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



    
    Pipeline Does Not Require State Structures, Dredge and Fill Permit
    

    BOSTON, March 26 /CNW/ -- 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.





For further information:

For further information: John Sheridan of Islander East Pipeline Company
 L.L.C., +1-617- 560-1444, +1-713-627-4747 Web Site:
http://www.spectraenergy.com

Organization Profile

ISLANDER EAST PIPELINE COMPANY L.L.C.

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