=============
Page 1 of 5
=============

Florida Gas Transmission

Rock Meyer
President

ECO04391620

:XH005-00920



=============
Page 2 of 5
=============

Florida Gas Transmission Company
Phase IV Market Area Expansion

• 250 Bbtuld 20-Yr firm contracts

• $262 MM projected capital cost

• Filed with FERC December 1, 1998

• Received preliminary determination

July 1999


TECO PGS
FT. MYERS

• FERC Certificate received - March 2000

• Commenced construction - May 2000
• Initial testing October 2000

• Target in-service-date May 1, 2001
• Florida Power & Light's Ft. Myers

project "anchors" expansion

rowing SW Florida

• Establishes pipeline presence in

ECO043991621



:XH005-00921





=============
Page 3 of 5
=============

Florida Gas Transmission Company
Phase V Market Area Expansion



• Additional capacity needed to meet
electric generation requirements

• Open season concluded April, 1999

• FP&L - Sanford, Southern Company's
Plant Smith

•Approx: 400 Bbtu/d incremental
capacity supported by 20-Yr firm
contracts

• Filed with FERC amended application
August 1, 2000

• Anticipated In-Service April, 2002
*_$460 MM 'projected capital cost

  •Tampa Electric's Bayside project

EC004391622



=XH005-00922




=============
Page 4 of 5
=============

Florida Gas Transmission Company

Phase VI Expansion

• Meetings with customers in progress
• Repowering projects & IPP merchant plants will be target
markets
• 200-300 Bbtu/d potential load opportunity

TIMING

-- Anticipated in-service late 2003
- Capital requirements $400-600 Million

• Analyzing LNG based project (ELBA ISLAND) as pipelinelgas
supply alternative
• Phase VI Project in competition with "alternative across the bay"
pipeline projects

  ECO0439.1823

XH005-00923


=============
Page 5 of 5
=============

Florida Gas Transmission Company
Competing Pipelines

  -A A
  _ 1 5; L B R I k == _ _ Cypress
Pipeline
E0004391624

  EXISTING FGT PIPELINE - COASTAL
PHASE IV - WILLIAMSIDUKE
  -_ =- PLO

  PHASE V ... CYPRESS (EL PASO),,!,,, • Recent State Supreme Court Decision Related To Merchant Plants _

  Has "Clouded" The Issue On Who Serves the Market Growth!!!
b

XH005-00924