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SouthStar Energy Services Andrew W. Evans Vice President-Finance and Treasurer Slide 2 2003 Analyst/Investor Conference2 How Did We Get Here? Slide 3 2003 Analyst/Investor Conference3 What A Difference A Year Makes Increased ownership to 70% (Dynegy buyout) Improved credit quality of customer base Stabilized market share Continue customer service and credit quality improvements Progress toward resolution of disproportionate sharing issue Slide 4 2003 Analyst/Investor Conference4 SouthStar Has Become A Solid Annuity-Quality Earnings Contributor *Denotes earnings for 100% of the partnership. $45-55 Slide 5 2003 Analyst/Investor Conference5 Largest Retail Marketer in Georgia SouthStar markets natural gas in Georgia under the trade name Georgia Natural Gas (GNG) SouthStar consistently has 10% lead over second- largest marketer (538,000 customers) Slide 6 2003 Analyst/Investor Conference6 Stabilized Market Share SouthStars market share is fairly constant at around 37% Slide 7 2003 Analyst/Investor Conference7 Retail Pricing in Georgia $/therm Slide 8 2003 Analyst/Investor Conference8 An Average Customer Bill in Georgia *Total Monthly Bill for Typical Customer. Slide 9 2003 Analyst/Investor Conference9 Significantly Reduced Bad Debt Bad Debt as % of Revenue Slide 10 2003 Analyst/Investor Conference10 Focus on Aggressive Collections and Credit Scoring $ millions Slide 11 2003 Analyst/Investor Conference11 Majority of Margin Now Results From Fixed Charges Slide 12 2003 Analyst/Investor Conference12 Recent Marketing Activities Slide 13 2003 Analyst/Investor Conference13 What To Expect in 2004 Resolve disproportionate sharing issue Drive lower cost structure and effective hedging programs Increase share of high-value customers Higher usage Higher load factor Higher credit quality