DTE Midstream andDTE Gas Midstream Services

2018 Customer MeetingJuly 17 – 19, 2018

Steve HohfManager, Natural Gas Analytics

DTE Midstream

Welcome

2

Agenda PresenterWelcoming Remarks Steve Hohf

DTE Midstream (GSP) Nexus Pipeline Update Steve Hohf

Storage & Michigan Gathering Update Steve Richman

Operations & Logistics Update Nadine Mathis

DTE Gas (Midstream) Update Julia Huffman

Closing Remarks, Dinner and Activities Dan Brudzynski

DTE Midstream Customer MeetingTuesday, July 17, 2018

3

DTE Midstream Overview

4Visit us at: www.dtemidstream.com

DTE Midstream Footprint

5

6

NEXUS Project Update

7

NEXUS – Late-Q3 In-Service

Steve RichmanDirector, Marketing & Optimization

DTE Midstream

Michigan Update

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9

Michigan Platform

Regional Demand W10 Update DTE Michigan Gathering

Average weekly HDD’s across North Region

101. Source: S&P Global. Degree Day Data 6.7.18

0

10

20

30

40

50

60

70

North HDD

• Week of December 31, 2017 averaged 60 HDD across the region

• Winter 2017/18 rivaled the Vortex winter

Winter 2017/18 was COLD…. For a Long Time

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Several record peak days have been established the past few winters at Washington 10

12

(1,350,000)

(1,250,000)

(1,150,000)

(1,050,000)

(950,000)

(850,000)

W10 Historical Peak Days

W10-11 W11-12 W12-13 W13-14 (Vortex) W14-15 W15-16 W16-17 W17-18

With

draw

als

-(M

MBT

u)

13

(1,350,000)

(1,250,000)

(1,150,000)

(1,050,000)

(950,000)

(850,000)

W10 Historical Peak Days

W10-11 W11-12 W12-13 W13-14 (Vortex) W14-15 W15-16 W16-17 W17-18

Last winter persistent record cold temps created many high demand days for our W10 facility

With

draw

als

-(M

MBT

u)

Similar to the overall US, East North Central winter month consumption shows the storage component of gas supply often exceeds 40%

141. Source: GPCM / EIA- 2018

9

20

7

4

Jan

16

19

7

8

4

Feb

15

22

10

10

3

Jan

15

19

8

9

2

Feb

14

21

8

12

1

Jan

18

Jan

17

18

7

Jan

14

22

10

11

1

Dec

13

17

8

9

1Fe

b 13

17

8

9

1

Jan

13

17

8

8

1

Feb

12

16

6

9

1

Jan

12

16

7

9

1

Feb

11

16

7

9

1

Jan

2011

18

8

10

1

6

5

Storage WithdrawalsPipeline ImportsDry Production

Average Peak Winter Month Supply ComponentsBcf/d

44% 41% 41% 37% 46% 44% 45% 44% 38% 42% 45% 38% 39% 44%Storage Component Percent

• On the coldest peak months, like those in 2011, 2013 , 2014 and 2018 up to 45% of consumption is supplied by storage

Forecast

12.2

5.5

2017 2040F

15.0

6.0

3.1

5.3

0.6

2035F

14.4

5.8

3.2

4.8

0.6

2030F

13.1

5.7

3.3

3.5

0.6

2025F

12.6

5.6

0.5

3.1

3.4

2020F

5.5

3.4

1.9

0.411.2

5.2

3.5

2.7

0.5

2016

11.2

5.1

3.3

2.4

0.3

2015

11.1

3.3

2.3

0.4

East North Central demand growth will also be driven by the power generation sector

15Source: IHS Fall 2017 Rivalry Scenario – February 2018 update

East North Central Average Annual Natural Gas Consumption by SectorBcf/d

Segment Change (Bcf/d)% from ‘17 to ‘40

Fuel / Other +0.2 / +49%

Power +3.0 / 131%

Industrial -0.2 / -7%

Residential / Commercial +0.9 / +17%

East North Central

• With over 15,100 MW of coal generating plants retiring in the region through 2020 natural gas used for power generation is forecasted to increase

~3.8 Bcf/d

35% increase from last year for same time period

16

East North Central area retiring coal fired generating plants – 2016 Forecast

• Approx. 30,000 MW over the next 23 years

0

2,000

4,0006,000

8,000

10,000

12,00014,000

16,000

18,000

20,00022,000

24,000

26,000

28,00030,000

32,000

34,000

2040203820362034203220302028202620242022202020182016

MichiganIndianaIllinois Ohio Wisconsin

MW (Cumulative)

