TEXT-S&P release on Pine Prairie Energy Center

(The following statement was released by the rating agency)

June 27 - Standard & Poor's Ratings Services said today it lowered its
rating on Pine Prairie Energy Center LLC's (PPEC) $240 million term loan B due
2013 and $120 million revolving credit facility due 2011 to 'B' from 'B+'. At
the same time, we affirmed our '3' recovery rating on this debt. The rating
action follows our annual review of PPEC's gas storage project, which has
experienced significant cost increases and construction delays.

"As a result, we expect that outstanding debt at maturity will be
significantly higher and liquidity lower than anticipated when we assigned the
original rating over the next three years," said Standard & Poor's credit
analyst Michael Grande.

The issues' '3' recovery rating indicates an expectation of meaningful
(50% to 70%) recovery of principal in a payment default scenario. The outlook
is stable.

An increase in project costs since the initial rating and construction
delays will require additional revolver draws to fund remaining capital
expenditures, the purchase of base gas, and to service debt during
construction. The construction delays have pushed the final completion date to
late 2010, reducing near-term cash flow that will result in leverage
significantly higher than originally projected. The downgrade specifically
contemplates increased refinancing risk when the revolver matures in 2011 and
the term loan matures in 2013. As a result of cost overruns and higher debt,
on a total debt/billion cubic feet (bcf) basis, PPEC has a weaker financial
profile than its rated peers. We expect average debt service coverage through
maturity to be about 1.75x as compared with 2.9x contemplated under the
initial rating.

PPEC is indirectly owned by a joint venture between Plains All American
Pipeline L.P. (BBB-/Stable/--) and Vulcan Gas Storage LLC (not rated). PPEC is
developing a 24 bcf three-cavern, high-deliverability salt-dome natural gas
storage facility in Evangeline Parish, La., 50 miles north of the Henry Hub.
Scheduled construction completion is in the fourth quarter of 2010.

The outlook on PPEC is stable, reflecting our view that there is a
significant reduction in construction risk as major components of the project
are functional or are near completion, enhanced cash flow certainty with a
substantial portion of capacity under contract, and the demonstrated
commitment of the co-sponsors to support the project with equity. We could
lower the rating if further delays adversely affect existing customer
contracts and the project's ability to generate cash flow, or if potential
cost increases exhaust the project's remaining liquidity and the co-sponsors
do not provide equity support. A positive outlook is unlikely in the near
term, until such time as the project begins operating and can operate
efficiently.

Complete ratings information is available to subscribers of
RatingsDirect, the real-time Web-based source for Standard & Poor's credit
ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings
affected by this rating action can be found on Standard & Poor's public Web
site at www.standardandpoors.com; select your preferred country or region,
then Ratings in the left navigation bar, followed by Credit Ratings Search.
(New York Ratings Team)