Nicor Gas Suggests Customers Join the Budget Plan to Keep Household Bu

    Business Editors/Energy Editors

    NAPERVILLE, Ill.--(BUSINESS WIRE)--Jan. 3, 2005--Many New Year's resolutions are undoubtedly being made right now that involve setting a household budget for 2005, so Nicor Gas suggests that customers consider enrolling in the Budget Plan to even out the highs and lows of their gas bills throughout the year. Currently, 400,000 Nicor Gas customers are enrolled in the Budget Plan to help them manage their household budgets.
    Budget Plan is for customers who wish to spread their natural gas bills over a 12-month period. In the summer, Budget Plan payments help customers build a credit balance to offset higher winter bills. Every four months, customers' Budget Plan payments are reviewed and could be adjusted based on their current account balance and Nicor Gas' estimates of future natural gas prices.
    This is an especially good time to consider the Budget Plan in light of the continuing higher natural gas costs. In January, gas costs will be 72 cents per therm, compared to last January's 69 cents per therm, and up slightly from December's 70 cents per therm. Nicor Gas costs are in line with the U.S. Energy Information Administration (EIA), which projected that residential consumers will see an increase of 9 percent for natural gas this winter heating season.
    Customers interested in enrolling in the Budget Plan can do so online at "My Account" at the Nicor Gas web site, www.nicorgas.com/myaccount. In addition to signing up for Budget Plan at "My Account," customers can also look up their account balance and historical gas usage, sign up for e-mail reminders, Auto Payment (EFT), and Deferred Payment Arrangements. Customers who want to conduct transactions online should have their account information handy for the log-in process. For those without Internet service, call Nicor Gas' toll-free number at 1 888 Nicor4u (642-6748) to speak directly to a customer service representative.
    Natural gas prices have moderated somewhat this heating season due to moderate weather in November and early December across the country. Nationally, gas in storage has remained at levels higher than the past five-year national average. National experts are still predicting the possibility of price spikes that could impact customer bills in February and March.
    Nicor Gas has acted to help lessen the impact of these potential higher market prices by filling its underground storage to capacity, and by using financial instruments, which combined make up about three-quarters of the gas needed for this winter. Like all Illinois utilities, Nicor Gas does not profit from gas costs per regulations set by the Illinois Commerce Commission.
    The Company will continue to update customers throughout the winter about the natural gas situation in its bill mailings to customers and at www.nicorgas.com. "We're working to help moderate the costs customers pay for natural gas," Rocco D'Alessandro, senior vice president operations for Nicor Gas said, adding, "We recommend customers continue to learn about the situation, seek out financial assistance and/or enroll in payment programs. If people are having difficulty, they should know we're here to help, and they should call us right away to make payment arrangements."
    Customers who are behind in their payments may be eligible for Deferred Payment Arrangements. A down payment is required and the remainder of the outstanding balance will be spread over four months and then added to the current monthly balance. To sign up or check eligibility, visit "My Account" section of www.nicorgas.com or call Nicor Gas' toll-free number at 1 888 Nicor4u (642-6748) to speak directly to a customer service representative.
    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 and reliable natural gas services for 50 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.nicorgas.com.

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CONTACT: Nicor Gas Don Ingle, 630-388-2939 April Stevens, 630-388-2541

KEYWORD: ILLINOIS INDUSTRY KEYWORD: OIL/GAS ENERGY PRODUCT SOURCE: Nicor Gas

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