1. Infrastructure Challenges Eric T. Belle Manager, Field Engineering Columbia Gas of Kentucky Columbia Gas of Ohio Governor's Conference on Energy and The Environment October 8, 2014

2. Presentation Talking Points Define Columbia’s natural gas distribution infrastructure Discuss the challenges with natural gas infrastructure Describe Columbia’s plan to address natural gas infrastructure Detail Columbia’s progress with replacing its aging infrastructure Questions

3. Columbia’s Distribution Infrastructure Columbia operates 2,564 miles of distribution gas mainlines These distribution gas mainlines have various characteristics: –Vintage* –Material type* –Diameter –Pipe Wall Thickness –Pipe Wall Coating –Operating Pressure Distribution gas mainlines play critical role in providing safe, reliable service to approximately 140,000 residential, commercial, and industrial customers in Columbia’s service areas. 2013 Calendar Year Annual DOT Report Underground Network of Integrated Mainlines

4. Columbia’s Distribution Infrastructure

6. Natural Gas Distribution Infrastructure Challenges Columbia monitors and evaluates the condition of its aging infrastructure Defined “priority pipe” as bare steel and cast/wrought iron Priority pipe has a greater probability to leak due to accelerated corrosion Cast iron distribution mainlines have the greater probability to leak at bell joints due to earth movement or ground disturbance 44% of distribution mainlines were installed prior to 1969 17% of distribution mainlines are bare steel or cast/wrought iron Aging infrastructure Increased Operation and Maintenance Activity

7. Columbia’s Grade 2 Leaks

8. Natural Gas Distribution Infrastructure Challenges

9. Columbia’s Infrastructure Plans In 2008, Columbia began its accelerated main replacement program Program targets the replacement of priority pipe, ineffectively coated steel, service lines, and associated appurtenances 30 year program to replace approximately 520 miles Total program cost estimated at $210 million dollars Supports goal of providing safe reliable service Accelerated Main Replacement Program Evaluation and Prioritization

10. Columbia’s Infrastructure Replacement Progress Columbia retired approximately 83 miles of bare steel and cast/wrought iron pipe and related appurtenances Columbia spent approximately $61 million dollars on its accelerated infrastructure replacement program Columbia continues its effort to work with municipalities to replace bare steel and cast/wrought iron infrastructure in conjunction municipal improvement projects Minimizes additional construction which impacts roadway and public sentiment 2008 - 2013 Status Report Sustained Execution Excellence

11. Questions