NEXUS Gas Transmission

Transcription

1 NEXUS Gas Transmission Bringing New Supplies to Market Ohio Manufacturers Association - October 2012

2 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 2

3 Overview of NEXUS Gas Transmission New pipeline to connect Utica and Marcellus supply in Ohio to U.S. Midwest and Dawn markets Strong development partners - DTE Energy, Enbridge and Spectra 250 mile, large diameter pipeline delivering at least 1 Bcf/d In service by November 2016 Uses existing infrastructure and utility corridors Firm path to Ohio, Michigan and Ontario markets Interest in firm capacity to anchor the project 3

4 NEXUS Gas Transmission - Details Supply Access Central Receipt Point (CRP) in Northeastern Ohio (TBD) Interconnect with Tennessee Gas Pipeline Potentially multiple laterals from processing plants or gathering systems to the CRP, priced separately Market Access Two delivery zones Michigan Zone includes MichCon, Consumers and Vector Ontario Zone includes Tecumseh Storage and the Dawn Hub Access to in-path power and LDC markets in Ohio Possible interconnects with pipeline network in Ohio - Tennessee, East Ohio, Dominion, TCO, Panhandle, ANR Pipeline Details 250 miles from CRP to Michigan Delivery Zone, All of this is new build, primarily in existing utility corridors 36, high pressure pipeline (1200# # MAOP) 330 miles from CRP to Ontario Delivery Zone, Last 80 miles is primarily expansion of existing facilities No new international river crossing required In service as early as November 2016 CONFIDENTIAL 4

5 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 5

6 The Northeast US Appalachian Basin, with its Marcellus and Utica Shales, has the largest natural gas resource base of any US shale basin US Shale Basins and their Natural Gas Resource Base (Tcf) Tcf Appalachian Basin 156 Tcf Other US shale basins 163 Tcf 59 Tcf 66 Tcf 1. Unproved technically recoverable resources Source: PacWest Consulting, EIA, DTE Analysis 6

7 The Ohio Utica contains dry gas, wet gas and oil windows Oil Wet gas Dry gas Source: Ohio Geological Survey 4/2/12 7

8 A bottoms-up estimate of Utica s resource potential across three windows suggests recoverable reserves of ~91 Tcf gas, ~4.1 B bbl NGLs, and ~5.7 B bbl oil Total reserves = acreage 1 * wells per acre 2 * success factor 3 * EUR per well 4 Gas reserves (Tcf) NGL reserves (B bbl) Oil reserves (B bbl) WV PA OH Wet window Oil window Dry / LC window Total gas Wet window Dry / LC window Total NGLs Wet window Oil window Total oil 1. By window, from Ohio Geographic Survey, adjusted by population density. Only includes prospective area and excludes federal lands 2. Assumed 160 wells/acre based on current spacing 3. Higher where wells currently in production; lower the further away from existing production 4. Varies based on actual results by county 8

9 Chesapeake, Chevron, Range, and other leading natural gas producers have acquired substantial acreage positions in the Ohio Utica Utica Acreage by Producer (thousands of acres) 1, Chesapeake Energy Chevron Range Resources EnerVest Anadarko Devon Hess EV Energy Partners Consol BP REX Energy Magnum Hunter Gulfport PDC Energy Carrizo Source: Bentek Energy, Unconventional Gas Center, Company presentations 9

10 Utica is a key target of producer investment in liquids rich plays, and has seen dramatic growth in rig count and drilling activity Utica Rig Count Utica Well and Drilling Activity 30 Cumulative Utica wells rigs + 178% Other Counties Jefferson, OH Beaver, PA permitted 15 Lawrence, PA Noble, OH Belmont, OH Harrison, OH Coluimbiana, OH Carroll, OH drilled /drilling 34 producing Feb May Aug Nov Feb May Aug Pre May Aug Nov Feb May Aug Cumulative wells drilled / drilling Cumulative wells permitted Source: Baker Hughes, Ohio Department of Natural Resources September 30, 2012, DTE analysis 10

11 Natural gas from the Utica Shale is among the lowest cost supplies available Breakeven Cost of Supply 1 ($/MMBtu) <2.0 < Associated gas (from oil plays) Utica SW Marcellus Eagle Ford Granite Wash NE Marcellus Barnett Fayetteville Haynesville breakeven cost of new supply at after-tax 10% IRR Source: Wood Mackenzie, DTE Energy analysis 11

12 Utica natural gas production could reach ~2.8 Bcf/d by 2016 and ~ 4.0 Bcf/d by 2020 in our base case Bcf/d Aggressive More Aggressive Base Source: DTE Market Intelligence Modeling 12

13 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 13

14 Michigan and Ontario are some of the most liquid trading locations in North America NEXUS Gas Transmission gives producers access to the Michigan and Ontario markets Average Daily Demand of over 6 Bcf Significant summer demand because of storage injections 660 Bcf Michigan, 276 Bcf Ontario Liquidity gives producers flow assurance Producers desire multiple buyers; Markets desire multiple sellers MichCon, Consumers and Dawn Hub are published trading points in Gas Daily and traded on Intercontinental Exchange (ICE) Average daily index trades Bcfd at MichCon, 0.2 Bcfd at Consumers, 1.1 Bcfd at Dawn Hub By comparison, 0.7 Bcfd trades at Dominion South Point and 0.7 Bcfd trades at Henry Hub Markets in Michigan and Ontario have expressed significant interest in index based supply Average Daily Demand (Bcfd) Average Daily Index Trades (Bcfd) Michigan Ontario MichCon Consumers Dawn Source: Platt s Gas Daily; DTE analysis; 2012 data through August 23 14

15 North American Gas Supply Changes Supply changes create challenges & opportunities Western Canada Decline Midcontinent Growth Marcellus/ Utica Growth Gulf Coast Growth Offshore Gulf Decline 15

16 Declining Canadian Supplies and TCPL Deliveries is increasing demand for alternate supplies at Dawn Alberta production is declining and demand is increasing By 2016, only 3.0 Bcf/d available for export from Alberta Flows from Alberta into TCPL have declined significantly, reducing available supplies to the Midwest and Eastern Canada 6.5 Bcf/d available for export 3.0 Bcf/d available for export TCPL Eastern Zone tolls have increased significantly, making it the most expensive source of supply for Eastern Canada and Northeast US TCPL Eastern Tolls CDN $/GJ $1.15 $1.19 $1.19 $1.07 $0.94 $1.03 $1.40 $1.19 $1.64 $2.24 Source: GazMetro LDC Forum/IGUA Presentation Nov

