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ANR Pipeline receives approval for expansion project to serve new power plant in Wisconsin

HOUSTON, Nov. 1, 2001 — ANR Pipeline Company, a subsidiary of El Paso Corporation, announced today that the Federal Energy Regulatory Commission (FERC) has issued a certificate authorizing construction of its Badger pipeline project, which will transport natural gas to fuel a proposed 1,050-megawatt power plant located in southeastern Wisconsin’s Kenosha County.

In its order, FERC found the proposed facilities to be in the public interest because they “will help meet the growing electric generation requirements of the Midwest.” In addition, FERC notes that the project’s environmental impact will be minimized because most of the facilities will be constructed adjacent to or on previously granted right-of-way or power lines and rail corridors. ANR’s existing customers will not subsidize the project since the projected revenues from the proposed facilities will exceed their projected costs, the FERC also noted.

The order and accompanying certificate follow a favorable Environmental Assessment, issued on Sept. 12, 2001, which was prepared by FERC staff to satisfy the requirements of the National Environmental Policy Act. The staff concluded that, “approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment.”

In its application for the Badger Pipeline Project, ANR proposed to build a total of 22.3 miles of 20-inch diameter pipeline connecting the company’s existing pipeline system to the new power plant and delivering up to 210 million cubic feet per day (MMcf/d) of natural gas to fuel the plant. Most of the new $19 million Badger pipeline will be installed parallel to ANR’s existing Racine lateral or other existing utility corridors, minimizing the need for new rights-of-way as well as impact to the environment.

“We’re very pleased to receive this order and certificate from the FERC; it represents a major milestone for our Badger pipeline project,” said James J. Cleary, president of ANR Pipeline Company. “The new pipeline supports our strategy of attaching additional market to the ANR system and furthers development of natural gas-fired electric generation in Wisconsin.”

One of the five key strategic objectives outlined in Wisconsin’s 2001 Energy Policy calls for the state to take steps to assure the addition of 6,300 megawatts (MW) of additional electric capacity by 2016, Cleary noted.

On Nov. 1, 2000, the Public Service Commission of Wisconsin authorized the construction of the new power plant, which will be located in the Village of Pleasant Prairie. Badger Generating Company, LLC, an affiliate of PG&E National Energy Group, has executed a precedent agreement with ANR Pipeline for natural gas transportation and balancing services.

The 1,050-MW natural gas-fired Badger power plant could produce enough energy to power as many as one million homes.

ANR Pipeline Company operates a 10,580-mile interstate natural gas pipeline system providing storage, transportation and capacity-related services for local distribution companies, pipelines, end users and other customers in the United States and Canada.

For more information, please visit www.elpaso.com .