1. Colorado Interstate Gas Company Wyoming Interstate Company Cheyenne Plains Gas Pipeline Company Customer Advisory Group Update January 13, 2010 – Denver January 14, 2010 – Houston

2. 2 Purpose of Meeting Provide an update on the Xpress system rewrite and plans for 2010 2010 Goals: Accelerate the scheduling and invoicing rewrites Make only modest enhancements to existing Xpress system (“Legacy Xpress”) Evaluate consolidating transportation systems for all El Paso pipelines

3. 3 Agenda Xpress System Rewrite Update Legacy Xpress Changes Planned for 2010  Improvements to Headstation Pools  Customer requests for changes to Legacy Xpress Questions Contacts Appendix

4. Xpress System Rewrite Update Janice Parker Vice President Customer Services Kate Olson Principal Customer Service Kathy Royal Manager NAS Solutions

5. Xpress System Rewrite Update Adjusted Timeline Nominations and Scheduling Changes Gas Accounting Changes 5

6. Xpress System Rewrite Original Plan Original goal of completely rewriting Xpress by September 30, 2011 Phased approach  New system framework / functionality (2009) √  Streamlined Security system (2009) √  Allocations and Storage system – Customer access (July 2009) √  Remaining core systems  2010 – Contracting, Imbalance, Invoicing  2011 – Capacity Release, Nominations, Scheduling 6

7. New Company Initiative Consolidating Transportation Systems El Paso’s vision for the future is focused on  More standardization  Leveraging best practices  Using economies of scale One key initiative will be preliminary assessment of a consolidated transportation system for all El Paso pipelines  January-July 2010 analysis phase  August 2010 decision phase  Ensure 2010 Xpress changes add value Original plan for Xpress is being modified 7

8. Xpress System Rewrite Revised Plan 2010 Goals for Xpress Enhancements  Deliver value in 2010  Minimize risks of older technology  Improve accuracy 2010 Revised Plan for Xpress Rewrite  Scheduling Rewrite – Kathy Royal, business lead  Invoicing Rewrite – Sally Wood, business lead Dedicating resources during Analysis Phase for a consolidated system 8

9. Xpress System Rewrite System Consolidation Analysis CIG Pipelines Analysis Team Sally Turley, Contracts and Capacity Release  Edgar Trillo, backfill for day-to-day management John Driscoll, Nominations and Scheduling  Julie Adams, backfill for day-to-day management Mary Sue McNeal, Customer Services  Kate Olson, backfill for day-to-day management 9

10. 10 Xpress System Rewrite Nominations & Scheduling Focus on redesigning and rewriting:  Capacity Allocation  Balancing  Confirmation Processes  Graphical Pipe Screen Accelerated Implementation - November 2010 Rewrites to Scheduling screens and reports will be delayed until decision about consolidated system

11. 11 Xpress System Rewrite Nominations & Scheduling What’s in it for Our Customers  Flexible receipt and delivery point scheduling (automated and enhanced flow day diversion)  Changing ranks effectively during all cycles  Additional Reduction Reason Codes  Consistent and understandable scheduling results  Stable scheduling module

12. Xpress System Rewrite Customer Impact 12 Customers enter nominations and confirmations using existing screens NO CHANGE CIG Schedulers process transactions using enhanced tools and processes Adds Reliability, Flexibility and Accuracy Customers use existing reports NO CHANGE

13. 13 Xpress System Rewrite Flexible Receipt and Delivery Point Scheduling Support nomination changes to key elements in subsequent intra-day cycles without losing previous cycle scheduling priority  Change your receipt points, delivery points, or both  Change ranks each cycle  Change your upstream and downstream contract/DUNS  Change your package ID  Just a note: nominations scheduled through a new constraint may still have reductions and EPSQ rules will still apply Exceeds the requirements of the new NAESB standard for receipt and delivery point flexibility (1.3.80)

14. 14 Xpress System Rewrite Additional Reduction Reason Codes Update - We will not plan to do this one at this time.

15. 15 Xpress System Rewrite Additional Reduction Reason Codes Update - We will not plan to do this one at this time.

