TM Vector Pipeline

Customer Meeting October 9, 2014

Overview TM Vector Pipeline

• Welcome – Pete Cianci

• Vector Update – Amy Bruhn & Matt Malinowski

• DTE Update – David Slater Steve Hohf

• Enbridge Update – Bruce Herdman

• Discussion TM Vector Pipeline

Amy Bruhn Manager, Transportation Services

TM Vector Pipeline Vector Update

Web Site Redesign

Tariff Changes

NAESB

Abandonment Cost Recovery

Mastio Survey TM Vector Pipeline Updated Website TM Vector Pipeline Tariff Changes

• Force Majeure definition changed to be consistent with FERC policy • Reservation Charge Credits for Firm Service • Procedures for Posting and Awarding Capacity • Reservation of Capacity for Potential Expansion Projects TM Vector Pipeline NAESB Version 2.1 Standards

• Published April 30, 2013 but not yet approved by FERC. Possible NOPR in the Spring with Fall implementation, including changes to the gas day

• Location common codes eliminated and replaced with proprietary codes

• Some field name changes

• Behind-the-scenes data set changes TM Vector Pipeline Gas-Electric Coordination

• Gas nomination schedule changing to improve coordination of natural gas and electricity markets. • Comments in response to FERC NOPR RM14-2-000 due November 28

TM Vector Pipeline The Gas Day is Changing

Current FERC Proposal NAESB Proposal 9 a.m. Gas Day Start 4 a.m. Gas Day Start

Nomination Gas Flow Nomination Gas Flow Nomination Gas Flow Cycle Timely 11:30 a.m. 9:00 a.m. 1:00 p.m. 4:00 a.m. 1:00 p.m. start of gas day

Evening 6:00 p.m. 9:00 a.m. 6:00 p.m. 4:00 a.m. 6:00 p.m. start of gas day

ID 1 10:00 a.m. 5:00 p.m. 8:00 a.m. 12:00 p.m. 10:00 a.m. 2:00 p.m.

ID 2 5:00 p.m. 9:00 p.m. 10:30 a.m. 4:00 p.m. 2:30 p.m. 6:00 p.m.

ID 3 4:00 p.m. 7:00 p.m. 7:00 p.m. 10:00 p.m.

ID 4 7:00 p.m. 9:00 p.m. TM Vector Pipeline Abandonment Cost Recovery

• The National Energy Board (NEB) issued its Reasons for Decision (RH-2- 2008) for the Land Matters Consultation Initiative (LMCI) Stream 3 in May 2009, whereby it required regulated Group 1 and Group 2 pipelines to file for future abandonment cost recovery mechanisms.

• Vector’s physical abandonment plan was filed with the NEB, reflecting estimated future abandonment costs of $4.8 million ($CAN).

• Vector’s proposed abandonment cost collection and set aside mechanisms was filed with the NEB on May 31, 2013 and approved on June 5, 2014.

• Future abandonment costs are to be collected from shippers commencing January 1, 2015 over a period of 40 years and placed into a trust for safekeeping.

• The abandonment surcharge is proposed to be CAN $0.0004 per GJ, but is still illustrative. It will be charged similar to the ACA surcharge. Filing of abandonment surcharge to be made with NEB by December 5, 2014. TM Vector Pipeline Mastio Customer Survey

• Baseline Requirements – Items a company is expected to be competent in • Conscious Differentiators – Actively drive supplier selection decisions • Latent Differentiators – Correlate highly to customer satisfaction • Low Impact – Parity with competitors is sufficient TM Vector Pipeline Baseline Needs

Firm gas transportation is highly reliable.

Scheduled gas volumes are accurate.

Timely transmittal of invoices.

Competitive pricing of service.

1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Conscious Differentiators

Integrity of transportation provider.

Accuracy of gas metering statements & invoices.

Timely notification before initiating restrictions.

Contract negotiations are handled efficiently.

Historically dependable in meeting commitments.

1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Latent Differentiators

Ease of doing business.

Timely resolution of problems.

