Full Description

Spectra Energy Corp (Spectra Energy), incorporated on July 28, 2006, through its subsidiaries and equity affiliates, owns and operates a large and diversified portfolio of complementary natural gas-related energy assets. The Company operates in three areas of the natural gas industry: gathering and processing, transmission and storage, and distribution. Based in Houston, Texas, it provides transportation and storage of natural gas to customers in various regions of the northeastern and southeastern United States, the Maritime Provinces in Canada and the Pacific Northwest in the United States and Canada, and in the province of Ontario, Canada. It also provides natural gas sales and distribution services to retail customers in Ontario, and natural gas gathering and processing services to customers in western Canada. The Company also have a 50% ownership in DCP Midstream, LLC (DCP Midstream), a natural gas gatherer and processor in the United States, based in Denver, Colorado. On April 4, 2008, Spectra Energy Partners, LP completed the acquisition of the equity interests of Saltville Gas Storage Company L.L.C. and the P-25 pipeline from Spectra Energy.

United States Transmission

The Company’s United States Transmission business provides transportation and storage of natural gas for customers in various regions of the northeastern and southeastern United States and the Maritime Provinces in Canada. Its United States pipeline systems consist of more than 13,800 miles of transmission pipelines with six primary transmission systems: Texas Eastern Transmission, LP (Texas Eastern), Algonquin Gas Transmission, LLC (Algonquin), East Tennessee Natural Gas, LLC (East Tennessee), Maritimes & Northeast Pipeline, L.L.C. and Maritimes & Northeast Pipeline Limited Partnership (collectively, Maritimes & Northeast Pipeline), Gulfstream Natural Gas System, LLC (Gulfstream), and Southeast Supply Header, LLC (SESH), which began operations in September 2008.

The pipeline systems in its United States Transmission business receive natural gas from North American producing regions for delivery to their respective markets. United States Transmission’s proportional throughput for its pipelines totaled 2,218 trillion British thermal units (TBtu) during the year ended December 31, 2008. United States Transmission provides storage services through Saltville Gas Storage Company, L.L.C. (Saltville), Market Hub Partners Holding’s (Market Hub’s) Moss Bluff and Egan storage facilities, and Texas Eastern’s facilities. In the course of providing transportation services, United States Transmission also processes natural gas on its Texas Eastern system.

Distribution

The Company provides distribution services in Canada through its subsidiary, Union Gas Limited (Union Gas). Union Gas owns pipeline, storage and compression facilities used in the transportation, storage and distribution of natural gas. Union Gas’ system consists of approximately 37,000 miles of distribution main and service pipelines. Distribution pipelines carry or control the supply of natural gas from the point of local supply to customers. Union Gas’ underground natural gas storage facilities have a working capacity of approximately 155 Billion Cubic Feet (Bcf) in 22 underground facilities located in depleted gas fields. Its transmission system consists of approximately 3,000 miles of high-pressure pipeline and six mainline compressor stations. Union Gas distributes natural gas to approximately 1.3 million residential, commercial and industrial customers in northern, southwestern and eastern Ontario and provides storage, transportation and related services to utilities and other energy market participants.

Western Canada Transmission and Processing

The Company’s Western Canada Transmission & Processing business consists of the BC Pipeline and BC Field Services operations, the Midstream operations and the natural gas liquids (NGLs) marketing operations. BC Pipeline and BC Field Services provide natural gas transportation and gas gathering and processing services. The BC Pipeline has approximately 1,800 miles of transmission pipeline in BC and Alberta, as well as 18 mainline compressor stations. Throughput for the BC Pipeline totaled 615 TBtu during 2008. The BC Field Services business includes five gas processing plants located in BC, 17 field compressor stations and approximately 1,500 miles of gathering pipelines.

The Midstream business provides similar gas gathering and processing services in BC and Alberta and consists of 11 natural gas processing plants and approximately 600 miles of gathering pipelines. In May 2008, the Company acquired the 24.4 million units of the Spectra Energy Income Fund (the Income Fund) that were held by non-affiliated holders. Prior to the acquisition, the Income Fund indirectly held 54% of its consolidated Midstream operations and it held the remaining 46%. The Empress NGL marketing business provides NGL extraction, fractionation, transportation, storage and marketing services to western Canadian producers and NGL customers throughout Canada and the northern tier of the United States. Assets include, among other things, a majority ownership interest in an NGL extraction plant, an integrated NGL fractionation facility, an NGL transmission pipeline, seven terminals where NGLs are loaded for shipping or transferred into product sales pipelines, two NGL storage facilities and an NGL marketing and gas supply business. The Empress extraction and fractionation plant is located in Empress, Alberta.

Field Services

Field Services consists of its 50% investment in DCP Midstream, which is accounted for as an equity investment. DCP Midstream gathers and processes natural gas, and fractionates, markets and trades natural gas liquids (NGLs). ConocoPhillips owns the remaining 50% interest in DCP Midstream. DCP Midstream operates in 27 states in the United States. DCP Midstream’s gathering systems include connections to several interstate and intrastate natural gas and NGL pipeline systems and one natural gas storage facility.