17 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 17

18 NEXUS Gas Transmission links abundant supplies in Utica and Marcellus to nearby large, liquid markets Recap of Key Points The Northeast US has abundant shale resources Utica has some of the lowest cost gas supply in the country Producers are invested heavily in liquids-rich plays, including Utica, where rig count and drilling activity has increased at a fast pace Northeast production is projected to grow substantially in the next few years NEXUS Gas Transmission can move the abundant low-cost Northeast gas to the large demand centers in Ohio, Michigan, and Ontario 18

19 Follow Up Feedback on pipeline Concept Location Identify potential market interest Identify next steps Open Season October 15 November 30, 2012 Open Season available at nexusgastransmission.com 19

20 Contact Information Mark Bering Bob Riga Rene Dartez Director, Marketing & Optimization General Manager, Business Development Director, Business Development DTE Gas Storage and Pipelines Spectra Energy Enbridge Inc. (313) (617) (713) David Slater Bobby Huffman John Potter Senior Vice-President Project Director, Business Development Project Analyst, Business Development DTE Gas Storage and Pipelines Spectra Energy Enbridge Inc. (313) (713) (713)

21 Appendix NEXUS Partners Overview Additional Market Information 21

22 DTE Energy is an Integrated Energy Company Strong, Stable and Growing Utilities Detroit Edison MichCon Complementary Non-Utility Businesses ~80% of DTE Energy s Earnings ~20% of DTE Energy s Earnings 10 th largest U.S. electric utility 11,000 GW of power generation capacity (82% coal and nuclear) 2.1 million distribution customers in Southeast Michigan 11 th largest U.S. gas utility 139 Bcf of working gas storage capacity; purchases Bcf of gas annually 1.2 million distribution customers in Southeast Michigan 900 Bcf annual throughput Gas Storage & Pipelines Transports and stores natural gas 91 Bcf of gas storage; 538 miles of pipeline Washington 10 Storage Corp. (100%) Vector Pipeline (40%) Millennium Pipeline (26.25%) MichCon Pipeline Company (100%) Bluestone Gathering Company (100%) Unconventional Gas Production Western Barnett Shale Production 67,000 net acres; 489 Bcf of reserves 180 gross producing wells Power & Industrial Projects Owns and operates energy assets Industrial / utility solid fuels Utility services and renewable energy Energy Trading Transports gas on more than 60 pipelines Asset management and sales to major utilities Producer services, including risk management 22

23 Spectra s Diverse Portfolio of Assets 2011 Pipeline Throughput: 4.2 Tcf Transmission Pipe: 19,300 mi Storage Capacity: 300+ Bcf Gathering Pipe: 64,800 mi SE Gas Processing Capacity: 3.3 Bcf/d DCP 4Q11 G&P: 6.3 TBtu/d DCP 4Q11 NGLs produced: 406 MBbl/d Distribution Pipe: 39,000 mi Retail Customers: 1.4 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations 23

24 Enbridge Strategic Position 24

25 MichCon, Union and Enbridge Market Overview MichCon Enbridge Union Gas 1.2 Million 1.9 Million 1.4 Million 19,000 miles 21,000 miles 39,000 miles Annual Throughput Distribution 278 Bcf 400 Bcf 500 Bcf Annual Throughput Transmission 546 Bcf NA 835 Bcf Working Storage 139 Bcf 111 Bcf 157 Bcf Distribution Customers Distribution Main Total of: 4.5 million customers 1.2 Tcf of annual distribution throughput 1.4 Tcf of annual transmission throughput 407 Bcf of working storage 25

26 NEXUS Gas Transmission Bringing New Supplies to Market Ohio Manufacturers Association - October 2012

27 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 2

28 Overview of NEXUS Gas Transmission New pipeline to connect Utica and Marcellus supply in Ohio to U.S. Midwest and Dawn markets Strong development partners - DTE Energy, Enbridge and Spectra 250 mile, large diameter pipeline delivering at least 1 Bcf/d In service by November 2016 Uses existing infrastructure and utility corridors Firm path to Ohio, Michigan and Ontario markets Interest in firm capacity to anchor the project 3

29 NEXUS Gas Transmission - Details Supply Access Central Receipt Point (CRP) in Northeastern Ohio (TBD) Interconnect with Tennessee Gas Pipeline Potentially multiple laterals from processing plants or gathering systems to the CRP, priced separately Market Access Two delivery zones Michigan Zone includes MichCon, Consumers and Vector Ontario Zone includes Tecumseh Storage and the Dawn Hub Access to in-path power and LDC markets in Ohio Possible interconnects with pipeline network in Ohio - Tennessee, East Ohio, Dominion, TCO, Panhandle, ANR Pipeline Details 250 miles from CRP to Michigan Delivery Zone, All of this is new build, primarily in existing utility corridors 36, high pressure pipeline (1200# # MAOP) 330 miles from CRP to Ontario Delivery Zone, Last 80 miles is primarily expansion of existing facilities No new international river crossing required In service as early as November 2016 CONFIDENTIAL 4

30 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 5

31 The Northeast US Appalachian Basin, with its Marcellus and Utica Shales, has the largest natural gas resource base of any US shale basin US Shale Basins and their Natural Gas Resource Base (Tcf)1 Appalachian Basin 156 Tcf 27 Tcf 11 Other US shale basins 163 Tcf 1. Unproved technically recoverable resources Source: PacWest Consulting, EIA, DTE Analysis 66 Tcf 59 Tcf 6

32 The Ohio Utica contains dry gas, wet gas and oil windows Oil Wet gas Dry gas Source: Ohio Geological Survey 4/2/12 7

33 A bottoms-up estimate of Utica s resource potential across three windows suggests recoverable reserves of ~91 Tcf gas, ~4.1 B bbl NGLs, and ~5.7 B bbl oil Total reserves = acreage1 * wells per acre2 * success factor3 * EUR per well4 Gas reserves (Tcf) WV NGL reserves (B bbl) Oil reserves (B bbl) PA 0.4 OH Wet window Oil Dry / LC Total gas window window Wet Dry / LC window window Total NGLs Wet Oil Total oil window window By window, from Ohio Geographic Survey, adjusted by population density. Only includes prospective area and excludes federal lands Assumed 160 wells/acre based on current spacing Higher where wells currently in production; lower the further away from existing production Varies based on actual results by county 8

