
Gas Purchasing

3. 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

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

5. 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

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

7. 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

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

9. 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

10. 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

11. 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

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

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

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

15. 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

16. Questions?

17. Contact Information
Dan Fox
Senior Capacity Planning Consultant
1844 Ferry Road
Naperville, Illinois 60563
(630) Ext. 4818
Fax: (630)