Welcome to Spectra Energy by keb35299

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									Welcome to Spectra Energy.
Contents
3   Letter from the Chairman
5   2007 Spectra Energy Charter
7   Letter from the President & CEO
11 Our Management Team
16 Spectra Energy Profile
18 Selected Operations
26 Board of Directors
28 Investor Information




Pictured on the cover – From left, Spectra Energy employees Gary Franklin, transmission
technician-measurement, Stanford, Kentucky; Winston Celestine, area supervisor, Lebanon,
Ohio; Rosemary Silva, public affairs specialist, Vancouver, Canada; Bill Brown, senior legal
assistant, Houston, Texas; Melinda Gonzalez, insurance manager, risk management department,
Houston, Texas; and Patti Piett, manager, gas supply, Union Gas, Chatham, Ontario.
Spectra Energy is a premier pure-play
natural gas midstream company in
North America.

While we are a new public company,
our legacy of delivering gas to meet
customer needs began close to a
century ago, and continues today
through the dedicated efforts of
Spectra Energy employees across
the U.S. and Canada.
Paul M. Anderson, chairman of the board




                                          2
Letter from the Chairman




Why Spectra Energy?
Why now?


                         “Spectra Energy has been formed to
                     aggressively pursue myriad opportunities that
                         are emerging in the rapidly evolving
                         North America natural gas industry.”


It is my great pleasure to introduce you to Spectra Energy – a newly independent leader in
the natural gas services industry. Spectra Energy was created from the natural gas businesses
of Duke Energy. As such it is a pure-play – one might say a “designer-company,” formed to
aggressively pursue myriad opportunities that are emerging in the rapidly evolving North
America natural gas industry. It has the right set of assets and the right management team
with the financial strength to pursue a strategy of growth.

To understand where we are today, it is necessary to briefly review how we arrived here.

Ten years ago, Duke Energy grabbed the spotlight when it announced the merger of a
leading electric utility, Duke Power, with the natural gas services company, PanEnergy. In
the years that followed, equally newsworthy mergers with Westcoast Energy, Cinergy, and
the many transactions that built Duke Energy Field Services, established Duke Energy as a
premier diversified energy company.

At the same time, the energy industry was evolving rapidly – in many ways that were not
anticipated at the time of the original Duke Power merger. The rise and fall of the merchant
power business and associated trading activities, ever more restrictive affiliate rules, and the
stalled state of deregulation and disaggregation of the power industry, created a very
different industry environment.



                                                3
By the beginning of 2006, it became obvious that the advantages of operating a combined
electric power and gas company were being overwhelmed by a number of disadvantages.
The interaction of our diverse businesses became more complicated and, at times,
cumbersome. Our ability to participate in the consolidation of specific industry sectors was
hampered by our diversity, and the investment community found it difficult to value the
combined entity. It became clear that today’s market awards a higher value to pure-play
companies than to energy superstores.

In June 2006, the Duke Energy board approved the separation of the gas businesses
through a spin-off of those businesses into a fully independent, publicly traded company –
Spectra Energy. Between that time and the end of the year, we segregated the gas assets,
assembled a management team and board, developed a growth strategy and created a
financial structure with the strength to pursue that strategy. By January 1, 2007, we
were poised to emerge as a fully independent leader in the natural gas services industry.
Given my background in the gas industry, I chose to join the new company as the
Chairman of the Board, leaving Duke Energy in the capable hands of Jim Rogers, who
will chair its board going forward.

Today, Spectra Energy is a proud new company that consists of established assets with
outstanding market positions coupled with an experienced management team. We are
excited about our future and dedicated to creating shareholder value. Of equal importance,
we are committed to a set of values that emphasize ethical behaviors, safety, respect for
the individual and the pursuit of excellence. We intend to honor our obligations to our
shareholders, our customers, our suppliers, our communities and our employees.

We welcome your interest and appreciate your support – support that we intend to
earn every day.




