CIG Xpress System Rewrite Customer Conference Call

October 20, 2010

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Purpose of Meeting

Provide an update on the CIG Xpress System Rewrite for 2010 and future plans

Review 2010 Goals (as discussed in our Customer Advisory Group planning session in January 2010)

• Accelerate the scheduling and invoicing rewrites• Enhance Headstation Pooling model to address feedback• Make only modest enhancements to existing CIG Xpress

system• Evaluate consolidating transportation systems for all El

Paso pipelines

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Agenda

– Summary of Migrations– Upcoming Enhancements– Training– Update on Consolidated System Project– Questions

CIG Xpress System Rewrite

Summary of Migrations

OriginalTarget

CompletedDate

Comments

New Headstation Screens Q4 2010 10/13/2010CIG Notice 8159

Simpler, easier way to manage Headstation Pools.

Pool Balancing Rewrite Q4 2010 10/13/2010CIG Notice 8159

Additional reduction reason codes.

Imbalance System Q4 2010 10/19/2010CIG Notice 8180

New reports. New query capability.

Measurement Report Q4 2010 10/25/2010 Replaces Data Warehouse Report

Location Pool to Headstation Pool Q4 2010 10/25/2010

Shippers can nominate receipts from Location Pools into Headstation Pools

Fuel Engine Q4 201010/25/2010

To be effective 11/1/2010

Improve internal tracking.

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Migrations (cont’d)

OriginalTarget

CompletedDate

Comments

New Headstation Pooling Areas Q4 2010 10/25/2010

Pooling regions match Market needs.

Invoicing System Q4 2010 10/25/2010CIG Notice 8093

New Invoice system for October Business.

Graphical Pipe Q4 2010 November 2010

Enhancing graphical view of nominations and entitlements.

Capacity Allocation Q4 2010 Q1 2011

Rewriting to provide more stable scheduling processes.

Flexible Receipt/Delivery Enhancement Q4 2010 Q1 2011

Enables shippers to change receipt or delivery points and maintain scheduled quantity through constraints

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Upcoming Enhancements

Week of October 25, 2010

– Location Pool to Headstation Pool

• A Headstation Pool can nominate receipts from a Location Pool

• Downstream TSA service levels will transfer back across HSPs for upstream cuts as they do today

– New Headstation Pooling Areas

• Poolers can aggregate gas at more pooling points (laterals and mainline)

• The current North Headstation Pool also remains available

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Upcoming Enhancements (cont’d)

Week of October 25, 2010

– Invoicing System • New look and feel• Querying and Reporting with drill down features

– New Tree View • CIG Xpress split into 2 areas

Contracts, Capacity Release, Nominations, Confirmations, Requests

Allocation, Storage, Imbalance, Invoicing(new modules in CIG Xpress system)

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Upcoming Enhancements (cont’d)

Week of October 25, 2010

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Representatives are available to provide one-on-one training on reports, screens, and/or any other Customer Service or Scheduling topic.

– For assistance with new Imbalance and Invoicing, call Kate Olson or Troy Jackson at 1-866-523-4243.

– For Nominations and Scheduling assistance, call your Scheduling representative at 1-800-238-3764, option 2.

Need training?

The El Paso Pipeline Group plans to design, develop and implement a shared transportation computer system across the Pipeline Group

– Phased approach by function by pipeline across 4 years

Recommendation is based on a cross-pipe assessment of efficiencies, benefits, risks, costs, timeline and staffing

– Assumes different business rules will be maintained

– Best practices for common processes will be used

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Future – Consolidated Transportation Computer System

Executive Summary

Implementation Strategy

Project Start:– The project start was September 1 for planning, staff transition,

training, architecture

– Full team engagement starts January 1, 2011

Estimated Project Duration: 49 months

– An overall 4-year timeline was used to develop the plan for staffing, phased deployment, and business case costs• “Phased deployment” refers to rolling out functions separately at

defined times to one pipeline group at a time• Assumes a stabilization period of 60-90 days after each deployment• Uses March – October schedule for roll-outs to avoid critical periods• Manages risk and size of change

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Benefit Category

Serve Customers • Increased system performance and reliability• Provides for customization and flexibility• Increased speed to market for system changes• Easier access to more information• Improved accuracy• Proactive, event-driven notices to customers• A unified “experience” when doing business with El Paso

Drive Efficiencies • Leverages best practices • Automates workflow management• Provides event-driven transactional updates• Provides a single data source and easier access to data• Provides for common performance metrics and reporting

Qualitative Benefits

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Benefit Category

Support Growth • Improved access to better data for faster decision making• Decreases deal-to-contract execution time• Decreases system development costs for new service offerings

Leverage IT Strategy • Modular, service-based architecture for speed of delivery• Event-driven information management• Simplified access to information• Minimize costs by purchasing off the shelf where

appropriate• Flexible integration backbone • Utilize Microsoft investment to leverage skills on .NET platform

Qualitative Benefits

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Business Owner: Kathy Hayman Business Management: Larry Williams IT Manager: James Bolles Business Module Leads:

– Security & Data: Charlie Bass– Contracts, Capacity Release, Credit: Sally Turley– Nominations, Confirmations: Tracey Nicholson– Scheduling: Rich Aten– Allocations/Imbalances: Mary Sue McNeal– Invoicing/Gas Accounting: Melba Westbrook– Training: Kathy Royal

More communication will be forthcoming

Project Management

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Nominations & Scheduling

– Norm Walker, Director - El Paso Western Pipelines

– John Driscoll, Manager – CIG, WIC, CP, Young, Ruby

– Freddie Salas, Manager – EPNG & Mojave

Customer Services (allocations/imbalances/invoices)

– Robin Janes, Manager – El Paso Western Pipelines

Contract Services (contracts, capacity release)

– Edgar Trillo, Manager – El Paso Western Pipelines

Gas Control

– Bud Wilcox, Director – El Paso Western Pipelines

– Dean Makings, Manager - CIG, WIC, CP, Young, Ruby

– Kevin Johnson, Manager – EPNG & Mojave

Janice Parker, VP – Customer Service

Day-to-Day Customer ServiceManagement Team

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Questions?