BMO Nesbitt Burns 2006 Energy Trust Conference

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BMO Nesbitt Burns2006 Energy Trust Conference

• June 7 - 8, 2006

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Advisory on Forward-looking Non-GAAP Information
Certain information contained herein relating to,
but not limited to, Fort Chicago and its Pipeline
and NGL businesses constitutes forward-looking
information under applicable securities laws. All
statements, other than statements of historical
fact, which address activities, events or
developments that we expect or anticipate may or
will occur in the future, are forward-looking
information. Forward-looking information
typically contains statements with words such as
"may", "estimate", "anticipate", "believe",
"expect", "plan", "intend", "target", "project",
"forecast" or similar words suggesting future
outcomes or outlook. The following discussion is
intended to identify certain factors, although
not necessarily all factors, which could cause
future outcomes to differ materially from those
set forth in the forward-looking information.
The risks and uncertainties that may affect the
operations, performance, development and results
of our businesses include, but are not limited
to, the following factors the ability of Fort
Chicago to successfully implement its strategic
initiatives and achieve expected benefits the
status, credit risk and continued existence of
customers having contracts with Alliance, Aux
Sable or AEGS the availability and price of
energy commodities fluctuations in foreign
exchange and interest rates the regulatory
environment competitive factors in the pipeline
and NGL extraction industries and the prevailing
economic conditions in North America. The reader
is cautioned that these factors and risks are
difficult to predict and that the assumptions
used in the preparation of such information,
although considered reasonably accurate by Fort
Chicago at the time of preparation, may prove to
be incorrect or may not occur. Accordingly,
readers are cautioned that the actual results
achieved will vary from the information provided
herein and the variations may be material.
Readers are also cautioned that the foregoing
list of factors and risks is not exhaustive.
Additional information on these and other risks,
uncertainties and factors that could affect Fort
Chicago's operations or financial results are
included in our filings with the securities
commissions or similar authorities in each of the
provinces of Canada, as may be updated from time
to time. There is no representation by Fort
Chicago that actual results achieved will be the
same in whole or in part as those set out in the
forward-looking information. Furthermore, the
forward-looking statements contained herein are
made as of the date hereof, and Fort Chicago does
not undertake any obligation to update publicly
or to revise any forward-looking information,
whether as a result of new information, future
events or otherwise. Any forward-looking
information contained herein is expressly
qualified by this cautionary statement. Certain
financial information contained herein may not be
standard measures under Generally Accepted
Accounting Principles ("GAAP") in Canada and may
not be comparable to similar measures presented
by other entities. These measures are considered
to be important measures used by the investment
community and should be used to supplement other
performance measures prepared in accordance with
GAAP in Canada. For further information on
non-GAAP financial measures used by Fort Chicago
see the annual and quarterly Management
Discussion and Analysis and the notes to the
annual and quarterly financial statements filed
by Fort Chicago with Canadian securities
regulators.
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Corporate Profile

• Energy Partnership with Enterprise value of
  approximately of 3.5 billion
• TSX Listed Securities
• Class A Units - FCE.UN 130.3 Units or 1.5B
• Convertible Debentures - FCE.DB.A 31.4M
• Convertible Debentures - FCE.DB.B 25.1M
• YTD daily average trading volumes of Class A
  Units 330,000
• Ratings
• Stability ratings
• SP SR-2
• DBRS - STA-2 (low)
• Credit rating
• SP - BBB
• Two principal businesses
• Pipeline transportation Alliance AEGS
• Natural gas liquids Aux Sable

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Pipeline Businesses Represent Majority of Assets
Cash Flow
Asset Value (1)
Source of Distribution (2)
Distributable Cash by Currency (2)
AEGS 11
AEGS 12
Aux Sable 7
Aux Sable 10
US 43
Cdn 57
Alliance 82
Alliance 78

• As at March 31, 2006
• Based on 2006 Guidance

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Alliance Pipeline New and Strategically Well
Positioned

• Firm capacity of 1.325 bcf/d, expandable to 1.825
  bcf/d at low cost
• Long-term year ship-or-pay contracts provide
  stable source of distributable cash
• 33 shippers
• Initial term 2015
• Extendible annually with 5 years notice
• Built in incentives to extend
• Tolls pass through all costs
• Operating, debt service, taxes, return of and on
  capital (25 years)
• Equity return based on availability of firm
  capacity
• Well positioned to support northern gas
  transportation

Alaska
Mackenzie Delta
Fort St. John
Edmonton
Regina
Minneapolis
Aux Sable Plant, Chicago
Alliance Pipeline
Proposed Pipelines
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AEGS Stable, Long-term Business with Growth
Potential

