Kinder Morgan Silver Canyon Pipeline

1
Kinder Morgan Silver Canyon Pipeline

• Business Overview
• ACC Workshop NOI
• February 13, 2004

2
Overview

• Map
• Markets
• Supply Basins
• Timeline

3
Silver Canyon Pipeline
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
Supply Basins

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

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
Timeline

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

8
Heres 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
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
Contact InformationBusiness Development Team

• Steven M. Harris, Vice President
• steve_harris_at_kindermorgan.com
• 713-369-9214
• Lorraine M. Lindberg, Manager
• lorraine_lindberg_at_kindermorgan.com
• 713-369-9277
• Kimberly S. Watson, Director
• kimberly_watson_at_kindermorgan.com
• 713-369-9233