WPA Presentation

1
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)

4
Nicor Gas Customer Mix( of 2002 Deliveries)
2
29
Residential Commercial Industrial
41
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

6
Nicor Gas Portfolio (continued)

• 1.8 Bcf/d of pipeline transport capacity
• Remaining filled with citygate purchases

7
Nicor Gas System Map
Nicor Gas territory
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
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
• [phone] Ext. 4818
• Fax [phone]
• Email Dfox_at_nicor.com