1 Enron North America Gas LogisticsAn Overview

2 Gas Logistics IntroductionGas Logistics is part of the Energy Operations group under the Enron Networks organization Partners with the Commercial, Origination and Settlements teams to optimize value and minimize operational risk

3 Gas Logistics IntroductionResponsible for the scheduling of all physical transactions Coordinates movement of gas across national pipeline grid Acts as bridge between Commercial desks and Settlements team Works to minimize operational risk and identify opportunities to add value Coordinates operational issues & acts as liaison for asset management customers

4 Timely/Intraday Nomination Timeline(All Times Central Clock Time) Calendar Day 10th Gas Day 11th Evening* Bump 6:00 PM 12 AM 12 AM Timely* 11:30 AM 9:00 AM 3:30 PM 9:00 PM 10:00 PM 4:30 PM Timely Noms due for Gas Day 11th Timely Operator Confirmation Timely Scheduled Quantities Available Evening Noms due Evening Operator Confirmation Evening Scheduled Quantities Available Calendar Day 11th Gas Day 11th Intraday 1* Bump 10:00 AM Intraday 2* 5:00 PM 12 AM 12 AM 9:00 AM 1 PM 2:00 PM 8:00 PM 9:00 PM Gas Day ends 11th begins Intraday 1 Noms due (Gas Flow to 5:00pm) Intraday 1 Operator Confirmation Intraday 1 Scheduled Quantities Available Intraday 2 Noms due (Gas Flow to 9:00pm) Intraday 2 Operator Confirmation Intraday 2 Scheduled Quantities Available Calendar Day 12th Gas Day 11th 12 AM 12 AM 9:00 AM 9:30 AM Gas Day 11th ends Final Scheduled Volumes Available *Allow 15 minutes for EDI/EDM

5 Gas Logistics

6 Gas Logistics HeadcountTraders = 57 Schedulers = 80+

7 Logistics: Number of Paths & Cost Per PathSince September 1999 the Cost per Path has decreased as the Number of Paths has increased.

8 EES Gas Logistics

9 EES Gas Logistics InformationManages an excess of 16,000 deals supplying gas to approximately 15,000 counterparts. Nominations sent to approximately 30,000 meters on approx. 30 pipelines and behind approx. 100 LDC’s. Customer account management includes load forcasting, consumption management, daily & monthly account balancing, daily scheduling, internal deal pricing and volumetric capture across 4 un-integrated systems, as well as storage and synthetic storage account management. Establishes, communicates, and confirms delivery instructions with buyers and sellers. Receives invoices relating to product transportation & reviews economic terms.

10 EES Gas Logistics InformationSupport commercial teams – daily intelligence gathering, including pipeline information, position worksheets, storage levels, and any other data deemed critical or useful to traders/originators. Monitor day forward trades to ensure books are flat Monitor trading activities (internal & external) Resolve issues that stem from trading (bridge monitoring) Report daily, monthly, year to date, etc. . .trading activities.

11 EES East Gas Logistics Pipelines & LDCsAlgonquin Gas Transmission Company Allegheny Power Atlanta Gas Light Company Bay State Gas Company Boston Edison City of Olive Branch Columbia Gas of Maryland, Inc. Columbia Gas of Ohio, Inc. Columbia Gas of Pennsylvania, Inc. Columbia Gas of Virginia Columbia Gas Transmission Corporation Columbia Gulf Transmission Commonwealth Gas Connecticut Natural Gas Corporation Consolidated Edison, Inc. Consolidated Natural Gas Company Crossroads Pipeline Company Delta Natural Gas Company, Inc. Dominion Hope Elizabethtown Gas Company Empire State Pipeline Company Equitable Resources Inc. Florida Gas Transmission Company Iroquois Gas Transmission System L.P. Jackson Energy Authority Key Span Energy Delivery KNG Energy, Inc. Long Island Power Authority Louisville Gas & Electric Company Nashville Gas Company National Fuel Gas Distribution Corporation National Fuel Gas Supply Corporation New Jersey Natural Gas Company, Inc. New York State Electric & Gas Corporation

12 EES East Gas Logistics Pipelines & LDCs ContinuedNiagara Mohawk Power Corporation North Carolina Natural Gas Corporation Northeast Ohio Natural Gas Corp. PECO Energy Company Penn Fuel Gas, Inc. Pennsylvania Gas & Water Company Peoples Natural Gas Company Piedmont Natural Gas Company, Inc. Public Service Company of North Carolina, Inc. Public Service Electric & Gas Company Rochester Gas & Electric Corporation South Jersey Gas Company Southern Connecticut Gas Company Southern Natural Gas Company TECO Peoples Gas Tennessee Gas Pipeline Co. Texas Eastern Transmission, LP Texas Gas Transmission Corporation The Cincinnati Gas & Electric Company The Dayton Power & Light Company The East Ohio Gas Company The Providence Gas Company The Union, Light, Heat & Power Company Transcontinental Gas Pipe Line Corporation UGI Corporation Virginia Natural Gas, Inc. Washington Gas Light Company Western Kentucky Gas Company Yankee Gas Services Co, Inc.