                                 Paul M. Anderson
                                 Chairman of the Board



                                               4
Spectra Energy Charter




We are Spectra Energy,
North America’s premier natural gas midstream business.

We create superior and sustainable value for our investors, customers, employees, and
communities by providing natural gas gathering and processing, transmission, storage
and distribution services.

To be an industry leader, we must:
• Launch our new company with confidence, pride and discipline
• Deliver on our 2007 financial objectives
• Boldly develop new opportunities and projects that add long-term shareholder value
• Enhance our core competencies of customer service, reliability, cost management, compliance,
   and stakeholder relationships
• Build on our high-performance culture by focusing on safety, diversity, inclusion, leadership
   and employee development

In conducting our business, we value:
• Stewardship – Demonstrating a commitment to environmental responsibility and
   vibrant communities
• Integrity – Ethically and honestly doing what we say we will do
• Respect for the Individual – Embracing diversity and inclusion, enhanced by openness,
   sharing, trust, leadership, teamwork and involvement
• High Performance – Achieving superior business results and stretching our capabilities
• Safety – Sharing a relentless commitment to a zero work-related injury and illness culture
• 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

We know we are successful when:
• We deliver superior returns for our investors
• Our customers, suppliers and communities benefit from our relationships
• Every employee starts each day with a sense of purpose, and ends each day safely with
  a sense of accomplishment




                                               5
Fred J. Fowler, president and chief executive officer




                                                        6
Letter from the President & CEO




Where is Spectra Energy going?
How will we get there?


                      “We feel uniquely privileged to be in this
                   position: a new, stand-alone company – built on
                   the rock-solid foundation of proven experience,
                          assets and customer relationships.”


As Paul addressed in preceding pages, the creation of Spectra Energy came about at the right
time – and for all the right reasons: Clarity of purpose and a focus more aligned with
management of our assets. Pursuit of growth opportunities, fueled by direct access to capital
and financing vehicles. A pure-play business model easily understood and highly valued.

We feel uniquely privileged to be in this position: a new, stand-alone company – built on
the rock-solid foundation of proven experience, assets and customer relationships.

While other “start-ups” launch on the promise of good intentions, Spectra Energy backs our
promise with close to a century of results. We know the business of natural gas infrastructure.
We know our markets – and the shifting dynamics of our sector. We know how to grow –
and how to finance growth and deliver lasting value. We know our customers – and they
know us. So while we have structured a bold new company, we’ve built Spectra Energy on
the bedrock of industry-leading experience.

As one of North America’s premier natural gas midstream companies, Spectra Energy will
deliver substantive, real results – for our customers, our owners, our communities, and our
employees. We will operate with the uncompromising integrity we have demonstrated in




                                               7
all our business dealings over the many years we have been in this business. And we will
move forward with creative ideas and innovative approaches to serve the evolving energy
needs of North America.

We stand at a unique point in our industry’s history. We’re seeing a major increase in the
contribution of natural gas to the global energy industry. Forecasts show that while overall
global energy demand is expected to increase by 60 percent by 2030, demand for natural
gas is expected to increase by more than 75 percent. Large levels of investment are tracking
those projections and forecasts indicate significant infrastructure expansions.

In North America, we see tremendous growth potential – and a new precedent in public
and political willingness to pursue diversity of supply… critical investment build-out…
and the exploration of new sources and technologies.

This is a good time for our industry – and a great time for Spectra Energy. We are ideally
positioned to capitalize on the shifting dynamics of our sector and the large number of
expansion opportunities on the horizon.

We are connected to the fastest growing markets in North America – and to abundant,
diverse supply sources. We have an exceptional, strategically positioned asset base which
connects diverse natural gas supplies to four of the fastest growing markets in North America.

We have strong, proven assets – and a host of new high-potential projects already underway.
Our long-haul pipelines, gathering and processing plants, storage assets and distribution
system give Spectra Energy one of the largest natural gas systems in North America.

