Spreadsheet: kimberly_watson__20614__02CapPlan_8_22_01
Sheet: NNG Projects 

 |  |  |  |  |  |  |  |  |  | NORTHERN NATURAL GAS COMPANY - COMMERCIAL GROUP
 |  |  |  |  |  |  |  |  |  | 2002 - 2003 OPERATING & STRATEGIC PLAN
 |  |  |  |  |  |  |  |  |  | Net Income From Capital Expenditures
 |  |  |  |  |  |  |  |  |  | (Dollars In Millions)
 |  |  |  |  | Disc/ |  | WO | c |  |  |  | Total | MM |  |  |  |  |  |  |  | Pre-Tax Impact |  |  |  |  |  | Unlev
 | Process Category |  | Department |  | [NAME] | ST | # | Proj |  | Project Name |  | Project | Btu/d |  | CAPITAL EXPENDITURES |  |  |  |  |  | (Incl Interest- 9.5%) |  |  |  |  |  | DCF |  | Comments
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2002 |  | 2003 |  | 2004 |  | 2002 |  | 2003 |  | 2004
 |  |  |  |  |  |  |  |  |  | DISCRETIONARY
 |  |  |  |  |  |  |  |  |  | Marketing Projects
 |  |  | Marketing | 1 | Non-Disc - 1 | TX |  | nc |  | Discretionary Marketing Pool |  |  |  |  | 15 |  | 20 |  | 20 |  | 0.59 |  | 5.5 |  | 16.9 |  | 0.1477 |  | Discretionary Pool. Approval requires 15% or greater return. See Attached
 |  |  |  | 2 |  |  |  |  |  | [NAME] |  |  |  |  | 4.7 |  | 0 |  | 0 |  | 0.6 |  | 1.3 |  | 1 |  | 0.15 |  | Expand Cunningham Storage Field
 |  |  |  | 3 |  |  |  |  |  | Tall Corn Ethanol Plant |  |  |  |  | 0.36 |  | 0 |  | 0 |  | 0 |  | 0.2 |  |  |  | 0.59 |  | Bring Gas to new Ethanol Plant located in Coon Rapids, Iowa (in-service 11/1/02)
 |  |  |  | 4 |  |  |  |  |  | Little Sioux Ethanol Plant |  |  |  |  | 0.36 |  | 0 |  | 0 |  | 0.2 |  | 0.4 |  |  |  | 0.7 |  | Bring Gas to new Ethanol Plant located in Marcus, Iowa (in-service 7/1/02)
 | Marketing |  | Marketing |  | Disc | TX |  | NC
 |  |  |  |  |  |  |  |  |  | Total Marketing Disc
 |  |  |  |  |  |  |  |  |  | Marketing- Systems Projects Disc
 | Sys. & Comp. Marketing |  | Bus. Services | 5 | Disc | TX |  | C |  | Market Intelligence |  |  |  |  | 0.17 |  |  |  |  |  | ? |  | ? |  | ? |  | ? |  | Enhance current web-scraped information.
 | Sys. & Comp. Marketing |  | Marketing | 6 | Disc | TX |  | C |  | Commercial Reporting Environment |  |  |  |  | 0.11 |  |  |  |  |  | ? |  | ? |  | ? |  | ? |  | Allow commercial support personnel to access information more quickly.
 | Sys. & Comp. Marketing |  | Marketing | 7 | Disc | TX |  | C |  | MFE Enhancements |  |  |  |  | 0.22 |  |  |  |  |  | ? |  | ? |  | ? |  | ? |  | Provide for continued automation of MFE processes.
 |  |  |  |  |  |  |  |  |  | Total Marketing-Systems Disc
 |  |  |  |  |  |  |  |  |  | Other
 | Other Home |  | Facilities | 8 | Disc | NE |  |  |  | Omaha Office - Carpet Replacement |  |  |  |  | 0.2 |  | 0 |  | 0 |  |  |  |  |  |  |  |  |  | Replace Carpet for NNG floors 3, and NNG's share of  2, 1.
 |  |  |  | 9 |  |  |  |  |  | AVA Upgrade |  |  |  |  | 0.02 |  | 0 |  | 0 |  |  |  |  |  |  |  |  |  | Upgrade AVA equipment in Room 227
 | Other Home |  | Facilities | 10 | Disc | NE |  |  |  | NNG Omaha / Minn. Office - Pool Car |  |  |  |  | 0.02 |  | 0.02 |  | 0.02 |  |  |  |  |  |  |  |  |  | NNG Omaha / Minneapolis office pool car replacements.
