Southern Natural Gas Customer Working Group Meeting Houston, Texas April 19, 2018

Welcome Krysta Henry Scheduling Representative Good afternoon, this is Krysta Henry with SNG Scheduling and Customer Working Group Coordinator. Thank you for calling in and being in Houston for those that are able to attend in person, we appreciate you taking time out of your busy schedules to participate. Those that are on the phone are you able to hear us? (Pause 1.2.3) Ok great. We are not going to mute the line so that we can keep the meeting collaborative and informal and we are able to have open discussions. We ask you to please do not put us on hold though and if you have lots of people around please be aware of the noise for the presentation. We are excited to get together with those that are in Houston today and to discuss the 2017/2018 Winter, recent Customer Working Group requests, and some upcoming DART enhancements. Krysta Henry Scheduling Representative Customer Working Group Coordinator

Agenda Operations 2017-2018 Post-Winter Review Scheduling Department Update Contracts & Capacity Release Update Contact Information & Next Steps During the presentation today you will hear from Gina Mabry about the 2017-2018 Post Winter Review Katie Cornutt and Cathy Soape will discuss the Scheduling Department updates Sherry Noack will speak to the Contracts and Capacity Release Updates and I will be sharing some updated contact information and our Next steps for the Customer Working Group. I am now going to pass it over to Gina Mabry

Gina Mabry Gas Control Manager 2017-18 Post-Winter Review Gina Mabry Gas Control Manager

Operations Agenda 2017-2018 Post-Winter Review Weather and Throughput Supply and Storage OFOs Maintenance

2017-2018 Post-Winter Review SNG’s facilities performed well during the extended cold Compressor stations staffed 24x7 as needed Horsepower reliability Selma back in service a month early Limited windows for system recovery Storage assets were heavily utilized Freeze offs and supply shorts created system challenges 12 days of OFO system mean ranged from 24 to 41 Sustained cold not just during peak morning/evenling loads Type 6- 17 days. Avoided a Type 3, needed supply on the system after no time to rebuild linepack

Where does January 2018 rank? SNG Deliveries Only New peak day record- January 18, 2018 Highest month on record Third highest LDC month on record SNG/EEC Deliveries: Highest Power demand day for any winter month on record

Weather and Throughput

Winter Heating Degree Days (HDDs*) 2013-2018 In 2014, coldest month was January, but in 2015 February was the coldest month January 23% above 30 year average – 2016/2017 anomoly as we did not see the cold last January *HDD = 65 Degrees Minus System Mean Temperature

SNG Year on Year Deliveries* (MDth/d) 2018 Jan- Feb 2017 Jan- % Change LDC 1,425 1,113 28% Power 1,098 1,011 8.5% Industrial 196 203 -3.4% Interconnects 372 322 15.6% TOTAL 3,091 2,649 16.6% Average winter daily deliveries *EXCLUDES DELIVERIES INTO STORAGE

Average January Daily Deliveries 2010-2018

Supply and Storage

January 2018 Supply by Location * 12 Month average ending June

January CSS/ISS Storage Withdrawal vs. HDD Storage assets were heavily used by customers no restrictions were necessary due to adequate inventory levels.

Customer CSS Inventory

OFO’s Issued to protect you. Hourly takes, putting in an intraday nomination for gas that was already taken at the start of the gas day Conscious of what happens when you take gas that is not scheduled The Type 3 doesn’t protect against supply not showing up. Reason we needed the type 6.

OFO’s Used to protect system integrity and primary firm Type 3 OFOs were in place 35 days Nov-Feb 18 days in January 12 consecutive days with system means below 41 Of those, 6 in a row were below 30 degrees Limited windows for system recovery Type 6 OFOs were implemented when necessary to protect under deliveries to the system 12 days of OFO system mean ranged from 24 to 41 Sustained cold not just during peak morning/evenling loads Type 6- 17 days. Avoided a Type 3, needed supply on the system after no time to rebuild linepack Weather Forecast – system means in the 40’s and 80’s are where demand starts to approach capacity Day of week – weekday demand exceeds weekend/holiday demand Expected duration of heavy demand Recent history Nominated deliveries Actual takes from the system higher than entitlements

