Penn-Jersey System Operations Update

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1 2016 FALL CUSTOMER MEETING THE HOTEL HERSHEY SEPTEMBER 14 16, 2016 Penn-Jersey System Operations Update Tom Wooden Vice President, Field Operations Andy Drake Vice President, Operations & EHS

2 Agenda Welcome Penn-Jersey System Overview Overview of the Incident and Preliminary Cause Texas Eastern Work Plan, Critical Path Items and Commitments Historical Flows & Illustrative Capacity Restoration Scenarios Q&A 2016 Fall Customer Meeting 2

3 Texas Eastern in Pennsylvania Incident location 2016 Fall Customer Meeting 3

Guiding Principles Address the needs and the safety of the immediate community Ensure safe operation of the pipeline system Provide transparency to regulatory agencies,

4 Guiding Principles Address the needs and the safety of the immediate community Ensure safe operation of the pipeline system Provide transparency to regulatory agencies, community and customers Apply conservative criteria and minimize rework Protect the customers needs and stabilize return to full service plan 2016 Fall Customer Meeting 4

5 TETLP Actions Following the Incident Self-imposed temporary pressure reduction across the Penn-Jersey System - PJS Records review of girth-weld coatings on all of the PJS Developed model for evaluating circumferential anomalies Completed a detailed review of the most recent ILI data for the PJS Identified anomalies for excavation and evaluation Re-running ILI tools for inspections more than 3 years old 2016 Fall Customer Meeting 5

6 Work Plan Delmont Line 27 Incident PHMSA ISSUED AN AMENDED CORRECTIVE ACTION ORDER ON JULY 19 The Amended CAO aligns very well with our test and inspection plan as well as with established program controls The most significant difference is that the amended CAO requires a hydrostatic retest of Lines miles and miles from Delmont to Armagh, which are in progress DEFINED THREE PRIMARY STREAMS OF WORK 1. Identify, inspect and remediate, as necessary, anomalies based on review of current ILI data 2. Hydrostatic testing as required by the Amended CAO on Delmont Lines 12 and 27 including the remediation of any additional anomalies 3. Remediate any additional anomalies identified by the new ILI runs conducted this summer 2016 Fall Customer Meeting 6

7 Work Plan Current ILI Assessments ASSESSMENT OF THE CURRENT ILI DATA IS COMPLETE anomalies identified for inspection have been released by environmental anomalies have been excavated have been evaluated previous pace: sites/week-set based on permits accelerated pace/ added resources * Data as of September 13th 2016 Fall Customer Meeting 7

Permitting Status Update PADEP supportive of basis for emergency permit status and expediting processing of permit Emergency Permit status granted by State of Pennsylvania on September

Perry, and Berks County, Permits are pending for three counties, Juniata, Lebanon, and Bucks County, expected by September 16th US Fish and Wildlife Services has completed review of

8 Permitting Status Update PADEP supportive of basis for emergency permit status and expediting processing of permit Emergency Permit status granted by State of Pennsylvania on September 2nd All sites in a county historically filed under one permit application nine counties involved in the PJS work Permits have been received for Westmoreland, Indiana, Cambria, Blair, Perry, and Berks County, Permits are pending for three counties, Juniata, Lebanon, and Bucks County, expected by September 16th US Fish and Wildlife Services has completed review of Endangered Species applications/plan All sites identified associated with hydrostatic testing and new ILI runs will be handled under Emergency Permit agreement with PADEP 2016 Fall Customer Meeting 8

9 Work Plan Hydrostatic Testing Hydrostatic test Line 12 Delmont Station to Armagh Station (27.5 miles) 60 dig sites identified (103 small anomalies) Hydrostatic test Line 27 MP 6.89 to MP and Auxiliary Crossing (11.5 miles) 24 anomalies identified 2016 Fall Customer Meeting 9

10 Work Plan ILI Reassessments and Remediation Nine of nine re-inspection runs complete; last one completed on 9/8 ILI data evaluated; identify new anomalies over next 3 weeks Most new information is being collected on Line 27; Line 27 remediation work to be executed after Lines 12, 19 and 28 are back in full service Line 27 likely isolated to support work in many locations Will deploy additional crews as needed for additional sites 2016 Fall Customer Meeting 10