Source: IHS Fall 2015 Rivalry Scenario – February 2016 update

State

Total Forecasted

Retiring Coal Plants

Total Forecasted MW Retired

Illinois 30 11,229

Indiana 47 7,526

Michigan 48 8,459

Ohio 27 3,410

Wisconsin 30 2,436

Retired by 2040:

17

East North Central area retiring coal fired generating plants

• Approx. 37,000 MW over the next 22 years

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,00022,00024,00026,00028,00030,00032,00034,00036,00038,000

2040203820362034203220302028202620242022202020182016

WisconsinOhioMichiganIndianaIllinois

MW (Cumulative)

Source: IHS Fall 2017 Rivalry Scenario – May 2018 update

State

Total Forecasted

Retiring Coal Plants

Total Forecasted MW Retired

Illinois 27 7,034

Indiana 44 10,523

Michigan 44 9,304

Ohio 29 6,258

Wisconsin 18 3,876

Retired by 2040:

2016 Forecast

2017 Forecast

2018 Forecast

2018 Forecast

18Sources: DTE August 2017 and May 2018 Business Updates

In Michigan, both DTE and Consumers have announced plans to meet increased demand from generation while reducing carbon emissions

Impact to DTE Energy

• Gas and Renewable capacity (wind/solar) will be the beneficiaries of coal plant retirements

• DTE estimates that by 2030 – 60% of generation will be provided by sources other than coal.

• DTE has recently announced plans to double Renewable Capacity by 2022, mostly through new Wind projects. This will meet the state Renewable Portfolio Standard (RPS) legislation of 15% in 2021.

• DTE Electric has received approval to build an 1,100 MW CCGT Plant in East China Township, MI. Expected to be in-service Q2 2022.

Renewables and gas-powered generation are driving the shift from coal

W10 Update

• Summer Storage Refill (1)

• Hourly Balancing

• Station Projects– Compressor Unit 1 Overhaul– Office Upgrades/Control Room– Station Valve Replacement– Compressor Unit 3 Overhaul

• New Hire:Scott MarinoGas Storage Origination

191. As of July 13th

Union Gas 37%Bluewater 60%ANR 37%

• Some Niagaran production targets in Northern Michigan being explored along with Dundee / Detroit River targets

• Potential drilling in A1 carbonate and Utica Collingwood formations in future years

• Core Energy acquired Marathon’s Michigan interests

• Lambda Energy Resources LLC acquiring Merit’s Michigan assets

• Saginaw Bay Pipeline converted to dry transmission in June providing service to Consumers from Kalkaska (DTE Gas)

• Upgrades to existing flow computers are ongoing combined with communication updates related to DTE Gas Company’s SCADA upgrade

Michigan development: Limited producer activity creating some opportunity for existing DTE Pipeline Company assets

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Saginaw Bay Pipeline

Wet Header Pipeline

DTE Gas CompanyWet HeaderDry HeaderSaginaw BayOther Gathering

Legend

AEP Pipeline

Presenter: Steve RichmanDirector, Marketing and Optimizationsteven.richman@dteenergy.com

Thank You!

21

Nadine MathisDirector, Operations & Logistics

DTE Midstream

Operations and Logistics Update

22

Operations & Logistics

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Contracts

W10, MiGathering,

LINK, Bluestone & Birdsboro

Gas Management (Nominations)

W10, LINK, Bluestone & Birdsboro

Exception: MiGathering (DTE Gas)

Invoices

W10, MiGathering,

LINK, Bluestone & Birdsboro

• Our partners in NEXUS, Vector and Millennium handle the contracts, gas management and invoices

DTE Michigan Gathering

Split handling the day-to-day needs of our DTE Michigan Gathering customers

DTE Midstream (Operations & Logistics) Starting point for new business All changes to existing business

• Contract and/or meter assignments• Requests for well shut-ins, reactivations or terminations• Accounting

DTE Gas Company Services related to day-to-day business and operational matters

• User credentials• Agency agreements• Nominations• Measurement• Field operations

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Contacts - DTE Michigan Gathering

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Contacts - Operations & Logistics

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www.dtemidstream.com

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User Access

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Gas Management System Change

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• New Nomination System platform for Washington 10– Kicked off December 2017

• Currently utilize Trellis for pipeline assets– LINK (AGS/SGG)– Bluestone– Birdsboro

• Completed W10 Gas Storage Trellis 6.2 Preparation in January 2018– Updated company details, addresses, user details & credentials

