E3's Positive Economic Impact

ESNG contracted for a third party, independent economic analysis of the E3 Project. The study was conducted by a Professor of Applied Economics from Johns Hopkins University and a Professor of Economics from Loyola College in Baltimore, MD and was completed in April 2006.

The study concludes that the E3 Project will provide substantial economic benefits to the E3 serviced areas of Maryland and Delaware. For example, more than 1,500 jobs would be created during the construction phase of the Project with 46 jobs created on a continuing post-construction basis.

The economic stimulus provided by the E3 Project would not only raise labor demand and incomes, but also help diversify and stabilize local economies as other business sectors experience "pour-over" gains. The study's initial estimates also indicate that the E3 Project could result in longer-term savings for natural gas consumers on the Delmarva Peninsula.

During 40 years of pipeline operations, the E3 Project, in present value terms, is estimated to generate:

• $273 million in added sales volumes for area businesses
• $89 million in added labor income for area workers
• $70 million in added tax receipts for various levels of government

Other economic benefits from the E3 Project:

• 1. Employment growth (both direct and indirect impact during the construction and ongoing operating phases of the pipeline)
• 2. Additional sales revenues for local and regional commercial and industrial entities
• 3. Increase in disposable income for consumers as a result of lower energy prices