11 Texas Eastern Delmont Unplanned Outage Work Plan Overview LINE 12 Delmont MP 6.85 MP 9.10 Armagh LINE 19 LINE 27 LINE 28 Full MAOP Isolated New Pipeline 2016 New Pipeline Fall Customer Meeting 11

12 Work Plan Reassessments, Remediation, Return to Service Sept 8 Last of 9 re-inspection runs completed 3 weeks ILI data evaluated; anomalies identified Most of new data on LINE 27 Oct 7 LINE 12 hydrostatic tests complete Oct 12 LINE 12, 19, 28 return to full service Nov 1 All work scheduled to be complete HERSHEY MEETING 9/14-9/15 OCT 1 NOV 1 LINE 27 to be removed from service and isolated to expedite work and support work at multiple locations 2016 Fall Customer Meeting 12

13 Penn-Jersey System Operating Status Nov. March, Current Capacity Scenario LINE 12 LINE 19 LINE 27 LINE 28 DEL 1,162 2,661 ARM LIL ENT PER SHER GRA BER BEC LAM 1,418 2,951 1,418 2,950 1,415 2,943 1,953 3,506 1,947 3,493 1,899 3,422 1,749 3,263 1,608 3,098 1,500 2,466 4,000,000 Perulack Winter Flow 3,500,000 3,000,000 2,500,000 2,000,000 Capacity 1,953 1,500,000 1,000, ,000 W14-15 W /1 11/15 11/29 12/13 12/27 1/10 1/24 2/7 2/21 3/6 3/ Fall Customer Meeting 13

14 Penn-Jersey System Operating Status Nov. March, Scenario 1 LINE 12 LINE 19 LINE 27 LINE 28 DEL 1,395 2,661 ARM LIL ENT PER SHER GRA BER BEC LAM 1,689 2,951 1,734 2,950 1,730 2,943 2,140 3,506 2,133 3,493 2,060 3,422 1,908 3,263 1,748 3,098 1,353 2,466 4,000,000 Perulack Winter Flow 3,500,000 3,000,000 2,500,000 2,000,000 Capacity 2,140 1,500,000 1,000, ,000 W14-15 W /1 11/15 11/29 12/13 12/27 1/10 1/24 2/7 2/21 3/6 3/ Fall Customer Meeting 14

15 Penn-Jersey System Operating Status Nov. March, Scenario 2 LINE 12 LINE 19 LINE 27 LINE 28 DEL 1,792 2,661 ARM LIL ENT PER SHER GRA BER BEC LAM 2,085 2,951 2,128 2,950 2,126 2,943 2,694 3,506 2,684 3,493 2,610 3,422 2,459 3,263 2,297 3,098 1,902 2,466 4,000,000 Perulack Winter Flow 3,500,000 3,000,000 Capacity 2,694 2,500,000 2,000,000 1,500,000 1,000, ,000 W14-15 W /1 11/15 11/29 12/13 12/27 1/10 1/24 2/7 2/21 3/6 3/ Fall Customer Meeting 15

16 Penn-Jersey System Operating Status Nov. March, Final Scenario LINE 12 LINE 19 LINE 27 LINE 28 DEL 2,661 2,661 ARM LIL ENT PER SHER GRA BER BEC LAM 2,951 2,951 2,950 2,950 2,943 2,943 3,506 3,506 3,493 3,493 3,422 3,422 3,263 3,263 3,098 3,098 2,466 2,466 4,000,000 3,500,000 Perulack Winter Flow Capacity 3,506 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 W14-15 W /1 11/15 11/29 12/13 12/27 1/10 1/24 2/7 2/21 3/6 3/ Fall Customer Meeting 16

17 Summary Three streams of work defined scope of first two are clear and represent the majority of the work Work plan prioritizes Lines 12, 19 and 28 fewest anomalies Mid-October return to full service of Lines 12, 19, and 28 represents capacity needs historically not seen until Mid-November Incremental return of Line 27 segments will provide capacity increase to meet needs historically not seen until end of November Permitting process is in alignment with accelerated schedule Meeting at least weekly with PHMSA on work plan, findings and schedule in agreement on approach and work plan Our work plan is designed to provide full service of the PJS by November Fall Customer Meeting 17

