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| [X]    | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------|
|   | For the fiscal year ended December 31, 2010                                          |

| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------|------------------------------------------------------------------------------------------|
|                 |                                                                                     |

| Illinois                                                      |   | 36-2863847                                                 |
|---------------------------------------------------------------|--------|------------------------------------------------------------|
| (State of Incorporation)                                      |   | (I.R.S. Employer Identification No.)                       |
|                                                          |   |                                                       |
| 1844 Ferry Road                                               |   |                                                       |
|      Naperville, Illinois 60563-9600 |   | (630) 983-8888                                             |
| (Address of principal executive offices) (Zip Code)           |   | (Registrant’s telephone number, including area code) |

| Large accelerated filer    [  ] | Accelerated filer                     [  ] |
|---------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                          |                                                                                                                                                          |
| Non-accelerated filer      [X]  | Smaller reporting company   [  ]                                                                                                     |

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| Item No. | Description                                                                                                        | Page No. |
|----------|--------------------------------------------------------------------------------------------------------------------|----------|
|     |                                                                                                               |     |
|     | Glossary                                                                                                           | ii       |
|     |                                                                                                               |     |
|     | Part I                                                                                                             |     |
| 1.       | Business                                                                                                           | 1        |
| 1A.      | Risk Factors                                                                                                       | 5        |
| 1B.      | Unresolved Staff Comments                                                                                          | 13       |
| 2.       | Properties                                                                                                         | 13       |
| 3.       | Legal Proceedings                                                                                                  | 13       |
| 4.       | (Removed and Reserved)                                                                                             | 13       |
|     |                                                                                                               |     |
|     | Part II                                                                                                            |     |
| 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 15       |
| 6.       | Selected Financial Data                                                                                            | *        |
| 7.       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 15       |
| 7A.      | Quantitative and Qualitative Disclosures About Market Risk                                                         | 30       |
| 8.       | Financial Statements and Supplementary Data                                                                        | 31       |
| 9.       | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 63       |
| 9A.      | Controls and Procedures                                                                                            | 63       |
| 9B.      | Other Information                                                                                                  | 64       |
|     |                                                                                                               |     |
|     | Part III                                                                                                           |     |
| 10.      | Directors, Executive Officers and Corporate Governance                                                             | *        |
| 11.      | Executive Compensation                                                                                             | *        |
| 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | *        |
| 13.      | Certain Relationships and Related Transactions, and Director Independence                                          | *        |
| 14.      | Principal Accounting Fees and Services                                                                             | 65       |
|     |                                                                                                               |     |
|     | Part IV                                                                                                            |     |
| 15.      | Exhibits, Financial Statement Schedules                                                                            | 66       |
|     | Signatures                                                                                                         | 68       |
|     | Supplemental Information                                                                                           | 69       |
|     | Exhibit Index                                                                                                      | 70       |

| * | The Registrant meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is therefore omitting the information called for by the otherwise required item. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Glossary

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| Item 1. | Business |
|---------|----------|

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| ·   | Base rates, which are set by the ICC, are designed to allow the company an opportunity to recover its costs and earn a fair return for investors.  On March 25, 2009, the ICC issued an order approving an increase in Nicor Gas’ base revenues of approximately $69 million, a rate of return on rate base of 7.58 percent and a rate of return on equity of 10.17 percent.  On October 7, 2009, the ICC increased the annual base revenues approved for Nicor Gas in the March 25, 2009 order by approximately $11 million as a result of a rehearing decision and increased the rate of return on rate base to 8.09 percent.  Therefore, the total annual base revenue increase resulting from these ICC orders is approximately $80 million.  For additional information about the rate proceeding, see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8 – Notes to the Consolidated Financial Statements – Note 14 – Regulatory Proceedings. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The company’s ICC-approved tariffs provide that the cost of natural gas purchased for customers will be fully charged to customers without markup.  Therefore, the company does not profit from the sale of natural gas.  Rather, the company earns income from fixed monthly charges and from variable transportation charges for delivering natural gas to customers.  Annually, the ICC initiates a review of the company’s natural gas purchasing practices for prudence, and may disallow the pass-through of |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The company has ICC-approved tariffs that provide for the pass-through of prudently incurred environmental costs related to the remediation of former manufactured gas plant sites.  Manufactured gas plants were used in the 1800’s and early to mid 1900’s to produce manufactured gas from coal, creating a coal tar byproduct.  Current environmental laws may require the cleanup of coal tar at certain of these sites.  As of December 31, 2010, the company had recorded a liability in connection with these matters of $28.7 million.  These costs are subject to annual ICC review.  For additional information on the company’s obligation for manufactured gas plants, see Item 8 – Notes to the Consolidated Financial Statements – Note 16 – Contingencies – Manufactured Gas Plant Sites. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On February 2, 2010, the ICC approved a bad debt rider which provides for the recovery from (or refund to) customers of the difference between Nicor Gas’ actual bad debt experience on an annual basis and the benchmark bad debt expense included in its base rates for the respective year.  For additional information about the bad debt rider, see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8 – Notes to the Consolidated Financial Statements – Note 14 – Regulatory Proceedings. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As part of the rate order issued in 2009, the ICC approved an energy efficiency rider to fund the costs of energy savings programs.  Pursuant to an Illinois law enacted in 2009 that requires local gas distribution utilities to establish plans to achieve specified energy savings goals beginning in June 2011, Nicor Gas filed an application with the ICC seeking approval of a new energy efficiency plan on September 29, 2010.  The law provides utilities with a rider to collect the costs of the plan from customers.  Under its proposed plan, the company estimates that it would bill nearly $100 million to customers under the rider, over a three year period commencing June 1, 2011, to fund the costs of various energy savings programs identified in the company’s filing.  This new energy efficiency plan rider will replace the rider currently in effect.  The costs under these riders are subject to annual ICC review. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On July 1, 2009, Nicor Gas filed a petition seeking re-approval from the ICC of the operating agreement that governs many inter-company transactions between Nicor Gas and its affiliates.  The petition was filed pursuant to a requirement contained in the ICC order approving the company’s most recent general rate increase and requested that the operating agreement be re-approved without change.  For additional information regarding this proceeding, see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On January 18, 2011, AGL Resources, Nicor and Nicor Gas filed a joint application with the ICC seeking approval of the merger of AGL Resources and Nicor and other approvals relating to the merger.  For additional information regarding this proceeding, see Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 1A.  

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| ·   | the company would not realize the anticipated benefits of the merger, including increased operating efficiencies; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | the attention of Nicor Gas’ management may have been diverted to the merger rather than to its own operations and the pursuit of other opportunities that could have been beneficial to the company; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the potential loss of key personnel during the pendency of the merger as employees may experience uncertainty about their future roles with the combined company; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nicor Gas will have been subject to certain restrictions on the conduct of its business, which may prevent it from making certain acquisitions or dispositions or pursuing certain business opportunities while the merger is pending. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1B. | Unresolved Staff Comments |
|----------|---------------------------|

Item 2.  

Item 3.  

Item 4.   

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| Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|---------|--------------------------------------------------------------------------------------------------------------------|

| Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

|             |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|             |   |   |   |   |   |   |   |   |   |
| Operating income |   | $      | 136.4  |   |   | $      | 111.3  |   |   | $ | 96.3 |   |
|             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income       |   | $      | 100.9  |   |   | $      | 75.0   |   |   | $ | 59.6 |   |

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|                |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|---------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                |   |   |     |   |   |   |     |   |   |
| Revenues            |   | $      | 2,204.4  |   |   | $      | 2,140.8  |   |   | $ | 3,206.9 |   |
| Cost of gas         |   |   | (1,364.1 | )      |   |   | (1,345.7 | )      |   |   | (2,427.8 | ) |
| Revenue tax expense |   |   | (145.9   | )      |   |   | (148.1   | )      |   |   | (171.1 | ) |
| Margin              |   | $      | 694.4    |   |   | $      | 647.0    |   |   | $ | 608.0 |   |

