1. Kinder Morgan Silver Canyon Pipeline Kinder Morgan Silver Canyon Pipeline Business Overview ACC Workshop NOI February 13, 2004

2. 2 Overview Map Markets Supply Basins Timeline

3. 3 Silver Canyon Pipeline Needles Topock Blythe/ Ehrenberg Phoenix San Diego Las Vegas Tucson El Paso Albuquerque Blanco Blythe Energy Power Plant Harqualhala Panda Gila River Plant Palo Verde Arlington Valley Mesquite Redhawk West Phoenix Proposed Copper Eagle Storage Silver Canyon Pipeline Market Hub Power Plant 3 rd Party Pipeline

4. 4 Markets Arizona Phoenix area Utility LDC (2 proposed interconnects with SWG) Power Plants: Hoping to serve the 6300 MW of new generation near Palo Verde California (Ehrenberg) SoCalGas Baja Norte

5. 5 Supply Basins Rocky Mountains (TransColorado) Significant increase in Piceance/Paradox production over next 5 years TransColorado 125,000/d expansion to San Juan Hub 4 th Qtr. 2004 San Juan Slight production decline over the next 10 years, but increased south flow from Rockies will fill the gap

6. 6 LNG Access from Baja Firm transportation is offered from supply sources at Ehrenberg (LNG) to markets East of California (Phoenix) Pipeline segment from Phoenix to Ehrenberg will be bi-directional 300,000 MMBtu/d

7. 7 Timeline Open Season Closed April 30, 2003 Mid-2006 In-Service date (depends on customer needs)

8. 8 Here’s what you get with Kinder Morgan Flexibility Contractual flexibility Seasonal contract volumes, sculpted contract volumes Receipt to delivery point pathing Alternate receipt and delivery points (including out of the path) Primary firm transportation from Ehrenberg to Phoenix area Fully segmented, Order 637 compliant Operational flexibility 16/24 hour gas day

9. 9 How we are different from other expansion projects Kinder Morgan has strong balance sheet which allows flexibility when raising capital for expansions/acquisitions Access to the Rocky Mountain, San Juan Basins (vs. Permian) and LNG Lower fuel Pipeline industry experience Commercial Construction and Operations

10. 10 Contact Information Business Development Team Steven M. Harris, Vice President steve_harris@kindermorgan.com 713-369-9214 Lorraine M. Lindberg, Manager lorraine_lindberg@kindermorgan.com 713-369-9277 Kimberly S. Watson, Director kimberly_watson@kindermorgan.com 713-369-9233