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05/2007
3
Working Smart For You
• Access to multiple Midwest markets
• Access to multiple supply sources
• Access to Michigan & Ontario storage fields
• Flexible services
• Flexible pricing
4
Great Lakes Gas Transmission
• Interstate natural gas transmission system
transporting gas for others
• Headquartered in Troy, MI. near Detroit
• $1.2 billion in assets
• $272 million in revenue in 2006
5
Great Lakes Gas Transmission & the Midwest/Northeast Pipeline Grid
6
Great Lakes Gas TransmissionTypical Peak Receipt/Deliveries
ANR PipelineCMS EnergyNorthern NaturalTransCanada PipeLinesUnion GasViking Gas
Carlton400 MMcf/d
Fortune Lake900 MMcf/d
Farwell650 MMcf/d (R)
Chippewa (CE)225 MMcf/d
Belle River (MC)
225 MMcf/d (R)
St. Clair1.6 Bcf/d
N
Emerson2.3 Bcf/d (R)
7
Facilities
• 2,000-mile, 36” diameter pipeline system
traverses Minnesota, Wisconsin, and Michigan
– MAOP 974 psi
• 14 compressor stations with combined 450,000
hp
• Over 60 receipt and/or delivery points
8
Forwardhaul or Backhaul
• Forwardhaul: bringing Western Canada
Sedimentary Basin gas to the Midwest and
Ontario
• Backhaul: supplying Manitoba, Minnesota,
Wisconsin, and Michigan markets from Dawn or
Chicago hubs
– Currently no fuel charges
9
Interconnects
Interconnects directly with TransCanada, Northern Natural, ANR, as well as:
In Minnesota
• Minnesota Energy Resources
• City of Duluth, MN
• Otter Tail Power
In Wisconsin
• NSP/Xcel
• Superior WL&P
In Michigan
• Bluewater Gas Storage
• Consumers Energy
• Detroit Edison (via SEMCO)
• MCV
• MichCon
• SEMCO
• WEPCo
10
Supply Options
• Western Canadian Sedimentary Basin
– via TCPL at Emerson
• Chicago hub supply
– via ANR at Fortune Lake and Farwell
• Dawn hub supply
– via TCPL at St. Clair
11
Storage Access
• Northern MI– 130 Bcf working gas
• Central MI– 289 Bcf working gas
• Southeast MI– 219 Bcf working gas
• Dawn, Ontario– 240 Bcf working gas
12
Eastern Zone Storage Access
Great Lakes Delivery/
Receipt Point
Storage Company
# of
Fields
Working Gas (Bcf)
Max. Field Deliverability
(MMcf/ d)
Deward ANR Storage 4 56 810
Farwell ANR Pipeline 10 193 4,300
Farwell MichCon 1 40 500
Chippewa Consumers Energy 15 130 2,800
Rattle Run Bluewater Gas Storage 1 3 100
Rattle Run Bluewater Gas Storage 1 27 700
Belle River Mills MichCon 4 124 2,550
Belle River Mills DTE/Washington 10 2 65 920
Total Michigan Access 638 Bcf 12.7 Bcf/ d
13
Michigan Production
• Production region
• Goose Creek & Jordan Valley
– 100 MMcf/d metering capability
– 105 Bcf production in 2006*
• Hudson
• Richfield
*Michigan Public Service Commission. Annual gas production summary.
14
Services
• Great Lakes offers a full menu of transportation services
– Standard FT Service (long-term, short-term, daily, intra-day)
– Limited Firm
– Interruptible
– Seamless service (off system capacity)
– Market Center services
15
FT & LFT Service
• Firm service
– Provided every day, without interruption
– Short term service for as little as one day
– Secondary point flexibility
– Intra-day available
• Full MDQ over less than 24 hours
16
FT & LFT Service
• Limited Firm service
– Available for a pre-determined number of
days within a pre-determined time period
(i.e., available 120 out of 151 days)
– May be lower cost alternative firm service
17
Short Term Services
• Firm services offered daily
– Daily and intra-day longhaul
– Daily shorthaul
• Short-term FT customers treated equal to long-
term FT customers
• Subject to auction process
18
Auction Procedures
• Auctions take place in GLConnect
– Requires username and password
• Bidders should have credit coverage for the
term they are bidding
– Or subject to pre-pay
• All posted bids are binding
19
Auction Procedures
• Nearly all auctions are blind (closed)
• Bidders can enter multiple bids under the same
entity name
– Total MDQ can’t exceed offered MDQ
• Unsold auction capacity will be sold on a first-
come, first-served basis at the highest awarded
bid rate
– Until 2:00 p.m. CCT
20
Auction Timing
• Term services (monthly, seasonal, annual)– Posted for 25-49 hours, ending at 9:00 a.m. CCT
• Next-day offerings– Posted 8:00 a.m. – 9:00 a.m. CCT
• Intra-day offerings– Posted 9:00 a.m. – 9:30 a.m. CCT on weekdays– Posted 9:30 a.m. – 10:00 a.m. CCT on weekends
and holidays
21
Segmentation
• Firm transporters can segment capacity within
path to serve multiple markets
• Forwardhaul and backhaul gas to a common
delivery point or from a common receipt point
– Increase receipt & delivery volumes with no
reservation cost increase to maximum rate
contracts
22
Segmentation Flexibility
Emerson
St. Clair
FortuneLake
Farwell
100
100
100
EXAMPLE:100 Mdth/d Emerson to St. Clair contract
Total Emerson Receipt: 100 Mdth/dTotal Farwell Receipt: 200 Mdth/dTotal Fortune Lake Deliv: 200 Mdth/dTotal St. Clair Delivery: 100 Mdth/d
23
Capacity Release
• Firm shippers have the right to release capacity
to qualified third parties
– Full or partial MDQ
– Segmented releases
24
Interruptible Service
• Less expensive than FT
• Typically used for shorter paths and/or
backhauls on a short-term basis
• Not subject to the auction process
25
Seamless Service
• Contract with Great Lakes to/from points on
other pipelines
– Example: Chicago to Dawn service
• Great Lakes acquires transportation on
interconnecting pipeline
• One rate, one nomination – Great Lakes does
the rest
26
Market Center Services
• Parks and loans available (as system conditions
permit) at all receipt and delivery points
• Title transfers available at all receipt and
delivery points
– Currently no charge
• Interruptible in nature
27
Cost Based Rates
• Three zone system
– $0.12/dth to Carlton (Northern Natural)
• Approximately 1.2% fuel
– $0.20/dth to Fortune Lake (ANRPL)
• Approximately 2.0% fuel
– $0.35/dth to St. Clair (TransCanada)
• Approximately 3.5% fuel
28
Transporter’s Use
• 13 fuel segments
• Determined by the 15th of each month
Number of segments
12-month average*
8 2.20%
9 2.47%
10 2.73%
11 2.99%
12 3.25%
13 3.47%
* As of May. Actual fuel percentages posted on www.glgt.com.
Number of segments
12-month average*
1 0.30%
2 0.58%
3 0.85%
4 1.12%
5 1.39%
6 1.66%
7 1.93%
29
Progressive Pricing Policies
• Negotiated rate authority
• Market sensitive rates on short term services
– Posted daily as available
– Discounts may apply to secondary points
30
Progressive Pricing Policies
• Rate ranges
– Floor and ceiling capped rates
• Pricing certainty
– Locking in price for longer term
• Seasonal firm service
– Variable MDQ for seasonal needs
31
Working Smart For You
• Access to multiple Midwest markets
• Access to multiple supply sources
• Access to Michigan & Ontario storage fields
• Flexible services
• Flexible pricing