34 Chesapeake, Chevron, Range, and other leading natural gas producers have acquired substantial acreage positions in the Ohio Utica Utica Acreage by Producer (thousands of acres) 1, Source: Bentek Energy, Unconventional Gas Center, Company presentations Magnum Hunter Gulfport PDC Energy Carrizo 117 REX Energy 150 Consol 185 EV Energy Partners 235 Hess Anadarko EnerVest Range Resources Chevron Chesapeake Energy 300 BP 399 Devon 420 9

35 Utica is a key target of producer investment in liquids rich plays, and has seen dramatic growth in rig count and drilling activity Utica Rig Count Utica Well and Drilling Activity Cumulative Utica wells Other Counties + 14 rigs + 178% 20 Jefferson, OH 405 permitted 400 Beaver, PA Lawrence, PA Noble, OH Belmont, OH Harrison, OH 137 drilled /drilling Coluimbiana, OH Carroll, OH 0 Feb producing 0 May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Pre May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Cumulative wells drilled / drilling Cumulative wells permitted Source: Baker Hughes, Ohio Department of Natural Resources September 30, 2012, DTE analysis 10

36 Natural gas from the Utica Shale is among the lowest cost supplies available Breakeven Cost of Supply1 ($/MMBtu) <2.0 <2.0 Associated gas (from oil plays) Utica 2.2 SW Marcellus breakeven cost of new supply at after-tax 10% IRR Source: Wood Mackenzie, DTE Energy analysis Eagle Ford Granite Wash NE Marcellus Barnett Fayetteville Haynesville 11

37 Utica natural gas production could reach ~2.8 Bcf/d by 2016 and ~ 4.0 Bcf/d by 2020 in our base case Bcf/d Aggressive Base Source: DTE Market Intelligence Modeling More Aggressive 6.5

38 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 13

39 Michigan and Ontario are some of the most liquid trading locations in North America NEXUS Gas Transmission gives producers access to the Michigan and Ontario markets Average Daily Demand of over 6 Bcf Significant summer demand because of storage injections 660 Bcf Michigan, 276 Bcf Ontario Liquidity gives producers flow assurance Producers desire multiple buyers; Markets desire multiple sellers MichCon, Consumers and Dawn Hub are published trading points in Gas Daily and traded on Intercontinental Exchange (ICE) Average daily index trades Bcfd at MichCon, 0.2 Bcfd at Consumers, 1.1 Bcfd at Dawn Hub By comparison, 0.7 Bcfd trades at Dominion South Point and 0.7 Bcfd trades at Henry Hub Markets in Michigan and Ontario have expressed significant interest in index based supply Average Daily Index Trades (Bcfd) Average Daily Demand (Bcfd) Michigan Ontario MichCon 2011 Consumers 2012 Dawn 14 Source: Platt s Gas Daily; DTE analysis; 2012 data through August 23

40 North American Gas Supply Changes Supply changes create challenges & opportunities Western Canada Decline Marcellus/ Utica Midcontinent Growth Growth Gulf Coast Growth Offshore Gulf Decline 15

41 Declining Canadian Supplies and TCPL Deliveries is increasing demand for alternate supplies at Dawn Flows from Alberta into TCPL have declined significantly, reducing available supplies to the Midwest and Eastern Canada Alberta production is declining and demand is increasing By 2016, only 3.0 Bcf/d available for export from Alberta 3.0 Bcf/d available for export 6.5 Bcf/d available for export TCPL Eastern Zone tolls have increased significantly, making it the most expensive source of supply for Eastern Canada and Northeast US TCPL Eastern Tolls CDN $/GJ $1.15 $1.19 $1.19 $1.07 $0.94 $1.03 $1.40 $1.19 $1.64 $2.24 Source: GazMetro LDC Forum/IGUA Presentation Nov

42 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 17

43 NEXUS Gas Transmission links abundant supplies in Utica and Marcellus to nearby large, liquid markets Recap of Key Points The Northeast US has abundant shale resources Utica has some of the lowest cost gas supply in the country Producers are invested heavily in liquids-rich plays, including Utica, where rig count and drilling activity has increased at a fast pace Northeast production is projected to grow substantially in the next few years NEXUS Gas Transmission can move the abundant low-cost Northeast gas to the large demand centers in Ohio, Michigan, and Ontario 18

44 Follow Up Feedback on pipeline Concept Location Identify potential market interest Identify next steps Open Season October 15 November 30, 2012 Open Season available at nexusgastransmission.com 19

45 Contact Information Mark Bering Director, Marketing & Optimization DTE Gas Storage and Pipelines (313) Bob Riga General Manager, Business Development Spectra Energy (617) Rene Dartez Director, Business Development Enbridge Inc. (713) David Slater Senior Vice-President DTE Gas Storage and Pipelines (313) Bobby Huffman Project Director, Business Development Spectra Energy (713) John Potter Project Analyst, Business Development Enbridge Inc. (713)

46 Appendix NEXUS Partners Overview Additional Market Information 21

47 DTE Energy is an Integrated Energy Company Strong, Stable and Growing Utilities ~80% of DTE Energy s Earnings Complementary Non-Utility Businesses ~20% of DTE Energy s Earnings Gas Storage & Pipelines Detroit Edison 10th largest U.S. electric utility 11,000 GW of power generation capacity (82% coal and nuclear) 2.1 million distribution customers in Southeast Michigan Transports and stores natural gas 91 Bcf of gas storage; 538 miles of pipeline Washington 10 Storage Corp. (100%) Vector Pipeline (40%) Millennium Pipeline (26.25%) MichCon Pipeline Company (100%) Bluestone Gathering Company (100%) Unconventional Gas Production MichCon 11th largest U.S. gas utility 139 Bcf of working gas storage capacity; purchases Bcf of gas annually 1.2 million distribution customers in Southeast Michigan 900 Bcf annual throughput Western Barnett Shale Production 67,000 net acres; 489 Bcf of reserves 180 gross producing wells Power & Industrial Projects Owns and operates energy assets Industrial / utility solid fuels Utility services and renewable energy Energy Trading Transports gas on more than 60 pipelines Asset management and sales to major utilities Producer services, including risk management 22

