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Tennessee Gas Pipeline

Enfield Customer Meeting October 19, 2016

Agenda

Brian Merchant Director, Engineering Gas Control, KMI East Region

Ron Besette

Director, OPS, Division 10 Office, KMI East Region

Don Perkins Manager, OPS, Agawam STA 261, KMI East Region

Cathy Soape Hutton Manager, Trans and Storage Svc, KMI East Region

TGP Gas Control Organizational Structure TGP System Overview Winter Look Back (‘15/16) Summer Preview (‘16) Operations Overview Winter Readiness Scheduled Maintenance Scheduling Update

TGP Gas Control Organizational Structure

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GAS CONTROL ORGANIZATIONAL STRUCTURE

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TGP CONTROL ORGANIZATIONAL STRUCTURE

TGP System Overview

Marcellus Shale

Utica Shale

Southeast

Northeast

EagleFord Shale

Haynesville Shale

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Tennessee Gas Pipeline

11,900 miles of pipeline 96 Bcf of storage capacity ~9.6 Bcf/d – design capacity Abundant & Growing Supply

System Overview

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System Flows – 2016

800 Line

500 Line

200 Line

300 Line

100 Line

200 Line

Long Haul to the south

Sta 87

Marcellus ~3.5 Bcf/d Utica ~1.3 Bcf/d ~1.9-2.0 Bcf/d South flow at Sta 87 Consistent exports to Mexico and Canada High system utilization

TGP Operations

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TGP Increasing Annual Deliveries

*YTD through September

MD

th/d

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2013 2014 2015 2016 YTD

Zone 6

Zone 5

Zone 4

Zone 3

Zone 2

Zone 1

Zone L

Zone 0

+6%

+12%

+1%

Winter Look Back Summary

• Peak Day was ~10.3 Bcfd on Jan 19, 2016 - Deliveries

• Peak Day was ~1.3 Bcfd on Jan 22, 2016 – Storage (withdrawal)

• Peak Day was ~1.9 Bcfd on Feb 9, 2016 – Power Plant Load

• Winter OFO count

– 2015/2016 Zones 5 & 6 - 21 vs 11 in 2014/2015

8 OFO’s were directed at power plants (Dec/Jan) vs 5 in 2014/15

– 2015/2016 All other zones - 6 vs 5 in 2014/2015

• Storage Inventories remained at high levels

– 29% higher than the levels for 2014/15 and 45% higher than 2013/14.

• System Challenges

– Short Term Unit/Pipeline Issues

• Continuous communication between Commercial, Scheduling and Gas Control Groups

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Winter Summary - System Deliveries

2013-2014 2014-2015 2015-2016 % Change

LDC 2,046 2,087 1,657 -21%

Power 1,096 1,258 1,375 +9%

Interconnects 4,841 5,014 5,397 +8%

Other* 209 239 366 +53%

TOTAL 8,192 8,598 8,795 +2%

Volumes are MDth/d

*Other includes fuel, storage and industrial

0

200

400

600

800

1,000

1,200

1,400

1,600

2012-2013 2013-2014 2014-2015 2015-2016

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

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Winter Total System Power Deliveries

+14%

-2%

+9%

MD

th/d

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Winter Northeast Market Deliveries

2013-2014 2014-2015 2015-2016 % Change

LDC 1,467 1,511 1,180 -22%

Power 274 315 327 +4%

Interconnects 1,316 1361 1,485 +9%

TOTAL 3,057 3,187 2,992 -6%

Volumes are MDth/d

0

1,000

2,000

3,000

4,000

5,000

6,000

2012-2013 2013-2014 2014-2015 2015-2016

Wright

Utica

Shelton

Rex

Marcellus

Distrigas

Dracut

Broad Run

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Winter North Supply Analysis

Winter Period (Nov-Mar) Average MDth/d

+41%

+17%

+16%

MD

th/d

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Segment 245 Scheduled Volumes

Winter Period (Nov-Mar)

MD

th/d

0

200

400

600

800

1,000

1,200

11/1/2015 12/1/2015 1/1/2016 2/1/2016 3/1/2016 4/1/2016

Timely Cycle Capacity

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Segment 321 Scheduled Volumes

Winter Period (Nov-Mar)

MD

th/d

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

11/1/2015 12/1/2015 1/1/2016 2/1/2016 3/1/2016 4/1/2016

Timely Cycle Capacity

Summer Look back Summary

• System Demand relatively flat to previous year – Power Loads Increased / LDC Loads Decreased

