1. 1 Gas Expansion in New England Paul Zohorsky Vice President – Engineering, Sales & Marketing, LNG Northeast Utilities Gas Business Unit (Yankee Gas and NSTAR Gas)

2. 2 Natural Gas Supply Solutions 1)Tennessee CT Expansion (0.072 bcf) – Estimated In-service Nov. 2016 2)Algonquin AIM (0.342 bcf) – Estimated In-service Nov. 2016 3)Algonquin – Atlantic Bridge (up to 0.6 bcf) – Proposed Estimated In-service Nov. 2017 4)Tennessee Northeast Expansion (up to 2.2 bcf) – Proposed – Estimated In-service Nov. 2017/18 5) Portland – C2C Expansion (up to 0.182 bcf) – Proposed Estimated In-service Nov. 2016 Potential for an additional 3.396 bcf of daily supply by winter 2018

3. 3 Yankee Gas (CT) 10-Year Expansion Targets 3

4. 4 NSTAR Gas (MA) Expansion NSTAR Gas Needs to Install Main in to Satisfy MA Residents 92% Penetration Rate Low Use Customers – 12,808 Non Customers on Main – 20,666 Satisfying less than 1% of Main Extension Requests By expanding natural gas access, there is an opportunity to: Dramatically lower customer costs Spur economic development and job creation Impact carbon emissions and help achieve MA targets Reduce oil consumption and promote fuel independence Pending Legislation Will Support Expansion We will work collaboratively with the DPU and AG to develop a multi-year expansion plan –Develop proposals to address the barriers to expansion –Propose a new regulatory construct that incents customers and LDCs

5. 5 Renter / Low Income Focus Overcoming the Barriers Increase incentives and/or financing options to encourage landlord and low income customer conversions Municipal & State Facilities Focus Develop programs for municipal customers to purchase equipment to convert to natural gas. Municipal & state facilities can act as anchor customers for broader expansion. Build on Existing Energy Efficiency Program Leverage existing energy efficiency programs to more aggressively grow natural gas access and defray inside the home conversion costs (i.e., provide higher incentives for high efficiency gas heating installations).