19 2016 FALL CUSTOMER MEETING THE HOTEL HERSHEY SEPTEMBER 14 16, 2016 Appendix Penn-Jersey System Operations Update

20 Spectra Energy: U.S. Gas Transmission SE U.S. Gas 12,660 miles in 26 states Texas Eastern 9,075 miles in 17 states 2016 Fall Customer Meeting 20

Penn-Jersey System Original Construction Line 12 1954 Incident location Line 19 1958 through 1968 Line 27 1965 through 1988 Line 28 1968 and 1986 through 2015

21 Penn-Jersey System Original Construction Line Incident location Line through 1968 Line through 1988 Line and 1986 through 2015 Pipeline Integrity All lines were hydrostatically tested during construction Pipelines have been in-line inspected, except a few short sections 2016 Fall Customer Meeting 21

22 Delmont Line 27 Incident Summary PIPELINE RUPTURE AND FIRE OCCURRED ON APRIL 29, 2016 Four parallel pipelines located in the ROW at failure site Isolation valves for all four lines shut in within one hour Community impacts: Nine homes evacuated, one home destroyed, one injured resident PHMSA ISSUED CORRECTIVE ACTION ORDER ON MAY 3 PHMSA s preliminary investigation identified evidence of corrosion along two circumferential girth welds The pattern of corrosion indicated a possible flaw related to tape coating used on the girth welds applied during construction of the line 2016 Fall Customer Meeting 22

Delmont Line 27 Incident Details Installed in 1981 Class 1 location 30-inch x 0.

23 Delmont Line 27 Incident Details Installed in 1981 Class 1 location 30-inch x inch wall thickness, X-65 1,050 psig MAOP 60% SMYS Fusion-bonded epoxy pipe coating Tape coating on girth welds In-line inspected in 2005 and ILI identified 33% wall loss at failure location Did not meet criteria for investigation 2016 Fall Customer Meeting 23

24 2016 FALL CUSTOMER MEETING THE HOTEL HERSHEY SEPTEMBER 14 16, 2016 Gas Operations Update Mark MacPherson General Manager, Capacity Management

25 Spectra Energy U.S. Transmission Map Miles of Pipe 13,297 Number of Compressor Stations 129 Total Horsepower 2,147, Fall Customer Meeting 25

26 Texas Eastern Transmission, L. P. Zones M2/M3 Monthly Deliveries 200,000 Mdth 180, , , , ,000 80, % 23% of Total 4.3% 21% of Total 17% of Total 52.2% 26% of Total 1.5% 24% of Total 23% of Total 52.1% 28% of Total 12.3% 26% of Total 22% of Total 57.4% 27% of Total 6.1% 23% of Total 22% of Total 60,000 40,000 20,000 0 May Jun Jul Aug Prev 5yr Avg Pwr 2015 Pwr 2016 Pwr 2016 Fall Customer Meeting 26

27 Texas Eastern Transmission, L. P. Zones M2/M3 Power Plant Monthly Deliveries 45, % -0.5% 40, % 35, % 20.1% 29.0% 30, % 25, % Mdth 20,000 15,000 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg Fall Customer Meeting 27

28 Texas Eastern Transmission, L.P. M2/M3 Power Plant Loads vs. CDD May - Aug 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Dth 800, , , , CDD Curve Fit (Prev 5 yr Avg) Curve Fit (2015) Curve Fit (2016) 2016 Fall Customer Meeting 28

29 Texas Eastern Transmission, L.P. M2/M3 Top 25 Summer Days 7,000 6, ,000 4,000 Mdth/d 3,000 2,000 1, Fall Customer Meeting 29

30 Texas Eastern Transmission, L.P. M2/M3 Power Plant Top 25 Summer Season 1,800 1, ,400 1,200 Mdth/d 1, Fall Customer Meeting 30

