Transco Spring Update...Transco Station 515, Leidy Southeast Project in PA Photo by Williams employee, Peter Poarch, Engineer Fall Update 2017 Transco Transportation Services Fall

Transco Station 515, Leidy Southeast Project in PA

Photo by Williams employee, Peter Poarch, Engineer

Fall Update 2017Transco Transportation Services Fall

2 © 2017 The Williams Companies, Inc. All rights reserved.Summer Update 2017

> The reports, filings, and other public announcements of The Williams Companies, Inc. (Williams) and Williams Partners L.P. (WPZ) may contain or incorporate by reference statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this document that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, as forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “assumes,” “gu idance,” “outlook,” “in service date” or other similar expressions. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding:

– Expected levels of cash distributions by WPZ with respect to general partner interests, incentive distribution rights and limited partner interests;

– Levels of dividends to Williams stockholders;

– Future credit ratings of Williams, WPZ and their affiliates;

– Amounts and nature of future capital expenditures;

– Expansion of our business and operations;

– Financial condition and liquidity;

– Business strategy;

– Cash flow from operations or results of operations;

– Seasonality of certain business components;

– Natural gas, natural gas liquids, and olefins prices, supply, and demand; and

– Demand for our services.

> Forward-looking statements are based on numerous assumptions, uncertainties and risks that could cause future events or results to be materially different from those stated or implied in this document. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

– Whether WPZ will produce sufficient cash flows to provide the level of cash distributions, including incentive distribution rights, that we expect;

– Whether Williams is able to pay current and expected levels of dividends;

– Whether we will be able to effectively execute our financing plan including WPZ’s establishment of a distribution reinvestment plan (DRIP) and the receipt of anticipated levels of proceeds from planned asset sales;

– Availability of supplies, including lower than anticipated volumes from third parties served by our midstream business, and market demand;

– Volatility of pricing including the effect of lower than anticipated energy commodity prices and margins;

– Inflation, interest rates, fluctuation in foreign exchange rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on customers and suppliers);

– The strength and financial resources of our competitors and the effects of competition;

– Whether we are able to successfully identify, evaluate and timely execute our capital projects and other investment opportunities in accordance with our forecasted capital expenditures budget;

– Our ability to successfully expand our facilities and operations;

– Development of alternative energy sources;

– Availability of adequate insurance coverage and the impact of operational and developmental hazards and unforeseen interruptions;

Forward Looking Statements


– The impact of existing and future laws, regulations, the regulatory environment, environmental liabilities, and litigation, as well as our ability to obtain permits and achieve favorable rate proceeding outcomes;

– Williams’ costs and funding obligations for defined benefit pension plans and other postretirement benefit plans;

– WPZ’s allocated costs for defined benefit pension plans and other postretirements benefit plans sponsored by its affiliates;

– Changes in maintenance and construction costs;

– Changes in the current geopolitical situation;

– Our exposure to the credit risk of our customers and counterparties;

– Risks related to financing, including restrictions stemming from debt agreements, future changes in credit ratings as determined by nationally-recognized credit rating agencies and the availability and cost of capital;

– The amount of cash distributions from and capital requirements of our investments and joint ventures in which we participate;

– Risks associated with weather and natural phenomena, including climate conditions and physical damage to our facilities;

– Acts of terrorism, including cybersecurity threats and related disruptions; and

– Additional risks described in our filings with the Securities and Exchange Commission (SEC).

> Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

> In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this document. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

> Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in Williams’ and WPZ’s Annual Reports on Form 10-K filed with the SEC on February 22, 2017 and in Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q available from our offices or from our website at www.williams.com.

