We develop, transport and deliver clean energy ® Questar’s Pipeline System ® 2 City Gate ® 3 4 Firm Sales GS, FS Transportation FT-1, TS (with firm demand) Interruptible Residential/Commercial Commercial/Industrial Minimum Annual Volumes 120,000 DTH (FT-1) IS Minimum Annual DTH 7000 Annual Contracts Market Based TS Large Commercial/Industrial GS - Daily volumes not to exceed 1,250 DTH in any one day during the winter season. FS - Daily volumes not to exceed 2,500 DTH in any one day during the winter season. Qualifications: Annual dth over 2,100 dth, Load Factor 40% or higher ® 5 ® 6 Daily … typically +/- 5%. - Can be restricted to no over or under deliveries based on system operating constraints. - Violations of the daily restrictions are subject to penalties as provided in the tariff. ® Monthly… must be within +/- 5%. - Imbalances may be traded through 15 days after month end closing. - Balances not traded within that time are subject to cash out or gas sale provisions provided in the tariff. ® ® Deliveries to the city gate are the responsibility of the transportation customer. - If gas is not delivered to the city gate, QGC is not responsible to supply gas to TS customers, even if customer has firm capacity on QGC. - Gas delivered to TS customers may be limited to contracted firm amount or daily nomination, whichever is less. - QGC release capacity is recallable. - Flexed firm capacity is firm, but it is a lower priority. ® December 5, 2013 Supply Curtailment Winter 2000-01 three interruptions - Two Northern - One Southern January 1997 for 36 hours - First partial interruption December 1990 for 9 days - First interruption since 1982 ® Winter interruption season: - November through March But interruptions can happen any time during the year Simultaneous interruption - Both sales (IS) and transportation (TS) Geographic interruption possible Partial interruption possible ® Customers will be notified by QGC account management personnel – day or night Notify QGC if interruption contacts change – educate all involved in the process Two-hour maximum allowance to interrupt gas service ® Penalty - Distribution non-gas component: $15/dth - Supplier non-gas component: $5.71 - Gas-cost component: Highest purchased gas during period of interruption = $4.75 on Dec. 5, 2013 - Total = $25.46/dth Meter shut-off may be used to maintain system integrity ® Nominations/Scheduling Process - NAESB Cycles ▪ (North American Energy Standard Board) Events of December 5th, 2013 ® 15 Timely Nominations (Cycle 1) Sent by 10:30 am to the TSP by 10:45 am Scheduled at 3:30 pm Evening Nominations (Cycle 2) Sent by 5:00 pm to the TSP by 5:15 pm Confirmations by 8:00 pm Scheduled by 9:00 pm 8:00 am GD2 Gas Flow 8:00 am GD2 Gas Flow Intraday 1 Nominations (Cycle 3) Sent by 9:00 am to the TSP by 9:15 am Confirmations by 1:00 pm Scheduled by 1:00 pm 4:00 pm GD2 Gas Flow 8am 12pm 8pm Gas Day 1 - December 4,2013 ® 12am 8am Intraday 2 Nominations (Cycle 4) Sent by 4:00 pm to the TSP by 4:15 pm Confirmations by 7:00 pm Scheduled by 8:00 pm 8:00 pm GD2 Gas Flow 12pm Gas Day 2 8pm - December 5, 2013 12am ®