Central Desk Hunter Shively Overview b Regional Characteristics

Central Desk Hunter Shively

Overview b Regional Characteristics b PGL&C Transaction b Chicago Office (Midwest Hub) b Generation Impact

Daily Midwest Consumption Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin The combined total for each year is an average of 10. 4 BCF/Day

Daily Illinois Consumption The combined total for each year is an average of 2. 8 BCF/Day

Daily Michigan Consumption The combined total for each year is an average of 2. 5 BCF/Day

Large LDC profiles b Nicor b Consumers b Michcon b NIPSCO b Peoples Energy 1. 3 bcf/day 1. 0 bcf/day. 8 bcf/day. 7 bcf/day

Nicor Gas Company b 3 rd largest LDC throughput in the United States b Average daily winter load of 2. 2 Bcf/day b Record load of 4. 6 Bcf on January 18, 1994

Nicor Assets b 1. 6 Bcf/day of transportation b 144 Bcf of company owned storage b 39 Bcf of leased storage b Company owned storage has a daily peak delivery of 2. 8 Bcf

Nicor Gas Service Territory

Consumers and Michcon b Company owned storage Michcon 155 Bcf Consumers 150 Bcf b Consumers and Michcon combine for 1. 9 Bcf of Michigan’s 2. 5 Bcf of daily load

Peoples Energy b Service territory is the city of Chicago b peak design day is 2. 9 BCF/day

Average Daily Load by Month

Manlove Storage Complex b 120 miles south of Chicago b 34 BCF water aquifer facility b LNG facility that stores 2 BCF b Normal withdrawals begin in December b Physical nature of the field requires that when the field starts withdrawals, 5 BCF must be withdrawn in 17 days b Peak deliverability of 1 BCF/day

Other Assets b Propane peaking facility b Leased storage NGPL 29 BCF ANR 10 BCF PEPL 2. 5 BCF

Peoples Transaction b Five Year Deal that started in October 1999 b Monthly Baseload Volume sold and priced at the Chicago City Gate b Peoples’ transportation contracts are released to ENA b Peoples sold April-November physical Straddles b Peoples sold December-March financial calls

Peoples Daily Swing Rights b Gas Daily Priced b Peoples can call daily priced gas up to the amount of transportation contracts released to ENA b Peoples can put 200, 000/day

Monthly Volume, Transportation, and Call Rights

Key benefits of the deal b Large presence in Chicago b Transportation wheeling b Information Daily Burn ENA helps Peoples make decisions Other Utilities share info with Peoples b Hub Partnership

Enron / Peoples Joint Venture b Office is across the street from Peoples b Comprised of Enron and Peoples employees b Most of the Peoples employees have job responsibilities with the Hub and Utility b The JV’s primary purpose is to optimize the excess assets of the utility

Assets held by HUB b 16. 5 BCF of NGPL Field area storage b 7. 5 BCF of Manlove storage b 1 BCF of Propane (230, 000/day deliverability) b Hub can optimize all utility owned assets

Benefits of JV to Trading Group b Information b ENA can originate transactions with other utilities b ENA can use assets that it does not own or lease

2000 and 2001 MAIN Additions

EIA Proposed Power Additions