HOUSTON, June 30, 2006 – Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Sempra Pipelines & Storage, a unit of Sempra Energy (NYSE: SRE), today announced that ConocoPhillips has exercised its option to acquire a 25 percent interest in the Rockies Express Pipeline project.

        The 1,663-mile pipeline will be one of the largest natural gas pipelines ever constructed in North America and will transport natural gas from the prolific producing basins in Wyoming and Colorado to the upper Midwest and eastern United States.  The approximately $4.4 billion project will have the capability to transport 1.8 billion cubic feet per day of natural gas.  Binding firm commitments from creditworthy shippers have been secured for virtually all of the capacity on the pipeline.

        KMP will operate Rockies Express and now owns 51 percent of the equity in the project, which will become 50 percent when construction of the entire project is completed.  Sempra Pipelines & Storage now has a 25 percent ownership interest in the project.  ConocoPhillips currently owns a 24 percent interest in the project with an additional one percent interest to be acquired after the pipeline construction is completed.  No additional changes in the ownership structure of the Rockies Express Pipeline project are anticipated at this time.

        The following is a status update on Rockies Express.
        • A binding open season is in process to assess shipper interest to extend the pipeline further eastward from the Clarington Hub in Monroe County, Ohio, to Oakford, Pa.  Information related to the open season, which runs through Friday, July 14, can be obtained by contacting Jeff Rawls at Kinder Morgan (303) 914-4903 or Ryan O’Neal at Sempra Pipelines & Storage (619) 696-4585.   

        • Interim service has begun on the initial 136-mile segment of the pipeline from Meeker, Colo., to the Wamsutter Hub in Sweetwater County, Wyo.

        • Construction on the 192-mile segment from the Wamsutter Hub to the Cheyenne Hub in Weld County, Colo., is scheduled to begin this summer and is expected to be in service by Jan. 1, 2007. 

        • Service on the 713-mile segment from the Cheyenne Hub to eastern Missouri (REX West) is scheduled to commence on Jan. 1, 2008.

        • The 622-mile segment from eastern Missouri to the Clarington Hub (REX East) is expected to be in interim service as early as Jan. 1, 2009, and fully completed by June 2009.  These projected dates are subject to regulatory approvals.

        • In May, KMP and Sempra Pipelines & Storage filed the FERC certificate for REX West.  In June, the National Environmental Policy Act pre-filing for REX East was made with the FERC.  

        Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded pipeline limited partnerships in America and owns or operates more than 27,000 miles of pipelines and approximately 145 terminals.  Its pipelines transport more than 2 million barrels/day of gasoline and other petroleum products and up to 9 billion cubic feet/day of natural gas, and its terminals handle over 80 million tons of coal and other bulk materials annually and have a liquids storage capacity of about 70 million barrels for petroleum products and chemicals.  KMP is also the leading provider of CO2 for enhanced oil recovery projects in the United States.

        The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI), one of the largest energy transportation, storage and distribution companies in North America.  Combined, the two companies have an enterprise value of more than $35 billion. 

        Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States.  Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

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This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize.  Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  When Sempra Energy uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “should” or similar expressions, or when Sempra Energy discusses its strategy or plans, the company is making forward-looking statements.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.

Sempra Pipelines & Storage is not the same company as the utilities, SDG&E or SoCalGas, and Sempra Pipelines & Storage is not regulated by the California Public Utilities Commission.