This proposal from Spectra Energy provides two options for Maine to consider regarding Energy Cost Reduction Contracts: 1) Atlantic Bridge, which would expand existing pipelines by 2017 and provide up to 200 MMcf/d of capacity at a negotiable rate. It offers flexibility and protections for Maine. 2) Access Northeast, a collaborative project with Northeast Utilities targeting 2018 that is more regional in scope and would further expand pipeline infrastructure. Maine could participate through various means. Both projects are argued to fulfill Maine's objectives of enhancing capacity and reliability while reducing energy costs for consumers.

1. This document and any and all attachments hereto: (i) are intended for discussion purposes only; (ii) do not
obligate the parties to negotiate or enter into any possible transaction; (iii) do not obligate either party to
proceed with or continue any such negotiations or transaction.
9/29/2014
Proposal Submitted to the
Maine Public Utilities Commission

2. Table of Contents
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Page
Executive Summary 3
Spectra Energy’s Proposal 7
Appendix
Spectra Energy Overview 17
Business Segment Overview 19
The Way Spectra Energy Works 20
Regulatory and Permitting 21
Environmental Stewardship 25
Stakeholder Outreach 28

3. Executive Summary
At the outset of Phase One of Docket No. 2014‐00071, the Maine Public Utilities Commission (Commission or
PUC) invited the submission of proposals for the State of Maine to consider regarding Energy Cost Reduction
Contracts (ECRC). Spectra Energy Partners, LP (Spectra Energy) has a long‐standing presence in New England as
major transporters of natural gas through Algonquin Gas Transmission, LLC (Algonquin) and Maritimes &
Northeast Pipeline, L.L.C. (Maritimes), and welcomes the opportunity to work with the PUC to develop the
infrastructure required now, and in the future, to help alleviate regional energy price spikes during the coldest
days of winter. We believe our proposal maximizes the opportunity to decrease capacity costs and enhance
electrical and natural gas reliability throughout the region.
While we remain supportive of a full, transparent Request for Proposal (RFP) in Phase Two of the instant
proceeding, we are mindful of the Commission’s need to have all information available to it as it deliberates
even within Phase One and as such are providing these proposals for Atlantic Bridge and Access Northeast as the
Commission considers next steps. Our proposals closely reflect the project descriptions we introduced in Phase
One. In the case of Atlantic Bridge in particular, the deadline for filing with FERC to ensure a November 2017 in‐service
date is rapidly approaching. This fact, coupled with recent delays in the current ECRC case, necessitated
that we submit our proposal at this time. In short, if the Commission decides to proceed with an ECRC, our hope
is to expedite the process by which the Commission would be able to move forward.
This proposal is intended to provide the Commission with flexible alternatives for exercising its ECRC authority,
depending in part on the results of Phase One of this proceeding. If the Commission determines that Maine
should move forward with an ECRC at this time, our proposal enables the Commission to enter into an ECRC of
up to 200MMcf/d or $75 million/year equivalent as part of the Atlantic Bridge project, maximizing the benefits
available to the state from an incremental expansion of the existing Algonquin pipeline as early as 2017.
Our proposal also allows the Commission to enter into an ECRC for a later in‐service date through participation
in the Access Northeast project. Like Atlantic Bridge, the Access Northeast project offers the benefits of
deliverability to gas‐fired generators in the region, and it also offers the benefits of collaboration with Northeast
Utilities, one of the region’s largest utilities. The Access Northeast project demonstrates the importance of
providing services that directly meet the needs of gas‐fired generators. This innovative offering, combined with
the resources of the partners, enhance the certainty that this project will move forward.
Drawing upon Spectra Energy’s successful history of developing, constructing and operating natural gas
pipelines, the proposed projects contained within this proposal address the Commission’s objective to reduce
energy prices and enhance electrical and natural gas reliability in the State.
Bidders Information
Spectra Energy owns and operates the 1127‐mile, Federal Energy Regulatory Commission (FERC) regulated
Algonquin Pipeline and the 346‐mile, FERC‐regulated Maritimes Pipeline. Algonquin interconnects with the
Spectra Energy‐owned Texas Eastern Transmission system, the Tennessee Gas Pipeline system, the Millennium
Pipeline, and the Iroquois Pipeline system, all of which link the Marcellus Shale and Appalachian Basin natural
gas supplies to the Northeast markets. Through Algonquin’s connection to Maritimes, markets in
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4. Massachusetts, New Hampshire and Maine will also have the opportunity to connect to these diverse and
emerging natural gas supplies. To discuss any questions or to seek additional information regarding this
proposal, please contact:
Greg Crisp
General Manger, Business Development 713‐627‐4611 phone
Spectra Energy Transmission 713‐627‐4724 fax
5400 Westheimer Court gncrisp@spectraenergy.com
Houston, TX 77056
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5. Key Features
Value Added Benefits of Service from Algonquin and Maritimes:
 Provides an opportunity to bring more low‐cost, domestically sourced natural gas to delivery points in Maine
that serve gas‐fired electric generators, industrial customers, and other energy consumers in Maine or the
region through scalable expansions of the existing Algonquin and Maritimes pipeline systems and offering
receipt and delivery points on those systems, including direct delivery points to 60% of the gas‐fired
generation fleet in the region
o This is important because the best way for Maine to moderate electric prices in the region is to
ensure that gas can be directly delivered to the greatest number of gas‐fired generators in the
region on peak days, and our proposal is consistent with this approach.
 Offers flexible terms with multiple protections for Maine’s potential investment in pipeline capacity
o Flexible commitments that can be altered, rescinded, or changed as market conditions evolve
o Maximum ability to assign capacity to other entities
o Fully negotiable costs that are not incurred until projects are in‐service
o Explicit contractual provisions to protect Maine’s ratepayers should a regional solution emerge prior
to the FERC filing of the projects
 Includes mechanisms to promote maximum return on investment by leveraging private commitments and
shifting an ECRC investment to the project or projects likely to yield the best results
 Provides optimal timeliness to market. Our solution allows natural gas capacity to reach gas‐fired
generators in the region sooner than uncertain greenfield proposals, which is important given that every
year of delay costs Maine consumers.
 Provides direct deliveries of domestically sourced natural gas to Maine in the fastest timeframe
 Provides innovative use of existing resources in the region by leveraging storage to meet peak day needs
 Atlantic Bridge and Access Northeast maximize the use of existing rights‐of‐way and do not substantially rely
on greenfield construction, which can be susceptible to substantial delays due to public opposition and
mitigation of environmental impacts. Thus, Maine can have greater confidence that our projects will come
online within the projects’ time estimates.
 Offers better coordination between electric sector and natural gas sector through collaboration between
Northeast Utilities and Spectra Energy
 Does not hinge on achieving a certain level of subscription from third parties outside of Maine’s control
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6.  Includes extending the upstream Algonquin piping as needed, the replacement of existing pipe with larger
diameter pipe, pipeline looping, miscellaneous meter station upgrades, the addition of new compression as
needed, and the potential for bidirectional flow on the Maritimes pipeline
 Provides assurances that come with FERC‐jurisdictional oversight regarding the sensitivities of landowners,
environmental resources, cultural resources, and other stakeholders who might be impacted during
construction, as well as continued oversight of the transportation service on Algonquin and Maritimes
throughout the contract term
 Provides additional diversity of supply as traditional supply sources decline
 Provides reliable firm transportation service directly to end users
 Provides access to premium natural gas commodity markets resulting in unmatched optionality
 Projects are scalable to meet the specific capacity requirements of the market and the State of Maine
 Directly impacts reliability leading to more balanced supply and demand
 Spectra Energy has a proven track record for constructing and operating pipelines in New England and
throughout North America
Together, Atlantic Bridge and Access Northeast will help remove bottlenecks in New England’s pipeline
infrastructure and reduce electric and natural gas price volatility in New England.