System Demand/Mean Temps/OFOs January 2018 *MAD=Market Area Deliveries

System Demand/Mean Temps/OFOs January 2018 vs 2017 *MAD=Market Area Deliveries

Maintenance

Maintenance Ongoing Hydro-test on the 2nd North Main Line Segment 130 operating capacity = 275 Mdth/d Pipeline remediation on 2nd NML west of Tarrant Unit maintenance at Ocmulgee compressor station Segment 530 operating capacity = 695 Mdth/d Maintenance pigging Bear Creek shut in test April 24-30

Maintenance SNG has 647 scheduled outages for 2018 Monthly outage call Completed 181 Remaining 466 Monthly outage call 3rd Wednesday of each month at 1:30PM CST Reliability Minimize number of unplanned outages Minimize impact to customers

Gas Control Contacts Gina Mabry – Manager (713) – 420 – 3685 (office) (281) – 744-8666 (cell) gina_mabry@kindermorgan.com Kal Dankovich – Outage Coordinator (713) – 420 – 7522 (office) kalman_dankovich@kindermorgan.com Jimmy Reese – Lead Controller (713) – 420 – 7310 (office) jimmy_reese@kindermorgan.com Daniel Mitchell – Lead Controller (713) – 420 – 5874 (office) daniel_mitchell@kindermorgan.com

Questions?

Scheduling Overview Katie Cornutt DSR Scheduling Manager Cathy Soape WEAR Scheduling Manager Notes:

Agenda Scheduling Department Updates Winter Scheduling Look Back & Notices Scheduling Prioritization List Review

Transportation/Storage Services Cross-Training Initiative In October 2017, SNG Scheduling reorganized its scheduling team Katie Cornutt – Manager, Daily Scheduling Reps for SNG Cathy Soape – Manager, Evening & Weekend Scheduling Reps for SNG & TGP In Winter 2017, TSS began an effort to cross-train the Scheduling Managers and the SNG/TGP WEAR team Management On – Call Rotation effective April 2, 2018 Katie Cornutt, Cathy Soape, & Debbie Vasquez (TGP DSR Manager) now share coverage responsibility on a weekly rotation. The WEAR Team was cross-trained to handle TGP & SNG (“Eastern Region”) on a rotational basis

Eastern Region TSS Management Team Sherri Glazebrook Director-Scheduling Transportation/Storage Services Houston Headquarters Katie Cornutt Manager-Scheduling Cathy Soape Debbie Vasquez

Southern Natural Gas DSR Team Both moved over from TGP and great addition to our team as Senior Reps.

Eastern Region WEAR Team

Winter Scheduling Look Back

SNG Pipeline System South Main North Main Cypress Line East Leg West Leg SESH South Georgia 1.8 bcf/d capacity 2.4 bcf/d 0.8 bcf/d North Louisiana Zone 0 Zone 1 Zone 2 Zone 3 Elba Express 0.7 bcf/d capacity 1.6 bcf/d capacity Ocmulgee Gwinville Wrens Enterprise Elba Island Bear Creek Muldon Thomaston

Historically Constrained Areas Many constraints have been consistent with years past North Louisiana - Onward (Segment 30) Southeast Supply Header (SESH) #606700 ETC Tiger/SNG SESH #606400 EGT/SNG SESH FGT-Suwannee (pin #600258) Ellerslie Compressor Station (Segment 490) New constraints in Winter 2017/2018 Selma (Segment 460) Rankin (Segment 400) Duncanville Lateral (Segment 90) Always tight through 400 due to it being in the path for storage – additionally the north system supply that increased this winter and made its way south.

Restrictions & OFO Overview Scheduling Perspective Factors considered in scheduling Contracted No Notice – doesn’t have to be nominated and forecasted usage needs to be reserved Receipts downstream of constraint increase SNG’s ability to deliver Actual takes from the system vs entitlements Expected duration of heavy demand As soon as a new restriction and/or priority level is identified an updated pipeline conditions report is posted. Notes: OFOs are used to protect primary firm services

Pipeline Conditions Notice We do include OFO’s in effect. Would it help to include warnings also? Or would that cause confusion?

