PG&E Corporation to Acquire 25.5 Percent Interest in Ruby Pipeline
Release Date: December 27, 2007
Contact: PG&E External Communications (415) 973-5930
HOUSTON, TEXAS, December 27, 2007El Paso Corporation (NYSE: EP) and PG&E Corporation (NYSE: PCG) announced today that the companies have entered into a letter of intent for PG&E Corporation to acquire a 25.5 percent interest in El Paso's Ruby Pipeline projecta proposed 680-mile, 42-inch natural gas transmission pipeline that would begin at the Opal Hub in Wyoming and terminate at the Malin, Oregon, interconnect, near California's northern border. Capital expenditures for the project are expected to total approximately $2 billion.
The Ruby Pipeline will have an initial capacity of 1.2 billion cubic feet per day (Bcf/d) and is expandable to 2 Bcf/d. It will connect Rocky Mountain natural gas producers with one of the most attractive natural gas demand regions in the country and provide natural gas users in northern California, Nevada, and the Pacific Northwest with competitively priced natural gas from the nation's most important supply growth region. Subject to Federal Energy Regulatory Commission and other regulatory approvals, approvals of respective companies' boards of directors, and after obtaining necessary customer commitments, the Ruby Pipeline is anticipated to be in service in the first quarter of 2011.
"PG&E's participation in the Ruby Pipeline project underscores the importance of this critical infrastructure project in transporting increasing supplies of natural gas from the Rockies to key consuming markets," said Jim Cleary, president of El Paso's Western Pipeline Group. "We are excited to have PG&E as a partner in this project as we work to meet the future infrastructure needs of the western states."
"We are delighted at the prospect of partnering with El Paso to help develop the Ruby Pipeline natural gas project," said Richard Rollo, vice president-Strategic Development and Business Integration for PG&E Corporation. "The Ruby Pipeline will provide reliable access to supplies of Rocky Mountain gas necessary to meet the growing demand of markets in the western United States."
In early December, El Paso announced that it is planning to partner in the project with Bear Energy LP, a subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC), and partnering discussions include Bear Energy becoming an initial shipper on the pipeline.
El Paso is also in discussions with other prospective shippers and will announce a formal open season shortly.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com.
PG&E Corporation is an energy-based holding company, headquartered in San Francisco. With assets valued at $34 billion, its operations include electric and gas distribution, natural gas and electric transmission, and electric generation. It is the parent company of Pacific Gas and Electric Company. For more information, visit the web site at http://www.pgecorp.com.
Cautionary Statement Regarding Forward-Looking Statements
This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, our ability to obtain all necessary regulatory approvals and to successfully construct and operate the proposed facilities described in this release; general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.
El Paso Corporation
Bruce L. Connery, Vice President
Office: (713) 420-5855
Fax: (713) 420-4417
Richard Wheatley, Manager
Office: (713) 420-6828; Mobile (832) 643-8929
Fax: (713) 420-6431
Bear, Stearns & Co. Inc.