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
8% 1%
Sales
19%
Transportation
Industrial
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
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
Rockford
Crystal
Lake
Schaumburg
DeKalb
Oak Brook
Naperville
Joliet
Kankakee
Bloomington
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