We enjoy productive, long-term relationships with our customers. Our U.S. pipelines have
successfully re-sold capacity by an average of 97 percent every year since 2003, and our U.S.
market-based storage sells out year after year, with revenue increases of 43 percent over the
past four years. Our Western Canadian operations have achieved more than a decade of
collaborative rate settlements with customers, and our British Columbia gathering and
processing facilities operate under a light-handed regulatory model. For nearly a century,
our distribution, storage and transmission network has been serving residential, commercial
and industrial customers in Ontario and the U.S. Northeast.




                                               8
                    “Spectra Energy combines the vigor and
                entrepreneurial spirit of a spunky start-up with a
                  powerhouse pedigree and market position.”


We bring robust, stable earnings and cash flow to the table, and have the capacity to grow
our business long term. We are committed to delivering long-term ongoing earnings per
share growth of 5 to 7 percent, while maintaining a strong balance sheet and operating
cash flow. This growth will be driven primarily by our gas transmission business, which
expects compounded annual ongoing earnings before interest and taxes (EBIT) growth
of 7 to 9 percent.

We have a team of smart, innovative energy professionals dedicated to serving customers
and delivering solid results to our many stakeholders. At Spectra Energy, we respect and
encourage independent, inventive, out-of-the-box thinking, and we believe in the
immeasurable power of ideas that grow from great minds.

Spectra Energy combines the vigor and entrepreneurial spirit of a spunky start-up with
a powerhouse pedigree and market position. We’re poised to take full advantage of
opportunities that create and grow shareholder value.

Our financial and operational performance will be matched, always, by an abiding
commitment to safety, integrity and stewardship – and to making the communities we
serve better for our presence.

We look forward to the road ahead, and we hope you’ll join us on this exciting new journey!




                                 Fred J. Fowler
                                 President & CEO




                                              9
Spectra Energy’s success rests
with strong leaders and performers
in every corner of our business.
Our talented team is deep in
experience – and brimming with
enthusiasm and ingenuity.




                   11
Spectra Energy’s Executive Leadership Team – Pictured from left: William S. Garner, Jr., general counsel;
Martha B. Wyrsch, president and CEO, Spectra Energy Transmission; Alan N. Harris, chief development
officer; Gregory L. Ebel, chief financial officer; and William H. Easter III, chairman, president and CEO,
DCP Midstream.




                                                     12
Spectra Energy Management

A leader in the competitive natural gas sector, Spectra Energy has assembled a deep bench of talent to drive
results and deliver value.

Our management team brings a wealth of experience, values and vision to their roles. To a person, they are
committed – deeply – to serving customers and advancing the contribution of natural gas resources to our
communities and our world.

They are also dedicated to the men and women who stand behind them: individuals with the smarts and spirit
to make a difference and create positive, lasting change. And we are building upon Spectra Energy’s high-
performance culture by focusing on safety, diversity, inclusion, leadership, and employee development.

As a new stand-alone organization, Spectra Energy was in the unique position of being able to draw from a rich
well of knowledge and experience. Not many companies embarking upon a change of this magnitude could
build from within as successfully as we’ve been able to do. At the same time, we’ve infused our team with new
expertise… new ideas… and new human energy.

We’ve set the bar high for the launch of our new company – and our team has set their sights even higher.
Spectra Energy will deliver on our financial and operational goals. And we will achieve those goals by adhering
to the highest standards of integrity, responsibility, and partnership with those we serve.




  DCP Midstream Leadership Team – Pictured from left: Rick Cargile, group vice president, gas supply, contract administra-
  tion, and business optimization; Brent Backes, group vice president, legal, and general counsel; Robert Martinovich,
  group vice president, operations, environment, health and safety, and technical services; Mark Borer, president and
  CEO, DCP Midstream Partners; Rose Robeson, group vice president, finance, and chief financial officer; and
  Chris Lewis, group vice president, human resources and public affairs. Not pictured: William Waldheim, group vice
  president, marketing and trading; and Brian Frederick, vice president, planning and corporate development.