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7. Proposal
Atlantic Bridge
Spectra Energy is proposing to expand the existing Algonquin and Maritimes pipelines to meet the needs of
consumers, serving growing markets in New England and Maine. On the Algonquin system, the expansion will
consist of the replacement of smaller diameter pipe with larger diameter pipe, pipeline looping at some points
along the existing system, miscellaneous meter station upgrades, the addition of a new compressor station in
Weymouth, Massachusetts, and additional compression at existing stations to facilitate the flow of gas north
into Maritimes. On the Maritimes system, modifications could include bidirectional flow modifications
depending on the ultimate requested flow into the Maritimes system.
The capacity being built through the Algonquin Incremental Market expansion (AIM) (in‐service in 2016) and
Atlantic Bridge projects could provide 600 MMcf/d of new capacity into ISO‐NE territory, resulting in a 60%
increase through current constraint points on Algonquin by 2017. Both projects will enchance electric and
natural gas reliability throughout New England and will bring postitive economic benefits directly to Maine
energy consumers.
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8. Market response to Atlantic Bridge has been strong, and the project will go forward with or without an ECRC
from the Commission. The project will be supported by private entities, including private entities in the State of
Maine requesting specific Maine deliveries. Algonquin and Maritimes are in the final stages of negotiations for
Atlantic Bridge, and the project is anticipated to be buildable at 200‐300 MMcf/d for a 2017 in‐service date.
Today, the final capacity for Atlantic Bridge is not known for certain. This final capacity is dependent upon
specific receipt and delivery points which will ultimately determine the facilites required and dictate the amount
of capacity that may be constructed for a 2017 in‐service date.
Algonquin and Maritimes intend to pre‐file Atlantic Bridge with FERC in early November 2014. At that time,
Algonquin and Maritimes can provide a more definitive description of how much capacity is available, if any, and
how much of the capacity will be directly deliverable to Maine. Prior to the filing or after the filing, Maine can
enter into an ECRC to ensure that Atlantic Bridge goes forward at the maximum buildable capacity and
maximum deliverability to Maine for 2017, and ensure that no time is wasted in securing benefits for Maine as
soon as possible.
 Capacity can be for up to 200 MMcf/d or $75 million/year, depending on the amount of unsubscribed
capacity, if any, available at the time Maine is able to enter into a definitive agreement
 In‐service date of November 1, 2017
 Maine can designate any of the following receipt points:
o “Head of G system” – Algonquin market area receipt
o Brookfield interconnect with Iroquois – equivalent to TGP’s Northeast Energy Direct receipt at
Wright, NY
o Ramapo interconnect with Millennium – direct access to Marcellus producers
o Interconnects upstream of Ramapo with recently expanded interstate pipelines such as Texas
Eastern, Columbia, Transco, and Tennessee Gas Pipeline
 Maine can designate any of the following delivery points:
o Any Algonquin delivery point Maine determines is in the best interest of Maine consumers, including
the Algonquin interconnect with Maritimes at Beverly, MA
o Any Maritimes delivery point in the State of Maine
o The Commission may also express any interest in new interconnects to connect Maine customers
 Rate to be negotiated in a confidential meeting
 All capacity commitments to the maximum degree allowed under current regulations can be assigned to
another party or parties.
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9.  No costs will be incurred until the project is in service
 To the extent that private entities or other shippers subscribe to the maximum build for the project in 2017
outside of an ECRC, Maine will be able to reduce or terminate its participation in Atlantic Bridge
 Regardless of any conditions above, Maine will have a unilateral right, subject to negotiable conditions
precedent, to terminate its participation in the project prior to July 1, 2015, at no risk to Maine
 Additionally, if Algonquin and Maritimes move forward with a regional solution, we will discuss termination
of Maine’s participation in Atlantic Bridge and Access Northest, the Algonquin and Maritimes regional
solution
Access Northeast
On June 27, 2014, Spectra Energy provided a plan to the New England States Committee on Electricity (NESCOE)
to expand existing natural gas pipeline capacity and meet critical demand for reliable electric power generation.
This was in response to the New England governors’ initiative on new energy infrastructure in anticipation of a
Request for Proposal (“RFP”). Unfortunately, the NESCOE RFP effort has been delayed; however, Spectra Energy
and Northeast Utilities are moving forward with the Access Northeast project to help maintain the momentum
of the process and to provide a regional solution. We continue to believe the NESCOE process is good for New
England and Maine, and we applaud the leadership and commitment demonstrated by the States to achieve
positive results for New England energy customers.
Consistent with information provided by Algonquin and Maritimes in the ECRC proceeding, the Commission will
recognize Access Northeast as the project regularly referred to as the “Reliability Project.” And we have made
progress in further developing the project. We have a leading New England utility as a project partner, and
together we are actively pursuing contractual commitments from shippers. Access Northeast is an alternative to
a large greenfield proposal and is better focused on addressing electric reliability for New England. Access
Northeast will provide innovative alternatives and solutions long sought by electric generators to improve
reliability and bring down energy costs in the region, but without the environmental impacts of a greenfield
project.
The expansion project will enhance the Algonquin and Maritimes pipeline systems, using existing routes to
minimize impacts on communities, landowners, and the environment. The project will be scalable to meet
growing needs by expanding access to clean, abundant, and affordable natural gas, and it will be capable of
reliably delivering in excess of one billion cubic feet of natural gas per day to serve the region's most efficient
power plants and meet increasing demand from heating customers. Access Northeast will combine targeted
pipeline capacity additions with the smart use of regional storage facilities to more effectively match the
economic and environmental needs of the region.
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10. Spectra Energy and Northeast Utilities’ collaborative proposal includes:
 Scalable expansion of existing pipeline infrastructure, which is directly attached to approximately 60% of
ISO‐NE’s natural gas generation capacity
 Collaboration with existing regional storage providers to offer firm services to gas‐fired power plants in the
region with guaranteed natural gas supplies on peak days, and to enable rapid response to sudden changes
in power output that supports renewable generation development
 An environmentally responsible approach that will minimize impact by using existing asset footprints
 Additional Algonquin and Maritimes delivery points for local distribution companies (LDC) to access diverse,
low‐cost natural gas resources where necessary
Access Northeast is a direct response to numerous requests from regional stakeholders and governmental
agencies in New England for an environmentally responsible, scalable, efficient and effective pipeline project to
meet the needs of energy consumers in New England over the next decade to keep energy prices at competitive
levels with a low risk of volatility. Spectra Energy’s and Northeast Utilities’ collaborative solution and
partnership with regional stakeholders achieves all of these objectives by providing access to low‐cost supply
diversity while minimizing community and environmental impacts through the enhancement of existing
infrastructure. Access Northeast is scalable for further expansion, and is projected to be in service as early as
November 2018.
Maine can participate in Access Northeast in one of the following ways, either in addition to Atlantic Bridge, or
separately:
 Through support and continued pursuit of the NESCOE process
 By leveraging its ECRC authorization with other New England States who currently have the ability to direct
their regulated utilities to subscribe to capacity
 By subscribing to the scalable Access Northeast project on a stand‐alone basis
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11. Benefits of Atlantic Bridge and Access Northeast
Best Fulfills the Requirements of the Energy Cost Reduction Act and Represents True
Transformative Capacity:
To enter into an ECRC per the Energy Cost Reduction Act, the Commission must have determined in an
adjudicatory proceeding that the ECRC is commercially reasonable and in the public interest, and that the
contract is reasonably likely to accomplish the following objectives:
 To materially enhance natural gas transmission pipeline capacity into the State or into the ISO‐NE region;
 that the additional capacity it provides will be economically beneficial to Maine's electric consumers, natural
gas consumers, or both;
 that the overall costs of the contract are outweighed by its benefits to Maine's electric consumers, natural
gas consumers, or both; and
 To enhance electrical and natural gas reliability in the State.
