Millennium Pipeline Company, L.L.C.

5th Annual Customer Meeting

October 8, 2014

Joseph P. Shields

President

1

Welcome!

2

Our Speakers

3

Guest Speakers Presenters

James Eckert - VP Commercial Operations, Columbia Gas

Transmission, LLC

Tracy Halleck – Director, Northeast Marketing, Crestwood

Midstream Partners, LP

Mark Bering – VP Business Development, Millennium Pipeline

Co., LLC

4

Guest Panel

David Talley, Manager, Gas Sales, Southwestern Energy

Services

Anthony Castellano, Operations Manager, Gas Supply,

Consolidated Edison

Tracy Halleck, Director, Northeast Marketing, Crestwood

Midstream Partners, LP

5

Vision

6

Reliability

7

Firm transportation flows 100%

FT2 & IT only sold when there is no

impact on FT-1 contracts

Strong operations team

Communication

8

No surprises!

Customers see FERC filings 30

days before FERC sees them

Customer Service

9

Dedicated MPC customer service

team

2014 Customer Survey

Bring Value to our Customers

10

Producers

LDCs

Marketers

Joseph P. Shields *

President

Audrey Bottari

Executive

Administrative

Assistant

John V. Keith *

VP Finance & Controller

Laura Cosenza

Office Administrator

Christopher Estep

Director of Marketing

James Ransom

Director of Pipeline

Operations

Gary Kruse *

VP General Counsel &

Secretary

Christina Woodburn

Records Management/

Contract Administrator

Organizational Chart

Detailed Org Chart

10/1/14

Executive Officer *

Mark Bering *

VP Business Development

William Nyahay

Director Market Analysis

Michelle Brocklesby

Director Optimization

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Millennium Pipeline Today

12

Hancock

Compressor

Station

Dominion

Holding Point

200 MM Del

Wagoner TCO

Interconnect

115 Rec/Del

Ramapo

500 MM Rec

850 MM Del Corning

500 MM Rec

350 MM Del

Fuel

13

Review of Millennium RAM Activity for First Six Months of 2014

RAM Component

Projected

Volumes as

per RAM

Filing MDth Review of First Six Months of 2014

Current Fuel 1,400

Fuel quantities are exceeding projected levels.

Millennium is monitoring the data and operational

changes resulting from the use of its new system.

Current LAUF 900 LAUF for the first half of 2014 is below projections.

RAM Under-Recovery

Surcharge 1,304

Under-Recovery balance is being reduced as

expected.

Throughput 505,000 Throughput is on pace to meet projections.

Maintaining the current RAM rate through March 2015

Based on RAM activity for the first half of 2014, Millennium projects that

the RAM under-recovery will be eliminated by the next RAM filing.

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Current Expectations for 2015 RAM

15

Expect to fully recover 2014 RAM surcharge

Surcharge component is presently 0.259% of receipt

volumes

Expect Company Use Gas and LAUF to

remain in the range of 0.3% to 0.5%

More recent activity reflects higher CUG and lower LAUF

Overall RAM rate is expected to be at or

below 0.5%

Actual RAM rate will depend on Millennium’s operations for

the remainder of 2014

To Summarize…

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Reliability – FT-1 flows 100%

Communication – “No surprises!”

Customer Service – 2014 Customer Survey

Bring value to our all customers

Fuel – Maintaining current RAM through

March 2015

Millennium Pipeline Company, L.L.C.

5th Annual Customer Meeting

October 8, 2014

Mark Bering

Vice President, Business Development

17

Millennium Pipeline Overview

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Jointly owned by

NiSource, National

Grid and DTE

Energy

Extends 220 miles

across the southern

tier of New York

state

Multiple receipt

points for Marcellus

production

Interconnects with

National Fuel,

Empire, Dominion,

Columbia,

Algonquin and local

NY markets

Access to storage

Northeast Marcellus

Production

System Configuration in 2014

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C

M

H

The Supply Picture

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-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Bluestone

Laser

Independence

Stagecoach

Nov-12 Nov-13 Aug-14

And Our Markets

21

Nov-12 Nov-13 Aug-14

Millennium LDC City Gates

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-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Central Hudson

