Enron Transportation Services

AC_01_ETS -1 Enron Transportation Services Innovative…Creative…Safe…Reliable Strong Returns with Consistent Earnings and Cash Flow Strong Competitive Position With Expansion Opportunities in All Markets Served Market-Oriented Business Approach Technology Utilized to Expand Revenues and Reduce Costs

AC_01_ETS -2 Consistent Earnings and Cash Flow Income Before Interest and Taxes $380 $391 Cash Flow from Operations $370 $415 (Millions) 1998 $346 $351

AC_01_ETS -3 Enron Transportation Services 2.4 Bcf/d Peak Capacity 1,214 Miles $1.4 Billion Rate Base 8% Owned Northern Border 1.7 Bcf/d Peak Capacity 2,487 Miles $500 Million Rate Base 100% Owned Transwestern 1.5 Bcf/d Peak Capacity 4,795 Miles $1.3 Billion Rate Base 50% Owned Florida Gas 4.3 Bcf/d Peak Capacity 16,463 Miles $1.2 Billion Rate Base 100% Owned Northern Natural Gas Transport 15% of U.S. Natural Gas Demand 840 MMcf/d Capacity Added Over Past Two Years 9.8 Bcf/d Peak Capacity 24,959 Miles $2.5 Billion Rate Base (Net to Enron) Enron’s Gas Pipelines

AC_01_ETS -4 Gas Demand Growth Increase (Bcf) Source:WEFA, Cambridge Energy, Enron Corp., Industry and Analyst Publications Gas-Fired Generation Other 219 New England South Atlantic 292 Mid Atlantic California/ Pacific Northwest 548 Total U.S. 2, South Central North Central Southwest 219

AC_01_ETS -5 Northern Natural Gas Company Michigan Extensive Access to Major Utilities and Industrials in the Upper Midwest Flexible Operations –Interconnections with 4 Major Pipelines in Market Area –Storage Capacity of 56 Bcf –Bi-Directional Flow Capabilities Over 85% of Revenues From Demand Charges 95% of Market Area Capacity Contracted Through 2003 No New Rate Case Until November 2003 Storage Northern Natural Pipeline Viking Great Lakes Trailblazer Northern Border Enron Assets Major Pipeline Interconnects Texas Oklahoma Kansas Missouri Nebraska South Dakota Wisconsin Iowa Illinois North Dakota Montana Wyoming New Mexico Minnesota Market Area Supply Area Hugoton Basin Anadarko Basin Permian Basin Western Canadian Basin Rocky Mountain Basins 1.3 Bcf/d.3 Bcf/d Market Area Volumes (BBtu/d) 2,173 2, ,775 3,483 December Full Year 2000 Average Flows 1.9 Bcf/d

AC_01_ETS -6 Customer Profile Gas-Fired Merchant Plant 120 MMcf/d Peak Requirement Situated Close to Main Pipeline Enron Solution No-Notice, Flexible Supply Average Service of 50 MMcf/d Peak Use 2.4 Times Average 3-Year Term Enron Benefits Adds Demand During Off-Peak, Summer Season Establishes Long-Term Customer Northern Natural Gas Company Market Area Initiatives Supply Area 372 MW 3,000 MW of Gas-Fired Power Plants Under Development in Close Proximity to Northern’s System Innovative Tariffs in Place to Provide Flexible Gas Supply-Related Services Michigan Kansas Missouri Nebraska South Dakota Wisconsin Iowa Illinois Minnesota Market Area 463 MW 275 MW 445 MW 500 MW 250 MW 300 MW 150 MW 200 MW Great River Energy Peaking Plant May 2001 In-Service Completed Agreement 372 MW Third Party Power Plants

AC_01_ETS -7 Maximum Rate Environment Due to Increased California Demand Bi-Directional Flow Capabilities Provides Flexibility to Rapidly Adapt Regional Demand Over 90% of Revenues From Demand Charges Fully Subscribed Through November 2001; Well-Positioned for Recontracting Opportunities to Sell Additional Limited Firm Capacity No New Rate Case Until November 2006 Transwestern Pipeline Company ,657 1,462 Throughput (BBtu/d) Texas Oklahoma New Mexico Arizona Kansas Colorado San Juan Basin Utah Nevada California Anadarko Basin Permian Basin.9 Bcf/d Transwestern Pipeline 2000 Average Flows.7 Bcf/d

AC_01_ETS -8 Transwestern Growth Initiatives Completed 140 MMcf/d Gallup Expansion in May 2000 with Additional Compression Short-Term Addition of 50MMcf/d Possible in 2001 Open Season for Mainline Expansion Completed; Potential 200 MMcf/d Increase Through Pipeline Looping and Compression –$50-$200 Million Cost –2003 In-Service Southwest Gas Connection With 100 MMcf/d Capacity Placed In-Service November 2000 Calpine’s 500 MW Gas-Fired Power Plant to Begin Operation First Quarter 2001 Griffith Energy’s 650 MW Gas-fired Power Plant to Begin Operation Second Quarter 2001 Over 12,000 MW of Proposed New Generation in Western Region Provides Growth Opportunities Transwestern Pipeline New Interconnections Third Party Power Plants California Nevada Utah Arizona Colorado New Mexico Kansas Oklahoma Texas San Juan Basin Anadarko Basin Permian Basin Capacity Expansions to California New Interconnections (East of California)