Atlantic Bridge and Access Northeast exactly meet the foregoing criteria.
Commercially reasonable terms. The contractual terms of both projects are commercially reasonable because
they reflect FERC‐approved language and accomplish the following goals: (1) maximize deliverability to gas‐fired
generators; (2) meet the goal of speed to market; and (3) provide the Commission with contractual “off‐ramps”
in the event later events suggest that an ECRC is no longer prudent in any way.
Public interest. A key element is whether the Commission determines in Phase One of the ECRC proceeding
that moving forward with an ECRC is prudent. If the Commission decides in the affirmative, the Atlantic Bridge
and Access Northeast projects will maximize the public interest because these projects: (1) are most likely to
reach market sooner than other proposals; (2) are most likely to proceed to completion given the incremental
nature of the projects; and (3) offer the greatest benefits of reliability and lower costs because they target gas
capacity toward the greatest number of gas‐fired generators in the region.
Material enchancement of capacity to Maine or the region. Because both projects involve bringing gas
capacity into New England, they meet the “material enchancement of capacity” test. Both projects also offer
the additional benefit of delivery directly into Maine.
Economic benefits to Maine consumers. Both projects are targeted at bringing natural gas capacity where it is
most needed: gas‐fired generators in the region. Ensuring that gas is deliverable to these generators maximizes
the likelihood that the greatest number of gas‐fired generators will have firm capacity during the coldest days of
winter, which ensures lower electric price volatility and lower overall electric prices. The additional capacity also
addresses the needs of natural gas consumers in the State by permitting access to lower cost supply from
existing pipeline interconnects.
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12. Benefits outweigh the costs. The Commission has embarked on a separate process to determine whether the
benefits of entering into an ECRC outweigh the costs. If the Commission finds in the affirmative based on the
information available at this time, both projects offered by Spectra Energy maximize the benefits to Maine by
targeting Maine’s investment where it is most needed: ensuring that the greatest number of gas‐fired
generators are able to have firm capacity during the coldest days of winter. Both projects also offer contractual
“off ramps” for the Commission in the event later events suggest that moving forward with an ECRC is no longer
in Maine’s best interest.
Enhance reliability. The current problem of electric price spikes in New England is fundamentally an issue of
gas‐fired generators in the region not having sufficient access to gas capacity during the coldest days of winter.
This is a reliability problem, and both projects Spectra proposes are aimed at resolving the reliability problem by
targeting gas capacity directly at these gas‐fired generators. Moreover, by resolving the reliability challenge
these generators face, the ability of these generators to operate during the coldest days of winter is enhanced,
which improves the overall reliablity of the region’s electric system.
Flexible Conditions Precedent and Variation of Volumes and/or Contractual Off‐ramps
for PUC Contracts Gives Multiple Protections for Maine’s Potential Investment:
Maine’s energy consumers and the Commission face an extraordinary dilemma. High price spikes in regional
natural gas and electricity pricing during the winter have recently undermined Maine’s economic vitality, but
there is the possiblity these spikes could be mitigated with sufficient, timely investment in natural gas pipeline
facilities. The regional nature of energy pricing means all consumers in the region could benefit from an
investment in gas capacity, but regional cooperation to solve the issue has slowed. Nevertheless, the benefits of
Maine taking action on its own could be meaningful. At the same time, those benefits could be overwhelmed by
actions of other entities in the market. Or, those benefits could be drastically reduced if the regional process
restarts after Maine decides to invest on its own. Absent favorable action by other regional players or FERC, an
ECRC could saddle Maine ratepayers with extra costs even though the Commission appropriately exercised its
authority when signing an agreement.
The Commission, therefore, needs assurance that it is investing in the right project at the right price at the right
time. But there is no crystal ball. One cannot know for certain when signing a precedent agreement if the
capacity being purchased will provide the energy cost reductions anticipated given the variety of factors at work.
Nevertheless, standard terms, conditions and obligations of parties to a precedent agreement need not be a
constraint. In fact, Spectra Energy is offering the Commission agreements on Atlantic Bridge and Access
Northeast that can be evaluated and rescinded prior to project filings with FERC. This unique feature gives the
Commission the luxury of reevaluating the cost/benefit ratio of its investment closer to project execution and,
therefore, provides more certainty about the likelihood of benefits. In addition, as conditions in the market are
evaluated in the future, the Commission could determine there are more impactful projects, rescind its
agreement, and redeploy its investment. More specifically, the contractual “off‐ramp” included within these
proposals enables the Commission to later determine whether future private or regional investments in pipeline
capacity alter the calculus of benefits of an ECRC. If, under these circumstances, the Commission determines
within the terms of the “off ramp” that moving forward with an ECRC is no longer warranted on the same terms,
the Commission would have room to back out of the contract or make a more limited, strategic investment in
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13. capacity at a specific location aimed at addressing a particular bottleneck that impacts the ability of one or more
gas‐fired generators to have access to gas during the coldest days of winter.
Atlantic Bridge:
The PUC or its designee can execute a precedent agreement for up to 200 MMcf/d or $75 million/yr equivalent
capacity that includes periodic updates on how much capacity is committed to other Maine entities. For each
increment of additional Maine‐based capacity, the Commission can elect to scale back its investment as the
project is filled out to maximum capacity for a 2017 in‐service date. This allows the PUC optionality to re‐deploy
its investment as it sees fit. No firm transportation service agreement is executed until after receipt of the FERC
certificate for the project, and no payments under that service agreement are required until the project is
placed into service.
Access Northeast:
An Access Northeast precedent agreement is fully assignable with termination rights for certain circumstances.
We are confident that Access Northeast could proceed based on market support irrespective of a Maine ECRC.
Therefore, we can provide maximum flexibility for a partial or complete contractual off‐ramp for Maine in the
event a regional effort proceeds that Maine believes will make an ECRC unneccessary or uneconomic. In our
proposal, protection of Maine’s ratepayers would not be subject to a supplemental regulatory process or
capacity release rules, provided the firm service agreement has been executed at the time the PUC would want
to exercise this out.
Assessing the future impact of an ECRC is is extremely difficult. Depending on the circumstances, the benefits of
an ECRC may not actually outweigh the costs. If the Commisssion decides at this stage to proceed with an ECRC
but later becomes concerned that any of the benefits may not be realized (e.g. market reforms impact basis
differential and reliability, private market actors secure sufficient commitment for other pipeline capacity), the
Commission can terminate its precedent agreement within a mutually agreeable timeframe.
Promotes Maximum Return on Investment by Leveraging Private Commitments:
For Atlantic Bridge, private interest in the project is sufficient at this time for Algonquin and Maritimes to say
with confidence that the project will move forward. For Access Northeast, Northeast Utilities’ interest in the
project as one of the region’s largest utilities also signals the importance of this project to the needs of electric
consumers. By targeting capacity towards the gas‐fired generators who typically set the market price for electric
commodity in the region, Access Northeast offers the greatest opportunity to maximize the benefits of
additional gas capacity on regional electric prices.
Timeliness to Market:
The sooner pipeline capacity is added, the sooner Maine will see lower energy costs. Assuming the Commission
moves forward to Phase Two, the Commission should select the project with the best chance of providing quick
and tangible benefits to Maine energy consumers. This proposal provides those benefits, and does so with the
speed‐to‐market the State expects. Atlantic Bridge is proposed to be in service by the winter of 2017‐2018. The
project is largely a replacement and modification of existing pipelines that requires work on facilities covering
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14. relatively few miles, is located on existing rights of way, and is being conducted by a pipeline developer with a
history of meeting in‐service dates for projects in congested areas, including Boston, New York, and
Philadelphia. Access Northeast is planned for similar construction techniques with a proposed in‐service date in
November 2018. Pre‐filing with FERC for Atlantic Bridge is expected in the fourth quarter of 2014.
