NGTL System and Foothills Pipeline Customer Meeting

May 11, 2017

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Welcome

Safety Moment:

• In case of alarm or emergency, please proceed immediately to the ground-level exit

• Nearest stairs to ground-level exit are outside this room and directly to the left

• Muster point is located on the plus-15 level of 5th Avenue Place (425 1st Street SW)

Participating through WebEx:

• Please sign-in through WebEx application including your full name and company

• In response to customer requests to reduce background noise and improve audio quality,

all WebEx participants will be placed on mute

• Prior to commenting or asking a question, please remember to take yourself off mute and

identify yourself

Information provided herein is for informational purposes only and is not to be relied upon for any other purpose whatsoever. The information is based upon certain assumptions that may or may not be accurate, and therefore is subject to various risks and uncertainties. TransCanada shall not be liable for damages sustained as a result of any use or reliance on such information.

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NGTL System

• Monthly Outage Forecasts

• Short Term Operational Plan (STOP)

• NGTL Current System Report

• System Utilization

• Presentations

• Plant Turnaround Information Form for

Receipt and Sales Stations

• Appendix 2: 2017 Facility Status Update

• NGTL System Simplified Map

Information Available on Customer Express Hyperlinks

Foothills System

• Monthly Outage Forecasts

• Short Term Operational Plan (STOP)

• Current System Report

• System Utilization

• Presentations

• Plant Turnaround Information Form for

Receipt and Sales Stations

Informational Postings

• Receipt and Delivery Availability Maps

• Capacity (Design, Major Borders)

• Bulletins

• Tariff

• NGTL System Transportation Rates &

Abandonment Surcharge

Informational Postings

• Capacity (Design, Major Borders)

• Notices

• Tariff

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• Outage Communication Improvements

• Construction Material and Expansion Update

• Upstream James River Review and Outlook

Agenda

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• Long Term Outlook – Monthly Outage Forecast (MOF)

• Published mid month with the best information available known at time

• Includes preliminary outage information related to schedule and impact

assessment

• Revision through subsequent MOFs to schedule, capability, and area of

impact as information matures

• NGTL and Foothills Customer meetings to review and discuss

• Short Term Outlook – Short Term Operational Plan (STOP)

• Published end of each TransCanada business day with the best

information available known at time

• Supersedes any previous MOF communication

• Imminent/Current/Unplanned – NrG Highway (NrG) Notice

• Issued as soon as essential outage information is known

• Supersedes any previous STOP communication

• STOP will be revised at next publication cycle

• Area of impact list includes segments/locations

Outage Information and Notifications

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Past Improvements

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Near Term Improvements (based on feedback)

• NrG Notices

• Template style format with minimal free form text – implementation May 23

• Short Term Operational Plan

• Review and refine USJR typical flow - completed Mar 22

• Align service restriction start/end dates with STOP entry – completed Mar 27

• Service restriction often starts before and ends after the outage

• Re-organize and simplify for ease of review and reference

• Change tracking mechanism

• Monthly Outage Forecast

• MOF information overlaps with and sometimes differs from STOP

• Roll MOF tabular information into STOP

• Continue to revise and post operational capability charts

Feedback: Be clear, concise, consistent, and timely

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NrG Highway Notice Recent Example

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NrG Highway Notice Template

Drop down lists, calendar date picks, check

boxes

Minimal free form text

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NrG Highway Notice Sample

Downloadable list of all affected locations is under review

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• Review the new format and provide feedback

through May 19, 2017

• Implementation planned for any notices issued on

and after May 23, 2017

Service Restriction Notice Format

Share your thoughts and ideas regarding future improvements with your Commercial representatives

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Short Term Operational Plan Current Format – WGAT and EGAT

Export Capability (WGAT and EGAT)

Export Capability (Foothill B.C.)

Export Capability (Foothill Sask.)

Receipt and Delivery Capability (NGTL Locations/Areas)

Government Run Inspects

Plant Turnarounds

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Short Term Operation Plan Current Format - Foothills B.C. and Sask.

Export Capability (WGAT and EGAT)

Export Capability (Foothill B.C.)

