Wpa presentation 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)

Nicor Gas Customer Mix (% of 2002 Deliveries)

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

Nicor Gas’ Portfolio (continued)

• 1.8 Bcf/d of pipeline transport capacity

• Remaining filled with citygate purchases

Nicor Gas System Map

Major Pipeline Suppliers to Chicago Area

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

• [phone] Ext. 4818

• Fax: [phone]

• Email: [e-mail]