Slide 25 of 26
Notes:
- A third asset-backed venture is the Horizon Pipeline.
- Horizon is a 50/50 joint venture between Nicor and Natural Gas Pipeline Company of America, a subsidiary of Kinder Morgan.
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- Operational since the spring of 2002.
- Initial equity investment of about $16 million.
- 74-mile pipeline: the pipeline, which has 380 MMcf/day capacity and is nearly fully subscribed, runs between Joliet, Ill., north to a point near the Wisconsin border.
- Strategically located: within the preferred development corridor of potential future power generators, which provides key competitive advantages over other pipeline alternatives in our territory.
- Expandable: has strategic extension and expansion potential to meet economic growth in the region.
- Horizon contributed about 2 cents per share of earnings last year.
- Over the long-term we expect after-tax average returns on equity of 10 to 15 percent (consistent with other FERC investments) .
