TM Vector Pipeline

Vector Pipeline

Customer Meeting Scottsdale, Arizona October 10, 2019 TM Vector Pipeline

Pete Cianci President TM Meeting Agenda Vector Pipeline

• Pete – Welcome and Organizational Changes

• Matt – Project and System Update – What’s Next

• Dennis – Capacity Postings – Gas Purchases/Sales – QuickNom Update

TM Organization Vector Pipeline

Service Providers Inc. - EGI TM Vector Pipeline

Matt Malinowski Director, Market Development TM Vector Pipeline

Projects TM New Interconnections Vector Pipeline

N WISCONSIN DTEE BWEC March 2021 ONTARIO Highland MGU-Marshall Dawn April 2019

Chicago Athens SEMCO

Joliet Cassopolis Springville Nov 2019 Peoples Gas NEXUS Nov 2018 Oct 2018 Rover INDIANA June 2018 (1.45 Bcf/d meter) OHIO

8 TM Rover Interconnect Vector Pipeline

• New receipt near Howell, Michigan • Meter Station Capacity-1.45 Bcf/d • Began flowing gas June 2018 • Final ramp-up to 950 MDth/d on Nov. 1, 2019 – Peak volumes over 1.0 Bcf/d – 2019 YTD average – 963 MDth/d

TM Milford Junction Vector Pipeline

• Modifications to allow the Vector-DTE Gas interconnection at Milford, Michigan to be bi- directional allowing for receipt of NEXUS Supply • Installed 0.6 miles, 30-inch “jumper line” to allow lower pressure receipts to flow into the inlet of Vector’s Highland Compressor • First flow in late 2018 • Allows flexibility to sell backhauls with Milford as Primary Receipt Point TM Peoples Interconnect Vector Pipeline

• Peoples Gas – Smith Road Interconnect – New delivery near Manhattan, Illinois with Peoples Gas Light and Coke – 280 MDth/d metering capacity – Predominantly winter-use for supply and redelivery of Michigan storage gas – In-service Fourth Quarter 2018

TM MGU Interconnection Vector Pipeline

• MGU – Marshall Interconnect – New delivery near Marshall, Michigan with Michigan Gas Utilities – 35 MDth/d metering capacity – MGU will primarily use to fill its storage field in the summer months – Annual potential for MGU transport customers into Coldwater market – In-service April 2019

TM SEMCO Interconnection Vector Pipeline

• SEMCO – Cassopolis Interconnect – New delivery near Cassopolis located in Southwest Michigan – 12 MDth/d metering capacity – SEMCO will use to serve this market – In-service November 2019

DTEE Interconnect

TM Vector Pipeline (Proposed)

• DTE Electric – Bluewater Energy Center (DTEE-BWEC) – New 1100 MW powerplant to replace coal – Meters and short lateral to be constructed near St. Clair, Michigan – Receipt meters from Vector 42-inch mainline and DTE Gas – 180 MDth/d load – Test gas 2021 – Plant commercial in-service 2022

TM Vector Pipeline Potential Projects

• /Northern Indiana Markets – Exploring growth within this region • Continue pursuing LDC Interconnects • New powerplants – Phase 2 SJEC (MISO) – 3 other announced developments close to our mainline – Coal retirements in Michigan & Indiana

TM Springville Compressor Vector Pipeline

• Two existing 15,000 hp Solar Mars power turbines • Bi-directional capability installed • New impellers on both gas compressors to handle wide range of flows

• Modified piping for lower flows (recycle loops) • Major construction completed January 2019

TM Vector Pipeline

Recent Operations Scheduled Deliveries TM Vector Pipeline (Includes Longhaul, Shorthaul, Backhaul, Lease and Segmentation)

2,600,000

2,400,000

2,200,000

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

Average Dth/Day Average 1,000,000

800,000

600,000

400,000

200,000

- Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19

Canada U.S. LH Capacity (1.275) Capacity to Dawn (1.745) TM Vector Pipeline Winter 2018/19

Michigan Winter 2018/19 System Peak – 2,969 Dth Receipts January 31, 2019 Wash 10 Bluewater DTE Gas/ NEXUS APL/NBPL Rec – 1,609 Rec – 413 St. Clair 357 1,016 171 1,438 1,193

Guardian Peoples NIPSCO SJEC Marengo & Rover CECO- CECO-Ray 662 108 516 114 Jackson Rec - 947 Hartland 245 29 102

Temperature Range – S.E. Mich. (White Lake): -13°F to -1°F

19 TM Vector Pipeline Joliet Receipts

Dth/d Jan 15, 2019 to Feb 15, 2019

600,000 Upper Midwest 500,000 cold-front

400,000

300,000 Guardian NBPL 200,000 Alliance

100,000

0 2/1/2019 2/2/2019 2/3/2019 2/4/2019 2/5/2019 2/6/2019 2/7/2019 2/8/2019 2/9/2019 1/15/2019 1/16/2019 1/17/2019 1/18/2019 1/19/2019 1/20/2019 1/21/2019 1/22/2019 1/23/2019 1/24/2019 1/25/2019 1/26/2019 1/27/2019 1/28/2019 1/29/2019 1/30/2019 1/31/2019 2/10/2019 2/11/2019 2/12/2019 2/13/2019 2/14/2019 2/15/2019 TM Receipts from Vector Pipeline Pipelines and Storage Dth/d 2,500,000

