UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 2000
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission Registrant, State of Incorporation, I.R.S Employer
File Number Address and Telephone Number Identification
Number
-------------- ------------------------------------- -------------------
1-7296 Northern Illinois Gas Company 36-2863847
(Doing business as Nicor Gas Company)
(An Illinois Corporation)
1844 Ferry Road
Naperville, Illinois 60563-9600
(630) 983-8888
The 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, 2000, were
15,232,414, all of which are owned by Nicor Inc.
<PAGE>
Nicor Gas Company Page i
Table of Contents
Part I - Financial Information
Item 1. Financial Statements (Unaudited) ............................... 1
Consolidated Statement of Operations:
Three and nine months ended
September 30, 2000 and 1999 ................................... 2
Consolidated Statement of Cash Flows:
Nine months ended
September 30, 2000 and 1999 ................................... 3
Consolidated Balance Sheet:
September 30, 2000 and 1999, and
December 31, 1999 ............................................. 4
Notes to the Consolidated Financial Statements ................. 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ........................... 9
Part II - Other Information
Item 1. Legal Proceedings .............................................. 13
Item 6. Exhibits and Reports on Form 8-K ............................... 13
Signature ...................................................... 14
Exhibit Index .................................................. 15
Glossary
Degree day.....The extent to which the daily average temperature falls
below 65 degrees Fahrenheit. Normal weather for Nicor Gas'
service territory is about 6,100 degree days per year.
ICC............Illinois Commerce Commission, the agency that regulates investor-
owned Illinois utilities.
Mcf, Bcf ......Thousand cubic feet, billion cubic feet.
PBR............Performance-based rate plan, a plan that provides economic
incentives based on performance.
<PAGE>
Nicor Gas Company Page 1
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
The following condensed unaudited financial statements of Nicor 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 accounting
principles generally accepted in the United States 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. Results for the
interim periods presented are not necessarily indicative of the results to be
expected for the full fiscal year due to seasonal and other factors.
<PAGE>
Nicor Gas Company Page 2
-------------------------------------------------------------------------------
Consolidated Statement of Operations (Unaudited)
(millions)
Three months ended Nine months ended
September 30 September 30
-------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Operating revenues $ 197.6 $ 161.8 $ 1,032.1 $ 877.9
--------- --------- --------- ---------
Operating expenses
Cost of gas 95.8 61.4 598.1 464.3
Operating and maintenance 36.8 37.7 115.7 115.1
Depreciation 15.6 15.1 89.6 86.8
Taxes, other than income taxes 13.5 12.2 82.4 74.7
Other 148.0 - 148.0 -
Income tax expense (benefit) (49.7) 9.6 (16.0) 39.7
--------- --------- --------- ---------
260.0 136.0 1,017.8 780.6
--------- --------- --------- ---------
Operating income (loss) (62.4) 25.8 14.3 97.3
--------- --------- --------- ---------
Other income (expense)
Other, net 10.2 .4 13.0 2.1
Income taxes on other income (4.0) (.1) (5.0) (.7)
--------- --------- --------- ---------
6.2 .3 8.0 1.4
--------- --------- --------- ---------
Interest expense
Interest on debt, net of
amounts capitalized 10.7 9.1 30.1 29.4
Other .1 .3 .4 .1
--------- --------- --------- ---------
10.8 9.4 30.5 29.5
--------- --------- --------- ---------
Net income (loss) (67.0) 16.7 (8.2) 69.2
Dividends on preferred stock .1 .1 .3 .4
--------- --------- --------- ---------
Earnings (loss) applicable to
common stock $(67.1) $ 16.6 $ (8.5) $ 68.8
========= ========= ========= =========
The accompanying notes are an integral part of this statement.
