1. ALBUQUERQUE TEAM MEETING November 7, 2001
Transwestern Pipeline Company
Kim Watson
Director Commercial Group

2. OVERVIEW 2001 Results 2002 Plan Market Environment Upside/Downside
Projects
Additional Focus Areas

3. 2001 SUCCESSES $14.7 MM above Plan as of 3rd Current Estimate
Subscribed 106,700/d of Red Rock Expansion Capacity (17.2 % ROE)
All West & East mainline capacity, San Juan & Ignacio to Blanco capacity subscribed
New Deal Structures:
IT Pool to Pool at CA border (Reliant, Texaco)
Index to Index deals (Sempra & Richardson)
East to East sharing with alternate West (USGT & Astra)

4. 2001 SUCCESSES (continued)
Renewed Navajo R-O-W
Renewed Laguna R-O-W
Marketing capacity through Enron Online
Connected 26,000/d of new supply
New 200,000/d pipeline interconnect with Oneok
Dashboard & Pipeline Profile systems

5. TRANSWESTERN COMMERCIAL GROUP
2002 OPERATING PLAN
(Millions)

6. CAPACITY SUBSCRIPTION LEVEL
(including Red Rock)

7. EXPANSIONS TO CALIFORNIA
Filed With the FERC WA
200,000 MMBtu/d
Southern Trails
PGT
Kern
EPNG
TWPL OR ID WY NV
1,010,000 MMBtu/d UT CO CA
120,000 MMBtu/d OK
120,000 MMBtu/d AZ NM
230,000 MMBtu/d TX

8. EXPANSIONS TO CALIFORNIA
Project
Status
In-Service
Volume
TW Red Rock
Certificate Issued
June, 2002
120,000/d
EPNG
August, 2001
230,000/d
PGT (Phase I)
November, 2001
200,000/d
Southern Trails
July, 2002
Kern River
May, 2002
125,000/d
Filed with FERC
May, 2003
885,000/d
TW Sun Devil
Announced
January, 2004
330,000/d
Sonoran (Phase I)
Summer, 2003
750,000/d
320,000/d
PGT
November, 2003
400,000/d
CIG Ruby
December, 2003
TOTAL
4,230,000/d

9. NYMEX PRICES
($/MMBtu)
$ 3.15 average
$ 4.28 average

10. 2002 BASIN & BORDER PRICES
($/MMBtu)

11. 2002 BASIN TO BORDER SPREADS*
($/MMBtu)
$ 0.27 average
$ 0.14 average
* Spreads are net of fuel.

12. POTENTIAL IMPACTS 2002 PLAN
Upside
Negotiated rate proceeding: $10MM
SoCal rate dispute: $2.2MM
Downside
Red Rock in-service delay: $1.124MM
Gas prices: $.4MM
(per $.10 variance)
Agave & Amoco options to reduce MAXDTQ: $1.3MM

13. LOAD FACTOR UPSIDE/DOWNSIDE (Millions)
Revenue
Load Factor*
Difference
85%
$202
90%
$203
($1.8)
92%
$204
$ .7
95%
$205
$1.7
92% load factor assumption
1,065,000/d average throughput with Red Rock outages excluded
* Red Rock outages included

14. PROJECTS Red Rock Expansion Sun Devil Trans Pecos Southern Trails
Caithness/Big Sandy
PG&E Potential Opportunities

15. RED ROCK EXPANSION
Incremental 120,000/d delivered to California & Arizona
Additional hp at Stations 1, 2 & 3
1.210 Bcf/d total deliveries West
Supplies from Permian & Anadarko
In-service June, 2002
106,700/d subscribed, resulting in 17.2% ROE

16. SUN DEVIL $550 MM capital cost 450,000/d capacity to Phoenix
Nevada
Utah
Colorado
NNG
California
Kansas
New Mexico
Sun Devil
Oklahoma
TWPL
Phoenix
Arizona
Texas
$550 MM capital cost
450,000/d capacity to Phoenix
780,000/d Blanco to Thoreau on TW
330,000/d to CA border on TW

17. SUN DEVIL OPEN SEASON RESULTS
Path
San Juan to Thoreau
Thoreau to CA Border
Thoreau to Phoenix
Total Bids Received
651,000/d
265,000/d
440,000/d

18. TRANS PECOS TW/KM LOI executed TP/Pemex LOI tendered:
Nevada
Utah
Colorado
NNG
California
Kansas
New Mexico
Oklahoma
TWPL
Arizona
Texas
TW/KM LOI executed
TP/Pemex LOI tendered:
$.2950/MMBtu
Pemex counter-offer:
$.25/MMBtu
NGPL
TransPecos

19. SOUTHERN TRAILS RFP to purchase West leg, due Oct 15th
Nevada
Utah
Colorado
NNG
California
Kansas
Southern Trails
New Mexico
Oklahoma
Arizona
TWPL
RFP to purchase
West leg, due Oct 15th
In-service 7/2002
“East” San Juan to CA border:
87,500 MMBtu/d
“West” CA border to Long Beach:
120,000 MMBtu/d
Texas

20. CAITHNESS/BIG SANDY Caithness will build 41 miles to TW
Nevada
Utah
Colorado
NNG
California
Kansas
New Mexico
Arizona
Oklahoma
TWPL
Big Sandy
Texas
Caithness will build 41 miles to TW
Interconnect cost to TW, $550 K
780 MW baseload generating plant
Phase I: 520 MW, 90,000/d, Q4 2003
Phase II: 260 MW, 40,000/d, Q3 2004

21. PG&E POTENTIAL OPPORTUNITIES
Bi-directional capability at PG&E/Topock interconnect
20 mile lateral to serve generation plants in Bakersfield area, incremental 300,000/d load

22. ADDITIONAL FOCUS AREAS
EnronOnline
Operator & Shipper Imbalances
Electric Compression Agreements
West Texas Lateral