Scalable Expansion of Atlantic Bridge/Access Northeast:
The Atlantic Bridge and Access Northeast projects are flexible and easily scalable because the expansions occur
primarily within the existing pipeline footprints. These projects can be sized to meet the specific capacity
requirements of the Maine market, allowing for customized receipt and delivery points (including multiple
receipt and delivery points) to meet individual customers’ needs. Adding right‐sized expansion projects along
the system also provides incremental pipeline capacity as it is needed, when it is needed, to satisfy increased
customer demand.
Atlantic Bridge and Access Northeast are projects that involve the incremental expansion of existing gas
infrastructure that is scalable to meet the needs of specific shippers in specific locations. In contrast to a
greenfield project that requires a substantial level of commitment by shippers to move forward, the ability of
the incremental projects to proceed is less dependent on the actions of others. So, as Maine decides whether to
invest in projects that are more likely to happen, it should give serious consideration to incremental projects like
Atlantic Bridge and Access Northeast whose size can be adjusted to meet the needs of the shippers, including
that of the State of Maine.
Domestically Sourced Natural Gas Deliveries to Maine:
The Atlantic Bridge project offers the opportunity to allow gas to directly flow into Maine from abundant and
lower‐priced domestic sources south of Maine such as the Marcellus region in Pennsylvania. This project offers
Maine an opportunity—for the first time—to procure gas supply directly into the State.
Maine currently receives limited natural gas supplies from domestic sources. Yet, today in North America,
Appalachian Basin natural gas, not Canadian gas, drives prices for the commodity. To bring that lower‐cost,
market‐making natural gas to delivery points in Maine requires significant changes to the regional pipeline
system. To realize fully the advantages of Appalachian shale gas in Maine requires bringing more robust gas‐on‐gas
competition to the State.
Atlantic Bridge provides that link from this low‐cost resource to Maine’s energy consumers. At capacity, Atlantic
Bridge could transport between 200‐300 MMcf/d to Maine delivery points by expanding Algonquin and
changing Maritimes to a bidirectional facility that can move gas from Algonquin receipts to Maine deliveries.
Directly Impacts Customers in Maine:
Maine would benefit from the addition of new pipeline capacity into the region because it would allow Maine to
directly access new, lower priced, abundant natural gas supplies. Maine is in a unique situation where
customers in the State are not only plagued by high electricity costs due to infrastructure capacity constraints in
New England from the south, but they are also held captive to higher‐cost, often insufficient, natural gas
supplies from the north.
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15. Electric prices in the ISO‐NE region have spiked over the past two years when temperature drops prevented gas‐fired
generators from having sufficient gas capacity to run, or required such generators to purchase high‐priced
gas on the spot market. To address this problem, it is not enough that gas be physically present in the region;
rather, it is essential that the gas molecules actually be able to reach these gas‐fired generators on the coldest
days of winter. The Algonquin and Maritimes systems directly serve approximately 60% of the gas‐fired
generation in the ISO‐NE region, and access to many of these generators is accomplished via telescoping laterals
that can be constrained when gas demand is high. The benefit of the Atlantic Bridge and Access Northeast
projects is that they not only ensure that gas capacity is available in the region, but they also ensure that the
natural gas can physically reach the gas‐fired generators who need the gas during the coldest days of winter.
Moreover, because the regional electric price hinges on the price of the last unit called upon to serve, the more
gas‐fired generators with firm access to gas, the lower the likelihood that more expensive units will end up
setting the regional price of electricity. In short, if Maine wants to maximize the value of an ECRC, it should
focus on projects like Atlantic Bridge and Access Northeast that maximize the delivery of gas to the greatest
number of gas‐fired generators.
An additional benefit for Maine’s manufacturers could also be achieved by the Commission by procuring Atlantic
Bridge capacity. During peak price days in recent winters, some of Maine’s manufacturers had to slow or stop
production activities due to high energy costs. These work stoppages impacted the bottom lines of the affected
companies and their employees. Yet, some of these manufacturers have significant electric generation
capability on site and may be able to meet some or all of their electricity needs. But, they are likely not able to
cost‐efficiently produce electricity for their own needs on these peak days because of pipeline capacity
constraints. Given the limitations, the Commission could consider procuring gas capacity through Atlantic Bridge
and releasing it to the market periodically as a hedge. Then, on the coldest days, Maine could release the
capacity at below market prices to willing manufactures with generation capability. This action could, in some
circumstances, be of more value to Maine’s manufacturers than the impact of the capacity on the clearing price
of electricity in the region.
Innovative Use of Existing Resources (Storage) in the Region:
Access Northeast will support renewable energy development by enabling rapid response to sudden changes in
power output with regional storage facilities and quick‐start natural gas‐fueled power generation. Access
Northeast will provide new Electric Reliability Service (ERS) for firm transportation of natural gas and natural gas
supply supported by regional storage facilities for any party (Customer). This proposed service provides greater
fuel certainty for generators and performance flexibility through reserved No Notice Transportation with an
hourly supply option. Illustrative tariffs can be found at spectraenergy.com/NewEngland. While certain
measures could meet New England’s basic needs, Access Northeast will combine well‐tuned pipeline capacity
additions with the smart use of regional storage facilities to more effectively match the economic and
environmental needs of the region.
Innovative and Novel Approach:
Rate Schedule ERS is a reserved No‐notice transportation service that incorporates non‐rateable delivery rights
for primary firm deliveries. The firm capacity is reserved for Shippers full MDTQ on a 24/7 basis. The No‐notice
flexibility is supported through regional storage facilities and allows a shipper to commence delivery up to two
hours without commensurate supply in advance of flow. This combination of firm reserved pipeline capacity
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16. and non‐rateable deliveries allows for generators and other parties that contract for the service to ensure that
pipeline capacity will be available when they call on it, and the non‐rateable service provides the flexibility that
more aligns with gas‐fired generator burn profiles.
The MSOA (Multi‐shipper Option Agreement) allows multiple parties to contract under one administrator to act
on their behalf. The electric distribution companies (EDC) would be the Principals under an MSOA, and they
would have an Administrator that would manage the collective capacity ensuring that the gas‐fired plants have
priority access to the generation related pipeline capacity/services to reliably serve their plants. The
Administrator would also optimize any unutilized or underutilized capacity.
Transportation Service Will Be FERC‐Jurisdictional:
All facilities and services will fall under the regulatory oversight of the FERC. A FERC‐regulated facility provides
transparency and oversight to ensure that: (1) due diligence is followed on all aspects of the construction of
facilities, especially those involving environmental and cultural resources; (2) all issues related to regulatory,
environmental, permitting, landowners and other stakeholders are addressed; (3) all facilities are appropriate
for the service; and (4) continued oversight is maintained throughout the term of the contract. In short, FERC
review, approval and oversight helps to minimize risk for all involved parties, particularly with respect to
involvement with the project by local and regional environmental, landowner, and public official stakeholders.
Provides Direct Access to New Supply Regions:
Historically, the Northeast region has relied on three main supply areas: Gulf Coast U.S., Canada and LNG.
During the last decade, the supply sources expanded to include Rockies/Midcontinent gas and eastern Canada
production. The biggest change has occurred in just the last six years with the rapid development of the
Marcellus Shale gas basin in Appalachia. Production from the Marcellus has transformed the supply dynamic
into the Northeast.
Marcellus production has grown from 2 Bcf/d in 2008 to over 16 Bcf/d in 2014. As the new local production has
emerged, there has been a decline in the Northeast region’s imports from other U.S. supply basins, Canada, and
LNG. This extraordinary upswing in Northeast production is resulting in new delivery points and new pipeline
infrastructure to bring this shale gas to market, and with it lower prices for consumers.