Nicor Gas Company Page 3
-------------------------------------------------------------------------------
Consolidated Statement of Cash Flows (Unaudited)
(millions)
Nine months ended
September 30
---------------------
2000 1999
--------- ---------
Operating activities
Net income (loss) $ (8.2) $ 69.2
Adjustments to reconcile net income (loss) to net
cash flow provided from operating activities:
Depreciation 89.6 86.8
Deferred income tax expense (benefit) (14.4) 4.2
Change in assets and liabilities:
Receivables, less allowances 95.3 123.2
Gas in storage (27.0) 46.5
Deferred gas costs (65.0) (63.7)
Accounts payable 63.1 64.5
Postretirement benefits (21.1) (12.9)
Other 96.0 (16.3)
--------- ---------
Net cash flow provided from operating activities 208.3 301.5
--------- ---------
Investing activities
Capital expenditures (87.8) (83.7)
Other 5.2 (.4)
--------- ---------
Net cash flow used for investing activities (82.6) (84.1)
--------- ---------
Financing activities
Net proceeds from issuing long-term debt 49.9 99.5
Disbursements to retire long-term debt (50.0) (155.7)
Short-term borrowings (repayments), net (17.2) (111.5)
Dividends paid (79.3) (72.9)
Other (.6) (.5)
--------- ---------
Net cash flow used for financing activities (97.2) (241.1)
--------- ---------
Net increase (decrease) in cash and cash equivalents 28.5 (23.7)
Cash and cash equivalents, beginning of period 10.3 31.5
--------- ---------
Cash and cash equivalents, end of period $ 38.8 $ 7.8
========= =========
Supplemental information
Income taxes paid, net of refunds $ 43.5 $ 44.5
Interest paid, net of amounts capitalized 31.2 30.3
The accompanying notes are an integral part of this statement.
Nicor Gas Company Page 4
--------------------------------------------------------------------------------
Consolidated Balance Sheet (Unaudited)
(millions)
September 30 December 31 September 30
2000 1999 1999
---------- ----------- -----------
Assets
Gas distribution plant, at cost $ 3,262.2 $ 3,200.3 $ 3,171.3
Less accumulated depreciation 1,656.5 1,589.6 1,559.6
---------- ----------- -----------
1,605.7 1,610.7 1,611.7
---------- ----------- -----------
Current assets
Cash and cash equivalents 38.8 10.3 7.8
Receivables, less allowances of
$7.0, $6.1 and $6.3, respectively 221.2 316.5 112.9
Gas in storage, at last-in,
first-out cost 49.1 22.1 59.0
Deferred gas costs 80.9 15.9 33.8
Other 76.7 23.0 36.1
---------- ----------- -----------
466.7 387.8 249.6
---------- ----------- -----------
Other assets 154.5 138.7 134.2
---------- ----------- -----------
$ 2,226.9 $ 2,137.2 $ 1,995.5
========== =========== ===========
Capitalization and Liabilities
Capitalization
Long-term debt $ 347.0 $ 421.7 $ 421.7
Preferred stock 8.0 8.5 8.5
Common equity
Common stock 76.2 76.1 76.2
Paid-in capital 108.0 108.0 108.0
Retained earnings 398.6 491.2 486.2
---------- ----------- -----------
937.8 1,105.5 1,100.6
---------- ----------- -----------
Current liabilities
Long-term obligations due
within one year 125.5 50.5 50.5
Short-term borrowings-Affiliates 40.0 - -
-Other 245.6 302.8 103.0
Accounts payable 306.2 243.1 307.4
Dividends payable 27.1 22.1 25.2
Other 167.7 27.0 17.8
---------- ----------- -----------
912.1 645.5 503.9
---------- ----------- -----------
Deferred credits and other liabilities
Deferred income taxes 206.6 202.3 205.2
Regulatory income tax liability 71.9 74.8 75.7
Unamortized investment tax credits 41.5 42.7 42.7
Other 57.0 66.4 67.4
---------- ----------- -----------
377.0 386.2 391.0
---------- ----------- -----------
$ 2,226.9 $ 2,137.2 $ 1,995.5
========== =========== ===========
The accompanying notes are an integral part of this statement.
Nicor Gas Company Page 5
Notes to the Consolidated Financial Statements (Unaudited)
ACCOUNTING POLICIES
Weather insurance. On an interim basis, estimated weather insurance benefits are
recorded based on a comparison of actual year-to-date degree days to an
allocation of annual insured degree days. Year-to-date operating revenues
include $7.3 million of estimated insurance benefits that will partially reverse
if the weather remains normal for the remainder of the year.
Depreciation. Depreciation is calculated using a straight-line method for the
calendar year. For interim periods, depreciation is allocated based on gas
deliveries.
NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities. The company has
substantially completed an evaluation of the statement, as amended, and plans to
adopt it on January 1, 2001. Implementation is not expected to have a material
impact on the company's financial condition or results of operations.
Derivative instruments are primarily utilized in the natural gas procurement
function. Realized gains or losses are passed directly through to customers
through operation of the company's Uniform Purchased Gas Adjustment Clause
(PGA). As such, changes in the fair value of these derivative instruments will
be deferred or accrued as a regulatory asset or liability until realized.