Orange & Rockland

NYSEG

Flows from Winter 2013/14

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Independence

62 MM Avg.

94 MM Peak

Ramapo

595 MM Avg.

700 MM Peak

Wagoner

38 MM Avg.

84 MM Peak Stagecoach

583 MM Avg.

701 MM Peak

Corning

340 MM Avg.

351 MM Peak

Laser

201 MM Avg.

283 MM Peak

Bluestone

235 MM Avg.

282 MM Peak

Flows this Summer

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Independence

54 MM Avg.

86 MM Peak

Ramapo

707 MM Avg.

830 MM Peak

Wagoner

50 MM Avg.

61 MM Peak

Stagecoach

583 MM Avg.

681 MM Peak

Corning

243 MM Avg.

261 MM Peak

Laser

313 MM Avg.

367 MM Peak

Bluestone

279 MM Avg.

392 MM Peak

Holding Point

104 MM Avg.

193 MM Peak

Diversity of Supply on Millennium

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Stagecoach Laser Bluestone

Anadarko Cabot Cabot

BG Carrizo Southwestern

BP Reliance

Cabot WPX

Cargill

Castleton

Chesapeake

Merrill Lynch

MMGS

NJR Energy Services

Reliance

Repsol

Sequent

Southwestern

WPX

* Producers & Marketers with transportation on Millennium or upstream pipelines

Millennium Accesses Low Priced Marcellus production

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$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

1-Nov-13 1-Dec-13 1-Jan-14 1-Feb-14 1-Mar-14

Winter 2013/2014 Daily Spot Prices

Millennium East

Iroquois

Algonquin

Dawn

$/MMBtu

Pipeline Constraints Impact Northeast and Dawn markets

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Millennium East Pool

Capacity Constraints

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Capacity Constraints

Future Expansions to Constrained Markets

Millennium East Pool

Expansion Opportunities

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Algonquin at Ramapo

200-300 MDthd to serve AIM / Atlantic Bridge

Rate of $0.58 - $0.62/Dth to Algonquin

In service date of Nov 2017

Currently negotiating terms with potential anchor shippers

Empire at Corning

175-300 MDthd to serve Empire expansion to Chippawa and/or TGP

200 at Hopewell

Rate of $0.15/Dth to Empire

In service date of Nov 2017 with ability to start some volumes as early

as Nov 2015

Currently negotiating terms with potential anchor shippers

Supply / Market Growth Potential

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Improving Customer Service &

Communication

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Tariff Changes Summary

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Responding to customer feedback:

Changes to Section 15 – Force Majeure

Reservation Charge Credits

Reverse open season process for planned outages - Voluntary

Interruption Commitments

Detailed communication & webinar before we file with the FERC

Reservation Charge Credits

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Credits calculation changing for planned outages and force

majeure events

Based on average scheduled volumes 7 days prior to force

majeure event or planned outage

Shippers no longer required to nominate during an outage to

qualify for credits

Reverse Open Season Process

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Prior to a planned outage that will impact Firm transportation,

Millennium may hold a reverse open season

Firm Shippers may temporarily relinquish capacity by bidding in

the reverse open season – volume, price, term

Winning bids will receive Voluntary Interruption Commitments

or “VIC” credits on their next invoice

Reduces the impact of a planned outage on remaining Firm

transportation

Customer Survey Goals

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Understand where we are today so we can improve our

customer service

Establish “Baseline” for all customer service categories

Identify gaps and weaknesses

Develop action item plans

Customer Survey Overview

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Customer surveys conducted in September

Survey managed by Wayne Rechnitz of Energy Insights

Survey categories for Executive, Commercial, Scheduling, Gas

Controls, and Back/Middle Office

THANK YOU to all those that participated!

Final Results of survey to be released late October

Preliminary Survey Results

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85% Participation Rate – THANK YOU!

Areas we need to focus on include:

Our nominations system, system flexibility, better communication

with our customers and strategic direction

One of the bright spots was our Back Office support – contracts

and invoicing

Overall we heard you say that Millennium is doing a “Good” job,

but not a “Great” job in most areas

We’re listening and will respond to your feedback!

Thank You For Your Business!

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For more information, please contact:

Mark Bering

VP Business Development

bering@millenniumpipeline.com

845-620-0147 Work

313-404-5567 Cell