1. ISA Toronto Enbridge Gas Distribution Program Incentives & Case Studies January, 2011

2. Agenda Enbridge Overview Demand Side Management (DSM) Programs M&T Program and Case Study Steam Saver Example

3. Enbridge Gas Distribution Inc. Serve approx 1.9 million customers Deliver approx 420 billion ft³ (12 billion m³) annually Over 33,000 km of Pipeline

4. Demand Side Management All energy reduction programs are reviewed by the Ontario Energy Board (OEB) Enbridge has assigned targets for energy reduction There is a financial incentive for Enbridge through a Shared Savings mechanism All costs, including lost revenue and incentive dollars are built into the rates Incentive programs for energy reduction are offered to all rate payers including residential, commercial, multi-residential and industrial

5. Demand Side Management Since 1995 Enbridge has saved almost 4.4 billion cubic meters of Natural Gas That’s the equivalent to serving about 1.4 million homes for one year

6. Energy Solutions Consultant (ESC) The benefits to an Energy Solutions Consultant are numerous It is a FREE service They are available to assist our clients with the implementation process for any energy efficiency program (capital and operational improvements) Assist customers through entire incentive process

7. Technical Assessment Incentives We can assist in both the technical and financial aspects of a technical assessment Our Energy Solutions Consultants are available to support your energy goals Funding can be provided at rate of 50% up to a set maximum according to chart shown

8. Technical Assessments Boiler Assessments –50% funding according to chart –Enbridge assistance from technical resources and combustion analyzers –Specific focus or plant wide studies Steam trap surveys –50% funding according to chart –To a maximum of $10 per trap Other studies –Talk to your ESC about the scope!

9. Project Implementation Incentive Enbridge incentives are calculated on projected first years natural gas savings ESCs must approve each project and should be actively involved in the early stages A one time incentive of $0.08/cubic meter will be awarded if projects meet our requirements.

11. Energy Measurement and Information Program Measurement or information acquisition activities –meters, data collection, IT initiatives, calibration, etc

12. Energy Measurement and Information Program Comprehensive and complete M&T/EMIS/EM systems gets additional funding –Software, modeling, data mining, analysis, training, sensors, communications, etc

13. Conditions Customers are free to apply for funding from both the Energy Assessment and Energy Measurement and Information programs in 2011 An annual maximum funding level exists for Energy Measurement –$10,000 for energy information –Additional $10,000 for energy management

14. Example

17. M&T Case Study The Customer: –Ivaco Rolling Mills is a steel and rod rolling facility located in L’Orignal –The mill is a very large user of both electricity and natural gas and is always looking for ways to improve efficiency –They had done a number of individual projects and were ready to do more!

18. EMIS Enbridge worked closely with Ivaco and Enviors Consulting to install a plant-wide Energy Management Information System (EMIS) The system used Montage, a web based software package that tracked key inputs, modeled energy targets and tracked actually energy use. The system gathered data from a total of 65 electrical and gas meters!

19. People are key! Ivaco realized that staff involvement was critical An energy team was created made up of staff from each of the mill’s operations Energy awareness training was mandatory for all employees Employees were encouraged to generate ideas, resulting in hundreds of low cost or no-cost energy savings ideas

20. Savings realized In 2007 Ivaco realized savings of $1.2 million in energy and in 2008 it was estimated an additional $1 million in further savings from M&T related projects. Examples include: –Monitoring of process N.G revealed incomplete shutdown practices during breaks in production which was corrected with PLC equipment –A spike in compressed air use led to identification and repair of a costly leak in a remote area –Out-of-season use of natural gas for space heating of pump rooms was spotted and corrected

21. Going forward The nature of an EMIS system ensures that savings will continue to last In addition to energy savings, Ivaco has also identified quality and productivity improvements Armed with better knowledge, Ivaco can also ensure capital projects are focused on the high return areas

22. Steam Saver Audit Combustion testing of all boilers at varying loads. Mass and heat balance of the facility “eTools” to model the boiler plant and calulcate savings Final report for the customer summarizing the findings

23. Boiler Plant Schematic

25. Combustion tune-up –It is not uncommon to identify combustion issues during a boiler study –Regular tune-ups can often pay for themselves in days and ensure safe operation!

26. Optimization Opportunities Boiler sequencing –Boilers typically do not have a flat efficiency curve –Changing the load profile of a boiler plant or even the number of boilers operating can result in gas savings at virtually no cost

27. Heat Recovery Opportunities Blow-Down Heat Recovery (BDHR) –Recover flash steam and sensible heat from blow- down –Use flash in DA and sensible heat for boiler make-up

28. Heat Recovery Opportunities Economizers –Recover heat from flue gases to heat boiler feed water –Typical savings 3-5% of boiler gas consumption

29. Heat Recovery Opportunities Condensing Economizer –Recover latent heat from flue gases to heat water –Savings of up to 15% of boiler load –Low grade heat: Typically limited by heat sink

30. Economizers

31. Accomplishments Enbridge has been involved in over 100 boiler plant studies We have identified over 100 million m 3 of energy savings projects Historical implementation rate has been over 40% (based on gas savings) The introduction of our eTool has allowed us to deliver faster results for the customer

32. Contact Information Daniel Johnson 416-495-5878 daniel.johnson@enbridge.com

33. Questions?