History & Background

History

• Regulated public utility that

purchases, sells and transports

natural gas

• Established in 1938 by Gastonia

businessman Charlie Zeigler

• In 1951, became the first

distribution company in North

Carolina to tie into the Williams

Transcontinental Gas Pipeline as it

crossed Gaston County

• Merger with SCANA Corporation

in 2000

Service Territory

• 560,000 customers• 851 employees• 29 offices

• 557 miles of transmission pipeline• 11,588 miles of distribution pipeline

Video Overview

Products & Assets

Product Offerings

Compressed Natural Gas (CNG)

• 10 CNG fueling stations availableto the public across our service territory

• 4 million gallons sold system wide last year

• Over 200 company fleet vehicles powered by CNG

CNG is a readily available alternative to gasoline that’s made by compressing natural gas to less than 1% of its volume at standard atmospheric pressure

PSNC CNG -

Liquefied Natural Gas (LNG)Natural gas is condensed to a liquid by cooling it to about -260°F (-162°C)

This process reduces its volume by a factor of more than 600—similar to reducing the natural gas filling a beach ball into liquid filling a ping-pong ball

Growth Related Projects

Growth Related Projects

T-01 Pipeline Replacement Project

• Completed Phase 1 – replaced a 25-mile-long section of natural gas transmission pipeline that runs through Polk, Henderson, and Buncombe Counties. Replaced a 1950’s vintage 8-inch pipeline with a new 20-inch pipeline.

• Completed Phase II – installed 48 miles of new 24-inch transmission pipeline through Cleveland, Rutherford and Polk counties. Plans are to complete by year-end 2017.

• Phase III involves installing three miles of new 20-inch transmission pipeline from the end of Phase I in Asheville to Duke Energy’s Skyland electric generation facility. Completion scheduled for April 2018.

• Construction of new compressor stations in Cleveland and Polk counties in NC is scheduled to take place in 2018.

T-01 Phase II

Boring Process

Compressor Stations

T-030 Pipeline Extension Project

• As a result of the strong residential, commercial and industrial growth in both Franklin and Wake counties, there is an increasing demand for natural gas. We are extending a transmission pipeline from Franklinton, NC south to Clayton, NC to meet that growing demand.

• The new transmission pipeline will consist of 37 miles of 20-inch pipeline through Franklin, Johnston, and Wake counties in NC.

• The new pipeline will terminate at the Clayton supply interchange facility which will also serve as a future supply interchange with the Atlantic Coast Pipeline project.

T-030 Route

Atlantic Coast Pipeline

• A 600-mile interstate natural gas transmission pipeline, expected to bring 1.5 billion cubic feet of natural gas per day to North Carolina and Virginia.

• The pipeline will begin in Harrison County , WV, and extend southeast through Virginia and then run south to its terminus in Robeson County, NC.

• The pipeline will be 42 inches in diameter through WV and VA and will transition to 36 inches in diameter in NC.

• Pending regulatory approvals, the projected in-service date is second half of 2019, and PSNC plans to be a customer of the pipeline under a 20-year contract.

Pipeline Safety

Regulatory Umbrella

D.O.T.FRA

FHWA

FAA

P.H.M.S.A.(Pipeline & Hazardous Materials Safety Administration)

FTA

NHTSA

FMCSA

N.T.S.B.

N.C.U.C.(North Carolina Utilities Commission)

• We patrol and monitor our system every day – driving parts, walkingparts, and even flying sections

Inspections and Maintenance

• We operate every valve on our system annually to ensure that it is ready for operation in case of an emergency

• We monitor our systems 24x7 with a state of the art SCADA and control room

• Monitoring system flows and pressures across the transmission and select pressures across distribution system

• We induce an electrical voltage on steel pipe to prevent it fromcorroding

• This works in tandem with the coating on the steel pipe

• Natural gas is naturally odorless, colorless, noncorrosive & nontoxic• We add an odorant to ensure that leaks can be detected at very small

concentrations

• We get thousands of notifications every day that someone will bedigging around our lines

• Every day we mark our facilities in the field so that excavators canavoid damaging our facilities

• We conduct a leakage survey of our system each and every year• We inspect certain areas more frequently – transmission lines,

high pressure lines, & business districts• Most leaks are repaired when found but we monitor even all leaks

until repaired

Smart Tools (“pigging”)

Specialized Transmission Inspections

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Questions