UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ]Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1996
or
[ ]Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 1-7296
NORTHERN ILLINOIS GAS COMPANY
(Exact name of registrant as specified in its charter)
Illinois 36-2863847
(State of incorporation) (I.R.S. Employer
Identification No.)
1844 Ferry Road
Naperville, Illinois 60563-9600
(Address of principal (Zip Code)
executive offices)
(630) 983-8888
(Registrant's telephone number)
Registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore filing this Form with a reduced disclosure
format.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
Shares of common stock, par value $5, outstanding at October 31, 1996, were
15,232,414, all of which are owned by NICOR Inc.
Northern Illinois Gas Page i
Table of Contents
Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited) 1
Consolidated Statement of Income -
Three, Nine and Twelve Months Ended
September 30, 1996 and 1995 2
Consolidated Statement of Cash Flows -
Nine and Twelve Months Ended
September 30, 1996 and 1995 3
Consolidated Balance Sheet -
September 30, 1996 and 1995, and
December 31, 1995 4
Notes to the Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7
Part II. Other Information
Item 1. Legal Proceedings 10
Item 6. Exhibits and Reports on Form 8-K 10
Signature 11
Exhibit Index 12
Selected terms:
Ill.C.C. - Illinois Commerce Commission.
Mcf, Bcf - Thousand cubic feet, billion cubic feet.
Degree days - Number of degrees by which the daily
mean temperature falls below 65 degrees
Fahrenheit.
Northern Illinois Gas Page 1
PART I - Financial Information
Item 1. Financial Statements
The following condensed unaudited financial statements of Northern
Illinois Gas have been prepared by the company pursuant to the
rules and regulations of the Securities and Exchange Commission
(SEC). Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to SEC rules and regulations. The condensed
financial statements should be read in conjunction with the
financial statements and the notes thereto included in the
company's latest Annual Report on Form 10-K.
The information furnished reflects, in the opinion of the company,
all adjustments (consisting only of normal recurring adjustments)
necessary for a fair statement of the results for the interim
periods presented. Because of seasonal and other factors, the
results for the interim periods presented are not necessarily
indicative of the results to be expected for the full fiscal year.
<TABLE>
Northern Illinois Gas Page 2
Consolidated Statement of Income (Unaudited)
(Millions)
<CAPTION>
Three months ended Nine months ended Twelve months ended
September 30 September 30 September 30
1996 1995 1996 1995 1996 1995
<S> <C> <C> <C> <C> <C> <C>
Operating revenues $ 161.0 $ 117.5 $1,098.3 $ 895.8 $1,515.2 $1,247.1
Operating expenses
Cost of gas 68.6 46.3 664.9 527.4 924.7 737.2
Operating and maintenance 36.0 35.7 113.2 110.7 157.5 148.0
Depreciation 13.0 11.3 77.4 68.8 107.4 96.8
Taxes, other than income taxes 11.6 9.9 87.5 75.3 113.1 98.3
Income taxes 7.7 2.0 45.6 31.4 62.9 46.3
136.9 105.2 988.6 813.6 1,365.6 1,126.6
Operating income 24.1 12.3 109.7 82.2 149.6 120.5
Other income (expense)
Interest income - .3 .1 2.5 .1 2.5
Other, net - (.1) .6 .5 1.2 2.0
Income taxes on other income - (.1) (.2) (1.2) (.3) (1.7)
- .1 .5 1.8 1.0 2.8
Interest expense
Interest on debt, net of amounts
capitalized 11.2 8.3 31.4 27.8 41.6 38.6
Other .1 .1 2.4 .4 2.9 (.6)
11.3 8.4 33.8 28.2 44.5 38.0
Net income 12.8 4.0 76.4 55.8 106.1 85.3
Dividends on preferred stock .1 .1 .4 .4 .5 .6
Earnings applicable to common stock $ 12.7 $ 3.9 $ 76.0 $ 55.4 $ 105.6 $ 84.7
<F1>
Northern Illinois Gas is a wholly owned subsidiary of NICOR Inc. Earnings and dividends per share
information is therefore omitted.
