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December 20, 2002
NAPERVILLE, Ill. - Nicor Gas today announced that it has filed with the Illinois Commerce Commission a January 2003 gas supply charge [GSC] of 54 cents per therm. The GSC is the cost Nicor Gas pays for the gas, which is passed through to customers with no mark up. The January 2003 filing compares to the unusually low and high prices of the past two years. Nicor Gas' GSC was 27 cents per therm in January 2002 and 95 cents per therm in January 2001.
"The natural gas costs that we're experiencing this winter fall between the extremes of the past two years," said Ted Lenart, Nicor Gas' Assistant Vice President of Supply Operations. "Last winter gas prices were uncharacteristically low due primarily to reduced demand because of warmer-than-normal weather. The previous year, gas prices were unusually high due to increased weather-driven demand due to nationally cold temperatures and relatively low supply levels. Gas prices are back up again this winter, but we do not expect gas bills to be as high as they were two years ago."
As Lenart explains, the commodity price for natural gas is influenced by the balance between supply and demand. Supply and demand are greatly influenced by the amount of natural gas in storage, the level of gas being produced and, most importantly, the weather. Across the country, colder-than-normal to extreme temperatures this November and December have greatly influenced the increase in natural gas usage and thus the higher prices.
Nicor Gas wants to help customers understand how this national increase in gas costs may affect their winter gas bills in the coming year. The chart that follows presents approximations for monthly gas bills for the winter months of January, February and March 2003. Estimates are based on the typical usage per home size and a GSC of 54 cents per therm for each month.
| Square Footage* |
Estimated Bill January 2003** |
Estimated Bill February 2003** |
Estimated Bill March 2003** |
| 1,000 to 1,500 |
$160 |
$130 |
$110 |
| 2,000 to 2,500 |
$180 |
$150 |
$120 |
| 3,000 to 3,500 |
$200 |
$160 |
$140 |
| |
* Assumes use of natural gas heating system or furnace, range, clothes dryer and water heater;
** Includes base distribution costs and taxes of $0.024 per therm used.
Although local gas prices mirror the national trend, unique to Nicor Gas is its strategic location. Being located in the Midwest affords Nicor Gas the ability to draw from eight major interstate natural gas pipelines. All of this helps the company keep natural gas costs down for customers.
Overall, for the past several years, Nicor Gas has had the lowest gas prices of all major Illinois utilities. Nicor Gas also has among the lowest distribution costs of natural gas utilities in Illinois and the nation.
To learn more about natural gas costs, bill payment programs, and energy conservation tips visit the Nicor Gas Web site at www.nicorgas.com or contact Nicor Gas directly at 1 888 Nicor4u.
Nicor Gas is one of the nation's largest gas distribution companies. Owned by Nicor, Inc. (NYSE: GAS) a holding company, Nicor Gas has provided safe, reliable and cost-effective natural gas services for more than 45 years. The Company serves two million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. For more information, visit the Nicor Web site at www.nicor.com. | 
