Kern River intends to expand its system, and on Oct. 29, 2007, initiated an open season to solicit requests from shippers interested in additional capacity and to integrate offers of relinquishment of capacity by current firm shippers. The open season will now proceed through Jan. 11, 2008, and interested parties can continue to submit requests for new capacity. The project will be constructed to receive incremental production out of the Rockies for service to markets in Utah, Nevada, Arizona and California. New expansion service resulting from this open season will be available Nov. 1, 2010.

Since announcing the open season, the company has received inquiries from shippers interested in serving markets in northern California. Additional studies have been conducted, and Kern River has concluded its pipeline can be easily expanded to connect with existing intrastate pipelines to serve the growing northern California market.

"Kern River's expansion project can be placed into service earlier and more economically than recently announced competing projects," said Micheal Dunn, Kern River president. "Kern River believes its expansion provides the most economical project into the Las Vegas, Phoenix, Southern California and northern California markets from the growing Rocky Mountain production region. The diversity of market areas served by this expansion provides significant alternatives for shippers to deliver their gas. This expansion project is environmentally sound and can be sized to meet the market demand."

To express interest in firm service, parties should contact Kern River business development representatives Laurie Brown at 801-937-6410, Kevin Billings at 801-937-6167 or Greg Snow at 801-937-6270 to obtain a copy of the precedent agreement. The new capacity agreement must be completed, executed and returned by 4 p.m. MST Jan. 11, 2008.

Kern River Gas Transmission Company owns and operates a 1,680-mile interstate natural gas pipeline between southwestern Wyoming and Southern California. With headquarters in Salt Lake City, Kern River currently delivers more than 1.7 billion cubic feet per day of natural gas to expanding markets in Utah, Nevada and California. Kern River is a subsidiary of MidAmerican Energy Holdings Company.

MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms – PacifiCorp, MidAmerican Energy Company, CE Electric UK, Kern River Gas Transmission Company, Northern Natural Gas Company and CalEnergy – MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide.