The Northeast Gas Association’s Pre-Winter Briefing on the Northeast Natural Gas System Liz Arangio Director Gas Supply Planning November 6, 2014 National Grid’s Gas Supply Portfolios Massachusetts  Boston Gas Company (Essex)  Colonial Gas Company Downstate New York  KeySpan Gas East Corp.  The Brooklyn Union Gas Company Upstate New York  Niagara Mohawk Power Corporation Rhode Island  The Narragansett Electric Company 2 National Grid’s Gas Supply Planning Obligations  Ensure gas supplies are adequate today and into the future to reliably meet the projected design requirements of all National Grid gas customers  Minimize gas costs to the extent possible without compromising supply reliability  Maintain a diversified portfolio of firm pipeline capacity, storage, and peaking assets with access to a diverse mix of supply basins and liquid market hubs  Maintain flexibility to balance load for all gas customers and electric generators on an intra-day, daily and seasonal basis  Fulfill POLR obligation under Companies’ Customer Choice Programs 3 Gas Portfolio: Forecasted Peak Day 4 Gas Portfolio: Forecasted Peak Season 5 Last Winter  The record breaking cold weather led to record high demand for natural gas, challenging our gas system, and driving up commodity prices.  Despite the obstacles,  National Grid was been able to provide uninterrupted service to all of our firm customers; and  National Grid was been able to significantly mitigate natural gas supply cost increases to customers as a result of our diverse gas supply portfolio, as well as our hedging strategies.  Post –Winter Opportunities:  Cold weather allowed us to test our models  Incorporate lessons learned:  Coordination with upstream pipelines  Customer Choice Programs 6 Changes Implemented for 2014/15 Winter Massachusetts:  Capacity Exempt Filing by all MA LDCs (DPU 14-111)  Implemented use of Central Delivery Points (CDPs) with Tennessee New York:  Affidavit Required for Alternate Fuel Source for Electric Generators (DNY)  Refined messaging regarding OFOs and interruptions Rhode Island:  Modified Hedging Program  Implemented modifications to Customer Choice Program 7 National Grid Winter Readiness Update Supply:  All required gas supply will be under contract for the winter season Underground Storage:  Underground storages are almost 100% full – some space left open to handle early November swing needs LNG :  LNG storages are nearly full in New England – topping off tanks during the month of November Communications Protocol:  Winter Operations Meetings between Gas Supply, Gas Control and Engineering scheduled for November and December  Daily afternoon and evening calls between Gas Supply and Gas Control commenced Nov 1st  Weekly Operations Call to commence in December  Participate as member of NGA Gas Supply Task Force 8