48 Spectra s Diverse Portfolio of Assets 2011 Pipeline Throughput: Transmission Pipe: Storage Capacity: Gathering Pipe: SE Gas Processing Capacity: DCP 4Q11 G&P: DCP 4Q11 NGLs produced: Distribution Pipe: Retail Customers: 4.2 Tcf 19,300 mi 300+ Bcf 64,800 mi 3.3 Bcf/d 6.3 TBtu/d 406 MBbl/d 39,000 mi 1.4 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations 23

49 Enbridge Strategic Position 24

50 MichCon, Union and Enbridge Market Overview MichCon Enbridge Union Gas 1.2 Million 1.9 Million 1.4 Million 19,000 miles 21,000 miles 39,000 miles Annual Throughput Distribution 278 Bcf 400 Bcf 500 Bcf Annual Throughput Transmission 546 Bcf NA 835 Bcf Working Storage 139 Bcf 111 Bcf 157 Bcf Distribution Customers Distribution Main Total of: 4.5 million customers 1.2 Tcf of annual distribution throughput 1.4 Tcf of annual transmission throughput 407 Bcf of working storage 25

51 NEXUS Gas Transmission Bringing New Supplies to Market Ohio Manufacturers Association - October 2012

52 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 2

53 Overview of NEXUS Gas Transmission New pipeline to connect Utica and Marcellus supply in Ohio to U.S. Midwest and Dawn markets Strong development partners - DTE Energy, Enbridge and Spectra 250 mile, large diameter pipeline delivering at least 1 Bcf/d In service by November 2016 Uses existing infrastructure and utility corridors Firm path to Ohio, Michigan and Ontario markets Interest in firm capacity to anchor the project 3

54 NEXUS Gas Transmission - Details Supply Access Central Receipt Point (CRP) in Northeastern Ohio (TBD) Interconnect with Tennessee Gas Pipeline Potentially multiple laterals from processing plants or gathering systems to the CRP, priced separately Market Access Two delivery zones Michigan Zone includes MichCon, Consumers and Vector Ontario Zone includes Tecumseh Storage and the Dawn Hub Access to in-path power and LDC markets in Ohio Possible interconnects with pipeline network in Ohio - Tennessee, East Ohio, Dominion, TCO, Panhandle, ANR Pipeline Details 250 miles from CRP to Michigan Delivery Zone, All of this is new build, primarily in existing utility corridors 36, high pressure pipeline (1200# # MAOP) 330 miles from CRP to Ontario Delivery Zone, Last 80 miles is primarily expansion of existing facilities No new international river crossing required In service as early as November 2016 CONFIDENTIAL 4

55 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 5

56 The Northeast US Appalachian Basin, with its Marcellus and Utica Shales, has the largest natural gas resource base of any US shale basin US Shale Basins and their Natural Gas Resource Base (Tcf)1 Appalachian Basin 156 Tcf 27 Tcf 11 Other US shale basins 163 Tcf 1. Unproved technically recoverable resources Source: PacWest Consulting, EIA, DTE Analysis 66 Tcf 59 Tcf 6

57 The Ohio Utica contains dry gas, wet gas and oil windows Oil Wet gas Dry gas Source: Ohio Geological Survey 4/2/12 7

58 A bottoms-up estimate of Utica s resource potential across three windows suggests recoverable reserves of ~91 Tcf gas, ~4.1 B bbl NGLs, and ~5.7 B bbl oil Total reserves = acreage1 * wells per acre2 * success factor3 * EUR per well4 Gas reserves (Tcf) WV NGL reserves (B bbl) Oil reserves (B bbl) PA 0.4 OH Wet window Oil Dry / LC Total gas window window Wet Dry / LC window window Total NGLs Wet Oil Total oil window window By window, from Ohio Geographic Survey, adjusted by population density. Only includes prospective area and excludes federal lands Assumed 160 wells/acre based on current spacing Higher where wells currently in production; lower the further away from existing production Varies based on actual results by county 8

59 Chesapeake, Chevron, Range, and other leading natural gas producers have acquired substantial acreage positions in the Ohio Utica Utica Acreage by Producer (thousands of acres) 1, Source: Bentek Energy, Unconventional Gas Center, Company presentations Magnum Hunter Gulfport PDC Energy Carrizo 117 REX Energy 150 Consol 185 EV Energy Partners 235 Hess Anadarko EnerVest Range Resources Chevron Chesapeake Energy 300 BP 399 Devon 420 9

60 Utica is a key target of producer investment in liquids rich plays, and has seen dramatic growth in rig count and drilling activity Utica Rig Count Utica Well and Drilling Activity Cumulative Utica wells Other Counties + 14 rigs + 178% 20 Jefferson, OH 405 permitted 400 Beaver, PA Lawrence, PA Noble, OH Belmont, OH Harrison, OH 137 drilled /drilling Coluimbiana, OH Carroll, OH 0 Feb producing 0 May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Pre May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Cumulative wells drilled / drilling Cumulative wells permitted Source: Baker Hughes, Ohio Department of Natural Resources September 30, 2012, DTE analysis 10

61 Natural gas from the Utica Shale is among the lowest cost supplies available Breakeven Cost of Supply1 ($/MMBtu) <2.0 <2.0 Associated gas (from oil plays) Utica 2.2 SW Marcellus breakeven cost of new supply at after-tax 10% IRR Source: Wood Mackenzie, DTE Energy analysis Eagle Ford Granite Wash NE Marcellus Barnett Fayetteville Haynesville 11

62 Utica natural gas production could reach ~2.8 Bcf/d by 2016 and ~ 4.0 Bcf/d by 2020 in our base case Bcf/d Aggressive Base Source: DTE Market Intelligence Modeling More Aggressive 6.5

63 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 13

64 Michigan and Ontario are some of the most liquid trading locations in North America NEXUS Gas Transmission gives producers access to the Michigan and Ontario markets Average Daily Demand of over 6 Bcf Significant summer demand because of storage injections 660 Bcf Michigan, 276 Bcf Ontario Liquidity gives producers flow assurance Producers desire multiple buyers; Markets desire multiple sellers MichCon, Consumers and Dawn Hub are published trading points in Gas Daily and traded on Intercontinental Exchange (ICE) Average daily index trades Bcfd at MichCon, 0.2 Bcfd at Consumers, 1.1 Bcfd at Dawn Hub By comparison, 0.7 Bcfd trades at Dominion South Point and 0.7 Bcfd trades at Henry Hub Markets in Michigan and Ontario have expressed significant interest in index based supply Average Daily Index Trades (Bcfd) Average Daily Demand (Bcfd) Michigan Ontario MichCon 2011 Consumers 2012 Dawn 14 Source: Platt s Gas Daily; DTE analysis; 2012 data through August 23