REGULATORY MATTERS
Performance-based rate plan. On January 1, 2000, Nicor Gas' performance-based
rate (PBR) plan for natural gas costs went into effect. Under the PBR plan,
Nicor Gas' total gas supply costs will be compared to a market-sensitive
benchmark. Savings and losses relative to the benchmark will be shared equally
with customers. After two years, the plan will be subject to Illinois Commerce
Commission (ICC) review.
Results of the company's PBR plan are determined annually. On an interim basis,
the company records an estimate of results attributable to the period, and
results will likely vary from quarter to quarter. Nicor Gas recorded $5.4
million and $7.6 million of estimated PBR plan results as other income for the
three- and nine-month periods, respectively.
Customer Select(R). Customer Select is a voluntary pilot program that offers a
choice of natural gas suppliers to all commercial and industrial customers as
well as 250,000 residential customers in 16 communities. A customer's choice of
another natural gas commodity supplier has no direct impact on Nicor Gas'
operating income because natural gas costs are passed directly through to
customers without mark-up under the PGA. Nicor Gas continues to deliver the
natural gas, read meters, maintain its distribution system, ensure safety and
respond to service and emergency calls.
In September 2000, the ICC suspended for hearings Nicor Gas' request to
permanently expand the Customer Select program to include all residential
customers. The hearings may take up to 11 months to complete and are intended to
examine concerns consumer groups have raised about the program. In the interim,
the ICC has granted a company request to extend the existing pilot program for
an additional year until April 30, 2002.
<PAGE>
Nicor Gas Company Page 6
Notes to the Consolidated Financial Statements (Unaudited) (Continued)
INCOME TAXES
The overall effective income tax rate for the 2000 periods varies from its
customary level due to the effect of the unusual charge related to the mercury
program described below. Excluding the mercury charge, federal and state income
taxes were provided at Nicor Gas' more typical effective income tax rate of 37%
for the three- and nine-month periods, respectively.
LONG-TERM DEBT
In January 2000, Nicor Gas issued $50 million of adjustable rate unsecured notes
due in 2001 at an initial rate of 6.11%. The issuance funded the redemption of
$50 million of maturing unsecured 5.065% notes.
CONTINGENCIES
Mercury program. Nicor Gas has incurred, and expects to continue to incur,
significant costs related to its historical use of mercury in various kinds of
equipment.
Prior to 1961, gas regulators containing small quantities of mercury were
installed in homes. The purpose of the regulators was to reduce the pressure of
natural gas flow from the service line for use inside the home. During the third
quarter of this year, the company learned that in certain instances some mercury
was spilled or left in residences when the regulators were removed.
As a result, on September 6, 2000, Nicor Gas was named as a defendant in a civil
lawsuit brought by the Illinois Attorney General and the States Attorneys of
Cook, DuPage and Will Counties seeking, among other things, to compel the
company to inspect and clean up all homes and other sites which may have been
affected by spills of mercury from company equipment. The Cook County, Illinois,
Circuit Court hearing this action has entered two agreed preliminary injunctions
requiring Nicor Gas, among other things, to conduct inspections and, where
necessary, to clean up mercury, to pay for relocating residents until clean-up
is completed, and to pay for medical screening of potentially affected persons.
At this early stage of the process it is not possible to determine the
likelihood that the plaintiffs will seek and obtain fines or penalties.
Nicor Gas is also the subject of an Administrative Order, and an amendment
thereto, entered during the third quarter by the U.S. Environmental Protection
Agency (EPA) pursuant to Section 106 of the Comprehensive Environmental
Response, Compensation and Liabilities Act. Pursuant to that order, the company
is required, among other things, to develop and implement work plans to address
mercury spills at recycling centers where mercury regulators may have been
taken, at company reporting centers, and at other large-volume
commercial/industrial sites where mercury manometers may have been used to
measure gas pressure.
Pursuant to the injunctions and the EPA Administrative Order, Nicor Gas has
initiated the work described above. Potentially affected homes are being
inspected using mercury vapor analyzers. Nicor Gas expects to have called on
every such home by December 31, 2000, although access to some homes may not be
gained until a later date. Through November 5, 2000, approximately 780 homes
have been found to have traces of mercury requiring clean-up.