<F2>
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
Northern Illinois Gas Page 3
Consolidated Statement of Cash Flows (Unaudited)
(Millions)
<CAPTION>
Nine months ended Twelve months ended
September 30 September 30
1996 1995 1996 1995
Operating activities
<S> <C> <C> <C> <C>
Net income $ 76.4 $ 55.8 $ 106.1 $ 85.3
Adjustments to reconcile net income to net
cash flow provided from operating activities:
Depreciation 77.4 68.8 107.4 96.8
Deferred income tax expense (benefit) (1.6) 2.6 .8 2.5
Change in working capital items and other:
Accounts receivable, less allowances 123.7 123.5 (40.4) 9.1
Gas in storage (72.0) 11.1 (76.1) 32.6
Deferred/accrued gas costs (33.7) 17.4 (25.2) (2.5)
Accounts payable (74.7) 1.8 (26.2) 18.0
Gas refunds due customers (24.2) 40.2 (42.5) 39.3
Accrued interest (11.9) (8.0) (4.2) (1.8)
Other (3.5) (16.8) 13.9 (5.1)
Net cash flow provided from operating activities 55.9 296.4 13.6 274.2
Investing activities
Capital expenditures (68.2) (104.1) (116.3) (156.8)
Other (.7) .3 (.7) .8
Net cash flow used for investing activities (68.9) (103.8) (117.0) (156.0)
Financing activities
Net proceeds from issuing long-term debt 74.3 - 123.8 -
Disbursements to retire long-term debt (50.0) (50.0) (50.0) (50.0)
Short-term borrowings (repayments), net 56.4 (94.6) 114.4 6.4
Dividends paid (67.3) (54.2) (84.5) (74.0)
Other (.4) (.5) (.4) (.6)
Net cash flow provided from (used for) financing
activities 13.0 (199.3) 103.3 (118.2)
Net decrease in cash and cash equivalents - (6.7) (.1) -
Cash and cash equivalents, beginning of period - 6.8 .1 .1
Cash and cash equivalents, end of period $ - $ .1 $ - $ .1
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
Northern Illinois Gas Page 4
Consolidated Balance Sheet (Unaudited)
(Millions)
<CAPTION>
September 30 December 31 September 30
Assets 1996 1995 1995
<S> <C> <C> <C>
Gas distribution plant, at cost $ 2,911.9 $ 2,851.8 $ 2,805.6
Less accumulated depreciation 1,253.4 1,182.2 1,153.1
1,658.5 1,669.6 1,652.5
Other property and investments, net of accumulated
depletion of $34.4 8.5 8.4 8.1
Current assets
Cash and cash equivalents - - .1
Accounts receivable, less allowances of $5.4,
$4.7 and $4.2, respectively 119.1 242.8 78.7
Gas in storage, at last-in, first-out cost 135.0 63.0 58.9
Deferred gas costs 42.4 8.7 17.2
Other 23.1 25.1 35.4
319.6 339.6 190.3
Other assets 68.4 69.1 57.6
$ 2,055.0 $ 2,086.7 $ 1,908.5
Capitalization and Liabilities
Capitalization
Long-term debt $ 495.9 $ 446.2 $ 396.6
Preferred stock
Redeemable 8.6 9.1 9.1
Nonredeemable 1.4 1.4 1.4
Common equity
Common stock 76.2 76.2 76.2
Paid-in capital 107.9 107.9 107.9
Retained earnings 500.6 516.0 486.3
1,190.6 1,156.8 1,077.5
Current liabilities
Long-term obligations due within one year 25.5 50.5 50.5
Short-term borrowings 208.0 151.6 93.6
Accounts payable 206.3 281.0 232.5
Accrued interest 25.5 37.4 29.7
Gas refunds due customers - 24.2 42.5
Other 30.0 14.2 22.4
495.3 558.9 471.2
Deferred credits and other liabilities
Deferred income taxes 173.2 172.8 168.8
Regulatory income tax liability 84.5 86.5 87.6
Unamortized investment tax credits 49.2 50.8 51.2
Other 62.2 60.9 52.2
369.1 371.0 359.8
$ 2,055.0 $ 2,086.7 $ 1,908.5
<F1>
The accompanying notes are an integral part of this statement.
</TABLE>
Northern Illinois Gas Page 5
Notes To The Consolidated Financial Statements (Unaudited)
ACCOUNTING POLICIES
Depreciation is calculated using a straight-line method for the calendar
year. For interim periods, depreciation is allocated based on gas
deliveries. In April 1996, the composite depreciation rate increased to
4.1 percent from 3.7 percent.
CASH FLOW INFORMATION
Income taxes paid, net of refunds, and interest paid, net of amounts
capitalized, for the periods ended September 30 were (millions):
Nine months Twelve months
1996 1995 1996 1995
Income taxes paid $49.5 $37.0 $57.5 $46.7
Interest paid 46.6 35.5 49.3 38.9
REGULATORY MATTERS
On April 3, 1996, the Ill.C.C. granted Northern Illinois Gas a $33.7 million
general rate increase, of which $12 million relates to the change in the
company's composite depreciation rate noted above. The order, effective
April 11, 1996, allows the company a rate of return on original-cost rate
base of 9.67 percent, which reflects an 11.13 percent cost of common equity.
