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January 3, 2001
Naperville, Ill. – With much of the nation experiencing some of the coldest December temperatures in recent years, the price of natural gas continues to rise to record levels; a trend that began as early as last spring. The root causes of the increase are complex but most experts attribute such factors as increased use of natural gas for electric generation, unseasonably cold temperatures this winter and reduced exploration and production of natural gas due to low prices in recent years. These increases in price are being seen across the United States with even greater price impacts being experienced on both the West and East coasts of the country.
Nicor Gas has filed with the Illinois Commerce Commission a January 2001 Gas Supply Charge (GSC) of 95 cents per therm. This is the charge applied to gas usage during January. Natural gas costs on bills may differ from the natural gas cost reported here because a billing period usually spans more than one calendar month. The natural gas cost for any 30-day billing period is an average based on the number of days in each of those months. The GSC represents the commodity costs Nicor Gas incurs and passes on to its customers without markup. The January 2001 GSC is more than 35 percent higher than the December 2000 GSC of 70 cents.
"Nicor is working hard to minimize gas costs for its customers while providing safe and reliable service," said Phil Cali, Executive Vice President of Operations. "We encourage our customers to conserve whatever way they can but also to consider our new Customer Support Payment Plan. This payment assistance program enables customers who fall behind on their bills this winter to spread monthly payments into smaller amounts through the summer months when bills are significantly lower, he said. In addition, we have increased support for our Sharing program, which helps low-income families and individuals on fixed income." Cali continued. "These efforts are focused on helping our valued customers cope with the hardship associated with the unavoidable higher natural gas costs."
Like other gas distribution companies, Nicor Gas passes on its gas cost purchases to customers without markup. Nicor Gas has several advantages compared to other gas distributors such as utilizing its underground storage facilities and benefiting from the direct connection to seven interstate gas pipelines delivering supplies from every major producing region in North America. These factors have historically helped keep its gas costs lower than most areas of the country.
Nicor Gas has created a special section of its Web site to provide customers with the current information on natural gas costs and interactive tools that can help manage higher home heating bills. The "Natural Gas Cost" site can be found at Nicor's home page, www.nicor.com.
Nicor Gas serves nearly two million customers in a service territory that encompasses most of the northern third of Illinois excluding the city of Chicago. The company has provided reliable gas services for more that 45 years. Nicor (NYSE: GAS) is a holding company. Its principle businesses are Nicor Gas, one of the nation's largest gas distribution companies, and Tropical Shipping, a containerized shipping business that operates between Florida and the Caribbean. Nicor also owns several energy related subsidiaries and is a partner in Nicor Energy, a provider of unregulated energy products and services. For more information, visit the Nicor Web site at www.nicor.com. | 