Export Capability (Foothill Sask.)

Receipt and Delivery Capability (NGTL Locations/Areas)

Government Run Inspects

Plant Turnarounds

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Short Term Operation Plan Current Format – NGTL Meter Stations

Export Capability (WGAT and EGAT)

Export Capability (Foothill B.C.)

Export Capability (Foothill Sask.)

Receipt and Delivery Capability (NGTL Locations/Areas)

Government Run Inspects

Plant Turnarounds

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Short Term Operation Plan Current Format – GRIs and PTAs

Export Capability (WGAT and EGAT)

Export Capability (Foothill B.C.)

Export Capability (Foothill Sask.)

Receipt and Delivery Capability (NGTL Locations/Areas)

Government Run Inspects

Plant Turnarounds

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Short Term Operation Plan Proposed Improvements in 2017

1. Provide link to a new service restriction dashboard

• Current service allowable status for affected areas/interconnects

• Link to relevant NrG Notice

2. Categorize by receipt, delivery, and interconnect

• Organize from receipt to delivery

• Separate Area and Local tables

• Government run inspections (GRI’s) incorporated into Local table

3. Provide link to reported plant turn around activity in chart format

• Available aggregate PTA data, separate receipt and delivery charts

4. All available outage information contained in one report

• Extend STOP timeline to incorporate MOF

• Provide links to all recent capability and historical flow charts

5. Provide link to STOP report data in CSV format

• Allows stakeholders to track changes according to their individual needs

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Short Term Operation Plan Service Restriction Dashboard

NGTL and Foothills Service Allowable Dashboard

Areas Segments Locations

FT %

Allowable

IT %

Allowable

NrG

Notice

USJR 100 0 Mar 29

WGAT Partial 0 Mar 31

EGAT 100 Partial Apr 4

NEDA 100 Partial Apr 4

OSDA 100 100

Full 11,14 80 0 Mmm dd

Partial 4 100 0 Mmm dd

Footnotes

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Short Term Operation Plan USJR Receipt Area

Upstream James River Receipt Area (USJR) USJR capability and historical flow (hyperlink) – Current Base Capability 268,000

Start

End

Capability (103m3/day)

Outage Description

Mar 23 Apr 24 262,000 Clearwater C/S unit 1 – unplanned maintenance

Apr 24 Apr 28 260,000 Alces River C/S – maintenance

May 8 May 12 255,000 Berland River C/S – maintenance

May 15 May 17 260,000 Meikle River B C/S – maintenance

May 23 May 25 262,000 Fox Creek C/S - maintenance

May 26 Jun 1 252,000 Gold Creek C/S – maintenance

Jun 6 Jun 16 242,000 NPS 42 EDSML Loop – inline inspection

Jun 7 Jun 12 [no additional impact] Wolf Lake C/S – maintenance

Jul 10 Jul 17 242,000 NPS 42 GPML Loop – modifications

Jul 17 Jul 21 258,000 Clearwater C/S unit 1 – maintenance

Jul 18 Jul 19 256,000 Clearwater C/S station– maintenance

Aug 12 Aug 21 212,000 NPS 48 EDSML Loop 3 - pipeline modifications

Aug 12 Aug 21 [no additional impact] NPS 36/42 GPML Loop - pipeline modifications

Aug 12 Aug 21 [no additional impact] NPS 36 GPML Loop - pipeline modifications

Aug 14 Aug 18 [no additional impact] Swartz Creek C/S - Station Maintenance

Aug 14 Aug 20 [no additional impact] Latornell C/S - Station Maintenance

Aug 30 Sep 3 240,000 NPS 36 GPML – pipeline modifications

Sep 5 Sep 7 252,000 Knight C/S station – maintenance

Sep 11 Sep 15 260,000 Woodenhouse C/S station – maintenance

Oct 2 Oct 20 257,000 Nordegg C/S station – maintenance

Oct 16 Oct 29 260,000 Paul Lake C/S unit 2 - maintenance

Oct 30 Dec 8 262,000 Clearwater C/S unit 5 – modifications

Footnotes

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Short Term Operation Plan USJR Receipt Area Chart Mockup