Ease of structuring credit arrangements.

Personnel respond quickly to requests.

Quality of pipeline initiated communications.

Direct access to ample & diverse supply.

Ease of use of Vector's website.

1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Low Impact

Operational information is readily available.

Ease of pipelines system for nominating & reporting.

Expertise of personnel.

Ease of use of the QuickNom system.

Straightforward capacity release system

Easy to contact the right person for help.

Representatives who listen well.

Contract execution handled efficiently.

1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Vector vs. The Industry

Firm gas transportation is highly reliable. Scheduled gas volumes are accurate. Accuracy of gas metering statements &… Competitive pricing of service. Timely notification before initiating… Contract negotiations are handled efficiently. Operational information is readily available. Ease of system for nominating & reporting. Expertise of personnel. Straightforward capacity release system Personnel respond quickly to requests. Easy to contact the right person for help. Representatives who listen well. Quality of pipeline initiated communications. Direct access to ample & diverse supply. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Industry 2014 TM Vector Pipeline Survey Action Plan

We continue to seek areas where we can improve: • Posting monthly calendar of planned maintenance. • Additional training for the scheduling staff • Adding a back-up for the scheduling hotline TM Vector Pipeline

Matt Malinowski Manager, Market Development

TM Vector Pipeline Vector Update

Year in Review Operations Expansion / Open Season Near Term Opportunities Scheduled Deliveries TM Vector Pipeline (Includes Longhaul, Shorthaul, Backhaul and Segmentation)

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000 Average Dth/Day 600,000

400,000

200,000

- Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

Canada U.S. Long Haul Capacity TM Vector Pipeline Winter 2013/14

Winter 2013/14 System Peak – 2,340 MDth January 7, 2014 Storage Wash 10 Bluewater DTE Gas APL/NBPL Rec - 1793 Rec - 547 St. Clair 195 58 22 455 Del - 1231

Guardian NIPSCO Jackson DTE Gas Consumers Del - 352 Del - 137 Del - 80 Del - 433 Del - 107

TM Vector Pipeline

Operations TM Vector Pipeline 2014 Compressor Work Completed • Springville Unit #2 exchanged – Spring 2014

• Athens engine exchanged – Spring 2014

• Rebuilt exhaust stacks at Washington – Spring 2014

• Highland Compressor Assembly – September 2014 TM Vector Pipeline Washington Stacks Old vs New TM Vector Pipeline 2014 Pipeline Maintenance

• Pipeline Integrity Work - 42-inch system – Competed in Canada in September – Currently occurring on U.S. 42-inch – Multiple sites for exposure and inspection – Verifying data from 2013 smart pigging TM Vector Pipeline 2014 Pipeline Maintenance TM Vector Pipeline 2014 Pipeline Maintenance TM Vector Pipeline Future Maintenance

• Pipeline Integrity Work - 36-inch system – Scheduled for Nov. 10-14 – 5 to 8 sites for exposure and inspection – Verifying data from 2013 smart pigging – Reduced pressure required – Will impact firm! TM Vector Pipeline Future Maintenance

• Springville Unit #1 – replace entire control system – Scheduled for November 2014 (2-3 weeks) – Older equipment no longer OEM supported – Eventually impacts all Springville and Highland engines – Also replacing engine due to runtime TM Vector Pipeline 2015 Proposed Work

• Additional electronic upgrades throughout the system due to older equipment being obsolete • New SCADA system • Continue engine exchanges and other preventative maintenance • No impacts to Firm expected

TM Vector Pipeline

New Facilities TM Vector Pipeline Potential Interconnects • Greenfield South – New delivery in Ontario for a 300MW Power Plant – Commercial In-Service 2015

• Chicago Markets - 2015 – Provides direct access to large LDC market

TM Vector Pipeline

2017 Expansion Vector

TM Vector Pipeline Expansion Capabilities

• Short Haul Lake Huron WISCONSIN MICHIGAN • Scalable Incremental Capacity • Lease Line Loop • Potential Compression

