Spectra, Northeast Utilities unveil $3B gas pipeline plan
A $3 billion pipeline project that would increase the flow of natural gas into New England to meet growing demand was announced by Spectra Energy and Northeast Utilities (NU) Tuesday.
“This new partnership with Spectra Energy will benefit our customers, drive costs down and help take a substantial step toward solving the looming energy crisis in New England,” said Thomas May, NU chairman, president and chief executive officer, in a statement.
The project is designed to meet growing demand for natural gas and address seasonal spikes in usage, according to Spectra officials. Over the past 15 years, natural gas-fired generation has grown from serving 15 percent of New England’s annual electric requirements to about half, said May. Meanwhile, many homes and businesses have also converted to heating with natural gas during that time, May said.
As the demand grows for heating homes with natural gas, as it did last winter, it leaves less available for electricity generation, according to May.
“Last winter, the New England electric market reached a critical point, as lack of access to natural gas capacity cost customers dearly,” May said. “New England wholesale electricity costs were nearly double compared to the previous year, largely due to pipeline constraints.”
The project will help drive costs down for customers, said May. Driven by rising natural gas prices, wholesale electricity prices in New England rose 55 percent in 2013 as of last March, according to ISO-New England, which operates the region's bulk power system and wholesale electricity markets. The expansion will take place along the existing Algonquin and Maritimes gas pipelines with completion expected by November 2018.
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