31 Algonquin Gas Transmission Monthly Deliveries 45,000 40, % -15.5% -19.9% -13.6% -20.7% -14.3% -19.3% 35,000 30,000 25,000 39% of Total 43% of Total 46% of Total -4.8% 43% of Total 46% of Total 43% of Total 49% of Total 50% of Total 55% of Total 48% of Total 50% of Total 55% of Total Mdth 20,000 15,000 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg Pwr 2015 Pwr 2016 Pwr 2016 Fall Customer Meeting 31

32 Algonquin Gas Transmission Power Plant Monthly Deliveries 25,000 20, % -24.3% -2.8% -13.0% -1.5% -11.4% 15, % -3.7% Mdth 10,000 5,000 0 May Jun Jul Aug Prev 5yr Avg Fall Customer Meeting 32

33 Algonquin Gas Transmission Power Plant Loads vs. CDD May - Aug 900, , , , ,000 Dth 400, , , , CDD Curve Fit (Prev 5 yr Avg) Curve Fit (2015) Curve Fit (2016) 2016 Fall Customer Meeting 33

34 Algonquin Gas Transmission Top 25 Summer Days 1,800 1,600 1,400 1,200 Mdth/d 1, Fall Customer Meeting 34

35 Algonquin Gas Transmission Power Plant Top 25 Summer Days Mdth/d Fall Customer Meeting 35

36 Spectra Energy U.S. Pipelines Daily Average Power Gen Load Aug - July 4,500,000 4,000,000 3,500,000 Dth 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 ETN SESH MNE AGT TE Gulfstream 500,000 0 C1112 C1213 C1314 C1415 C Fall Customer Meeting 36

37 Maritimes & Northeast Pipeline Supply Diversity (MDth/d) Operator Sep 13 - Aug 14 Sep 14 - Aug 15 Sep 15 - Aug 16 Canaport Corridor Encana Goldboro PNGTS M&N Total Fall Customer Meeting 37

38 Algonquin Gas Transmission Supply Diversity (MDth/d) Operator Sep 13 - Aug 14 Sep 14 - Aug 15 Sep 15 - Aug 16 Texas Eastern Tennessee-Mahwah Transco Columbia Hanover Millennium West End Supply Maritimes Everett Northeast Gateway Tennessee-Mendon East End Supply Fall Customer Meeting 38

39 Algonquin Gas Transmission Stony Point Station Load Duration Sep - Aug 1,800,000 1,600,000 1,400,000 C15_16 C14_15 C13_14 C12_13 1,200,000 1,000,000 Dth 800, , , , Days 2016 Fall Customer Meeting 39

40 Texas Eastern Transmission, L.P. Marcellus Shale Supply Growth 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, /1/2010 4/1/2010 7/1/ /1/2010 1/1/2011 4/1/2011 7/1/ /1/2011 1/1/2012 4/1/2012 7/1/ /1/2012 1/1/2013 4/1/2013 7/1/ /1/2013 1/1/2014 4/1/2014 7/1/ /1/2014 1/1/2015 4/1/2015 7/1/ /1/2015 1/1/2016 4/1/2016 7/1/2016 Dth 2016 Fall Customer Meeting 40

41 Texas Eastern Transmission, L.P. Supply Diversity (MDth/d) Operator Sep 13 - Aug 14 Sep 14 - Aug 15 Sep 15 Aug 16 TE Marcellus Production 3,048 4,407 5,439 REX - Clarington Lebanon Area (ANR, PEPL, REX, TX Gas) Other M1 & M Other M AGT to TE Net TETLP Market Zones Supply 4,271 6,010 7, Fall Customer Meeting 41

42 Texas Eastern Transmission, L.P. Opelousas Station Load Duration Sep - Aug 1,000, , , ,000 C15_16 C14_15 C13_14 C12_13 200,000 Dth 0-200, , , ,000-1,000, Days 2016 Fall Customer Meeting 42

43 Texas Eastern Transmission, L.P. Egypt Station Load Duration Sep - Aug 2,000,000 1,500,000 1,000,000 C15_16 C14_15 C13_14 C12_13 500,000 Dth 0-500,000-1,000,000-1,500, Days 2016 Fall Customer Meeting 43

