Pacific Connector Gas Pipeline

Subsidiaries of Williams, PG&E Corporation and Fort Chicago Energy Partners L.P. have agreed to jointly pursue construction of a liquefied natural gas (LNG) import terminal (Jordan Cove LNG) and an interstate natural gas transmission system (Pacific Connector). This project will increase the supply of natural gas for the Pacific Northwest, northern California and northern Nevada.

The Pacific Connector project is a 230-mile, 36-inch diameter pipeline designed to transport up to 1 billion cubic feet of natural gas per day from the Jordan Cove LNG terminal to markets in the region. The Pacific Connector project includes interconnects to Williams’ Northwest Pipeline near Myrtle Creek, Ore., Avista Corporation’s distribution system near Shady Cove, Ore., as well as Pacific Gas and Electric Company’s gas transmission system, Tuscarora Gas Transmission’s system and Gas Transmission Northwest’s system, all located near Malin, Ore.

Pacific Connector has entered into agreements with seven customers who have requested 1.49 billion cubic feet of natural gas capacity per day through the proposed pipeline. Upon finalization of LNG supply commitments at the Jordan Cove LNG terminal, Pacific Connector will allocate, if needed, the available 1 billion cubic feet of pipeline capacity amongst seven customers.

Benefits

The Jordan Cove LNG and Pacific Connector projects will help meet the growing needs for natural gas supplies in the Pacific Northwest, northern California and northern Nevada.

In addition, the two projects will provide more than 2,800 jobs at construction peak, 120 permanent jobs related to facility and vessel operations and over $14 million in annual county property taxes upon completion.

Submittal of the applications concludes a 16-month National Environmental Policy Act (NEPA) pre-filing review process during which Jordan Cove and Pacific Connector performed extensive field surveys and engaged in frequent, coordinated consultations with the FERC, the U.S. Coast Guard, U.S. Bureau of Land Management, U.S. Forest Service, as well as all key state, county and local environmental, safety and security agencies. In addition to these agency inputs, Jordan Cove and Pacific Connector, through numerous public meetings, solicited input from area citizens, and civic and governmental organizations, to insure that the application reflected the needs and concerns of all interested parties.

Following submittal of the applications, it is expected that the FERC will develop a draft Environmental Impact Statement (DEIS) for the two projects. The DEIS will be subject to further review and public comment with final FERC approval anticipated in 2009.

About the Partners

Williams, through its subsidiaries, primarily finds, produces, gathers, processes and transports natural gas. The company also manages a wholesale power business. Williams’ operations are concentrated in the Pacific Northwest, Rocky Mountains, Gulf Coast, southern California and Eastern Seaboard. More information is available at www.williams.com.

PG&E Strategic Capital, Inc. is a wholly owned subsidiary of PG&E Corporation (NYSE:PCG), an energy-based holding company. PG&E Corporation is also the parent company of Pacific Gas and Electric Company, one of the largest investor-owned electric utilities in the country. Pacific Gas and Electric Company serves approximately 15 million customers throughout northern and central California. For more information, visit www.pgecorp.com.

Based in Calgary, Alberta, and together with its affiliates, Fort Chicago presently owns: (i) a 50.0% interest in the Alliance Pipeline, a 3,000 kilometer mainline natural gas pipeline, which extends from northeastern British Columbia to delivery points near Chicago, Illinois; (ii) an approximate 42.7% interest in Aux Sable and Alliance Canada Marketing. Aux Sable operates natural gas liquids extraction, fractionation and delivery facilities near Chicago; (iii) a 100% interest in the Alberta Ethane Gathering System, a 1,324 kilometer ethane pipeline system, which delivers ethane feedstock to Alberta’s petro-chemical industry; and (iv) a 100% interest in two gas-fired cogeneration power facilities in California, a district energy system located in Charlottetown, Prince Edward Island and a district energy system located in London Ontario. www.fortchicago.com.