Canadian and LNG supplies have long played a significant role in gas supply to the Northeast U.S. Canada
remains pivotal to the region, but with new Marcellus supplies so near, the level of imports has begun to
decline, falling by 50% from 2009 to 2012.
Natural gas production in the Marcellus and Utica regions is currently at approximately 16 Bcf/d and production
is continuing to grow. Algonquin is connected to this supply through approximately 3 Bcf/d of existing pipeline
interconnections on pipelines with capacity in excess of 10 Bcf/d providing multiple receipt point options
including, but not limited to upstream pipelines: Texas Eastern, Transco, Columbia, Tennessee Gas Pipeline,
Millennium and Iroquois. With Atlantic Bridge and/or Access Northeast, these multiple receipt point options
provide a direct connection to a new, lower‐cost, stable source of natural gas supply for customers in New
England and, more specifically, customers in Maine who have traditionally been tied to declining, often sporadic
and expensive natural gas delivered from the north.
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17. Provides Firm Pipeline Transportation 24/7/365:
The regional need for access to new natural gas supplies and new firm pipeline transportation is evident. The
Atlantic Bridge and/or Access Northeast projects provide economic solutions to the infrastructure gap between
Marcellus supply and the Maine markets, offering year‐round firm transportation capacity. This reliable and
consistent service means customers will enjoy the benefits of accessing lower cost natural gas supplies with the
confidence that it will be delivered by Algonquin and Maritimes on a firm basis.
Provides Access to Premium Markets:
Algonquin’s footprint traverses what is considered the most premium markets in North America. Serving local
distribution companies, industrial, and power generation customers, Algonquin currently delivers 2.6 Bcf/d of
natural gas to delivery points across New Jersey, New York, Connecticut and Massachusetts. As part of this
customer base, Algonquin has approximately 1.4 Bcf/d of gas‐fired generation customers directly connected to
the system. Together with approximately 375,000 Dth/d of peak power generation demand on Maritimes, this
represents approximately 60% of New England’s power generation demand directly connected to the two
Spectra Energy pipelines. In short, this makes Algonquin and Maritimes a critical fuel delivery system for New
England power producers.
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18. Historically, power generators operating in the New England market have relied predominantly on unutilized
capacity to deliver the natural gas required to power their plants. This capacity, largely held by LDCs, has over
the last number of winters become increasingly unavailable due to increased demand. This has resulted in
extreme electricity price volatility in the region. Spectra Energy is aligned with the Commission in the belief that
additional natural gas pipeline infrastructure, both in the short term and the long term, is essential to
strengthening electric reliability, which in turn will result in a reduction of prices and a reduction of daily price
volatility.
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19. This presents a unique opportunity for customers in Maine who participate in the Atlantic Bridge and/or Access
Northeast projects. Given the New England market dynamics, and Algonquin’s vast footprint in the market,
customers in Maine could take advantage of exceptional pipeline transportation optionality with access to these
premium markets on a secondary basis when not fully utilizing their firm pipeline transportation.
Minimizes Environmental and Stakeholder Impact:
Customizing expansion capacity and building that new capacity within Algonquin and Maritimes’ existing
pipeline footprint minimizes the environmental and stakeholder impact. By utilizing existing corridors where the
pipeline is already operating, the need for additional land acquisition is minimized, and disturbance to land
owners and the communities that they live in is also minimized. Expanding an existing pipeline within an
established footprint also helps to reduce project execution risk. While risk is inherent in any project, the
probability of economic, regulatory, construction, or timing risk is dramatically reduced as compared to new
greenfield pipeline development projects. Reducing this risk will help to ensure timely project execution success
for Algonquin and Maritimes.
Spectra Energy Has a Proven Track Record:
Spectra Energy is one of North America’s premier pipeline and midstream companies, developing critically
important pipeline and related energy infrastructure projects for nearly a century. Spectra Energy’s expertise,
vast experience, existing and extensive pipeline footprint, connection to diverse supply sources and premium
markets, and strong customer and stakeholder relationships all contribute to Spectra Energy’s proven track
record of successful pipeline construction and operation in New England and throughout North America.
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20. At Spectra Energy, Safety Is at the Forefront:
Spectra Energy is dedicated to safety in ALL aspects of its business and is extremely focused on
uncompromisingly safe construction and operation of its facilities. Spectra Energy follows a “compliance plus”
mindset that goes beyond regulatory requirements. Moreover, Spectra Energy reaches out beyond its internal
focus and works closely with its contractors, regulators, and customers to ensure a safe work environment at all
levels and dimensions of its business. Further details on some of Spectra Energy’s specific safety initiatives and
programs can be found on pages 23‐24 of this proposal.
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21. Project Execution Experience
Spectra Energy grows its business by adding infrastructure capacity and services. Since separating from Duke
Energy in 2007, Spectra Energy has placed into service 63 fee‐based expansion projects totaling more than $7.5
billion. Over the next three years, the company has plans to invest approximately $6 billion in additional growth
projects.
Key to Spectra Energy’s success has been a culture of excellence in project execution. Spectra Energy
understands that executing projects requires attention to many details. In addition to this focus on the technical
excellence of design and construction of new facilities, Spectra Energy is committed to a comprehensive
stakeholder outreach effort that encompasses extensive consultation with landowners, politicians and agencies
to identify environmental permitting considerations for the project.
These projects are delivered by using a disciplined management approach to project execution. The approach
consists of phases and dates that describe the project life‐cycle and critical decision points. The methodology is
aligned with Project Management Institute’s best practices for establishing the right priorities and ensuring that
decisions are based on well‐developed information.
A macro overview of the capital expansion project lifecycle management system is provided below, with key
processes/activities and quality goals highlighted beneath each phase.
PHASE 2
Scope/Cost
Refinement
PHASE 1
Initial
Project Scoping
» Concept
development
» Feasibility
» Economic feasibility
» Initial risk
assessment
» PFA/seed capital
reqs
» Project team
activated
» Pre‐budget
» Risk assessment
» Project plan
developed
PHASE 3
Baseline
Regulatory Filings
» Project team
expanded
» Budget
» P2 design drawings
» RFI/RFQ
construction
» Project plan
baseline
» Review risks
PHASE 4
Regulatory
Approvals
Design & Permit
» Project execution
team
» Design drawings
IFB/IFC
» Monitor change
controls
» Construction bid
documents
» Project execution
plan
» Regulatory response
» Project monitoring
PHASE 5
Construction &
Commissioning
» Begin
construction
» Materials
coordination
» Inspections
» Project
monitoring &
controls
» Risk review
PHASE 6
Project Closure
» Restoration
reporting
» Landowner releases
» Reg/Envpermits
» As‐builts and
turnover
» Financial closure
» Lessons learned
» Contractor closure
QUALITY GOALS
» Put a sound strategy
in place ‐ prepare
for commercial deal
and project success
» Conduct sound
planning ‐ refine
strategic planning
requirements and
facility/scope/cost
estimates; prepare for
regulatory approvals
and next phase.
» Conduct sound
planning ‐ refine all
estimates and prepare
for regulatory
approvals, execution of
strategies/plans and
construction phases.
» Perform Effective
Execution ‐ approvals,
budget and materials
management
throughout
construction and
commissioning phases
» Perform Effective
Execution ‐ approvals,
accurate cost forecasting,
construction and
materials management
throughout construction
and commissioning
phases
» Project Closure &
Continuous Learnings
– completion of all
closure components
and documentation,
including Lessons
Learned for future
reference
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22. Recent Projects in Execution or Recently In Service
The following diagram provides a geographical perspective of the scope and scale of projects Spectra Energy has
currently in execution.
Of particular interest would be the AIM project. The AIM project is currently in the permitting phase of
development, with the project’s FERC application being filed in February 2014. Algonquin secured contractual
commitments for the project from local distribution companies for new pipeline capacity of 342,000 Dth/d. The
planned in‐service of the AIM project is November 2016.
