RP-20000-110

Trafalgar Facilities Expansion Program

Briefing Outline

ANNUAL MARKET REQUIREMENTS

In-franchise Requirements

Existing Transportation Service Requirements

Signed New Transportation Service Requirements

New Transportation Service Requirements

Total Transportation Service Requirements

Ref. Sect3/Sch1-2001-2005 Total Throughput Volumes Forecast

Ref. Sect 3/Sch 2 2001-2005-Total Customer Forecast

Ref. Sect 3/Sch 5 2001-2005- Firm Transportation Daily Contract Demand (GJs)

NEED FOR PROPOSED FACILITIES

Design Day Demand (annual market requirements transformed to DDD) 3 groups of customers:

1. In-franchise General Service Customers in the Southern Area

2. Contract Customers in the Southern Area

3. Customer who require Transportation from Dawn to Parkway or Dawn to Kirkwall

1. Delivered to Parkway by Trafalgar line and then moved by displacement by TCPL to Union's in-franchise customers in Northern and Eastern areas

2. Ex-franchise customers who contract for transportation service from

Dawn to either Kirkwall or Parkway

a unique component in modeling the DDD is Design Day Supply Delivery at Parkway-Forecasts at Schedule 6

System Planning Criteria (establishing the need)

System Capacity (how the expanded capacity will meet the forecasted demand)

Alternatives to the proposed project

Non facility Alternatives

Winter Peak Service (WPS)

TCLP Firm Transportation (FT)

Facilities alternatives

Long-term TFEP

Physical Capacity vs Design Day Demand

One loop expansion vs proposed two loop expansion

PROJECT COSTS

Ref. Sect 5/Sch 1- Total Estimated Pipeline Capital Costs (aggregate for both pipelines)

Ref. Sect 5/Sch 2- Total Estimated Environmental Costs (aggregate for both pipelines, pre-construction; construction ,post-construction; 2001 construction assumed)

Ref. Sect 5/Sch 3- Total Estimated Bright Compressor Station Tie-ins Capital Costs

PROJECT ECONOMICS

Three Stage Analysis to assess the economic feasibility (EBO 134)

Stage 1- DCF PI 0.75; NPV ($21.3 million) (Ref. Sect5/Sch4/p1-4)

Stage 2- benefit/cost analysis (10% social discount rate, 30 year horizon ($36.4million))	(Ref. Sect5/Sch7/p1-2)

Stage 3- Other Public Interest considerations- quantitative + qualitative

social benefits (Ref. Sect5/Sch8)

Economic Analysis and Long Term Expansion Plan (Ref. Appendix A)

RATE IMPACTS

Project impacts on rates: M12 and on general service category customers - residential, commercial and small industrial

Asset utilization risk management

Flexibility of delivery points

FACILITIES CONSTRUCTION

Design Specifications (Ref Sect4/Sch 3)

Pipe Specifications (Ref Sect4/Sch 3)

Construction Procedures (Ref Sect4/Sch 1)

Project Schedule (Ref Sect4/Sch 2)

ENVIRONMENTAL MATTERS

LAND MATTERS