16. 16 Xpress System Rewrite Additional Reduction Reason Codes

17. 17 Xpress System Rewrite Gas Accounting Allocations (New) System provided to customers in July 2009  Allocations  Storage Allocations (query capability added Oct 2009)  Customer-designed Allocation Reports  Significant query capability December 2009 Enhancements  Create shared query; only originator can change query  Set a default query  Customize query display  Change application colors Requested report enhancements in progress

18. 18 Xpress System Rewrite Gas Accounting Detailed materials posted on the CIG EBB  Go to the Informational Postings section, click on Other, then on Informational Look up, and finally on Training Materials  The file is named Xpress (new) Roll out 2009.pdf Kate Olson and Troy Jackson are available to provide one-on-one training on the new Xpress Allocation System. Please call them at 1-866-523- 4243 to schedule a date and time for training at your office.

19. 19 Xpress System Rewrite Gas Accounting New Imbalance and Invoicing System  Accelerated implementation: October 2010  New query capability including drilldown features  Imbalance report will be separate from invoice  Canned reports requested by customers  Consolidated reporting location  Upgrades oldest technology in the Xpress system

20. Legacy Xpress Changes Planned for 2010 Kathy Royal Manager Nominations and Scheduling Solutions

21. Legacy Xpress Changes Planned for 2010 Improvements to Headstation Pools  Customer Requests  Location versus Headstation Pools Pros and Cons  Our Proposed Solution  Discussion and Decision Remaining Customer Requests  Only High-Value Improvements Planned for 2010  Many Requests Deferred for Later Assessment 21

22. Legacy Xpress Changes Planned for 2010 Customer Requests Requested Headstation Pool Enhancements  Easier Pool-to-Pool trading  Pooling regions that match market needs  Simpler, easier way to submit pool nominations  Better tracking  Now 22

23. Current Location versus Headstation Pools Status 23

24. 24 Legacy Xpress Changes Planned for 2010 Easier Pool-to-Pool Trading Eliminate requirement to designate aggregate and title transfer tracking pools Use only one pooling account to aggregate supply, disaggregate supply, and trade with another pool

26. Redefine North Headstation Pool Areas

27. Legacy Xpress Changes Planned for 2010 New Screens and Tracking Headstation Pool screens updated to have same look and feel as current Location Pool screens  UPDATED Headstation Pooler Confirmation Screen  NEW Supply Status Screen  NEW Market Status Screen  NEW Supply Tracking Screen  NEW Market Tracking Screen 27

28. Pooler Confirmation Screen same as Location Pool 28 Legacy Xpress Changes Planned for 2010 HSP Screens Look and Feel

29. Supply Status Screen same as Location Pool 29 Legacy Xpress Changes Planned for 2010 HSP Screens Look and Feel

30. Market Status Screen same as Location Pool 30 Legacy Xpress Changes Planned for 2010 HSP Screens Look and Feel

31. Supply Tracking Screen same as Location Pool 31 Legacy Xpress Changes Planned for 2010 HSP Screens Look and Feel

32. Market Tracking Screen same as Location Pool 32 Legacy Xpress Changes Planned for 2010 HSP Screens Look and Feel

33. Proposed Location versus Headstation Pools Status 33 * With implementation of proposed changes

34. Today’s Pooling Shipper Buys at Many Location Pools 34 BLF ES2 BKF FRD LOS DOR KIN KAN LP TSA LP TSA LP TSA LP TSA LP TSA LP TSA LP TSA LP TSA TSA – Shipper’s Transport LP – Location Pool HSP – Headstation Pool Shipper manages supply at a lower and more complex level of detail

35. New Pooling Paradigm Shipper Buys from One Headstation Pool 35 BLF ES2 BKF FRD LOS DOR KIN KAN HSP TSA Shipper manages supply at a higher and simpler level of detail Shipper manages supply at a lower and more complex level of detail TSA – Shipper’s Transport LP – Location Pool HSP – Headstation Pool LP TSA LP TSA LP TSA LP TSA LP TSA LP TSA LP TSA LP

36. Staying in the accounting loop 36 BKF KIN BLF Pooler 1 NHP TSA1 Pooler 2 NHP TSA2 Pooler 3 NHP TSA3 Pooler 4 NHP TSA4 TSA – Downstream Shippers’ Transport NHP – North Headstation Pool

