Lodi Gas Storage, LLC Announces Open Season

Business Wire, June 4, 2003

Energy Editors/Business Editors

HOUSTON--(BUSINESS WIRE)--June 4, 2003

Lodi Gas Storage, LLC (LGS), an independent operator of high deliverability market area natural gas storage, today announced that it is conducting an open season for firm storage capacity under its CPUC Tariff Schedule FSS. LGS is offering this capacity on a nondiscriminatory basis. Responses to this offering are due in the LGS Houston Office by 5:00 p.m. Central Time June 16, 2003. LGS will notify the successful bidders by the close of business June 20, 2003.

The Lodi facility is located approximately 75 miles east of San Francisco, near the city of Lodi, Calif. The storage field is connected to PG&E's California Gas Transmission Line 401 and provides the Northern California marketplace with 12 BCF of firm inventory capacity, 400,000 MCF per day of firm injection capacity and 500,000 MCF per day of firm withdrawal capacity.

The character of the service offered under this open season is firm, six-cycle storage service, meaning successful bidders will have 1/30th of their firm inventory capacity available to them as firm injection or firm withdrawal capacity every day of the term of the contract, regardless of inventory level. This capacity is firm throughout all nomination cycles (there are no "bumping" provisions.)

LGS is soliciting bids for leases of natural gas storage space under
the following conditions:

Maximum Inventory Lease:                           3,000,000 MMBTU
Maximum Injection Quantity:                        100,000 MMBTU/D
Maximum Withdrawal Quantity:                       100,000 MMBTU/D
Minimum Term of Lease:                             9 months
Maximum Term of Lease:                             10 Years
Service Start Date:                                July 1, 2003

Additional fees attributable to this service:
Injection Commodity Fee:                           $0.01 per MMBTU
Withdrawal Commodity Fee:                          $0.01 per MMBTU
Injection Fuel Retention:                          1.50%

Interested parties should contact Marc Weaver at 281/679-3595 or by e-mail at mweaver@westernhubs.com for more information.

Lodi Gas Storage is jointly owned by Western Hub Properties LLC (WHP) and ArcLight Capital Partners, LLC (ArcLight).

WHP is owned by its management team and by private equity funds managed by Haddington Ventures, L.L.C. Haddington-managed funds provide private equity capital to the energy industry, including mid-stream oil and natural gas projects and electric generation, transmission, and distribution projects. Haddington Ventures' limited partners include affiliates of Chase Capital Partners (a J.P. Morgan Chase & Co. affiliate), Vectren Ventures (an affiliate of Indiana Gas and SIGECO), Millenium Energy Holdings (a Tucson Electric affiliate), Travelers Insurance Company, and Prudential Insurance Company.

ArcLight is one of the leading private equity firms focused exclusively on the electric power and energy sector. ArcLight makes equity investments in power generation, transmission and distribution as well as related fuel, services and equipment businesses.