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23. Safe, Responsible and Reliable Operations
Safety is the top priority for Spectra Energy. The vision is that all Spectra Energy employees and contractors will
demonstrate personal commitment to continuous safety improvement, resulting in a zero‐injury and zero‐work‐related
illness culture.
We have a strong safety record. Over the past five years, the incident rate for Spectra Energy’s onshore
pipelines in the US is half of that in the industry as a whole. While we already have a strong safety record, our
goal is zero incidents. No incident is acceptable. Spectra Energy works closely with federal and state regulators
to ensure safe, reliable natural gas for Americans, and we inspect more pipeline annually than required by state
and federal regulations. We also are committed to being a good neighbor in the communities that host our
facilities.
Spectra Energy is committed to managing its operations in a way that protects the safety, security, and health of
its employees, its customers, and the public. Experienced and highly trained employees operate and maintain
the company’s pipelines and facilities using thoroughly tested internal procedures and standards, while adhering
to strict regulations. Spectra Energy strives to be an industry leader in pipeline integrity and service reliability.
Each business provides contractor safety management programs. The SAFE3 Contractor Safety Management
Program focuses on hiring “safety capable” contractors, identifying and mitigating risks, oversight, and post‐job
evaluations. Since SAFE3’s development and implementation three years ago, Spectra Energy has achieved a
significant reduction in U.S. contractor injuries.
Spectra Energy actively manages the integrity of its assets in order to protect its employees and the public, and
to ensure the reliable delivery of natural gas to its customers. The company’s leadership and commitment to
pipeline integrity has earned it industry‐wide respect and credibility.
Spectra Energy’s well‐established Integrity Management Program includes systematic management and
maintenance practices, such as sophisticated inspection devices and aerial pipeline patrols, designed to mitigate
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24. threats to its facilities.
Customers rely on Spectra Energy to provide uninterrupted transportation of natural gas, so its facilities and
equipment must be properly maintained and monitored. The company tracks measures of reliability specific to
its businesses.
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25. Appendix
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26. Spectra Energy Overview
Spectra Energy Corp (NYSE: SE), a Fortune 500 company, is one of North America’s leading pipeline and
midstream companies. Based in Houston, Texas, the company’s operations in the United States and Canada
includes more than 22,000 miles of natural gas, natural gas liquids, and crude oil pipelines; approximately 305
billion cubic feet (Bcf) of natural gas storage; 4.8 million barrels of crude oil storage; as well as natural gas
gathering, processing, and local distribution operations.
Spectra Energy is the general partner of Spectra Energy Partners (NYSE: SEP), one of the largest pipeline master
limited partnerships in the United States and owner of the natural gas, liquids, and crude oil assets in Spectra
Energy’s U.S. portfolio. Spectra Energy also has a 50 percent ownership in DCP Midstream, the largest producer
of natural gas liquids and the largest natural gas gatherer and processor in the United States.
Spectra Energy’s natural gas assets strategically connect conventional and unconventional natural gas supplies
with four of the five fastest‐growing markets in North America. Its natural gas storage facilities are strategically
positioned to serve local distribution companies, power and gas utilities, marketers and traders, and producers.
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27. At Spectra Energy, we pride ourselves on creating a world‐class work environment and offering the most
advance, sustainable energy solutions. Below are some of our most recent awards. Spectra Energy has served
North America customers and communities for more than a century. The company’s longstanding values are
recognized through its inclusion in the Dow Jones Sustainability World and North America Indexes and the CDP
Global 500 and S&P 500 Climate Disclosure and Performance Leadership Indexes.
For the seventh consecutive year Spectra Energy Corp was named to the 2014 CDP S&P 500 Climate Disclosure
Leadership Index (CDLI) and Climate Performance Leadership Index (CPLI). For the second consecutive year
Spectra Energy was the only energy company to be named to the CPLI and the only energy company to make
both indices.
Spectra Energy has also been named to the Dow Jones Sustainability World Index (DJSI World) for the fifth
consecutive year, to the Dow Jones Sustainability North America Index (DJSI NA) for the seventh consecutive
year, and as an Industry Leader among its peers.
Fortune Magazine's FORTUNE 500
 Annual ranking of America's largest corporations: 2008‐2014
Corporate Responsibility Magazine’s 100 Best Corporate Citizens List
 Named to the 100 Best Corporate Citizens List: 2011‐2014
 Recognized as the best corporate citizen among utilities: 2012‐2013
Ethisphere Institute's World's Most Ethical Companies List
Most recently, Spectra Energy was named for the third year in a row to Ethisphere Institute’s World’s Most
Ethical Companies List for 2014. Recognized for leadership in promoting ethical business standards, exceeding
legal minimums for compliance and introducing innovative ideas: 2012‐2014.
For more information, please go to www.spectraenergy.com.
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28. Business Segment Overview
Spectra Energy is focused on delivering premium services through four very distinct business segments:
 U.S. Transmission – Spectra Energy has one of the largest pipeline and storage systems in North America
 Distribution – Spectra Energy is the second largest local distribution company in Canada serving 1.4 million
customers in 400 communities and has the largest storage facilities in Canada
 Western Canada Transmission & Processing – Spectra Energy is one of the largest producers of natural gas
liquids in Canada
 Field Services – Spectra Energy has a 50 percent interest in DCP Midstream – the largest natural gas
processor in the U.S.
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29. The Way Spectra Energy Works
Spectra Energy’s purpose is to create sustainable value for its investors, customers, employees and communities by
providing natural gas gathering and processing, transmission, storage and distribution services. It builds value by:
 Advancing the role of natural gas in meeting North America’s energy needs
 Delivering excellence in safety, reliability, customer responsiveness and profitability
 Capitalizing on the size and attributes of its existing assets
 Executing its expansion projects on time and on budget
 Pursuing strategic growth opportunities
Spectra Energy’s Charter, Code of Business Ethics and commitment to economic, environmental and social
responsibility define the way the company works.
Spectra Energy’s values which guide the company’s actions and shape its decisions are:
 Stewardship – Demonstrating a commitment to environmental responsibility and vibrant communities
 Integrity – Ethically and honestly doing what it says it will do
 Respect for the Individual – Embracing diversity and inclusion, enhanced by openness, sharing, trust,
leadership, teamwork and involvement
 Safety – Sharing a relentless commitment to a zero‐work‐related injury and illness culture
 High Performance – Accountability, achieving superior business results and stretching its capabilities
 Win‐Win Relationships – Having relationships which focus on the creation of value for all parties
 Initiative – Having the courage, creativity and discipline to lead change and shape the future
The company distinguishes itself through its commitments to strong corporate governance and business ethics;
safe, reliable operations; environmental stewardship; and community support and engagement.
Corporate Governance and Business Ethics
Spectra Energy conducts its business with integrity, transparency and accountability. Its corporate governance
systems are designed to be transparent and to ensure it complies with the letter and intent of all laws, regulations
and rules that apply to its business and the industry, and that the company operates both ethically and profitably.
The Spectra Energy Charter establishes the vision, purpose, values and measures of success. The values guide
employees in the conduct of the business. The Code of Business Ethics (Code) establishes standards designed to
help employees conduct business ethically and honestly. All company representatives are expected to abide by
the Code.
The company’s policies guide its employees in managing day‐to‐day compliance with the Code and set corporate
standards and guidance for conducting business. In 2009, Spectra Energy strengthened its ethics expectations
by revising the Code to address contractors, service providers and suppliers. Contractors now undergo the
company’s ethics training, and supply contracts and master services agreements now require vendors to abide
by the Code and ethics practices.