Forward Looking Statements (cont’d)

http://www.williams.com/


Transportation Services/1Line Org Chart

Gary Duvall

VP Comm Eastern Interstates

Melissa Casey

Director

Transportation Services/1Line

Mike DiCarlo

Manager – 1Line

Mark Scott (Lead), Russell Rush, Bob Symmank, Henry

Tran, Doug Vorwerk, Eva Zubel, Bill Sansom, Tiffany

Wagner

Linette Schneider

Manager – Transportation Services South

(Texas north to Georgia)

Martha Janousek (Lead), Amy Dearman, Antauis Byrd,

Casilda Vasquez, Charles Taylor, Diama Cortez, Liz

Silvas, Jenni LaBeth, Michelle Nguyen, Phaedra Dinkins, Stacey Woolcock

Jamie Johnson

Manager – Transportation Services North

(South Carolina north to New York)

Julian Arias (Lead), BianiaCalderon, Caitlin Harris, Hien Duong, Jennifer Rowan, Judy Hall, Karina Mayorga, Louella

Mott, Margaret Kleiner, Esther Ramos, Robbie Reyes, Terri Bowman

Diane Ezernack

Sharon Larsen

Transportation Services Leads


Regulatory Matters


Assumes August 31, 2018 Filing Date

Rate Case TimelineTransco Base and Test Periods

2017 2018 2019

J J A S O N D J F M A M J J A S O N D J F M A M

Base Period

Jun. – May

Filing Date

Aug. 31, 2018

Test Period

Jun. – Feb.

Effective Date

Mar. 1, 2019

Filing Date: August 31, 2018

Base Period: June 1, 2017 – May 31, 2018

Test Period: June 1, 2018 – February 28, 2019

Effective Date: March 1, 2019


> Transco posted a draft Tariff filing, presentation video explaining the filing, and answers to frequently asked questions on the Informational Postings page

– Filing, presentation & video posted on 2/16/17; FAQs posted 4/13/17

– Links: Draft Tariff filing, presentation and video

> Webinars held in March 2017

> Customer visits conducted March through June 2017

> To be filed: Fall 2017

> Implementation is planned for no earlier than April 1, 2018

> Highlights of Draft Tariff Filing

– Establishing High Burn Limit Values (HBLV) at a point (no path)

– Clarification of traditional and non-traditional rights

– Defining priorities specifically for HBLVs

– Establishing ability to allocate HBLVs by location or segment

– Eliminating overlapping HBLVs at a nominatable point

– Establishing ability to allocate capacity at a TSB by segment (nominations)

Priority of Service - Proposed Tariff Filing

http://www.1line.williams.com/Transco/info-postings/regulatory/tariff-filings/ProposedDrafts/NewPriorityOfService.pdf

http://www.1line.williams.com/Transco/files/POSWebinarPresentation.pdf

http://www.1line.williams.com/Transco/files/training/WebinarVideoPriorityofService.wmv


> Transco filed tariff records with FERC on 3/24/17 to clarify Transco’s business practice when the 1Line system is unavailable and unable to process nominations.

> Prior to a final FERC acceptance, Transco received feedback and interventions from a number of customers and therefore we withdrew the filing on 4/10/17 to solicit further information from customers.

– Concerns included:

• Absence of force majeure language

• Inability to submit written nominations if Shipper’s system went down

> Transco values its customer feedback and after obtaining additional information, has posted a draft of the revised language to Transco’s Info Postings Page.

– Feedback is requested by the end of October 2017

Failure of Electronic Equipment - Proposed Tariff Filing


> What is an outage?

– A 1Line outage is a period of time in which the system is unavailable to both internal Williams employees and to our shippers and operators.

> Minimizing down time for unplanned outages of 1Line

– After the extended 1Line outage in July 2014, Transco has further enhanced their disaster recovery efforts since 2014 by proving that 1Line could be operated remotely and return to its home servers

– The 1Line system is able to convert to backup servers located in an alternate site from the location of the daily production servers.

– If 1Line had a major disruption of service, we are able to move to the disaster recovery site within four-six hours and run 1Line from that site until the production environment is repaired and tested.

– For a full week in mid-May, 2015 and mid-April, 2017, the 1Line system operated from our disaster recovery alternate location.