Pipeline Conditions Posting Do you like this notice and the frequency? Timely each day and IF there are changes Would including OFO Warnings on this notice be helpful or cause confusion? Would any other additional information be helpful on this notice?

DART Prioritization List Update Scheduling Items

Recently Completed Add Totals to Cut Notices Up/Dn Arrows cause Rec Qty (Gross), Del Qty (Net), Up Rank/Del Rank, Dn Rank/Rec Rank, Rec Loc Prop/Up ID Prop, and the Del Loc Prop/Dn ID Prop to increment/decrement. New Report- All Activity for GID New Report format Buy/Sell Activity by Location Keeps summary view Suppress Zeros on Reports Exclude 0’s from reports when nominated volume= 0. Shipper summary Shipper detail Operator summary Operator detail

In Progress: Confirmation Changes SNG will be introducing a Sub-Cycle indicator starting May 1st, which will allow Operators to control the volume they would like to confirm and roll from cycle to cycle. Operators can confirm their volume at Timely Cycle and set the sub-cycle indicator to “yes.” The Pipeline will not confirm over that specified volume for the gas day.

In Progress: Confirmation Changes New Feature we have added is our Sub-cycle indicator. This will allow the confirming party to hold a specified volume for that day. Double Click

In Progress: Confirmation Changes There are two levels to confirm at: Location and Transaction. Each day is treated as a new day. Whatever is confirmed for Timely Cycle is what will roll for that day. *Note- Volumes will not roll across multiple days.

In Progress: Copy Batch Enhancement To copy a previously submitted batch: Batch MUST be in submitted status Right click and select “copy”

In Progress: Copy Batch Enhancement On add screen enter the new date range, cycle, etc.

In Progress: Copy Batch Enhancement The meters and volumes will copy into the new batch If contracts in the copied batch are no longer valid you will get an error and will need to nom with a valid contract

In Progress: Zero Fill Line Items If you enter a Timely transaction that does not go through the end of the month, Dart will build the transaction with a zero for the remainder of the month. This is to save you from having to re-enter that transaction if you decide to use it again before the end of the month. Is this feature utilized or could it be removed without causing problems for users? We think it could enhance performance

Open Scheduling & Reporting Items WNVL003_RS Scheduled Qty Shipper Summary Report Subscription

Newly Requested Scheduling & Reporting Items It would be useful to find a way to edit Path Rank directly from the Capacity End Point screen.  Ideally a shipper could see results on the Capacity End Point screen, then change the path ranks for the next cycle, and re-submit without having to open the Contract Path Ranking screen, find the path and submit from there. Creating a column on the MDQ Utilization screen that captures just the total nomination on FT, FTNN, MFTE, etc. as it was previous Dec 1, 2017 Is it possible to change the sort order in the Report Subscription adhoc windows? For example, in the WIVL9000, could we sort in alpha order instead of GID numeric order? It might be useful to break the Petal Storage Interconnect into separate receipt and delivery points.  For example, when we nominate both a Petal withdrawal and a Petal injection, any constraints on the downstream end of the withdrawal will flow back to the supplier on the upstream end of the injection if rankings are not correct. 

Scheduling Open Forum

DART Contracts & Capacity Release Update Sherry Noack Contracts Manager

Open Contracts & Capacity Release Items Ranked #7 - Capacity Release Viewing: Add more Filters for on screen viewing of capacity release marketplace transactions (All Offers/Awards) - i.e., include/exclude Replacement Shipper Role, biddable/non-biddable. Complete. Migrate to Production 4/18 Ranked #8 - Capacity Release Award Audit Report: Present in a printable format similar to Premier/ENB058. Currently only exists as an Excel spreadsheet. User Test. Plan to migrate to Production 5/16

Contracts & Capacity Release Open Forum

SNG Contacts & Next Steps In talking with customers, we heard feedback that they would like an updated contact sheet with our ice handles for the DSR’s so we have created a reference chart for you. In addition, we have the newly combine Eastern WEAR team, Gas Control, Account Manager, and Contract Administration contacts as well in case you need to reach out to any of us.

