El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
14-Oct-2008
Ruby Pipeline Shipper Receives Favorable California Regulatory DecisionHOUSTON, TX, Oct 14, 2008 (MARKET WIRE via COMTEX News Network) -- El Paso Corporation (NYSE: EP) announced today that the anchor
shipper on El Paso's Ruby interstate natural gas pipeline project,
Pacific Gas and Electric Company (PG&E), recently received a
favorable proposed decision regarding the project from a California
Public Utilities Commission administrative law judge. If approved by
the Commission, the proposed decision would allow the utility to
finalize an agreement announced last year to obtain 375,000
dekatherms per day of capacity on the Ruby Pipeline for delivery of
natural gas to PG&E's gas and electric customers. The proposed
decision was issued October 7, 2008 and is before the Commission for
final disposition as early as November 6. The full text can be
accessed at
http://docs.cpuc.ca.gov/published/proceedings/A0712021.htm
"This is a significant and welcome proposed decision, which clearly
recognizes the benefits of the Ruby Pipeline Project to California
consumers," said Jim Cleary, president of El Paso's Western
Pipelines.
In his proposed decision, the judge found that Ruby will serve the
public interest by enhancing competition, increasing reliability,
promoting gas supply diversity, lowering transportation costs,
reducing environmental impacts, and providing consumers with
favorable rates.
PG&E's request for Commission approval of its Ruby agreement received
support from a number of public interest groups, including the
Commission's Division of Ratepayer Advocates (DRA), The Utility Reform
Network (TURN), and Californians for Renewable Energy (CARE). In
Commission filings, both DRA and TURN stated that the increased
supply diversity that Ruby brings from the Rockies will enhance
reliability and promote competition. CARE noted that Ruby's
commitment to environmentally responsible operations will be
particularly advantageous to California.
In June 2008, Ruby announced that it had received more than 1.1
billion cubic feet per day (Bcf/d) of commitments from customers under
10- to 15-year contracts and is moving forward with the pipeline
project, subject to regulatory approvals.
The Ruby Pipeline is an approximately 680-mile interstate natural gas
pipeline that will extend from the Opal Hub in Wyoming to a pipeline
interconnect at Malin, Oregon, near California's northern border.
The 42-inch diameter pipeline will have an initial design capacity of
between 1.3 Bcf/d and 1.5 Bcf/d, depending on the final level of
customer commitments. Issuance of the proposed decision, together with
the Federal Energy Regulatory Commission's (FERC) September 26, 2008
issuance of a notice of intent to prepare Ruby's federal
environmental impact statement, means that Ruby is on track to be in
service by March 2011. In January 2009, Ruby plans to file with FERC
an application for a certificate of public convenience and necessity.
For more information on the Ruby project, visit
www.rubypipeline.com.
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.
El Paso Corporation Cautionary Statement Regarding Forward-Looking
Statements
This release includes certain forward-looking statements and
projections. 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 federal, state and local regulatory
approvals; our ability to successfully construct and operate the
proposed facilities described in this release on time and within
budget; our ability to obtain additional contractual commitments;
changes in steel prices for a portion of the pipeline to be purchased
from our steel mills; creditworthiness of our shippers; the
successful close of our financing transactions; 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.
Contacts:
Investor-Media Relations
Bruce Connery
Vice President
Office: (713) 420-5855
Media Relations
Richard Wheatley
Manager
Office: (713) 420-6828
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El Paso Corp.