– Transco’s shippers and operators experienced zero incidents associated with the change and both of these tests proved to Transco that we have a prudent disaster recovery plan in place should 1Line experience a major unplanned outage.



> Why can’t Transco handle written nominations during or after a 1Line outage?

– The 1Line system processes ~12,000+ nominations and PDAs daily with a large number of those transactions being transmitted via EDI or X-12.

> What if there are other issues accessing 1Line?

– If 1Line is not available to Williams employees, but is available to shippers and operators, we will keep 1Line running for our shippers and operators and extend nomination deadlines as described in GT&C section 28.1(a).

– If our shippers or operators are unable to connect to 1Line and 1Line is NOT having an outage, Transco will continue to accept requests from our shippers as proposed in Transco’s GT&C Section 28.1(a) of our tariff:

• “In the event Buyer experiences a failure of electronic communication equipment, Internet, or third party service provider, or other similar emergency event which constitutes an event of force majeure pursuant to Section 11.1 of the General Terms and Conditions, Seller shall handle requests from Buyer for emergency treatment, including written nominations, on a not unduly discriminatory basis.”



> What Transco can do after a 1Line outage is complete

– Transco will post that 1Line has returned to service.

– Transco will notify shippers and operators what data was recovered and what processes were completed.

– Transco may accept POST* and RETRO* cycles changes to accommodate those times when a cycle or cycles have been missed due to a system outage.

• Transco also offers shippers rolling nominations and the ability to submit multi-date ranged nominations.

• Operators have features such as subsequent cycle indicator, rolling confirmations and auto confirmation.

• All of these items are designed to help ensure customers have ample opportunity to accurately reflect their business transactions.

* Acceptance of nomination changes are subject to cycle deadlines as described in Transco’s GT&C section 28



> Current Tariff - language resides in Section 28.1 (a) (vii)

…..All nominations for storage or transportation service must be made electronically through 1Line or by electronic data interchange. However, in the event of a failure of electronic nomination communication equipment, internet, or third party service provider, or other similar emergency event which constitutes an event of force majeure pursuant to Section 11.1 of the General Terms and Conditions, Buyer may submit and Seller will accept written nominations, provided that such force majeure events are documented by an affidavit provided by Buyer to Seller within 24 hours of such event. Any such requests by Buyer for emergency treatment shall be handled on a not unduly discriminatory basis.

> Proposed Tariff – language

… All nominations for storage or transportation service must be made electronically through 1Line or by electronic data interchange. However, in the event Seller experiences a failure of electronic communication equipment, internet, or third party service provider, or other similar emergency event which constitutes an event of force majeure pursuant to Section 11.1 of the General Terms and Conditions, such that Seller’s communication capability is not available, Seller shall (i) for missed nomination cycles within the Gas Day, use Buyer’s last confirmed nomination(s) at the time of the event, or (ii) when no confirmed quantities for the Gas Day exist, use Buyer’s last nomination(s) accepted by Seller for the missed nomination cycle(s).

In the event Buyer experiences a failure of electronic communication equipment, internet, or third party service provider, or other similar emergency event which constitutes an event of force majeure pursuant to Section 11.1 of the General Terms and Conditions, Seller shall handle requests from Buyer for emergency treatment, including written nominations, on a not unduly discriminatory basis.



Gas/Electric Reliability

> Gas/Electric Coordination INGAA– Transco provided responses to INGAA on natural gas disruptions, outages and

damage during the period of 2005-2015. They were particularly interested in days in which reservation charge credits were given.

• For Transco, there were instances of reservation charge credits on 23 days, all due to planned outages.

– INGAA is working with a DOE staffer to produce a report on the reliability assessment portion of Secretary Perry’s 60-day baseload reliability report. The DOE Staffer drafting the insert has told INGAA that the thesis section will be that “natural gas delivery is reliable.”

• The DOE staff has found that incidents affecting natural gas transmission and storage service are relatively infrequent with about 12 outages per year. Of these 12, the average outage rarely rises to a major disruption.