• Northeast Market Demand experienced slight increase – Increase in Pipeline Interconnect deliveries

• Summer OFO count – 2016 Zones 5 & 6 - 6 vs 8 in 2015

4 OFO’s were directed at power plants 2015; 0 in 2016 in Zones 5 & 6 – 2016 All other zones - 15 through 10-14-16; vs 16 in 2015

• Storage Inventories remained at high levels for 2016

– 49% higher going into summer compared to 2015 – 58% higher going into summer compared to 2014

• System Challenges

– Maintenance – High Storage Inventory in Northern Storage Fields

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Summer Summary - System Deliveries

2014 2015 2016* % Change

LDC 874 925 844 -9%

Power 1,296 1,584 1,823 +15%

Interconnects 4,445 4,680 4,719 +1%

Other** 496 443 200 -55%

TOTAL 7,110 7,632 7,586 -1%

Volumes are MDth/d * Through September

**Other includes fuel, storage and industrial

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2014 2015 2016*

Zone 6

Zone 5

Zone 4

Zone 2

Zone 1

Zone 0

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Summer Total System Power Deliveries

+22%

+15%

MD

th/d

* Through September

Power Generation Peak Days

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Summer Northeast Market Deliveries

2014 2015 2016* % Change

LDC 573 578 529 -8%

Power 491 503 474 -6%

Interconnects 1,249 1,245 1,458 +17%

TOTAL 2,313 2,326 2,462 6%

Volumes are MDth/d * Through September

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Summer North Supply Analysis

Summer Period (Apr-Oct) Average MDth/d

+41%

+17%

+16%

MD

th/d

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2013 2014 2015 2016*

Cobb

Cornwell

Distrigas

Dracut

Marcellus

Rex

Shelton

Utica

Wright

* Through September

+55%

+14%

+13%

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Segment 245 Scheduled Volumes

Summer Period (Apr-Oct)

MD

th/d

0

200

400

600

800

1,000

1,200

4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016

Timely Cycle Capacity

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Segment 321 Scheduled Volumes

Summer (Apr-Oct)

MD

th/d

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/2016 10/1/2016

Timely Cycle Capacity

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OPERATIONS OVERVIEW

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Division 10 Map

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New England Area Map

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OPERATIONS ORGANIZATIONAL STRUCTURE

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OPERATIONS ORGANIZATIONAL STRUCTURE

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Hamburg Area Projects - 2016

Station 237 Unit Automation Upgrades – July

Station/Building Protection System Upgrade – June Turbo Replacement (Unit 237-3A) - June

Station 229 Foundation Replacement (Unit 229-3A) – Complete by Oct 31

Turbocharger Replacement (Unit 229-5A) – April

Station 230C New Dehydration Facility Niagara Spur –

Completed June 2015 Turbine Exchange (Unit 230C-1A) – May

Installation of NEW Launcher/Receiver at Niagara River Crossing –Oct 2015

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Nassau Area Projects - 2016

Station 241 Engine Overhaul (Unit 241-2B) – Aug

Turbo Replacement (Unit 241-3A) - Sept Automation Upgrade – Oct

Station 245 HP Replacement (Solar Taurus 70) – Nov 2015

Turbocharger Replacement – Aug

Station 249 Engine Overhaul (Unit 249-2B) – Sep

Station 325 Turbine Overhaul – Sep

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Coudersport Area Projects - 2016

Station 317 Replacement/Upgrade VFD & Substation

for Electric Compression – Aug

Station 323 Repair/Upgrade Standby Generator – Sep

Inspection/Repair of Motor Shaft/Compressor Seal Repair – by October 31st

Station 315 Turbine Inspection/Repair (Unit 315-2A) – Sep

Turbine Inspection (Unit 315-1A) - Sep

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New England Area Projects - 2016

Station 267 Replace ESD Stand – Complete by 10/31

Unit block valve installations – Completed Oct

Westfield SMS Replace Regulators – June

Station 261 Fuel System/Controls Upgrade (Unit 261-1C) – Oct

Block Valve Installation (Unit 261-1C) – Sep Replace Station UPS – Oct 25-27

Replace Air Dryer – Aug

Station 264 Replace Station UPS - May

Station 265E Replace Station UPS – Nov 5-11 Cooler Bypass Repair – Nov 5-11

Station 260A Compressor Inspection – Sep

Motor/VFD Inspection – Oct 17-21

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New England Area Projects – 2016 (Con’t)

