PG&E Capacity

We have 200,000 mmbtu/day of "Block II" capacity available through May 31, 2006. It is labeled "Block II" because PG&E owns recall rights on the entire block through 12/31/2005. The ROFR rights that go with this capacity add a tremendous amount of value (i.e. market rates with short term commitment vs. 15 - 20 year obligation of new build)

Capacity currently has access to all supply basins. However, the current FERC proceedings on receipt point reallocations will probably result in a supply split of 60% San Juan and 40% Permian.

Rates for the capacity and my Duke proposal are attached.

Please call if you have any questions.