2,000,000

1,500,000 Stor. & Mich Joliet 1,000,000 NEXUS Rover

500,000

0 Jul-17 Jul-18 Jul-19 Oct-17 Oct-18 Apr-17 Apr-18 Apr-19 Jan-17 Jan-18 Jan-19 Feb-17 Mar-17 Jun-17 Feb-18 Mar-18 Jun-18 Feb-19 Mar-19 Jun-19 Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Nov-16 Nov-17 Nov-18 Aug-17 Aug-18 Aug-19 May-17 May-18 May-19 TM Vector Pipeline Net Deliveries to Michigan LDCs Dth/d 350,000 DTE Gas

300,000 Consumers MGU

250,000

200,000

150,000

100,000

50,000

0 Jul-18 Jul-19 Apr-18 Apr-19 Oct-18 Jan-18 Feb-18 Jun-18 Jan-19 Feb-19 Jun-19 Mar-18 Mar-19 Sep-18 Nov-18 Aug-18 Dec-18 Aug-19 May-18 May-19 Deliveries to US and

TM Vector Pipeline Canadian Power plants (with Annual Average) Dth/d 400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0 1/1/2017 4/11/2017 7/20/201710/28/2017 2/5/2018 5/16/2018 8/24/2018 12/2/2018 3/12/2019 6/20/2019 TM Vector Pipeline Historical BTU Content (Btu/cf @ St. Clair) Year Btu/cf 2012 1026 2013 1035 2014 1045 2015 1054 2016 1054 2017 1051 2018 1065

YTD 1068 TM Vector Pipeline BTU Issues

• Vector’s Tariff has a maximum BTU of 1100 BTU per standard cubic foot • As BTU’s continue to climb, Vector needs to monitor all receipts for out-of-spec gas • Certain interconnecting supply pipelines have much higher BTU limits (or none) • Reduced volumes on west end of the pipeline may cause certain supply points to be shut in by Vector from time to time if Vector cannot blend gas down • NBPL – no explicit BTU limit in their Tariff

TM Turbine Advisory Vector Pipeline

• In August a Product Safety Advisory was issued for one engine at Highland and one at Washington • Vector immediately took the units offline – Critical Notices were issued. • IT-1 was restricted to zero however no Firm services were impacted • Both stations are now back in service – new or replacement equipment has been installed TM Vector Pipeline

What’s Next for Vector TM Vector Pipeline Future Maintenance

• Vector is required to perform its seven-year inline inspections in 2020 per PHMSA regulations • Plan is to perform work in late spring (April and May) • Specific dates will be posted as the details for this job become known. Goal is to post the specific dates late in fourth quarter of 2019 TM Expansion Vector Pipeline

• Michigan-Dawn and Michigan-Chicago spreads are strong during the winter months • Eastbound Expansions: – Vector can expand eastbound capacity from MI storage, Michigan supply or Joliet to Dawn with the addition of loop and compression. – These same expansions also increase our westbound capacity (MI Storage to Joliet markets) • Compression can be modified or added at Joliet to deliver MI supply / MI storage services to markets west of Chicago (Northern Border markets) TM Expansion Facilities Vector Pipeline

N WISCONSIN MICHIGAN Belle River compression Loop west of ONTARIO Highland comp. Dawn

Loop and Chicago Athens compression at Wash. station Joliet

Springville

Joliet compression for westbound delivery INDIANA

OHIO

30 TM Vector Pipeline

Dennis Scheibe Manager, Transportation Services

Capacity Posting

TM Vector Pipeline by Segments

Chicago Markets

Joliet PGL Crown Nexus/ Mich. Belle Dawn Point Rover Stor. River Forward Haul Zone 1 Joliet to Milford Milford to Dawn

“Longhaul” – lesser of Joliet to Milford or Milford to Dawn

Chicago Markets

Joliet PGL Crown Nexus/ Mich. Belle Dawn Back Haul Point Rover Stor. River

Milford to Joliet TM Example of Capacity Posting Vector Pipeline Select Capacity Availability

TM Vector Pipeline Winter 2019/20

Backhauls to Joliet Available from Storage Sold out! from Milford 70,000

Delivery Point Available Crown Point 515,000 Peoples Gas 120,000 Guardian 35,000 TM Winter Forward Spreads from Michigan Vector Pipeline October 4, 2019

19/20 20/21

MichCon to Dawn $0.271 $0.170

MichCon to Chicago $0.281 $0.222

MichCon to Ventura $0.739 $0.635 Contract Path / Secondary

TM Vector Pipeline Points

• Contract and flow patterns may limit Shippers’ abilities to flow to secondary out-of-path points • Secondary In-path: Between primary receipt and primary delivery and in the same direction at contract rate • Secondary Out-of-Path: Outside of the primary receipt or delivery and/or in the opposite direction of the primary path. – Unless explicitly agreed to with Vector, secondary, out-of-path points are not discounted. • Direction Matters! New Tariff Language

TM Vector Pipeline for Gas Purchases/Sales

• Section 43 added to clarify the ability to make operational purchases and sales • Anticipates the periodic sale of gas dependent upon system operating conditions • Baseload quantities sold at the Milford Junction TTS point • Critical Notice will be posted when quantities will be available before the start of bid week • Fixed price bidding • Requires the execution of a NAESB agreement in advance

TM Vector Pipeline QuickNom EBB Update

• Met with several customers • Generally satisfied with QuickNom functionality • Intuitive and easy to use – “user friendly and easy to navigate” – “5+ rating for ease of nominations” – “capacity release functionality is simple and clear” • Easy for customers to cross-train reps • Retain QuickNom based on feedback and cost considerations

TM 2020 Mastio Pipeline Study Vector Pipeline

• Vector participates every other year • We value your candid feedback on our performance • Want to get connected to the appropriate people in your organization to obtain the most meaningful results TM Vector Pipeline

Questions ? TM Vector Pipeline

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