                                                             13
14
A Deep Bench of Talent and Experience – Spectra Energy’s Senior Leadership Team, pictured front row, from left:
Guy G. Buckley, vice president, mergers and acquisitions; Julie Dill, president, Union Gas; C. Gregory Harper, group vice
president, analysis and transition; William T. Yardley, group vice president, northeast transmission; Toni Beck, group vice
president, internal and external relations and government affairs.

Second row, seated, from left: Dorothy M. Ables, vice president, audit services and chief ethics and compliance officer; Laura
Buss, vice president, strategic development and analysis; Joseph F. Hildenbrand, vice president, planning; Sabra L. Harrington,
                                        .
vice president and controller; Gregory P Bilinski, group vice president, operations, engineering and construction, and environ-
mental, health and safety.

Third row, seated, from left: Patrick J. Hester, associate general counsel, northeast region; Christine M. Pallenik, associate
general counsel, southeast region; R. Mark Fiedorek, group vice president, southeast transmission and storage.

Standing, from left: Patricia M. Rice, vice president and assistant corporate secretary; John R. Arensdorf, vice president,
investor relations; Gregory J. Rizzo, group vice president, U.S. regulatory and project management; Stephen W. Craft, vice
president, information technology; Bruce E. Pydee, general counsel, Canada; James M. Pruett, group vice president, human
resources and support services; Doug Haughey, president, Spectra Energy Transmission West, and president, Spectra Energy
Income Fund; Steven M. Sobell, vice president, tax; Keith A. Crane, vice president and treasurer.



                                                                15
Vancouver          Calgary      Natural Gas Liquids
                                (NGL) Pipeline                                                   ervi e
                                                                         Union Gas Distribution Service Area




                                                                                                                           Halifax



                                                                                                                  Boston
                                                                                           Chatham




                              Denver


                                                                                 Nashville
                         Natural Gas
                         Gathering Pipelines                Tulsa
                                                                                     Natural Gas
                                                                                     Transmission Pipelines
                                               Midland

                                                      Houston

                                                                                                     Tampa
   Natural Gas Processing Plant (SET)

   Processing Plant (DCP Midstream)

   Propane Terminal

   Natural Gas Storage




                           2006 natural gas throughput                                  3.2 trillion cubic feet


                           Miles of transmission pipe                                   17,500


                           Miles of gathering and processing pipe                       58,500


                           Miles of distribution pipe                                   35,000


                           Storage capacity                                             250 billion cubic feet


                           Retail customers                                             1.3 million




                                                                    16
Spectra Energy serves its customers
by transporting natural gas from
North America’s major supply areas
to markets in the northeastern,
northwestern and southeastern
United States and in Canada. In
addition to our vast transmission
pipeline assets, Spectra Energy
stores natural gas, distributes natural
gas to retail customers in Ontario,
and gathers and processes natural
gas for customers in producing
basins across North America. We
also store, market and transport
natural gas liquids to customers in
the U.S. and Canada.




                    17
18
Natural Gas Transmission and Storage – U.S.

Spectra Energy has one of the largest natural gas transportation systems in the U.S., encompassing more than
12,800 miles of transmission pipelines and 85 billion cubic feet of storage capacity. Our five primary U.S.
transmission systems are robust, reliable – and growing:

Texas Eastern Texas Eastern travels about 1,700 miles, moving 6.2 billion cubic feet per day from producing
fields in the Gulf Coast region of Texas and Louisiana to high-demand markets in the northeastern U.S.

Algonquin The Algonquin pipelines transport 1.9 billion cubic feet of gas per day through more than
1,000 miles of pipeline and six compressor stations.

East Tennessee With 1,353 miles of pipeline, East Tennessee can deliver 1.3 billion cubic feet per day to meet
the growing energy demands of the U.S. Southeast. East Tennessee also has an LNG storage facility that
provides about 14 percent of East Tennessee’s peak day requirements.

