1. June 9, 2011

2. Overview of Gas Authority debt - attached Results of bond pricing Board action – Authorize staff to accept proposed pricing and finalize issuance on bonds June 9, 2011 Special Called Board Meeting- 2 -

3. Total Liabilities – Audited Balance Sheet at 12/31/10 $ 3,219,000,000 Less: Main Street Prepayments – Limited-recourse debt- $ 2,481,000,000 FV of Derivatives, A/P and Due to Members- $ 446,000,000 Net Portfolio III debt and other obligations $ 292,000,000  All ownership interests in oil and gas reserves including interests owned through participation in Public Gas Partners  Storage inventory and seasonal working capital  Other miscellaneous gas supplies (e.g. landfill prepayment, etc.) June 9, 2011 Special Called Board Meeting- 3 -

4. Portfolio III debt is comprised of  2 commercial bank lines of credit for MGAG and 3 lines for PGP Pool 3  2 series of short-term Notes with one maturing every 6 months, and  2 issues of 10-year amortizing bonds, 1 each by MGAG and PGP Issuance of new Gas Authority Bonds Reduces reliance on bank lines of credit and market access for additional Short-term Notes  Reduces total line of credit borrowings by $40 million and ST Notes by $10 million Takes advantage of current historically low interest rate environment  Converts variable rate obligations to fixed rates over 5-year term Maintains reasonable cash-flow flexibility over estimated lives of gas reserves  Intermediate term allows for repayment or refinancing as required by future project development and net cash flows Utilizes Gas Authority’s higher credit rating minimizing project interest costs June 9, 2011 Special Called Board Meeting- 4 -

5. Current Balance Balance with 5-Yr Bonds Change Gas Authority: Series F10-yr bonds 88,885,000 0 Series J1-yr notes67,000,00057,000,000-10,000,000 Series K1-yr notes60,000,000 0 Series L/M/N5-yr bonds050,000,000 Lines of Credit *20,000,0005,000,000-15,000,000 Total235,885,000260,885,00025,000,000 Public Gas Partners: Series A **10-yr bonds 122,000,000 0 Lines of Credit42,000,00017,000,000-25,000,000 Total164,000,000139,000,000-25,000,000 Total – All debt *399,885,000 0 * Available working capital may be utilized in lieu of lines of credit in order to minimize project interest costs ** Balance outstanding includes unamortized premium June 9, 2011 Special Called Board Meeting- 5 -

6. June 9, 2011 Special Called Board Meeting- 6 -