Lake Michigan Washington ONTARIO Highland Dawn (Union) Detroit

Chicago Athens Lake Erie Joliet Springville TM Vector Pipeline 2017 Expansion • Will physically expand the east side of Vector in a scalable project – Up to 54 miles of 42-inch loop between Milford Junction and Belle River – Potentially adding compression at Washington and Belle River – Other station upgrades as needed • Vector has a PA with Nexus and is working with ET Rover to be anchor shippers for a 2017 Expansion

TM Vector Pipeline 2017 Expansion • New supply of 1.3 to 2.1 Bcf/d • Expiring Capacity on Vector will be reserved for this project:

Date Capacity Available (Dth/d) Dec 14 – Mar 15 68,885 Apr 15 – Oct 15 78,885 Nov 15 75,885 Dec 15 – Mar 16 435,885 Apr 16 – Oct 16 431,028 Nov 16 456,600 Dec 16 – Mar 17 541,600 Apr 17 – Oct 17 566,028 Nov 17 capacity will

be reserved for Nov 17 859,347 expansion TM Vector Pipeline Open Season • Currently conducting a Binding Open Season for capacity for November 2017 • All conforming bids will be considered including new supply receipts to Dawn, Joliet to Dawn and backhauls • Bids are due Tuesday, November 4th, 2014 by 4 p.m. ECT

TM Vector Pipeline Timeline

• Fall 2014 – Initiate Engineering and Environmental Field Surveys • Winter 2014 – Conduct Open Houses, Agency and Stakeholder Outreach • Winter 2014 – Begin FERC/NEPA Pre-filing process • Summer 2015 – FERC 7(c) Application • Spring 2016 – FERC issues EA or EIS • Fall 2016 – FERC issues certificate • Winter 2016 – Initiate Construction Clearing • Spring 2017 – Commence Construction • November 2017 – Target In-Service Date

TM Vector Pipeline

Available Capacity TM Vector Pipeline Capacity

• 68,885 Dth/d available Dec. 1, 2014 • 91,885 Dth/d available April 1, 2015 • Seasonal or annual service on these shorter term volumes • Shippers should bid on this during Open Season if considering long term transport

TM Vector Pipeline Weather Predictions TM Vector Pipeline Weather Predictions

• The Old Farmer’s Almanac states “Winter will be colder than normal..” and for 2015 “Summer will be hotter than normal…” for the Lower Lakes Region • This publication is correct about 2/3rds of the time! • Don’t get caught out in the cold, get your space reserved on Vector soon!

Vector PipelineTM

Questions

Gas Storage and Pipelines Business Update

Vector Shipper Meeting October 9, 2014

Gas Storage and Pipelines (“GSP”) is one of DTE Energy’s non-utility businesses

Strong, Stable and Growing Complementary Non-Utility Utilities Businesses ~80% of DTE Energy’s Earnings ~20% of DTE Energy’s Earnings DTE Electric Gas Storage & Pipelines • 10th largest U.S. electric utility • Transports and stores natural gas • 2.1 million distribution customers • 91 Bcf of gas storage; 535 miles of pipeline in Southeast Michigan  Washington 10 Storage Corp. (100%) • Fully regulated by the Michigan Public Service Commission  Vector Pipeline (40%)  Millennium Pipeline (26.25%)  DTE Michigan Gathering Holding DTE Gas Company (100%) • 11th largest U.S. gas utility  Bluestone Gathering Company (100%) • 138 Bcf of working gas storage  Proposed NEXUS Gas Transmission capacity; purchases 120 – 150 Bcf of gas annually Power & Industrial Projects • 1.2 million distribution customers in • Owns and operates energy assets Southeast Michigan • 900 Bcf annual throughput  Industrial / utility solid fuels • Fully regulated by the Michigan  Utility services and renewable energy Public Service Commission Energy Trading • Gas Midstream Services • Transports gas on more than 60 pipelines • Asset management and sales to major utilities • Producer services, including risk management