Maritimes & Northeast Pipeline The Maritimes & Northeast Pipeline system delivers critical supplies of
natural gas to the northeastern U.S. through a reliable transportation system that increases downstream market
alternatives for current and future shippers. Maritimes extends about 900 miles from producing fields in
Nova Scotia through Maine, New Hampshire and Massachusetts, delivering 4.2 billion cubic feet per day.

Gulfstream A partnership between Spectra Energy and the Williams Companies, Gulfstream is the largest
pipeline in the Gulf of Mexico, delivering 1.1 billion cubic feet per day of natural gas via 690 miles of pipeline.

Storage Services Our flexible and diverse gas storage assets are located in both supply and market areas, and are
expanding to meet growing demand.

In the supply area, we plan to increase our Gulf Coast salt cavern storage facilities at Egan, Moss Bluff, and the
proposed Copiah facility by more than 35 billion cubic feet over the next six years. Our Saltville gas storage facility
in Virginia is capable of delivering up to 250 million cubic feet of natural gas per day to the surrounding region.

Our Transmission Advantage The size and regional scale of our assets allow us to pursue new growth
opportunities – and the attractive nature of our supply source and end use markets gives us an advantage in
capturing new transportation volumes.

As we move forward, you’ll see Spectra Energy take a two-pronged approach to transmission growth: We will
continue our proven method of “market pull” – moving gas from established market points and building
pipeline transportation capacity to satisfy demand in new or expanding markets. And we will take advantage
of the evolving supply profile in the continental U.S. and Canada with “supply push” projects. Combining
the two approaches will increase overall service and reliability: Producing customers will gain access to a more
diverse market base – and consuming customers will secure an expansive source of natural gas supplies.




  Providing Critical Links: Spectra Energy’s Holbrook Compressor Station is located in Greene County, Pennsylvania,
  and serves as a critical link in our transmission system.



                                                              19
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Gas Distribution

Union Gas Spectra Energy provides retail distribution services in Canada through our subsidiary, Union Gas
Limited. Union Gas serves about 1.3 million residential, commercial and industrial customers in more than
400 Ontario communities.

Union Gas also provides storage and transportation services to other utilities and market participants in Ontario,
Quebec and the U.S. With 150 billion cubic feet of storage capacity and more than 5 billion cubic feet per day
in transportation capacity, our Union Gas storage and transmission system forms an important link in moving
natural gas from Western Canada and U.S. supply basins to growing central Canadian and northeastern
U.S. markets.

We are pursuing growth through system expansions and other business opportunities in the Union Gas market
area. Healthy customer demand is supporting the expansion of our critical Dawn to Trafalgar pipeline system
and storage facilities, which will deliver natural gas to eastern Canada and the U.S.

We are also expanding our market area capacity, including at Union Gas’ Dawn storage hub in southwestern
Ontario – the largest natural gas storage facility in Canada and a major North American natural gas trading
hub. The Dawn hub is a key natural gas trading location with an average of more than 7.5 billion cubic feet
per day of natural gas trading activity.

The company continues its long history of operational excellence and reliable service, a tradition that dates back
to 1911 when Union Gas was first incorporated. In response to Ontario’s changing electricity supply mix and
the province’s growing demand for power generation, Union Gas continues to develop innovative new service
offerings. Most recently, the company introduced new options for power-producing customers, giving them
more flexibility in requesting changes to their service requirements. The company also launched new intra-day
balancing services that enhance delivery flexibility. These new services underscore Union Gas’ commitment to
its growing customer base.




  A Tradition of Service: Union Gas utility service representatives are familiar faces in the neighborhoods of Ontario,
  delivering safe, reliable service for close to a century.



                                                               21
22
Gas Transmission & Processing – Western Canada

Spectra Energy’s western Canadian portfolio includes four businesses: BC Pipeline; BC Field Services; Midstream;
and Natural Gas Liquids. Together they constitute one of the largest gas midstream businesses in Canada. With
this focus on the midstream gas and gas liquids value chain, we have built a western Canadian business that is
substantial in both scale and scope. Given this market-leading presence, the businesses are well positioned to grow.