– While this is promising, INGAA is still concerned that the gas reliability assessment does not provide any capacity perspective, so there is no way for future readers to determine the significance of any single outage; and there is no way of knowing what the lead drafter of the entire report and the political appointees within DOE may change in staff’s draft report.

> NAESB– NAESB may publish version 3.1 this fall.


Operations


SUD and Constraint Changes

> New Constraint at Station 160 effective 6/1/17– Constraint at Station 160 (MP 1369.44) monitors and limits as required, non-primary

firm transportation capacity including NSRP, secondary FT and IT, scheduled from North to South through this location.

> Extension of Mainline SUD effective 6/1/17– SUD expanded further South from TGT Rivervale interconnect to Station 160 in

Rockingham County, North Carolina.

> Potential SUD extension further south due to project scopes:– Virginia Southside II – Station 140 to Mainline Valve 140-10 (including the Tryon

Lateral)

– Atlantic Sunrise – Mainline Valve 140-10 to Station 160


Mainline SUD

Future extension

of SUD

Extension of

SUD 6/1/17


Future OIA Evaluations

> OIA evaluation process – As defined by the North American Energy Standards Board (“NAESB”) and as adopted

by the Commission, an OIA is the largest possible area on a pipeline system in which imbalances have a similar operational effect.

– Following the in service of:

• Virginia Southside II and Atlantic Sunrise expansion projects, Transco will evaluate imbalance activity to determine if adjustments to existing, or additional OIAs may be required to the current OIA 2, OIA 3, or OIA 4.

• The Gulf Connector project, similar evaluation of imbalance activity will be done for possible adjustments or additional OIAs that may be required in the current OIA 1.

– Changes to the OIAs will require a tariff change to GT&C Section 2 Definitions and Part II – Statement of Rates and Fuel Section 10.2 Trading Fees and Fuel Retention Percentages. The filing would be made 30 days in advance of the changes.


Future OIA Evaluations

Existing OIAs

OIA 1 – Transco’s system in its entirety south and west of station 90

OIA 2 – Station 90 and Transco’s system north and east of station 90 up to end of Zone 5

OIA 3 – Zone 6 with the exception of Station 505 and the Leidy line system west of Station 505

OIA 4 – Station 505 and the Leidy line system in its entirety west of Station 505


Fuel Assessment

> Zones 5 and 6– Transco began assessing fuel on reverse flow transactions in Zones 5 and 6 effective

April 1, 2017, as Transco has experienced the need to run compression to effectuate flows from North to South.

> Zones 1-4– Transco will continue to evaluate gas compression in Zones 1 – 4 to determine whether

it is being used to effectuate North to South flow in those zones.

> Transco’s tariff will be modified in future fuel tracker filings to reflect collection of fuel in those zones that are determined to be bi-directional.

> Transco will make every effort to communicate the timing of future changes in fuel assessment due to changes in the directionality of flow on its system.


Active Confirmations & Location Specific OFO’s

> Imbalances on the system cause operational issues. Transco currently utilizes Zone Specific OFOs to manage imbalances when those issues arise.

> Transco plans to start using additional tools currently existing in the tariff to target locations that are causing imbalance issues. – Under-burns – Due To Shipper – Long

• Active Confirmations

– In accordance with GT&C 28.9

• DT Location OFO

– In accordance with GT&C 52

– Over-burns – Due From Shipper – Short

• DF Location OFO

– In accordance with GT&C 52


Maintenance Notifications

> Transco is improving communications during maintenance to help identify impacted areas/locations by:– Posting reminder notices in timely manner

– Providing detailed information on locations or meters impacted, including milepost information

– Making dates clearer when impacted area will be down.

> The yearly schedule can be found at www.1Line.Williams.com

http://www.1line.williams.com/


1Line Changes


1Line Changes

> Retro Balances– Effective June 15, 2017, 1Line began updating shipper imbalance information with the

previous gas day allocation processing or retro processing.

