Project Overview Erika Young Project Director Business Development - PowerPoint PPT Presentation

NEXUS Gas Transmission Project Overview Erika Young Project Director Business Development August 3, 2016

Appalachian Shale Supply 21 Bcf/d 41 Bcf/d Current Estimate 2025 Avg Estimate Marcellus Estimated Power Production Volumes (Bcfd) 40 Generation 30 City Gate & Power 20 Generation 10 City-Gate Source: Various Consultants Market Growth 0 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Utica Estimated Production Volumes (Bcfd) 40 30 Power 20 Generation 10 Source: Various Consultants 0 Gulf Coast LNG 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 Mexico & Industry 2

NEXUS – Favorable Supply/Demand Dynamics A joint venture between Spectra Energy and DTE Growing & Abundant Diverse Demand Flexibility Marcellus & Liquidity Long-term Value Markets in Great with Storage Utica Supply Lakes Region* • Over 40 Bcf/d of • Peak month demand • Dawn - 2nd largest 950 Bcf of working Attractive basis at supply by 2025 averaged ~26 Bcf/d physical natural gas capacity, 23 Bcf/d Dawn and economic needing an in January 2014 trading hub peak design transport over long- economic outlet • 3.3 Bcf/d increase in • Daily traded volumes withdrawal capacity term • Declining supply to Power Sector Gas at MichCon, Chicago Great Lakes region Demand from 2014 and Dawn have from Gulf Coast and to 2030. exceeded that of Western Canada Henry Hub • LDCs and End-Users connected along the route. *Great Lakes Region - Ohio, Michigan, Illinois, Indiana, Ontario and Wisconsin 3 Sources: CERA; DTE Analysis; Various Consultants

NEXUS - Scope Project Scope: Capacity: 1.5 Bcf/d Design: ~255 miles of 36” pipe 130,000 HP with 4 compressor stations Vector New M&R • Kensington Processing Plant Stations • Tennessee Gas Pipeline • Texas Eastern Ohio Line • DTE Gas Transportation System at Willow Run, MI (delivery) • Dominion East Ohio • Columbia Gas of Ohio Connections Various Ohio LDCs and end-users In-Service: November 2017 Key Advantages: CapEx: $2+ billion • Market pull and producer push project • Project leverages existing infrastructure, minimizing environmental NEXUS is on target for impacts and providing greater access to secondary markets • Northern route through Ohio connects NEXUS to growing market November 2017 in-service demand centers, including power generation and industrials • Connects shippers to growing markets in Michigan and Ontario, with a combined 3 + Bcf/d incremental demand expected by 2025 4

NEXUS Project Schedule NEXUS has consistently met milestones and is on target for a November 2017 in-service date Key Milestones 2014 2016 October Feb/March Placed Compression Order Held 9 voluntary informational sessions in OH and MI March Pipeline Construction Contractors Awarded 2015 January FERC accepted project use of pre-filing process April Filed Supplemental Filing on FERC docket Submitted first drafts of Resource Reports 1 & 10 May Received FERC Notice of Schedule (NOS) February Held 10 Open Houses in OH and MI July Received favourable Draft Environmental April/May FERC held 6 scoping meetings in OH and MI Impact Statement (DEIS) from FERC June Submitted draft Resource Reports November Filed FERC Certificate Application December Received Notice of Application (NOA) 5

Demand Growth Ontario & Québec Combined Annual Demand Outlook TCF/Yr 2.0 Pipeline Fuel 1.5 Power Generation 1.0 Industrial Commercial 0.5 Residential 0.0 2000 2005 2010 2015 2020 2025 2030 Growing natural gas demand continues through 2030 Source: ICF Q2’ 2016 Outlook 6

Union Gas Supply Portfolio System Supply Opportunities Portfolio Today Portfolio - Projected 2018 7

Enbridge Gas Distribution Supply Portfolio System Supply Opportunities Portfolio Today Portfolio - Projected 2018 Niagara WCSB 26% 30% Chicago Dawn 9% 20% NEXUS 15% 8