BC Pipeline Spectra Energy’s transportation system stretches from Fort Nelson in northeastern British Columbia
to Gordondale at the British Columbia/U.S. border at Huntington/Sumas. The system includes:
  About 1,600 miles of natural gas transmission pipeline which can transport 1.9 billion cubic feet of
  natural gas per day
  19 compressor stations and four interconnecting pipelines
  The transmission system is fully regulated by the National Energy Board in Canada, with the southern main-
  line serving markets in the lower mainland of British Columbia and the U.S. Pacific Northwest since 1957.

BC Field Services Spectra Energy’s integrated raw gas gathering and processing system gathers raw natural gas
from diverse supply sources such as the Yukon and southern Northwest Territories, Alberta and northeastern
British Columbia. The system includes:
   Approximately 1,800 miles of gas gathering pipelines
   Five natural gas processing facilities with a capacity of about 2 billion cubic feet per day
   Processed natural gas delivered to markets in Canada and the U.S. Midwest and Pacific Northwest

Midstream Spectra Energy’s western Canadian midstream division primarily comprises assets within the publicly
traded Spectra Energy Income Fund, which Spectra Energy holds a 46 percent stake in and operates. The
business is made up of 13 natural gas gathering and processing facilities in British Columbia and Alberta, with
a capacity of more than 900 million cubic feet per day and about 1,000 miles of raw gas gathering pipelines.

Natural Gas Liquids Spectra Energy’s Empress System includes NGL extraction, fractionation, transportation,
storage and marketing operations. These facilities include:
  2.4 billion cubic feet per day of natural gas liquids extraction and 55,000 barrels per day of fractionation capacity
  A 580-mile NGL pipeline running from Empress Alberta to Winnipeg, Manitoba
  4 million barrels of underground NGL storage with seven truck and three rail shipping terminals




  Mighty McMahon: Spectra Energy’s McMahon Gas Processing Plant, located in Taylor, was British Columbia’s first gas
  processing plant, completed in 1957. It is connected to 800 miles of gathering pipeline, making it one of the largest
  gathering systems in the world. McMahon processes up to 750 million cubic feet of gas per day for transport on the
  BC Pipeline mainline. In addition to the McMahon Processing Plant, the Taylor complex includes a Sulphur Recovery
  Plant, a Cogeneration Facility and Booster/Compressor Station 1.



                                                            23
24
Natural Gas Gathering and Processing – U.S.

DCP Midstream, in which Spectra Energy holds a 50 percent interest through a joint venture with
ConocoPhillips, leads the midstream industry as one of the nation’s largest natural gas gatherers and processors,
and one of the largest natural gas liquids (NGL) producers and marketers.

The company owns or operates 52 plants and approximately 56,000 miles of gathering and transmission pipeline
in seven of the major U.S. natural gas regions.

On a daily basis, DCP Midstream gathers and transports about 6,600 billion cubic feet of raw natural gas,
produces approximately 360,000 barrels of NGL, and markets and trades an average of over 450,000 barrels
of NGL.

The company separates NGLs from raw natural gas and “fractionates” these liquids into their individual ethane,
propane, butane and natural gasoline components. DCP owns or operates 11 fractionating facilities and eight
propane terminals.

DCP Midstream serves a diverse array of suppliers and customers. Unprocessed natural gas is acquired at
the wellhead from multinational energy companies and from large and small independent producers. NGL
customers range from large, multinational petrochemical and refining companies to small propane distributors.
Residue gas resulting from processing is sold to both gas marketers and end users, including large industrial
customers and natural gas and electric utilities. DCP Midstream also stores gas for itself and others in the
company’s 6 billion-cubic-foot Gulf Coast storage facility.

In December 2005, the company created a master limited partnership, DCP Midstream Partners, LP, to support
growth. DCP Midstream owns the general partnership of the MLP and manages and operates its assets in
Louisiana and Texas, as well as its wholesale propane logistics business in the northeastern U.S.

