What is the Outlook? Aggregation of IRPs and other planning docs. A consensus regional perspective. Can be read/downloaded at: http://www.nwga.org/2014-gas-outlook

Recent Gas Demand

Demand Composition

2014 Outlook Forecast

Residential Demand

1st Year By Outlook Year

Demand Scenarios

T-South to Huntingdon Firm AOS InterrupLble 200 400 600 800 1,000 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Daily Volumes MMcf/d Jan 24 Feb 4-­‐10 Dec 5-­‐20 Design Capacity 1702 MMcfd High Flow Periods Daily Avg. (MMcf/d) December 5-20 January 24 February 4-10 1724 1711 1675 Firm AOS InterrupLble Gas delivered to Huntingdon supplies: •  FortisBC Vancouver & Vanc Island •  Northwest Pipeline •  Ferndale & Cascade Pipelines and Sumas Energy

NWP Kemmerer North Historical Peak Day Scheduled Scheduled Dekatherms 500,000 1,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Scheduled Dekatherms Historical Peak Day Scheduled

Capacity limits on Westcoast coincides with price spikes 2013-14 Fundamentals $0 $5 $10 $15 $20 $25 $30 50 45 40 35 30 25 20 15 10 5 Normal HDD Portland HDD Sumas Price Stanfield Price Kingsgate Price 9 Sumas - $27 Stanfield - $24 Kingsgate - $15 Feb 6 Peak Prices Prolonged Cold 500 1,000 1,500 2,000 Mainline Flow Mainline Capacity Sumas Flow Sumas Capacity $/Dth Heating Degrees Westcoast Flows - Mcfd Capacity limits on Westcoast coincides with price spikes Significant Cold

2013-14 Takeaways > Capacity –  Sufficient to meet existing requirements –  Lots of gas being shipped IT on Spectra and GTN –  Less flexibility due to high utilization on critical days –  Northwest entitled its system for 11 days –  Spectra hit capacity limits twice –  Constraints can cause price escalation >  Storage Capacity –  Customers relied heavily on storage during cold weather –  High value asset