HOUSTON, June 24, 2008 (PRIME NEWSWIRE) -- CenterPoint Energy Gas Transmission Company (CEGT), an indirect, wholly-owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc. (NYSE:CNP), announced today the start of a non-binding, 31-day open season to gauge market interest in a new firm wheeling service designed to provide shipper access to existing excess receipt and delivery capacity, along with planned future expansions of such capacity in the growing Perryville Hub(sm) service area in northern Louisiana.
CEGT has been offering wheeling service on an interruptible basis, but its new firm wheeling service would offer shippers an opportunity to secure access on a firm basis to excess firm receipt and delivery point capacity on any of the 16 existing interstate pipeline facilities connected via the CEGT Perryville Hub(sm). Additionally, CEGT is constructing 5 new interstate pipeline interconnects with recently announced pipeline expansions for Perryville Hub(sm) service as well as providing interconnects with proposed storage opportunities, capitalizing on the growing interest in storage projects associated with Perryville Hub(sm) service. The Perryville Hub(sm) service will further facilitate connecting new and growing supplies of natural gas from the Barnett Shale in Texas, the Haynesville Shale in North Louisiana, the Woodford Shale in Southeastern Oklahoma and the Fayetteville Shale in Northeast Arkansas to markets in the Midwest, Northeast and Southeast.
CEGT is soliciting market interest in subscribing to this new firm wheeling service that will utilize existing facilities, as well as potential additions. CEGT has over 5 Bcf/d of existing excess receipt and delivery capacity available to provide Perryville Hub(sm) services. In addition, CEGT expects over 6 Bcf/d of new receipt and delivery capacity to be added in the future from planned pipeline expansion projects that will be able to access the Perryville Hub's(sm) services.
CEGT has received and accepted an order with the Federal Energy Regulatory Commission (FERC) permitting CEGT to add this new firm wheeling service to its menu of Perryville Hub(sm) services. CEGT invites interested shippers to offer both fixed rates, as well as innovative, market-based pricing structures.
"The Perryville Hub(sm) is the fastest growing service for connecting supplies with markets throughout the country. In the future, we could have over 9 Bcf/d of natural gas supply passing through the Perryville Hub(sm) area," said Cy Zebot, senior vice president and chief commercial officer for CEGT. "Given CEGT's unparalleled access to a substantial number of interstate pipelines and anticipated storage opportunities, the growth shown in the Perryville Hub(sm), and the continuing volatility in the natural gas market, we feel that our new firm wheeling service will be well-received as one of the innovative tools needed by the market. With acceptance of our new firm wheeling service by the FERC, we plan to have firm service in place by September 2008."
Written indications of interest should be received by CEGT by 5:00 p.m. CDT on July 25, 2008. For questions, please contact John Fogg, Director Off-System Marketing at 713.207.5183 or john.fogg@cenerpointenergy.com. For additional information, visit the CEGT Web site at pipelines.centerpointenergy.com/cegt.html.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines 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, 2007, and other filings with the Securities and Exchange Commission.