2 DTE is developing a gas midstream business with multiple growth platforms

Michigan Gathering Marcellus Platform

Michigan Platform

Utica Platform

NEXUS Gas Transmission Pipeline Gathering Storage

3 A key theme across the platforms is to provide midstream services in growing shale regions

Millennium Pipeline & Expansions Proposed NEXUS Gas • Includes Storage, • 182 mile pipeline traversing Transmission Michigan gathering northern tier of Marcellus • ~ $1.5 billion investment projects, Vector Pipeline, • DTE stake ~ $500 million and DTE Gas Bluestone Gathering and Pipeline • Strong customer support • Investigating expansions • Connects Southwestern Energy • Target in-service late 2017 related to shale gas and Cabot production to inflows Tennessee and Millennium

4 Marcellus production growth drives Millennium expansions

Bi-directional flow Hancock Compressor New Dominion Interconnect Station (15,000 HP)

• Millennium providing services East and West Minisink Compressor (1.2+ Bcf/d) Station (15,000 HP)

• Bluestone deliveries ramping up to 650 MMcf/d

• Laser ramping up to 400+ MMcf/d

• Minisink Compressor increases capacity to Ramapo to 675 MMcf/d; 6/1/13 in-service

• Hancock Compressor increases capacity to Ramapo to 820 MMcf/d; 4/3/14 in-service

• New interconnect with Dominion (200 MMcf/d)

5 Bluestone Lateral and In-field Gathering System (Susquehanna Gathering – “SGC”)

Bluestone lateral

Connects Southwestern Energy (SWN) and Cabot gas production to the Tennessee and Millennium pipelines • 44.5 miles of 16” & 20” pipeline • 2 delivery points: Capacity of 278 MMcf/d SWN Production Area Summary to Millennium and 300 MMcf/d to TGP • Core Range Area: ~50,000 acres • 15,260 HP of compression in-service; • 75 wells flowing spread over 45 8,720 HP planned for June 2015 well pad locations • In-service dates to market pipelines:  Tennessee Pipeline: 11/28/2012  Millennium Pipeline: 5/11/2013

In-field gathering - SGC

The in-field gathering system connects SWN’s wells to the Bluestone lateral • ~ 60 miles of 12” high pressure steel + 16” plastic pipeline • 3 Compressor Station Locations with total of 38,100 HP in-service; 7,620 HP planned for June 2015

6 NEXUS Gas Transmission Overview

• New pipeline to connect Appalachian basin supply to upper Midwest markets

• Strong lead development partners - DTE Energy and Spectra Energy

• 250 mile, large diameter pipeline delivering at least 1.5 Bcf/d

• In service date of November 2017 for the greenfield project

• Increased access to Appalachia production will provide reliable, cost- effective supplies of natural gas to local distribution companies, industrial users and natural gas fired electricity generators

• With commitments from upper Midwest LDCs and Appalachia producers, NEXUS has sufficient market support to advance development of the project

NEXUS connects Appalachian Shale to Midwest markets 7 NEXUS route is significantly de-risked

• Approximately 1/3 of route is using existing infrastructure

• Only one river crossing (Maumee)

• No new international border crossings or cross border permits

• Greenfield route is 75% co-located in utility corridors

• OPEN project in-service November 2015

• Phase I NEXUS capacity in-service Kensington November 2015

• Significant engineering work completed TETCO OPEN to date

Clarington • Government relations and stakeholder outreach work well underway

8 Overview of existing storage business

DTE Energy Gas Washington 10 DTE Gas Asset Map Field / Capacity Bcf Bcf Washington 10 66.0 Six Lakes 40.0 Washington 28 15.6 West Columbus 22.5 Shelby 2 9.6 Columbus 16.3 Total 91.2 Belle River 60.0 Total 138.8 Less Utility (85.4) Third Party 53.4

Customer Mix LDC’s 26% LDC’s 21% Pipelines 19% Pipelines 0% Marketers 52% Marketers 72% Banks 3% Banks 7%