• Implementation – Q4 2018

Julia HuffmanManager, Midstream Origination &

OptimizationDTE Gas

DTE Gas Midstream Update

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DTE Gas within the broader organizational structure

31

DTE Gas• Natural gas transmission,

storage and distribution• 1.3 million residential

customers• Fully regulated

Gas Storage & Pipelines• Transport, store and gather

natural gas• 5 pipelines, ~91 Bcf storage

Power & Industrial Projects• Own and operate energy

related assets• 16 states

Energy Trading• Active physical and financial

gas and power marketing company

75% - 80% Utility Growth driven by investments aimed at

improving reliability

20% - 25% Non-utility Growth driven by strategic opportunities

DTE Electric• Electric generation and

distribution• 2.2 million customers• Fully regulated

Introductions to the DTE Gas team members

32

Jerr

y N

orci

aPr

esid

ent a

nd C

OO

DTE ElectricTrevor Lauer

President and COO

DTE GasMark Stiers

President and COO

Engineering Services

Gas Operations

Strategic Planning

Gas Sales & SupplyDan BrudzynskiVice President

Gas Control, System Planning & Gas

Nominations

Gas Sales & MarketingHJ Decker

Director

Home Services

End User Transportation

MidstreamJulia Huffman

Manager

Asset OptimizationLisa Kramer

Manager

MarketingRachel MeckTom BudzynJohn LobbiaCompressed Natural

Gas

Customer/Operational Performance

New Markets

Gas Supply

DTE Gas Storage & Pipeline

David SlaterPresident

Power & IndustrialDavid RuudPresident

Major Enterprise Projects

Robert RichardSr. Vice President

DTE Gas Midstream Services maximizes the utilization of ~2,000 miles of transmission lines and ~140 Bcfworking gas storage

33

W10Union

Belle River:VectorGLGTANR Link

Willow:ANR

PEPLNEXUS

Consumers

ANR-Woolfolk

ANR-Kalkaska

DTE Gas Storage Facility (depleted reservoir)

Vector-Milford

34

Big changes on the DTE Gas system – NEXUS Gas Transmission capacity lease

Map from NEXUS Gas Transmission website 6/15/18

NEXUS Capacity Lease highlights:

• NEXUS Ypsilanti will be added to the list of Michcon Generic points

• 1.1 Bcf/d lease from NEXUS Ypsilanti (Willow) to Vector and Union

• 49,885 HP added to DTE Gas system at Willow and Milford

• Nomination system upgrade

35

NEXUS capacity lease provides access to receipt and delivery points on the DTE Gas system from Willow to Union

Willow: ANR, PEPL, NEXUS

Vector-Milford

W10 Belle River: Vector, GLGT

Union

Consumers

Receipt Delivery

Prim

ary NEXUS Ypsi Vector-Milford

Vector-Belle RiverUnion St. Clair

Sec

onda

ry

ANR-Willow ANR-WillowPEPL PEPLConsumers ConsumersWashington 10 Washington 10GLGT GLGTStorage Storage

Closing Remarks

Dan BrudzynskiVice President, Gas Sales & Supply

DTE Gas

36

Wednesday July 18, 2018

• Golf – Grand Traverse Resort – The Bear 7:30 am – Breakfast at Club House 8:30 am – First tee time 1:00 pm – Lunch

• Bike / Brewery Adventure 8:00 am – Breakfast – pick up in Resort Lobby 9:00 am – Bus departs for Filling Station Brewery 9:30 am – Bike tour begins 12:30 pm – Lunch / Filling Station Brewery 2:00 pm – Board bus back to Grand Traverse Resort

Social Activities

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Wednesday July 18, 2018 (continued)

• Spa Grand Traverse – By appointment (schedule with Della) 9:00 am – 2:00 pm – Scheduled appointments 12:00 pm – Lunch vouchers provided

• Cocktail Reception and Dinner 5:30 pm - Pavilion

• Cocktails on the Bay – Rooftop bar overlooking Grand Traverse Bay 8:00 pm – Meet in Resort lobby & board bus to Hotel Indigo 8:30 pm – Cocktails on the Roof Top / H&L Social 11:00 pm – Board bus back to Grand Traverse Resort

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Social Activities

Thursday July 19, 2018

• Golf – Lochenheath Golf Club Transportation on your own (7951 Turnberry Circle,

Williamsburg, MI Phone: 231-938-9800) 7:30 am – Pick up Box Breakfast in Resort lobby 8:30 am – First tee time

39

Social Activities

On behalf DTE Energy – Thank You!