37. RLOC NHP TSA DLOC RLOC NHP TSA SHP DLOC TSA RLOC NHP TSA NHP DLOC TSA RLOC LP TSA DLOC RLOC NHP DLOC LP TSA RLOC NHP DLOC TSA TSA – Shipper’s Transport LP – Location Pool NHP SHP – North Headstation Pool or South Headstation Pool

38. Impact of constraints upstream of the Headstation Pool 38 BKF KIN BLF Pooler 1 NHP TSA1 TSA2 2000 5000 Kanda West Constraint Laramie East Constraint At Kanda West, Pooler 1 is evaluated based on the contractual rights (primary or secondary) of TSA2 and the Secondary rights of TSA1 (because of the Pool-to-Pool configuration, we do not translate entitlements through a pooling stream). At Laramie East, both Shippers are evaluated based on their contractual entitlements. Pooler 2 NHP TSA1 & TSA2 – Firm Transportation Agreements NHP – North Headstation Pool

39. 39 More Headstation Pool Information Mike Baker is available to provide one-on-one training on Headstation Pools and/or any other Nominations and Scheduling topic. Please call him at (719) 520-4733 to schedule a date and time for training at your office.

40. 40 Legacy Xpress Changes Planned for 2010 Improvements to Headstation Pooling Customer Decision Point Recap of Headstation Pool Proposal  New Pooling Areas  More Flexibility  New Screens Decision Point  If customers see the value, we are proposing these changes for implementation in 3Q 2010 Please refer to the Meeting Minutes posted under this same folder for an update on the revised proposal by CIG based on customer feedback

41. Other Requested Changes Curtis Claar Supervisor Nominations and Scheduling Solutions

42. 42 Additional Legacy Xpress Changes Customer Requests Proposed for implementation during 2010, as resources are available  Make Contract Tracking Report at entity level  Create Interconnect Operator Reduction Report to display all transactions for locations having reductions (CIG Proposal is to offer existing Interconnect Operator Report at entity level)  Show requests to operators after the nomination is saved  Add Ranks and Reduction Reason Codes to Contract Tracking Report  Provide a copy option on the One Receipt One Delivery screen

43. 43 Additional Legacy Xpress Changes Customer Requests Status of all customer requests in attached Appendix Further changes to Legacy Xpress need to be set aside so we can remain focused on the Scheduling Rewrite and the Consolidated System analysis Customer input will be used during Consolidated System analysis to achieve best practices If Consolidated System is not pursued, CIG will finish rewrite of Xpress in 2011

44. Recap of 2010 Plan for Xpress Changes Xpress System Rewrite  Adjusted timeline  Nominations and Scheduling Changes  Gas Accounting Changes Changes to Legacy Xpress  Pool-to-Pool  Minimal High-Value Changes  Focus on Consolidated System Review Questions and Next Steps 44

45. 45 CIG Contact Information Marketing Will Brown, Director (719) 520-4250 Contracts and Capacity Release Edgar Trillo Tonie Stephens (719) 520-4453(719) 520-4847 Nominations and Scheduling Julie AdamsCurtis Claar, NAS SolutionsJohn Driscoll, Manager (719) 520-4326(719) 667-7516(719) 520-4471 Customer Service (Allocations, Imbalances, and Invoicing) Kate Olson Troy JacksonMary Sue McNeal, Manager (719) 520-4784 (719) 520-4705(719) 520-3766

46. Appendix Changes Requested by Customers Completed Changes

47. 47 Changes Requested by Customers Requests are Sorted by Customer Priority  High  Medium  Low Proposed Resolution for Each Request  Legacy Xpress: Implement in 2010  Possible Monthly Release: As resources allow  Xpress Rewrite: Implement in 2010  Assess Later: Re-assess in 4Q 2010 after scheduling rewrite and system consolidation decision  Not Planned: Removing from the list

48. 48 High Priority Customer Requests

49. 49 Medium Priority Customer Requests

50. 50 Low Priority Customer Requests

51. 51 Low Priority Customer Requests

52. Highlights of Nominations and Scheduling Changes over the last 12 months