Texas Eastern Transmission, LP and Algonquin Gas Transmission, LLC - NJ-NY Project - Comments on Draft EIS, Docket No. CP11-56.

Appendix A New Jersey Natural Gas Market Analysis Prepared for: Spectra Energy Corp June 2011 Prepared by: Concentric Energy Advisors, Inc. 293 Boston Post Road West, Suite 500 Marlborough, MA 01752 Concentric Energy Advisors and its logo are federally registered trademarks of Concentric Energy Advisors. Any unauthorized use is prohibited. A. INTRODUCTION 1. Purpose of Report Spectra Energy Corp (Spectra) retained Concentric Energy Advisors, Inc. (Concentric)1 to review and evaluate: (i) the long term natural gas demand in New Jersey; and (ii) certain existing natural gas pricing dynamics and future implications associated with additional market area natural gas infrastructure. Specifically, Concentric evaluated the natural gas demand requirements of New Jersey local distribution companies (LDCs) and power generators; and quantified certain cost savings that may accrue to New Jersey energy market participants if new natural gas infrastructure is developed in the Northeast market area. This report is presented in six sections: A. Introduction in addition to the purpose of the report, provides an executive summary of Concentrics conclusions based on the information presented; B. Market Overview an overview of the existing natural gas market in New Jersey (e.g., historical natural gas demand); C. Natural Gas Demand Forecast provides a detailed explanation of the methodology utilized to project natural gas demand for the LDCs and electric utilities in New Jersey and provides the results of the projected demand for the LDC and electric utility segments; D. Natural Gas Infrastructure reviews the current and proposed natural gas infrastructure in the New Jersey market area; E. Natural Gas Price Analysis provides a review of the natural gas price indices that are utilized to price delivered natural gas in the New Jersey market area; and F. Cost Savings Analysis provides a summary of the analysis and results regarding the potential cost savings for New Jersey energy market participants associated with new market area natural gas supply and infrastructure. 1 The opinions expressed in this report are based on Concentrics judgment and analysis of current/key factors expected to affect the outcomes of future natural gas markets in the defined region. However, the actual operation and results of those specific markets may differ from those projected herein. CONCENTRIC ENERGY ADVISORS, INC. PAGE 1 2. Executive Summary Below is a brief summary of the conclusions reached in this report: Natural Gas Demand Forecast: Over the next ten years, the design day natural gas demand in New Jersey is expected to increase by approximately 20% or 900 ...