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CANADA

JANUARY 31, 2002

NEW YORK CITY

US/NORTHEAST COMPARISON 1990 and 1999

Population 9.6% 2.4% 58 million
Source: US Census Bureau, Bureau of Economic Analysis, EIA

GDP 63.1% 53.4% 2.3 trillion

Energy Use 13.9% 10.3% 16.1 quads

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ELECTRIC INFRASTRUCTURE

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Northeast Generation Capacity (in MW)

Northeast generation capacity increased by 11.6% between 1995 and 2000
Source: RDI POWERdat

140000 120000 100000 80000 60000 40000 20000 0 1995

111,000

124,000
Other Nuclear Natural Gas 2000 Hydro 2000 Fuel Oil Coal

1990 1990

2000
4

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Northeast Generation Output (in TWh)

Northeast generation output increased by 25.2% between 1995 and 2000, to 480 TWh
Source: RDI POWERdat

600 500 400 300 200 100 0 1995

Coal Fuel Oil Nuclear Hydro

1% 5% 10% 13%

1990 1990 1990

2000
Natural Gas Other

35%

36%

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Northeast New Generation Capacity

Generation capacity in Northeast may increase by over 33,000 MW by the end of 2004 a 26% increase.
12,000 MW are under construction. 9,000 MW are in the advanced development stage. 12,000 MW are in the early development stage

Virtually all of this capacity is gas-fired.

Sources: RDI POWERdat, System Version 3.1.0308 10/30/01, Data Version P3.1, Data Set Oct 01, RDI Modeled Production Costs-Ownership Based. RDI NewGen. (File 8)

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Transmission Miles in Northeast - 1999

25,000 20,000 Miles 15,000 10,000 5,000 0
New England Power Pool (NEPOOL) New York Power Pool (NYPP) NERC Subregion
Source: RDI-POWERdat 3.1

21,983 13,536 17,740

PJM Interconnection (PJM)

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Proposed Northeast Merchant Transmission Projects

Lake Erie From Ontario to PA and OH Neptune From New Brunswick And Nova Scotia To Boston and NYC/NJ

TransEnergie From Connecticut to New York

Source: .www.neptunerts.com, www.lipower.org, www.lakeerielink.com, www.hydroone.com

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Major Transmission Constraints in the Northeast

East NY

NE of Boston SE CT Interface Southeast PA

Source: FERC

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GAS INFRASTRUCTURE

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Gas Consumption in the Northeast (in Tcf)

Gas consumption increased by over 35% between 1990 to 2000, to 3.4 Tcf. Gas consumption in 2000 was 16.6% of total US consumption
Source: EIA

4 3 2 1 0 1990 2000
11

Electric Generation Industrial Commercial Residential

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Existing Capacity
There are 10 major US pipelines that serve the Northeast gas market. From 1990 to 2000, capacity to the Northeast grew from 10 Bcf per day to 13.3 Bcf per day - a 33% increase. About 75% of the capacity growth - 2.5 Bcf per day delivers Canadian imports.
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Natural Gas Supply Flows to the Northeast

Pipeline Deliveries LNG Deliveries Major Gas Import Points

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Major Northeast Pipeline Systems

National Fuel Dominion Transco Texas Eastern Algonquin Columbia Tennessee Iroquois Maritimes PNGTS
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Natural Gas Imports from Canada to the Northeast

Imports from Canada to the Northeast grew by 50% from 1996 to 2000. The Northeasts share of all Canadian imports to the US grew from 23.3% in 1996 to 28.3% in 2000.
Source: EIA

1200 1000 Bcf per Year 800 600 400 200 0

19 96 19 97 19 98 19 99 20 00

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Major Pipeline Projects Pending (MMcf/d) January 2002

Algonquin (285) NFS/DTI (150) Islander East (285) Iroquois (330) (3 Projects)
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Major Pipeline Projects On The Horizon (MMcf/d) January 2002

Maritimes (400)

Tennessee (450)

National Fuel (500)

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Blue Atlantic (1,000)

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Gas Storage in the Northeast

In 2000, there were 81 active fields in the Northeast 58 in Pennsylvania, 22 in New York, and 1 in Maryland. The total capacity of these storage fields is 922 Bcf. This represents 11.2% of the US storage capacity.
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HYDROELECTRIC INFRASTRUCTURE

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Northeast Hydroelectric Sites

Source: FERC

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Northeast Hydroelectric
There are 529 FERC-regulated hydroelectric projects in the Northeast with total capacity of 14,343 MW. Preliminary permits have been issued to determine the feasibility of installing an additional 232 MW at 35 Northeast sites. In 1995 electric generation from Northeast hydro was 29 TWh and 24.1 TWh in 2000. In 2000, 5% of the Northeasts generation output was fueled by hydro.

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OIL

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Fuel Oil Consumption by Sector (in million gallons)

12,000 10,000 8,000 6,000 4,000 2,000 0
1995 1996 1997 1998 1999 2000

Electric Utility Industrial Commercial Residential

Source: EIA

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Refinery Capacity and Deliverability in the Northeast

10 refineries in Delaware, New Jersey and Pennsylvania as of January 1, 2001 Operating capacity of 1.47 million barrels per calendar day. Two crude oil Pipelines located in New Hampshire, Maine, and Vermont. Delivered 179.7 million barrels of crude oil in 2000. Five products pipelines located in Connecticut, Massachusetts, Rhode Island, Pennsylvania, New York, and New Jersey Delivered 1.5 billion barrels of products and 475.4 million barrels of crude oil in 2000.
Sources: FERC; EIA

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COAL

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Coal Production and Consumption

Pennsylvania and, to a lesser extent, Maryland are the only coal-producing states in the Northeast. Coal production in the Northeast totaled over 79 million short tons, or about 7.2% of total US production. Northeast coal consumption has declined greatly in the last five years from 91.3 million short tons in 1996 to 45.3 million short tons in 2000.
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Coal for Electricity

Electric generation accounted for 85.7% of the coal consumed in the Northeast in 2000. 35.6% of electricity generated in the Northeast in 2000 came from coal. The Northeast also consumed coal via transmission line imports from Kentucky, Tennessee, Ohio, and other coal-producing states.

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