– Balances will be updated after the following allocation updates are completed:

• 8 am Retro Processing

• 11 am Previous Gas Day Allocation Processing/Mid-Day Retro Processing

• 3 pm Retro Processing

• 10:15 pm Retro Processing

– All Balance related pages and Reports will reflect the updated imbalance information throughout the day except invoice packets

> New Chromatographs and Odorant locations on the portal– 24 new locations have been added to the Chromatographs page under Gas Quality on

Transco’s Info Postings Page.

> ASQ + Fuel and Makeup Changes– Effective September 21, 2017, Firm Transportation receipts will only be allocated to the

available scheduled quantity plus fuel including receipt make up transactions (TT4 –Imbalance Payback to TSP). Erroneous programming allowed firm receipt allocations to exceed contract entitlements.

– Effective November 1, 2017, due to the same programming errors, some delivery make up transactions (TT3 – Imbalance Payback from TSP) were not being evaluated for segment and MDQ validations. This error is also being corrected.


Electronic Contracting in 1Line (eContracting)

> Key elements of information from Exhibits A, B & C for all firm transportation contracts, excluding release contracts, are now available for the first time in the 1Line system.

– This data was collected from a manual review of 448 contracts with 430 locations.

– Transco is encouraging all customers to review the newly populated information to ensure accuracy.

> Customers with active firm transportation contracts (FT, FT-G, FTP and FDLS) may now generate an unexecuted representation of their paper agreement from the Contracts>Contracts/Amendments page.

– After retrieval of the contract, select the row and from the actions menu select “View eContract”.

– The display will combine key data elements from the executed paper contracts with the most recent FERC approved form of service in Transco’s tariff to create the currently effective agreement.

– The contract view role is needed to see the unexecuted representation.

> The Contracts>Contracts/Amendments>Review page has been redesigned to allow customers easy access to their contract location data and to see meter numbers, corresponding nominatable location ID and name, quantity, and pressure information related to the location.

> New Firm Transportation agreements and amendments may be executed electronically by parties with the “Contract Execution” role.


Electronic Contracting in 1Line (eContracting)

> Capacity Release Traditional Rights Inheritance– Per paragraph 4.8 of Rate Schedule FT in Transco’s FERC Gas Tariff,

“For capacity release transactions, receipt and delivery points will be established by the terms of the capacity release agreement. The rights of the Replacement Shipper at any particular point shall be those rights of the Releasing Shipper.”

– Identification of traditional inheritance rights related to FT contracts generated through capacity release will be available Fall 2017

– Replacement contracts may inherit certain traditional delivery points from the releasing contact depending on the path specified in the awarded release of capacity.

• Capacity release traditional rights information will be available in Offers, Bids and Awards

• A table will be provided when creating or viewing an offer identifying those traditional locations that have been inherited as part of the release.

• Bidders will be able to view the traditional rights table during the bid process.

• The Award will also show the traditional inheritance table.


Capacity Release – Create Offer


New Projects and Locations


Dalton and Murray Laterals

> Dalton Lateral Locations– Dalton Lateral Transfer Point allows shippers to exchange gas from Transco’s mainline

to the Dalton Lateral.

– AGL Dalton represents AGL’s Lucas Road and Murray meters.

– City of Cartersville

– Smith Looper Bridge

> Murray Lateral Location– CPH Murray

> Secondary Rights– All firm shippers in zone 4 will have secondary rights on the Dalton and Murray

Laterals. Zone 4 fuel will be assessed for transactions to delivery points on this lateral.