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| Nicor Gas Company                                                                                                                                                                           |   |   |    |   |   |   |    |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Operating Statistics                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |
|                                                                                                                                                                                        |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |
| Operating revenues (millions)                                                                                                                                                               |   |   |    |   |   |   |    |   |   |
| Sales                                                                                                                                                                                       |   |   |    |   |   |   |    |   |   |
| Residential                                                                                                                                                                                 |   | $      | 1,443.9 |   |   | $      | 1,377.9 |   |   | $ | 2,176.2 |   |
| Commercial                                                                                                                                                                                  |   |   | 355.9   |   |   |   | 350.4   |   |   |   | 551.4 |   |
| Industrial                                                                                                                                                                                  |   |   | 39.9    |   |   |   | 38.2    |   |   |   | 61.9 |   |
|                                                                                                                                                                                        |   |   | 1,839.7 |   |   |   | 1,766.5 |   |   |   | 2,789.5 |   |
| Transportation                                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential                                                                                                                                                                                 |   |   | 46.3    |   |   |   | 47.1    |   |   |   | 40.9 |   |
| Commercial                                                                                                                                                                                  |   |   | 75.1    |   |   |   | 79.1    |   |   |   | 82.2 |   |
| Industrial                                                                                                                                                                                  |   |   | 40.3    |   |   |   | 39.4    |   |   |   | 38.3 |   |
| Other                                                                                                                                                                                       |   |   | 1.7     |   |   |   | 4.1     |   |   |   | 25.7 |   |
|                                                                                                                                                                                        |   |   | 163.4   |   |   |   | 169.7   |   |   |   | 187.1 |   |
| Other revenues                                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Revenue taxes                                                                                                                                                                               |   |   | 148.1   |   |   |   | 150.3   |   |   |   | 174.0 |   |
| Environmental cost recovery                                                                                                                                                                 |   |   | 10.7    |   |   |   | 12.5    |   |   |   | 9.7 |   |
| Chicago Hub                                                                                                                                                                                 |   |   | 4.1     |   |   |   | 7.7     |   |   |   | 11.3 |   |
| Other                                                                                                                                                                                       |   |   | 38.4    |   |   |   | 34.1    |   |   |   | 35.3 |   |
|                                                                                                                                                                                        |   |   | 201.3   |   |   |   | 204.6   |   |   |   | 230.3 |   |
|                                                                                                                                                                                        |   | $      | 2,204.4 |   |   | $      | 2,140.8 |   |   | $ | 3,206.9 |   |
|                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Deliveries (Bcf)                                                                                                                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
| Sales                                                                                                                                                                                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential                                                                                                                                                                                 |   |   | 188.2   |   |   |   | 199.8   |   |   |   | 214.4 |   |
| Commercial                                                                                                                                                                                  |   |   | 49.0    |   |   |   | 52.7    |   |   |   | 54.7 |   |
| Industrial                                                                                                                                                                                  |   |   | 6.0     |   |   |   | 6.3     |   |   |   | 6.4 |   |
|                                                                                                                                                                                        |   |   | 243.2   |   |   |   | 258.8   |   |   |   | 275.5 |   |
| Transportation                                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential                                                                                                                                                                                 |   |   | 22.8    |   |   |   | 25.4    |   |   |   | 25.6 |   |
| Commercial                                                                                                                                                                                  |   |   | 83.3    |   |   |   | 89.6    |   |   |   | 93.1 |   |
| Industrial                                                                                                                                                                                  |   |   | 104.7   |   |   |   | 102.1   |   |   |   | 103.9 |   |
|                                                                                                                                                                                        |   |   | 210.8   |   |   |   | 217.1   |   |   |   | 222.6 |   |
|                                                                                                                                                                                        |   |   | 454.0   |   |   |   | 475.9   |   |   |   | 498.1 |   |
|                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Year-end customers (thousands)                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Sales                                                                                                                                                                                       |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential                                                                                                                                                                                 |   |   | 1,788   |   |   |   | 1,763   |   |   |   | 1,760 |   |
| Commercial                                                                                                                                                                                  |   |   | 134     |   |   |   | 132     |   |   |   | 130 |   |
| Industrial                                                                                                                                                                                  |   |   | 8       |   |   |   | 8       |   |   |   | 8 |   |
|                                                                                                                                                                                        |   |   | 1,930   |   |   |   | 1,903   |   |   |   | 1,898 |   |
| Transportation                                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential                                                                                                                                                                                 |   |   | 206     |   |   |   | 218     |   |   |   | 222 |   |
| Commercial                                                                                                                                                                                  |   |   | 48      |   |   |   | 50      |   |   |   | 53 |   |
| Industrial                                                                                                                                                                                  |   |   | 4       |   |   |   | 5       |   |   |   | 5 |   |
|                                                                                                                                                                                        |   |   | 258     |   |   |   | 273     |   |   |   | 280 |   |
|                                                                                                                                                                                        |   |   | 2,188   |   |   |   | 2,176   |   |   |   | 2,178 |   |
|                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| Other statistics                                                                                                                                                                            |   |   |    |   |   |   |    |   |   |   |   |   |
| Degree days                                                                                                                                                                                 |   |   | 5,720   |   |   |   | 6,106   |   |   |   | 6,348 |   |
| Colder than normal (1)                                                                                                                                                                      |   |   | 2%      |   |   |   | 9%      |   |   |   | 9% |   |
| Average gas cost per Mcf sold                                                                                                                                                               |   | $      | 5.49    |   |   | $      | 5.06    |   |   | $ | 8.76 |   |
|                                                                                                                                                                                        |   |   |    |   |   |   |    |   |   |   |   |   |
| (1) Normal weather for Nicor Gas' service territory, for purposes of this report, is considered to be 5,600 degree days per year for 2010 and 2009 and 5,830 degree days per year for 2008. |   |

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| ·   | a decrease of $155.1 million from changes in receivables due to higher receivable balances at the end of 2008 versus 2009; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | a decrease of $87.2 million from changes in margin accounts related to derivative instruments due to the decline in gas prices. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase of $222.8 million from changes in receivables due to higher receivable balances at the end of 2008 versus 2009; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase of $198.6 million from changes in margin accounts related to derivative instruments due to the decline in gas prices. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

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|                    |   | Standard& Poor’s |   | Moody’s |   | Fitch  |
|-------------------------|--------|----------------------------|--------|---------------|--------|--------|
|                    |   |                       |   |          |   |   |
| Commercial Paper        |   | A-1+                       |   | P-1           |   | F-1    |
| Senior Secured Debt     |   | AA                         |   |  Aa3     |   | AA-    |
| Senior Unsecured Debt   |   | AA                         |   | A2            |   | A+     |
| Corporate Credit Rating |   | AA                         |   | n/a           |   | n/a    |

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|                             |   | Payments due by period |   |
|----------------------------------|--------|------------------------|--------|
|                             |   | Lessthan 1year         |   |   | 1-3years |   |   | 3-5years |   |   | Morethan 5years |   |   | Total |   |
|                             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase obligations             |   | $                      | 366.4  |   |   | $ | 225.4 |   |   | $ | 29.0 |   |   | $ | 4.4 |   |   | $ | 625.2 |   |
| Long-term debt                   |   |                   | 75.0   |   |   |   | - |   |   |   | - |   |   |   | 425.0 |   |   |   | 500.0 |   |
| Fixed interest on long-term debt |   |                   | 26.1   |   |   |   | 51.3 |   |   |   | 51.3 |   |   |   | 342.7 |   |   |   | 471.4 |   |
| Operating leases                 |   |                   | 1.0    |   |   |   | 1.4 |   |   |   | 1.3 |   |   |   | .5 |   |   |   | 4.2 |   |
| Other long-term obligations      |   |                   | .3     |   |   |   | .5 |   |   |   | .5 |   |   |   | .5 |   |   |   | 1.8 |   |
|                             |   | $                      | 468.8  |   |   | $ | 278.6 |   |   | $ | 82.1 |   |   | $ | 773.1 |   |   | $ | 1,602.6 |   |

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| Actuarial assumption          |   | Increase (decrease) |   |   | Effect on net benefit cost |       |
|-------------------------------|--------|---------------------|--------|--------|----------------------------|------------|
|                          |   |                |   |   |                       |       |
| Discount rate                 |   |  1.0           | %      |   |                       | $(6.2      | ) |   |
|                          |   |  (1.0          | %)     |   |                       |  7.4  |   |   |
| Rate of return on plan assets |   |  1.0           | %      |   |                       |  (3.5 | ) |   |
|                          |   |  (1.0          | %)     |   |                       |  3.5  |   |   |

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| ·   | the possibility that the company’s business may suffer as a result of the uncertainty surrounding the merger; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | the possibility that AGL Resources and Nicor will not receive the regulatory approvals required to complete the merger or that the merger will not be consummated for other reasons; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the possibility of adverse decisions in pending and potential state and federal class action lawsuits, including five shareholder suits, relating to the merger; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the possibility that the company may not be able to maintain relationships with its employees, suppliers, or customers as a result of the uncertainty surrounding the merger. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 7A.

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| Item 8.                                                 |  Financial Statements and Supplementary Data     |   |
|---------------------------------------------------------|-------------------------------------------------------|--------|
|                                                    |                                                  |   |
|                                                    |                                                  | Page   |
|                                                    |                                                  |   |
| Report of Independent Registered Public Accounting Firm | 32                                                    |
|                                                    |                                                  |   |
| Financial Statements:                                   |                                                  |
|                                                    |                                                  |   |
|                                                    |  Consolidated Statements of Income               | 34     |
|                                                    |                                                  |   |
|                                                    |  Consolidated Statements of Cash Flows           | 35     |
|                                                    |                                                  |   |
|                                                    |  Consolidated Balance Sheets                     | 36     |
|                                                    |                                                  |   |
|                                                    |  Consolidated Statements of Retained Earnings    | 38     |
|                                                    |                                                  |   |
|                                                    |  Consolidated Statements of Comprehensive Income | 38     |
|                                                    |                                                  |   |
|                                                    |  Notes to the Consolidated Financial Statements  | 39     |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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| Nicor Gas Company                                                                      |   |                   |    |   |   |   |    |   |   |
|----------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|--------|--------|
| Consolidated Statements of Income                                                      |   |                   |    |   |   |   |    |   |   |
| (millions)                                                                             |   |                   |    |   |   |   |    |   |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |
|                                                                                   |   | Year ended December 31 |    |
|                                                                                   |   | 2010                   |    |   | 2009   |   |    | 2008   |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |
| Operating revenues (includes revenue taxes of $148.1, $150.3 and $174.0, respectively) |   | $                      | 2,204.4 |   |   | $      | 2,140.8 |   |   | $ | 3,206.9 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| Operating expenses                                                                     |   |                   |    |   |   |   |    |   |   |   |   |   |
| Cost of gas                                                                            |   |                   | 1,364.1 |   |   |   | 1,345.7 |   |   |   | 2,427.8 |   |
| Operating and maintenance                                                              |   |                   | 298.4   |   |   |   | 298.9   |   |   |   | 293.0 |   |
| Depreciation                                                                           |   |                   | 183.6   |   |   |   | 177.4   |   |   |   | 170.9 |   |
| Taxes, other than income taxes                                                         |   |                   | 164.6   |   |   |   | 167.6   |   |   |   | 189.4 |   |
| Mercury-related                                                                        |   |                   | (1.3    | )      |   |   | -       |   |   |   | .6 |   |
| Income tax expense                                                                     |   |                   | 58.6    |   |   |   | 39.9    |   |   |   | 28.9 |   |
|                                                                                   |   |                   | 2,068.0 |   |   |   | 2,029.5 |   |   |   | 3,110.6 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| Operating income                                                                       |   |                   | 136.4   |   |   |   | 111.3   |   |   |   | 96.3 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| Other income (expense)                                                                 |   |                   |    |   |   |   |    |   |   |   |   |   |
| Property sale gains                                                                    |   |                   | 1.3     |   |   |   | -       |   |   |   | .8 |   |
| Interest income                                                                        |   |                   | .8      |   |   |   | 1.5     |   |   |   | 5.5 |   |
| Other income                                                                           |   |                   | 1.3     |   |   |   | 1.1     |   |   |   | .8 |   |
| Other expense                                                                          |   |                   | (1.6    | )      |   |   | (1.6    | )      |   |   | (1.9 | ) |
| Income tax expense on other income                                                     |   |                   | (.7     | )      |   |   | (.4     | )      |   |   | (2.1 | ) |
|                                                                                   |   |                   | 1.1     |   |   |   | .6      |   |   |   | 3.1 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| Interest expense                                                                       |   |                   |    |   |   |   |    |   |   |   |   |   |
| Interest on debt, net of amounts capitalized                                           |   |                   | 36.3    |   |   |   | 34.3    |   |   |   | 36.6 |   |
| Other                                                                                  |   |                   | .3      |   |   |   | 2.6     |   |   |   | 3.2 |   |
|                                                                                   |   |                   | 36.6    |   |   |   | 36.9    |   |   |   | 39.8 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| Net income                                                                             |   | $                      | 100.9   |   |   | $      | 75.0    |   |   | $ | 59.6 |   |
|                                                                                   |   |                   |    |   |   |   |    |   |   |   |   |   |
| The accompanying notes are an integral part of these statements.                       |   |                   |    |   |   |   |    |   |   |