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Short Term Operation Plan Local Receipt Areas and Locations

Local Receipt Areas/Locations

Start

(Duration) End

Capability (103m3/day)

Typical Flow (103m3/day)

Service Allowable Location/Area

Outage Description

Apr 4 (2h) 0 330 Zero FT and Zero IT allowable Timberwolf

Government run inspection

Apr 4 Apr 11 0 90 Zero FT and Zero IT allowable Irish

NPS 10 Irish Lateral – inline inspection

Apr 20 (10h) 0 800 Zero FT and Zero IT allowable Snuff Mountain North

Snuff Mountain North - modifications

May 11 (10h) 1,300 2,600 Partial FT allowable Chickadee Creek West, Clark Lake, Kaybob, Two Creeks, Two Creeks East

NPS 20 Kaybob Lateral – inline inspection

Footnotes

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Short Term Operation Plan WGAT Delivery Area and Foothills Zone 8 (FHZ8)

Western Gate (WGAT) Delivery Area Alberta B.C. capability and historical flow (hyperlink) – Current Base Capability 65,000

Start

End

Capability (103m3/day)

Outage Description

Mar 23 Apr 24 64,000 Clearwater C/S unit 1 – unplanned maintenance

Apr 4 Apr 5 51,000 Winchell Lake C/S station - maintenance

Apr 17 Apr 21 63,000 Burton Creek C/S unit 2 - maintenance

Apr 22 Apr 24 64,000 NPS 36 WASML Loop

May 8 May 12 62,000 Turner Valley C/S station – maintenance

May 9 May 11 60,000 Turner Valley C/S unit 2 – maintenance

May 29 Jun 2 56,000 Winchell Lake C/S station – maintenance

Jun 5 Jun 9 61,000 Burton Creek C/S station – maintenance

Jun 13 Jun 23 62,000 NPS 42 WASML Loop – inline inspection

Jul 10 Jul 23 62,000 NPS 24 South Lateral – inline inspection

Aug 9 Aug 18 56,000 NPS 36 WASML – inline inspection

Sep 14 Sep 18 63,000 Drywood C/S station – maintenance

Sep 22 Sep 29 58,000 NPS 36 Foothills Zone 7 – inline inspection

Footnotes

Foothills Zone 8 (FHZ8) Alberta B.C. capability and historical flow (hyperlink) – Current Base Capability 80,000

Start

End

Capability (103m3/day)

Outage Description

Apr 24 Apr 27 62,000 Elko C/S station - maintenance

May 8 May 12 59,000 Moyie C/S station - maintenance

May 30 May 31 52,000 Crowsnest C/S station - maintenance

Footnotes

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Short Term Operation Plan EGAT Delivery Area and Foothills Zone 9 (FHZ9)

Eastern Gate Delivery Area (EGAT) Empress/McNeill capability and historical flow (hyperlink) – Current Base Capability 126,000

Start

End

Capability (103m3/day)

Outage Description

Mar 23 Apr 24 124,000 Clearwater C/S unit 1 – unplanned maintenance

Mar 29 Apr 9 121,000 Princess C/S unit 6 – unplanned maintenance

Apr 5 Apr 9 115,000 Beiseker C/S unit 1 – unplanned maintenance

Apr 11 Apr 13 119,000 Jenner C/S station - maintenance

May 9 May 18 125,000 NPS 34 EASML – inline inspection

May 16 May 19 126,000 Hussar C/S station – maintenance

Jul 4 Jul 14 124,000 Acme C/S station – maintenance

Footnotes

Foothills Zone 9 (FHZ9) Current Base Capability 75,000

Start

End

Capability (103m3/day)

Outage Description

Footnotes

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Short Term Operation Plan Local Delivery Areas and Locations

Local Delivery Areas/Locations

Start

(Duration) End

Capability (103m3/day)

Typical Flow (103m3/day)

