Message-ID: <13214552.1075861079722.JavaMail.evans@thyme> Date: Thu, 14 Feb 2002 10:42:56 -0800 (PST) From: shelley.corman@enron.com To: kent.e.miller@dynegy.com Subject: NNG Outline Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Corman, Shelley X-To: 'Kent.E.Miller@dynegy.com' X-cc: X-bcc: X-Folder: \Shelley_Corman_Mar2002\Corman, Shelley\Sent Items X-Origin: Corman-S X-FileName: scorman (Non-Privileged).pst Sorry I missed you this morning. Could you take a look at this description from the outline. I checked with John O'Shea and its fine for us to work together on this. I'm back in my office. Please give me a call at your convenience (x37083) Competitive Threats Northern's competitive position is bolstered by the presence of (1) long-term agreements, and (2) a configuration of small-diameter branchlines with multiple delivery points that function as an extension of the LDC's distribution system. Minnesota: ? Northern's major Minnesota customers have contracts that extend through 2007. Beyond current contract terms, there is a mid-high possibility of bypass in Minneapolis/Twin cities area (Alliance, Viking or Northern Border); low-medium bypass possibilities in Rochester and Mankato, MN (Alliance). Iowa: ? Northern recently extended the contract with its major Iowa customer (MidAmerican) thru 2005. Beyond current contract terms, Northern will face competitive threats from NGPL in the Des Moines and Sioux City. Wisconsin/Chicago: ? With several significant contract terms up for renewal in 2003, Northern will face competitive pressures in the Wisconsin and Chicago areas because market prices are below maximum tariff rates and due to the high concentration of competing pipelines. To some extent these competitive factors have already been recognized, as Wisconsin Gas has already bypassed Northern via Great Lakes. The distance of competing pipelines to many Northern towns will preclude bypass for many others. Major competitors in the market area include: ? Alliance ? ANR Great Lakes ? Natural Gas Pipeline ? Northern Border ? Trailblazer Viking