The new rate structure will allow Northern Illinois Gas to recover a larger
proportion of its fixed costs during warmer months. The overall result is
that the company's earnings will be less sensitive to the effects of weather
and the seasonal variations in quarterly earnings will be reduced.
In May 1996, the Ill.C.C. denied requests for rehearing filed by several
parties including Northern Illinois Gas. The company and other parties have
subsequently appealed certain aspects of the Ill.C.C.'s order to the Third
District Appellate Court of Illinois.
On August 15, 1996, Northern Illinois Gas filed a performance-based rate
plan with the Ill.C.C. for gas supply costs. The filing was in response to
a recent amendment to the Illinois Public Utilities Act which allows
utilities to propose programs consisting of alternatives to traditional cost
of service regulation. Currently, natural gas supply costs are recovered
from customers without mark-up. Under the proposed program, Northern
Illinois Gas would compare its total annual gas supply costs against a
market-based benchmark, and any difference would be shared between Northern
Illinois Gas and its customers. The Ill.C.C. has up to 11 months to hold
hearings and act on the request.
LONG-TERM DEBT
On August 6, 1996, Northern Illinois Gas sold $75 million of 6.45% First
Mortgage Bonds due in 2001. The net proceeds from the sale of the bonds
replenished corporate funds which were used for the March 1996 maturity of
$50 million of 4-1/2% First Mortgage Bonds and for general corporate
purposes.
Northern Illinois Gas Page 6
Notes To The Consolidated Financial Statements (Unaudited)
(Concluded)
CONTINGENCIES
The company is involved in legal or administrative proceedings before
various courts and agencies with respect to rates, taxes and other matters.
Until the early 1950s, manufactured gas facilities were operated in the
Northern Illinois Gas service territory. Manufactured gas is now known to
have created various by-products that may still be present at these sites.
Current environmental laws may require cleanup of these former manufactured
gas plant sites. The company has identified up to 40 properties in its
service territory believed to be the location of such sites. Of these 40
properties, Northern Illinois Gas currently owns 15 and formerly owned or
leased 13. The remaining properties were never owned or leased by the
company. Information has been presented to the Illinois Environmental
Protection Agency regarding preliminary reviews of the company's currently
owned and formerly owned or leased properties. More detailed investigations
are either currently in progress or planned at many of these sites. At
certain sites, the current owners are seeking to allocate cleanup costs to
former owners or lessees, including Northern Illinois Gas.
The results of continued testing and analysis should determine to what
extent remediation is necessary and may provide a basis for estimating any
additional future costs which, based on industry experience, could be
significant. Costs are currently being recovered pursuant to Ill.C.C.
authorization.
On December 20, 1995, Northern Illinois Gas filed suit in the Circuit Court
of Cook County against certain insurance carriers. This suit seeks to
declare the insurance carriers liable under policies in effect primarily
between the years 1954 and 1985 for costs incurred or to be incurred for
environmental cleanup of former manufactured gas plant sites. Presently,
management cannot predict the timing or outcome of this lawsuit. Any
recoveries from such litigation or other sources will be flowed back to the
company's customers.
Although unable to determine the outcome of these contingencies, management
believes that appropriate accruals have been recorded. Final disposition of
these matters is not expected to have a material impact on the company's
financial condition or results of operations.
Northern Illinois Gas Page 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following discussion should be read in conjunction with the Management's
Discussion and Analysis section of the Northern Illinois Gas 1995 Annual
Report on Form 10-K.
RESULTS OF OPERATIONS
Net income for the three-, nine- and twelve-month periods ended
September 30, 1996, rose $8.8 million to $12.8 million, $20.6 million to
$76.4 million and $20.8 million to $106.1 million, respectively, from the
corresponding 1995 periods. For the three-month period, the increase was
due to the impact of the April 1996 rate case which included a 2.8 percent
general rate increase and rate design changes which shift certain revenues and
earnings from cold-weather months to warm-weather months. For the nine-
and twelve-month periods, the increase was a result of the rate case and an
increase in deliveries of natural gas, partially offset by higher
depreciation. The positive impact of the rate case and higher
deliveries on the twelve-month period was also partially offset by higher
operating and maintenance expenses.
Operating revenues increased $43.5 million, $202.5 million and $268.1
million for the three-, nine- and twelve-month periods, respectively, from
the corresponding 1995 periods. For the three-month period, the increase
was due to higher natural gas supply costs, which are recovered from
customers, and the impact of the rate case. For the nine- and twelve-
month periods, the increase was due to an increase in deliveries, higher gas
costs and the impact of the rate case. Higher deliveries were
attributable to the positive impact of colder weather, demand growth among
existing customers and customer additions.