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30. Regulatory and Permitting
FERC Natural Gas Pipeline and Storage Process
For purposes of illustration, Spectra Energy is describing the approach to obtaining a FERC Certificate for natural
gas pipelines and storage facilities. Spectra Energy has been actively involved with FERC in the review and
approval process for natural gas pipeline and storage facilities for many years. Since the inception of Spectra
Energy in 2007, the company has worked with its customers and its regulators to successfully place into service
over 63 projects. Spectra Energy maintains an excellent working relationship with FERC.
FERC plays a key role in the development and expansion of U.S. natural gas transmission projects. Under
direction from the U.S. Congress, FERC regulates the transmission and storage of natural gas in interstate
commerce. FERC is charged with determining whether proposed projects are needed and in the public interest,
and ultimately whether to issue a Certificate authorizing the construction and operation of facilities comprising
the projects. Their project development efforts continue by monitoring compliance through construction,
operational commissioning, and post‐construction restoration work.
FERC’s natural gas certificate processes include consulting with stakeholders, such as landowners, community
leaders, public officials and relevant federal, state and local agencies, identifying environmental and land‐use
issues through a process that FERC refers to as its “scoping” process, and preparing environmental documents
such as Environmental Assessments or Environmental Impact Statements. Sponsors of large greenfield projects
often request and receive a preliminary determination on non‐environmental issues prior to receipt of a final
FERC order to provide an early indication of FERC’s findings regarding the economic aspects of the project.
Certificates are issued by final FERC order.
Pipeline companies seeking project authorization must file an Application for a Certificate (Certificate
Application) with FERC. The Certificate Application describes the purpose and commercial need for the project,
the transportation rate to be charged to customers, and any specific terms and conditions of service that will
apply to the project, proposed timing and scope of the facilities to be constructed, and a demonstration that the
project applicant will be in compliance with all applicable regulatory requirements with respect to the project.
Applicants must evaluate project alternatives, identify a preferred alternative, and complete a thorough
environmental analysis, including consultation with appropriate regulatory agencies, data reviews and field
surveys. Information obtained through this review is compiled into a document known as the “Environmental
Report,” which the Applicant prepares as part of the Certificate Application. The Environmental Report also
details all other federal, state and local permits required for the project, as well as agencies consulted in
preparation of the Environmental Report.
To determine whether a proposed project is in the public convenience and necessity, FERC, in addition to its
review of the economic aspects of the project, conducts a comprehensive environmental review of the projects,
in accordance with the National Environmental Policy Act (NEPA). In the NEPA process, FERC works closely with
Federal, state, and local agencies such as the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, state
departments of environmental protection, and other state and local agencies. Other stakeholders, including
project neighbors, landowners, and surrounding communities, are also invited to participate in the FERC process
by attending meetings and providing comments or concerns at particular times in FERC’s review process.
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31. FERC will review the project, evaluating the need, proposed facility locations, and overall impact of project
construction and operation, and will summarize its findings in either an Environmental Assessment or an
Environmental Impact Statement, depending on characteristics of the project. Upon completion of an
Environmental Assessment or Environmental Impact Statement for a project and completion of its review of the
economic aspects of the project, FERC will issue an order in which it determines, based on the entirety of its
review, whether the project is in the public convenience and necessity. If FERC so determines, it will issue a
Certificate authorizing the construction and operation of the project facilities.
FERC Pre‐Filing Process
FERC has established a collaborative pre‐application process that gives landowners, government agencies and
other interested stakeholders the opportunity to review project information and identify issues or concerns
before a Certificate Application is filed with FERC or other permit applications are made. This phase of project
development is referred to as the Pre‐Filing Process.
Throughout the process, the Applicant and FERC will actively seek input from interested stakeholders through
public outreach efforts that include written communications and public meetings. Stakeholders are encouraged
to participate and share any questions or concerns so they can be addressed prior to submittal of the Certificate
Application. Additionally, FERC reviews drafts of the Applicant’s Environmental Report during this stage of the
project. The Certificate Application, once filed, will identify a more detailed route and/or set of facilities and
locations based on input that the Applicant has received from FERC and interested stakeholders during the Pre‐
Filing Process.
At the beginning of the Pre‐Filing Process, FERC issues a Notice of Intent, or NOI, to prepare an Environmental
Assessment or Environmental Impact Statement (environmental document) for the proposed project. With the
NOI, FERC initiates a scoping period in which it seeks to discover and address concerns the public may have with
the environmental and land‐use aspects of the project. The primary goal of the scoping process is to focus
FERC’s analysis in the Environmental Assessment or Environmental Impact Statement on the important
environmental and land‐use issues. Comments received during the scoping period will be incorporated into
FERC’s environmental document.
Project Application
Once the Pre‐Filing Process is complete, the Applicant files a Certificate Application for the project along with an
anticipated schedule. Additionally, permit applications are submitted to other federal, state, and local agencies.
The permit proceedings conducted by these agencies often provide additional opportunity for public
involvement.
Once the Certificate Application has been filed, FERC will issue a Certificate Docket number (CP__‐). As with the
Pre‐Filing Process, all public documents associated with the Certificate Application and filed with or issued by
FERC are accessible via the e‐Library on FERC’s Web site (www.ferc.gov). Additionally, copies of the Certificate
Application and the Environmental Report will be made available at public locations within each county
impacted by the project so that all stakeholders will have the opportunity to review and comment on the
Certificate Application. Notices of the Certificate Application filing and the locations to view the documents are
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32. sent to all identified stakeholders. The project sponsors’ outreach effort to interested stakeholders continues
through this stage of the project.
Within 10 business days of filing the Certificate Application, FERC will issue a Notice of Application, which will be
posted in the Federal Register, notifying the public of the filing of the Certificate Application and the process for
filing interventions or comments in the docket, and within 90 days of such notice, will issue a notice of schedule
for environmental review of the Certificate Application, indicating when it expects to issue the final
environmental document for the project and the deadline for final decisions from other relevant federal
permitting agencies. During its review period, FERC will identify any additional or clarifying information that
may be needed from the Applicant and will complete its environmental document in accordance with NEPA and
its evaluation of the economic aspects of the project.
Following issuance of the environmental document by FERC, stakeholders will have an opportunity to provide
additional comments regarding the project. FERC will review any comments received and respond to them in
either a final environmental document or, provided FERC agrees that the project is of public convenience and
necessity, the agency may address comments directly in its Certificate.
Project Authorization
Once FERC issues a Certificate, the Applicant must:
 Accept the Certificate within 30 days;
 File an affirmative statement indicating commitment to provide environmental training to all individuals
working on the project; and
 File an Implementation Plan(s) within 60 days of the Certificate Order indicating how the project will comply
with the conditions outlined in the Certificate Order.
Project construction cannot begin until FERC authorizes a Notice to Proceed. The FERC staff will conduct
periodic site visits throughout construction to ensure ongoing compliance, including a visit as construction nears
completion to review restoration efforts and identify any additional needed measures. Applicants are also
required to receive FERC approval prior to placing the project facilities into service. Additional monitoring of the
right‐of‐way will continue after the project facilities are placed into service to ensure restoration efforts are
successful.
Spectra Energy’s Approach to the FERC Process
Spectra Energy understands the importance of communicating with FERC Staff as well as representatives of
other regulatory agencies, landowners, special interest groups, and other stakeholders during the development,
permitting, and construction of new projects. To that end, Spectra Energy has received numerous recognitions
and commendations on the success of their projects and Spectra Energy’s collaborative approach to working
with all parties during the various stages of a project.
Spectra Energy will communicate early and often with FERC Staff and other stakeholders to identify and address
potential problems and issues in the most efficient and effective manner. This collaborative approach will be
reflected in all phases of the project, from the identification of the optimum route for the pipeline to defining
mitigation measures to address and minimize potential environmental impact, and to closely managing and
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33. monitoring pipeline construction activities to ensure compliance with permit conditions and commitments made
to landowners and other stakeholders.
Spectra Energy is committed to embracing the FERC process and working with the FERC staff to successfully
permit, construct, and operate the Project.