Nicor Gas Company Page 7
Notes to the Consolidated Financial Statements (Unaudited) (Continued)
Nicor Gas has also inspected all of its reporting centers where equipment
containing mercury was handled and has become aware of the presence of mercury
at nine reporting centers. Cleaning is underway at those locations. In addition,
the company is aware of four recycling centers where traces of mercury from
regulators have been discovered and is cleaning up the mercury spills. The
company has also inspected customer sites which use or previously used
mercury manometers, and the company has identified and cleaned up all 12
such sites where mercury traces have been found.
As of September 30, Nicor Gas accrued $144.9 million to other current
liabilities for estimated obligations related to the previously described work
and for legal defense costs. As a result, and including amounts already spent,
$148 million was charged to the company's income statement as other operating
expense. The accrual represents management's best estimate based on an
evaluation of currently available information. Actual costs incurred in the
future may vary from this estimate. The company will reassess its estimated
obligation at the end of each future accounting period and will record any
resulting adjustment in such period. Any such adjustment could be material to
operating results in the period in which it is recorded.
In addition to the matters described above, as of November 6, 2000, Nicor Gas
has been named a defendant in three private lawsuits, claiming a variety of
unquantified damages (including bodily injury, property and punitive damages)
allegedly caused by the presence of mercury-containing regulators inside
residences. One of the lawsuits involves five previous class actions that have
been consolidated before a single judge in Cook County, Illinois, Circuit Court.
At this early stage in the litigation, it is not possible to estimate what
liability, if any, may result to the company from these lawsuits. While no
amount has been recorded for this potential liability, a loss contingency for an
unfavorable outcome of these lawsuits will be accrued if it becomes probable and
can be reasonably estimated. Any such accrual could be material to operating
results in the period in which it is recorded.
The company has certain insurance policies, and has notified its insurers of the
claims. The company will vigorously pursue recovery of mercury-related costs
pursuant to its insurance coverage. In addition, some of the removals of
mercury-containing regulators were conducted by contractors working for the
company. The company intends to vigorously pursue its indemnification and
contribution rights against these contractors, as well as to seek insurance
recoveries under its contractors' policies. At this early stage, it is not
possible to estimate the likelihood that costs will be recovered from insurance
carriers or other third parties related to the mercury spills, and therefore
Nicor Gas has not recorded any such amounts as assets in its financial
statements.
Nicor Gas will not seek recovery of the costs associated with these mercury
spills from its customers, and any proceeds from insurance carriers or third
parties will be retained by the company to offset costs incurred.
It is management's opinion, taking into account the above information and
uncertainties, including currently available information concerning the
company's existing and potential obligations, insurance coverage, possible
recoveries from other third parties and available financial resources, that
costs associated with the mercury spills will not have a material adverse effect
on the liquidity or financial position of the company.
<PAGE>
Nicor Gas Company Page 8
Notes to the Consolidated Financial Statements (Unaudited) (Concluded)
Other. The company is involved in legal or administrative proceedings before
various courts and agencies with respect to rates, taxes and other matters.
Current environmental laws may require the clean-up of certain former
manufactured gas plant sites. To date, Nicor Gas has identified about 40
properties for which it may, in part, be responsible. The majority of these
properties are not presently owned by the company. Information regarding
preliminary site reviews has been presented to the Illinois Environmental
Protection Agency. More detailed investigations and remedial activities are
either in progress or planned at many of these sites. The results of continued
testing and analysis should determine to what extent additional remediation is
necessary and may provide a basis for estimating any additional future costs
which, based on industry experience, could be significant. In accordance with
ICC authorization, the company has been recovering these costs from its
customers.
On December 20, 1995, Nicor Gas filed suit in Cook County, Illinois, Circuit
Court against certain insurance carriers seeking recovery of environmental
clean-up costs of certain former manufactured gas plant sites. Nicor Gas has
reached a settlement with one of the insurance carriers. In February 2000, the
court dismissed the company's case on summary judgment motions by certain
defendants. The company filed an appeal in March 2000. Management cannot predict
the outcome of the lawsuit against the remaining insurance carriers. Any
recoveries will be refunded to the company's customers.
Although unable to determine the outcome of these other contingencies,
management believes that appropriate accruals have been recorded. Final
disposition of these other matters is not expected to have a material impact on
the company's financial condition or results of operations.
<PAGE>
Nicor Gas Company Page 9
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 Nicor Gas 1999 Annual Report on Form
10-K.
RESULTS OF OPERATIONS
Nicor Gas' net loss for the three and nine months ended September 30, 2000, was
$67 million and $8.2 million, respectively, compared with net income of $16.7
million and $69.2 million, respectively, for the same periods in 1999.