DCP Midstream Partners acquired the wholesale propane logistics business from DCP Midstream (formerly
Duke Energy Field Services) during the fourth quarter of 2006. This business, known as Gas Supply Resources
(GSR), is the largest wholesale propane logistics company in the northeastern U.S., with six owned rail terminals,
one leased marine terminal, access to several open-access pipeline terminals and 475,000 barrels of storage capacity.

The company recently completed the construction of a new wholesale propane pipeline terminal in Midland,
Pennsylvania, which provides improved propane supply and logistics for the region. DCP Midstream, which
operates GSR and other assets on behalf of the MLP, will contribute an additional $250 million in assets to the
master limited partnership in 2007.




  Reliable Resources: DCP Midstream Partners’ wholesale propane distribution and logistics business includes this pipeline
  terminal in Midland, Pennsylvania, which provides retail propane marketer customers with reliable summer/winter supply.



                                                             25
Spectra Energy Board of Directors




                 Paul M. Anderson
                 Paul Anderson previously served as chairman of the board of Duke Energy. Prior to the
                 merger of Duke Energy and Cinergy Corp. in April 2006, Anderson served as chairman
                 of the board and chief executive officer of Duke Energy from November 2003 until April
                 2006. He has also served as managing director and chief executive officer of BHP Billiton,
                 from 1998 until his retirement in 2002, and continues to serve on the company’s board of
                 directors. He has also served as a director of Fluor Corporation and Temple Inland Inc.,
                 and currently serves on the board of Qantas Airways.

                 Austin A. Adams
                 Austin Adams is the former chief information officer (CIO) of JPMorgan Chase, the third
                 largest bank holding company in the world. He assumed that role upon the merger of
                 JPMorgan Chase and Bank One Corporation in 2004. Before joining Bank One in 2001,
                 Adams served as CIO at First Union Corporation, now Wachovia Corp. He is a member
                 of the Research Board, the CIO Strategy Exchange, and serves on the board of the Bank
                 Administration Institute and ViewPointe.


                 Roger Agnelli
                 Roger Agnelli is president and chief executive officer of CVRD, a global mining company
                 and the world’s largest producer of iron ore. He has held that position since 2001. He
                 served in various positions at Bradesco, a Brazilian financial conglomerate, from 1981
                 to 2001, and as president and chief executive officer of Bradespar S.A. He is a director
                 of Asea Brown Boveri, Suzano Petroquimica S.A. and Petrobras-Petroleo Brasileiro S.A.



                 William T. Esrey
                 William Esrey is chairman emeritus of Sprint Corporation, a diversified telecommuni-
                 cations holding company. He served as Sprint’s chief executive officer from 1985 to 2003,
                 and as its chairman from 1990 to 2003. He also served as chairman of Japan Telecom
                 from 2003 to 2004. Esrey is a director of General Mills, Inc.




                 Fred J. Fowler
                 Fred Fowler is president and chief executive officer of Spectra Energy. He previously
                 served as group executive and president of Duke Energy Gas, a position he assumed in
                 2006. Prior to then, Fowler served as president and chief operating officer of Duke
                 Energy Corporation. He served as group vice president of PanEnergy from 1996 until
                 the PanEnergy merger in 1997, when he was named group vice president, Energy
                 Transmission.




                                                  26
Peter B. Hamilton
Peter Hamilton is vice chairman and president of Brunswick Corporations’ Boat Division.
He has served in a number of executive leadership capacities for Brunswick, including
chief financial officer, a role he also held for Cummins, Inc. Hamilton has served in a
number of distinguished government positions, including special assistant to the secretary
and deputy secretary, Department of Defense; executive assistant to the secretary,
Department of Health, Education and Welfare; deputy general counsel, Department of
Health, Education and Welfare; and general counsel, Department of the U.S. Air Force.

