Wyoming Pipeline Authority January 15, 2008 Ruby Pipeline Ed Miller EPWP Dan Fitzgerald PG&E Wyoming Pipeline Authority January 15, 2008

El Paso Corporation Overview El Paso Corporation provides natural gas and related energy products in a safe, efficient, dependable manner. We own North America’s largest natural gas pipeline system and are one of North America’s largest independent natural gas producers. We are organized around regulated and non-regulated businesses.

El Paso Pipeline System Tennessee Gas Pipeline Wyoming Interstate Colorado Interstate Gas Cheyenne Plains Pipeline Mojave Pipeline Southern Natural Gas Elba Island LNG El Paso Natural Gas Mexico Ventures Florida Gas Transmission (50%) 19% of total U.S. interstate pipeline mileage 23 Bcf/d capacity (16% of total U.S.) 16 Bcf/d throughput (28% of gas delivered to U.S. consumers) Best market connection Best supply access Leading pipeline integrity program

Ruby Pipeline Map Ruby Pipeline Malin Opal to Malin Opal Hub GTN PG&E O R E G O N GTN I D A H O Malin Ruby Pipeline Opal to Malin W Y O M I N G PG&E Opal Hub CIG Tuscarora WIC C A L I F . Paiute Cheyenne Cheyenne Plains U T A H Uinta Basin N E V A D A Piceance Basin Kern River C O L O R A D O

Ruby Capacity and Facilities Design and rates are based upon 1.2 Bcf/d of capacity 680 miles from Opal to Malin 42”, 1,440 psig pipe design Most cost effective design taking fuel and expansion opportunities into consideration Compressor stations Opal ~45,400 HP (site rating) Midpoint ~18,200 HP (site rating) Fuel from Opal ~0.9% Four delivery point interconnects and five receipt point interconnects Expandable to 2 Bcf/d with compression

Ruby Highlights to Date 1.2 Bcf/d pipeline from Opal to Malin Ownership structure El Paso Western Pipelines PG&E Corporation Bear Energy During past 5 months, Ruby Project has been presented to most Rockies producers and some western markets under Confidentiality Agreements Ruby filed an application with the BLM in November to construct a pipeline between Opal and Malin Negotiations with pipe mills and contractors have been ongoing for over 6 months Estimate has been finalized during this process Approximately 50% of firm capacity has been committed Ruby requires firm capacity commitments of 1.2 Bcf/d to be constructed

Rockies versus Western Canada Long-Term Production Trends Canadian Peak 2001 Peak - 17 Bcfd El Paso High Case Best fit of Current Trend: - 2033 Peak - 14 Bcfd Production El Paso Base Case El Paso Base case suggest 9,650 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement El Paso High case suggest 12,000 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement Best Fit Curves Assumes: - Gaussian Curve - 320 EUR - Few environmental constraints El Paso Base case suggest 9,650 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement El Paso High case suggest 12,000 Bcfd of export capacity needed (currently 6,200 in 2007) to meet 85% LF requirement

Rocky Mountain Production by Basin (Volumes are Wellhead – Measured in MMcfd) 1990-2005: Wellhead total data from IHS database 2006: Estimate 2007-2015: El Paso forecast

Projected Gas Flows with Ruby Western Canada Production Local Consumption Exportable 2008 15.69 5.01 10.0 2012 14.32 5.83 8.49 Bcf/d 5.75% fuel AECO Total Westbound pipeline capacity 2.6 Bcf/d Total Eastbound pipeline capacity 12 Bcf/d 3.28% fuel 4.8% to 5.3% fuel NE NWP Chicago Malin (GTN) 1.68% fuel 1.82% fuel 1.3% fuel Ruby ROX ROX Basis Improvement w/Ruby 2012: $0.50-$0.60 2015: $1.50 - $1.75 0.9% fuel NORTHERN CALIFORNIA 2.98% fuel Kern 1.3% fuel TC 1% fuel San Juan 2.87% fuel 2012 Northern CA Economic Dispatch 2.87% fuel Projected 2012 Price w/Ruby Pipeline Fuel Only Dispatch Malin Price AECO 7.39 0.251 7.641 ROX 7.52 0.0683 7.588 Ruby gas will be first through the meter at Malin

Ruby Proposed Next Steps February-March Binding Open Season October 2008 State Regulatory Approvals Jan. 2008 Feb./Mar. 2008 April-Oct. 2008 May 2008 Transporter Board Approval January Ruby Packages Customer Follow-Up February El Paso Upstream Capacity Open Season April 2008 Shipper Board Approvals

Ruby Schedule Highlights Preliminary route work completed January FERC Prefiling July-November Route Surveys and Mapping March 2011 In-Service October Pipe Commitment July Commence Construction Filed route with BLM 2007 2008 2009 2010 2011 April Receive Certificate May Formal Customer Discussions Commence January File FERC Certificate Application March Pipe Option