An unusual charge of $148 million was recorded as other operating expense in the
third quarter of 2000 related to the company's mercury inspection and repair
program described on page 6. Net income excluding the unusual charge increased
34% and 17% to $22.3 million and $81.1 million for the three- and nine-month
periods, respectively.
Operating revenues. Operating revenues for the third quarter increased $35.8
million to $197.6 million due to higher natural gas prices, which are passed
directly through to customers. Year-to-date operating revenues increased $154.2
million to $1,032.1 million as the impact of higher natural gas prices more than
offset the effect of warmer weather. Year-to-date gas distribution revenues also
include $7.3 million of estimated weather insurance benefits. The insurance
benefits will partially reverse if the weather is normal in the fourth quarter.
Margin. Margin, defined as operating revenues less cost of gas and revenue tax
expense, which are both passed directly through to customers, was essentially
unchanged for the three-month period and increased $12.1 million for the
nine-month period to $365.1 million. Improvements in the year-to-date period
reflect increased income from power-generation services and customer additions.
Although weather for the nine-month period was warmer than last year, its
adverse effect on operating results was more than offset by contributions from
the company's weather insurance coverage in 2000. The coverage ensures that the
net impact of weather in 2000 will be an improvement over 1999.
Operating and maintenance. Operating and maintenance expense for the three-month
period decreased by $.9 million to $36.8 million and increased by $.6 million
for the nine- month period to $115.7 million. Quarterly results reflect the
positive impact of lower retirement-benefit costs, which resulted principally
from favorable pension fund investment returns. Several factors, including
weather insurance premiums, more than offset the positive impact of lower
retirement-benefit costs during the nine-month period.
Other operating expense. Other operating expense in the current-year periods
reflects estimated costs associated with the company's mercury inspection and
repair program. Additional information about this program is presented under the
heading Mercury Program on page 6.
Nonoperating items. Other income increased for both periods due to property sale
gains and estimated performance-based rate (PBR) plan results.
<PAGE>
Nicor Gas Company Page 10
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
Interest on debt. Interest on debt for the three- and nine-month periods
increased due to increased average borrowings.
Income taxes. During the 2000 periods, the effective tax rate varies from its
customary level due to the effect of the mercury charge. For further
information, see Income Taxes on page 6.
FINANCIAL CONDITION AND LIQUIDITY
Operating. Net cash flow from operating activities decreased $93.2 million to
$208.3 million for the nine months ended September 30, 2000, due primarily to
changes in working capital items. Working capital can swing sharply due to
certain factors including weather, the price of gas, the timing of collections
from customers and gas purchasing practices. The company generally relies on
short-term financing to meet temporary increases in working capital needs and
presently intends to finance the mercury program with short-term debt.
Financing. The company maintains short-term credit agreements with major
domestic and foreign banks. At September 30, 2000, these agreements, which serve
as backup for the issuance of commercial paper, totaled $275 million and the
company had $245 million of commercial paper outstanding.
In January 2000, Nicor Gas issued $50 million of adjustable rate unsecured notes
due in 2001 at an initial rate of 6.11%. The issuance funded the redemption of
$50 million of maturing unsecured 5.065% notes.
FACTORS AFFECTING BUSINESS PERFORMANCE
Weather protection. Nicor Gas entered into an agreement with a third party
designed to protect the company's 2001 earnings and cash flow if weather is
warmer than 5,700 degree days, the same level as the current year's weather
insurance policy. To partially offset the cost of this warm weather
protection, Nicor Gas has also agreed to pay the third party if weather for
2001 is colder than 6,100 degree days, which is approximately normal for
Nicor Gas' service territory. As a result, this weather hedge minimizes the
earnings impact of large variations in weather.
Customer Select(R). During the third quarter of 2000, the Illinois Commerce
Commission (ICC) suspended for hearings Nicor Gas' request to permanently expand
the Customer Select program to include all residential customers. The hearings
may take up to 11 months to complete and are intended to examine concerns
consumer groups have raised about the program. In the interim, the ICC has
granted a company request to extend the existing pilot program for an additional
year until April 30, 2002. For further information see Customer Select on Page
5.
Higher natural gas prices. Natural gas prices have increased significantly
during 2000. Changes in the price of natural gas have no direct impact on Nicor
Gas' margin from gas deliveries since gas costs are passed directly through to
customers under the company's Uniform Purchased Gas Adjustment Clause.
