LondonHouston

WashingtonNew YorkPortlandCalgary

SantiagoBogota

Rio de JaneiroSingapore

BeijingTokyo

SydneyDubai

MoscowAstana

KievPorto

JohannesburgRiga

Market ReportingConsulting

Events

Select power market issuesImpact on gas demandDavid Givensxx April 2016

Copyright © 2016 Argus Media group. All rights reserved.

4-yr avg change in electricity output by fuel, 2012-15

NortheastCoal -23%Gas +6%

MidwestCoal -9%

Gas +18%

WestCoal -6%Gas + 5%

SouthCoal -13%Gas +12%

— EIA

Copyright © 2016 Argus Media group. All rights reserved.

Gas consistently beats coal in several regions

Cal 17 Cal 18 Cal 19 Cal 200

5

10

15

20

25

Forward spark spreads

PJM West Gas PJM West Coal ERCOT North GasERCOT North Coal Indiana Gas Indiana Coal

$/M

Wh

• “No real demand increase as gas just displaces coal”

• No power generation gains in last four years

• High inventories of coal, liquid fuels, gas

• Extension of renewables tax credits

• Increasing renewables penetration from west to east

Power markets correlate with commodity cycle

Copyright © 2016 Argus Media Ltd. All rights reserved.

Copyright © 2016 Argus Media group. All rights reserved.

SoCal storage shortage raises power prices

42491

42522

42552

42583

42614

42644

42675

42705

42736

42767

42795

42826

42856

42887

42917

42948

42979

43009

43040

43070

43101

43132

43160

43191

43221

43252

43282

43313

43344

43374

43405

43435

43466

43497

43525

43556

43586

43617

43647

43678

43709

43739

43770

43800

43831

43862

43891

43922

43952

43983

44013

44044

44075

44105

44136

44166

44197

44228

44256

44287

44317

44348

44378

44409

44440

44470

44501

44531

44562

44593

44621

44652

44682

44713

44743

44774

44805

44835

44866

44896

44927

44958

44986

45017

15

20

25

30

35

40

45

Argus Round the Clock Forward Curves

NP 15 Jan 7 SP 17 Jan 7 NP 15 Apr 7 SP15 Apr 7

$/M

Wh

Copyright notice Copyright © 2015 Argus Media Ltd. All rights reserved. All intellectual property rights in this presentation and the information herein are the exclusive property of Argus and and/or its licensors and may only be used under licence from Argus. Without limiting the foregoing, by reading this presentation you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices or any other individual items of data) in any form or for any purpose whatsoever without the prior written consent of Argus.  Trademark notice ARGUS, the ARGUS logo, ARGUS MEDIA, ARGUS DIRECT, ARGUS OPEN MARKETS, AOM, FMB, DEWITT, JIM JORDAN & ASSOCIATES, JJ&A, FUNDALYTICS, METAL-PAGES, METALPRICES.COM, Argus publication titles and Argus index names are trademarks of Argus Media Limited.

Disclaimer All data and other information presented (the “Data”) are provided on an “as is” basis. Argus makes no warranties, express or implied, as to the accuracy, adequacy, timeliness, or completeness of the Data or fitness for any particular purpose. Argus shall not be liable for any loss or damage arising from any party’s reliance on the Data and disclaims any and all liability related to or arising out of use of the Data to the full extent permissible by law.

David GivensHead of Natural Gas & Power Services, North America

Email:Phone:Office:Web:

david.givens@argusmedia.com202-349-2891Washingtonwww.argusmedia.com