Renewable Natural Gas Presentation to OFA, April 1, 2016 Sarah Van Der Paelt Director of Distribution Business Development and Strategic Accounts

2 Union Gas – A Spectra Energy Company 1.4M 70,000km Retail Customers Of Pipeline Of Storage underground 160 Bcf2,300 $7.2B EmployeesIn Assets In Property Taxes Paid/Year $65M$2B Annual Revenue

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4 Biogas to Renewable Natural Gas Biogas to RNG Clean Up Hamilton WWTP Injection Station Hamilton WWTP On Farm Anaerobic Digester Huron County

5 Emissions Reduction Renewable Natural Gas (RNG) can reduce Ontario emissions by up to 8 MtCO2e Achieved through the replacement of up to 16% of Ontario’s conventional natural gas supply by 2030

6 Ontario RNG Potential by 2030 Source: Alberta Innovates Technology Futures, May 2011 “Potential Production of Renewable Natural Gas from Ontario Wastes Notes: Agri = agricultural AD = anaerobic digestion Res = residential MSW = municipal solid waste WWTP = waste water treatment plant

7 Ontario RNG Potential by 2020 Source: Distribution of RNG project types as forecasted by utilities. RNG volumes based on 2% of utility system supply (223 M m3/yr). *Includes residential source separated organics and commercial organic wastes..

8 Collaborating with Industry for RNG Working with the Canadian Biogas Association to have RNG included in the Climate Change Action Plan Provide a policy directive to the Ontario Energy Board that a Renewable Natural Gas supply program needs to be established in 2016 to ensure supply is available at the start of 2017 Based on a Renewable Portfolio Standard (RPS) approach Interim 2020 target volume of RNG to be purchased by Union Gas and Enbridge o Up to 2% of system gas supply Review of the RNG purchase mechanism after an interim period – perhaps 2020 Offsets – Expedite the development of an “Organic Waste Digestion” protocol

9 Use of Proceeds Bill 172 includes the establishment of the Greenhouse Gas Reduction Account, which directs how the use of the Cap & Trade proceeds should be used In addition to an RPS to establish a Renewable Natural Gas program, discussions are underway regarding the GGRA to support capital costs. These could include: –Anaerobic digesters –RNG clean up technology –Natural gas pipeline extensions and injection stations necessary to connect RNG projects