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Tennessee Gas Pipeline

2016 Fall Operations Update Webex October 25, 2016

Agenda

Sherri Glazebrook Director, Trans and Storage Svc, TGP & SNG, KMI East Region

Brian Merchant

Director, Engineering Gas Control, KMI East Region

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

• Welcome • TGP System Overview • Winter Look Back (’15/’16) • Summer Look Back (‘16) • Scheduled Maintenance Remaining • Scheduling Update

TGP System Overview

Marcellus Shale

Utica Shale

Southeast

Northeast

EagleFord Shale

Haynesville Shale

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Tennessee Gas Pipeline

Proudly providing reliable service for over 70 years

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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Changing TGP Operations

300 Line

100 Line 500 Line

800 Line

200 Line

•Designed to deliver TX/LA supply to Northeast markets •High utilization of 100/800/500 lines, high seasonal utilization of 200 and 300 lines •Consistent imports on the Niagara Spur

300 Line

500 Line 100 Line

500 Line

200 Line

300 Line

2007 2016

800 Line

• Shale Supply: Marcellus via 300 Line ~3.2 Bcf/d, Marcellus via Broad Run ~400k, and Utica via 200 Line ~1.3 Bcf/d •Serving Markets across system; LDC’s, Power Plants, Pipeline Interconnects. •System Flows have reversed on much of the System:

•317 -> 219 ->100/500/800 lines

•High System Utilization Year Round •Consistent exports on Niagara Spur

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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

• Projects Placed In-Service(11/1/15): – Horsepower Replacement at Compressor Station 245 – Broad Run Flex Project (~590K/d Capacity) – Niagara Expansion Project (~158K/d Capacity)

• 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 –21 Total OFO’s in 2015/16 vs 16 Total OFO’s in 2014/15

– 2015/2016 Zones 5 & 6 - 15 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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New England Weather

200

400

600

800

1000

1200

1400

Nov Dec Jan Feb Mar

HD

Ds

Winter 2015/16

Winter 2014/15

Winter 2013/14

Winter 2012/13

30 Year Average

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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

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 – 21 Total OFO’s in 2016 vs 15 Total OFO’s in 2015 – 2016 Zones 5 & 6 - 6 vs 8 in 2015

4 OFO’s were directed at power plants 2015; 3 in 2016 2016 All other zones - 15 through 10-21-16; vs 7 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

15

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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Remaining Scheduled Maintenance

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EBB Website

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Impact Report – Next Week Outages

Segment

Design Capacity

Available Capacity & Amount reduced by

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Impact Report – Monthly Report

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Zone 0 & L – November/December

Pipe Replacement/ Pipe Painting (M) MLV 821-1 (8/29/2016 – 11/5/2016)

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Zone 1 – November/December

ILI/ Cleaning Pig MLV 538-1 to 542-1 (11/2/2016, 11/7/2016 &

11/9/2016)

ESD Test Sta. 87 (11/16/2016)

Capacity of 2,363k reduced to 1,800k (seg. 187 BH)

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Zone 2 & 3 – November/December

Hydrotest MLV 96-2 to MLV 102-2 (6/8/2016 –11/5/2016)

Capacity of 2,363k reduced to 2,100k (seg. 187 BH)

ILI/Cleaning Pig MLV 200-1S to MLV 106-3 (11/9/2016)

Capacity of 2,363k reduced to 1,850k (seg. 187 BH)

Unit Maintenance Sta.96-2D (10/24/2016 –11/7/2016)

Capacity of 2,363k reduced to 2,100k (seg. 187 BH)

ILI/Cleaning Pig MLV 121-2A to MLV 114-3 1 Day TBD (10/31/2016 –

11/8/2016) Capacity of 714k reduced to 350k (seg. 114 BH)

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Zone 4 – November/December

Station Outage Sta. 204 (11/15/2016 – 11/18/2016)

Capacity of 1,846 reduced to 1,420 (seg. 204 BH)

Foundation Repair Sta. 204-7A (10/10/2016 – 12/2/2016)

Capacity of 1,846 reduced to 1,820 (seg. 204 BH)

Station Outage Sta. 317 (12/10/2016 – 12/12/2016)

Capacity of 1,774 reduced to 1,700 (seg. 315 BH)

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WINTER READINESS

Winter Readiness - Operations

• Scheduled Maintenance – All routine compressor station maintenance shall be completed by early November.

Examples include: • Station/Unit Protective Devices

• Compressor maintenance

• Boroscope Inspections

• Device Calibration/Testing

• Test run units (as applicable)

– All routine pipeline and meter station maintenance 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

Winter Days % Restricted Nov - Mar

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Winter Overview – Storage Percent Full

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OFO Winter Count Nov - Mar

OFO Types 2013/14 2014/15 2015/16

Monthly 0 0 6

Action 5 3 3

CD1 9 6 10

CD2 0 0 0

Balancing 3 7 2

Hourly 0 0 0

Total 17 16 21

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

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

Summer Days % Restricted Apr - Oct

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Summer Overview – Storage Percent Full

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OFO Summer Count Apr – Oct*

OFO Types 2014 2015 2016

Monthly 0 6 9

Action 3 2 7

CD1 5 1 3

CD2 0 0 0

Balancing 1 6 2

Hourly 0 0 0

Total 9 15 21

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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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Questions?