HOUSTON, May 11, 2007 (PRIME NEWSWIRE) -- CenterPoint Energy, Inc. (NYSE:CNP) executives were joined by Federal Energy Regulatory Commissioner Marc Spitzer today in a ribbon-cutting ceremony to commemorate the completion and commercial operation of Phase I of CenterPoint Energy's 172-mile, 42-inch diameter Carthage to Perryville pipeline. The ribbon-cutting event was held at the Vernon Compressor Station 30 miles south of Ruston, Louisiana.
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"The Carthage to Perryville pipeline represents a significant step forward in terms of diversity and security in natural gas supply," said David M. McClanahan, president and CEO of CenterPoint Energy. "The benefits of this fully-subscribed pipeline will be felt in the Southeast, Midwest and East Coast markets, enhancing those regions' supply security with onshore, domestically-produced gas."
Commissioner Spitzer remarked, "One of my priorities as Commissioner is to encourage expansion of natural gas infrastructure and to ensure a safe, economic and reliable energy supply to America's consumers."
The Carthage to Perryville pipeline delivers gas supplies from the Barnett Shale in northeast Texas, as well as from the Bossier Sand and Vernon and Elm Grove fields in north Louisiana, to the Perryville hub in Louisiana. The Perryville hub connects with nine interstate pipelines and two intrastate pipelines.
Phase I of the pipeline has a capacity of nearly 1 billion cubic feet per day (Bcf/d). Phase II, which will expand the pipeline capacity to 1.2 Bcf/d, is expected to be in service by mid-summer 2007. The company anticipates a third phase, subject to regulatory approvals, which would expand the pipeline capacity to 1.5 Bcf/d by early 2008. The total cost of the project, including Phase III, is expected to be approximately $550 million.
"Building this pipeline became a bigger challenge than we expected when more than 40 inches of rain fell on the east end of our construction route," said Byron Kelley, group president of CenterPoint Energy Pipelines and Field Services. "However, thanks to our employees' and contractors' hard work, we've successfully completed one of the biggest projects of this kind to be built in the U.S. in many years. We also had incredible cooperation among the contractors, environmental staff, construction staff and permitting agencies."
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution, competitive natural gas sales and services, and pipeline and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.
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This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the period ended December 31, 2006, CenterPoint Energy's and its subsidiaries' Form 10-Qs for the period ended March 31, 2007, and other filings with the Securities and Exchange Commission.
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