EXECUTIVES FROM Florida Gas Transmission (FGT) and Florida Power & Light, FGT's largest natural gas customer, discuss growth opportunities in the Florida marketplace.

Enron's natural gas pipeline group consists of four major interstate pipeline systems. These pipelines are part of Enron's 32,000-mile interstate and intrastate network that accesses virtually every major supply basin in North America and directly serves customers in 21 states. The interstate pipelines move about 9 billion cubic feet per day (Bcf/d) of natural gas, and are well-positioned to increase that volume in the next two years through planned expansions. In 1998, Enron's pipelines contributed $351 million of income before interest and taxes and significant cash flow.

Northern Natural Gas (Northern) is Enron's largest interstate system with approximately 17,000 miles of pipeline and a market area capacity of about 4.2 Bcf/d. Northern provides transportation and storage services to approximately 70 utility customers in the upper midwestern U.S. Approximately 85 percent of Northern's revenues are comprised of monthly demand charges that are based upon contracted capacity rather than throughput.

Northern's five-year expansion program is on schedule to add about 350 million cubic feet per day (MMcf/d) of natural gas capacity to the Northern system by year-end 2000. Northern also operates three natural gas storage facilities and two LNG peaking units. These storage facilities are fully contracted and are central to meeting customers' peak-day system requirements. Northern has access to a wide range of supply basins and has implemented a host of new services over the last two years to grow and capitalize on short-term transportation opportunities.

The Transwestern Pipeline (Transwestern) system consists of approximately 2,700 miles of pipeline, with combined east-west delivery capability of 1.6 Bcf/d. Transwestern also operates a major supply lateral in the San Juan Basin, with a capacity of over 800 MMcf/d. The Transwestern system can flow San Juan Basin gas either west to California or east to interconnect with other pipelines. This access to multiple markets has proven very valuable in keeping the system running at peak capacity.

The Transwestern system is currently negotiating with customers to expand the system from San Juan to California. Since adding bi-directional capability in 1995, Transwestern has re-established its volumes flowing into the previously oversupplied California market and today delivers more than 950 MMcf/d into that market.

Florida Gas Transmission (Florida Gas) consists of approximately 5,000 miles of pipeline and is the only natural gas pipeline serving the peninsular Florida market. As the demand for natural gas in Florida increases over the next decade to meet the needs of the growing electric generation market, the Florida Gas system has an opportunity to benefit from not only the construction of new gas-fired power plants but also utilities switching to natural gas. Florida Gas is fully contracted with long-term contracts and currently 80 percent of its load is utilized for electric generation. The pipeline also has filed for a $350 million, 270 MMcf/d Phase IV expansion which is backed by firm, 20-year contracts and is expected to be in-service in 2001, introducing Florida Gas to the Southwest Florida market.

Northern Border Pipeline (Northern Border) consists of approximately 1,200 miles of pipeline and currently transports about 2.2 Bcf/d of Canadian supplies into the U.S. Midwest market. Northern Border has 100 percent of its capacity contracted to a diverse group of shippers through long-term contracts. In December 1998, Northern Border's $890 million Chicago Project achieved commercial operation, adding 700 MMcf/d of incremental capacity from the Canadian border into Ventura, Iowa, and 960 MMcf/d of capacity at Harper, Iowa. The system now extends into the Chicago area with 660 MMcf/d of transport capability into that market.

MANY POWER FACILITIES OWNED by Portland General Electric are located along Oregon's rivers and forests, and the company maintains parks at its power plants that provide opportunities for recreation and leisure. Portland General owns 2,023 megawatts of generating facilities and all have excellent operating records.

Portland General Electric (Portland General) is a highly rated owner and operator of electricity generation and distribution assets in a franchise territory experiencing population growth at twice the national average. Portland General brings stable earnings and a strong cash flow to Enron and is Enron's platform for participation in the deregulating U.S. power industry.

Portland General's service territory contains 44 percent of Oregon's population, as well as 60 percent of its economic base. The company serves more than 700,000 customers and its average annual demand is 2,100 megawatts. Portland General owns 2,023 megawatts of generation that is split evenly between hydroelectric, coal and natural gas, and its plants and systems have excellent operating records.

Portland General continues to provide excellent service to its customers. Its no-fault complaints are the lowest among all area utilities, and the number of outages on its system has continued to decrease each year. The company attributes its success to skilled and motivated employees who work closely with customers and the use of state-of-the-art technology for construction and design.

Portland General also has leveraged its technical competencies into Enron's worldwide operations through projects such as generation consulting, distribution engineering and due diligence for privatization. As Enron builds a platform for its integrated gas and electricity business in the Southern Cone of South America, Portland General provides valuable expertise in evaluating regional electric distribution assets that complement Enron's strategy.