65 North American Gas Supply Changes Supply changes create challenges & opportunities Western Canada Decline Marcellus/ Utica Midcontinent Growth Growth Gulf Coast Growth Offshore Gulf Decline 15

66 Declining Canadian Supplies and TCPL Deliveries is increasing demand for alternate supplies at Dawn Flows from Alberta into TCPL have declined significantly, reducing available supplies to the Midwest and Eastern Canada Alberta production is declining and demand is increasing By 2016, only 3.0 Bcf/d available for export from Alberta 3.0 Bcf/d available for export 6.5 Bcf/d available for export TCPL Eastern Zone tolls have increased significantly, making it the most expensive source of supply for Eastern Canada and Northeast US TCPL Eastern Tolls CDN $/GJ $1.15 $1.19 $1.19 $1.07 $0.94 $1.03 $1.40 $1.19 $1.64 $2.24 Source: GazMetro LDC Forum/IGUA Presentation Nov

67 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 17

68 NEXUS Gas Transmission links abundant supplies in Utica and Marcellus to nearby large, liquid markets Recap of Key Points The Northeast US has abundant shale resources Utica has some of the lowest cost gas supply in the country Producers are invested heavily in liquids-rich plays, including Utica, where rig count and drilling activity has increased at a fast pace Northeast production is projected to grow substantially in the next few years NEXUS Gas Transmission can move the abundant low-cost Northeast gas to the large demand centers in Ohio, Michigan, and Ontario 18

69 Follow Up Feedback on pipeline Concept Location Identify potential market interest Identify next steps Open Season October 15 November 30, 2012 Open Season available at nexusgastransmission.com 19

70 Contact Information Mark Bering Director, Marketing & Optimization DTE Gas Storage and Pipelines (313) Bob Riga General Manager, Business Development Spectra Energy (617) Rene Dartez Director, Business Development Enbridge Inc. (713) David Slater Senior Vice-President DTE Gas Storage and Pipelines (313) Bobby Huffman Project Director, Business Development Spectra Energy (713) John Potter Project Analyst, Business Development Enbridge Inc. (713)

71 Appendix NEXUS Partners Overview Additional Market Information 21

72 DTE Energy is an Integrated Energy Company Strong, Stable and Growing Utilities ~80% of DTE Energy s Earnings Complementary Non-Utility Businesses ~20% of DTE Energy s Earnings Gas Storage & Pipelines Detroit Edison 10th largest U.S. electric utility 11,000 GW of power generation capacity (82% coal and nuclear) 2.1 million distribution customers in Southeast Michigan Transports and stores natural gas 91 Bcf of gas storage; 538 miles of pipeline Washington 10 Storage Corp. (100%) Vector Pipeline (40%) Millennium Pipeline (26.25%) MichCon Pipeline Company (100%) Bluestone Gathering Company (100%) Unconventional Gas Production MichCon 11th largest U.S. gas utility 139 Bcf of working gas storage capacity; purchases Bcf of gas annually 1.2 million distribution customers in Southeast Michigan 900 Bcf annual throughput Western Barnett Shale Production 67,000 net acres; 489 Bcf of reserves 180 gross producing wells Power & Industrial Projects Owns and operates energy assets Industrial / utility solid fuels Utility services and renewable energy Energy Trading Transports gas on more than 60 pipelines Asset management and sales to major utilities Producer services, including risk management 22

73 Spectra s Diverse Portfolio of Assets 2011 Pipeline Throughput: Transmission Pipe: Storage Capacity: Gathering Pipe: SE Gas Processing Capacity: DCP 4Q11 G&P: DCP 4Q11 NGLs produced: Distribution Pipe: Retail Customers: 4.2 Tcf 19,300 mi 300+ Bcf 64,800 mi 3.3 Bcf/d 6.3 TBtu/d 406 MBbl/d 39,000 mi 1.4 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations 23

74 Enbridge Strategic Position 24

75 MichCon, Union and Enbridge Market Overview MichCon Enbridge Union Gas 1.2 Million 1.9 Million 1.4 Million 19,000 miles 21,000 miles 39,000 miles Annual Throughput Distribution 278 Bcf 400 Bcf 500 Bcf Annual Throughput Transmission 546 Bcf NA 835 Bcf Working Storage 139 Bcf 111 Bcf 157 Bcf Distribution Customers Distribution Main Total of: 4.5 million customers 1.2 Tcf of annual distribution throughput 1.4 Tcf of annual transmission throughput 407 Bcf of working storage 25

76 NEXUS Gas Transmission Bringing New Supplies to Market Ohio Manufacturers Association - October 2012

77 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 2

78 Overview of NEXUS Gas Transmission New pipeline to connect Utica and Marcellus supply in Ohio to U.S. Midwest and Dawn markets Strong development partners - DTE Energy, Enbridge and Spectra 250 mile, large diameter pipeline delivering at least 1 Bcf/d In service by November 2016 Uses existing infrastructure and utility corridors Firm path to Ohio, Michigan and Ontario markets Interest in firm capacity to anchor the project 3

79 NEXUS Gas Transmission - Details Supply Access Central Receipt Point (CRP) in Northeastern Ohio (TBD) Interconnect with Tennessee Gas Pipeline Potentially multiple laterals from processing plants or gathering systems to the CRP, priced separately Market Access Two delivery zones Michigan Zone includes MichCon, Consumers and Vector Ontario Zone includes Tecumseh Storage and the Dawn Hub Access to in-path power and LDC markets in Ohio Possible interconnects with pipeline network in Ohio - Tennessee, East Ohio, Dominion, TCO, Panhandle, ANR Pipeline Details 250 miles from CRP to Michigan Delivery Zone, All of this is new build, primarily in existing utility corridors 36, high pressure pipeline (1200# # MAOP) 330 miles from CRP to Ontario Delivery Zone, Last 80 miles is primarily expansion of existing facilities No new international river crossing required In service as early as November 2016 CONFIDENTIAL 4