Dennis R. Hendrix
Dennis Hendrix is the retired chairman of the board of PanEnergy Corp. He served as
chairman from 1990 to 1997, as chief executive officer from 1990 to 1995, and as
president from 1990 to 1993. He has served as a director of Duke Energy, and on the
boards of Allied Waste Industries, Newfield Exploration Company, and Grant Prideco, Inc.




Michael E.J. Phelps
Michael Phelps is chairman of Dornoch Capital Inc., an investment capital company, a
position he assumed in 2003, and chairman of Duke Energy Canadian Advisory Council,
a position he has held since 2002. He served as chairman and chief executive officer of
Westcoast Energy Inc. from 1992 to 2002. He is a director of Canfor Corporation,
Canadian Pacific Railway Company, Fairborne Energy Trust and Inco Limited, and has
served as a director of Duke Energy.


Martha B. Wyrsch
Martha Wyrsch is president and chief executive officer of Spectra Energy Transmission.
She previously served as president of Duke Energy Gas Transmission, a position she
assumed in 2005. She served in a number of leadership capacities with Duke Energy
Corporation, including general counsel, senior vice president of legal affairs, and senior
vice president and general counsel for Duke Energy Field Services.




                                   27
Spectra Energy Investor Information




Shareholder Services                                          Duplicate Mailings
The Bank of New York is the Transfer Agent and                If your shares are registered in different accounts,
Registrar for Spectra Energy Corp common stock.               you may receive duplicate mailings of annual
Registered shareholders may call toll free 1-866-406-         reports, proxy statements and other shareholder
6840 or international callers 1-212-815-3700 with             information. Contact The Bank of New York
questions about their stock accounts, legal transfer          for instructions to combine your accounts or
requirements, address changes, replacement dividend           eliminate duplicate mailings.
checks, replacement of lost certificates or other
services.                                                     Dividend Payment
Send written requests to:                                     Dividends on common stock are expected to
      Spectra Energy Corp                                     be paid, subject to declaration by the Board
      c/o The Bank of New York                                of Directors, on:
      Investor Services Department                                   March 15, June 18, September 17
      101 Barclay Street                                             and December 17, 2007.
      New York, NY 10286
                                                              Website
For electronic correspondence, visit The Bank of
                                                              Additional investor information may be
New York website www.stockbny.com.
                                                              obtained on Spectra Energy’s website at
                                                              www.spectraenergy.com/investors.
Stock Exchange Listing
Spectra Energy’s common stock is listed on the
                                                              Bond Trustee
New York Stock Exchange. The company’s common
                                                              If you have questions regarding your bond
stock trading symbol is SE.
                                                              account, call 1-212-623-5233, or write to:
                                                                     The Bank of New York
Stock Purchase and Dividend
                                                                     Institutional Trust Services
Reinvestment Plan
                                                                     101 Barclay Street
The Spectra Energy Stock Purchase and Dividend
                                                                     New York, NY 10286
Reinvestment Plan provides a simple and convenient
way to purchase common stock directly through the
                                                              Spectra Energy is an equal opportunity employer.
company, without incurring brokerage fees. The
                                                              This report is published solely to inform
plan provides for full reinvestment, direct deposit or
                                                              shareholders and is not to be considered an offer, or
cash payment of dividends. Purchases may be made
                                                              the solicitation of an offer, to buy or sell securities.
weekly. Bank drafts for monthly purchases and
depositing certificates into the plan for safekeeping
are options. Visit The Bank of New York website at
www.stockbny.com for account management access.

Financial Publications
Spectra Energy’s SEC reports and related financial
publications can be found on our website at
www.spectraenergy.com/investors. Printed copies
are available on request.




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Pictured on the back cover – From left, Spectra Energy employees Emmett Hollier, project
coordinator, Houston, Texas; Nancy Suzuki, utility services manager, Halton Operations,
Burlington, Ontario; Glenn Woo, E&I operator, T-South Pipeline, British Columbia;
Tom Wooden, vice president of operations, Northeast Pipelines, Waltham, Massachusetts; and
Ricky Wood, project coordinator, Houston, Texas.
www.spectraenergy.com

								
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