13 EES West Gas Logistics Pipelines & LDCsAmarillo Natural Gas, Inc. El Paso Natural Gas Company Gulf South Pipeline Company, LP Long Beach Gas & Electric Dept. Northwest Natural Gas Company Pacific Gas & Electric Company PG & E Gas Transmission, Northwest Corporation Public Service Company of Colorado Public Service Company of New Mexico Puget Sound Energy Questar Gas Co. San Diego Gas & Electric Company Southern California Gas Company Southern Union Company Southwest Gas Corporation Transwestern Pipeline Company TXU Gas Distribution (formerly Lone Star) Williams Gas Processing Company

14 EES Central Gas Logistics Pipelines & LDCsAmerenUE ANR Pipeline Company Arkansas Oklahoma Gas ATCO Midstream Central Illinois Light Company Central Illinois Public Service Company CMS Trunkline Gas Company Consumers Energy Company Dominion Peoples Enbridge Consumers Gas Enbridge Midcoast Energy, Inc. IES Utilities, Inc. Illinois Power Indiana Gas Company, Inc. Kansas Gas Service Company (a division of Oneok, Inc.) Laclede Gas Company Madison Gas & Electric Company Michigan Consolidated Gas Company Michigan Gas Utilities, a Division of Utilicorp United Inc. MidAmerican Energy Holdings Company Mississippi River Transmission Corporation

15 EES Central Gas Logistics Pipelines & LDCs ContinuedMissouri Gas Energy Missouri Public Service Natural Gas Pipeline Company of America Nicor Gas North Shore Gas Company Northern Indiana Public Service Company Northern Natural Gas Company Oklahoma Natural Gas Co. Oneok Gas Transportation, LLC Panhandle Eastern Pipe Line Co. Peoples Natural Gas Reliant Energy Arkla Reliant Energy Gas Transmission Company SEMCO Energy Gas Company St. Joseph Light & Power Co. The Peoples Gas Light & Coke Company Timbers Gas Transcanada Pipelines Limited Union Gas Limited United Cities Gas Company Williams Gas Pipelines Central, Inc. Wisconsin Electric Power Co. Wisconsin Gas Company Wisconsin Public Service Corporation

16 Electronic Commerce/Regulatory Affairs

17 Electronic Commerce InformationExchanging electronic files with 36 pipelines. EDI X12 on 30 pipelines and proprietary files on 6 pipelines. Majority of gas business is scheduled through the use of EDI (approx. 75%). Average number of EDI transactions Per day 1,013 Per month 31,430 Per year 377,160 Expected electronic transaction growth of 15% with EES. ENA is 85% of the files and 40% of the transactions through the Enron EDI Corporate Hub.

18 Regulatory Affairs InformationActs as liaison between Government Affairs and the Logistics & Commercial teams. Monitors pipeline tariff changes to advocate on behalf of Enron for favorable operating conditions. Communicates changes in FERC Policy and in pipeline services to Commercial & Logistics. Responsible for all Regulatory reporting relating to Enron’s import and export of natural gas. Handles FERC data requests and other ad hoc data requests.

19 East Gas Logistics

20 Southeast Pipelines Average Daily Throughput 5.4 BCF supply & 5.4 BCF market KOCH Gateway/United KOCH Midstream Leviathan Gas Louisiana Intrastate Gas MOPS – Florida Sabine Pipeline Sabine Hub Sea Robin South Georgia Pipeline Southern Natural Tennessee Stingray Texas Gas Transmission Venice Gas Gathering System Acadian Pipeline Bridgeline Cavallo Pipeline Chandeleur Pipe Line Citrus Columbia Gulf Cyprus Destin Discovery Florida Gas Garden Banks Green Canyon Pipeline

21 Northeast Pipelines Average Daily Throughput 5.4 BCF supply & 5.4 BCF market Alabama Tennessee Algonquin Central Texas Gathering System Columbia Natural Resources Columbia Gas of Kentucky Columbia Gas Transmission Consolidated Natural Gas Cove Point Eastern American Energy Eastern States Energy East Ohio Gas East Tennessee EGSI (Exxon) Equitran Gatherco Hattiesburg Storage Iroquois Marco National Fuel New Waskom Norse Olympic Pipeline Somerset Texas Eastern Transco Transco Louisiana Intrastate

22 East: Asset Management DealsVirginia Natural Gas (owned by Atlanta Gas Light) – Peak delivery of 330,000 mmbtu/day with transport & storage assets on: Columbia Gas Columbia Gulf Dominion Cove Point Storage Tennessee Transco

23 East Gas Logistics InformationSoutheast – average daily throughput is 5.2 BCF of supply transactions & 5.2 BCF of market transactions. Northeast – average daily throughput is 5.6 BCF of supply transactions & 5.6 BCF of market transactions. Logistical interactions include internal & external groups such as origination, structuring, trading, volume management, settlements, deal validation, deal confirmation, global, risk, external pipeline personnel & external industry counter parties. Approx. 80 % of transactions are via Enron Online on a daily basis on the East desk Majority of deals are day spot transactions, followed by base load deals, & finally term deals.

