National Grid joins Eversource in power expansion effort
National Grid, the largest electric utility in Central Massachusetts, has joined Eversource Energy and two other energy firms as co-developers of a large-scale effort to expand existing pipeline infrastructure that will bring up to 1 billion cubic feet of natural gas to the region for electricity generation.
The addition of National Grid as a co-developer for the effort, Access Northeast, was announced Wednesday morning by Eversource, formerly Northeast Utilities, which supplies electricity and natural gas to parts of the region. The other developers are Spectra Energy and Spectra Energy Partners. They are based in Houston and have operations in the United States and Canada.
Access Northeast will upgrade existing pipeline facilities and market area storage assets in New England to deliver, on peak days, up to 1 billion cubic feet of natural gas for electric generation markets, the Eversource statement read. The solution will minimize environmental and community impacts by maximizing use of existing pipeline and utility corridors and existing natural gas infrastructure, according to Eversource.
"Once Access Northeast is operational, it is projected to save electric customers an average of $1 billion a year during normal weather conditions and even more during severe cold weather," Lee Olivier, executive vice president of enterprise energy strategy and business development at Eversource, said in a statement. A study estimated that, had the added capacity been available last year, could have saved $2.5 billion during last year’s "extreme” winter.
"Our customers are literally paying the price for the pipeline constraints we have here in New England," said John Flynn, senior vice president of U.S. business development for National Grid. "We are joining Access Northeast to lower energy costs for our customers and to help improve and support the region's economic vitality. This project will play a key role in helping New England achieve a sustainable energy future."
"We're making great progress toward implementing this critical solution, which will expand access to much-needed natural gas for electricity generators in our region," Olivier added. “Customers are paying dearly due to pipeline constraints. Infrastructure improvements are needed to solve the region's energy challenges and a scalable solution that will enhance existing pipeline systems has numerous benefits."
Access Northeast will enhance two pipeline systems that connect directly to about 60 percent of New England's gas-fired electric generation. The developers have formed an alliance with Iroquois Gas Transmission to enhance that system, bringing the number of New England gas-fired generators served to more than 70 percent, according to the Eversource statement.
“Simply put, natural gas will get to the region's key, efficient power plants, along mostly existing pipeline and utility corridors,” the statement read.
The developers have agreed to work with seven electric distribution companies to advance the project and seek regulatory approvals, Eversource said. The seven include Eversource's four electric distribution companies in Massachusetts, Connecticut and New Hampshire, and National Grid’s three distribution companies in Massachusetts and Rhode Island.
The Access Northeast developers will be identifying other electric distribution companies across the region that want to participate, according to Eversource.
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