Millennium Pipeline Company, L.L.C. 5 th Annual Customer Meeting October 8, Joseph P. Shields President

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1 Millennium Pipeline Company, L.L.C. 5 th Annual Customer Meeting October 8, 2014 Joseph P. Shields President 1

2 Welcome! 2

3 Our Speakers 3

4 Guest Speakers Presenters James Eckert - VP Commercial Operations, Columbia Gas Transmission, LLC Tracy Halleck Director, Northeast Marketing, Crestwood Midstream Partners, LP Mark Bering VP Business Development, Millennium Pipeline Co., LLC 4

5 Guest Panel David Talley, Manager, Gas Sales, Southwestern Energy Services Anthony Castellano, Operations Manager, Gas Supply, Consolidated Edison Tracy Halleck, Director, Northeast Marketing, Crestwood Midstream Partners, LP 5

6 Vision 6

7 Reliability Firm transportation flows 100% FT2 & IT only sold when there is no impact on FT-1 contracts Strong operations team 7

8 Communication No surprises! Customers see FERC filings 30 days before FERC sees them 8

9 Customer Service Dedicated MPC customer service team 2014 Customer Survey 9

10 Bring Value to our Customers Producers LDCs Marketers 10

11 Organizational Chart Joseph P. Shields * President Audrey Bottari Executive Administrative Assistant Mark Bering * VP Business Development Michelle Brocklesby Director Optimization James Ransom Director of Pipeline Operations John V. Keith * VP Finance & Controller Gary Kruse * VP General Counsel & Secretary William Nyahay Director Market Analysis Christopher Estep Director of Marketing Laura Cosenza Office Administrator Christina Woodburn Records Management/ Contract Administrator Executive Officer * Detailed Org Chart 10/1/14 11

12 Millennium Pipeline Today Dominion Holding Point 200 MM Del Hancock Compressor Station Corning 500 MM Rec 350 MM Del Ramapo 500 MM Rec 850 MM Del Wagoner TCO Interconnect 115 Rec/Del 12

13 Fuel 13

14 Review of Millennium RAM Activity for First Six Months of 2014 RAM Component Projected Volumes as per RAM Filing MDth Review of First Six Months of 2014 Current Fuel 1,400 Fuel quantities are exceeding projected levels. Millennium is monitoring the data and operational changes resulting from the use of its new system. Current LAUF 900 LAUF for the first half of 2014 is below projections. RAM Under-Recovery Surcharge 1,304 Under-Recovery balance is being reduced as expected. Throughput 505,000 Throughput is on pace to meet projections. Maintaining the current RAM rate through March 2015 Based on RAM activity for the first half of 2014, Millennium projects that the RAM under-recovery will be eliminated by the next RAM filing. 14

15 Current Expectations for 2015 RAM Expect to fully recover 2014 RAM surcharge Surcharge component is presently 0.259% of receipt volumes Expect Company Use Gas and LAUF to remain in the range of 0.3% to 0.5% More recent activity reflects higher CUG and lower LAUF Overall RAM rate is expected to be at or below 0.5% Actual RAM rate will depend on Millennium s operations for the remainder of

16 To Summarize Reliability FT-1 flows 100% Communication No surprises! Customer Service 2014 Customer Survey Bring value to our all customers Fuel Maintaining current RAM through March

17 Millennium Pipeline Company, L.L.C. 5 th Annual Customer Meeting October 8, 2014 Mark Bering Vice President, Business Development 17

18 Millennium Pipeline Overview Jointly owned by NiSource, National Grid and DTE Energy Extends 220 miles across the southern tier of New York state Northeast Marcellus Production Multiple receipt points for Marcellus production Interconnects with National Fuel, Empire, Dominion, Columbia, Algonquin and local NY markets Access to storage 18

19 System Configuration in 2014 C H M 19

20 The Supply Picture 1,400,000 1,200,000 1,000, , ,000 Bluestone Laser Independence Stagecoach 400, ,000 - Nov-12 Nov-13 Aug-14 20

21 And Our Markets Nov-12 Nov-13 Aug-14 21

22 Millennium LDC City Gates 80,000 70,000 60,000 50,000 40,000 30,000 Central Hudson Orange & Rockland NYSEG 20,000 10,000-22