Service Allowable Location/Area

Outage Description

Apr 4 Apr 9 7,500 6,000 to 8,000

Potential FT/IT restriction Mahihkan Sales, Turcker Lake Sales

NPS 16 Leming Lakes Sales Lateral - modifications

Apr 20 Apr 23 15,000 15,000 to 20,000

Potential FT/IT restriction Horizon Sales, Aurora Sales, Aurora #2 Sales, Jackpine Creek Sales, Aspen Sales, Wapasu Creek Sales, Kearl Sales, Firebag Sales

NPS 30 Fort McKay Mainline – inline inspection

May 3 May 6 8,500 10,000 to 13,000

Partial FT restriction Aspen Sales, Wapasu Creek Sales, Kearl Sales, Firebag Sales

NPS 24 Fort McKay Mainline Extension – inline inspection

May 5 May 17 1,400 1,200 to 1,800

Potential FT/IT restriction Cold Lake Sales

NPS10 - Saddle Lake Lateral – inline inspection

May 10 May 17 1,800 3,000 Partial FT restriction Unity Sales

NPS 18 East Lateral – inline inspection

Jul 5 Jul 8 2,150 3,000 Potential FT/IT restriction Unity Sales

NPS 14 Flat Lake Lateral - modifications

Jul 25 Aug 10 0 5 Zero FT and Zero IT allowable Greencourt West Sales

NPS 10 Greencourt Lateral – inline inspection

Aug 9 Aug 14 0 100 Zero FT and Zero IT allowable Burnt Timbre Sales

NPS 12 Burnt Timber Lateral - modifications

Footnotes

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• Review proposed improvements discussed today and provide feedback through May 31, 2017

• Are we moving in the right direction?

• What refinements to the proposal would you like to see?

• Next Steps

• Requirements finalization and definition, Jun 2017

• Software modification/testing, Jul through Aug 2017

• Tentative implementation, Sep 2017 (pending more detailed review and implementation planning)

Proposed Improvements to STOP

Share your thoughts and ideas regarding future improvements with your Commercial representatives

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Outage Communication Improvements

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Construction Material Background

• One elbow used in recent construction

did not meet TransCanada specifications

• Investigation expanded the focus to

specific components from one fitting

manufacturer used on specific projects

after 2010 with potential for similar

issues

• Rigorous investigation, including

extensive materials testing and

Engineering analysis is complete

Operational consequence is currently limited to availability of three facilities

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• Specific in-service facilities are limited to not exceed historical maximum pressure and temperature – safe and reliable operation

• No expected impact to normal system operation or throughput

• Three facilities recently constructed are delayed or unavailable

• Meikle River D, Goodfish, and Leismer East compressor stations

• No impact to normal system operation or throughput

• Resolution expected by end of Q3 2017 (subject to NEB approvals)

• Meikle River D leave to open application submitted Mar 22, approved Apr 21

• Commissioning in progress – expected onstream May 2017

• Goodfish leave to open submission expected May 2017

• Single engineering assessment for all in service facilities to lift the pressure and temperature limitations – EA submission expected Jun 2017

• Includes Leismer East C/S

Construction Materials Response

Meikle River D and Goodfish - originally expected onstream Nov 2016 Leismer East – was onstream Jul 2016

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In Progress

NWML Loop (Boundary Lake)

Meikle River D

Goodfish

Upstream James River Expansion Update

Alces B3

Otter Lake B2

Expansion Facility

Expected Onstream

Meikle River D C/S

NWML Loop (Bear Canyon)

Liege Lateral Loop 2 (Pelican)

NWML Loop (Boundary Lake)

Goodfish C/S

GPML Loop 2 (McLeod River)

outage Aug 12 to 21

Alces River B C/S Unit 3

Otter Lake B C/S Unit 2

May 2017

May 2017

Jun 2017

Jun 2017

Jul 2017

Sep 2017

Nov 2017

Nov 2017

NWML Loop (Bear Canyon)

GPML Loop No.2 (McLeod River)

Leige Loop (Pelican Section)

Outage Required

Design capability increases are provided in the NGTL Annual Plan and operational capability increases are provided in MOF charts.

