for additional information relating to the proposed merger please see our form 8-k filed on december 7 , 2010. further information concerning the proposed merger was included in a joint proxy statement/prospectus contained in the registration statement on form s-4 that was filed with the sec on february 4 , 2011. legislative and regulatory update we continue to actively pursue a regulatory strategy that improves customer service and reduces the lag between our investments in infrastructure and the recovery of those investments through various rate mechanisms . if our rate design approvals are not approved , we will continue to work cooperatively with our regulators , legislators and others to create a framework that is conducive to our business goals and the interests of our customers and shareholders . the dodd-frank wall street reform and consumer protection act ( dodd-frank act ) was enacted in july 2010 , representing an overhaul of the framework for regulation of united states financial markets . we are currently evaluating the provisions of the dodd-frank act and the potential impact that it may have on us . glossary of key terms 28 however , we believe that an aspect of the dodd-frank act which requires that various regulatory agencies , including the sec and the commodities futures trading commission , establish additional regulations for participating in financial markets for hedging certain risks inherent in our business , including commodity and interest rate risks , may be applicable to us . as a result , the costs of participating in financial markets for hedging certain risks may be increased as a result of the new legislation . we may also incur additional costs associated with our compliance with new regulations and anticipated additional reporting and disclosure obligations . for additional information on our regulatory strategy see item 1 , “ business ” under the caption “ regulatory planning ” . customer growth initiatives relative to recent years , we continue to see higher than normal rates of unemployment , depressed housing markets with high inventories , significantly reduced new home construction and a slow-down in new commercial development . as a result , we experienced slight customer losses in our distribution operations and retail energy operations segments throughout 2010. we have largely offset t his trend by implementing customer attrition mitigation strategies to retain existing customers at all of our utilities . we expect a similar environment to prevail throughout 2011. we use a variety of targeted marketing programs to attract new customers and to retain existing customers . these efforts include working to add residential customers , multifamily complexes and commercial customers who use natural gas for purposes other than space heating , as well as evaluating and launching new natural gas related programs , products and services to enhance customer growth , mitigate customer attrition and increase operating revenues . these programs generally emphasize natural gas as the fuel of choice for customers and seek to expand the use of natural gas through a variety of promotional activities . natural gas price volatility the volatility of natural gas commodity prices have a significant impact on our customer rates , our long-term competitive position against other energy sources and the ability of our wholesale services segment to capture value from location and seasonal spreads . during 2008 and 2009 , daily henry hub spot market prices for natural gas in the united states were extremely volatile . however , during 2010 , the volatility of natural gas prices was lower than it has been for the last few years as a result of a robust natural gas supply , the weak economy and ample storage . our natural gas acquisition strategy is designed to secure sufficient supplies of natural gas to meet the needs of our utility customers and to hedge gas prices to effectively manage costs , reduce price volatility and maintain a competitive advantage . additionally , our hedging strategies and physical natural gas supplies in storage enable us to reduce earnings risk exposure due to higher gas costs . it is possible that natural gas prices will remain low for an extended period based on current levels of excess supply relative to market demand for natural gas , in part due to abundant sources of new shale natural gas reserves and the lack of demand by commercial and industrial enterprises . however , as economic conditions improve the demand for natural gas may increase , natural gas prices could rise and higher volatility could return to the natural gas markets . capital market plan our capital market plan for the remainder of 2011 includes successfully completing offerings of approximately $ 1 billion in long-term debt and $ 1.4 billion in common stock to finance the proposed nicor merger and maintaining our solid investment-grade credit ratings . for additional information on our credit facility and our capital market plan see “ liquidity and capital resources ” under the caption “ cash flow from financing activities ” and “ short-term debt ” . see also note 7 to our consolidated financial statements . hedges changes in commodity prices subject a significant portion of our operations to earnings variability . our non-utility businesses principally use physical and financial arrangements to reduce the risks associated with both weather-related seasonal fluctuations in market conditions and changing commodity prices . these economic hedges may not qualify , or are not designated for , hedge accounting treatment . as a result , our reported earnings for the wholesale services and retail energy operations segments reflect changes in the fair values of certain derivatives . these values may change significantly from period to period and are reflected as gains or losses within our operating revenues or our oci for those derivative instruments that qualify and are designated as accounting hedges . seasonality the operating revenues and ebit of our distribution operations , retail energy operations and wholesale services segments are seasonal . story_separator_special_tag also contributing to the higher operating cash flows was the return of cash collateral requirements posted during 2008 due to unrealized hedge losses resulting from the dramatic decline in natural gas prices during the second half of 2008 and into 2009. cash collateral requirements decreased $ 200 million for our derivative financial instrument activities at sequent and southstar due to the change in hedge values as forward nymex curve prices shifted downward in 2009 and as positions settled . story_separator_special_tag width= `` 1 % `` > p-2 f2 senior unsecured bbb+ baa1 a- ratings outlook negative stable stable subsequent to the announcement of our proposed merger with nicor , s & p placed our long-term debt ratings and our a- corporate credit ratings on credit watch with negative implications . the primary reason for this change is the increased leverage we will assume to complete the proposed merger and the uncertainties that exist with the proposed merger . s & p 's rating for our commercial paper was affirmed a-2 . moody 's and fitch each affirmed stable outlooks for their ratings of our debt obligations based on our sufficient equity as part of the financing for the proposed merger . glossary of key terms 37 our credit ratings depend largely on our financial performance , and a downgrade in our current ratings , particularly below investment grade , could adversely affect our borrowing costs and significantly limit our access to the commercial paper market . in addition , we would likely be required to pay a higher interest rate in future financings , and our potential pool of investors and funding sources could decrease . merger financing agreements in december 2010 , we amended our existing credit facility to allow for the closing of the proposed merger with nicor . additionally , in december 2010 , we entered into a $ 1.05 billion bridge facility . the bridge facility may be used to partially finance the cash portion of our proposed merger with nicor and pay related fees and expenses in the event that permanent financing is not available at the time of the closing of the proposed merger . the bridge facility matures 364 days after funds are borrowed and any repaid amounts under the bridge facility may not be re-borrowed . the interest rate applicable to the bridge facility is the higher of ( i ) at our option , a floating base rate or a floating eurodollar rate , in each case , plus an applicable margin ranging from 0.5 % to 2.5 % based on our credit rating , and the applicable interest rate option , and subject to a 0.25 % increase for each 90 day period that elapses after the closing of the bridge facility or ( ii ) the highest interest rate we or any of our subsidiaries are paying on any similar facility . as of december 31 , 2010 , we had no outstanding borrowings under our bridge facility . we do not currently plan to draw on our bridge facility to fund the proposed merger with nicor , as we anticipate having more permanent financing in place subsequent to receipt of all regulatory approvals . default provisions our debt instruments and other financial obligations include provisions that , if not complied with , could require early payment , additional collateral support or similar actions . our credit facility contains customary events of default , including , but not limited to , the failure to pay any interest or principal when due , the failure to furnish financial statements within the timeframe established by each debt facility , the failure to comply with certain affirmative and negative covenants , cross-defaults to certain other material indebtedness in excess of specified amounts , incorrect or misleading representations or warranties , insolvency or bankruptcy , fundamental change of control , the occurrence of certain employee retirement income security act events , judgments in excess of specified amounts and certain impairments to the guarantee . our credit facility contains certain non-financial covenants that , among other things , restrict liens and encumbrances , loans and investments , acquisitions , dividends and other restricted payments , asset dispositions , mergers and consolidations and other matters customarily restricted in such agreements . our credit facility also includes a financial covenant that does not permit our ratio , on a consolidated basis , of total debt to total capitalization to exceed 70 % ( excluding for these purposes , debt incurred to partially refinance the bridge facility during the period prior to funding under the bridge facility ) at the end of any fiscal month . this ratio , as defined within our debt agreements , includes standby letters of credit , performance/surety bonds and the exclusion of other comprehensive income pension adjustments . adjusting for these items , our ratio , on a consolidated basis , of total debt