80 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 5

81 The Northeast US Appalachian Basin, with its Marcellus and Utica Shales, has the largest natural gas resource base of any US shale basin US Shale Basins and their Natural Gas Resource Base (Tcf)1 Appalachian Basin 156 Tcf 27 Tcf 11 Other US shale basins 163 Tcf 1. Unproved technically recoverable resources Source: PacWest Consulting, EIA, DTE Analysis 66 Tcf 59 Tcf 6

82 The Ohio Utica contains dry gas, wet gas and oil windows Oil Wet gas Dry gas Source: Ohio Geological Survey 4/2/12 7

83 A bottoms-up estimate of Utica s resource potential across three windows suggests recoverable reserves of ~91 Tcf gas, ~4.1 B bbl NGLs, and ~5.7 B bbl oil Total reserves = acreage1 * wells per acre2 * success factor3 * EUR per well4 Gas reserves (Tcf) WV NGL reserves (B bbl) Oil reserves (B bbl) PA 0.4 OH Wet window Oil Dry / LC Total gas window window Wet Dry / LC window window Total NGLs Wet Oil Total oil window window By window, from Ohio Geographic Survey, adjusted by population density. Only includes prospective area and excludes federal lands Assumed 160 wells/acre based on current spacing Higher where wells currently in production; lower the further away from existing production Varies based on actual results by county 8

84 Chesapeake, Chevron, Range, and other leading natural gas producers have acquired substantial acreage positions in the Ohio Utica Utica Acreage by Producer (thousands of acres) 1, Source: Bentek Energy, Unconventional Gas Center, Company presentations Magnum Hunter Gulfport PDC Energy Carrizo 117 REX Energy 150 Consol 185 EV Energy Partners 235 Hess Anadarko EnerVest Range Resources Chevron Chesapeake Energy 300 BP 399 Devon 420 9

85 Utica is a key target of producer investment in liquids rich plays, and has seen dramatic growth in rig count and drilling activity Utica Rig Count Utica Well and Drilling Activity Cumulative Utica wells Other Counties + 14 rigs + 178% 20 Jefferson, OH 405 permitted 400 Beaver, PA Lawrence, PA Noble, OH Belmont, OH Harrison, OH 137 drilled /drilling Coluimbiana, OH Carroll, OH 0 Feb producing 0 May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Pre May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Cumulative wells drilled / drilling Cumulative wells permitted Source: Baker Hughes, Ohio Department of Natural Resources September 30, 2012, DTE analysis 10

86 Natural gas from the Utica Shale is among the lowest cost supplies available Breakeven Cost of Supply1 ($/MMBtu) <2.0 <2.0 Associated gas (from oil plays) Utica 2.2 SW Marcellus breakeven cost of new supply at after-tax 10% IRR Source: Wood Mackenzie, DTE Energy analysis Eagle Ford Granite Wash NE Marcellus Barnett Fayetteville Haynesville 11

87 Utica natural gas production could reach ~2.8 Bcf/d by 2016 and ~ 4.0 Bcf/d by 2020 in our base case Bcf/d Aggressive Base Source: DTE Market Intelligence Modeling More Aggressive 6.5

88 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 13

89 Michigan and Ontario are some of the most liquid trading locations in North America NEXUS Gas Transmission gives producers access to the Michigan and Ontario markets Average Daily Demand of over 6 Bcf Significant summer demand because of storage injections 660 Bcf Michigan, 276 Bcf Ontario Liquidity gives producers flow assurance Producers desire multiple buyers; Markets desire multiple sellers MichCon, Consumers and Dawn Hub are published trading points in Gas Daily and traded on Intercontinental Exchange (ICE) Average daily index trades Bcfd at MichCon, 0.2 Bcfd at Consumers, 1.1 Bcfd at Dawn Hub By comparison, 0.7 Bcfd trades at Dominion South Point and 0.7 Bcfd trades at Henry Hub Markets in Michigan and Ontario have expressed significant interest in index based supply Average Daily Index Trades (Bcfd) Average Daily Demand (Bcfd) Michigan Ontario MichCon 2011 Consumers 2012 Dawn 14 Source: Platt s Gas Daily; DTE analysis; 2012 data through August 23

90 North American Gas Supply Changes Supply changes create challenges & opportunities Western Canada Decline Marcellus/ Utica Midcontinent Growth Growth Gulf Coast Growth Offshore Gulf Decline 15

91 Declining Canadian Supplies and TCPL Deliveries is increasing demand for alternate supplies at Dawn Flows from Alberta into TCPL have declined significantly, reducing available supplies to the Midwest and Eastern Canada Alberta production is declining and demand is increasing By 2016, only 3.0 Bcf/d available for export from Alberta 3.0 Bcf/d available for export 6.5 Bcf/d available for export TCPL Eastern Zone tolls have increased significantly, making it the most expensive source of supply for Eastern Canada and Northeast US TCPL Eastern Tolls CDN $/GJ $1.15 $1.19 $1.19 $1.07 $0.94 $1.03 $1.40 $1.19 $1.64 $2.24 Source: GazMetro LDC Forum/IGUA Presentation Nov

92 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 17

93 NEXUS Gas Transmission links abundant supplies in Utica and Marcellus to nearby large, liquid markets Recap of Key Points The Northeast US has abundant shale resources Utica has some of the lowest cost gas supply in the country Producers are invested heavily in liquids-rich plays, including Utica, where rig count and drilling activity has increased at a fast pace Northeast production is projected to grow substantially in the next few years NEXUS Gas Transmission can move the abundant low-cost Northeast gas to the large demand centers in Ohio, Michigan, and Ontario 18

94 Follow Up Feedback on pipeline Concept Location Identify potential market interest Identify next steps Open Season October 15 November 30, 2012 Open Season available at nexusgastransmission.com 19

95 Contact Information Mark Bering Director, Marketing & Optimization DTE Gas Storage and Pipelines (313) Bob Riga General Manager, Business Development Spectra Energy (617) Rene Dartez Director, Business Development Enbridge Inc. (713) David Slater Senior Vice-President DTE Gas Storage and Pipelines (313) Bobby Huffman Project Director, Business Development Spectra Energy (713) John Potter Project Analyst, Business Development Enbridge Inc. (713)

96 Appendix NEXUS Partners Overview Additional Market Information 21

97 DTE Energy is an Integrated Energy Company Strong, Stable and Growing Utilities ~80% of DTE Energy s Earnings Complementary Non-Utility Businesses ~20% of DTE Energy s Earnings Gas Storage & Pipelines Detroit Edison 10th largest U.S. electric utility 11,000 GW of power generation capacity (82% coal and nuclear) 2.1 million distribution customers in Southeast Michigan Transports and stores natural gas 91 Bcf of gas storage; 538 miles of pipeline Washington 10 Storage Corp. (100%) Vector Pipeline (40%) Millennium Pipeline (26.25%) MichCon Pipeline Company (100%) Bluestone Gathering Company (100%) Unconventional Gas Production MichCon 11th largest U.S. gas utility 139 Bcf of working gas storage capacity; purchases Bcf of gas annually 1.2 million distribution customers in Southeast Michigan 900 Bcf annual throughput Western Barnett Shale Production 67,000 net acres; 489 Bcf of reserves 180 gross producing wells Power & Industrial Projects Owns and operates energy assets Industrial / utility solid fuels Utility services and renewable energy Energy Trading Transports gas on more than 60 pipelines Asset management and sales to major utilities Producer services, including risk management 22

98 Spectra s Diverse Portfolio of Assets 2011 Pipeline Throughput: Transmission Pipe: Storage Capacity: Gathering Pipe: SE Gas Processing Capacity: DCP 4Q11 G&P: DCP 4Q11 NGLs produced: Distribution Pipe: Retail Customers: 4.2 Tcf 19,300 mi 300+ Bcf 64,800 mi 3.3 Bcf/d 6.3 TBtu/d 406 MBbl/d 39,000 mi 1.4 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations 23

99 Enbridge Strategic Position 24

100 MichCon, Union and Enbridge Market Overview MichCon Enbridge Union Gas 1.2 Million 1.9 Million 1.4 Million 19,000 miles 21,000 miles 39,000 miles Annual Throughput Distribution 278 Bcf 400 Bcf 500 Bcf Annual Throughput Transmission 546 Bcf NA 835 Bcf Working Storage 139 Bcf 111 Bcf 157 Bcf Distribution Customers Distribution Main Total of: 4.5 million customers 1.2 Tcf of annual distribution throughput 1.4 Tcf of annual transmission throughput 407 Bcf of working storage 25

101 NEXUS Gas Transmission Bringing New Supplies to Market Ohio Manufacturers Association - October 2012

102 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 2

103 Overview of NEXUS Gas Transmission New pipeline to connect Utica and Marcellus supply in Ohio to U.S. Midwest and Dawn markets Strong development partners - DTE Energy, Enbridge and Spectra 250 mile, large diameter pipeline delivering at least 1 Bcf/d In service by November 2016 Uses existing infrastructure and utility corridors Firm path to Ohio, Michigan and Ontario markets Interest in firm capacity to anchor the project 3

104 NEXUS Gas Transmission - Details Supply Access Central Receipt Point (CRP) in Northeastern Ohio (TBD) Interconnect with Tennessee Gas Pipeline Potentially multiple laterals from processing plants or gathering systems to the CRP, priced separately Market Access Two delivery zones Michigan Zone includes MichCon, Consumers and Vector Ontario Zone includes Tecumseh Storage and the Dawn Hub Access to in-path power and LDC markets in Ohio Possible interconnects with pipeline network in Ohio - Tennessee, East Ohio, Dominion, TCO, Panhandle, ANR Pipeline Details 250 miles from CRP to Michigan Delivery Zone, All of this is new build, primarily in existing utility corridors 36, high pressure pipeline (1200# # MAOP) 330 miles from CRP to Ontario Delivery Zone, Last 80 miles is primarily expansion of existing facilities No new international river crossing required In service as early as November 2016 CONFIDENTIAL 4

105 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 5

106 The Northeast US Appalachian Basin, with its Marcellus and Utica Shales, has the largest natural gas resource base of any US shale basin US Shale Basins and their Natural Gas Resource Base (Tcf)1 Appalachian Basin 156 Tcf 27 Tcf 11 Other US shale basins 163 Tcf 1. Unproved technically recoverable resources Source: PacWest Consulting, EIA, DTE Analysis 66 Tcf 59 Tcf 6

107 The Ohio Utica contains dry gas, wet gas and oil windows Oil Wet gas Dry gas Source: Ohio Geological Survey 4/2/12 7

108 A bottoms-up estimate of Utica s resource potential across three windows suggests recoverable reserves of ~91 Tcf gas, ~4.1 B bbl NGLs, and ~5.7 B bbl oil Total reserves = acreage1 * wells per acre2 * success factor3 * EUR per well4 Gas reserves (Tcf) WV NGL reserves (B bbl) Oil reserves (B bbl) PA 0.4 OH Wet window Oil Dry / LC Total gas window window Wet Dry / LC window window Total NGLs Wet Oil Total oil window window By window, from Ohio Geographic Survey, adjusted by population density. Only includes prospective area and excludes federal lands Assumed 160 wells/acre based on current spacing Higher where wells currently in production; lower the further away from existing production Varies based on actual results by county 8

109 Chesapeake, Chevron, Range, and other leading natural gas producers have acquired substantial acreage positions in the Ohio Utica Utica Acreage by Producer (thousands of acres) 1, Source: Bentek Energy, Unconventional Gas Center, Company presentations Magnum Hunter Gulfport PDC Energy Carrizo 117 REX Energy 150 Consol 185 EV Energy Partners 235 Hess Anadarko EnerVest Range Resources Chevron Chesapeake Energy 300 BP 399 Devon 420 9

110 Utica is a key target of producer investment in liquids rich plays, and has seen dramatic growth in rig count and drilling activity Utica Rig Count Utica Well and Drilling Activity Cumulative Utica wells Other Counties + 14 rigs + 178% 20 Jefferson, OH 405 permitted 400 Beaver, PA Lawrence, PA Noble, OH Belmont, OH Harrison, OH 137 drilled /drilling Coluimbiana, OH Carroll, OH 0 Feb producing 0 May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Pre May2011 Aug2011 Nov2011 Feb2012 May2012 Aug2012 Cumulative wells drilled / drilling Cumulative wells permitted Source: Baker Hughes, Ohio Department of Natural Resources September 30, 2012, DTE analysis 10