Margin, defined as operating revenues less cost of gas and revenue taxes, is
shown in the following table for the periods ended September 30. The
improvement in each period's margin was due in large part to the positive
effect of the rate case. The impact of higher deliveries also
contributed to the increase in margin for the nine- and twelve-month
periods. Margin per Mcf delivered for each period rose primarily as a
result of the rate case.
Three months Nine months Twelve months
1996 1995 1996 1995 1996 1995
Margin (Millions) $ 84.1 $ 64.4 $359.8 $306.2 $495.9 $429.6
Margin per Mcf
delivered 1.35 1.00 .93 .86 .89 .86
Operating and maintenance expense increased $9.5 million for the twelve-
month period due primarily to higher administrative and general costs and a
higher bad debt provision.
Depreciation expense increased in each period due to the change in
the plant composite depreciation rate and plant additions. For further
information on the change in the plant composite depreciation rate, see
Accounting Policies on page 5.
Northern Illinois Gas Page 8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
RESULTS OF OPERATIONS (Concluded)
Interest income decreased in each period due to lower investment levels.
Interest on debt increased in each period due primarily to the impact of
higher borrowing levels. Other interest expense increased in the nine- and
twelve-month periods due to higher interest on income tax adjustments.
The effective income tax rate rose to 37.6 percent from 34.2 percent for the
three-month period. The third quarter 1995 effective tax rate was unusually
low due mainly to adjustments related to prior interim periods. For the
twelve-month period, the effective income tax rate rose to 37.3 percent from
36 percent due in large part to less excess deferred taxes turning around.
FINANCIAL CONDITION
Net cash flow from operating activities decreased $240.5 million and
$260.6 million for the nine- and twelve-month periods, respectively, due to
increased gas in storage, the timing of gas cost recoveries, a 1995 gas
pipeline refund and a return to normal levels of customer advance payments.
Net cash flow from operations may fluctuate widely from one interim period to
another due to the seasonal nature of Northern Illinois Gas' business.
The company generally relies on short-term financing to meet temporary working
capital needs.
The company maintains short-term credit agreements with major domestic and
foreign banks. At September 30, 1996, these agreements, which serve as
backup for the issuance of commercial paper, totaled $248 million, and the
company had $202.1 million of commercial paper outstanding. At
September 30, 1996, the unused lines of credit under these credit agreements
were $45.9 million.
On August 6, 1996, the company sold $75 million of 6.45% First Mortgage
Bonds due in 2001. The net proceeds from the sale of the bonds replenished
corporate funds which were used for the March 1996 maturity of $50 million
of 4-1/2% First Mortgage Bonds and for general corporate purposes.
REGULATORY MATTERS
On April 3, 1996, the Ill.C.C. granted Northern Illinois Gas a $33.7
million, 2.8 percent general rate increase effective April 11, 1996. On
August 15, 1996, the company filed a performance-based rate plan with the
Ill.C.C. for gas supply costs. For further information relating to these
items, see Regulatory Matters on page 5.
<TABLE>
Northern Illinois Gas Page 9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Concluded)
OPERATING STATISTICS
Changes in weather can materially affect operating results. Operating revenues, deliveries, weather statistics
and other data are presented below.
<CAPTION>
Three months ended Nine months ended Twelve months ended
September 30 September 30 September 30
1996 1995 1996 1995 1996 1995
Operating revenues (Millions):
Sales
<S> <C> <C> <C> <C> <C> <C> <C>
Residential $ 104.7 $ 72.0 $ 703.9 $ 571.5 $ 982.2 $ 803.6
Commercial 23.9 15.6 187.2 148.2 256.9 210.4
Industrial 3.4 1.6 33.9 24.6 45.1 34.6
132.0 89.2 925.0 744.3 1,284.2 1,048.6
Transportation
Commercial 7.8 6.2 38.7 34.0 55.0 45.8
Industrial 10.7 12.8 40.4 45.3 57.6 58.7
18.5 19.0 79.1 79.3 112.6 104.5
Revenue taxes and other 10.5 9.3 94.2 72.2 118.4 94.0
$ 161.0 $ 117.5 $1,098.3 $ 895.8 $1,515.2 $1,247.1
Deliveries (Bcf):
Sales
Residential 15.5 15.4 166.3 148.5 249.3 210.6
Commercial 3.7 3.6 44.8 38.9 65.2 55.7
Industrial .6 .4 8.9 6.9 12.4 9.8
19.8 19.4 220.0 194.3 326.9 276.1
Transportation
Commercial 6.3 6.4 51.4 40.8 74.6 56.9
Industrial 36.1 38.6 114.9 121.8 158.7 165.4
42.4 45.0 166.3 162.6 233.3 222.3
62.2 64.4 386.3 356.9 560.2 498.4
Gas cost per Mcf sold $ 3.27 $ 2.12 $ 2.94 $ 2.61 $ 2.75 $ 2.58
Weather statistics:
Degree days 84 93 4,088 3,785 6,414 5,562
Percent colder (warmer) than normal (5) 2 4 (4) 5 (9)
Customers at end of period (Thousands):
Sales
Residential 1,670.3 1,641.1
Commercial 139.1 139.1
Industrial 11.4 11.4
1,820.8 1,791.6
Transportation
Commercial 17.9 16.4
Industrial 2.7 2.4
20.6 18.8
1,841.4 1,810.4
</TABLE>
Northern Illinois Gas Page 10
PART II - Other Information
Item 1. Legal Proceedings
For information concerning legal proceedings, see Regulatory
Matters and Contingencies in Notes to the Consolidated Financial
Statements beginning on page 5, which are incorporated herein by
reference.
