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Naperville, IL – (November 21, 2003) – Nicor Inc. (NYSE: GAS) today reasserted its confidence in the independent report of the former U.S. Attorney Scott Lassar regarding Nicor Gas' performance based rate plan (PBR) and underscored the fact that Nicor Gas customers received the lowest gas costs in Illinois during the entire three-year period the PBR was in place (2000 – 2002). The company called overcharge claims inaccurate.
In October 2002, Nicor publicly released the independent report commissioned by the company's Board of Directors. Mr. Lassar and his team from Sidley Austin Brown & Wood, who were assisted by the accounting firm KPMG LLP, conducted a comprehensive inquiry into issues surrounding Nicor Gas' natural gas purchasing, sales, transportation and storage activities.
The report found that Nicor Gas did not engage in any criminal or fraudulent conduct. The report also found that Nicor Gas had made errors resulting in overcharges of $15 million to its customers during the period 1999 through 2001, during which time it purchased and delivered approximately $2.8 billion of natural gas. Nicor Gas' Illinois Commerce Commission (ICC) filings demonstrate that in 2002, the final year of the PBR, the utility saved its customers approximately $53 million.
In addition to charging the lowest natural gas commodity costs of any utility in Illinois during the entire PBR period, Nicor Gas' distribution charges for delivering natural gas and operating its system also were and continue to be the lowest in Illinois.
Nicor has and will continue to fully cooperate with the ICC in the PBR review, which is scheduled to continue into 2004.
Nicor Inc. (NYSE: GAS) is a holding company and is a member of the S&P 500. Its principal businesses are Nicor Gas, one of the nation's largest natural gas distribution companies, and Tropical Shipping, a containerized shipping business serving the Caribbean region. Nicor also owns several energy-related businesses and has equity interests in several energy-related businesses. For more information, visit the Nicor website at www.nicor.com.
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