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Table of Contents

| Nicor Gas Company                                                                                   |   |                   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|
| Consolidated Statements of Cash Flows                                                               |   |                   |   |   |   |   |   |   |   |
| (millions)                                                                                          |   |                   |   |   |   |   |   |   |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |
|                                                                                                |   | Year ended December 31 |   |
|                                                                                                |   | 2010                   |   |   | 2009   |   |   | 2008   |   |
| Operating activities                                                                                |   |                   |   |   |   |   |   |   |   |
| Net income                                                                                          |   | $                      | 100.9  |   |   | $      | 75.0   |   |   | $ | 59.6 |   |
| Adjustments to reconcile net income to net cash flow provided from (used for) operating activities: |   |                   |   |   |   |
| Depreciation                                                                                        |   |                   | 183.6  |   |   |   | 177.4  |   |   |   | 170.9 |   |
| Deferred income tax expense                                                                         |   |                   | 22.7   |   |   |   | 25.8   |   |   |   | 3.0 |   |
| Changes in assets and liabilities:                                                                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Receivables, less allowances                                                                        |   |                   | 23.1   |   |   |   | 178.2  |   |   |   | (44.6 | ) |
| Gas in storage                                                                                      |   |                   | (14.5  | )      |   |   | 69.0   |   |   |   | (60.8 | ) |
| Deferred/accrued gas costs                                                                          |   |                   | 21.4   |   |   |   | 24.7   |   |   |   | (104.1 | ) |
| Derivative instruments                                                                              |   |                   | (13.9  | )      |   |   | (77.7  | )      |   |   | 136.7 |   |
| Margin accounts - derivative instruments                                                            |   |                   | (2.3   | )      |   |   | 84.9   |   |   |   | (113.7 | ) |
| Pension benefits                                                                                    |   |                   | (15.1  | )      |   |   | (21.5  | )      |   |   | 179.1 |   |
| Regulatory postretirement asset                                                                     |   |                   | 1.6    |   |   |   | 39.6   |   |   |   | (186.3 | ) |
| Other assets                                                                                        |   |                   | 20.8   |   |   |   | 8.5    |   |   |   | (60.5 | ) |
| Accounts payable                                                                                    |   |                   | (27.2  | )      |   |   | (47.5  | )      |   |   | (9.8 | ) |
| Customer credit balances and deposits                                                               |   |                   | (31.1  | )      |   |   | (45.6  | )      |   |   | (47.2 | ) |
| Health care and other postretirement benefits                                                       |   |                   | 31.3   |   |   |   | 3.5    |   |   |   | 12.2 |   |
| Other liabilities                                                                                   |   |                   | 31.5   |   |   |   | (1.9   | )      |   |   | (2.4 | ) |
| Other items                                                                                         |   |                   | (11.5  | )      |   |   | (9.8   | )      |   |   | (4.0 | ) |
| Net cash flow provided from (used for) operating activities                                         |   |                   | 321.3  |   |   |   | 482.6  |   |   |   | (71.9 | ) |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Investing activities                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Additions to property, plant and equipment                                                          |   |                   | (187.4 | )      |   |   | (192.7 | )      |   |   | (230.0 | ) |
| Other investing activities                                                                          |   |                   | 4.7    |   |   |   | 5.0    |   |   |   | 7.3 |   |
| Net cash flow used for investing activities                                                         |   |                   | (182.7 | )      |   |   | (187.7 | )      |   |   | (222.7 | ) |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Financing activities                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from issuing long-term debt                                                                |   |                   | -      |   |   |   | 50.0   |   |   |   | 75.0 |   |
| Disbursements to retire long-term obligations                                                       |   |                   | (.5    | )      |   |   | (50.5  | )      |   |   | (75.5 | ) |
| Net issuances (repayments) of commercial paper                                                      |   |                   | (69.0  | )      |   |   | (223.9 | )      |   |   | 348.9 |   |
| Net proceeds of loan from affiliates                                                                |   |                   | 40.0   |   |   |   | -      |   |   |   | - |   |
| Dividends paid                                                                                      |   |                   | (106.0 | )      |   |   | (69.7  | )      |   |   | (50.9 | ) |
| Other financing activities                                                                          |   |                   | (3.6   | )      |   |   | (2.5   | )      |   |   | (1.2 | ) |
| Net cash flow provided from (used for) financing activities                                         |   |                   | (139.1 | )      |   |   | (296.6 | )      |   |   | 296.3 |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                |   |                   | (.5    | )      |   |   | (1.7   | )      |   |   | 1.7 |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of year                                                        |   |                   | .6     |   |   |   | 2.3    |   |   |   | .6 |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents, end of year                                                              |   | $                      | .1     |   |   | $      | .6     |   |   | $ | 2.3 |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| Supplemental information                                                                            |   |                   |   |   |   |   |   |   |   |   |   |   |
| Income taxes paid, net                                                                              |   | $                      | 22.0   |   |   | $      | 6.3    |   |   | $ | 49.3 |   |
| Interest paid, net of amounts capitalized                                                           |   |                   | 28.3   |   |   |   | 31.4   |   |   |   | 50.8 |   |
|                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these statements.                                    |   |                   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

| Nicor Gas Company                                                |   |        |    |   |   |   |
|------------------------------------------------------------------|--------|-------------|---------|--------|--------|--------|
| Consolidated Balance Sheets                                      |   |        |    |   |   |   |
| (millions)                                                       |   |        |    |   |   |   |
|                                                             |   |        |    |   |   |   |
| ASSETS                                                           |   |        |    |   |   |   |
|                                                             |   | December 31 |    |
|                                                             |   | 2010        |    |   | 2009   |   |
|                                                             |   |        |    |   |   |   |
| Gas distribution plant, at cost                                  |   | $           | 4,733.6 |   |   | $      | 4,598.2 |   |
| Less accumulated depreciation                                    |   |        | 1,879.1 |   |   |   | 1,803.4 |   |
| Gas distribution plant, net                                      |   |        | 2,854.5 |   |   |   | 2,794.8 |   |
|                                                             |   |        |    |   |   |   |   |   |
| Current assets                                                   |   |        |    |   |   |   |   |   |
| Cash and cash equivalents                                        |   |        | .1      |   |   |   | .6 |   |
| Receivables, less allowances of $25.2 and $30.8, respectively    |   |        | 378.4   |   |   |   | 398.9 |   |
| Receivables - affiliates                                         |   |        | 9.5     |   |   |   | 12.1 |   |
| Gas in storage                                                   |   |        | 119.2   |   |   |   | 104.7 |   |
| Derivative instruments                                           |   |        | 7.4     |   |   |   | 4.7 |   |
| Margin accounts - derivative instruments                         |   |        | 49.8    |   |   |   | 43.6 |   |
| Other                                                            |   |        | 98.7    |   |   |   | 144.4 |   |
| Total current assets                                             |   |        | 663.1   |   |   |   | 709.0 |   |
|                                                             |   |        |    |   |   |   |   |   |
| Regulatory postretirement asset                                  |   |        | 193.3   |   |   |   | 195.4 |   |
| Other assets                                                     |   |        | 144.0   |   |   |   | 130.5 |   |
|                                                             |   |        |    |   |   |   |   |   |
| Total assets                                                     |   | $           | 3,854.9 |   |   | $      | 3,829.7 |   |
|                                                             |   |        |    |   |   |   |   |   |
| The accompanying notes are an integral part of these statements. |   |        |    |   |   |   |   |   |