DSR Scheduling Contacts Katie Cornutt, DSR Manager (713) 420-5648 katlynn_cornutt@kindermorgan.com  Ice Chat Handle Krysta Henry (713) 420-3023 krysta_henry@kindermorgan.com Khenry4 Adam Ivy (713) 369-8922 adam_ivy@kindermorgan.com AIvy Tracy Minter (713) 420-7030 tracy_minter@kindermorgan.com Tminter Greg Pollard (713) 420-7149 gregory_pollard@kindermorgan.com Gpollard1 Carol Whatley (713) 420-3889 carol_m_whatley@kindermorgan.com CWhatley SNG Hotline (713) 420- 7213

WEARS Scheduling Contacts Cathy Soape, WEAR Manager (713) 420-3814 cathy_soape@kindermorgan.com  Ice Chat Handle Mandey Allen (713) 369-9369 mandey_allen@kindermorgan.com Mallen11 Virginia (Ginger) Bryan (713) 420-6135 virginia_bryan@kindermorgan.com Gbryan5 Todd Davis (205) 325-7440 todd_davis@kindermorgan.com Tdavis23 Charlotte Hawkins (713) 420-4873 charlotte_hawkins@kindermorgan.com Chawkins4 Nicole Lang (713) 420-5992 nicole_Lang@kindermorgan.com Nlang Phyllis Miller (713) 420-3738 phyllis_miller@kindermorgan.com Pmiller7 Ahsan Mohammad (713) 420-5644 ahsan_mohammad@kindermorgan.com Amohammad Jill Overman (713) 420-3450 jill_Overman@kindermorgan.com Joverman Jeremy Rainwater (713) 420-6385 jeremy_rainwater@kindermorgan.com Jrainwater David (Scott) Sokira (205) 325-7313 david_sokira@kindermorgan.com Ssokira Debra (Debbie) Tweedy (713) 420-5289 debra_Tweedy@kindermorgan.com Dtweedy Norma Villarreal (713) 420-3924 Norma_Villarreal@kindermorgan.com Nvillarreal

SNG Contacts Gas Control Contacts: Gina Mabry, Manager (713) 420-3685 gina_mabry@kindermorgan.com Kal Dankovich, Outage Coordinator (713) 420-7522 kalman_dankiovich@kindermorgan.com Jimmy Reese, Lead Controller (713) 420-7310 jimmy_reese@kindermorgan.com Daniel Mitchell, Lead Controller (713) 420-5874 daniel_mitchell@kindermorgan.com Commercial Contacts: On-Call Account Manager   (800) 315-0575 Walter Coe (205) 325-3708 walter_coejr@kindermorgan.com Lisa Guthrie (205) 325-3816 lisa_guthrie@kindermorgan.com Jerry Nelson (205) 325-7257 jerry_nelson@kindermorgan.com

SNG Contracts Contract Administration Contacts: Sherry Noack, Manager (713) 420-3764 sherry_noack@kindermorgan.com Shari Jones (713) 420-3710 shari_jones@kindermorgan.com Marquette Williams (713) 369-9336 marquette_williams@kindermorgan.com Natarsua Player (713) 369-9871 natarsua_player@kindermorgan.com Dayna Owens (713)420-5952 dayna_owens@kindermorgan.com Lindsay Sanford   (713)420-2382 lindsay_sanford@kindermorgan.com SNG Contract Administration Hotline (713) 369-4455

Next Steps Prioritized List Returned by May 25, 2018 Next Customer Working Group WebEx Meeting August 16th at 1:30 PM CST Now that we have presented some of the newly requested items as well as gone over remaining items, we will compile the list and email it out to be prioritized and returned SNG by May 25th. Currently we have our next CWG WebEx scheduled for August 16th which follows our Quarterly method of hosting WebEx’s Do you all feel that Quarterly meetings works for you and your business? Or is this too frequent? Or would it be better to meet 2 times a year instead? We want the WebEx calls to be an efficient use of your time. It does not have to be DART related, does anyone have any final questions or comments? Thank you to everyone for being in attendance today and for calling in to participate in our CWG.