Islander East Receives Favorable Ruling from U.S. District Court in CT

March 26, 2007

Pipeline Does Not Require State Structures, Dredge and Fill Permit

BOSTON – Islander East Pipeline Company, L.L.C. (Islander East) announced today that it has received a favorable decision from the U.S. District Court, District of Connecticut in New Haven.
The Court rejected arguments by the State’s Attorney General, the Department of Environmental Protection and the Town of Branford, asserting in its decision that the proposed Islander East natural gas pipeline does not require a state permit under Connecticut’s Structures, Dredging and Fill Act. The proposed pipeline has already received certification from the Federal Energy Regulatory Commission under the federal Natural Gas Act and the Court determined that the FERC certificate supersedes the state permitting requirement.
“We are pleased with this decision, which is a significant step toward beginning construction of this important project this year,” said Bill Yardley, senior vice president, Islander East. “When completed, Islander East will provide an enhanced and dependable supply of clean energy to the region. We hope that state officials recognize that continued litigation simply delays a reasonable solution to the region’s pressing energy needs and diverts resources from sound environmental mitigation efforts.”
The proposed Islander East pipeline is a 50 mile, 24-inch diameter pipeline that will extend from the existing Algonquin Gas Transmission, LLC pipeline in Connecticut to Long Island, New York. It will integrate the natural gas transmission systems between New England and New York, increasing access to virtually every major supply basin in North America and provide a secure and dependable supply of clean-burning energy from diverse sources.
Islander East (http://www.islandereastpipeline.com/) is an equally owned, limited-liability company formed between subsidiaries of KeySpan Corp. and Spectra Energy Corp.
A member of the S&P 500, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.5 million gas customers and more than 12,000 employees.
KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island’s electric system under contract with the Long Island Power Authority for its 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan also manages a portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, a full-service energy company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy company for business customers. KeySpan also has strategic investments in natural gas exploration and production, pipeline transportation, distribution and storage, as well as Canadian gas processing and fiber-optic cable. For more information about the company, visit KeySpan’s Web site at: http://www.keyspanenergy.com/.
Spectra Energy Corp (NYSE: SE) is one of North America’s premier pure play natural gas midstream companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related energy infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company operates in the United States and Canada approximately 17,500 miles of transmission pipeline, 265 billion cubic feet of storage, natural gas gathering and processing, natural gas liquids operations and local distribution assets. Spectra Energy Corp also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Visit http://www.spectraenergy.com/ for more information.

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