What is the Outlook?

1. What is the Outlook? Aggregation of IRPs and other planning docs. A consensus regional perspective. Can be read/downloaded at: http://www.nwga.org/2014-gas-outlook

2. Recent Gas Demand

3. Demand Composition

4. 2014 Outlook Forecast

5. Residential Demand

6. 1st Year By Outlook Year

7. Demand Scenarios

8. T-South to Huntingdon Feb Jan 24 4-­‐10 Dec5-­‐20 1,800 1,600 DesignCapacity 1702 MMcfd 1,400 Daily Volumes MMcf/d 1,200 1,000 800 GasdeliveredtoHuntingdonsupplies: •FortisBCVancouver & Vanc Island •NorthwestPipeline •Ferndale & CascadePipelines and Sumas Energy 600 High Flow Periods Daily Avg. (MMcf/d) December 5-20 January24February 4-10 1724 1711 1675 400 200 0 Firm AOS InterrupLble

9. NWP Kemmerer North 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Scheduled Dekatherms 1,000,000 500,000 0 Scheduled Dekatherms Historical Peak Day Scheduled

10. 2013-14 Fundamentals $/Dth HeatingDegrees 50 45 40 35 30 25 20 15 10 5 0 $30 Feb6PeakPrices Sumas - $27 $25 Stanfield - $24 SignificantCold $20 Normal HDD Portland HDD Sumas Price StanfieldPrice Kingsgate Price Kingsgate - $15 $15 $10 $5 Prolonged Cold $0 Capacity limitson Westcoastcoincideswith price spikes WestcoastFlows-Mcfd 2,000 1,500 Mainline Flow Mainline Capacity SumasFlow SumasCapacity 1,000 500 0 9

11. 2013-14 Takeaways >Capacity –Sufficient tomeet existingrequirements –Lots of gas being shipped IT on Spectra and GTN –Less flexibilitydue tohighutilizationoncriticaldays –Northwestentitleditssystem for11days –Spectra hit capacity limits twice –Constraints can cause price escalation >StorageCapacity –Customersreliedheavilyonstorageduring cold weather –High value asset