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34. Environmental Stewardship
Description
Environmental stewardship refers to responsibility for environmental quality shared by those whose actions
affect the environment during development of a natural gas pipeline project. Due diligence in identifying,
mitigating and managing environmental impacts is important in order to ensure on‐time and on‐budget
projects. This process also informs engagement strategies with regulatory agencies, landowners, communities
and other key stakeholder groups.
Spectra Energy’s Approach
Spectra Energy’s approach to managing environmental risks and impacts in construction will be consistent with
its corporate approach across all its operations, as follows:
• Identify and understand environmental impacts;
• Design projects to avoid or minimize environmental impacts;
• Manage and mitigate unavoidable impacts;
• Encourage responsible use of natural gas in its retail market areas;
• Engage and respond to stakeholders;
• Meet or exceed compliance requirements with applicable laws and regulations; and
• Implement best management practices to minimize operational and environmental risks.
Spectra Energy has committed to be a responsible environmental steward while striving to help meet North
America’s increasing demand for natural gas. This environmental commitment is central to decisions on how
Spectra Energy builds and manages its operations, helps customers address environmental impacts, and
advocates for responsible public policies.
Agency Outreach – Approach
Spectra Energy will create a Public and Agency Participation Plan to contact key federal and state agencies with
jurisdiction over the general project area to define the resources, factors, and processes that could influence the
successful permitting of a project of this magnitude. Items that would typically be addressed include the
following:
 Identify the agency’s jurisdictional authority;
 Identify resources and issues that may be pertinent when the characteristics of the project are (better)
defined;
 Identify general approaches that the agency (and, more specifically, the agency staff) would recommend
once formal consultation begins;
 Identify local experts and special interest groups in the project area that may be parties;
 Establish a general timeline for the agency’s consultation and permitting process; and
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35.  Identify typical mitigation considerations that may ultimately be advocated by agencies and special interest
groups.
Based on the information that is collected, Spectra Energy will prepare a preliminary cost estimate and schedule
for environmental studies and permitting. This will allow the company to evaluate potential schedule and cost
implications of the project. The results of this review will be documented in a Critical Issues Report.
Public – Approach
After conducting environmental due diligence and establishing a plan for initial agency dialogue, Spectra Energy
will determine a public outreach and community engagement strategy in close cooperation with the Maine
Public Utilities Commission. In previous projects Spectra Energy has conducted “open houses” in order to
provide the company’s description of the project to interested stakeholders and solicit information from
participants about the project and any potential concerns. For more information about Spectra Energy’s
approach to public outreach refer to the section on Stakeholder engagement.
Environmental Studies – Approach
During the Development Period, Spectra Energy will initiate detailed agency consultation with a detailed project
description to define the agency required field studies, including the protocols for those field studies. Typical
field studies may include the following.
Special Status Species Surveys
Special status species are those species of animals and plants for which state or federal agencies afford
protection by law, regulation, or policy. Included in this category are federally listed and federally proposed
species that are protected under the Endangered Species Act, or are considered as candidates for such listing by
the U.S. Fish and Wildlife Service or National Marine Fisheries Service and those species that are state‐listed as
threatened or endangered species or species of special concern.
Spectra Energy will consult with U.S. Fish and Wildlife Service and state commissions to review rare and
endangered species. Based on this information, Spectra Energy will conduct surveys of the project area for
occurrences of or habitat for any such species identified as potentially present in the study area. If it is
necessary for Spectra Energy to contract agency‐recognized or agency‐required specialists to conduct or
participate in such surveys, Spectra Energy will incorporate those specialists into the Spectra Energy team as
early as possible.
Cultural Resource Surveys
Section 106 of the National Historic Preservation Act (NHPA) requires that the lead federal agency under the
NEPA (which will certainly be the FERC for this project) take into account the effects of its undertakings on
properties listed on, or eligible for listing on, the National Register of Historic Places and provide the Advisory
Council on Historic Preservation (ACHP) an opportunity to comment on the undertaking.
To meet this requirement and assist with the formal federal and state consultation related to cultural resources,
Spectra Energy will consult with the Division of Historical Resources and define what surveys will be required
and what survey protocols (e.g., survey corridor widths and shovel test intervals) will have to be followed. Once
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36. these parameters are defined, Spectra Energy will conduct field surveys in the survey area defined by the State
Historic Preservation Office.
Ambient Noise and Air Quality Measurements
Depending on project requirements for compression equipment, Spectra Energy may conduct measurements of
the ambient noise and air quality environments in the vicinity of any required/proposed compression units. Any
such measurements will be compliant with required standards and guidance from staff representatives of the
jurisdictional regulatory agencies.
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37. Stakeholder Outreach
For Spectra Energy, stakeholders are those who are, or could be, affected by the company’s operations. These
include, but are not limited to, customers, landowners, communities, government officials, regulators, non‐governmental
organizations, suppliers, analysts, media and shareholders.
Spectra Energy is committed to identifying the stakeholders and potential issues related to the Project,
determining appropriate and effective methods of communication, identifying responsible parties, documenting
the public consultation process and adhering to communication protocols.
Spectra Energy believes earlier and more collaborative involvement will lead to project designs that minimize
impacts to landowners, communities and the environment while enabling the company to develop more
comprehensive applications submitted to submit to the FERC, state agencies, and local jurisdictions.
Stakeholder Outreach Principles and Approach
Spectra Energy works closely with stakeholders in areas affected by its projects to foster long‐term relationships
built on trust and respect. Spectra Energy’s core values guide its stakeholder outreach programs and activities
as well as the work of its employees and contractors.
In conducting business, Spectra Energy’s values guide its approach:
• Stewardship ‐ Demonstrating a commitment to environmental responsibility and vibrant communities.
• Respect for the Individual ‐ Embracing diversity and inclusion, enhanced by openness, sharing, trust,
leadership, teamwork and involvement.
• Integrity ‐ Ethically and honestly doing what we say we will do.
• Win‐Win Relationships ‐ Having relationships that focus on the creation of value for all parties.
• Initiative ‐ Having the courage, creativity and discipline to lead change and shape the future.
While these values guide the company’s company‐wide stakeholder outreach approach, Spectra Energy tailors
its activities for each project, ensuring that the dialogue with stakeholders is open, transparent and meaningful.
Spectra Energy’s Stakeholder Engagement Principles, developed to guide its interactions, are:
• To be respectful of and considerate to all stakeholders.
• To engage with those affected by our business.
• To consider stakeholder‐identified issues in its decision‐making process.
• To provide timely and accurate communication using accessible information and language.
• To be transparent in its processes and communications.
Spectra Energy’s stakeholder outreach activities are endorsed by its executive management team.
Spectra Energy has a company‐wide and customized programs for each activity and project, and communication
plans that provide employees the “who, what, where and when” protocols when conducting business.
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38. To ensure effective dialogue with its stakeholders, Spectra Energy relies on one‐on‐one discussions, face‐to‐face
meetings, open houses, websites, legal notices, media outreach and individual letters sent via mail.
Communications and materials are conducted in multiple languages, as needed.
The key criteria inherent in implementing a successful stakeholder consultation plan are the ability and
knowledge to explain a project’s benefits and its potential impacts; to respond to questions, concerns and
issues; and, whenever possible, to mitigate potential impacts. In order to sustain a successful program,
Spectra Energy seeks, involves, informs and responds to stakeholders by implementing the planning process
early, with open and collaborative activities. The company executes its plans by engaging in and sustaining
understandable, accurate and timely dialogue with its stakeholders. This process helps build and maintain win‐win
relationships.
Spectra Energy works closely with stakeholders in areas affected by its projects and strives to create mutually
beneficial relationships with communities built on trust and respect. Spectra Energy also has a long history of
working successfully with indigenous peoples across many of its operating areas.
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