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Table of Contents

| Nicor Gas Company                                                                                                                  |   |        |    |   |       |   |    |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|------------|--------|---------|--------|
| Consolidated Balance Sheets                                                                                                        |   |        |    |   |       |   |    |   |
| (millions, except share data)                                                                                                      |   |        |    |   |       |   |    |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| CAPITALIZATION AND LIABILITIES                                                                                                     |   |        |    |   |       |   |    |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
|                                                                                                                               |   | December 31 |    |
|                                                                                                                               |   |  2010  |    |   |  2009 |   |
| Capitalization                                                                                                                     |   |        |    |   |       |   |    |   |
| Long-term obligations                                                                                                              |   |        |    |   |       |   |    |   |
| Long-term debt, net of unamortized discount                                                                                        |   | $           | 498.4   |   |       | $      | 498.2   |   |
| Preferred stock, cumulative, $100 par value per share, 800,000 shares authorized                                                   |   |        |    |   |       |   |    |   |
| Mandatorily redeemable preferred stock, 4.48% and 5.00% series, 21,000 shares outstanding in 2010                                  |   |        |    |   |       |   |    |   |
| and 26,000 shares outstanding in 2009, net of amount due within one year                                                           |   |        | 1.8     |   |       |   | 2.1     |   |
| Total long-term obligations                                                                                                        |   |        | 500.2   |   |       |   | 500.3   |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Nonredeemable preferred stock, 4.60% and 5.00% convertible series, 14,008 shares outstanding                                  |   |        | 1.4     |   |       |   | 1.4     |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Common equity                                                                                                                      |   |        |    |   |       |   |    |   |
| Common stock, $5 par value per share, 25,000,000 shares authorized, 32,365 shares reserved for share-based     |   |        |    |   |       |   |    |   |
| awards and 15,232,414 shares outstanding                                                                                           |   |        | 76.2    |   |       |   | 76.2    |   |
| Paid-in capital                                                                                                                    |   |        | 108.1   |   |       |   | 108.1   |   |
| Retained earnings                                                                                                                  |   |        | 471.6   |   |       |   | 486.7   |   |
| Accumulated other comprehensive loss                                                                                               |   |        |    |   |       |   |    |   |
| Cash flow hedges                                                                                                                   |   |        | (.6     | )      |       |   | (.5     | )      |
| Postretirement benefit plans                                                                                                       |   |        | (6.5    | )      |       |   | (6.5    | )      |
| Total accumulated other comprehensive loss                                                                                         |   |        | (7.1    | )      |       |   | (7.0    | )      |
| Total common equity                                                                                                                |   |        | 648.8   |   |       |   | 664.0   |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Total capitalization                                                                                                               |   |        | 1,150.4 |   |       |   | 1,165.7 |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Current liabilities                                                                                                                |   |        |    |   |       |   |    |   |
| Long-term obligations due within one year                                                                                          |   |        | .3      |   |       |   | .5      |   |
| Short-term debt - affiliates                                                                                                       |   |        | 40.0    |   |       |   | -       |   |
| Short-term debt - other                                                                                                            |   |        | 425.0   |   |       |   | 494.0   |   |
| Accounts payable                                                                                                                   |   |        | 239.0   |   |       |   | 264.4   |   |
| Customer credit balances and deposits                                                                                              |   |        | 110.6   |   |       |   | 141.7   |   |
| Derivative instruments                                                                                                             |   |        | 50.4    |   |       |   | 55.6    |   |
| Other                                                                                                                              |   |        | 112.1   |   |       |   | 82.0    |   |
| Total current liabilities                                                                                                          |   |        | 977.4   |   |       |   | 1,038.2 |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Deferred credits and other liabilities                                                                                             |   |        |    |   |       |   |    |   |
| Regulatory asset retirement liability                                                                                              |   |        | 843.9   |   |       |   | 796.8   |   |
| Deferred income taxes                                                                                                              |   |        | 364.7   |   |       |   | 328.2   |   |
| Health care and other postretirement benefits                                                                                      |   |        | 229.7   |   |       |   | 199.7   |   |
| Asset retirement obligation                                                                                                        |   |        | 190.6   |   |       |   | 191.3   |   |
| Other                                                                                                                              |   |        | 98.2    |   |       |   | 109.8   |   |
| Total deferred credits and other liabilities                                                                                       |   |        | 1,727.1 |   |       |   | 1,625.8 |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Commitments and contingencies                                                                                                      |   |        |    |   |       |   |    |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| Total capitalization and liabilities                                                                                               |   | $           | 3,854.9 |   |       | $      | 3,829.7 |   |
|                                                                                                                               |   |        |    |   |       |   |    |   |
| The accompanying notes are an integral part of these statements.                                                                   |   |        |    |   |       |   |    |   |

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Table of Contents

| Nicor Gas Company                                                                                                    |   |                   |   |   |       |   |   |       |   |
|----------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|------------|--------|
| Consolidated Statements of Retained Earnings                                                                         |   |                   |   |   |       |   |   |       |   |
| (millions)                                                                                                           |   |                   |   |   |       |   |   |       |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |
|                                                                                                                 |   | Year ended December 31 |   |
|                                                                                                                 |   | 2010                   |   |   | 2009       |   |   | 2008       |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |
| Balance at beginning of year                                                                                         |   | $                      | 486.7  |   |       | $      | 480.4  |       |   | $ | 472.4 |   |
| Net income                                                                                                           |   |                   | 100.9  |   |       |   | 75.0   |       |   |   | 59.6 |   |
| Dividends on common stock                                                                                            |   |                   | (115.9 | )      |       |   | (68.6  | )          |   |   | (51.3 | ) |
| Other                                                                                                                |   |                   | (.1    | )      |       |   | (.1    | )          |   |   | (.3 | ) |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
| Balance at end of year                                                                                               |   | $                      | 471.6  |   |       | $      | 486.7  |       |   | $ | 480.4 |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
| Consolidated Statements of Comprehensive Income                                                                      |   |                   |   |   |       |   |   |       |   |   |   |   |
| (millions)                                                                                                           |   |                   |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
|                                                                                                                 |   | Year ended December 31 |   |
|                                                                                                                 |   |  2010             |   |   |  2009 |   |   |  2008 |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
| Net income                                                                                                           |   | $                      | 100.9  |   |       | $      | 75.0   |       |   | $ | 59.6 |   |
| Other comprehensive income (loss)                                                                                    |   |                   |   |   |       |   |   |       |   |   |   |   |
| Loss on cash flow hedges (net of income tax of $(0.8), $(1.5) and $(1.7), respectively)                              |   |                   | (1.3   | )      |       |   | (2.5   | )          |   |   | (2.5 | ) |
| Reclassifications of hedge losses to net income (net of income tax of $0.7 and $3.4 for 2010 and 2009, respectively) |   |                   | 1.2    |   |       |   | 5.0    |       |   |   | - |   |
| Postretirement gains (losses) (net of income tax of $0.1, $0.9 and $(3.9), respectively)                             |   |                   | -      |   |       |   | 1.2    |       |   |   | (6.0 | ) |
| Other comprehensive income (loss), net of tax                                                                        |   |                   | (.1    | )      |       |   | 3.7    |       |   |   | (8.5 | ) |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
| Comprehensive income                                                                                                 |   | $                      | 100.8  |   |       | $      | 78.7   |       |   | $ | 51.1 |   |
|                                                                                                                 |   |                   |   |   |       |   |   |       |   |   |   |   |
| The accompanying notes are an integral part of these statements.                                                     |   |                   |   |   |       |   |   |       |   |

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Table of Contents

Notes to the Consolidated Financial Statements

| 1. | PROPOSED MERGER WITH AGL RESOURCES |
|----|------------------------------------|

| 2. | ACCOUNTING POLICIES |
|----|---------------------|

----

Table of Contents

|                                                    |   | 2010    |        |   | 2009   |    |
|---------------------------------------------------------|--------|---------|-------------|--------|--------|---------|
| Regulatory assets - current                             |   |    |        |   |   |    |
|    Regulatory postretirement asset       |   | $       | 21.1        |   |   | $       | 20.6 |   |
|    Deferred gas costs                    |   |    | 6.5         |   |   |    | 24.9 |   |
|    Other                                 |   |    | 7.4         |   |   |    | 5.4 |   |
| Regulatory assets - noncurrent                          |   |    |        |   |   |    |   |   |
|    Regulatory postretirement asset       |   |    | 193.3       |   |   |    | 195.4 |   |
|    Deferred gas costs                    |   |    | 1.4         |   |   |    | 4.4 |   |
|    Deferred environmental costs          |   |    | 25.0        |   |   |    | 18.1 |   |
|    Unamortized losses on reacquired debt |   |    | 13.1        |   |   |    | 14.2 |   |
|    Other                                 |   |    | 9.6         |   |   |    | 8.9 |   |
|                                                    |   | $  | 277.4  |   |   | $  | 291.9  |   |

| Regulatory liabilities - current                        |   |   |   |   |   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|    Regulatory asset retirement liability |   | $      | 17.2   |   |   | $      | 14.5 |   |
|    Bad debt rider                        |   |   | 16.4   |   |   |   | - |   |
|    Other                                 |   |   | 7.7    |   |   |   | 2.7 |   |
| Regulatory liabilities - noncurrent                     |   |   |   |   |   |   |   |   |
|    Regulatory asset retirement liability |   |   | 843.9  |   |   |   | 796.8 |   |
|    Regulatory income tax liability       |   |   | 18.2   |   |   |   | 39.1 |   |
|    Bad debt rider                        |   |   | 11.7   |   |   |   | - |   |
|    Other                                 |   |   | .9     |   |   |   | .8 |   |
|                                                    |   | $      | 916.0  |   |   | $      | 853.9 |   |

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----

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Table of Contents

| 3. | ASSET RETIREMENT OBLIGATIONS |
|----|------------------------------|

|                                   |   | 2010   |   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |
| Beginning of period                    |   | $      | 191.8  |   |   | $      | 186.8 |   |
| Liabilities incurred during the period |   |   | 2.1    |   |   |   | 2.1 |   |
| Liabilities settled during the period  |   |   | (4.1   | )      |   |   | (6.3 | ) |
| Accretion                              |   |   | 11.0   |   |   |   | 10.8 |   |
| Revision in estimated cash flows       |   |   | (9.8   | )      |   |   | (1.6 | ) |
| End of period                          |   | $      | 191.0  |   |   | $      | 191.8 |   |

| 4. | GAS IN STORAGE |
|----|----------------|

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Table of Contents

| 5. | SHORT-TERM AND LONG-TERM DEBT |
|----|-------------------------------|

|                                                       |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| First Mortgage Bonds                                       |   |   |   |   |   |   |
| 6.625% Series due 2011                                     |   | $      | 75.0   |   |   | $      | 75.0 |   |
| 7.20% Series due 2016                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 4.70% Series due 2019                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 5.80% Series due 2023                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 6.58% Series due 2028                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 5.90% Series due 2032                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 5.90% Series due 2033                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 5.85% Series due 2036                                      |   |   | 50.0   |   |   |   | 50.0 |   |
| 6.25% Series due 2038                                      |   |   | 75.0   |   |   |   | 75.0 |   |
|                                                       |   |   | 500.0  |   |   |   | 500.0 |   |
| Less:  Unamortized debt discount, net of premium |   |   | 1.6    |   |   |   | 1.8 |   |
| Total long-term debt                                       |   | $      | 498.4  |   |   | $      | 498.2 |   |

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Table of Contents

| 6. | FAIR VALUE MEASUREMENTS |
|----|-------------------------|

|                                    |   | Quoted prices in active markets |   |   | Significant observable inputs |   |   | Significant unobservable inputs |   |   |   |   |
|-----------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|--------|---------------------------------|--------|--------|--------|--------|
|                                    |   | (Level 1)                       |   |   | (Level 2)                     |   |   | (Level 3)                       |   |   | Total  |   |
| December 31, 2010                       |   |                            |   |   |                          |   |   |                            |   |   |   |   |
| Assets                                  |   |                            |   |   |                          |   |   |                            |   |   |   |   |
|    Commodity derivatives |   | $                               | 1.3    |   |                          | $      | 2.7    |                            |   | $      | 4.3    |   |   | $ | 8.3 |   |
|                                    |   |                            |   |   |                          |   |   |                            |   |   |   |   |   |   |   |   |
| Liabilities                             |   |                            |   |   |                          |   |   |                            |   |   |   |   |   |   |   |   |
|    Commodity derivatives |   | $                               | 27.0   |   |                          | $      | 26.9   |                            |   | $      | .3     |   |   | $ | 54.2 |   |
|                                    |   |                            |   |   |                          |   |   |                            |   |   |   |   |   |   |   |   |
| December 31, 2009                       |   |
| Assets                                  |   |
|    Money market funds    |   | $                               | .4     |   |                          | $      | -      |                            |   | $      | -      |   |   | $ | .4 |   |
|    Commodity derivatives |   |                            | .5     |   |                          |   | 2.6    |                            |   |   | 2.4    |   |   |   | 5.5 |   |
|                                    |   | $                               | .9     |   |                          | $      | 2.6    |                            |   | $      | 2.4    |   |   | $ | 5.9 |   |

| Liabilities                             |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|    Commodity derivatives |   | $      | 37.3   |   |   | $      | 25.3   |   |   | $      | 2.7    |   |   | $ | 65.3 |   |