LEGEND

Service Territory

Transmission Pipeline

Storage Field

Compressor Station

Vector Pipeline

9 Long-term storage outlook: Overcast but pleasant

U.S. Supply / Demand Growth Cumulative Five-Year Growth; Bcf/d

Supply Growth Outpaces Demand Growth Outpaces • Over the past five years, the Demand Growth Supply Growth tremendous growth in U.S. 12.7 shale production outpaced the 12.4 corresponding growth in 11.5 demand 10.2 • Forecasts for the next five Consumption years anticipate demand growth exceeding supply, with increased LNG exports and pipeline exports to Mexico Production Consumption Production • These factors will tighten the supply / demand balance and LNG Exports support upward pressure on natural gas prices and volatility – both positive signs for the

Exports to Mexico gas storage market Exports to Mexico

2009 – 2014 2014 - 2019

Source: Wood Mackenzie 10 Questions?

11 NORTH AMERICAN GAS FUNDAMENTALS

Bruce Herdman ENBRIDGE INC.

Vector Pipeline Customer Meeting

Charleston, SC October 9, 2014 Legal Notice

This presentation includes certain forward looking information (FLI) to provide Enbridge shareholders and potential investors with information about Enbridge and management's assessment of its future plans and operations, which may not be appropriate for other purposes. FLI is typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Although we believe that our FLI is reasonable based on the information available today and processes used to prepare it, such statements are not guarantees of future performance and you are cautioned against placing undue reliance on FLI. FLI inherently involves a variety of assumptions, risks, uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in our FLI. Material assumptions include: expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approvals for Enbridge’s projects; anticipated in-service dates and weather.

Our FLI is subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, construction schedules, weather, economic and competitive conditions, exchange rates, interest rates, commodity prices and supply and demand for commodities, including but not limited to those discussed more extensively in our filings with Canadian and US securities regulators. The impact of any one risk, uncertainty or factor on any particular FLI is not determinable with certainty as these are interdependent and our future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, we assume no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLI in this presentation is expressly qualified in its entirety by these cautionary statements.

This presentation may make reference to certain financial measures, such as adjusted net income, which are not recognized under GAAP. Reconciliations to the most closely related GAAP measures are included in the MD&A filings and/or Supplementary Financial Information available on our website or in the slides that accompany this presentation, if applicable. 45 2014 started with extreme winter weather that broke physical market records and triggered spikes in gas prices

Polar Vortex

Record daily gas and power demand Highest NYMEX in 30 mos. Largest 1-day NYMEX move Record weekly $100 gas in Boston storage withdrawal $70 gas in Chicago

Propane prices spike near $5/gal at Conway in January 46 46 A Polar Vortex safety moment: Don’t do this!!

47 Lower 48 storage started the injection season at its lowest level since 2003 and will end up below recent norms

Expected end of season inventory: 3.4 – 3.5 Tcf, well below 5-year normal.

Extreme cold during Winter 2013/14 “polar vortex” and resulting record gas demand led to highest winter storage drawdown on record; lowest start to the injection season since 2003

48 Source: EIA Robust production from the Northeast and a cool summer have contributed to strong storage injections this year and…

Source: NOAA Source: Average of Consultants

49 …have led to a narrowing of the storage deficit

End of Season Deficit: <400 Bcf

Beginning of Season Deficit: 865 Bcf

50 Source: EIA Gas prices have been highly correlated to the storage deficit; prices have been falling as the deficit narrows

Gas prices rose by over $2 as the storage deficit As the storage deficit fell more than quadrupled off, Nymex price followed between November and suit February

Source: EIA 51 Appalachian gas production should continue its strong growth trajectory for some time…

Appalachian Production 30

25 Utica 20

15 Marcellus BCF/d

10

5

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: 2014 Enbridge Fundamentals View 52 In particular, the Utica shale is an emerging play where production is set to increase substantially

1000 600 900 Average Daily Production Rate Permits Issued for Utica Drilling 800 500 700

600 400 500 300 MMcfd 400

300 200

200 No. of Permits 100 100

0 0 2011 2012 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2009 2010 2011 2012 2013 2014

