On Feb. 1, 2008, Kern River concluded a previous open season for firm transportation service. Based on the results of that open season, the company has determined the optimum size of an expansion is 145,000 dekatherms per day. Service will be provided under Kern River's existing KRF-1 rate schedule for firm incremental rate service for its 2003 expansion project on either 10- or 15-year terms. Under this structure, the rate on a 15-year term would be $0.47 per dekatherm, if the compliance rates Kern River filed in its pending rate case, Docket No. RP04-274, are approved. Rates are subject to the final outcome of Kern River's pending rate case. Compressor fuel is expected to be 3.2 percent.

"We are pleased market interest supports another expansion of the Kern River pipeline system," said Micheal Dunn, Kern River president. "Our analysis and recently concluded open season have demonstrated this 145,000 dekatherm per day project is the most economical project at this time, is the best value of any project that has been announced to serve competing markets and will provide valuable transportation capacity to our customers. The current expansion project positions Kern River to expand the pipeline system in the future with projects that can meet the market demand as conditions warrant."

Interested 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 revised precedent agreement. The precedent agreement must be completed, executed and returned by noon MST March 6, 2008.

Kern River Gas Transmission Co. 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 Co.

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