23 Flows from Winter 2013/14 Corning 340 MM Avg. 351 MM Peak Independence 62 MM Avg. 94 MM Peak Stagecoach 583 MM Avg. 701 MM Peak Laser 201 MM Avg. 283 MM Peak Bluestone 235 MM Avg. 282 MM Peak Wagoner 38 MM Avg. 84 MM Peak Ramapo 595 MM Avg. 700 MM Peak 23

24 Flows this Summer Corning 243 MM Avg. 261 MM Peak Holding Point 104 MM Avg. 193 MM Peak Independence 54 MM Avg. 86 MM Peak Stagecoach 583 MM Avg. 681 MM Peak Laser 313 MM Avg. 367 MM Peak Bluestone 279 MM Avg. 392 MM Peak Wagoner 50 MM Avg. 61 MM Peak Ramapo 707 MM Avg. 830 MM Peak 24

25 Diversity of Supply on Millennium Stagecoach Laser Bluestone Anadarko Cabot Cabot BG Carrizo Southwestern BP Reliance Cabot WPX Cargill Castleton Chesapeake Merrill Lynch MMGS NJR Energy Services Reliance Repsol Sequent Southwestern WPX * Producers & Marketers with transportation on Millennium or upstream pipelines 25

26 Millennium Accesses Low Priced Marcellus production $/MMBtu $90 $80 Winter 2013/2014 Daily Spot Prices $70 $60 $50 $40 $30 Millennium East Iroquois Algonquin Dawn $20 $10 $0 1-Nov-13 1-Dec-13 1-Jan-14 1-Feb-14 1-Mar-14 26

27 Pipeline Constraints Impact Northeast and Dawn markets Capacity Constraints Millennium East Pool 27

28 Future Expansions to Constrained Markets Capacity Constraints Millennium East Pool 28

29 Expansion Opportunities Algonquin at Ramapo MDthd to serve AIM / Atlantic Bridge Rate of $ $0.62/Dth to Algonquin In service date of Nov 2017 Currently negotiating terms with potential anchor shippers Empire at Corning MDthd to serve Empire expansion to Chippawa and/or TGP 200 at Hopewell Rate of $0.15/Dth to Empire In service date of Nov 2017 with ability to start some volumes as early as Nov 2015 Currently negotiating terms with potential anchor shippers 29

30 Supply / Market Growth Potential 30

31 Improving Customer Service & Communication 31

32 Tariff Changes Summary Responding to customer feedback: Changes to Section 15 Force Majeure Reservation Charge Credits Reverse open season process for planned outages - Voluntary Interruption Commitments Detailed communication & webinar before we file with the FERC 32

33 Reservation Charge Credits Credits calculation changing for planned outages and force majeure events Based on average scheduled volumes 7 days prior to force majeure event or planned outage Shippers no longer required to nominate during an outage to qualify for credits 33

34 Reverse Open Season Process Prior to a planned outage that will impact Firm transportation, Millennium may hold a reverse open season Firm Shippers may temporarily relinquish capacity by bidding in the reverse open season volume, price, term Winning bids will receive Voluntary Interruption Commitments or VIC credits on their next invoice Reduces the impact of a planned outage on remaining Firm transportation 34

35 Customer Survey Goals Understand where we are today so we can improve our customer service Establish Baseline for all customer service categories Identify gaps and weaknesses Develop action item plans 35

36 Customer Survey Overview Customer surveys conducted in September Survey managed by Wayne Rechnitz of Energy Insights Survey categories for Executive, Commercial, Scheduling, Gas Controls, and Back/Middle Office THANK YOU to all those that participated! Final Results of survey to be released late October 36

37 Preliminary Survey Results 85% Participation Rate THANK YOU! Areas we need to focus on include: Our nominations system, system flexibility, better communication with our customers and strategic direction One of the bright spots was our Back Office support contracts and invoicing Overall we heard you say that Millennium is doing a Good job, but not a Great job in most areas We re listening and will respond to your feedback! 37

38 Thank You For Your Business! For more information, please contact: Mark Bering VP Business Development Work Cell 38

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