2016 NH Energy Summit Next Steps for Natural Gas in the Region. ENGIE Gas & LNG, LLC. Joe Dalton Government Affairs Director.

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1 2016 NH Energy Summit Next Steps for Natural Gas in the Region ENGIE Gas & LNG, LLC. Joe Dalton Government Affairs Director October 3, 2016

2 ENGIE North America Key Facts $4.9 billion (U.S.) 2015 annual revenues; approximately 3,500 employees working in the region. No. 1 LNG terminal player in the United States and among the most active LNG trucking operations in the world. The terminal can sustain a maximum vaporization capacity of 700 Mcf/day. No. 3 largest non-residential retail electricity supplier in the United States serving commercial, industrial and institutional customers in 14 markets, including nearly 50 percent of Fortune 100 companies. Growing customer base of residential and small business electricity customers (from 0 to 150,000 today in 2 years) under the Think Energy brand. Managing 12 Bcf of natural gas pipeline and salt dome storage in the central U.S. and Canada. Generating power from a diverse fuel mix portfolio in which nearly 90 percent produces no carbon emissions, or very few. Top 5 wind operator in Canada and in the regional renewables portfolio, operating facilities with a generation capacity of nearly 1,000 MW. Helped customers identify and achieve more than $4.1 billion in energy savings in commercial, industrial, institutional and municipal sectors and processing $20 billion in energy billing costs Managing more than 25 million square feet of buildings and active in 8 airports. 2

Importance of LNG in Greater Boston & New England The Everett Terminal directly connects into: Algonquin Pipeline Tennessee Gas Pipeline National Grid local distribution system Mystic Power Station

3 Importance of LNG in Greater Boston & New England The Everett Terminal directly connects into: Algonquin Pipeline Tennessee Gas Pipeline National Grid local distribution system Mystic Power Station The Everett Terminal supplies LNG via truck to nearly all of the 46 customer-owned LNG storage tanks in region. (LNG is how natural gas is stored in New England.) Today, LNG from Everett and these facilities can meet as much 40% of the natural gas demand on peak days. Total LNG storage in New England is 20 Bcf.

Everett Marine Terminal: A Center of Distribution Tennessee Gas Pipeline 163 MMSCF/D @ 750 PSIG Liquid delivery via truck/trailer 1 million gals/day 100 MMSCF/D Algonquin Gas Pipeline 276 MMSCF/D @

4 Everett Marine Terminal: A Center of Distribution Tennessee Gas Pipeline PSIG Liquid delivery via truck/trailer 1 million gals/day 100 MMSCF/D Algonquin Gas Pipeline PSIG Boil-off direct connection Local distribution PSIG National Grid Greater Boston distribution PSIG Mystic Station (1,600 MW) direct connect PSIG 4

5 Winter 13/ 14 & 14/ 15 Source: ISO-NE presentation, March 4, 2015, **excludes approx. 5 Bcf/d to Mystic & LDCs 5

6 Winter 13/ 14 & 14/ 15 - continued Total Distrigas sendout up from 9.3 Bcf/d in Jan/Feb 2014 to 15.6 Bcf/d in Jan/Feb % increase According to ISO-NE COO Reports Dec 14 Feb 15 costs compared to Dec 13 Feb 14 Down over $2 BILLION Source: SNL, In New England power market, small changes lead to big price differences, by Mark Hand, March 2,

7 Recent Report on Winter Alternatives GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW SEPTEMBER

8 Energyzt Advisors Report Findings 1. Existing infrastructure is more than adequate. 2. Winter prices reflected a transient peaking problem. 3. The market is responding with dual-fuel capability and LNG contracts. 4. New Pipeline Capacity already is being built. 5. Public policy does not support new pipeline infrastructure. 6. A new pipeline subsidized by electric ratepayers violates the beneficiary pays principle. The lowest cost and lowest risk way to meet power generation demand and reduce natural gas prices in the New England market in the near to medium term is to contract with existing infrastructure, including LNG imports and dual fuel capability, that can provide peaking response at little to no capital cost and without ratepayer commitment. With existing infrastructure and projected needs over the next ten years, there is plenty of time to monitor how existing policy initiatives, infrastructure availability, market response and therefore new pipeline infrastructure needs evolve over the long-term. The solution is contracting, not construction. GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW SEPTEMBER

9 Massachusetts Supreme Judicial Court Ruling in SJC SJC wrote on the question of statutory authority, We conclude that the department erred in interpreting G. L. c. 164, 94A, as amended by the 1997 restructuring act, as authorizing it to review and approve ratepayer-backed, long-term contracts by electric distribution companies for natural gas capacity. Accordingly, the department's order is vacated. SJC wrote on the question of the MA Restructuring Act, we determine that the department's approval of ratepayer-backed, long-term contracts by electric distribution companies for gas capacity contradicts the fundamental policy embodied in the restructuring act, namely the Legislature's decision to remove electric distribution companies from the business of electric generation. SJC did not reach the question on Federal Power Act SJC vacated the underlying MA DPU order NH PUC deliberations continue ME, CT, RI GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW SEPTEMBER

10 The Case for LNG in New England New England has a peaking gas supply issue, not a baseload issue in the near to mid-term (Particularly true with AGT s AIM project adding 342,000 MMBtu starting Nov 1, 2016) Even with current pipeline expansion plans, LNG has an important role to meet peak demand ENGIE believes strongly that Region should first unlock potential of underutilized existing natural gas infrastructure to help solve winter peak issue Pipeline expansions are largely designed to meet LDC heating load requirements; LNG provides the necessary flexibility to meet the needs of power ISO-NE Winter Reliability Program now includes LNG as well as oil, dual fuel, DR ISO-NE Pay for Performance proposal important LNG can be economically delivered to the New England market during peak periods provided commitment is made with enough time to facilitate logistics LNG is available on a short-term, seasonal, or on a longer-term basis as needed 10

Going Forward Repositioning Company back to its original conception

Vapor/Liquid Services Summer LNG Refill Mystic Power Plant Customer Mix is

Marketers with AMA agreements Will continue to contract for and increase the

11 Going Forward Repositioning Company back to its original conception Winter/Summer Firm Peaking Vapor Winter Firm Liquid Services Combination Vapor/Liquid Services Summer LNG Refill Mystic Power Plant Customer Mix is Changing Continue to Serve LDC s Power Generators ISO-NE Pay for Performance Marketers with AMA agreements Will continue to contract for and increase the firm Transportation quantity on TGP/AGT 11 GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW SEPTEMBER 2013

Pre-Winter Briefing Northeast Gas Association

Pre-Winter Briefing Northeast Gas Association November 3, 2016 Ed Cahill Vice President, Marketing, Sales, and Transportation GDF SUEZ Energy NA is now ENGIE North America Name change completed Q1-2016