ANR Pipeline seeks FERC approval for WestLeg Pipeline Project


HOUSTON, Sept. 9, 2002 — ANR Pipeline Company, a subsidiary of El Paso Corp., has filed an application with the Federal Energy Regulatory Commission (FERC) seeking a Certificate of Public Convenience and Necessity to construct and operate its WestLeg pipeline project in northern Illinois and southeastern Wisconsin.

The $42.1-million project includes the installation of a natural gas pipeline loop along ANR’s existing Madison lateral located in Walworth County, Wisconsin, and replacement of two smaller existing pipelines along its Beloit lateral located in Rock County, Wisconsin.

The project is designed to increase the pipelines’ capacity by 220 thousand dekatherms per day (Mdth/d), which will serve local natural gas distribution requirements and electric power generation growth markets.

For the Madison lateral, ANR proposes to add a 26.3-mile, 30-inch diameter loop pipeline parallel to its existing 10- and 12-inch pipelines, which will remain in service. Along the 6.5-mile Beloit lateral, ANR plans to remove its existing 4- and 6-inch pipelines and replace them with a single 20-inch- diameter pipeline. The existing 8- and 12-inch pipelines along the Beloit lateral will remain in service. The Beloit construction will result in fewer pipelines while providing increased capacity to ANR’s customers.

“ANR Pipeline’s WestLeg project will provide additional, reliable natural gas transportation capacity essential to southern Wisconsin’s growing energy requirements in a cost-effective manner that involves minimal impact to landowners and the environment,” said James J. Cleary, president of ANR Pipeline Company.

In terms of market support, Wisconsin Power & Light (an Alliant Energy company) has executed a precedent agreement with ANR for transportation and delivery of 60 Mdth/d of natural gas to its system. This arrangement is necessary to meet the fuel requirements of the proposed 600-megawatt Riverside Energy power generation facility. In addition, ANR and another customer are in discussions regarding an additional 34 Mdth/d of WestLeg capacity.

The project will also provide operational benefits and cost savings by reducing ANR’s reliance on a third-party pipeline for the delivery of natural gas operationally required in the Janesville, Wisconsin area.

ANR has met with various state and federal agency representatives and landowners to apprise them of the project and seek their input. Additional stakeholder outreach efforts included an August 1, 2002 open house in Delavan, Wisconsin, which was attended by landowners and local officials.

ANR has acquired the vast majority of the permanent easements necessary to construct the new facilities, and the new pipelines will be installed within ANR’s existing rights of way. In its FERC application, ANR requested that a preliminary determination be issued in December 2002, and final authorizations by July 2003, to allow sufficient time for construction to meet market timing needs. The WestLeg project has a projected completion and in-service date of November 2004.

El Paso Corporation is a North American provider of natural gas services. The company has core businesses in natural gas production, gathering and processing, and transmission, as well as liquefied natural gas transport and receiving, petroleum logistics, power generation, and merchant energy services.

El Paso Corp. integrated across the natural gas value chain, is committed to developing new supplies and technologies to deliver energy to communities around the world. For more information, visit www.elpaso.com .

Source: El Paso Corporation

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