Agency on Bay Management Gulfstream – Phase IV Expansion July 13, 2006 Al Taylor Vice President, Operations 1 Company Overview - Introduction Placed into service in May 2002, Gulfstream is a stateof-the-art interstate natural gas transmission system owned 50% by Duke Energy and 50% by Williams The Company is under the joint management of Duke Energy, which provides the business functions, and Williams, which provides the technical functions Gulfstream was specifically designed to serve peninsula Florida (1.1 Bcfd) The Pipeline consists of 692 total miles: onshore in Florida (242 miles), Alabama and Mississippi (15 miles) and offshore in the Gulf of Mexico (435 miles) Compression consists of three Rolls Royce compressors, one of which serves solely as back –up (113,700 total horsepower) – located in Coden, AL 0605-11265 2 Company Overview: Map of Operations 0605-11265 3 Market Overview: Strong population growth and natural gas demand 2004 - 2014 Florida’s population is growing 2% annually Electric demand is growing 3% annually Natural gas continues as fuel of choice for new generation in the near term Central and Southern Florida accounts for most of the load growth –the market Gulfstream was designed to serve Population and power generation growth in Gulfstream’s market is expected to drive increased demand for natural gas 0605-11265 4 Recent History Ê 2005 ■ ■ ■ Ê Phase II placed in service: February 2, 2005 Increased delivery points from 17 to 19 Contracted long-term firm transportation service, increased to 753,000 Dth/d 2006 ■ ■ ■ Phase III with FP&L announced March 2006 Phase IV with Progress Energy announced May 31, 2006 Contracted long-term firm transportation service increases to 1,253,000 Dth/d 0605-11265 5 Market Projects ● Phase III: Florida Power & Light Ê The project will sell out Gulfstream’s initial mainline capacity Ê Project summary: ■ ■ ■ ■ ● 35 mile, 30” diameter pipeline extension to FP&L’s new greenfield 2200 MW West County Energy Center in west Palm Beach County Completion of facilities in 2008 Phase IV: Progress Energy Ê Project expands mainline capacity to 1,253,000 Dth/d Ê Project summary: ■ ■ ■ ■ ■ ■ 18 miles; 20” diameter pipeline extension to Progress Energy’s “repowered” Bartow power plant in Pinellas County 45,000 h.p. compression addition to existing Gulfstream sites near Coden, Alabama, and in Manatee County, Florida Completion of facilities in 2008 0605-11265 6 Gulfstream Market Area 0605-11265 7 Company Overview: Summer Operations 2004 & 2005 Gulfstream experienced seven storms directly impacting its market area and/or making landfall near Coden, Alabama Ê Ê Ê Bonnie, Arlene and Dennis crossed our offshore pipeline Charlie, Frances, and Jeanne crossed our market system Ivan made landfall near Mobile Bay and our compressor operations Gulfstream’s pipeline facilities sustained no material damage Required surveys indicate offshore pipeline has not moved Post 2004 Gulfstream purchased & installed additional emergency generation at key communication points Gulfstream’s electric generation at Coden, AL and Gas Treating Facilities were critical components of reliable service June 1, 2006 fuel retention reduced from 1.53% to 1.34% 0605-11265 8 Operations Safety • 24-hour monitoring • Hydro test to 150% of MAOP • Integrity Management Plan • Remote control of critical system valves • Patrols by air & ground • Coordination with ER officials • Participation in Florida One Call • No Lost Time Accidents since Commissioning 0605-11265 9 Phase IV Overview Progress Energy Bartow Plant Tampa Bay Proposed 20” Lateral Existing Gulfstream 36” Natural Gas Pipeline 0605-11265 10 Preferred and Alternative Routes 0 1 2 Miles 0605-11265 11 Field Surveys - Conducted To Date 0 1 2 Miles 0605-11265 12 Field Surveys - Findings To Date 0 1 2 Miles 0605-11265 13 Field Surveys - Findings To Date 0 2,000 Feet 0605-11265 14 Route Variations 0 1 2 Miles 0605-11265 15 Field Surveys - Pending To Date 0 1 2 Miles 0605-11265 16 Preliminary Construction Plan Interconnect Hot tap to pipeline 0 1 2 Miles 0605-11265 17 Preliminary Construction Plan HDD installation – Channel Crossings Drilling support barge Ch an ne l Dredged Entrance Pit Pipe pre-laid on bottom n tio c e l Dir f pul o Transition pipe ditch Enlarged exit pit Drill string Not to scale Drilling support barges 0605-11265 18 Preliminary Construction Plan HDD installation –Shoreline Crossing Drilling rig exit site limits Sh o re lin Wa e ter Dredged entrance pit R.O Drilling support barges Pipeline on i t ec ull r i D fp o Drill string .W it m i .l Not to scale 0605-11265 19 Preliminary Construction Plan Pre-Pipelay Dredging O R. .W t mi i l . Not to scale Dredge barge Spoil on i t ec vel r i D T ra of Pipe trench Pipe Spuds Spoil O R. .W t mi i l . Note: Spoil mounds will alternate sides of the trench as necessary to prevent currents from re-filling trench 0605-11265 20 Preliminary Construction Plan Conventional Pipe lay (Shallow Water) Spuds for Station Keeping O R. .W it m i .l Not to scale Tug Boat t mi i l . Pipeline W O. . R Spoil (Side Cast to Either Side) Dredged Trench 0605-11265 21 Tampa Bay Ship Channel Channel Profile – Cut C 0 500 1,000 feet 0605-11265 22 Gulfstream Phase IV Schedule 0605-11265 23 Contact Information Gulfstream Natural Gas System, L.L.C.: Al Taylor, Vice President Operations, 941-723-7101, al.taylor@williams.com 1-888-GAS-4-FLA www.gulfstreamgas.com FERC Certificate Process: • FERC pre-filing Docket No. PF06-29-000 • Office of External Affairs, 1-866-208-3372 • www.ferc.gov/ for-citizens/my-rights/ process.asp 0605-11265 24