Average Daily Production By County 2nd Q 2014

County MMcfd

CARROLL 404 BELMONT 155 NOBLE 109 MONROE 101 HARRISON 86 Others 119

Source: Ohio DNR 53 E&P improvements are providing almost exponential gains in efficiency and productivity

• Greater horizontal drilling • Faster drilling speed • Longer lateral lengths • Defined sweet spots • Increased frac stages • Frac technology better matched to • Fit-for-purpose rigs geology • Quicker spud-to-spud times 54 Source: EIA Ongoing improvements in drilling technologies have rapidly increased efficiency and reduced costs

Southwestern’s Improved Efficiency in the Fayetteville

55 Source: Southwestern Energy Shale gas in the Northeast, South and WCSB account for most of North America supply growth

• The Northeast will provide the most production growth over the next decade • WCSB growth driven by NGL-rich plays & supply for LNG projects

56 Source: 2014 Enbridge Fundamentals View There are several compelling reasons to support higher future WCSB gas supply

NGL Value Competitive Cost

Colossal Resources

Foreign investment 57 LNG Exports Hedging Duvernay & Montney plays will lead supply growth in the WCSB

2013 Resource Assessment of the Montney by NEB/AER/BCOGC:

• Huge areal extent: 130,000 km2 • Marketable natural gas = 449 Tcf (think Marcellus) • Marketable NGL = 14.5 billion barrels • Marketable oil = 1.1 billion barrels

2012 Resource Assessment of the Duvernay by AGS and AER: • P90 natural gas = 353 Tcf • P90 NGL = 7.5 billion barrels • P90 Oil = 44.1 billion barrels

58 WCSB shale and rich gas plays are very competitive

6.00 2014 Average Breakeven Cost for Select Plays

5.00

4.00

3.00 Mcf US$/ 2.00

1.00

0.00

59 Source: Wood Mackenzie 1H2014 Gas Tool Exploitation of rich gas and de-risking of LNG supply leading to higher gas rig counts in the WCSB; points to higher gas (and NGL) production ahead

250 Average Monthly WCSB Gas Rig Count

Most active winter since 2010 200 2014 Most active summer since 2008 2013

150 Rigs

2012 100 Active Gas Gas Active

50

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

60 Source: Beaver Drilling, Baker Hughes Increased development of the Montney and Duvernay plays, to exploit rich gas and support LNG exports, will drive long-term growth in the WCSB

20 WCSB Gas Productive Capacity

18 History Forecast 16

14

/d 12 Bcf 10

8

6

4

2

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Horn River Duvernay Montney Conventional

61 Source: 2014 ENB Fundamentals View The upside risk to Lower 48 gas demand is growing with recent EPA legislation and additional LNG and industrial project announcements

LNG Export Outlook Remains Strong Proposed changes to the US approval process could result in a greater volume of exports, creating EPA Clean Power Plan upside for US exports Announced Industrial Demand Robust EPA Estimates that the plan will create 3.3 Bcf/d Chemical project of Additional Gas Demand announcements swell to For Power Generation 148, worth $110B

Sources of Upside Risk to Demand

62 Power generation and new industrial gas demand growth will be strongest in the South and Midwest with more growth post-2020

70 4

557 266 533 1,770 139

223

199 546 3 6

1,592 2,161

996

35 79 2013-2025 (mmcfd) 354 Coal retirements = 6,617

Industrial = 2,916

63 Source: ENB, Average of Consultants North American LNG exports to Asia should be competitive and will boost gas demand

North American LNG Exports 14

12

10 BC Bcf/d 8

6

4 US

2

0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

64 Source: 2014 ENB Fundamentals View Growing Mexican gas demand and increasing reliance on piped imports will be an important market balancer in the near term