AC_01_ETS -9 ANR Destin Koch Gateway Houston Pipe Line Louisiana Resources Matagorda Offshore NGPL Southern Natural Tejas Tennessee Gas Pipeline Transco Major Pipeline Interconnects Serves Rapidly Growing Peninsular Florida Extensive Access to Gas Supply Over 90% of Revenues From Demand Charges 85% of Capacity Contracted Through 2010; 70% Through 2015 No New Rate Case Required Until October 2003 Florida Gas Transmission Throughput (BBtu/d) 1,495 1,501 Texas and Louisiana Onshore Texas Louisiana Mississippi Alabama Georgia Florida Mobile Bay and Deepwater Supply Additional Gulf of Mexico Supply Florida Gas Pipeline

AC_01_ETS E 2002E Capacity (Bcf/d) E Phase I Phase II Phase III Phase IV Phase V Phase VI Florida Gas Expansions Three Major Expansions Underway Phase IV198$27020May 2001 Phase V428$46020April 2002 Phase VI150$150TBDLate 2003 Additional Demand-Driven Expansion Opportunity –Over 15,000 MW of New Generation Proposed in Florida Through 2003 Evaluating Supply Connections to Proposed LNG Facilities Capacity Cost Contract Term Expected In-Service (MMcf/d) (Millions)(Years) Ft. Myers Pipe Existing Phase IV Phase V 2001 Third Party Power Plants

AC_01_ETS -11 Throughput (BBtu/d) ,443 2,405 Northern Border Pipeline Company Low-Cost Link Between Canadian Reserves and Midwest Market Fully Contracted Under Long- Term Agreements; Average Remaining Life of Nearly 7 Years Extension to Heavy Industrial Zone in Indiana; Late 2001 In- Service Rate Case Settlement Approved by FERC December 2000; Well- Positioned to Compete With Recent Additions to Canadian Capacity No New Rate Case Until November 2005 Existing Pipeline 2001 Extension Foothills ANR Midwestern Great Plains Northern Border Major Pipeline Interconnects NGPL South Dakota Intrastate Northern Natural Williston Basin Western Canadian Basin Illinois Minnesota South Dakota North Dakota Montana Iowa Wisconsin Monchy Williston Basin Chicago Indiana North Hayden

AC_01_ETS -12 Northern Border Growth Initiatives $270 Million Invested in Rapidly Developing Wyoming Basins Over 2 Million Acres of Dedicated Reserves Additional $50-$60 Million Investment Expected in 2001 Unregulated Gas Gathering Assets 500 MMcf/d, 325 Mile Pipeline Connecting Wyoming Production to Northern Border Pipeline $210 Million Expected Cost 90% of Contacts with Term 10 Years or More November 2003 In-Service Proposed Bison Pipeline Northern Border Pipeline Proposed Bison Pipeline Big Horn Ft. Union Lost Creek South Dakota North Dakota Montana Williston Basin Wyoming Powder River Basin Wind River Basin Unregulated Regulated

AC_01_ETS -13 Creating Revenue Opportunities With Innovative Solutions Customer Challenge Enron Response Interruptible and Reverse Storage Products Storage Secured to Extend Balancing Capability Structured, Index-Based Pricing Revenue-Sharing Arrangements Short-Haul Shipping Service Between Delivery Points Customer At-Risk for Changes in Location Price Differentials Firm Storage Capacity Subscribed Transwestern Balancing Services Limited by Line Pack Fixed Tariff Rates Discourage Firm Commitments Volatile Prices Between California Border Points

AC_01_ETS -14 Technology Benefits EnronOnline Used to Rapidly Market Capacity; 48 Transactions Completed Cost Reductions Realized Through the Automation of Compression, Monitoring and Measurement; Excellent Safety Record Maintained Scheduling and Gas Control Improvements Increasing Customer Flexibility –Extensive Use of Internet for Customer Applications –Customer Nomination Opportunities Increased to Six Times per Day Dynamic Modeling Programs Maximizing Revenues and Throughput at Lowest Cost Employees (Operations) $135 $100 Expense ($/MMcf) -35% -26% Throughput (Bcf/d) % Today 1992 Today 1992 Today 3,100 2,000

AC_01_ETS -15 Conclusion Strong Returns with Consistent Earnings and Cash Flow Strong Competitive Position With Expansion Opportunities in All Markets Served Market-Oriented Business Approach Technology Utilized to Expand Revenues and Reduce Costs

AC_01_ETS -16