Hot Spring Lateral

• Location: Hot Spring, White and Nevada Counties, Arkansas
• Scope: (see detail below)
• Capacity: 120 million cubic feet per day
• Ownership: 100% Spectra Energy
• Project Completion Date: Mid to Late 2011

AGREEMENT WITH K GEN HOT SPRING LLC

Texas Eastern Transmission LP ("Texas Eastern") is proposing to construct the Hot Spring Lateral project to supply natural gas to the KGen Hot Spring power plant located in Hot Spring County, Arkansas.

This project is anticipated to provide KGen Hot Spring LLC with firm capacity from delivery point(s) on Texas Eastern's mainline in White County, Arkansas to KGen's Hot Spring power plant.

PROPOSED DETAILED SCOPE OF WORK

• Construction of approximately 8.4 miles of new 16-inch diameter natural gas pipeline from an existing Texas Eastern pipeline near Malvern, Arkansas to an existing KGen Power Plant.
• Construction of a new metering and regulating station at the KGen Hot Spring Power Plant near Malvern, Arkansas.
• Addition of a new pressure limiting device at M.P. 108.4 adjacent to Texas Eastern's existing Hope Compressor Station in Nevada County, Arkansas.
• Addition of a new pressure limiting device at M.P. 273.4 on Texas Eastern's existing mainline in White County, Arkansas.



For more information about the Hot Spring Lateral Project, please feel free to contact us locally at 866-361-7181.