1. Federal Energy Regulatory Commission Winter 2005 - 2006 Natural Gas Market Update Item No.: A-3 January 19, 2006

2. Gas Prices Respond to Colder U.S. Weather Katrina Rita SOURCE: Intercontinental Exchange $5.00 $10.00 $15.00 Natural Gas Price ($/MMBtu) Next-Day Spot Price at Henry Hub, La. M J JA S ON D J

3. Initial Storage Inventories Begin to Face Cold SOURCE: Energy Information Administration 5-year range 2004-05 2005-06 Storage Inventory (Bcf) 0 1,000 2,000 3,000 MJJASONDJFMA

4. Gulf Production Continues Strong Recovery SOURCES: Minerals Management Service and the Louisiana Department of Natural Resources MMcf/day Katrina Rita Wilma Shut-In Louisiana State Production Shut-In Offshore Gulf Production 0 2,000 6,000 10,000 8,000 4,000 SEPTOCTNOVDECJAN

5. Oil May Prevent Further Gas Price Decreases SOURCE: Intercontinental Exchange Heating Oil (No. 2, New York) Wholesale Gas (New York) Residual Fuel Oil (No. 6, 0.3% Sulfur, New York) $/MMBt

6. Post-Hurricane East-West Price Differences Decline SOURCE: Intercontinental Exchange Difference in Next-Day Spot Prices Between PG&E and Henry Hub, La. Katrina Rita -$4.00 -$3.00 -$2.00 -$1.00 MJJASONDJ

7. LNG Events Review of 2005 Supply Development U.S. Regasification Activity Under Construction Expansion of Existing Facilities Potential New Capacity