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Table of Contents

|                                          |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                          |   |   |   |   |   |   |
| Beginning of period                           |   | $      | (.3    | )      |   | $      | 1.7 |   |
| Net realized/unrealized gains (losses)        |   |   |   |   |   |   |   |   |
| Included in regulatory assets and liabilities |   |   | (.6    | )      |   |   | (3.5 | ) |
| Settlements, net of purchases                 |   |   | 3.9    |   |   |   | 2.0 |   |
| Transfers into Level 3                        |   |   | 1.0    |   |   |   | .1 |   |
| Transfers out of Level 3                      |   |   | -      |   |   |   | (.6 | ) |
| End of period                                 |   | $      | 4.0    |   |   | $      | (.3 | ) |
|                                          |   |   |   |   |   |   |   |   |

|                                          |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Assets                                        |   |   |   |   |   |   |
| Margin accounts - derivative instruments |   | $      | 49.8   |   |   | $      | 43.6 |   |
| Other - noncurrent                       |   |   | 7.4    |   |   |   | 11.3 |   |

| 7. | DERIVATIVE INSTRUMENTS |
|----|------------------------|

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Table of Contents

|                                              |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Derivatives designated as hedging instruments     |   |   |   |   |   |   |
| Liabilities                                       |   |   |   |   |   |   |
| Derivative instruments                            |   | $      | .9     |   |   | $      | .7 |   |
|                                              |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments |   |   |   |   |   |   |   |   |
| Assets                                            |   |   |   |   |   |   |   |   |
| Derivative instruments                            |   | $      | 7.4    |   |   | $      | 4.7 |   |
| Other - noncurrent                                |   |   | .9     |   |   |   | .8 |   |
|                                              |   | $      | 8.3    |   |   | $      | 5.5 |   |
|                                              |   |   |   |   |   |   |   |   |
| Liabilities                                       |   |   |   |   |   |   |   |   |
| Derivative instruments                            |   | $      | 49.5   |   |   | $      | 54.9 |   |
| Other - noncurrent                                |   |   | 3.8    |   |   |   | 9.7 |   |
|                                              |   | $      | 53.3   |   |   | $      | 64.6 |   |

|                                                 |   | 2010 |   |   | 2009   |   |
|------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Pretax loss recognized in other comprehensive income |   | $    | 2.1    |   |   | $      | 4.0 |   |

| Location                  |   |   | 2010 |   |   | 2009   |   |
|---------------------------|--------|--------|------|--------|--------|--------|--------|
| Operating and maintenance |   |   | $    | 1.9    |   |   | $      | 8.4 |   |

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Table of Contents

| Location                  |   |   | 2010 |   |   | 2009   |   |
|---------------------------|--------|--------|------|--------|--------|--------|--------|
| Operating and maintenance |   |   | $    | 1.0    |   |   | $      | 1.9 |   |

| 8. | INCOME TAXES |
|----|--------------|

|                                        |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Current                                     |   |   |   |   |   |   |   |   |   |
| Federal                                     |   | $      | 26.6   |   |   | $      | 9.2    |   |   | $ | 23.8 |   |
| State                                       |   |   | 10.9   |   |   |   | 6.1    |   |   |   | 5.6 |   |
|                                        |   |   | 37.5   |   |   |   | 15.3   |   |   |   | 29.4 |   |
| Deferred                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal                                     |   |   | 23.3   |   |   |   | 25.3   |   |   |   | 3.3 |   |
| State                                       |   |   | (.6    | )      |   |   | .5     |   |   |   | (.3 | ) |
|                                        |   |   | 22.7   |   |   |   | 25.8   |   |   |   | 3.0 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of investment tax credits, net |   |   | (.9    | )      |   |   | (.8    | )      |   |   | (1.4 | ) |
| Income tax expense                          |   | $      | 59.3   |   |   | $      | 40.3   |   |   | $ | 31.0 |   |

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Table of Contents

|                               |   | 2010   |   |   | 2009   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred tax liabilities           |   |   |   |   |   |   |
| Property, plant and equipment      |   | $      | 349.6  |   |   | $      | 324.6 |   |
| Employee benefits                  |   |   | 9.1    |   |   |   | 6.1 |   |
| Other                              |   |   | 20.4   |   |   |   | 21.9 |   |
|                               |   |   | 379.1  |   |   |   | 352.6 |   |
| Deferred tax assets                |   |   |   |   |   |   |   |   |
| Unamortized investment tax credits |   |   | 7.6    |   |   |   | 8.9 |   |
| Allowance for doubtful accounts    |   |   | 12.4   |   |   |   | 12.3 |   |
| Other                              |   |   | 20.4   |   |   |   | 36.3 |   |
|                               |   |   | 40.4   |   |   |   | 57.5 |   |
| Net deferred tax liability         |   | $      | 338.7  |   |   | $      | 295.1 |   |

|                                                 |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                 |   |   |   |   |   |   |   |   |   |
| Federal statutory rate                               |   |   | 35.0   | %      |   |   | 35.0   | %      |   |   | 35.0 | % |
| State income taxes, net                              |   |   | 4.7    |   |   |   | 4.2    |   |   |   | 5.0 |   |
| Amortization of investment tax credits               |   |   | (1.3   | )      |   |   | (1.9   | )      |   |   | (2.5 | ) |
| Amortization of regulatory income tax liability      |   |   | (1.1   | )      |   |   | (1.1   | )      |   |   | (1.5 | ) |
| Medicare subsidy                                     |   |   | -      |   |   |   | (1.2   | )      |   |   | (1.5 | ) |
| Other                                                |   |   | (.3    | )      |   |   | -      |   |   |   | (.3 | ) |
| Effective combined federal and state income tax rate |   |   | 37.0   | %      |   |   | 35.0   | %      |   |   | 34.2 | % |

|                                        |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                        |   |   |   |   |   |   |   |   |   |
| Balance at January 1                        |   | $      | 3.2    |   |   | $      | 7.4    |   |   | $ | .6 |   |
| Additions for tax positions of prior years  |   |   | -      |   |   |   | -      |   |   |   | 7.8 |   |
| Reductions for tax positions of prior years |   |   | (.2    | )      |   |   | (.1    | )      |   |   | (1.0 | ) |
| Settlements                                 |   |   | (3.0   | )      |   |   | (4.1   | )      |   |   | - |   |
| Balance at December 31                      |   | $      | -      |   |   | $      | 3.2    |   |   | $ | 7.4 |   |

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Table of Contents

| 9. | POSTRETIREMENT BENEFITS |
|----|-------------------------|

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Table of Contents

|                                      |   | Pension benefits |        |   | Health care andother benefits |   |
|-------------------------------------------|--------|------------------|-------------|--------|-------------------------------|--------|
|                                      |   | 2010             |        |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Change in benefit obligation              |   |             |        |   |                          |   |   |   |   |   |   |   |
| Benefit obligation at beginning of period |   | $                | 305.6       |   |                          | $      | 270.2 |   |   | $ | 211.2 |   |   | $ | 207.7 |   |
| Service cost                              |   |             | 9.8         |   |                          |   | 8.6 |   |   |   | 2.3 |   |   |   | 2.2 |   |
| Interest cost                             |   |             | 16.0        |   |                          |   | 16.5 |   |   |   | 11.8 |   |   |   | 12.1 |   |
| Actuarial loss (gain)                     |   |             | 4.4         |   |                          |   | 22.3 |   |   |   | 26.8 |   |   |   | (2.1 | ) |
| Participant contributions                 |   |             | -           |   |                          |   | - |   |   |   | .9 |   |   |   | 1.2 |   |
| Medicare Part D reimbursements            |   |             | -           |   |                          |   | - |   |   |   | 1.6 |   |   |   | 1.1 |   |
| Benefits paid                             |   |             | (18.4       | )      |                          |   | (12.0 | ) |   |   | (12.1 | ) |   |   | (12.8 | ) |
| Other                                     |   |             | -           |   |                          |   | - |   |   |   | - |   |   |   | 1.8 |   |
| Benefit obligation at end of period       |   |             | 317.4  |   |                          |   | 305.6  |   |   |   | 242.5  |   |   |   | 211.2  |   |
|                                      |   |             |        |   |                          |   |   |   |   |   |   |   |   |   |   |   |

| Change in plan assets                            |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fair value of plan assets at beginning of period |   |   | 363.5  |   |   |   | 306.6  |   |   |   | -      |   |   |   | - |   |
| Actual return on plan assets                     |   |   | 45.3   |   |   |   | 68.9   |   |   |   | -      |   |   |   | - |   |
| Employer contributions                           |   |   | -      |   |   |   | -      |   |   |   | 11.2   |   |   |   | 11.6 |   |
| Participant contributions                        |   |   | -      |   |   |   | -      |   |   |   | .9     |   |   |   | 1.2 |   |
| Benefits paid                                    |   |   | (18.4  | )      |   |   | (12.0  | )      |   |   | (12.1  | )      |   |   | (12.8 | ) |
| Fair value of plan assets at end of period       |   |   | 390.4  |   |   |   | 363.5  |   |   |   | -      |   |   |   | - |   |
| Funded status                                    |   | $      | 73.0   |   |   | $      | 57.9   |   |   | $      | (242.5 | )      |   | $ | (211.2 | ) |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Amounts recognized in the Consolidated Balance Sheets |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Noncurrent assets                                     |   | $      | 73.0   |   |   | $      | 57.9   |   |   | $      | -      |   |   | $ | - |   |
| Current liabilities                                   |   |   | -      |   |   |   | -      |   |   |   | (12.8  | )      |   |   | (11.5 | ) |
| Noncurrent liabilities                                |   |   | -      |   |   |   | -      |   |   |   | (229.7 | )      |   |   | (199.7 | ) |
| Total recognized                                      |   | $      | 73.0   |   |   | $      | 57.9   |   |   | $      | (242.5 | )      |   | $ | (211.2 | ) |

