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

Appendix B TABLE OF CONTENTS 1 Introduction............................................................................................................................. 1 2 Executive Summary ................................................................................................................ 3 3 Energy Master Plan Background .......................................................................................... 11 3.1 The 2011 Update Process ............................................................................................. 11 3.2 CEEEP Analysis ........................................................................................................... 12 3.3 Implementation of the EMP.......................................................................................... 13 4 New Jerseys Electric Industry ............................................................................................. 14 4.1 The New Jersey Power System..................................................................................... 14 4.2 The PJM Market ........................................................................................................... 16 4.2.1 Transmission System ................................................................................................ 18 4.2.2 Energy Market .......................................................................................................... 20 4.2.3 Capacity Market........................................................................................................ 21 4.3 EDECA and Deregulation ............................................................................................ 22 4.4 New Jersey Market Dynamics ...................................................................................... 23 4.5 Load Growth ................................................................................................................. 28 4.6 Existing In-State Capacity ............................................................................................ 30 4.7 Generation Addition and Retirement............................................................................ 33 4.7.1 Development of New Generation Facilities.............................................................. 33 4.7.2 Generator Retirements .............................................................................................. 35 4.8 Pricing Dynamics.......................................................................................................... 37 4.9 Retail Electricity Market and Customer Classes .......................................................... 38 4.9.1 Basic Generation Service Auction Process............................................................... 39 4.9.2 Competitive Retail Supply........................................................................................ 40 4.9.3 Renewable Portfolio Standard .................................................................................. 45 4.10 Understand