Natural Gas transitioning to better serve demands of power generators

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1 Natural Gas transitioning to better serve demands of power generators APPrO 2018 Chris Shorts, Director Energy Services November 12, 2018

2 Natural gas generation powering Ontario A sample of the 10,277 MW of reliable cost effective gas fired generation Goreway Station GTAA Co-genration Plant Halton Hills Generating Station Greenfield Energy Centre Portlands Energy Centre Thorold Co-generation Plant TCE Napanee Generating Station Brighton Beach Power Station.. TransAlta Energy Sarnia 2

3 Natural gas : Keeping the air conditioners on Ontario Supply Mix Early Fall Heat Wave 2017 Sept. 23 4,202 MW Sept. 24 4,275 MW Sept. 25 5,331 MW Effective backstopping when demand rises above expectations and renewables are not available (Source 3

4 Natural gas: Keeping the heat and lights on Ontario Supply Mix Cyclone Bomb Dec 2017 Jan 2018 Dec 28 4,414 MWH Dec 29 4,500 MWH Dec 31 4,232 MWH Jan 2 2,677 MWH Jan 6 5,022 MWH 4 On the coldest day of the winter, gas generation is available to fill the void on short notice (Source

5 Natural gas: Keeping us chilled in the middle of summer Ontario Supply Mix Algae Bomb Summer 2018 July 22 4 Nuclear Generators at Pickering Energy Centre came offline July 23 5,524 MWH July 24 5,456 MWH 5 Gas fired generation available on short notice when unexpected issues impact the nuclear fleet (Source

6 How did the Natural Gas Industry position for off coal Needs What Generators told Us More frequent nomination windows or firm all day Access to firm high levels of deliverability Load shaping (non uniform deliveries to plant) Natural Gas Power Services Response T2 (Union South) F24T & F24S (Union S&T) FTSN (TCPL) Rate 125 (Enbridge) High Deliverability Storage (Union & Enbridge) Upstream Pipeline Balancing Service (Union) Ability for plant to change flows on very short notice Downstream Pipeline Balancing Service (Union) 6 Natural Gas Industry responded to Generators need for services to allow them to be flexible and responsive to the short notice generation world

7 Supply Challenges are coming. How is natural gas preparing to serve? 7 Shortfall begins in ,000 MW of affordable, reliable capacity needed

8 Natural gas service for power generators has continued to evolve Operational Transparency Increased transparency and communication re: system operations Operational knowledge (T2 yellow light) Non obligated deliveries Only supply gas when generating electricity Parkway deliveries transitioned to Dawn (PDO) Greater liquidity and lower prices at Dawn for gas supply Lowers costs for all Ontario consumers Firm Dawn Vector Balancing Service Firming up intra hour balancing services west of Dawn 8 Natural Gas is committed to serve Ontario Power Generation

9 Natural Gas infrastructure has continued to grow to meet demands of electricity generation Ojibway St. Clair Parkway West & Parkway D Compressors (2015) Brantford-Kirkwall Pipeline (2015) Bluewater Dawn Dawn Compressor (2017) TCPL King s North Project (2016) Lobo Bright Lobo C Compressor (2016) Lobo D Compressor (2017) TCPL Vaughan Mainline Expansion (2017) Kirkwall Maple Parkway TCPL Maple Compression Upgrade (2016) Enbridge GTA Project (2016) Hamilton-Milton Pipeline (2016) Bright C Compressor (2017) 9 Union Gas continues to expand both transportation and storage infrastructure 9

10 Natural Gas infrastructure has continued to grow to meet demands of electricity generation Ojibway St. Clair Parkway West & Parkway D Compressors (2015) Brantford-Kirkwall Pipeline (2015) Bluewater Dawn Dawn Compressor (2017) TCPL King s North Project (2016) Lobo Bright Lobo C Compressor (2016) Lobo D Compressor (2017) TCPL Vaughan Mainline Expansion (2017) Kirkwall Maple Parkway TCPL Maple Compression Upgrade (2016) Enbridge GTA Project (2016) Hamilton-Milton Pipeline (2016) Bright C Compressor (2017) 10 Union Gas continues to expand both transportation and storage infrastructure 10

11 Growing connectivity to Natural Gas supply basins DAWN HUB Traditional Paths New and Growing Paths 11 Incremental Western Canadian gas and additional connectivity to Marcellus/Utica adding to Dawn s supply diversity

12 Dawn is Ontario s energy advantage

13 Connect with us uniongas.com