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Table of Contents

|                                         |   | Net regulatory assets |   |   | Accumulated other comprehensive income |   |   | Total            |   |
|----------------------------------------------|--------|-----------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                                         |   | Pension benefits      |   |   | Health care and other benefits         |   |   | Pension benefits |   |   | Health care and other benefits |   |   | Pension benefits |   |   | Health care and other benefits |   |
|                                         |   |                  |   |   |                                   |   |   |             |   |   |   |   |   |   |   |   |   |   |
| January 1, 2009                              |   | $                     | 181.6  |   |                                   | $      | 73.4   |             |   | $ | 9.6 |   |   | $ | 3.9 |   |   | $ | 191.2 |   |   | $ | 77.3 |   |
| Current year actuarial gain                  |   |                  | (20.3  | )      |                                   |   | (.3    | )                |   |   | (1.1 | ) |   |   | - |   |   |   | (21.4 | ) |   |   | (.3 | ) |
| Amortization of actuarial loss               |   |                  | (14.5  | )      |                                   |   | (4.3   | )                |   |   | (.8 | ) |   |   | (.3 | ) |   |   | (15.3 | ) |   |   | (4.6 | ) |
| Amortization of prior service (cost) benefit |   |                  | (.4    | )      |                                   |   | .1     |             |   |   | - |   |   |   | - |   |   |   | (.4 | ) |   |   | .1 |   |
| December 31, 2009                            |   |                  | 146.4  |   |                                   |   | 68.9   |             |   |   | 7.7 |   |   |   | 3.6 |   |   |   | 154.1 |   |   |   | 72.5 |   |
|                                         |   |                  |   |   |                                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current year actuarial (gain) loss           |   |                  | (11.2  | )      |                                   |   | 25.4   |             |   |   | (.6 | ) |   |   | 1.3 |   |   |   | (11.8 | ) |   |   | 26.7 |   |
| Amortization of actuarial loss               |   |                  | (11.3  | )      |                                   |   | (3.9   | )                |   |   | (.6 | ) |   |   | (.2 | ) |   |   | (11.9 | ) |   |   | (4.1 | ) |
| Amortization of prior service cost           |   |                  | (.4    | )      |                                   |   | (.1    | )                |   |   | - |   |   |   | - |   |   |   | (.4 | ) |   |   | (.1 | ) |
| December 31, 2010                            |   | $                     | 123.5  |   |                                   | $      | 90.3   |             |   | $ | 6.5 |   |   | $ | 4.7 |   |   | $ | 130.0 |   |   | $ | 95.0 |   |

|                   |   | Net regulatory assets |   |   | Accumulated other comprehensive income |   |   | Total            |   |
|------------------------|--------|-----------------------|--------|--------|----------------------------------------|--------|--------|------------------|--------|
|                   |   | Pension benefits      |   |   | Health care and other benefits         |   |   | Pension benefits |   |   | Health care and other benefits |   |   | Pension benefits |   |   | Health care and other benefits |   |
|                   |   |                  |   |   |                                   |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Net actuarial loss     |   | $                     | 9.2    |   |                                   | $      | 5.7    |             |   | $ | .5 |   |   | $ | .3 |   |   | $ | 9.7 |   |   | $ | 6.0 |   |
| Net prior service cost |   |                  | .4     |   |                                   |   | .1     |             |   |   | - |   |   |   | - |   |   |   | .4 |   |   |   | .1 |   |
|                   |   | $                     | 9.6    |   |                                   | $      | 5.8    |             |   | $ | .5 |   |   | $ | .3 |   |   | $ | 10.1 |   |   | $ | 6.1 |   |

|                               |   | Pension benefits |   |   | Health care andother benefits |   |
|------------------------------------|--------|------------------|--------|--------|-------------------------------|--------|
|                               |   | 2010             |   |   | 2009                          |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                               |   |             |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                       |   | $                | 9.8    |   |                          | $      | 8.6 |   |   | $ | 8.6 |   |   | $ | 2.3 |   |   | $ | 2.2 |   |   | $ | 2.2 |   |
| Interest cost                      |   |             | 16.0   |   |                          |   | 16.5 |   |   |   | 15.9 |   |   |   | 11.8 |   |   |   | 12.1 |   |   |   | 12.0 |   |
| Expected return on plan assets     |   |             | (29.1  | )      |                          |   | (25.2 | ) |   |   | (39.9 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Recognized net actuarial loss      |   |             | 11.9   |   |                          |   | 15.3 |   |   |   | - |   |   |   | 4.1 |   |   |   | 4.6 |   |   |   | 4.6 |   |
| Amortization of prior service cost |   |             | .4     |   |                          |   | .4 |   |   |   | .3 |   |   |   | .1 |   |   |   | (.1 | ) |   |   | (.1 | ) |
| Net benefit cost (credit)          |   | $                | 9.0    |   |                          | $      | 15.6 |   |   | $ | (15.1 | ) |   | $ | 18.3 |   |   | $ | 18.8 |   |   | $ | 18.7 |   |

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Table of Contents

|                          |   | Pension benefits |   |   | Health care andother benefits |   |
|-------------------------------|--------|------------------|--------|--------|-------------------------------|--------|
|                          |   | 2010             |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
|                          |   |             |   |   |                          |   |   |   |   |   |   |   |
| Discount rate                 |   |             | 5.40   | %      |                          |   | 5.45 | % |   |   | 5.20 | % |   |   | 5.75 | % |
| Rate of compensation increase |   |             | 3.75   |   |                          |   | 3.75 |   |   |   | 3.75 |   |   |   | 3.75 |   |
| Pension band increase         |   |             | 2.00   |   |                          |   | 2.00 |   |   |   |            - |   |   |   | - |   |

|                      |   | Pension benefits |   |   | Health care and other benefits |   |
|---------------------------|--------|------------------|--------|--------|--------------------------------|--------|
|                      |   | 2010             |   |   | 2009                           |   |   | 2008 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                      |   |             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount rate             |   |             | 5.45   | %      |                           |   | 6.35 | % |   |   | 6.25 | % |   |   | 5.75 | % |   |   | 6.00 | % |   |   | 6.25 | % |
| Expected return on assets |   |             | 8.25   |   |                           |   | 8.50 |   |   |   | 8.50 |   |   |   | - |   |   |   | - |   |   |   | - |   |

| Rate of compensation increase |   |   | 3.75 |   |   |   | 3.75 |   |   |   | 3.75 |   |   |   | 3.75 |   |   |   | 3.75 |   |   |   | 3.75 |   |
|-------------------------------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|------|--------|
| Pension band increase         |   |   | 2.00 |   |   |   | 3.00 |   |   |   | 3.00 |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |

|                                                             |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Initial health care cost trend rate                              |   |   | 8.0%   |   |   |   | 8.0% |   |
| Ultimate rate to which the cost trend rate is assumed to decline |   |   | 5.0%   |   |   |   | 5.0% |   |
| Years to reach ultimate rate                                     |   |   | 6      |   |   |   | 6 |   |

|                                                             |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Initial health care cost trend rate                              |   |   | 8.0%   |   |   |   | 8.5%   |   |   |   | 9.0% |   |
| Ultimate rate to which the cost trend rate is assumed to decline |   |   | 5.0%   |   |   |   | 5.0%   |   |   |   | 5.0% |   |
| Years to reach ultimate rate                                     |   |   | 6      |   |   |   | 7      |   |   |   | 6 |   |

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Table of Contents

|                        |   | Increase (decrease) |   |   | Effect on net benefit cost |   |   | Effect on benefit obligation |   |
|-----------------------------|--------|---------------------|--------|--------|----------------------------|--------|--------|------------------------------|--------|
|                        |   |                |   |   |                       |   |   |                         |   |
| Health care cost trend rate |   |                | 1.0%   |   |                       | $      | 1.0    |                         |   | $ | 20.7 |   |
|                        |   |                | (1.0%) |   |                       |   | (.9)   |                         |   |   | (17.6) |   |

|                    |   | Target     |   |   | Percentage of plan assets |      |
|-------------------------|--------|------------|--------|--------|---------------------------|-----------|
| Asset category          |   | allocation |   |   | 2010                      |      |   | 2009 |   |
|                    |   |       |   |   |                      |      |   |   |   |
| Equity securities       |   |  60   | %      |   |                      |  62  | % |   |   |  61 | % |   |
| Fixed income securities |   |  40   |   |   |                      |  38  |   |   |   |  39 |   |   |
|                    |   |  100  | %      |   |                      |  100 | % |   |   |  100 | % |   |

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Table of Contents

|                    |   | Quoted prices in active markets |   |   | Significant observable inputs |   |   |   |   |
|-------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|--------|--------|--------|
|                    |   | (Level 1)                       |   |   | (Level 2)                     |   |   | Total  |   |
| December 31, 2010       |   |                            |   |   |                          |   |   |   |   |
| Equity securities       |   |                            |   |   |                          |   |   |   |   |
| Domestic                |   | $                               | -      |   |                          | $      | 162.1  |   |   | $ | 162.1 |   |
| International           |   |                            | -      |   |                          |   | 79.5   |   |   |   | 79.5 |   |
| Fixed income securities |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Debt securities         |   |                            | -      |   |                          |   | 121.7  |   |   |   | 121.7 |   |
| Other                   |   |                            | 3.2    |   |                          |   | 23.9   |   |   |   | 27.1 |   |
|                    |   | $                               | 3.2    |   |                          | $      | 387.2  |   |   | $ | 390.4 |   |
|                    |   |                            |   |   |                          |   |   |   |   |   |   |   |
| December 31, 2009       |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Equity securities       |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Domestic                |   | $                               | -      |   |                          | $      | 149.6  |   |   | $ | 149.6 |   |
| International           |   |                            | -      |   |                          |   | 72.9   |   |   |   | 72.9 |   |
| Fixed income securities |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Debt securities         |   |                            | -      |   |                          |   | 110.7  |   |   |   | 110.7 |   |
| Other                   |   |                            | 6.1    |   |                          |   | 24.2   |   |   |   | 30.3 |   |
|                    |   | $                               | 6.1    |   |                          | $      | 357.4  |   |   | $ | 363.5 |   |

|  Twelve months ending December 31 |   | Pension benefits |   |   | Health care and other benefits |   |   | Expected Medicare subsidy |   |
|----------------------------------------|--------|------------------|--------|--------|--------------------------------|--------|--------|---------------------------|--------|
|                                   |   |             |   |   |                           |   |   |                      |   |
| 2011                                   |   | $                | 27.4   |   |                           | $      | 14.3   |                      |   | $ | (1.6 | ) |
| 2012                                   |   |             | 25.3   |   |                           |   | 15.1   |                      |   |   | (1.7 | ) |
| 2013                                   |   |             | 25.3   |   |                           |   | 16.0   |                      |   |   | (1.8 | ) |
| 2014                                   |   |             | 28.5   |   |                           |   | 16.7   |                      |   |   | (1.9 | ) |
| 2015                                   |   |             | 29.7   |   |                           |   | 17.5   |                      |   |   | (2.0 | ) |
| 2016-2020                              |   |             | 180.2  |   |                           |   | 98.1   |                      |   |   | (10.7 | ) |

