Business Description

• Fifth-largest gas distribution company in U.S.
• 1.6 million gas customers
• 130 billion cubic feet of working gas storage, among the largest in the U.S.
• 25,000 miles of transmission and distribution pipeline

1998 Operating Highlights

• Delivered 360 billion cubic feet of gas
• Installed 27,000 new gas services
• Implemented pilot program to give customers choice of gas supplier
• Major marketing campaign produced record sales for Appliance Service Plans and Heating and Cooling Solutions

1999 Outlook

• Compete aggressively for customers in pilot choice programs operated by other Michigan utilities
• Expand gas distribution system to increase number of customers and the volume of gas consumed
• Install 26,000 new gas services and 650 miles of main