Connecting communities

to cleaner energy

2016 Millennium Shipper Meeting

Welcome Joe Shields
Vision

To become the premier pipeline in the Northeast

To attain the highest customer service rating
To attain the highest reliability rating
To bring added value to customers contracts
To provide quality staffing to meet our customers needs

Our vision is to provide you with the best customer experience

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2016 In Review

TransCanada Pipelines acquires Columbia Pipeline Group

Millennium ownership interest is unchanged
TransCanada 47.5%
DTE 26.25%
National Grid 26.25%

Ownership change is transparent to your service

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2015 Customer Survey Actions

Increased communication through customer newsletter and

customer conference calls
New and additional staff
On-going and direct communications with the Navigates team

We use your feedback. Please continue to participate in

the survey process.
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 Millennium Organization
Joe Shields -
President

Erin Fennell
Executive
Marketing
Assistant

Ron Happach Rick Gardner John Keith VP Georgia Carter

Michelle Hook
Chief Operating SVP Business Finance & VP & General
Director Outreach
Officer Development Controller Counsel

Michelle
Patrick Riban Audrey Bottari Christina
Mike Armstrong Steven Leggett Brocklesby Jeff Reavis Mgr
Mgr System Executive Admin Woodward
Director PM Project Acct Director Optimization
Design Asst Records Mgmt
Optimization

Randy Parker Riochi Giles Cynthia Castro

Project Mgr Business Analyst Staff Accountant

Bruce Page
Project Mgr

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2016 Customer Survey

2016 Energy Insights Customer Survey conducted by Wayne Rechnitz

90% participation rate
Thank you to all those who took the time to provide feedback
This is the best tool we have to measure how well we are meeting customer needs
70% of the participants agree that Millennium Pipeline provides exceptional service, 1%
disagree
78% of the participants agree that Millennium Pipeline is committed to improving its
customer relationships, no one disagrees
53% of the participants agree that Millennium provides better service than other pipelines,
up from 27% percent last year

We have listened to feedback and strive to improve

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Customer Survey Results

8.3 8.2
8.0 8.0 8.0
7.7
7.6

2014
2015
2016

General Senior Mgnt/ Commercial Noms & Sched/ Mid/ Gas Overall
Biz Dvlpmnt Navigates Bk Office Control Average

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2016 Themes Opportunities for improvement
A stronger relationship between Millennium and its interconnected pipelines is desired
Better communication about operational challenges
Confusion on cuts
Reliability and lack of flexibility
Intraday cuts impact production
Less flexibility on where gas can be shipped
Navigates
Improved, but information is difficult to obtain
Confusion in regards to cuts
Concern over viability of expansion projects given the regulatory climate
Customers are willing to help in any way possible
Expansions are critical to customer success

The Millennium team is developing a plan and will report

back in the newsletter

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Operational Update
Ron Happach
O&M Construction Projects
Major 2016 Mainline Work - Completed
Corning CS Turbine replacement
Minisink CS Additional station piping testing, installation of vessels and station valving
Hancock CS Turbine repair and maintenance
Major 2016 Mainline Work Still Remaining
Potential cleaning pig run from Corning to Bush Hill to coincide with major work at Bluestone
Major 2017 Planned Mainline Work
Add Launcher / Receiver near Stagecoach Interconnect
Reduces run time for pigging activities
ILI Runs
Corning to Bush Hill
Westtown to Ramapo
Minisink turbine change-outs (2 units)

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Reliable Firm Service

Customers experienced ONE interruption in service

60,000 dth impact to eastern deliveries
Outage due to:
Scheduled maintenance at Minisink
Unplanned outage on another pipeline

Firm service has been reliable flexibility has presented a

challenge

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The 24 Pipeline Section

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Four Year Supply History

Supply continues to increase, bringing value to Millennium shippers

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Four Year Interconnect History

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2015/2016 Winter Flow Summary

Direct connected markets average ~200 MM

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2016 Summer Flow Summary

Direct connected markets average ~165 MM

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 Commercial Update
Michelle Brocklesby

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Customer Service Reorganization

MPC Customer Service team

Missy McNamara
Teri Pollack
Ebere Bolton
Contracts
Keri Crawford
Gas Control
Charleston, WV

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 Navigates Changes

Nov 2015
Gas/electric coordinate background
processes
Begin phased implementation of point
consolidation (one receipt/delivery point)
Scheduling process improvements
2016
Point consolidation completed
Pool tolerances set to zero

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Firm Transportation

Ramapo capacity
provides flexibility for
Wagoner deliveries

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 Three Year IT History

Factors impacting IT
Warmer winter
Higher load factor on
firm capacity
AIM construction
MPC maintenance

Significant drop in IT volumes 2015 to 2016

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Two Year East Pool Volume History