to total capitalization was 58 % at december 31 , 2010 and 57 % at december 31 , 2009. as of december 31 , 2010 and 2009 , we were in compliance with all of our existing debt provisions and covenants , both financial and non-financial . additionally , our bridge facility and term loan facility each contain the same financial covenant and similar non-financial covenants and default provisions ; however , these are not effective until we draw under these facilities . our ratio , on a consolidated basis , of total debt to total capitalization is typically greater at the beginning of the heating season as we make additional short-term borrowings to fund our natural gas purchases and meet our working capital requirements . we intend to maintain our capitalization ratio in a target range of 50 % to 60 % . accomplishing this capital structure objective and maintaining sufficient cash flow are necessary to maintain attractive credit ratings . the components of our capital structure , as calculated from our consolidated statements of financial

cash flow from investing activities our net cash used in investing activities consisted primarily of pp & e expenditures . the majority of our pp & e expenditures are within our distribution operations and energy investment segments . our estimated pp & e expenditures for 2011 and our actual pp & e expenditures incurred in 2010 , 2009 and 2008 are shown within the following categories and are presented in the table below . · base business – new construction and infrastructure improvements at our distribution operations segment · regulatory infrastructure programs – programs that update or expand our distribution systems and liquefied natural gas facilities to improve system reliability and meet operational flexibility and growth . these programs include the pipeline replacement program and stride at atlanta gas light and elizabethtown gas ' utility infrastructure enhancements program . · hampton roads – virginia natural gas ' pipeline project , which connects its northern and southern systems · magnolia project – pipelines which diversify our sources of natural gas by connecting our georgia service territory to the elba island lng terminal · natural gas storage – salt-dome cavern expansions at golden triangle storage and jefferson island · other – primarily includes information technology and building and leasehold improvements replace_table_token_25_th ( 1 ) estimated pp & e expenditures our pp & e expenditures were $ 510 million for the year ended december 31 , 2010 , compared to $ 476 million for the same period in 2009. this increase of $ 34 million or 7 % was primarily due to a $ 19 million increase in expenditures for the construction of the golden triangle storage natural gas storage facility , $ 26 million in expenditures for elizabethtown gas ' utility infrastructure enhancements program and $ 84 million in expenditures for stride and $ 38 million in other capital projects in distribution operations . this was offset by reduced expenditures of $ 133 million for the hampton roads and magnolia projects , for which construction was substantially completed in 2009. the higher capital expenditures were further offset by $ 73 million in proceeds from the disposition of assets .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flow from investing activities our net cash used in investing activities consisted primarily of pp & e expenditures . the majority of our pp & e expenditures are within our distribution operations and energy investment segments . our estimated pp & e expenditures for 2011 and our actual pp & e expenditures incurred in 2010 , 2009 and 2008 are shown within the following categories and are presented in the table below . · base business – new construction and infrastructure improvements at our distribution operations segment · regulatory infrastructure programs – programs that update or expand our distribution systems and liquefied natural gas facilities to improve system reliability and meet operational flexibility and growth . these programs include the pipeline replacement program and stride at atlanta gas light and elizabethtown gas ' utility infrastructure enhancements program . · hampton roads – virginia natural gas ' pipeline project , which connects its northern and southern systems · magnolia project – pipelines which diversify our sources of natural gas by connecting our georgia service territory to the elba island lng terminal · natural gas storage – salt-dome cavern expansions at golden triangle storage and jefferson island · other – primarily includes information technology and building and leasehold improvements replace_table_token_25_th ( 1 ) estimated pp & e expenditures our pp & e expenditures were $ 510 million for the year ended december 31 , 2010 , compared to $ 476 million for the same period in 2009. this increase of $ 34 million or 7 % was primarily due to a $ 19 million increase in expenditures for the construction of the golden triangle storage natural gas storage facility , $ 26 million in expenditures for elizabethtown gas ' utility infrastructure enhancements program and $ 84 million in expenditures for stride and $ 38 million in other capital projects in distribution operations . this was offset by reduced expenditures of $ 133 million for the hampton roads and magnolia projects , for which construction was substantially completed in 2009. the higher capital expenditures were further offset by $ 73 million in proceeds from the disposition of assets .