 |  |  |  |  |  |  |  |  |  | Total Other Disc
 |  |  |  |  |  |  |  |  |  | Total Discretionary Projects
 |  |  |  |  |  |  |  |  |  | NON-DISCRETIONARY
 |  |  |  |  |  |  |  |  |  | Marketing Projects
 |  |  | Marketing | 1 | Non-Disc - 1 | MN |  | c |  | Belleville Compression |  |  | 20000 |  | 2.2 |  |  |  |  |  |  |  |  |  |  |  |  |  | Contract Extension with Wisconsin Gas - East Leg Sale
 |  |  | Marketing | 2 | Non-Disc - 1 | MN |  | c |  | NNG / WG TBS (Bluff Creek,Wi) |  |  | 347000 |  | 0.3 |  |  |  |  |  |  |  |  |  |  |  |  |  | Contract Extension with Wisconsin Gas - East Leg Sale
 |  |  | Marketing | 3 | Non-Disc - 1 | KS |  | c |  | Exxon/Mobil |  | 7.1 |  |  | 3.5 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1995 Operating Contractual Agreement - 10 yr agreement
 |  |  | Marketing | 4 | Non-Disc - 1 | WI |  | c |  | Wisconsin Gas Co. |  | 0.9 |  |  | 0.3 |  |  |  |  |  |  |  |  |  |  |  |  |  | Commitment of 300,000/year (2000 - 2002)
 |  |  | Marketing | 5 | Non-Disc - 1 | IO |  | c |  | Utilicorp Priority Markets |  |  |  |  | 0.71 |  |  |  |  |  |  |  |  |  |  |  |  |  | Rate case settlement (RP-98-203) - align firm entitlement where needed.
 |  |  | Marketing | 6 | Non-Disc - 1 | NE |  | c |  | Metropolitan Utilities District |  |  |  |  | 5 |  | 0 |  |  |  |  |  |  |  |  |  |  |  | Long term commitment - 15 yrs - relocation of Omaha #1A TBS.
 |  |  | Marketing | 7 | Non-Disc - 1 | NE |  | c |  | Metropolitan Utilities District |  |  |  |  | 1.25 |  | 0 |  |  |  |  |  |  |  |  |  |  |  | Long term commitment - 15 yrs - '84th Street TBS mods
 |  |  |  | 8 |  |  |  |  |  | LaCrosse Branchline Expansion |  | 1.6 |  |  | 0.11 |  |  |  |  |  |  |  |  |  |  |  |  |  | Long term contracts - 10 yrs - last year of construction
 |  |  | Marketing | 9 | Non-Disc - 1 | NE |  | nc |  | MUD - CIAC |  |  |  |  | 0.2 |  | 0.2 |  | 0.2 |  |  |  |  |  |  |  |  |  | Long term commitment - 15 yrs - $200M/y until 2006
 |  |  |  | 10 |  |  |  |  |  | Tivoli Land Purchase |  |  |  |  | 0.04 |  | 0.04 |  | 0 |  |  |  |  |  |  |  |  |  | Purchase Assets in Lieu of Lease Payments
 |  |  |  | 11 |  | NE |  |  |  | Estimate for studies |  |  |  |  | 0.3 |  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated study dollars for possible future projects
 |  |  |  |  |  |  |  |  |  | Total  Marketing Non-Disc
 |  |  |  |  |  |  |  |  |  | Commercial Group -Systems
 |  |  |  | 12 |  |  |  |  |  | Tariff Software - Reg Affairs |  |  |  |  | 0.02 |  |  |  |  |  |  |  |  |  |  |  |  |  | Provide for electronic filing of NNG Tariff in accordance with FERC filing guidelines.
 |  |  |  | 13 |  |  |  |  |  | Rate Case Software - Reg Affairs |  |  |  |  | 0.11 |  | 0.11 |  |  |  |  |  |  |  |  |  |  |  | Provide data extraction and manipulation to support NNG's next rate case.
 |  |  |  | 14 |  |  |  |  |  | Form 567 Software - Reg Affairs |  |  |  |  | 0.07
 |  |  |  |  |  | TX |  |  |  | Computer Blanket - Business Services |  |  |  |  | Incl. In IT Budget |  |  |  |  |  |  |  |  |  |  |  |  |  | Equipment Replacement and Upgrades to meet reliability and performance requirements
 |  |  |  |  |  | TX |  |  |  | Computer Blanket - Marketing |  |  |  |  | Incl. In IT Budget |  |  |  |  |  |  |  |  |  |  |  |  |  | Equipment Replacement and Upgrades to meet reliability and performance requirements
 |  |  |  |  |  | TX |  |  |  | Computer Blanket -Reg Affairs |  |  |  |  | Incl. In IT Budget |  |  |  |  |  |  |  |  |  |  |  |  |  | Equipment Replacement and Upgrades to meet reliability and performance requirements
 |  |  |  |  |  |  |  |  |  | Total Systems
 |  |  |  |  |  |  |  |  |  | Total Non Discretionary Projects
 |  |  |  |  |  |  |  |  |  | Manangement Overview |  |  |  |  | 0
 |  |  |  |  |  |  |  |  |  | TOTAL CAPITAL EXPENDITURES
 | 1/ |  | [NAME] 7.3% for Peak Day 2000 excludes interest and overheads.  With interest and overheads the Dcf is 4.2%.  The Dcf for all other projects include capitalized interest and overheads as part of the cash flow.
 |  |  |  |  |  |  |  |  |  | 2001 2nd C.E. |  |  |  |  | 22.8