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Press Release

FLORIDA GAS TRANSMISSION COMPANY FILES APPLICATION FOR PHASE IV EXPANSION

FOR IMMEDIATE RELEASE: Wednesday, December 2, 1998

HOUSTON - Florida Gas Transmission Company (FGT) announced today that it has filed an application with the Federal Energy Regulatory Commission to expand its approximately 5,000-mile existing transmission system by constructing 205 miles of underground pipeline and adding 48,570 horsepower of compression and associated facilities. Through the $350 million proposed expansion, FGT will provide approximately 272,000 million British thermal units (MMBtu) per day of incremental firm transportation service on an average annual basis.

"Our Phase IV Expansion will provide natural gas for electric power generation, help meet growing demand among local distribution companies and allow oil-fired electric generation facilities to be replaced with more efficient, cleaner burning gas-fired units," said Rockford G. Meyer, president of FGT. "This will result in lower plant emissions and a reduced dependence on fuel oil. While the project will provide service to customers in various areas of the state, we're also pleased to make gas available to Southwest Florida for the first time through the proposed West Leg Extension into the Fort Myers area."

Eight shippers have executed 20-year firm commitments for the 272,000 MMBtu/d of incremental service, net of turn-back capacity. FGT's accommodation of turn-back capacity will result in fewer facilities needed to serve expansion customers' loads. The proposed expansion also will increase FGT's system reliability.

To understand the needs and concerns of the citizens of Florida who will be affected by the Phase IV Expansion, FGT has formed a Community Outreach Team to assure an open line of communication while the project is being reviewed and proceeds through the construction and ongoing operation.

"The goals of the team are to foster sustainable relationships and create a win-win situation for customers, residents and FGT," Meyer stated.

FGT anticipates that construction of this project will begin in March 2000; it is scheduled to be completed and placed into service by May 2001.

"As growth continues in the Florida area, Phase V expansion discussions are currently underway with additional customers," Meyer said.

Florida Gas Transmission is a wholly owned subsidiary of Citrus Corp. Citrus Corp. is owned jointly by a subsidiary of Enron Corp. of Houston, Texas and Sonat Inc. of Birmingham, Alabama. Information is available on the Internet at www.fgt.enron.com.

Click here to download this press release in Microsoft Word format.

For additional information please contact:

Gina Taylor

(713) 853-7681







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