44 Texas Eastern Transmission, L.P. Berne Station Load Duration Sep - Aug 2,500,000 2,000,000 1,500,000 1,000,000 C15_16 C14_15 C13_14 C12_13 500,000 Dth 0-500,000-1,000,000-1,500,000-2,000,000-2,500,000-3,000, Days 2016 Fall Customer Meeting 44

45 Operations Update Review of Northeast Region Summer Flows Operational Balances/Volume Management 2016 Fall Customer Meeting 45

Daily Oversight Directly manage daily imbalance for: - 9 Pipelines - 5 Storage Facilities Business Unit Number of OBAs Texas Eastern 185 East Tennessee

46 Daily Oversight Directly manage daily imbalance for: - 9 Pipelines - 5 Storage Facilities Business Unit Number of OBAs Texas Eastern 185 East Tennessee 113 AGT 47 M&NUS 20 SESH 18 OGT 17 Egan 9 Moss Bluff 5 Bobcat 5 M&NCA 4 OGG 3 Big Sandy 2 Steckman 1 Saltville 1 TOTAL Fall Customer Meeting 46

History of the OBA Update Process Early in 2015 a task force convened to evaluate OBAs Standardize Transparency Align with operators Changes to be made Tolerance levels will be removed Electronic

47 History of the OBA Update Process Early in 2015 a task force convened to evaluate OBAs Standardize Transparency Align with operators Changes to be made Tolerance levels will be removed Electronic submission in LINK Points to Note Replacement of all OBAs No changes to daily activities Flexibility remains unchanged Increased FERC oversight Evaluation of meters on each OBA FERC Approvals Algonquin Gas Transmission, LLC : Order RP Texas Eastern Transmission, LP : Order RP Maritimes & Northeast Pipeline, L.L.C. : Order RP Fall Customer Meeting 47

48 First Wave of the New OBAs OBAs targeted for Wave 1 Strictly targeting pipelines with an approved OBA Form of Service AGT, TETLP, and MNUS OBAs with Notice period of 1 month, or less 169 OBAs effected in Wave 1 Termination Notice sent August 1, 2016 Notice for old OBA is September 14, 2016 Effective date of new OBA is September 15, 2016 Process, as described in the Termination Notice Replacement contract will need to be submitted and fully executed in LINK There will be NO PAPER CONTRACT Balances will be transferred from your former OBA to your new OBA Failure to execute the new OBA by September 15, 2016 will result in Cashout of the Imbalance, as well as shippers taking all Imbalance swings from that point forward 2016 Fall Customer Meeting 48

49 Second Wave of the New OBAs OBAs targeted for Wave 2 Strictly targeting pipelines with an approved OBA Form of Service AGT, TETLP, and MNUS OBAs with notice period greater than 1 month Termination Notice to be sent during the month of September 2016 Process, as described in the Termination Notice Replacement contract will need to be submitted and fully executed in LINK There will be NO PAPER CONTRACT Balances will be transferred from your former OBA to your new OBA Failure to execute the stated effective date will result in cashout of the imbalance, as well as shippers taking all imbalance swings from that point forward 2016 Fall Customer Meeting 49

50 Operational Balances / Volume Management Shamus Donahoe Manager of Operational Balances (713) SPDonahoe@spectraenergy.com Kent Smith (713) KBSmith@spectraenergy.com After Hours Volume Management (713) VolMgmtCapMgmt@spectraenergy.com Margaret Tully (713) MCTully@spectraenergy.com Bonnie Russ (713) BSRuss@spectraenergy.com Leona Harrison (713) LRHarrison@spectraenergy.com Matt King (713) MBKing@spectraenergy.com Denise Thurmond (713) DEThurmond@spectraenergy.com Judy Gossom (713) JDGossom@spectraenergy.com 2016 Fall Customer Meeting 50

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52 2016 FALL CUSTOMER MEETING THE HOTEL HERSHEY SEPTEMBER 14 16, 2016 New Pipeline Development Erin Petkovich Project Director, Business Development