24 West Gas Logistics

25 West Pipelines Colorado Interstate El Paso Natural GasFort Union (FUGG) Hub Services (Park) Kern River Lost Creek (LCG) Mojave Pipeline Montana Power Northwest Pipeline Pacific Gas & Electric Pacific Gas Transmission Public Sevice of Colorado Questar Rulison Gas Company, LLC SoCal Storage Southern California Gas Sumas (SIPI) Trailblazer Pipeline Transcolorado Transwestern Williston Basin Wyoming Interstate Co. Williams Field Services

26 West Gas Logistics InformationTotal daily physical volumes range from 7 to 10 bcf a day. Approximately 90 to 95% of physical trades are EOL deals.

27 Central Gas Logistics

28 Central Pipelines ANR Field Services ANR PipelineConsumer’s Energy Co. Empire Enogex Enron Gas Gathering GPM Gas/GPM Great Lakes Gas Transmission Michcon Mississippi River Natural Gas Pipeline Northern Border Northern Natural Gas Northern Illinois Gas Company Northern Indiana Public Service Co. Oklahoma Natural Gas Panhandle Eastern Pipeline Panhandle Field Services Reliant Energy Field Services Reliant Energy Gas Transmission The People’s Gas Light & Coke Transok Trunkline Williams Natural Gas

29 Ontario Pipelines Ontario Region Transcanada PipelineUnion Gas Pipeline

30 Central: Asset Management DealsThe People’s Gas Light & Coke Company – Manage transportation for: Peoples Gas Light & Coke Company & Northshire Gas Company on Northern Border Pipeline (approximately 261,000 mmbtu/day). Natural Gas Pipeline (64,400 mmbtu/day summer), 114 mmbtu/day winter).

31 Central Gas Logistics InformationAverage transactions approx. 10 BCF Logistical interactions include internal & external groups such as origination, structuring, trading, volume management, settlements, deal validation, deal confirmation, global, risk, external pipeline personnel, & external industry counter-parties. Approximately 90% of all transactions are via EnronOnline on a daily basis for the Central Desk. Majority of deals are daily spot transactions, followed by base load deals and finally, term deals.

32 Texas Gas Logistics

33 Wellhead Gas Logistics

34 Texas Pipelines Amaco Pipeline Black Marlin (Blue Dolphin)Channel Pipeline Dow Pipeline Duke Energy Guadalupe East Texas Gas (ETXC) EasTrans Pipeline Houston Pipeline Lone Star (TXU Gas Dist.) Moss Bluff Storage (MOSS) NNGB (formerly Black Marlin) Oasis Pipeline (OPLC) Pan Grande PGE PowerTex (LG&E Nat) Sea Hawk-Seagull Shoreline TUFCO Winnie Pipeline (Centana)

35 Wellhead Pipelines Central Region Northeast Region ANR Pipeline HIOSMOPS Natural Gas Pipeline NorAm Field Services NNG NorAm (ARKLA) ONG PEPL Trunkline UT Offshore Northeast Region Central Texas Gathering Columbia Gas Transmission Columbia Gulf Tennessee Gas Texas Eastern Transco Venice Gas Gathering Southeast Region Discovery Florida Gas KOCH Gateway/United KOCH Midstream Southern Natural Tennessee Stingray Texas Gas Transmission

36 Texas Gas Logistics InformationOver 600,000 Mmbtu in daily physical volumes Currently in a re-building phase – adjusting from an asset based trading organization (with Houston Pipe Line) to a strictly marketing organization Increasing Enron’s presence in non-liquid trading areas, partnering with pipelines that were previously our competitors 90% of physical trades currently transacted on EOL, expect to decrease that percentage None at this time.

37 Wellhead Gas Logistics InformationStaff of 3 full time schedulers handling over 900,000 mmbtu/day on 30 pipes. Staff of (3) full time schedulers handling over 900,000 mmbtu/d on 30 pipes. This should be changed to Wellhead Logistics, Texas and Wellhead are no longer combined.

38 Transport Rate

39 Transport Rate RegionsWest Central Southeast Northeast Texas

40 Transport Rate InformationMaintain & update all pipeline tariff & fuel rates in Unify. Create/update transport capacity, storage, & usage tickets in Sitara. Verify all transport invoices for accuracy of rates. Responsible for flashing transport expense (demand, commodity, & reimbursements) that impacts p & l, general ledger, & O/A. Work closely with schedulers on pathing & rate issues to prevent re-work.