DTE Gas Storage Company DTE Pipeline Company 2006 Customer Meeting

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DTE Gas Storage CompanyDTE Pipeline
Company2006 Customer Meeting
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Welcome to Our 3rd Annual Customer Meeting

• Review of organizational changes
• Detailed presentations of what were working on
• Updates from our partners
• Vector 2007 expansion update
• Millennium 2008 in service update
• Thank you for your business
• Tomorrows events

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Manage and Develop Non-Utility Gas Assets

• Managing DTEs natural gas assets which are not
  part of MichCon including
• 75 Bcf working capacity of non-utility storage
• 40 ownership of Vector Pipeline
  www.vectorpipeline.com
• 10.5 ownership interest in Millennium Pipeline
  increased to 26.25
• 6 CO2 processing plants in northern Michigan
• Citizens Gas Fuel Company serving 15,000
  customers in Adrian MI
• Developing natural gas storage and pipeline
  assets including
• Washington 10 expansions
• Washington 28 expansions
• New storage in SE Michigan
• Storage developments in New York

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DTE GS/P Organization Structure Today
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DTE Gas Storage CompanyMarketing
OptimizationMark Bering
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Marketing Optimization

• W10 Expansions Update
• W10 Summer in Review
• W10 Fuel Overview
• 2007 2008 space availability
• Open season announcement
• Customers and Growth at W10
• Thank you for your business

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Washington 10 Expansions

• Washington 10 Expanded from 42.5 Bcf to 66 Bcf
• Phase I Expansion (April 2005)
• Addition of 4,750 hp compressor
• Delta Pressure from 1,448 to 1,900 psi
• Added 18 Bcf of storage capacity
• 8.3 Bcf of new long-term storage contracts sold
  for April 2005
• Construction started April 2005, completed in
  September 2005
• Phase II Expansion (April 2006)
• Addition of 2 - 4,750 hp compressors (Total
  approaching 27,000 hp)
• Delta Pressure from 1,900 to 2,122 psi
• Added 5.5 Bcf of storage capacity
• 15.2 Bcf of new long-term storage contracts sold
  for April 2006
• Construction started November 2005, completion in
  September 2006
• W28 Turnback Capacity
• Full capacity of W28 (9 Bcf) turned back
• Being marketed and sold as W10 storage

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Customers at Washington 10
78 Bcf 20 Customers
65 Bcf 22 Customers
60.5 Bcf 18 Customers
56 Bcf 13 Customers
42.5 Bcf 1 Customer
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Washington 10 Summer 2006

• March 31 Storage balance is 34 Bcf or 56 full
• April 1-3 Authorized Overrun and IT injections
  not allowed
• Assessing April 1st demand
• April 1st coincident with a weekend
• April 3 Catastrophic failure on brand new unit
  (Unit 4)
• Damage to connecting rod, engine block
  crankshaft
• Overrun and IT injections not allowed until
  further notice
• April 18 Unit 4 removed to be repaired off site
• May 20 Unit 4 repaired, re-installed and back
  in service
• Restrictions lifted on Overrun and IT
  injections
• June 1 Storage balance is 49.6 Bcf or 75 full
• June 3 - present Overrun and IT injections not
  allowed until further notice
• Restricted compressor capability until new
  units operational

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Fuel Overview

• Washington 10 fuel is posted twice a year
• At the beginning of the injection season and the
  beginning of the withdrawal season
• There is no withdrawal fuel during the injection
  season and no injection fuel during the
  withdrawal season
• As per the W10 tariff, fuel is based on actual
  fuel used
• Prior to the injection or withdrawal season,
  required fuel is estimated based on the storage
  field balance
• Estimate is adjusted for any previous over or
  under collection
• Previously given long term fuel estimates of
  0.72 on injection and 0.5 on withdrawal
• For this summer, the injection fuel was reduced
  to 0.5
• Revising our fuel estimate to 0.5 on injection
  and 0.5 on withdrawal
• Long term, we expect most of the fuel will be
  used on injection