Growth Now and in the Future LNG & Mexico Exports Supply to

Northeast & New England Strong throughput throughout winter

generators and industrial customers Marcellus / Utica Marcellus

5 Bcf/d of flows directly into Texas Eastern By 2017, Spectra

5 Bcf/d in all cardinal directions Southeast & Gulf Coast

53 Growth Now and in the Future LNG & Mexico Exports Supply to Markets Power Generation Power Generation Demand Market Growth Northeast & New England Strong throughput throughout winter seasons Market expansion opportunities to serve LDCs, power generators and industrial customers Marcellus / Utica Marcellus averaged 5.5 Bcf/d of flows directly into Texas Eastern By 2017, Spectra Energy capacity for transport of ~9.5 Bcf/d in all cardinal directions Southeast & Gulf Coast Significant incremental growth from power generation coal conversions Gulf Coast regional demand projected to increase 19 Bcf/d by Fall Customer Meeting 53

Algonquin Expansions: New England Market-Driven Projects ME QC Maritimes & Northeast NS Regional Supplies PA NY NJ VT MA CT NH Texas Eastern RI MA Salem Lateral Algonquin Project Status: AIM

54 Algonquin Expansions: New England Market-Driven Projects ME QC Maritimes & Northeast NS Regional Supplies PA NY NJ VT MA CT NH Texas Eastern RI MA Salem Lateral Algonquin Project Status: AIM construction under way, on schedule for 4Q16 in-service Atlantic Bridge in execution, expecting FERC Certificate 2H16 Salem Lateral under construction, on schedule to be placed into service 4Q16 Project Volume (MMcf/d) Target In-service AIM 342 2H16 Atlantic Bridge 133 2H17 Salem Lateral 115 2H Fall Customer Meeting 54

Access Northeast Algonquin and Maritimes systems directly connect to 60% of ISO-NE s gas-fired generators New

Eastern Algonquin NEW YORK Maritimes & Northeast PORTLAND BOSTON Project Scope: ~$3 billion (100%); 900 MMcf/d

to become more gas dependent Natural gas generation has increased from 15% to 50% market share since 2000

Additional natural gas infrastructure is needed to serve growing gas generation Access Northeast is best

55 Access Northeast Algonquin and Maritimes systems directly connect to 60% of ISO-NE s gas-fired generators New gas-fired generators totaling ~2,570 MW attaching to Algonquin by 2019 Market area LNG peak shaving Texas Eastern Algonquin NEW YORK Maritimes & Northeast PORTLAND BOSTON Project Scope: ~$3 billion (100%); 900 MMcf/d Joint development with Eversource and National Grid Project Need: New England electric power market continues to become more gas dependent Natural gas generation has increased from 15% to 50% market share since 2000 Likely to rise further with Brayton Point, Pilgrim retirements, new gas-fired facilities coming on line Additional natural gas infrastructure is needed to serve growing gas generation Access Northeast is best positioned to meet growing natural gas demand needs in New England A solution for New England must be found 2016 Fall Customer Meeting 55

Northeast Texas Eastern Expansions Continued opportunities on Texas Eastern to link supply to growing Northeast markets MARCELLUS PennEast PA MD NY

56 Northeast Texas Eastern Expansions Continued opportunities on Texas Eastern to link supply to growing Northeast markets MARCELLUS PennEast PA MD NY Marcellus to Market NJ Greater Philadelphia Expansion Bayway Lateral Bayway Lateral 300/d lateral expansion to serve Bayway Refinery & Linden Cogen in execution PennEast 1.1 Bcf/d in execution Marcellus to Market Texas Eastern expansion up to 200/d from Lambertville in development Greater Philadelphia Expansion Project incremental lateral capacity to serve growing power, industrial and LDC market in development 2016 Fall Customer Meeting 56

NEXUS & TEAL MI Dawn Hub Parkway TORONTO ON QC U.S. Northeast NY Connecting Marcellus and Utica supplies to LDCs, power generators and industrials in Ohio, Michigan, Chicago and Ontario Project Scope: NEXUS: 1.

