Slide 25 of 27

Residential consumers are projected to spend an additional 10 percent on natural gas (all uses) this winter.

With projections of normal winter weather, residential consumption is projected to be about 3,840 Bcf and would result in total expenditures of $25.9 billion during the heating season.

The expected increase in expenditures of about $2.5 billion over last year’s level is primarily the result of a 260 Bcf expected increase in residential consumption.

This is in sharp contrast to what occurred in the winter of 1996/97 when expenditures increased sharply, compared to the previous winter, although consumption declined as a result of warmer temperatures.