Posted on 07/02/2014 4:36:24 AM PDT by thackney
New England states are united in proposing that a tariff be imposed on electricity rates throughout the region to fund more natural gas pipelines and increased transmission infrastructure — to reverse electricity costs that are among the highest in the nation.
The proposal is a necessary step because the region has limited gas pipeline capacity despite a demand that has grown from 6 percent in 2000 to 46 percent in 2013, energy experts said at a forum sponsored by The New England Council at St. Anselm's College in Manchester Monday.
At the same time, more and more coal-fired, oil and even nuclear power plants are retiring, which have acted as a more reasonably priced back up during cold New England days when natural gas supplies have been curtailed.
And many of these reasonably priced alternatives emit greenhouse gases and therefore come at an environmental cost, said experts, as New England states seek to reduce carbon emissions.
The end result is a "precarious" situation that has in the last four winters placed New England "on the brink of reliability," said Gordon van Welie, president and CEO of ISO-New England, which oversees the operation of New England's bulk electric power system.
For instance this past winter, electricity prices soared as gas pipelines were operating at capacity but demand was much higher. Van Welie said the wholesale energy market in New England for the months of December, 2013 and January and February, 2014, was about $5 billion — the same value of the entire 12 months of 2012.
It is a situation that energy experts for the states of Maine, New Hampshire, Massachusetts and Rhode Island called untenable — particularly economically.
"New England is losing out" on a natural gas "boom" that is going on elsewhere in the country, said Patrick Woodcock, the director of the Maine Governor's Energy Office.
"We've had companies looking at Maine, and when they sharpened their pencils and looked at the energy costs, they say, 'No thank you. We're going where there's lower energy costs,'" he said.
The six states, at the direction of their governors, have formed the New England Committee on Electricity to come up with solutions. On June 20, the committee proposed that a tariff be imposed to add natural gas pipelines and transmission lines with the goal of increasing power reliability throughout the region.
While they stress this is a preliminary proposal and states are working on a solution, the energy panelists said something has to give in New England.
"We would prefer the magic market-based solution," said Nicholas Ucci of the Rhode Island Office of Energy Resources, "but that solution has not come forward."
"We would prefer the magic market-based solution," said Nicholas Ucci of the Rhode Island Office of Energy Resources, "but that solution has not come forward."Nonsense. The magic market-based forces are always at work. If there is not enough capacity, it is because there is not enough profit to overcome the regulatory hurdles.
No?
Well, bye!
Only to liberals - higher taxes will lead to lower energy costs.
Let them freeze in the dark...
They should go out and Hug-A-Tree!
to overcome the regulatory hurdles
BTTT
and the real reason some areas are far more expensive than others...
I see lawn signs everywhere rejecting gas pipeline development.
Rational people have no problem with gas pipeline developmnet, buyt the moonbats are anti-engergy and NIMBY fanatics, and they are the prevailing political force.
We live there and my wife depends upon an oxygen machine. If power goes out I’ve got a generator but that’s only good for a couple of days.
Raise the rates, lower the demand. How’s that for a “magic market solution”?
No natural gas should flow to NeoEuropa....... let the yankees freeze, in the dark
That is the logical recourse for hating energy, hating America
...
It is a situation that energy experts for the states of Maine, New Hampshire, Massachusetts and Rhode Island called untenable — particularly economically. Electricity production causes carbon dioxide production except in nuclear and hydro. There isnn't enough hydo and nuc to produce the electricity that the government loving freedom hating populations of the northeast want. WELL let them live in the dark and freeze. They want to "curb greenhouse gasses" for the non existant threat of "global (globull) warming" Well here's their chance to do their part. F*** 'em Let them hug their picture of 0 and the first wookie to keep warm.
ya can’t pay for infrastructure when you are giving leaches cradle to grave welfare.
Who needs good roads when you can use the road money to bribe voters?
The current exercise is not about money, it is about talking about money.
In the last two days, two letters to the editor about something in Jacksonville have contained the following phraseology like: this was not the way we did it back north.
My comment, if it was so good there, why did you leave?
A minor nit to pick. Some of the cost is due to location, geography, etc. Construction and transportation are affected by distance and terrain. But the market size and terrain, even in northern parts of New England, aren't the reason for lack of capacity. Heck, there is plenty of Canada (hydro) power coming in; oil pipelines from the New England coast to inland Canada (so pipeline construction is economically feasible); and enough population and population density to justify new construction - except for the hurdles of regulation and related pre-construction lawsuit.
More to the point “get the hell out”
I’ve got a gasoline generator, but the next time I need to buy one for backup power, it will be a tri-fuel. (gasoline, propane, natural gas)
Agreed, but will you agree most of the difference in cost between similar geography are the burdens put in place by the people?
No sympathy here for them. They regulate, tax and litigate most any attempt to bring new energy to their own back yards, all the while demanding the lowest possible prices possible.
Frankly? Screw them. After all, they won’t freeze in the winter now - all that global warming will heat them right up.
Move.
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