Gas, Texas Eastern NEXUS DETROIT OH TEAL MARCELLUS / UTICA SUPPLY Texas Eastern PA Pipeline Interconnects: DTE Gas, Vector, ANR, PEPL, Great Lakes Transmission, Union Gas Project Status: Filed

57 NEXUS & TEAL MI Dawn Hub Parkway TORONTO ON QC U.S. Northeast NY Connecting Marcellus and Utica supplies to LDCs, power generators and industrials in Ohio, Michigan, Chicago and Ontario Project Scope: NEXUS: 1.5 Bcf/d design capacity, ~255 miles, 36 pipeline TEAL: 950 MMcf/d expansion of Texas Eastern and reversal of OPEN line to deliver into NEXUS Supply Sources: Kensington Processing Plant, Tennessee Gas, Texas Eastern NEXUS DETROIT OH TEAL MARCELLUS / UTICA SUPPLY Texas Eastern PA Pipeline Interconnects: DTE Gas, Vector, ANR, PEPL, Great Lakes Transmission, Union Gas Project Status: Filed FERC application Nov OEB approval of Union Gas and Enbridge agreements Received favorable DEIS from FERC in July 2016 On target for in-service 2H Fall Customer Meeting 57

58 Access South, Adair Southwest & Lebanon Extension Projects Lebanon Extension Lebanon Uniontown Adair Southwest Delivering Appalachian shale supply to markets in the Midwest and Southeast Kosciusko Access South Adair Co. KY Combined projects scope: Capacity: 622,000 MMcf/d CapEx: $450MM Timeline: Filed FERC Application Oct 2015 Expect FERC certificate 2H16 In-service 2H Fall Customer Meeting 58

Transporting Texas Eastern M1, East Texas and South Texas gas to Freeport LNG s Stratton Ridge storage facility Expect 1H17 FERC filing

59 Gulf Markets Expansion & Stratton Ridge UTICA MARCELLUS Expanding Texas Eastern to serve Gulf Coast LNG markets M2 Gulf Markets: Under construction Phase 1: target in service Oct 2016 Phase 2: target in service 3Q17 Stratton Ridge M1 Gulf Markets Stratton Ridge: Transporting Texas Eastern M1, East Texas and South Texas gas to Freeport LNG s Stratton Ridge storage facility Expect 1H17 FERC filing Targeting 1H19 in-service Project Volume (MMcf/d) Target In- Service Gulf Markets /17 Stratton Ridge 322 1H Fall Customer Meeting 59

Valley Crossing Pipeline & Texas Eastern STEP New

supply to meet Mexico s growing electric generation

Texas Expansion Project STEP Project: Texas Eastern

Target: 4Q16 Expect FERC Certificate: 4Q17 In-Service:

60 Valley Crossing Pipeline & Texas Eastern STEP New intrastate pipeline to export reliable natural gas supply to meet Mexico s growing electric generation needs TEXAS EASTERN Nueces Brownsville VIDOR South Texas Expansion Project STEP Project: Texas Eastern mainline reversal Capacity: 400 MMcf/d FERC Filing Target: 4Q16 Expect FERC Certificate: 4Q17 In-Service: 4Q18 Valley Crossing Project Scope: Capacity: 2.6 Bcf/d CapEx: $1.5B Project Status: Project awarded June 2016 Commence construction 1H17 In-service 4Q Fall Customer Meeting 60

Sabal Trail & Loudon Loudon Sabal Trail Serving Southeast power generation growth

natural gas In service Sept 2016 Sabal Trail: 515-mile greenfield pipeline to

Duke Energy Under construction Phase I in-service 1H17 Project Volume (MMcf/d)

61 Sabal Trail & Loudon Loudon Sabal Trail Serving Southeast power generation growth Loudon: East Tennessee expansion to serve a power plant conversion from coal to natural gas In service Sept 2016 Sabal Trail: 515-mile greenfield pipeline to provide incremental supply to FPL and Duke Energy Joint venture with NextEra and Duke Energy Under construction Phase I in-service 1H17 Project Volume (MMcf/d) Target In-Service Loudon 40 Sept 16 Sabal Trail 1,075 1H Fall Customer Meeting 61

Association of Energy Engineers January 9, Michael Dirrane Director, Northeast Marketing

Association of Energy Engineers January 9, 2013 Michael Dirrane Director, Northeast Marketing Spectra Energy U.S. Transmission Map Miles of Pipe 13,297 Number of Compressor Stations 129 Total Horsepower