1. NB Power Presentation by New Brunswick Power Corporation November 10, 2015

2. NB Power’s Commitment to Renewable Energy Regulation By 2020, 40% of NB Power’s in-province electricity sales will come from renewable energy By 2020, 75% of NB Power’s electricity sales will be sourced from non-greenhouse gas emitting sources (renewables and nuclear)

3. Transition to Cleaner Energy NB Power views natural gas fuelled electrical generation as transitional – strengthens NB Power’s fuel diversity and reduces heavy fuel oil consumption – domestic supply of natural gas provides commodity price stability; low and stable rates – provides opportunity for an economic transition to next-generation renewable and/or non-emitting energy e.g. wind, solar, nuclear

4. Reduction in Greenhouse Gas Emissions Converting Coleson Cove from heavy fuel oil to natural gas reduces greenhouse gas emissions intensity – approximately 28% reduction in greenhouse gas emissions intensity

5. Opportunity to Create a Heritage Pool GNB designates a Heritage Pool of domestic natural gas for the benefit of New Brunswick – A portion of the Heritage Pool used to generate electricity provides the following benefits low and stable electricity rates ; NB Power monetizes the benefit of natural gas for all New Brunswickers does not rely on domestic pipeline infrastructure natural gas by wires to all New Brunswickers

6. Opportunities of a Domestic Natural Gas Supply Economic development opportunities – converts natural resources into value added products for New Brunswick fertilizer plant, forest products, mining – attract investment to New Brunswick; LNG export terminal, chemical processing, etc. Less reliance on imported energy – oil – natural gas/pipeline infrastructure – electricity

7. Conclusion Should shale gas development occur in New Brunswick, NB Power is well positioned to enable the benefits of this resource to reach all New Brunswickers in the form of electricity which would significantly contribute to low and stable rates

8. Additional Information NB Power’s Supply Mix

9. Additional Information Impact of Natural Gas Prices Every $1 per mmBTU change in price has a forecast $8.5 million impact on electricity costs in New Brunswick Seasonal variations in market price can range from approximately $5 to $10 per mmBTU Stabilizing these seasonal variations would benefit New Brunswickers by $40 to $85 million annually.