Antitrust Class Action related to EDF Whitepaper May 8, 2018 Antitrust Class Action related to EDF Whitepaper

AVANGRID (NYSE:AGR) ~ $32 billion in assets with a presence in 26 states 8 utilities in NE/NY with ~ 3.2 million customers ~ 7.1 GW capacity (3rd largest U.S. wind company) Wind AVANGRID Core Operations Solar Thermal Headquarters in Orange, CT Networks

EDF Whitepaper (October 2017) Unpublished academic paper intended to support regional NGO opposition to interstate gas pipeline expansion The Environmental Defense Fund (EDF) issued an unpublished whitepaper claiming that existing interstate gas transportation capacity in New England is being inefficiently utilized, due in whole or in part to the use of no-notice service that local distribution companies (LDCs) hold on pipelines. The whitepaper incorrectly alleged that LDCs owned indirectly by Avangrid (Southern Connecticut Gas (SCG) and Connecticut Natural Gas (CNG)) and Eversource intentionally“withheld” gas transportation service by scheduling transportation and then not flowing gas on the Algonquin Gas Transmission (AGT) system and, further, that this conduct caused increased natural gas and electricity prices in New England over a three-year period from 2013 – 2016 by as much as $3.6 billion. No alleged tariff or regulatory violations.

Class Action Antitrust Claims (November 2017) Class Action Lawsuit: State antitrust and federal Antitrust Claims (Sherman Act, Section 2 (Unilateral conduct) )– Monopolization and/or attempted monopolization Breiding, et al. v. Eversource Energy and Avangrid, Inc. Class: “Indirect purchasers” – retail electric customers “New England” retail electricity market Relief demanded: Injunctive relief Treble monetary damages based on alleged overcharges Costs, including attorneys’ fees

FERC Inquiry 2017-2018 (February 2018) 3 FERC inquiry closed finding no anticompetitive behavior and no further action (February 2018) “Commission staff took these allegations very seriously and conducted an extensive review of both publicly available and non-public data. On the basis of that review, staff determined that EDF’s study was flawed and led to incorrect conclusions about the alleged withholding. Commission staff found no evidence of capacity withholding.” “no evidence of anticompetitive withholding of natural gas pipeline capacity on Algonquin by NE shippers. FERC will take no further action on the matter.” FERC Press Release issued 02-27-2018

4 Antitrust Issues Filed Rate Doctrine and Federal Pre-emption Precludes antitrust recovery based on rates and tariffs approved by federal regulatory agencies, including the rates and tariffs approved by FERC  FERC exclusively regulates all aspects of wholesale sales of electricity in the ISO-NE auction (including auction prices) pursuant to its exclusive jurisdiction under the Federal Power Act (“FPA”), and it has determined that the ISO-NE auction results in prices that are “just and reasonable.” FERC exclusively regulates the scheduling of service under an interstate pipeline’s tariff, including the flexible scheduling provisions for “no-notice” service.  Preemption: Precludes state antitrust recovery based on federal regulation Congress has granted FERC exclusive jurisdiction under the FPA and the Natural Gas Act (“NGA”)

THANK YOU AVANGRID General Counsel & Secretary Please send any questions regarding this topic to: AVANGRID General Counsel & Secretary R. Scott Mahoney Senior Vice President – General Counsel, Secretary & Chief Compliance Officer (C) 207-458-1220  Scott.Mahoney@Avangrid.com