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index on page 12 filed herewith.
(b) The company did not file a report on Form 8-K during the third
quarter of 1996.
Northern Illinois Gas Page 11
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Northern Illinois Gas Company
Date November 13, 1996 By DAVID L. CYRANOSKI
David L. Cyranoski
Senior Vice President,
Secretary and Controller
Northern Illinois Gas Page 12
Exhibit Index
Exhibit
Number Description of Document
12.01 Computation of Consolidated Ratio of Earnings to Fixed Charges.
27.01 Financial Data Schedule.
<TABLE>
Northern Illinois Gas Company
Form 10-Q
Exhibit 12.01
NORTHERN ILLINOIS GAS COMPANY
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(Thousands)
<CAPTION>
Twelve
Months Ended
September 30 Year Ended December 31
1996 1995 1994 1993 1992 1991
Earnings available to cover fixed charges:
<S> <C> <C> <C> <C> <C> <C>
Net income $ 106,084 $ 85,448 $ 93,078 $ 94,935 $ 91,239 $ 91,368
Add: Income taxes 63,238 49,881 50,958 52,890 49,578 47,664
Fixed charges 44,558 39,400 37,729 40,960 41,648 40,969
Allowance for funds used
during construction (300) (911) (151) (64) (915) (700)
Total $ 213,580 $ 173,818 $ 181,614 $ 188,721 $ 181,550 $ 179,301
Fixed charges:
Interest on debt $ 41,290 $ 38,129 $ 36,726 $ 38,949 $ 39,773 $ 36,270
Other interest charges and
amortization of debt discount,
premium and expense, net 3,268 1,271 1,003 2,011 1,875 4,699
Total $ 44,558 $ 39,400 $ 37,729 $ 40,960 $ 41,648 $ 40,969
Ratio of earnings to fixed charges 4.79 4.41 4.81 4.61 4.36 4.38
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENT OF INCOME, THE CONSOLIDATED BALANCE SHEET AND THE
CONSOLIDATED STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINACIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1659
<OTHER-PROPERTY-AND-INVEST> 8
<TOTAL-CURRENT-ASSETS> 320
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 68
<TOTAL-ASSETS> 2055
<COMMON> 76
<CAPITAL-SURPLUS-PAID-IN> 108
<RETAINED-EARNINGS> 501
<TOTAL-COMMON-STOCKHOLDERS-EQ> 685
9
1
<LONG-TERM-DEBT-NET> 496
<SHORT-TERM-NOTES> 6
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 202
<LONG-TERM-DEBT-CURRENT-PORT> 25
1
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 630
<TOT-CAPITALIZATION-AND-LIAB> 2055
<GROSS-OPERATING-REVENUE> 1098
<INCOME-TAX-EXPENSE> 45
<OTHER-OPERATING-EXPENSES> 943
<TOTAL-OPERATING-EXPENSES> 988
<OPERATING-INCOME-LOSS> 110
<OTHER-INCOME-NET> 0
<INCOME-BEFORE-INTEREST-EXPEN> 110
<TOTAL-INTEREST-EXPENSE> 34
<NET-INCOME> 76
0
<EARNINGS-AVAILABLE-FOR-COMM> 76
<COMMON-STOCK-DIVIDENDS> 91
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 56
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0
<FN>
<F1>NORTHERN ILLINOIS GAS IS A WHOLLY OWNED SUBSIDIARY OF NICOR INC.
EARNINGS PER SHARE INFORMATION IS THEREFORE OMITTED.
</FN>
</TABLE>