```    
 Suspicious Activity Report : for additional information relating to the proposed merger please see our form 8-k filed on december 7 , 2010. further information concerning the proposed merger was included in a joint proxy statement/prospectus contained in the registration statement on form s-4 that was filed with the sec on february 4 , 2011. legislative and regulatory update we continue to actively pursue a regulatory strategy that improves customer service and reduces the lag between our investments in infrastructure and the recovery of those investments through various rate mechanisms . if our rate design approvals are not approved , we will continue to work cooperatively with our regulators , legislators and others to create a framework that is conducive to our business goals and the interests of our customers and shareholders . the dodd-frank wall street reform and consumer protection act ( dodd-frank act ) was enacted in july 2010 , representing an overhaul of the framework for regulation of united states financial markets . we are currently evaluating the provisions of the dodd-frank act and the potential impact that it may have on us . glossary of key terms 28 however , we believe that an aspect of the dodd-frank act which requires that various regulatory agencies , including the sec and the commodities futures trading commission , establish additional regulations for participating in financial markets for hedging certain risks inherent in our business , including commodity and interest rate risks , may be applicable to us . as a result , the costs of participating in financial markets for hedging certain risks may be increased as a result of the new legislation . we may also incur additional costs associated with our compliance with new regulations and anticipated additional reporting and disclosure obligations . for additional information on our regulatory strategy see item 1 , “ business ” under the caption “ regulatory planning ” . customer growth initiatives relative to recent years , we continue to see higher than normal rates of unemployment , depressed housing markets with high inventories , significantly reduced new home construction and a slow-down in new commercial development . as a result , we experienced slight customer losses in our distribution operations and retail energy operations segments throughout 2010. we have largely offset t his trend by implementing customer attrition mitigation strategies to retain existing customers at all of our utilities . we expect a similar environment to prevail throughout 2011. we use a variety of targeted marketing programs to attract new customers and to retain existing customers . these efforts include working to add residential customers , multifamily complexes and commercial customers who use natural gas for purposes other than space heating , as well as evaluating and launching new natural gas related programs , products and services to enhance customer growth , mitigate customer attrition and increase operating revenues . these programs generally emphasize natural gas as the fuel of choice for customers and seek to expand the use of natural gas through a variety of promotional activities . natural gas price volatility the volatility of natural gas commodity prices have a significant impact on our customer rates , our long-term competitive position against other energy sources and the ability of our wholesale services segment to capture value from location and seasonal spreads . during 2008 and 2009 , daily henry hub spot market prices for natural gas in the united states were extremely volatile . however , during 2010 , the volatility of natural gas prices was lower than it has been for the last few years as a result of a robust natural gas supply , the weak economy and ample storage . our natural gas acquisition strategy is designed to secure sufficient supplies of natural gas to meet the needs of our utility customers and to hedge gas prices to effectively manage costs , reduce price volatility and maintain a competitive advantage . additionally , our hedging strategies and physical natural gas supplies in storage enable us to reduce earnings risk exposure due to higher gas costs . it is possible that natural gas prices will remain low for an extended period based on current levels of excess supply relative to market demand for natural gas , in part due to abundant sources of new shale natural gas reserves and the lack of demand by commercial and industrial enterprises . however , as economic conditions improve the demand for natural gas may increase , natural gas prices could rise and higher volatility could return to the natural gas markets . capital market plan our capital market plan for the remainder of 2011 includes successfully completing offerings of approximately $ 1 billion in long-term debt and $ 1.4 billion in common stock to finance the proposed nicor merger and maintaining our solid investment-grade credit ratings . for additional information on our credit facility and our capital market plan see “ liquidity and capital resources ” under the caption “ cash flow from financing activities ” and “ short-term debt ” . see also note 7 to our consolidated financial statements . hedges changes in commodity prices subject a significant portion of our operations to earnings variability . our non-utility businesses principally use physical and financial arrangements to reduce the risks associated with both weather-related seasonal fluctuations in market conditions and changing commodity prices . these economic hedges may not qualify , or are not designated for , hedge accounting treatment . as a result , our reported earnings for the wholesale services and retail energy operations segments reflect changes in the fair values of certain derivatives . these values may change significantly from period to period and are reflected as gains or losses within our operating revenues or our oci for those derivative instruments that qualify and are designated as accounting hedges . seasonality the operating