Natural gas flows commence into Wild Goose Storage expansion

Delevan, CA, (November 18, 2003) - Wild Goose Storage Inc. announced today the completion of a significant milestone in expanding its existing underground natural gas storage facility. On Thursday, November 20, 2003 natural gas will begin to flow through a new 25-mile pipeline that will carry gas between the main Pacific Gas & Electric Co. (PG&E) pipeline in Colusa County, and the expanded Wild Goose underground natural gas storage facility in Butte County, California.

"With the Wild Goose Expansion, we are proving the worth of private investment in California's natural gas infrastructure," said Wild Goose Storage President Rick Daniel. "Improving the state's energy infrastructure is a key goal of Governor Schwarzenegger's energy policy."

The Wild Goose Storage facility is designed to store its customers' natural gas in an underground rock formation, or reservoir, which had previously produced natural gas. Their gas is injected into the reservoir by compressors, where it is stored until subsequently withdrawn and delivered to customers over the PG&E natural gas transmission and distribution system.

"With the completion of this milestone, Wild Goose is helping to fulfill our objective of attracting investment in independent natural gas storage facilities to help meet California's growing natural gas demand," CPUC President Michael Peevey said. "Investments like this will reinforce our energy infrastructure, a key objective of our "Energy Action Plan" which we recently adopted in conjunction with the California Energy Commission and the California Power Authority. Independent natural gas storage is cost effective for the ratepayers because it is constructed with private capital, and it provides a valuable complement to the natural gas service provided by Pacific Gas & Electric Co."

Peevey will attend a ceremony on November 20 to inaugurate the first flow of natural gas from the PG&E backbone pipeline into the expanded Wild Goose facilities. These new facilities were authorized by the California Public Utilities Commission in July 2002

The expansion of the Wild Goose storage facility will bring a dramatic improvement over the existing plant, by increasing the flexibility and reliability of the storage facility. The first phase of the expansion will allow Wild Goose to deliver more than twice as much natural gas onto the PG&E system, an increase from the current peak of 200 Million cubic feet per day (MMcf/d) to 480 MMcf/d. In the coming months, peak withdrawal capacity will further increase to 700 MMcf/d.

The greater withdrawal capacity of the Wild Goose Storage will enable California to receive as much natural gas as a new interstate pipeline could provide, but at a fraction of the construction cost. In addition, storing natural gas in California allows gas to be delivered when it is needed during peak demand periods, without any risk of upstream supply diversions.

Besides withdrawal capacity, the maximum inventory capacity of the reservoir is also being greatly expanded, initially increasing from 14 billion cubic feet (Bcf) to 24 Bcf. When the expansion is fully built, inventory capacity will be approximately 29 Bcf.

"This expanded peak withdrawal will be of tremendous value to the new natural gas-fired electric generation facilities in California," noted Daniel. "Electric generators must respond to immediate changes in power loads on the grid, and Wild Goose Storage is now better able to help them meet their needs for rapid deliveries of additional natural gas to power their generators."

Wild Goose Storage Inc. and PG&E worked in concert to build the interconnection and metering facilities which link the Wild Goose Expansion to the PG&E mainline natural gas transmission system. Since the commencement of operation of the original Wild Goose Storage in 1997, PG&E and Wild Goose have worked cooperatively to assist each other in the operation of their two systems.


Alan Boras EnCana Corporation 403-645-4747
Ken Smith KDS Communications 916-448-0220
Michael Day Goodin, MacBride, Squeri, Ritchie & Day 415-973-5930
PG&E News Department 415-973-5930

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