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| 10. | DIVIDEND AND OTHER RESTRICTIONS |
|-----|---------------------------------|

| 11. | BUSINESS SEGMENT INFORMATION |
|-----|------------------------------|

|           |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|           |   |   |    |   |   |   |    |   |   |
| Bundled sales  |   | $      | 1,839.7 |   |   | $      | 1,766.5 |   |   | $ | 2,789.5 |   |
| Transportation |   |   | 163.4   |   |   |   | 169.7   |   |   |   | 187.1 |   |
| Revenue taxes  |   |   | 148.1   |   |   |   | 150.3   |   |   |   | 174.0 |   |
| Other          |   |   | 53.2    |   |   |   | 54.3    |   |   |   | 56.3 |   |
|           |   | $      | 2,204.4 |   |   | $      | 2,140.8 |   |   | $ | 3,206.9 |   |

| 12. | RELATED PARTY TRANSACTIONS |
|-----|----------------------------|

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| 13. | COMMITMENTS |
|-----|-------------|

|       |   | Unconditional purchase obligations |   |   | Operating leases |   |   | Other long-term obligations |   |
|------------|--------|------------------------------------|--------|--------|------------------|--------|--------|-----------------------------|--------|
|       |   |                               |   |   |             |   |   |                        |   |
| 2011       |   | $                                  | 24.8   |   |             | $      | 1.0    |                        |   | $ | .3 |   |
| 2012       |   |                               | 6.3    |   |             |   | .6     |                        |   |   | .3 |   |
| 2013       |   |                               | 1.8    |   |             |   | .8     |                        |   |   | .2 |   |
| 2014       |   |                               | 1.5    |   |             |   | .9     |                        |   |   | .3 |   |
| 2015       |   |                               | 1.6    |   |             |   | .4     |                        |   |   | .2 |   |
| After 2015 |   |                               | 1.5    |   |             |   | .5     |                        |   |   | .5 |   |
|       |   | $                                  | 37.5   |   |             | $      | 4.2    |                        |   | $ | 1.8 |   |

| 14. | REGULATORY PROCEEDINGS |
|-----|------------------------|

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| 15. | GUARANTEES AND INDEMNITIES |
|-----|----------------------------|

| 16. | CONTINGENCIES |
|-----|---------------|

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| 17. | QUARTERLY RESULTS (UNAUDITED) |
|-----|-------------------------------|

|               |   | Quarter ended |    |
|--------------------|--------|---------------|---------|
|               |   | Mar. 31       |    |   | June 30 |   |   | Sept. 30 |   |   | Dec. 31 |   |
| 2010               |   |          |    |   |   |   |   |   |   |   |   |   |
| Operating revenues |   | $             | 1,068.8 |   |   | $ | 299.5 |   |   | $ | 233.5 |   |   | $ | 602.6 |   |
| Operating income   |   |          | 62.1    |   |   |   | 20.8 |   |   |   | 16.7 |   |   |   | 36.8 |   |
| Net income         |   |          | 52.9    |   |   |   | 12.0 |   |   |   | 7.7 |   |   |   | 28.3 |   |
|               |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009               |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating revenues |   | $             | 984.0   |   |   | $ | 326.3 |   |   | $ | 215.0 |   |   | $ | 615.5 |   |
| Operating income   |   |          | 38.4    |   |   |   | 19.3 |   |   |   | 15.7 |   |   |   | 37.9 |   |
| Net income         |   |          | 29.8    |   |   |   | 11.2 |   |   |   | 6.9 |   |   |   | 27.1 |   |

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| Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

Item 9A.     

| 1.   | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 9B. | Other Information |
|----------|-------------------|

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| Item 14. | Principal Accounting Fees and Services |
|----------|----------------------------------------|

| Fee Category       |   | 2010   |   |   | 2009   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit fees         |   | $      | 1.2    |   |   | $      | 1.5 |   |
| Audit-related fees |   |   | .1     |   |   |   | .1 |   |
| Total fees         |   | $      | 1.3    |   |   | $      | 1.6 |   |

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| Item 15. | Exhibits, Financial Statement Schedules |
|----------|-----------------------------------------|

|   | 1) | Financial Statements: |
|--------|----|-----------------------|

|   | 2) | Financial Statement Schedules: |
|--------|----|--------------------------------|

| Schedule |                                                    |   |
|----------|---------------------------------------------------------|--------|
| Number   |                                                    | Page   |
|     | Report of Independent Registered Public Accounting Firm | 32     |
| II       | Valuation and Qualifying Accounts                       | 67     |

|   | Schedules other than those listed are omitted because they are not applicable. |
|--------|--------------------------------------------------------------------------------|

|   | 3) | Exhibits Filed: |
|--------|----|-----------------|

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| Nicor Gas Company                                                                              |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
|------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
| Schedule II                                                                                    |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
| VALUATION AND QUALIFYING ACCOUNTS                                                              |   |       |   |   |       |   |   |       |   |   |       |   |   |
| (millions)                                                                                     |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
|                                                                                           |   |       |   |   | Additions  |   |   |       |   |   |       |   |
|                                                                                           |   | Balance at |   |   | Charged to |   |   | Charged to |   |   |       |   |   | Balance   |   |
|                                                                                           |   | beginning  |   |   | costs and  |   |   | other      |   |   |       |   |   | at end    |   |
| Description                                                                                    |   | of period  |   |   | expenses   |   |   | accounts   |   |   | Deductions |   |   | of period |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
| 2010                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |
| Allowance for doubtful accounts receivable                                                     |   | $          | 30.8   |   |       | $      | 36.5   |       | (d)    | $      | -          |   |   | $         | 42.1   |   | (a) | $ | 25.2 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued mercury-related costs                                                                  |   |       | 2.1    |   |       |   | -      |       |   |   | -          |   |   |      | 1.5    |   | (b) |   | .6 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued manufactured gas plant environmental costs                                        |   |       | 23.8   |   |       |   | -      |       |   |   | 17.5       |   | (c)    |      | 12.6   |   | (b) |   | 28.7 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| 2009                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Allowance for doubtful accounts receivable                                                |   | $          | 42.5   |   |       | $      | 53.1   |       |   | $      | -          |   |   | $         | 64.8   |   | (a) | $ | 30.8 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued mercury-related costs                                                                  |   |       | 2.5    |   |       |   | -      |       |   |   | -          |   |   |      | .4     |   | (b) |   | 2.1 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued manufactured gas plant environmental costs                                             |   |       | 21.4   |   |       |   | -      |       |   |   | 11.2       |   | (c)    |      | 8.8    |   | (b) |   | 23.8 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| 2008                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Allowance for doubtful accounts receivable                                                |   | $          | 32.8   |   |       | $      | 70.6   |       |   | $      | -          |   |   | $         | 60.9   |   | (a) | $ | 42.5 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued mercury-related costs                                                                  |   |       | 2.8    |   |       |   | .6     |       |   |   | -          |   |   |      | .9     |   | (b) |   | 2.5 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| Accrued manufactured gas plant environmental costs                                        |   |       | 15.2   |   |       |   | -      |       |   |   | 19.8       |   | (c)    |      | 13.6   |   | (b) |   | 21.4 |   |
|                                                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |   |   |   |
| (a) Accounts receivable written off, net of recoveries.                                        |   |       |   |   |       |   |   |       |   |   |       |   |   |
| (b) Expenditures, other adjustments.                                                           |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |   |
| (c) Accrual of estimated future remediation costs that are deferred as regulatory assets.      |   |       |   |   |       |
| (d) Amount excludes refunds to / recoveries from customers attributable to the bad debt rider. |   |       |   |

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Signatures

|                                                                                                                                                                                                              |   | Nicor Gas Company                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|
|                                                                                                                                                                                                              |   |                                |
| Date  February 24, 2011                                                                                                                                                                                 |   | /s/ KAREN K. PEPPING                |
|                                                                                                                                                                                                              |   | Karen K. Pepping                    |
|                                                                                                                                                                                                              |   | Vice President and Controller       |
|                                                                                                                                                                                                              |   | (Principal Accounting Officer and   |
|                                                                                                                                                                                                              |   | Duly Authorized Officer)            |
|                                                                                                                                                                                                              |
| Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on February 24, 2011. |
|                                                                                                                                                                                                              |
|                                                                                                                                                                                                              |   |                                |
| Signature                                                                                                                                                                                                         |   | Title                               |
|                                                                                                                                                                                                              |   |                                |
| /s/ RUSS M. STROBEL                                                                                                                                                                                               |   |                                |
| Russ M. Strobel                                                                                                                                                                                                   |   | Chairman, President and             |
| (Principal Executive Officer)                                                                                                                                                                                     |   | Chief Executive Officer             |
|                                                                                                                                                                                                              |   |                                |
| /s/ RICHARD L. HAWLEY                                                                                                                                                                                             |   |                                |
| Richard L. Hawley                                                                                                                                                                                                 |   | Executive Vice President and        |
| (Principal Financial Officer)                                                                                                                                                                                     |   | Chief Financial Officer             |
|                                                                                                                                                                                                              |   |                                |
| /s/ KAREN K. PEPPING                                                                                                                                                                                              |   |                                |
| Karen K. Pepping                                                                                                                                                                                                  |   | Vice President and Controller       |
| (Principal Accounting Officer)                                                                                                                                                                                    |   |                                |
|                                                                                                                                                                                                              |   |                                |
| ROBERT M. BEAVERS, JR.*                                                                                                                                                                                           |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| BRUCE P. BICKNER*                                                                                                                                                                                                 |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| JOHN H. BIRDSALL, III*                                                                                                                                                                                            |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| NORMAN R BOBINS*                                                                                                                                                                                                  |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| BRENDA J. GAINES*                                                                                                                                                                                                 |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| RAYMOND A. JEAN*                                                                                                                                                                                                  |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| DENNIS J. KELLER*                                                                                                                                                                                                 |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| R. EDEN MARTIN*                                                                                                                                                                                                   |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| GEORGIA R. NELSON*                                                                                                                                                                                                |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| ARMANDO J. OLIVERA*                                                                                                                                                                                               |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| JOHN RAU*                                                                                                                                                                                                         |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
| JOHN C. STALEY*                                                                                                                                                                                                   |   | Director                            |
|                                                                                                                                                                                                              |   |                                |
|                                                                                                                                                                                                              | *      | By  /s/ RICHARD L. HAWLEY |
|                                                                                                                                                                                                              |   | Richard L. Hawley                   |
|                                                                                                                                                                                                              |   | (Attorney-in-fact)                  |