Onstream

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Construction Material and Expansion Update

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• FT Service Restrictions 2015, 2016, 2017

• Unusual operational constraints resolved

• Impactful pipeline MOP de-rates resolved

• Capability addition through expansion in progress

• USJR receipt flow increase

Upstream James River Review

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USJR Capability Review and 2017 Outlook

NEB Derate CLWTR-1 CLWTR-5

MEKRB MEKRD

GFISH

160

170

180

190

200

210

220

230

240

250

260

270

280

290

300

310

(106m3/day)

operational constraints and pipeline MOP derates resolved

significant expansion facilities onstream through 2017

optimized 2017 outage plan

2015 95 days

2017 Q1

13 days 2016 90 days

Bcfd

6.0

7.0

8.0

9.0

10.0

11.0

FT Restrictions

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2015 2016 2017, Q1

average FT contracted 8.5 Bcf/d 9.9 Bcf/d 10.5 Bcf/d

average all facilities available capability 8.5 Bcf/d 9.3 Bcf/d 9.7 Bcf/d

average flow 8.0 Bcf/d 8.6 Bcf/d 9.1 Bcf/d

days with 100% FT and >0% IT (% of time)

140 (38%)

144 (39%)

49 (53%)

days with 100% FT and 0% IT (% of time)

130 (36%)

132 (36%)

30 (33%)

days with FT allowable <100% (% of time)

95 (26%)

90 (25%)

13 (14%)

FT contract utilization when FT allowable 100% or greater

93% 85% 87%

average FT allowable when FT allowable <100%

93% 83% 85%

FT contract utilization when FT allowable <100%

95% 95% 98%

average flow impact during FT restriction (% of average flow)

440 mmcf/d (5.5%)

400 mmcf/d (4.7%)

350 mmcf/d (3.9%)

annualized average flow impact during FT restriction

(% of average flow)

115 mmcf/d (1.4%)

98 mmcf/d (1.2%)

51 mmcf/d (0.6%)

Upstream James River Service Statistics

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2017 Q1 FT Utilization

FT allowable when required to accommodate maintenance averaged 85% in 2017 Q1 (4% or 350 mmcfd reduction in flow)

60

65

70

75

80

85

90

95

100

Group A Group B Group C

100% FT, 0% IT allowable

Results in 87% FT utilization

in aggregate

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Upstream James River Operational Constraints

Multiple coincidental factors led to frequent FT service restriction

• Unusual and long duration constraints - all resolved or soon to be resolved

• Significant pipeline inspection and facility maintenance programs

• Consequential pipeline MOP derates

• A period of supply growth and distributional shift

Facility Driver Start End

Various Locations NEB Safety Order Dec 2014 Oct 2015

Clearwater C/S Gas Compressor Magnetic Bearings

Jul 2015 Mar 2016

Meikle River B License MOP Mar 2016 Mar 2017

1Meikle River D C/S Construction Materials Nov 2016 May 2017

1Goodfish C/S Construction Materials

Nov 2016 Jul 2017

1. Impactful to throughput only during specific outages. Meikle River D Leave to Open (LTO) approved by NEB Apr 21. Commissioning in progress, expected onstream May 2017. Goodfish Leave to Open submission to NEB expected May 2017.

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• Capability Expectations

• Largely unconstrained by pipeline MOP derates

• Ongoing Pipeline Integrity Programs

• Optimized 2017 outage program

• 2018 outage program planning underway

• Capability addition through expansion

• USJR receipt flow and resulting FT service reliability?

Upstream James River Outlook for 2017

Maintenance events have been executed recently with no impact to FT service

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NGTL Mainline Expansion Plans (as of April 2017)

Planned 2017 Facilities Planned 2018-19 Facilities

2017 Expansions 2018-19 Expansions

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Continuous Improvement Focus Areas

• Planning and Scheduling

• How can planning and scheduling be refined to maximize

throughput?

• Condition monitoring and preventative maintenance

• What risk factors which lead to unplanned outages can

be mitigated?

• Outage execution

• What outage work activities be complete without an

outage?

Strategies and opportunities to maximize operational capability are constantly under review

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Upstream James River Review and Outlook