Pipeline lowering - 270B-100 (Suncook, NH) – Oct 6 - 21

Repair Exposed Pipe 200-1 Tolland, MA – Oct 24-Nov 4 (NO OUTAGE)

Station 264 Replace Station UPS - May

Filter Separator Maintenance Station 266, 267 &

Blackstone SMS

Waterway Inspection Farmington River - June

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New England Area Projects – 2016 (Con’t)

ROW Projects • Completed Marker Program • Mowing – 168 miles completed by 12/31 • Side trim Program – 30 miles completed by 12/31

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In-Line Inspections/Direct Assessments – Completed 2016

Direct Assessments 254-1 to 256-2 (2 digs)

Station 261 (1 dig) 264A-100 (4 digs) 265E-200 (3 digs) 339A-100 (4 digs) 340A-100 (4 digs) 345A-100 (4 digs)

In-Line Inspections 321-1 to 325-1 319-1 to 317-1 317-1 to 313-1

Maintenance Pig Runs 310-1 to 325-1 310-2 to 325-2

In-Line Inspections 254-1 to 261-1 261-2 to 267-2

Direct Assessment 241-1 (1 dig)

Direct Assessments MLV 329 (2 Digs)

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In-Line Inspections/Direct Assessments – Completed 2016

In-Line Inspection White Plains Delivery 334A-100

In-Line Inspections 12” Worcester Delivery

Gloucester Delivery 12” Haverhill Lateral

12” Bev Salem Lateral 12” Concord Lateral

12” Northampton Lateral 8” Northampton Lateral

10/12” Haverhill Lateral – Complete 8/12” Bev Salem Lateral

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WINTER READINESS

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Winter Readiness - Operations

• Scheduled Maintenance – All routine compressor station maintenance in the Market Area shall be completed by

early November. Examples include: • Station/Unit Protective Devices

• Compressor maintenance

• Borescope Inspections

• Device Calibration/Testing

• Test run units (as applicable)

– All routine pipeline and meter station maintenance in the Market Area shall be completed by early November. Examples include:

• Annual Valve Maintenance

• Auto Closure Checks

• Boiler Maintenance

• Device Calibration/Meter Tests (Ongoing)

• Winter Event Preparation – Check/Test run emergency equipment (i.e. generators, heaters, etc)

– Field Operations will be on site at key compressor stations during significant winter events.

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SCHEDULING

DSRs

TRANSPORTATION SERVICES ORGANIZATIONAL STRUCTURE

DSRs

Winter Days % Restricted Nov - Mar

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Winter Overview – Storage Percent Full

Summer Days % Restricted Apr - Oct

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Summer Overview – Storage Percent Full

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Possible Scheduling Processes Implemented during Winter

• No delivery nominations allowed at Receipt Meters • No receipt nominations allowed at Delivery Meters • No meter bounces allowed at Power Plants • Meters held to EPSQ • Restriction locations adjusted as capacity utilization

changes • Limitations of Storage Services/Linepack Services • Imbalance Warnings • Monthly OFOs • Daily OFOs • Meter Specific OFOs • Hourly OFOs

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Operational Flow Orders

CURRENT TGP SEGMENT MAP NORTH OF STA 87

TGP SEGMENT MAP WITH NEW SEGMENTS EFF 11-1-16

Segment 110 Segment 111 Segment 112 420079 Col Gas/TGP Greenup 420290 OLIVHILL/Olive KY 420045 Col Gas/Mavity 420865 Pool 100 L Z2 421010 LVILBrik/Grahn Brickyard 420762 MPC/UDP Naples 421053 Grayson/Grayson KY 412742 BigSandy/Glancy 420924 Riverside/Lawrence

Segment 345 Segment 355 412180 IROQUOIS/Shelton 420425 CONNNG/Milford CT 420127 YANK/Derby CT 420128 YANK/Wallingford CT 420129 CONN/New Britain CT 420487 CONN/Farmington CT 420205 CONNNG/Bloomfield CT 420453 CONNNG/N Bloomfield CT 420637 YANK/East Granby 420872 Pool 300 L Z6

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APPENDIX

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DISTRIGAS SCHEDULED FLOWS 2013/14 vs 2014/15 vs 2015/16 (DTH)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

NOV DEC JAN FEB MAR

2013/14 2014/15 2015/16

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MARITIMES DRACUT SCHEDULED FLOWS 2013/14 vs 2014/15 vs 2015/16 (DTH)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

NOV DEC JAN FEB MAR

2013/14 2014/15 2015/16