• AEGS Alberta Ethane Gathering System
• Acquired December 22, 2004 for 270 million
• Critical link between 7B of extraction, storage
  and petrochemical assets
• Committed volumes of 255,000 bbl/d
• Long-term contracts through 2018
• 90 take-or-pay requirement
• Constructed in 1977, with major contract-based
  expansion in 1999
• Physical operations managed by NOVA Chemicals, at
  cost
• Commercial operations managed by Fort Chicago

Cochrane
Empress
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Aux Sable World Scale NGL Operations With Solid
Future

• Non-regulated NGL extraction, fractionation and
  delivery system located in Channahon, Illinois
• Cash flows now backed by extendable 20 year NGL
  sales contract with BP for all production
• Provides an assured level of profitability and a
  meaningful share of future profits
• Expect significant profit share to be earned in
  2006
• BP commercially aligned to maximize utilization
  of existing 2.1 bcf/d capacity and expand
  Alliance/Aux Sable system capacity where
  appropriate
• Aux Sable free to pursue growth opportunities,
  including Alaska and those leveraged off the
  Alliance rich gas pipeline capability
• With BP or others
• Expansion capital drives additional fee income

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Strategic Priorities - Grow Per Unit Value
Distributions

• Optimize and grow existing businesses
• Seek accretive investment opportunities in
  long-life infrastructure assets for growth and
  diversification
• Canadian and non-Canadian
• Stable cash flow
• Limited or no direct commodity price exposure
• Maintain strong financial position to support
  investment grade credit rating and ready access
  to capital markets
• Utilize Distribution Account to support early
  stage development activities and stabilize
  distributions

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Developing Sizable Portfolio of Strategic
Growth Initiatives

• Alliance - Increase shipper options and reduce
  transportation cost
• Increase U.S. maximum allowable operating
  pressure
• Increase system horsepower
• New service offerings
• Additional lateral expansions
• Long-term northern gas expansion
• Waste heat power projects, four awards from
  Saskpower, initial award CDD expected Q1 2007
• Aux Sable Source additional fee-for-service
  income
• Heartland Upgrader Off-Gas NGL extraction
• Own/operate new Alberta based extraction facility
• Long-term northern gas expansion
• AEGS Seek additional ethane throughput
• Additional deep cuts at existing extraction
  facilities
• New extraction facilities
• Oil sands bitumen upgrading projects
• Long-term northern gas expansion
• Fort Chicago Pursue investments capable of
  generating stable cash flows
• Jordan Cove LNG terminal and Pacific Connector
  natural gas pipeline
• Conventional and alternate power in North
  America, including waste heat power projects, BC
  and Ontario RFP processes

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Proposed Jordan Cove LNG Terminal Coos Bay,
Oregon

• 1 Bcf/day regasification terminal with storage
  tanks NGL extraction, storage rail facilities
  and berth for 165,000 m3 LNG Ships
• Site has local support and excellent land and
  marine characteristics
• Strategically situated to access, via Pacific
  Connector, key markets, downstream takeaway and
  storage infrastructure
• Uniquely positioned to economically supply the
  diverse and substantial markets of Northern
  Central California, Pacific Northwest and
  Northern Nevada
• Fort Chicago controls project and holds a
  substantial and preferred economic interest in
  the terminal
• FERC Jurisdictional Pre-NEPA filing recently
  completed FERC issuance of certificate targeted
  for Sept. 2007
• Estimated cost US 650M to US 700M

Jordan Cove LNG Terminal
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Proposed Pacific Connector Gas Pipeline

• 1 bcf/d of capacity serving West Coast natural
  gas markets
• 223-mile natural gas transmission line connecting
  Jordan Cove LNG terminal to Williams Northwest
  pipeline, PGEs gas transmission system at Malin
  (a major point of liquidity) and possibly
  Tuscarora pipeline
• Being jointly developed by Williams Northwest
  (operator), PGE, and Fort Chicago
• Each partner holds a 33.3 interest
• FERC Jurisdictional Pre-NEPA filing recently
  completed FERC issuance of certificate targeted
  for Sept. 2007
• Estimated cost US 750M to US 850M

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2006 Distributable Cash Guidance
(1) The low and high applicable to each line item
are not intended to be additive and therefore
will not add to the low and high forecast
distributable cash.
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Outlook Remains Promising

• Quality Long-Life Assets
• Alliance AEGS - stable sources of cash backed
  by long-term contracts
• Aux Sable - profitability now stabilized with
  long-term BP sales contract
• Expect significant profit share will be earned in
  2006
• Businesses strategically well positioned to grow
  over medium-term intend to leverage BP
  relationship to support expansion of Alliance and
  Aux Sable
• Growth agenda in place
• Numerous investment opportunities being pursued
• Inside and outside existing businesses
• Key Attributes accretive, long-life, stable
  cash flow generating
• Prudent capital structure supported by investment
  grade credit ratings
• Experienced management teams in place no
  external contract
• Committed to growing per unit distributable cash
  and net present value

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Building on Success