111 Natural gas from the Utica Shale is among the lowest cost supplies available Breakeven Cost of Supply1 ($/MMBtu) <2.0 <2.0 Associated gas (from oil plays) Utica 2.2 SW Marcellus breakeven cost of new supply at after-tax 10% IRR Source: Wood Mackenzie, DTE Energy analysis Eagle Ford Granite Wash NE Marcellus Barnett Fayetteville Haynesville 11

112 Utica natural gas production could reach ~2.8 Bcf/d by 2016 and ~ 4.0 Bcf/d by 2020 in our base case Bcf/d Aggressive Base Source: DTE Market Intelligence Modeling More Aggressive 6.5

113 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 13

114 Michigan and Ontario are some of the most liquid trading locations in North America NEXUS Gas Transmission gives producers access to the Michigan and Ontario markets Average Daily Demand of over 6 Bcf Significant summer demand because of storage injections 660 Bcf Michigan, 276 Bcf Ontario Liquidity gives producers flow assurance Producers desire multiple buyers; Markets desire multiple sellers MichCon, Consumers and Dawn Hub are published trading points in Gas Daily and traded on Intercontinental Exchange (ICE) Average daily index trades Bcfd at MichCon, 0.2 Bcfd at Consumers, 1.1 Bcfd at Dawn Hub By comparison, 0.7 Bcfd trades at Dominion South Point and 0.7 Bcfd trades at Henry Hub Markets in Michigan and Ontario have expressed significant interest in index based supply Average Daily Index Trades (Bcfd) Average Daily Demand (Bcfd) Michigan Ontario MichCon 2011 Consumers 2012 Dawn 14 Source: Platt s Gas Daily; DTE analysis; 2012 data through August 23

115 North American Gas Supply Changes Supply changes create challenges & opportunities Western Canada Decline Marcellus/ Utica Midcontinent Growth Growth Gulf Coast Growth Offshore Gulf Decline 15

116 Declining Canadian Supplies and TCPL Deliveries is increasing demand for alternate supplies at Dawn Flows from Alberta into TCPL have declined significantly, reducing available supplies to the Midwest and Eastern Canada Alberta production is declining and demand is increasing By 2016, only 3.0 Bcf/d available for export from Alberta 3.0 Bcf/d available for export 6.5 Bcf/d available for export TCPL Eastern Zone tolls have increased significantly, making it the most expensive source of supply for Eastern Canada and Northeast US TCPL Eastern Tolls CDN $/GJ $1.15 $1.19 $1.19 $1.07 $0.94 $1.03 $1.40 $1.19 $1.64 $2.24 Source: GazMetro LDC Forum/IGUA Presentation Nov

117 Agenda Project Introduction Utica and Marcellus Gas Supply Michigan and Ontario Markets Conclusion & Follow up 17

118 NEXUS Gas Transmission links abundant supplies in Utica and Marcellus to nearby large, liquid markets Recap of Key Points The Northeast US has abundant shale resources Utica has some of the lowest cost gas supply in the country Producers are invested heavily in liquids-rich plays, including Utica, where rig count and drilling activity has increased at a fast pace Northeast production is projected to grow substantially in the next few years NEXUS Gas Transmission can move the abundant low-cost Northeast gas to the large demand centers in Ohio, Michigan, and Ontario 18

119 Follow Up Feedback on pipeline Concept Location Identify potential market interest Identify next steps Open Season October 15 November 30, 2012 Open Season available at nexusgastransmission.com 19

120 Contact Information Mark Bering Director, Marketing & Optimization DTE Gas Storage and Pipelines (313) Bob Riga General Manager, Business Development Spectra Energy (617) Rene Dartez Director, Business Development Enbridge Inc. (713) David Slater Senior Vice-President DTE Gas Storage and Pipelines (313) Bobby Huffman Project Director, Business Development Spectra Energy (713) John Potter Project Analyst, Business Development Enbridge Inc. (713)

121 Appendix NEXUS Partners Overview Additional Market Information 21

122 DTE Energy is an Integrated Energy Company Strong, Stable and Growing Utilities ~80% of DTE Energy s Earnings Complementary Non-Utility Businesses ~20% of DTE Energy s Earnings Gas Storage & Pipelines Detroit Edison 10th largest U.S. electric utility 11,000 GW of power generation capacity (82% coal and nuclear) 2.1 million distribution customers in Southeast Michigan Transports and stores natural gas 91 Bcf of gas storage; 538 miles of pipeline Washington 10 Storage Corp. (100%) Vector Pipeline (40%) Millennium Pipeline (26.25%) MichCon Pipeline Company (100%) Bluestone Gathering Company (100%) Unconventional Gas Production MichCon 11th largest U.S. gas utility 139 Bcf of working gas storage capacity; purchases Bcf of gas annually 1.2 million distribution customers in Southeast Michigan 900 Bcf annual throughput Western Barnett Shale Production 67,000 net acres; 489 Bcf of reserves 180 gross producing wells Power & Industrial Projects Owns and operates energy assets Industrial / utility solid fuels Utility services and renewable energy Energy Trading Transports gas on more than 60 pipelines Asset management and sales to major utilities Producer services, including risk management 22

123 Spectra s Diverse Portfolio of Assets 2011 Pipeline Throughput: Transmission Pipe: Storage Capacity: Gathering Pipe: SE Gas Processing Capacity: DCP 4Q11 G&P: DCP 4Q11 NGLs produced: Distribution Pipe: Retail Customers: 4.2 Tcf 19,300 mi 300+ Bcf 64,800 mi 3.3 Bcf/d 6.3 TBtu/d 406 MBbl/d 39,000 mi 1.4 million Gas storage facility Gas processing plant Propane terminal NGL Storage Shale gas formations 23

124 Enbridge Strategic Position 24

125 MichCon, Union and Enbridge Market Overview MichCon Enbridge Union Gas 1.2 Million 1.9 Million 1.4 Million 19,000 miles 21,000 miles 39,000 miles Annual Throughput Distribution 278 Bcf 400 Bcf 500 Bcf Annual Throughput Transmission 546 Bcf NA 835 Bcf Working Storage 139 Bcf 111 Bcf 157 Bcf Distribution Customers Distribution Main Total of: 4.5 million customers 1.2 Tcf of annual distribution throughput 1.4 Tcf of annual transmission throughput 407 Bcf of working storage 25