Indianapolis Coke Employees Notified of Possible Layoff
Talks to Sell Plant Ongoing

INDIANAPOLIS – Citizens Gas & Coke Utility today notified approximately 300 employees of its Indianapolis Coke Manufacturing Division that they could be laid off in 60 days because of the possible sale of the plant.

Citizens Gas made the notification in accordance with the Worker Adjustment and Retraining Notification (WARN) Act, a federal law requiring 60-day notification of possible employee layoffs. Employees received the notification in a letter and meetings are being held with employees at the plant, which is located at 2950 Prospect Street on the city’s southeast side.

“For several months now we have been exploring various options related to the future of Indianapolis Coke, including a possible sale of the plant. We are concluding that process and we remain optimistic that ongoing talks to sell the facility will be successful. We realize the uncertainty of the past several months has been very stressful for Indianapolis Coke employees. We will notify employees as soon as possible concerning the outcome of our talks to sell the facility and of a definite layoff date,” said Carey Lykins, President and CEO of Citizens Gas & Coke Utility.

Citizens Gas announced in October 2006 that it was considering selling Indianapolis Coke because operating the plant no longer fits with the company’s long-term strategy to be in the utility services business. Citizens Gas phased out manufactured gas deliveries from Indianapolis Coke to its Gas Division in the late 1990s with growing natural gas supplies from interstate pipelines.

Citizens Gas expects there to be limited opportunities for Indianapolis Coke employees to transfer to other parts of the utility in the event the plant is sold and employees laid off. Transfer rights for bargaining unit employees are governed by three union contracts currently in place across the utility. Once the process of trying to sell the facility is concluded, decisions will be made regarding various benefit issues, including severance pay and continued health coverage. Benefit decisions for bargaining unit employees will be governed by the contract with IBEW Local 1400.

Citizens Gas has already offered an enhanced early retirement package to 41 Indianapolis Coke employees age 50 and over on or before March 30, 2007. These employees have 45 days from February 6, 2007 to consider the offer and a 14-day period to revoke their decision.

Indianapolis Coke produces coke and various chemical by-products for industrial use. Coke is a pure hydrocarbon made by baking coal at high temperatures. Coke is used as a fuel in the steel and metal fabricating industries. Last year the plant produced about 500,000 tons of coke for customers across the Midwest.

About Citizens Gas
Citizens Gas & Coke Utility is a Public Charitable Trust providing efficient and reliable energy services to more than 266,000 customers in and around Marion County. The Public Charitable Trust means the utility is managed only for the benefit of customers and the community.

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