1. Report on Natural Gas and Electricity Prices Indices Survey Results May 5, 2004

2. Almost half of respondents identified themselves as marketers, but responses showed broad representation across the industry and many combinations

3. Survey respondents reported using natural gas price indices in pricing more than electric; industrial consumers use indices more than others

4. Day-ahead natural gas Bid-week natural gas Day-ahead electricity LowHighLowHighLowHigh Marketer48%59%37%47%21%41% Electric utility53%63%36%44%18%29% Generator50%60%49%58%15%21% Gas utility57%68%30%36%26%38% Producer69%80%73%83%7%25% Industrial consumer63%87%49%64%3%16% Other51%59% 66%21%48% All respondents49%59%35%44%21%39% Percent of respondent’s volumes reported

5. The average level of confidence in the current index construction process averaged almost 7 out of 10—gas utilities and industrial consumers reported being most confident* *In rare cases when respondents indicated different confidence levels for different ad-hoc categories of indices, Staff took the lowest value. This gives a minimal downward bias to the results.