Furthermore, while price fluctuations can affect accounts receivable
collections, customer demand, company gas usage expenses and financing costs,
any such impact has generally not been material. Higher natural gas prices also
do not significantly affect Nicor Gas' PBR plan risks, since the PBR benchmark
is tied to market prices.
<PAGE>
Nicor Gas Company Page 11
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Continued)
Mercury program. Future operating results may be impacted by adjustments to
estimated mercury program costs or recoveries, and any such adjustments could be
material. Additional information about this program is presented under the
heading Mercury Program on page 6.
OTHER
New accounting pronouncement. In June 1998, the Financial Accounting Standards
Board issued Statement No. 133, Accounting for Derivative Instruments and
Hedging Activities. The company has substantially completed an evaluation of the
impact the statement will have on the company's financial condition and results
of operations and has concluded that it will not be material. For further
information see New Accounting Pronouncement on page 5.
<PAGE>
Nicor Gas Company Page 12
-------------------------------------------------------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations (Concluded)
OPERATING STATISTICS
Changes in weather can materially affect operating statistics. Operating
revenues, deliveries, customers and other statistics are presented below.
Three months ended Nine months ended
September 30 September 30
-------------------- --------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Operating revenues (millions):
Sales
Residential $ 133.2 $ 103.6 $ 691.6 $ 576.1
Commercial 20.3 16.3 126.4 118.0
Industrial 2.8 2.4 18.1 17.4
--------- --------- --------- ---------
156.3 122.3 836.1 711.5
--------- --------- --------- ---------
Transportation
Residential 1.8 .6 4.0 .9
Commercial 13.7 12.9 54.2 49.2
Industrial 12.8 11.2 35.6 32.6
Other .9 .9 4.5 3.1
--------- --------- --------- ---------
29.2 25.6 98.3 85.8
--------- --------- --------- ---------
Other revenues
Revenue taxes 9.3 8.1 70.1 62.0
Weather insurance - - 7.3 -
Chicago Hub 1.6 3.2 3.9 5.1
Other 1.2 2.6 16.4 13.5
--------- --------- --------- ---------
12.1 13.9 97.7 80.6
--------- --------- --------- ---------
$ 197.6 $ 161.8 $ 1,032.1 $ 877.9
========= ========= ========= =========
Deliveries (Bcf):
Sales
Residential 15.4 15.1 134.3 141.9
Commercial 2.4 2.4 24.7 28.9
Industrial .3 .5 3.8 4.6
--------- --------- --------- ---------
18.1 18.0 162.8 175.4
--------- --------- --------- ---------
Transportation
Residential .5 .2 1.8 .2
Commercial 10.1 9.3 60.3 55.5
Industrial 40.3 42.4 121.7 129.4
--------- --------- --------- ---------
50.9 51.9 183.8 185.1
--------- --------- --------- ---------
69.0 69.9 346.6 360.5
========= ========= ========= =========
Customers at end of period (thousands):
Sales
Residential 1,726.3 1,733.7
Commercial 93.9 104.0
Industrial 6.2 7.0
--------- ---------
1,826.4 1,844.7
--------- ---------
Transportation
Residential 54.1 16.6
Commercial 70.6 58.4
Industrial 7.5 6.7
--------- ---------
132.2 81.7
--------- ---------
1,958.6 1,926.4
========= =========
Other statistics:
Degree days 79 67 3,283 3,441
Colder (warmer) than normal (10)% (24)% (17)% (13)%
Average gas cost per Mcf sold $ 5.20 $ 3.31 $ 3.63 $ 2.61
Nicor Gas Company Page 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
For information concerning legal proceedings, see Regulatory Matters on page 5
and Contingencies beginning on page 6, which are incorporated herein by
reference.
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index on page 15 filed herewith.
(b) The company did not file a report on Form 8-K during the third
quarter of 2000.
<PAGE>
Nicor Gas Company Page 14
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.
Nicor Gas Company
Date November 7, 2000 By KATHLEEN L. HALLORAN
------------------ --------------------------------
Kathleen L. Halloran
Executive Vice President
Finance and Administration
and Secretary
<PAGE>
Nicor Gas Company Page 15
Exhibit Index
Exhibit
Number Description of Document
------- ------------------------------------------------------------------
12.01 Computation of Consolidated Ratio of Earnings to Fixed Charges.
27.01 Financial Data Schedule.
