1999 Mastio Natural Gas Pipeline Survey

1. 1999 Mastio Natural Gas Pipeline Survey Results for Northern Border Pipeline March 3, 2000

2. Mastio Index* Rankings for Enron Pipelines 1999 1998 1996 1994 *The Mastio Index is a composite of the overall customer satisfaction and pipeline preference based on all attributes measured, weighted by customer needs as defined by all 1,257 customers surveyed. The overall scores are converted to a 100 point scale with a higher score being preferable.

3. NBPL Focus Group Contract Holder or Managing Agent % of Revenue Pan Alberta 25.5% Tenaska 15.6% Cibola 11.1% Pan Canadian Energy 7.1% ENA 6.8% Engage 6.1% Dynegy Marketing & Trade 3.4% Amerada Hess 3.3% Poco Petroleum 3.2% Husky 3.1% Renaissance Energy Ltd. 2.7% CXY Energy Marketing 2.1% Duke Energy 1.9% The Peoples Gas Light & Coke 1.2% El Paso Energy Marketing .6% Mid American Energy Co. .4% Total 94.1%

4. Overview of Findings • 1999 survey results vs. 1998 survey results • Industry mean increased 2.2% • NBPL ratings increased 2.6% • Conclusion: NBPL overall ranking increased .4% • All NBPL respondents vs. NBPL focus group • Only a 1.6% difference in response ratings • 12 attributes differed in whether or not the respondents rated them a strength or a weakness • Conclusion: The NBPL focus group is a good study sample • NBPL focus group commercial vs. NBPL focus group commercial support • Only a 2.6% difference in response ratings • 11 attributes differed in whether or not the respondents rated them a strength or a weakness • Conclusion: commercial and commercial support customers think differently on some attributes, but overall, they rank our service the same

5. Overview of Findings (cont’d) • Comparison by customer type (focus group only) • Producers 2.43 • Marketers 2.02 • LDCs 2.09 • Generation company 2.39 • Conclusion: our customers give us a “good” rating, with not much difference by customer type Overall Performance Scores • Overall performance - 2.09 (mean = 2.23) • Overall service - 2.04 (mean = 2.24) • Need weighted composite score* - 2.24 (mean = 2.24) • Pipeline preference score - 2.14 (mean = 2.95) Rating Scale 1=Excellent 4=Below Average 2=Good 5=Poor 3=Average The average of these four categories determines the overall Mastio Index ranking *Need weighted composite score - an average of all 40 attributes which are weighted by their score on the importance scale

6. Overall Areas of Strength* and Customer Comments** • Pipeline Understands needs and requirements • Customer comment: Biggest improvement - Expansion into the Chicago area • Accurate, concise and understandable contracts • Capacity release procedures • Accurate and timely invoices • Responsive sales and service personnel • Customer comments: Reps return calls quickly and are helpful Very responsive to our needs • Reps communicate clear tariff information • Quality/maturity of marketing, sales and service reps • Customer comment: They have the best recognition of the customer Good about making courtesy calls • Other Positive Customer Comments • They hired more staff to become more customer focused • Help desk response is excellent • Biggest improvement: They are willing to discuss new pricing possibilities *These strengths were gathered by looking at the attributes that NBPL ranked the highest on and weighing those attributes against importance level to customers **Customer comments are from individual customers and do not necessarily reflect majority opinion

7. Overall Areas of Weakness* and Customer Comments** • Gas pooling and aggregation service • Ability to negotiate discounts • Customer comments: Rates are not competitive Biggest disappointment:Their rates Passing on costs that shouldn’t be passed on • Storage service • Customer comments: Need parking and loan services Offer storage services • Availability of capacity • Access to diverse supply • Customer comment: Need to extend further into market territories • Reliability of primary firm gas transport • Customer comment: Lots of cuts with them • Reliability of primary interruptible gas transport *These weaknesses were gathered by looking at the attributes that NBPL ranked the lowest on and weighing those attributes against importance level to customers **Customer comments are from individual customers and do not necessarily reflect majority opinion

8. Improving Customer Service • Continue to address the rate competitive issues in the current rate case • Explore expanding the “global point” concept, where third-party storage providers offer real time load balancing services via Northern Border • Focus attention towards improving the Internet web site to proactively communicate information to customers • Monthly status report on improvements • Tutorials on using existing tools and services that are currently not fully utilized • Work with third-party storage providers on the development of a branded Northern Border park and loan/storage services

9. Improving Customer Service • Further investigate opportunities to diversify supply (i.e. increase the receipt of Williston Basin, Rocky Mountain, and Wyoming coal seam gas) • Assist ENA and Peoples Energy in the development of a Chicago hub service, increasing the market alternatives for Northern Border’s customers • Offer new enhancements, such as “rollover” and fuel as a market, to simplify how nominations are made on Northern Border