Market Overview

U.S. West Coast Distinct Gas Markets Supplied primarily from two regions: 1. Western Canadian Sedimentary Basin 2. Western Domestic Basins (Rockies, San Juan and Permian) Pacific Northwest 600 Bcf/yr Northern California 835 Bcf/yr Northern Nevada 65 Bcf/yr Southern California 965 Bcf/yr

Malin Takeaway Sumas BRITISH COLUMBIA 2.2 Bcf/d firm takeaway capacity plus displacement on GTN at Malin Access to west coast market: Northern/Central California via Pacific Gas and Electric Company Northern Nevada via Tuscarora Gas Transmission Pacific Northwest via GTN and indirectly to Williams’ Northwest Pipeline and Avista Utilities Southern California via deliveries off PG&E system Access to 82 Bcf of underground storage PG&E (CA): 42 Bcf Wild Goose (CA): 24 Bcf * Lodi (CA): 16 Bcf * WASHINGTON Northwest Pipeline Seattle Jackson Prairie Mist Portland GTN IDAHO OREGON Malin Ruby Tuscarora Gas Transmission CALIFORNIA NEVADA PG&E Area of Detail PG&E Line 400 Wild Goose Line 401 Pleasant Creek Lodi San Francisco Los Medanos McDonald Island Line 401 Line 300 * Currently being expanded Natural Gas Storage Line 2

Northern/Central California Market 2006 Demand 2006 annual gas demand of 835 Bcf Annual growth forecasted at 1.3% through 2025 Results in incremental requirement of 67 Bcf of annual gas demand by 2012 2006 peak day demand was 3.5 Bcf (2007 peak day of 3.9 Bcf) PG&E, Wild Goose and Lodi storage fields serve peak day demands Two strong gas demand periods Winter: Large residential demand Summer: Large gas-fired generation load and storage injections 4.0 3.5 3.0 Bcf/day 2.5 2.0 1.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sources: 2006 California Gas Report and PG&E CGT Pipe Ranger

Northern Nevada Market 2006 Demand Annual gas demand of 64 Bcf Annual growth forecasted at 4.0% through 2016 Results in incremental requirement of 17 Bcf of annual gas demand by 2012 Seasonal demand 2006 Peak day demand was 0.32 Bcf Lovelock LNG storage (1.0 Bcf) located near Reno, NV serve peak day demands Ruby interconnects with both Paiute (near Lovelock) and Tuscarora (at Malin) 0.35 Seasonal Market with a Winter Peak 0.30 0.25 0.20 Bcf/day 0.15 0.10 0.05 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Pipelines in Northern Nevada Northern Nevada is served via two pipelines (Tuscarora and Paiute) Paiute Pipeline Largest customers: SWG, Sierra Pacific 96% of transport contracts 155 MDth/d receipt capacity from NWPL ~75 MMcf/d sources from Canadian supply NWPL contracts expire by 2009 System operates at an average load factor of 71% Tuscarora Gas Transmission Largest customers: Sierra Pacific, SWG, Barrick Gold Represent 96% of transport Certificate issued 7/24/07 for an expansion of 40 MDth/d that will serve the Tracy Power Plant (514 MW) 22.5-year contract with Sierra Pacific Power (40 MDth) upstream of Malin SWG and Barrick do not hold capacity on upstream pipe Northwest Pipeline GTN IDAHO OREGON Malin RUBY PG&E Tuscarora 0.17 Bcf/d UTAH 0.2 Bcf/d Paiute CALIFORNIA Reno NEVADA

Pacific Northwest (PNW) Market 2006 Demand Sumas BRITISH COLUMBIA Kingsgate WASHINGTON Northwest Pipeline Seattle 3.5 3.0 s Jackson Prairie MIST 2.5 s Portland IDAHO NWN GTN Bcf/day 2.0 OREGON 1.5 1.0 Malin 0.5 NEVADA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual gas demand of 600 Bcf Annual growth forecasted at 2.1% through 2012 Results in incremental requirement of 80 Bcf of annual gas demand by 2012 2006 peak day demand was 2.9 Bcf Jackson Prairie, MIST and Clay Basin storage fields serve peak day demands Gas-fired power generation load varies depending on hydro power availability Demand is more seasonal Sources: Northwest Gas Association 2006 Outlook and Northwest Pipeline and GTN Scheduled Volumes

Contacts El Paso Western Pipelines PG&E Bear Energy Ed Miller Business Development 719.520.4305 Edward.Miller@elpaso.com Roland Harris 719.520.4380 Roland.Harris@elpaso.com Russ Council Engineering 719.520.4865 Russ.Council@elpaso.com Jennifer Webster Government Affairs 719.520.4327 Jennifer.Webster@elpaso.com Dan Fitzgerald 415.267.7041 Daniel.Fitzgerald@pcgpipeline.com Jeff Rawls 713.236.3380 JRawls@bear.com Bear Energy

Wyoming Pipeline Authority January 15, 2008 Ruby Pipeline Ed Miller EPWP Dan Fitzgerald PG&E Wyoming Pipeline Authority January 15, 2008