Dalton Lateral/Murray Lateral Nominatable Points

Dalton Lat

Transfer MP

1007.75

SMITH

LOOPER

BR MP

112.70

City of

Cartersville

MP 55.9

AGL

DALTON

MP 54.0

CPH

MURRAY

AGL MP 2.0


Sabal Trail Receipts off Transco’s system

> Receipts available on Transco for Sabal Trail Shippers

– Sabal Trail shippers can direct connect to the Sabal Trail lease capacity by using the

interconnects Scott Mountain (Location ID 9003962) and Pine View (Location ID

9004982). Transco will be the confirming party for these transactions

– Sabal Trail shippers will also be able to purchase gas from Transco shippers at the

Station 85 pool. In order to accommodate these purchases, Transco shippers will need

to use the Station 85 –Sabal Trail Transfer Point (Location ID 9009546)

• A new type of transfer location was created to transfer to Sabal Trail’s leased capacity

• Sabal Trail shippers may purchase gas from Transco Poolers at Station 85 and communicate to

Sabal Trail Transmission who is transporting the gas on behalf of their shippers

• The only valid receipt point feeding the Station 85-Sabal Trail Transfer Point is the Station 85

Pooling location 1000105.

> Delivery available for Transco Shippers

– Transco shippers can deliver to the Hillabee Sabal Trail interconnect (Location ID

9009547) confirmed by Sabal Trail Transmission.


Transco Pooler Activity at Station 85 delivering to Sabal Trail Pipeline

Transfers from Station 85 pool to Station 85 Sabal Trail Transfer will be treated as a pool to pool transfer and

will not be subject to a MDQ check. An IT or FT contract may be used.


> Shipper Zone 6 Flexible Path Options

– The Atlantic Sunrise project will introduce an additional line off Transco’s mainline in zone 6 to be called the Central Penn Line (CPL)

– With three possible paths (Central Penn, Leidy, or Mainline), shippers receiving from or delivering to zone 6 will need to designate their path for 1Line to determine the priority of service for that transaction.

– Firm shippers in zone 6 will have secondary rights on the Central Penn Line. Atlantic Sunrise shippers will have secondary rights on the Leidy Zone 6 Mainline.

– A new NAESB nomination element called ROUTE will be required for zone 6 transactions. This element is Business Conditional (BC)

• NAESB WCG Standard 1.4.1 - Nominations

– This element will be available in flat file, EDI X12 and online with the implementation of the Atlantic Sunrise full in-service targeted for mid-2018.

Atlantic Sunrise Business Practice Changes


Additional Line in Zone 6


New Interconnections


Communications


Newsletters

> Transco’s Summer 2017 Customer Connection newsletter:– This newsletter provides insights into Transco’s ongoing projects, the people helping to

make Transco a reliable and safe pipe, as well as our community involvements.

> 1Line Summer 2017 in Focus newsletter (September):– This newsletter provides insights into recent programming changes to the 1Line

system, tips and tricks, upcoming expansion projects, and general information on training and important dates.

> These two newsletters, along with any previously published newsletters, can be found on Transco’s Info Postings Page>Customer Info>Newsletters


Update 1Line Information

> Verify contact information is correct for the following roles: Balance Trades, Capacity Release, Confirmation Party Primary, Nominations, and Storage Confirmation

> Verify Business Associate contact information for correct e-mail addresses, phone numbers, and access to 1Line.

> Verify if any contracts or agency agreements can be terminated

> Verify contacts including any recent management changes


Customer Satisfaction Discussion

> Is there something we should do to improve our service to you?

> Is your representative available when needed?

> Are you able to reach someone after business hours?

> Is the knowledge of expertise of your representative able to help solve your business needs?

> Does your representative understand your business needs?

> Is the quality and timing of pipeline initiated communications helpful?


Questions?

Click the Links: Who Should I Call?

Or

Contact My Rep

http://www.1line.williams.com/ebbCode/IframePrinter.jsp?URL=http://www.1line.williams.com/Transco/contact/contacts-summary.html

http://www.1line.williams.com/Shared/info-postings/marketing-services-contacts.html

Documents

Transco Spring Update...Transco Station 515, Leidy Southeast Project in PA Photo by Williams employee, Peter Poarch, Engineer Fall Update 2017 Transco Transportation Services Fall