1. Northern Border Partners (11.8%)
Natural Gas Pipelines Strong Growth Opportunities in All Markets Served
Steady earnings growth
Predictable net cash contribution to Enron
Rate case certainty
Near term expansions in high growth markets
Florida expanding to 2.2 Bcf/d by 2003
Transwestern expanding capacity to California
Northern Natural bolstered by increased gas-fired plant demand
Significant future growth opportunities serving new gas-fired generation
Northern Border Partners (11.8%)
Florida Gas (50%)
Northern Natural (100%)
Our domestic pipelines are Enron’s oldest business and continue to perform both operationally and financially. ETS’ provides Enron with a stream of steady earnings as well as good predictable cash flow.
We just completed a $90 million expansion of our NBPL system on October 1st.
FGT completed its Phase IV expansion last year, is in the process of constructing its Phase V expansion and will file next month for regulatory approval for its Phase VI expansion.
Transwestern is in the process of constructing its Red Rock expansion which is due to be in-service next June 1 and will add 120 MMcf/d of new capacity.
Finally, our Northern system is adding new summer peak load by serving new gas-fired power plants along its system.
Collectively, the expansions will add over 800 MMcf/d of new capacity at a cost of over $1 billion.
That is solid growth.
In addition our two MLP’s EOTT and NBPL acquired new assets valued at over $700 million.
Internationally, we are in the process of closing transactions valued at (getting # from Hughes) by the end of this year.
This team is up to the challenge!
Transports 15% of U.S. Gas Demand;
Peak Capacity of 10.8 Bcf/day

2. Transwestern Growth Initiatives
Capacity Expansions to California
Capacity of 1.1 Bcf to California border
Completed 140 MMcf/d Gallup Expansion in May 2000 with additional compression
Received FERC certification to install new compression at four existing stations in Arizona to expand its system by 150 MMcf/d of incremental firm capacity. TW’s total capacity to the California border will increase to 1.24 Bcf/d.
$93 Million cost
June, 2002 in-service
Nevada
Colorado
Utah
California
San Juan
Basin
Kansas
Anadarko
Basin
Oklahoma
Arizona
New Mexico
Permian
Basin
Texas
Transwestern Pipeline
New Interconnections
Third Party
Power Plants
2001
2002
2003
New Interconnections (East of California)
I am certain all of you have heard about California’s energy woes.
Just in time to have new capacity entering the California market, Transwestern expanded the mainline by 140 MMcf/d last year.
Transwestern recently received approval from FERC to install new compression at four existing stations in Arizona to expand its system by 150 MMcf/d of incremental firm capacity. TW’s total capacity to the California border will increase to 1.24 Bcf/d. The $93 million project is expected to be in service by June, 2002.
Additionally, last year, Transwestern added connections into several key new markets in Arizona and Nevada. These new connects make it more attractive for shippers to enter long-term contracts with Transwestern, as they will now have the ability to drop off gas in Arizona, Nevada or California markets.
Transwestern has bi-directional flow capabilities and provides flexibility to rapidly adapt to the regional demand.
The western deliveries are fully subscribed through December 2005 and eastern deliveries are fully subscribed through We are well positioned for recontracting.
Add information about Sun Devil Expansion into Phoenix, AR market.
Southwest Gas connection with 100 MMcf/d capacity placed in-service November 2000
Calpine’s 500 MW gas-fired power plant to begin operation first quarter 2001
Griffith Energy’s 650 MW gas-fired power plant to begin operation second quarter 2001
Over 12,000 MW of proposed new generation in Western region provides growth opportunities

3. Northern Natural Gas Company Expansion Initiatives
Western
Canadian Basin
Peak Day Max expansion
Team up with TW Expansion with the Gray Interconnect
Trailblazer Expansion at Beatrice
Team up with Guardian for increased supplies from the East
Expand our service offerings
Montana
North
Dakota
Minnesota
Michigan
Wyoming
South
Dakota
Wisconsin .
Rocky Mountain Basins
Nebraska
Market Area
Iowa
Illinois
Kansas
Hugoton
Basin
Supply Area
Missouri
Oklahoma
Anadarko
Basin
New Mexico
NNG continues to be a prominent player throughout the Midwest. Our Northern system serves as a key connection between Midwest utility customers and critical gas supplies to the north and south, providing our customers with supply optionality.
Northern Natural, with over 16,000 miles of pipe, is the largest single pipeline system in the U.S. and serves a market area in the upper Midwest, principally, Minneapolis, Wisconsin, Nebraska, Iowa and Illinois.
Northern is directly connected to the Permian, Anadarko and Hugoton supply basins in Texas, Oklahoma and Kansas. Through the Trailblazer pipeline system, which we have a 1/3 equity interest, we connect to supplies in the Rocky Mountains. And our NBPL system delivers up to 1.3 Bcf/D of Canadian supplies into Northern Natural Gas. This provides our customers with great supply options.
Northern also operates 56 Bcf of storage, providing shippers both physical and financial flexibility in managing their gas supply portfolios.
We are 95% contracted through 2003 in the market area. 85% revenues are fixed demand charges, and we have no rate case requirement through 2003.
We recently completed an open season for our market area (Project Max) to plan for our customers needs for the future. We had requests for over 300 MMcf/d of new capacity. We are working with customers to finalize deals.
Market Area Volumes (BBtu/d)
PowerPak / Auto Balancing / Preferred Deferred Delivery / Limited Firm / Volumetric Rates / Enhanced Firm Backhaul / Capacity Online
Permian
Basin
Enron Assets
Full Year
December
3,483
Storage
Texas
2,775
Northern Natural Pipeline
2,173
2,202
Major Pipeline Interconnects
Great Lakes
Viking
Northern Border
Trailblazer

4. Northern Natural Gas Company Power Initiatives
Completed Deal
Minnesota
Great River Energy Peaking Plant
Placed In-Service - May 2001
Michigan
275 MW
463 MW
Wisconsin
250 MW
Customer Profile
South Dakota
85 MW
240 MW
Gas-Fired merchant plant
120 MMcf/d peak requirement
Situated close to main pipeline
No-Notice, Flexible Supply
Average Service of 50 MMcf/d
Peak use 2.4 times average
3-Year term
Adds demand during off-peak, summer season
Establishes long-term customer
Third Party
Power Plants
445 MW
2001
2002
2003
2004
770 MW
Nebraska
500 MW
330 MW
Iowa
Enron Solution
372 MW
159 MW
Market Area
Illinois
Kansas
Missouri
Supply Area
On Northern, we have new opportunities to serve the Midwest power generation market.
With the forecasts indicating that the upper Midwest will need to add 5000 MW of new generation and more than half of that in Minnesota by 2006, Northern has been engaged in an effort we call PowerSearch to identify potential power sites near NNG pipelines. PowerSearch provides Northern with an effective tool to determine information important to power producers and demonstrates to them that serving this market segment is a priority for us. Most importantly, it facilitates cooperative site searches between ETS and power companies.
Having generation close to the pipeline is only part of the story.
Most of these new plants are for summer peaking demand. This is an excellent fit with Northern’s traditional winter-peak demand profile, allowing us to add new load and new revenue with minimum capital requirements.
As an example, Northern has recently signed a Great River Peaking plant to a 50 MMcf/d firm contract and up to 120 million cubic feet per day of peak per day requirements.
We are currently at various stages of discussion with many independent power producers siting new plants along the Northern system.
Enron Benefits
3,000 MW of gas-fired power plants under development in close proximity to Northern’s system
Innovative tariffs in place to provide flexible gas supply-related services