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Supplemental Information

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Exhibit Index

| Exhibit |   |                                                                                                                                                                                                                                       |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description of Document                                                                                                                                                                                                                    |
|    |   |                                                                                                                                                                                                                                       |
| 3.01    | *      | Restated Articles of Incorporation of the company as filed with the Illinois Secretary of State on July 21, 2006.  (File No. 1-7296, Form 10-Q for June 30, 2006, Nicor Gas Company, Exhibit 3.01.)                              |
|    |   |                                                                                                                                                                                                                                       |
| 3.02    | *      | Nicor Gas Company Amended and Restated By-laws effective as of December 1, 2007.  (File No. 1-7296, Form 8-K for November 29, 2007, Nicor Gas Company, Exhibit 3.1.)                                                             |
|    |   |                                                                                                                                                                                                                                       |
| 4.01    | *      | Indenture of Commonwealth Edison Company to Continental Illinois National Bank and Trust Company of Chicago, Trustee, dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 1995, Nicor Gas Company, Exhibit 4.01.)      |
|    |   |                                                                                                                                                                                                                                       |
| 4.02    | *      | Indenture of Adoption of the company to Continental Illinois National Bank and Trust Company of Chicago, Trustee, dated February 9, 1954.  (File No. 1-7296, Form 10-K for 1995, Nicor Gas Company, Exhibit 4.02.)               |
|    |   |                                                                                                                                                                                                                                       |
| 4.03    | *      | Supplemental Indenture, dated February 15, 1998, of the company to Harris Trust and Savings Bank, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 1997, Nicor Gas Company, Exhibit 4.19.) |
|    |   |                                                                                                                                                                                                                                       |
| 4.04    | *      | Supplemental Indenture, dated February 1, 2001, of the company to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 2000, Nicor Gas Company, Exhibit 4.17.)      |
|    |   |                                                                                                                                                                                                                                       |
| 4.05    | *      | Supplemental Indenture, dated May 15, 2001, of the company to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-Q for June 2001, Nicor Gas Company, Exhibit 4.01.)     |
|    |   |                                                                                                                                                                                                                                       |
| 4.06    | *      | Supplemental Indenture, dated December 1, 2003, of the company to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 2003, Nicor Gas Company, Exhibit 4.09.)      |
|    |   |                                                                                                                                                                                                                                       |
| 4.07    | *      | Supplemental Indenture, dated December 1, 2003, of the company to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 2003, Nicor Gas Company, Exhibit 4.10.)      |

| 4.08   | *      | Supplemental Indenture, dated December 1, 2003, of the company to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 2003, Nicor Gas Company, Exhibit 4.11.)    |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                     |
| 4.09   | *      | Supplemental Indenture, dated December 1, 2006, of Nicor Gas to BNY Midwest Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-K for 2006, Nicor Gas Company, Exhibit 4.11.)      |
|   |   |                                                                                                                                                                                                                                     |
| 4.10   | *      | Supplemental Indenture, dated August 1, 2008, of Nicor Gas to BNY Mellon Trust Company, Trustee, under Indenture dated January 1, 1954.  (File No. 1-7296, Form 10-Q for September 30, 2008, Nicor Gas Company, Exhibit 4.01.) |

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| Exhibit |   |                                                                                                                                                                                                                                     |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description of Document                                                                                                                                                                                                                  |
|    |   |                                                                                                                                                                                                                                     |
| 4.11    | *      | Supplemental Indenture, dated July 23, 2009, of Nicor Gas to BNY Mellon Trust Company, Trustee, under Indenture dated as of January 1, 1954.  (File No. 1-7296, Form 10-Q for June 30, 2009, Nicor Gas Company, Exhibit 4.01.) |
|    |   |                                                                                                                                                                                                                                     |
| 4.12    |   | Supplemental Indenture, dated February 1, 2011, of Nicor Gas to BNY Mellon Trust Company, Trustee, under Indenture dated as of January 1, 1954.                                                                                          |
|    |   |                                                                                                                                                                                                                                     |
| 10.01   | *      | Nicor Gas Supplementary Savings Plan (as Amended and Restated for Post-2004 Benefits, Effective January 1, 2008.)  (File No. 1-7296, Form 10-K for 2008, Nicor Gas Company, Exhibit 10.01.)                                    |
|    |   |                                                                                                                                                                                                                                     |
| 10.02   | *      | Amendment and Restatement of Nicor Gas Supplementary Retirement Plan.  (File No. 1-7297, Form 10-Q for March 2000, Nicor Inc., Exhibit 10.01.)                                                                                 |
|    |   |                                                                                                                                                                                                                                     |
| 10.03   | *      | Amendment to Nicor Gas Supplementary Retirement Plan (as in Effect on October 3, 2004, for Pre-2005 Benefits). (File No. 1-7297, Form 8-K for July 28, 2008, Nicor Inc., Exhibit 10.12.)                                                 |
|    |   |                                                                                                                                                                                                                                     |
| 10.04   | *      | Nicor Gas Supplementary Retirement Plan (as Amended and Restated for Post-2004 Benefits, Effective January 1, 2008). (File No. 1-7297, Form 8-K for July 28, 2008, Nicor Inc., Exhibit 10.11.)                                           |
|    |   |                                                                                                                                                                                                                                     |
| 10.05   | *      | Nicor Gas Annual Incentive Compensation Plan for Officers.  (File No. 1-7296, Form 10-K for 2008, Nicor Gas Company, Exhibit 10.06.)                                                                                           |
|    |   |                                                                                                                                                                                                                                     |
| 10.06   | *      | Nicor Gas Directors’ Deferred Compensation Plan, as amended and restated effective January 1, 2008.  (File No. 1-7296, Form 10-Q for June 30, 2007, Nicor Gas Company, Exhibit 10.01.)                                   |
|    |   |                                                                                                                                                                                                                                     |

| 10.07  | *      | First Amendment to the Northern Illinois Gas Company Directors’ Deferred Compensation Plan.  (File No. 1-7296, Form 10-K for 2008, Nicor Gas Company, Exhibit 10.08.)         |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                          |
| 10.08  | *      | Second Amendment to the Northern Illinois Gas Company Directors’ Deferred Compensation Plan.  (File No. 1-7296, Form 10-K for 2008, Nicor Gas Company, Exhibit 10.09.)        |
|   |   |                                                                                                                                                                                          |
| 10.09  |   | Third Amendment to the Northern Illinois Gas Company Directors’ Deferred Compensation Plan.                                                                                             |
|   |   |                                                                                                                                                                                          |
| 10.10  | *      | 3-Year Credit Agreement dated as of April 23, 2010.  (File No. 1-7296, Form 10-Q for March 31, 2010, Nicor Gas Company, Exhibit 10.01.)                                             |
|   |   |                                                                                                                                                                                          |
| 10.11  | *      | 364-Day Credit Agreement Dated as of April 23, 2010.  (File No. 1-7296, Form 10-Q for March 31, 2010, Nicor Gas Company, Exhibit 10.02.)                                            |
|   |   |                                                                                                                                                                                          |
| 10.12  | *      | Final Allocation Agreement between Nicor Gas and Commonwealth Edison Company dated as of January 3, 2008.  (File No. 1-7296, Form 10-K for 2007, Nicor Gas Company, Exhibit 10.15.) |

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| Exhibit      |   |                                                                                                                                                                                                 |
|--------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Number |   | Description of Document                                                                                                                                                                         |
|         |   |                                                                                                                                                                                                 |
| 10.13        | *      | Agreement between Nicor Gas and Local Union 19 of the International Brotherhood of Electrical Workers 2009-2014.  (File No. 1-7296, Form 10-K for 2009, Nicor Gas Company, Exhibit 10.13.) |
|         |   |                                                                                                                                                                                                 |
| 12.01        |   | Computation of Consolidated Ratio of Earnings to Fixed Charges.                                                                                                                                      |
|         |   |                                                                                                                                                                                                 |
| 23.01        |   | Consent of Independent Registered Public Accounting Firm.                                                                                                                                            |
|         |   |                                                                                                                                                                                                 |
| 24.01        |   | Powers of Attorney.                                                                                                                                                                                  |
|         |   |                                                                                                                                                                                                 |
| 31.01        |   | Rule 13a-14(a)/15d-14(a) Certification.                                                                                                                                                              |
|         |   |                                                                                                                                                                                                 |
| 31.02        |   | Rule 13a-14(a)/15d-14(a) Certification.                                                                                                                                                              |
|         |   |                                                                                                                                                                                                 |
| 32.01        |   | Section 1350 Certification.                                                                                                                                                                          |
|         |   |                                                                                                                                                                                                 |
| 32.02        |   | Section 1350 Certification.                                                                                                                                                                          |

| *   | These exhibits have been previously filed with the SEC as exhibits to registration statements or to other filings with the SEC and are incorporated herein as exhibits by reference.  The file number and exhibit number of each such exhibit, where applicable, are stated, in parentheses, in the description of such exhibit. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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