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Enhanced Natural Gas Transaction Scenarios

Explore three distinct scenarios involving Keystone transactions with ENA, detailing structured horsepower exchanges and capacity sales to NNG, highlighting potential savings and improved service. All monetary figures are for illustrative purposes only.

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Enhanced Natural Gas Transaction Scenarios

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  1. Proposed Keystone Transaction Note: All $ amounts are for illustrative purposes only and should not be construed as actual transactable prices.

  2. Note: All $ amounts are for illustrative purposes only and should not be construed as actual transactable prices. Scenario 1 • ENA is not involved • Assume Keystone charges $10.00/Dth/mo for service $$ (used to acquire Horsepower & Base Gas) Bank Keystone Principal & Interest $10.00/Dth/mo Capacity NNG Increased Rate Base Improved service; capacity for balancing Rate Payers

  3. Note: All $ amounts are for illustrative purposes only and should not be construed as actual transactable prices. Scenario 2 • ENA supplies a structured horsepower transaction; does not finance base gas • ENA receives from Keystone 0.97MM Dth/mo of capacity ($9.7MM/$10.00/Dth/mo) in exchange for structured horsepower that Keystone values at $10.0MM • ENA provides structured horsepower for $5.0MM • ENA sells to NNG 0.97MM Dth/mo of capacity for $9.3MM; Savings = $0.4MM • First 0.97MM Dth/mo of capacity will cost NNG $9.59/Dth/mo • Capacity beyond 0.97MM Dth/mo will cost $10.00/Dth/mo Structured horsepower ($10.0MM) +$4.3MM +$0.3MM $5.0 MM ECS ENA Keystone Structured horsepower Capacity ($9.7MM) $9.3MM Capacity ($9.7MM) $10.00/Dth/mo Capacity NNG +$0.4MM Improved service; capacity for balancing Increased Rate Base Rate Payers

  4. Note: All $ amounts are for illustrative purposes only and should not be construed as actual transactable prices. Scenario 3 • ENA supplies structured horsepower transaction; finances base gas • ENA receives from Keystone 1.02MM Dth of capacity ($10.2MM/$10.00/Dth/mo) in exchange for structured horsepower and base gas that Keystone values at $10.5MM • ENA provides structured horsepower and base gas for $5.5MM • ENA sells to NNG 1.02MM Dth/mo of capacity for $9.8MM (Savings = $0.4MM) • First 1.02MM Dth/mo of capacity will cost NNG $9.61/Dth/mo • Capacity beyond 1.02MM Dth/mo will cost $10.00/Dth/mo Base gas ($0.5MM), Structured horsepower ($10.0MM) +$4.3MM +$0.3MM $5.5 MM ECS & EGS ENA Keystone Base gas & Structured horsepower Capacity ($10.2MM) $9.8MM Capacity ($10.2MM) $10.00/Dth/mo Capacity NNG +$0.4MM Improved service; capacity for balancing Increased Rate Base Rate Payers

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