revenues and ebit of our distribution operations , retail energy operations and wholesale services segments are seasonal . story_separator_special_tag also contributing to the higher operating cash flows was the return of cash collateral requirements posted during 2008 due to unrealized hedge losses resulting from the dramatic decline in natural gas prices during the second half of 2008 and into 2009. cash collateral requirements decreased $ 200 million for our derivative financial instrument activities at sequent and southstar due to the change in hedge values as forward nymex curve prices shifted downward in 2009 and as positions settled . story_separator_special_tag width= `` 1 % `` > p-2 f2 senior unsecured bbb+ baa1 a- ratings outlook negative stable stable subsequent to the announcement of our proposed merger with nicor , s & p placed our long-term debt ratings and our a- corporate credit ratings on credit watch with negative implications . the primary reason for this change is the increased leverage we will assume to complete the proposed merger and the uncertainties that exist with the proposed merger . s & p 's rating for our commercial paper was affirmed a-2 . moody 's and fitch each affirmed stable outlooks for their ratings of our debt obligations based on our sufficient equity as part of the financing for the proposed merger . glossary of key terms 37 our credit ratings depend largely on our financial performance , and a downgrade in our current ratings , particularly below investment grade , could adversely affect our borrowing costs and significantly limit our access to the commercial paper market . in addition , we would likely be required to pay a higher interest rate in future financings , and our potential pool of investors and funding sources could decrease . merger financing agreements in december 2010 , we amended our existing credit facility to allow for the closing of the proposed merger with nicor . additionally , in december 2010 , we entered into a $ 1.05 billion bridge facility . the bridge facility may be used to partially finance the cash portion of our proposed merger with nicor and pay related fees and expenses in the event that permanent financing is not available at the time of the closing of the proposed merger . the bridge facility matures 364 days after funds are borrowed and any repaid amounts under the bridge facility may not be re-borrowed . the interest rate applicable to the bridge facility is the higher of ( i ) at our option , a floating base rate or a floating eurodollar rate , in each case , plus an applicable margin ranging from 0.5 % to 2.5 % based on our credit rating , and the applicable interest rate option , and subject to a 0.25 % increase for each 90 day period that elapses after the closing of the bridge facility or ( ii ) the highest interest rate we or any of our subsidiaries are paying on any similar facility . as of december 31 , 2010 , we had no outstanding borrowings under our bridge facility . we do not currently plan to draw on our bridge facility to fund the proposed merger with nicor , as we anticipate having more permanent financing in place subsequent to receipt of all regulatory approvals . default provisions our debt instruments and other financial obligations include provisions that , if not complied with , could require early payment , additional collateral support or similar actions . our credit facility contains customary events of default , including , but not limited to , the failure to pay any interest or principal when due , the failure to furnish financial statements within the timeframe established by each debt facility , the failure to comply with certain affirmative and negative covenants , cross-defaults to certain other material indebtedness in excess of specified amounts , incorrect or misleading representations or warranties , insolvency or bankruptcy , fundamental change of control , the occurrence of certain employee retirement income security act events , judgments in excess of specified amounts and certain impairments to the guarantee . our credit facility contains certain non-financial covenants that , among other things , restrict liens and encumbrances , loans and investments , acquisitions , dividends and other restricted payments , asset dispositions , mergers and consolidations and other matters customarily restricted in such agreements . our credit facility also includes a financial covenant that does not permit our ratio , on a consolidated basis , of total debt to total capitalization to exceed 70 % ( excluding for these purposes , debt incurred to partially refinance the bridge facility during the period prior to funding under the bridge facility ) at the end of any fiscal month . this ratio , as defined within our debt agreements , includes standby letters of credit , performance/surety bonds and the exclusion of other comprehensive income pension adjustments . adjusting for these items , our ratio , on a consolidated basis , of total debt to total capitalization was 58 % at december 31 , 2010 and 57 % at december 31 , 2009. as of december 31 , 2010 and 2009 , we were in compliance with all of our existing debt provisions and covenants , both financial and non-financial . additionally , our bridge facility and term loan facility each contain the same financial covenant and similar non-financial covenants and default provisions ; however , these are not effective until we draw under these facilities . our ratio , on a consolidated basis , of total debt to total capitalization is typically greater at the beginning of the heating season as we make additional short-term borrowings to fund our natural gas purchases and meet our working capital requirements . we intend to maintain our capitalization ratio in a target range of 50 % to 60 % . accomplishing this capital structure objective and maintaining sufficient cash flow are necessary to maintain attractive credit ratings . the components of our capital structure , as calculated from our consolidated statements of financial