Utility Supply Portfolio Supply from Appalachia Portfolio’s changing to purchase more natural gas in close • proximity to the market (Appalachia) — Reducing dependency on the Western Canadian supply as ability to move its supply east is declining — Union Gas and Enbridge provide natural gas commodity for 95% of its core residential/commercial market Union and Enbridge were granted approval of long-term • transportation contracts on NEXUS totaling 260,000 Dth/d — Union 150,000 Dth/d — Enbridge 110,000 Dth/d 9

Utility Supply Portfolio The Need for Supply at Dawn The number of customers buying gas at Dawn is increasing • – Union, Enbridge and GMI providing greater access to direct purchase customers to access the liquid Dawn Hub – Union Dawn Parkway system capacity increasing by over 1.2 Bcf/d between 2015 and 2017 • Future growth opportunities – CNG/LNG – Community expansion • Traditional gas supply from Western Canada coming to Ontario has been declining 10

The NEXUS Advantage to End Users NEXUS provides the following advantages with direct access to Utica and Marcellus basins in the Appalachian region :  Diversity of supply which enhances reliability and reduces price volatility  Growing supply basins replace traditional, declining supply sources  Favorable Appalachian basin pricing  Availability of long-term firm transportation capacity during peak demand periods  Lower risk transportation solution via optimal route selection, diverse customer mix and experienced project owners The NEXUS Project Will Supply Abundant And Affordable Natural Gas Supplies To A Region Where Traditional Natural Gas Supply Sources Are Declining 11

The NEXUS Advantage – well connected supply 12

The NEXUS Advantage to Eastern Canada NEXUS provides access to abundant, affordable natural gas supply which will fuel economic growth in Eastern Canada: 1) Industrial growth 2) Refineries Low cost fuel supporting greater efficiency • 3) Transportation LNG/CNG development for transportation reducing environmental footprint • 4) Connecting remote and rural communities Government incentives to facilitate access to natural gas • 5) Power generation Combined heat and power (CHP) • New Natural Gas Power Plants • Natural gas filling the gap during nuclear refurbishments • Natural gas sourced from the Appalachian region will contribute to the economic growth of Eastern Canada 13

Long-term Value of NEXUS Connects growing Long-Term Foundation for Flexible service to supply with Community Economic Growth liquid markets growing markets Investment • Connections provide • Path provides • Approximately one third • NEXUS Investment Utica and Marcellus secondary in-path of route uses existing Focus Areas: production access and access to: infrastructure • Community Vitality flexibility – DTE Gas and DTE • Greenfield route is (Safety) • Demand growth, Electric load centers approximately 87% co- • Education and coupled with declining located in utility – MichCon trading Workforce flow from Western corridors and/or is in hub Development Canada and Gulf Coast agricultural areas will create a need for – DTE storage • Environmental • Diverse set of new supply Stewardship customers – Consumers Energy • Access to growing • 13 market connection – Vector supply basin in close agreements with LDCs, proximity to the Great – ANR Pipeline industrial facilities and Lakes region provides power generators competitively priced, – Panhandle Eastern diverse supply for Ohio, Pipelines Michigan, and Ontario – Dawn Hub consumers NEXUS provides long-term value for its customers, key stakeholders and the communities it serves. 14

Appendix 15

Our Businesses: What We Do U.S. Liquids Western Canada Distribution Field Services Transmission Deliver & store Transport Distribute Produce natural Process & deliver natural gas crude oil from natural gas to gas liquids & natural gas & Canada to homes & process natural gas Midwest U.S. businesses in natural gas liquids Ontario 16

DTE Corporate Overview Strong, Stable and Complementary Growing Utilities Non-Utility Businesses ~80% of earnings ~20% of earnings Gas Storage & Power & DTE Electric DTE Gas Energy Trading Pipelines Industrial Projects • 10th largest U.S. electric • 11th largest U.S. gas utility • Transports and stores • Owns and operates • Transports gas on more utility in the US natural gas energy assets than 60 pipelines • 138 Bcf of working gas – Industrial / utility • 91 Bcf of gas storage; • Asset management and • 2.1 million distribution storage capacity; solid fuels 535 miles of pipeline sales to major utilities customers in purchases 120 – 150 Bcf/yr – Utility services and southeast Michigan • Producer services, • 900 Bcf annual throughput renewable energy including risk management • Fully regulated by the • 1.2 million distribution Michigan Public customers Service Commission • Fully regulated by the Michigan Public Service Commission 17