James J. ClearyPresident, El Paso Western Pipelines

AGA Financial ForumScottsdale, ArizonaMay 8, 2006

2

Cautionary Statement Regarding Forward-looking Statements

This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, our ability to successfully contract, build and operate the pipeline projects described in this presentation; changes in supply of natural gas; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company’s (and its affiliates’) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

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Agenda

► Pipeline Group Overview

► Regional Supply and Market Trends

► Growth Outlook

► El Paso Western Pipelines Update

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El Paso’s Natural Gas Pipelines

TennesseeGas Pipeline

Elba Island LNG

SouthernNatural Gas

ANR Pipeline

Great Lakes GasTransmission (50%)

ColoradoInterstate Gas

Wyoming Interstate

El PasoNatural Gas

MojavePipeline

Mexico Ventures

Cheyenne Plains Pipeline

CypressPipeline

Florida GasTransmission (50%)

►26% total U.S. interstate pipeline mileage

►36 Bcf/d capacity (25% of total U.S.)

►Best market connectivity

►Best supply access

►Leading pipeline integrity program

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El Paso Western Pipelines

ColoradoInterstate Gas

4,000 miles; 3 Bcf/d

Wyoming Interstate600 miles; 2 Bcf/d

Cheyenne Plains Pipeline

380 miles; 0.8 Bcf/d

El PasoNatural Gas

10,600 miles; 6 Bcf/d

MojavePipeline

400 miles;0.4 Bcf/d

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Rockies Supply vs.Regional Export Capacity

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

100% LF

85% LF

Supply Available for Export

MMcf/d

90% LF

Expansion needed:

► 2011 if 85% LF► 2012 if 90% LF► 2015 if 100% LF

Cheyenne Plains560 expansion

Cheyenne Plains170 expansion

Rockies Express1,800 expansion

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Arizona Gas Demand andPopulation Trends

0

100

200

300

400

500

600

700

800

900

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Compound AnnualGrowth RatesPopulation:2000–2004: 2.69%2005–2010: 2.49%2000–2010: 2.54%

Total Gas Demand:2000–2004: 11.39%2005–2010: 1.40%2000–2010: 5.45%

18.64%5.43%

10.46%11.44% 2.95% 2.66% 0.49% 0.12% 2.94%

0.83%Year to

Year Gas Growth

Residential/Commercial/Industrial Electric Power Arizona Population

Po

pu

lation

(1,000’s)M

Mcf

/d

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California Gas Demand andPopulation Trends

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201020,000

25,000

30,000

35,000

40,000

45,000

50,000

(1.23)%(7.48)%

(2.34)%6.99% (1.99)%

4.64% (0.09)% 2.81% 2.46% 1.87%

Year to Year Gas Growth

Residential/Commercial/Industrial Electric Power California Population

Po

pu

lation

(1,000’s)M

Mcf

/d

Compound AnnualGrowth RatesPopulation:2000–2004: 1.52%2005–2010: 1.10%2000–2010: 1.17%

Total Gas Demand:2000–2004: (1.15)%2005–2010: 2.33 %2000–2010: 0.49 %

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California Natural Gas Demand 2004

Source: California Energy Commission

California Gas Demand byCore vs. Noncore

Source: California Gas Report - 2005 Supplement

California Gas Demand

ElectricGeneration

47%

Industrial20% Commercial

10%

Residential23% Noncore

68%Core32%

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WECC Regional Breakout ofInstalled Gas Fired MW Capacity

0

5,000

10,000

15,000

20,000

25,000

30,000

SouthernCalifornia

NorthernCalifornia

Arizona PacificNorthwest

Southern Nevada MountainNorthwest

Colorado / SEWyoming

New Mexico / ElPaso Area

Incremental Gas Demand 1,680 MDth/d

980 MDth/d

1,700 MDth/d

760 MDth/d 750

MDth/d260

MDth/d

Pre-1999 Capacity Capacity Additions since 1999

Inst

alle

d M

W C

apac

ity

Since 1999:Added 6,130 MDth/d of

potential new gas demand in Western Pipeline markets

High Connectivity withSupply and Markets

MarketsSupplyCOUT

NV

CA NM

MEX.

221 Southwest Gas43 Citizens (UNS)12 APS8 SRP

61 Other

345 Arizona Delivery Points~200 Supply Receipt Points

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Western Pipeline Growth Projects

Cheyenne Plains Phase I & II

$385 MMDecember 2005

755 MMcf/d

Completed or under constructionSigned PA’sFuture Projects

EPNG Sonora Lateral$91 MM2009/10

800 MMcf/d

EPNG Line 1903$74 MM

December 2005502 MMcf/d

WIC Piceance Pipeline$132 MM

March 2006333 MMcf/d

WIC Kanda LateralUp to $137 MMJanuary 2008

Up to 333 MMcf/d

CPG Yuma Lateral$22 MM

October 200649 MMcf/d

EPNG Arizona Storage$105 MM2009/10

350 MMcf/d CIG Raton Basin Expansions

$91 MM2005–2008170 MMcf/d

Front RangeMarket Delivery Infrastructure

$148 MM2008/2009

WIC/CP Opal to Cheyenne or Greensburg$39–$67 MMJanuary 2008125 Mdth/d

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Continental Connector Project► Secured significant

commitment from Chesapeake Energy

► Binding open season runs through May 19

► Began NEPA pre-filing process

► Expected design: 1 Bcf/d with 1Q 2008 in-service

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Western Pipelines Update

► Favorable orders on EPNG restructuring and rate caps

– Largely approved proposed new services

– Clarified limits on applicability of 1996 rate settlement

► Customer settlement negotiations ongoing inEPNG rate case

► Extended effectiveness of new CIG rate case until January 2007

– Settlement negotiations ongoing

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El Paso Western Pipelines: Conclusions

► Excellent supply access

► Serving growing markets

► High degree of connectivity

► Well positioned for growth

► Making good progress on rate cases and service restructuring

James J. ClearyPresident, El Paso Western Pipelines

AGA Financial ForumScottsdale, ArizonaMay 8, 2006