GULFSTREAM PLACES 110-MILE NATURAL GAS PIPELINE EXTENSION INTO SERVICE - Duke Energy

News Release
February 01, 2005

GULFSTREAM PLACES 110-MILE NATURAL GAS PIPELINE EXTENSION INTO SERVICE

TAMPA, Fla. – Gulfstream Natural Gas System, L.L.C., announced today that it has placed into service its 110-mile Phase II natural gas pipeline extension, expanding its reach across Florida and facilitating the increase of long-term firm service by 350 million cubic feet per day.

"We are excited about the opportunity to provide quality, reliable natural gas service to Florida Power & Light," said Brad Reese, Gulfstream vice president.

"In less than three years, Gulfstream has proven itself to be a very valuable addition to the Florida marketplace. In the wake of a hurricane season that tremendously impacted the Florida market and eastern Gulf of Mexico supply on several occasions, Gulfstream proved its ability to deliver when it mattered most. With this extension in place, we look forward to continuing to expand our transportation service to support Florida's growing need for natural gas," Reese said.

Construction on the 30-inch-diameter Phase II extension began in May 2004 and extended the pipeline eastward from central Florida to Florida Power & Light Company’s Martin power plant located near Indiantown.

With a capacity of approximately 1.1 billion cubic feet per day, Gulfstream now has the ability to serve customers on Florida’s east and west coasts as well as the interior of the peninsula. When the contract with FPL Martin begins later this year, the pipeline will be more than two-thirds subscribed on a firm basis.

The 691-mile Gulfstream system originates near Pascagoula, Miss., and Mobile, Ala., crossing the Gulf of Mexico with more than 430 miles of 36-inch diameter steel pipe to Manatee County, Fla. Once onshore, 240 miles of 30 to 36-inch-diameter mainline crosses Manatee, Hardee, Polk, Osceola, Highlands, Okeechobee and Martin counties of Florida.

Gulfstream Natural Gas System, L.L.C. is a joint venture between Williams (NYSE:WMB) and Duke Energy (NYSE:DUK). More information about the Gulfstream Natural Gas System is available by visiting www.gulfstreamgas.com.

Contact: Chris Stockton
Phone: 713/215-2010
24-Hour Phone: n/a
e-mail: Christopher.L.Stockton@williams.com