Ruby Pipeline Project Ed Miller Ruby Project Manager October 21, 2008
El Paso Pipeline System Ruby Pipeline CIG & WIC Tennessee Gas Pipeline Mojave Pipeline El Paso Natural Gas Cheyenne Plains Pipeline Southern Natural Gas Elba Island LNG 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 connection to demand regions Best supply access Leading pipeline integrity program
Ruby Pipeline Map GTN O R E G O N 680 miles of 42-inch Opal to Malin 1.3 Bcf/d expandable to 2.0 Bcf/d 1,440 psig MAOP Compression: Head Station (76,500 hp) & Mid Point (30,000 hp) (possibly 3 rd location) Measurement 9 Locations 64% +/- Public Land Mostly Remote / Unpopulated Malin I D A H O W Y O M I N G PG&E Tuscarora RUBY Opal Hub C A L I F. Reno Paiute N E V A D A Elko Wendover U T A H WIC CIG Cheyenne Plains Kern River C O L O R A D O
18 16 14 12 10 8 6 4 2 - Canadian Canadian Peak Peak - 2001 Peak 2001 Peak - 17 Bcf/d 17 Bcfd El El Paso Paso High High Case El Paso Base Case El Paso Base Case 1970 1990 2010 2030 2050 2070 2090 Why Ruby? Rockies vs. Western Canada Long-Term Production Trends 14,000 12,000 Big Horn Green River Wind River Overthrust Forecast 10,000 8,000 Powder River Piceance Uinta Denver 2.72 Bcf/d of growth 2006-2016 3.4 Bcfd of Growth 2007-2017 Rocky Mountain Long-Term Production Trend 6,000 4,000 2,000 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
(Capacities in Bcf/d) Western States Pipelines Reno Elko Wendover Las Vegas
Short term construction benefits Ruby Pipeline Benefits for Western States Annual tax benefit to Western States Approximate $ 28.6 MM/year (Ad Valorem) New lower cost clean energy source for California, Nevada, and the Pacific Northwest Energy for growth Improved reliability Planned interconnects Paiute GTN CIG Enterprise Tuscarora PG&E Overthrust Opal/Williams Future Interconnects 2 for Sierra Pacific Elko, NV Wendover, NV Wells, NV Lakeview, OR
Ruby Pipeline Project Progress: Outreach 14 Binding Shipper Agreements totaling over 1.1 Bcf/d of transportation capacity Pipe purchased 10 Open Houses covering the entire route from Opal to Malin were held during February and March 2008 6 Scoping meetings with BLM and FERC More scheduled: Extensive outreach underway Oregon Department of Energy On the ground: Opened Brigham City, Utah; Elko and Winnemucca, Nevada field offices Congressional meetings Follow up scoping meetings planned for October, 2008 FERC issued NOI for Ruby EIS 9/26/08 7
Ruby Pipeline CPUC Proposed Decision ALJ Kinney issued the proposed decision on October 7, 2008 The 117 page decision recommends approval of PG&E s application in all respects Approves PG&E s request to hold 375 Mdth/d of transportation capacity on Ruby Agrees that PG&E should diversify away from its heavy reliance on declining Canadian gas supplies Rejected GTN/William's arguments that there is no need for additional Rockies gas supply in California The PD found Ruby to be the superior alternative to the many projects proposing to transport Rockies gas west PG&E s selection process used to choose Ruby was acceptable Preliminary decision now goes before Commissioners for final approval as early as November 6, 2008 8
Ruby Pipeline Carbon Neutral Footprint Compressors to be powered by both gas and electric Purchase renewable power (e-tags) to run e-motors Internal coating of the pipeline Apply Best (methane) Management Practices (BMPs) Leadership in Energy and Environmental Design (LEED) Reforestation along Ruby route Purchase Voluntary Emissions Reduction (VER) credits to mitigate residual emissions to zero 9
Ruby Schedule Highlights July-November Route Surveys and Mapping Filed Proposed Route with BLM January FERC Prefiling October FERC Scoping Meeting CPUC Proposed Decision November Final CPUC Decision Preliminary route work completed July Proposed Commencement for Construction March 2011 Proposed In-Service 2007 2008 2009 2010 2011 May Formal Customer Discussions Commenced June Board Approval; Purchased Pipe Extend into Construction Agreements September Resource Reports Filed And FERC Issued NOI to Prepare EIS January File FERC 7(c) Application January-April Receive Certificate