Upside Risk Downside Risk

Growing Mexican economy 6th largest shale gas resource in the world 40+ announced gas-fired power Constitutional amendment projects (25 GW by 2026); allowing private investment in oil Mexican Cross Border Capacity by 2015 strong industrial growth and gas sector Limited Pemex development of Government desire to be less Current Capacity 2.6 Bcfd resource – reallocation of capital dependent on piped imports towards oil projects Los Ramones 2.1 Bcfd Northwest 0.77 Bcfd Key basins threaten by water Pipeline bottlenecks within Other Laterals/Expansions 0.59 Bcfd shortages and drug gangs Mexico Total ~ 6 Bcfd 65 Source: 2014 ENB Fundamentals View Flows on the TCPL mainline have been “high” as WCSB production is attracted to export and eastern Canadian markets but are expected to decline over time

• Flows east on TransCanada mainline have remained over 3 Bcf/d so far this summer, largely due to high levels of yearly contracting incentivized by uneconomic IT flows • The Alberta storage deficit will only be alleviated by lower exports or higher production

Empress Volumes 6.0 Annual Monthly 5.0

4.0

3.0 Bcf/d

2.0

1.0

0.0

Contracted Flowed Future Contracted

66 Source: TransCanada, Bentek Appalachian gas will push into the South while traditional flows from the Gulf will flip to serve LNG exports and Mexico

Major change in gas flows between 2014 and 2025

2.7 LNG 4.8 WCSB Exports (0.6)

0.9 (0.9)

Appalachia Rockies 0.6 2.0 3.0 0.7 LNG Exports 1.4 0.6 1.0 (0.7) Red = Decrease Mid Continent Blue = Increase 0.6 2.2 0.7 1.3 Only Flows > 0.3 Bcf/d shown 1.7 Permian Gulf Coast 1.7 5.0 (0.7)

MX 0.5 2.3 GoM Exports LNG 67 Offshore Source: ENB Fundamentals View (GPCM 1) - July 2014 Exports Many projects have been proposed to provide market access for strongly growing Appalachian gas supply

Spectra/DTE NEXUS Pipeline TETCO Uniontown to Gas City Rockies Express, ET Rover + 5.4 BCFD

68 Source: Range Resources (modified) Appalachian infrastructure constraints expected to begin easing in 2015 – Midwest is a takeaway capacity focus area

Strong production growth in Appalachia…gas pushing into other markets

Alliance

Canadian supplies relatively unaffected by REX reversal Northern Border

Vector

Rex East – West, 1.8 Bcf/d

Rockies gas to be NGPL, Texas Eastern, 0.35 Bcf/d increasingly displaced by 0.75 Bcf/d Texas Gas Utica supplies 0.58 Bcf/d Several projects ANR, proposed to 0.6 Bcf/d take gas South

• First target market has been new infrastructure into the constrained US Northeast • Next markets have been Ontario and lower Midwest, displacing some Canadian and Rockies supplies respectively • Gas increasingly to flow South from both the Midwest and directly from Appalachia via backhauls • REX East – West displaces Rockies gas, but Canadian and N.D. supply to Midwest will be relatively unaffected

69 Source: ENB Gas & NGL Fundamentals View (GPCM 1) - July 2014 Summary

. US gas production will be rising – seems set to surprise to the upside . Upstream technologies still continuing to evolve and improve . Associated gas (from oil) and rich gas volumes continue to increase . Appalachia will be the epicenter of growth . Canadian gas production will increase as producers target NGLs and de-risk acreage for LNG projects . Gas demand trying to catch up with production growth

. Any significant demand growth is still a couple of years away…but, then a Super-Cycle?? . Industrial projects under construction; LNG projects look to be proceeding; MX exports . Gas-fired generation will gain from MATS and EPA Clean Power rule but, renewables are expanding market share (mostly at the expense of gas) . Traditional gas flows are becoming “history”

. US gas generally wants to flow South (to southern US markets, Mexico or offshore) . WCSB gas will increasingly be pulled (by LNG) & pushed (by Appalachia) west . Henry Hub prices should increase moderately with support from new demand . Northeast basis will fluctuate with growing supply and lumpy capacity additions . Generally, basis in supply areas is widening to Henry and some regional basis in market areas is narrowing to Henry 70

TM Vector Pipeline

Discussion

Vector PipelineTM

Thank You