Project Overview November 2014 1
Team Introduction Alisa Harris, UGI Energy Services VP, Government and Public Affairs E-mail: aharris@ugies.com Lawrence Godlasky, UGI Energy Services Director, Government Affairs E-mail: lgodlasky@ugies.com 2
Project Overview PennEast Pipeline Company, LLC is composed of six partners AGL, NJR, SJI and UGI each have a 20 percent share of the project; PSEG and Spectra each have a 10 percent share Safely and reliably delivering energy to Pennsylvania and New Jersey customers AGL Resources NJR Pipeline Company PSEG Power South Jersey Industries Spectra Energy UGI Energy Services 3
Who is UGI Energy Services? UGI Energy Services is a subsidiary of UGI Corporation, headquartered in Valley Forge, Pennsylvania The UGI name has been known in the region for more than 130 years. Local gas service is provided by UGI Utilities. Our midstream services division builds, owns and operates natural gas storage facilities and high-pressure transmission and gathering lines. UGIES owns and operates LNG and propane peaking facilities and terminals in Pennsylvania. UGIES also owns coal, natural gas and renewable-fueled generating assets (solar and landfill gas to energy). UGIES retail energy marketing division sells natural gas, electricity and liquid fuels to approximately 30,000 business, commercial, industrial, institutional and government customers in nine states and Washington, DC. UGIES is the Project Manager and Operator of PennEast Pipeline. 4
1-Apr-13 16-Apr-13 1-May-13 16-May-13 31-May-13 15-Jun-13 30-Jun-13 15-Jul-13 30-Jul-13 14-Aug-13 29-Aug-13 13-Sep-13 28-Sep-13 13-Oct-13 28-Oct-13 12-Nov-13 27-Nov-13 12-Dec-13 27-Dec-13 11-Jan-14 26-Jan-14 10-Feb-14 25-Feb-14 12-Mar-14 27-Mar-14 11-Apr-14 26-Apr-14 $/MMBTU The Need For New Infrastructure $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 TETCO - M3 Key Dates Date Price 23-Jan-13 $10.42 2-Jan-14 $21.91 6-Jan-14 $55.40 21-Jan-14 $90.35 22-Jan-14 $93.54 23-Jan-14 $34.32 27-Jan-14 $84.05 28-Jan-14 $26.64 Transco - non-ny Key Dates Date Price 2-Jan-14 $20.66 6-Jan-14 $90.40 7-Jan-14 $32.40 21-Jan-14 $135.35 22-Jan-14 $115.03 23-Jan-14 $46.82 24-Jan-14 $54.75 27-Jan-14 $90.05 28-Jan-14 $24.64 10-Feb-14 $19.80 3-Mar-14 $17.00 $0.00 -$0.50 -$1.00 -$1.50 -$2.00 -$2.50 -$3.00 -$3.50 TETCO-M3 TGP-Z4 Marcellus Leidy-Transco Transco-Z6 (non-ny) 5
Need for New Infrastructure Infrastructure has not kept pace with increased demand for natural gas for home heating, industrial uses and electric generation Since 1990, Americans have increased their use of natural gas by nearly 7 trillion cubic feet Existing transmission pipeline capacity is fully subscribed Companies have already reserved 100 percent of PennEast pipeline capacity PennEast will provide locally produced, abundant supply of affordable natural gas to serve New Jersey and Pennsylvania homes and businesses 6
Project Overview General Description Open Season ended August 29, 2014 Plans call for a 36 -diameter*, 108-mile pipeline Approximately 1bcf/day delivered Compression: 32,745 total HP (26,733 available)* Hellertown Lateral *Subject to change based on execution of precedent agreements 7
Project Overview Proposed Route Revised Route Avoid population centers and recent development Avoid growth areas Target co-location areas Account for sensitive environmental, wildlife, archeological and historical areas 8
Hellertown Lateral w/parcels 9
Project Overview Receipt Points 10
Project Overview Delivery Points 11
Project Overview Timeline Timeline Property owners contacted FERC Pre-filing application submitted (October) Open Houses Formal application for PennEast Pipeline filed with FERC (July) FERC issues final decision (December) Pending approvals, construction begins and completed, affordable local natural gas now benefiting local customers 2014 2015 2016 2017 12
Project Overview Pipeline and Compressor Facilities 108 miles of 36 X-70 pipeline 1,480 psig - maximum allowable operating pressure Initial survey corridor: 400 (permanent ROW will be 50 ; temporary ROW about 100 ) Major water crossings: Susquehanna, Lehigh and Delaware Rivers; Beltzville Lake Major road crossings: Pennsylvania Turnpike, I- 81, I-80, PA-22, I-78, NJ-202 13
Environmental Impact NWI Wetlands 131crossings NHD Waterbodies 165 crossings Threatened and Endangered Species Indiana Bat, Bog Turtle, Dwarf Wedge Mussel and proposed for listing Northern Long-eared Bat State Park/Forest/Game Lands 278 acres Important permits/sensitive areas (Appalachian Trail, Beltzville State Park, Frances Slocum State Park, Hickory Run State Park, Delaware River Crossing) 14
Environmental Impact 15
Environmental Impact 16
Permanent Right of Way 17
Permanent Right of Way 18
Stakeholder Contact Agency Consultations - many initiated to date: Delaware River Basin Commission New Jersey Department of Agriculture Pennsylvania and New Jersey Departments of Environmental Protection Pennsylvania Department of Conservation and Natural Resources Pennsylvania Fish and Boat Commission Pennsylvania Game Commission U.S. Army Corps of Engineers U.S. Fish & Wildlife Service National Marine Fisheries Service Susquehanna River Basin Commission 19
Stakeholder Contact Other Identified Stakeholders: Landowners and abutters Elected and public officials Emergency responders Environmental organizations Community and business groups Homeowners Associations Media 20
Federal Energy Regulatory Commission Interstate natural gas pipelines are regulated and authorized by the Federal Energy Regulatory Commission (FERC) Pre-filing Gives landowners, officials and others time to review a project before a Certificate Application is filed Open Houses Hosted by PennEast to provide opportunity for landowners and other stakeholders to learn about the project, talk one-on-one with project experts, ask questions and voice support or concern Public Scoping Meetings Hosted by FERC to provide community additional opportunity for input Certificate Application Filing The formal project application with FERC Permit applications for other federal, state and local agencies Environmental Impact Statement (EIS) PennEast will be engaging a third-party contractor for this in-depth environmental analysis 21
Open Houses 22