East pool liquidity on the rise in 2016

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Tariff Changes
Fuel
April 1 - Retainage rate of 0.512% established
September 1 - Zero fuel rate becomes effective
We continually evaluate fuel retention
The expectation is that it will be returned to approximately the same rate (0.512%)
Clean Up
Clarifications to the sale and purchase of operational gas
Negotiated commodity, fuel, and surcharges for capacity releases
Discretionary waivers
Coming soon
Section 4 restructuring
All concepts have had support and have been approved by FERC on other pipelines such as Columbia Gas
Transmission
Providing more flexibility for contracting available capacity
Lining up MPCs Section 4 with other previously accepted Section 4s
Mapping of changes coming soon
Spot pricing
New rate schedules LFT (lateral firm transport), LIT (lateral interruptible transport)
Customer meetings, conference calls to discuss all filings

Our goal is to make it easier for customers to conduct business

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Available Capacity

November 1 - West side capacity available

42,500 dth/day Stagecoach to Empire
50,000 dth/day Stagecoach to Dominion
10,000 dth/day Stagecoach to Arlington
April 1 - West side capacity available
10,000 dth/day Stagecoach to Empire
As we did this past year review ability to delivery additional capacity to Holding
Point

If interested in available capacity please contact

Michelle Brocklesby
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Business Development
Rick Gardner
 Valley Lateral Project Description

7.9 Mile 16 Lateral to CPVs

Proposed 650 MW Combined Cycle
Power Plant
Reduces regional dependency on older
less efficient power plants
Improves electric pricing for New York
energy consumers

Competitive Power Ventures is the

sole customer

New market directly attached to Millennium up to 127,200 dth/d

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Valley Lateral Project Regulatory Status
We anticipate a FERC order on Valley
Lateral in October
Construction will be conditioned on receipt of
Clean Water Act authorizations
NYSDEC decision on MPCs 401 Water
Permit due by Nov. 23, 2016
We have met all Clean Water Act standards
Valley Lateral Project vs Constitution
Also greenfield, but much smaller - 7.8 miles of
16-inch pipeline
Will cross most streams and wetlands by
trenchless method
Will serve gas fired generation facility that
received air/clean water permits from NYSDEC

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ESU Project Overview

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Eastern System Upgrade (ESU)

Increases capacity between Corning and Ramapo by

approximately 220,000 Dth/day
Customers are Northeast Utilities
Customers are seeking diversity of supply
Increased supply at Ramapo benefits both New York
and New England energy consumers
Ramapo is a major supply point for New York State
utilities and power plants

Millennium will be posting the remaining capacity shortly

20,500 Dth

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 Outlook for ESU Project
FERC Authorizations
Filed July 29, 2016 after six months in pre-filing;
July 2017 approval requested.
Initial comments on ESU at FERC relatively light.
NYSDEC Authorizations
Need air and 401 Water Permits from NYSDEC.
NYSDEC must act on MPCs 401 Water Permit by July 2017.
No statutory deadline for action on air permits.
ESU vs Constitution
7.8 miles of looping along existing ROW
Adding compression at existing station; also constructing new station
Market pull

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ESU Highland Compressor Station

Millennium strives to be a good neighbor, >.5 mile to nearest residence

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Other Potential Projects
Additional deliveries to Ramapo based on customer demand
Ability to construct an incremental 300,000 Dth/d at approximate system rate
Expand interconnect with Dominion at Holding Point
Preliminary investigation
Changes in piping, addition of filter separator
Estimated capital is within our blanket FERC authority
Capacity 100,000 Dth/d
Expand interconnect with Empire at Corning
Preliminary investigation
Change in piping
Estimated capital is within our blanket FERC authority

Millennium strives to provide cost-effective supplies to the market

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Break
Regulatory Update
Georgia Carter
We Operate in Interesting Times

FERC at a crossroads
Under fire from environmentalists
Down to three Commissions
Two Republican vacancies
Impacts of a new administration?
Natural gas facing political challenges in NY
Will air and water permits be issued?
What is happening with the Constitution litigation?
At issue: How broad is a states authority under the Clean
Water Act?
What does this mean for Millennium projects?

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 NY Regulatory Environment for 2016 Projects
Difficult year in New York for natural gas projects.
NYSDEC rejected Constitutions 401 Water Permit on Earth Day.
Constitution immediately appealed the NYSDEC rejection to the 2 nd
Circuit.
Briefs filed in September & October; oral argument set for Nov. 16.
NYSDEC has not acted on air permits for Iroquois & Dominion
projects
Both have had FERC approval for months.
No deadline for states to act on Clean Air Act applications.
NGA gives pipelines a remedy at the DC Court of Appeals for a
states failure to act.
Iroquois has filed at DC Court of Appeals to compel NYSDEC action
Dominion has not pursued a remedy in court at this time.
Uncertainty over 401 Water Permits pending at NYSDEC.
Clean Water Act requires state action no later than 1 year after
application.
NYSDEC decision on Algonquins Atlantic Bridge 401 Water Permit
due 11-18-16 and on MPCs Valley Lateral Project on 11-23-16.
The next 12 months will tell us a lot.

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New York ISO
John Broyles
Questions on any topics?