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2007 Space Availability

• Washington 10 turnback
• Approximately 3 Bcf of turnback capacity for
  April 2007
• Sold long term
• Washington 28 turnback
• Full capacity of 9.0 Bcf turned back for May 2006
  
• W10 contracting for full capacity and selling
  under the W10 tariff
• Sold short term for 2006 and sold long term
  starting April 2007
• Washington 28 delta pressure
• Approximately 3 Bcf for 2007, subject to MPSC
  approval
• Negotiations underway for long term sales,
  conditional upon MPSC approval
• No storage available for 2007 at this time

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2008 Space Availability

• Washington 10 turnback
• Approximately 5 Bcf of turnback capacity is still
  available for April 2008
• Significant interest in this storage,
  negotiations underway
• Storage open season announced
• Other storage projects
• W28 delta pressure phase II and Shelby
  development
• Could be as much as 8 Bcf incremental, subject to
  regulatory approvals
• Significant interest in this storage,
  negotiations underway
• 2008 storage space is available, storage open
  season announced
• Open season closes September 20, 2006
• Offering existing capacity as well as expansion
  capacity
• For existing capacity, conditions include
  management approval
• For expansion capacity, additional W10 condition
  to receive all required approvals and
  authorizations by Dec 31, 2007

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Thank You for your business
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DTE Gas Storage CompanyMichigan Storage
DevelopmentChris Zona
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Storage Field Developments

• Washington 10 Update
• Washington 28 Project Overview
• Shelby 2 / Other MI Field Developments

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Storage Field Developments

• Washington 10 Update

• Washington 10 Phase II
• Field successfully delta pressured from 1,900 to
  2,122 psig
• Compressor Unit 5 to be online mid September
• Compressor Unit 6 to be online early October
• Remainder of station piping to be constructed in
  2007
• Acquiring Washington 10 from Leasing Agent

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Storage Field Developments

• Washington 28 Project Overview

• Project Components
• 20 Lateral (Washington 28 to Washington 10)
• Delta Pressure Washington 28 Reservoir
• Individual Filings
• I. Lateral Filing
• To be filed by Washington 10 Storage Corporation
• Approximately 2.8 Miles of 20 pipeline
• II. Washington 28 Delta Pressure Filing
• To be filed by South Romeo Gas Storage Company
• Proposed delta pressure to a maximum pressure
  gradient of 0.72

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Storage Field Developments

• Washington 28 Benefits / Timeline

• Benefits of Washington 28 Project
• W10 lateral solution is an economic solution as
  compared to rebuilding the existing compression
  at Washington 28.
• Proposed Phase I delta pressure of W28 will
  incrementally provide approximately 3.0 Bcf of
  working capacity.

Project Timeline
File Applications with MPSC - Early 4th
Quarter 2006 Receive MPSC Approval -
Early 2nd Quarter 2007 Construction -
2nd - 3rd Quarter 2007 Phase I In-Service
- Late 3rd Quarter 2007
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Storage Field Developments

• Shelby 2 Project Overview

• Shelby 2 Field Summary
• Niagaran Reef Formation
• Single Wellpad facility with horizontal wells
• Approximately 4.0 Miles of 20 Lateral to W10
• Utilize existing compression/process facilities
  at W10
• Approximately 8 Bcf of incremental working
  capacity propose phase-in over two year period

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Storage Field Developments

• Other MI Storage Projects in Development

Shelby 2 Project Timeline

• File Application with MPSC - Early 4th Quarter
  2006
• Construction - 4th Quarter 2007,
• Phase I In-Service - Early 2nd Quarter 2008

Other Southeast MI Storage Developments

• 25 30 Bcf of working capacity in early stage
  development for 2009

Other MI Storage Developments

• Northern MI Post 2010
• Transportation issues exist

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DTE Pipeline CompanyVector Pipeline Expansion
UpdateCraig Fishbeck
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DTE Pipeline CompanyMillennium Pipeline
UpdateJim Corrigan
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Logistics Wrap Up