1. Current Pricing Projections -NYMEX futures currently $12.50-$13.50 -NYMEX futures do not fall below $10.97 through March 2010 -Current forecasts have $14.00+ from July through January -Continued price volatility and price speculation -Limited current benefit from hedging and storage injections

7. Upside Price Concerns -Lower LNG imports and world supply competition -Relatively low storage inventory -Increasing exports to Mexico, lower imports from Canada

12. Potential Downside Factors -Mild summer, moderate electric generation usage -Continued economic slowdown -No hurricanes in Gulf

13. Regulatory Actions -LIHEAP customer eligibility and sign up -Budget billing promotion (late for enrollment) -Increased conservation information to customers -Caution in TPS initiatives -20% to 30% Y/Y increases being filed -Accelerated mid year increases

14. Long-Term Considerations -Supply portfolio diversification, Gulf Coast, LNG imports, REX supply -Production area vs. Market Area Storage -Modified LDC hedging strategies