Gas Distribution Inc INC. Worlds largest liquids pipeline delivering more than 2,000,000 barrels of crude oil /day Inc Corporate Social Responsibility.

Gas Distribution Inc

INC

• Worlds largest liquids pipeline delivering more than 2,000,000 barrels of crude oil /day

Inc

Corporate Social Responsibility a commitment to sustainability

160 years of growth and ExperienceWhere Energy Meets

People Distributing Natural Gas to 1.8 million customers in Ontario, Quebec, New Brunswick and New York State

• 160 years experience

• 1.8 million customers

• 420 BCF distribution volume

• 33,000+ km pipeline (20,625 miles)

• About 1,800 employees

• About $2.9 billion annual   revenues

• About $300 million annual capital investment

Gas Distribution Inc.

GAS NEAVEAU BRUSWICK

Gas Distribution Inc.

Agriculture

Is our single largest employer in the Niagara Region

Millions of Square meters of greenhouse space

1000’s of Acres of vineyards with gas fired fans

Sustainability is critical to our industry and the Niagara RegionCorporate Partnership and Responsibility

Demand Side Management Programs

0ver 10,000,000 m3 Energy Savings Projects

Greenhouse Industry

Steam conservation programs

Winery & Vineyards

Farm Fan Conversions

Process improvements

Water / heat recovery

Bio Fuel Projects

Heat Recovery From Gen Set

Bio Fuel Boilers

Carbon Dioxide from Flue Gas

EEP $$/ m3 saved

First Installed in Franchise

One Approved for NOTL

One Approval in Application

Fuel source flexibility allows customer to control financial destiny

Allows customer to compete effectively in World Markets.

No more than 100 milligrams Sulphur /m3

No more than 7 milligrams H2S /m3

Free from sand dust gums oils compounds

36.MJ/M3

5% ethane

95% Methane

5 lbs H2O per 1000 ft3

gas

(2.272 kg/28,238 m3

Natural Gas Quality

• Development of cost effective upgrading process for biogas to meet pipeline quality specifications– Lab analysis of biogas & upgraded biogas

from various existing sites• Anaerobic Digestion• Landfill Gas

– Evaluation of technologies and plant design for upgrading of biogas

Bio Gas and Landfill Gas Activities

Installed 4.5 kilometers 8” HP plastic to Abitibi From Land Fill

Installing 4.5 kilometers 12”HP plastic to Abitibi from Land Fill

Completed study of Glenridge Landfill

Recently connected two Gas Production Wells in Wainfleet

PRESSURE DELIVERY

• RESIDENTIAL - 7” wcp

• COMMERCIAL 7” wcp normal

• COMMERCIAL 2 PSI TO 5 PSI

• AGRICULTURAL 7” TO 10 PSI

• INDUSTRIAL UP TO 60 PSI

• FARM FANS DISTRIBUTION PRESSURE16 OZ = 1 LB - 28 “ WCP = 16 OZ ~ 7”WCP = 4 0Z OR ¼ lb psig

DISTRIBUTION SYSTEMS• TCPL 350 PSI TO 1500 PSI

• GATE STATION 175 TO 450 XTRA HIGH PRESSURE

• HIGH PRESSURE 64 PSI TO 175

• INTERMEDIATE 24 PSI TO 64PSI

• MEDIUM 12 PSI TO 24 PSI

• LOW PRESSURES 14” wcp

Natural Gas Purchase AgreementsGas Rates and Contracts Approved by OEB

Land Fill Gas Delivery based on Existing Transportation Rates with specific Agreements designed to project requirements

Producer Gas Contract Based on Ontario Production Gas Purchase Agreement i.e.: Producer Gas Wells

Economically Viable flow rate for sale and Purchase of high quality LFG 3200cfm

Viable purchase rate for High Quality Bio Fuel Methane $25.00 GJ - current rate $11.00 gj

May 2001 Niagara Index per Canadian Gas Price Reporter whereThe Niagara row and column meet on the chart $7.542Less Buyer’s balancing and transportation charge (.240)Net price payable (Canadian $ per GJ) for May 2001 deliveries $7.302

Note: This equates to approximately $284.78 per 103M3 or $8.067 per MCF.To convert $/GJ to $/103m3 multiply by 39.00 (Heat Value*)To convert $/103m3 to $/MCF divide by 35.30096

Simple Small Gas Producer purchase Agreement

HOWEVERLEGISLATIVE INFLUENCES???

TRANSPORTATION RATES

OEB RATE APPROVALS

FUNDING

FINANCING

GOVERNMENT PROGRAMS

INCENTIVES

CARBON CREDITS

GREENHOUSE METHANE CREDITS

ConsiderationsLand Fill Gas and Bio Gas Treatment by OEB

Purchase Rates to be determined

Available Space on Distribution System

Volumetric Uptake by Customer Base

Proximity of Distribution System

Distribution Pressures & Compression requirements

Secure and Reliable Supply

Fuel Integrity – Quality - Assurance

Equipment Reliability – Redundancy –

Controls – Report Access