Expand and build more pipelines from Pennsylvania to New England

New England governors push building more natural gas, electricity infrastructure

Thu, 01/23/2014 - 2:45pm

    New England’s governors want to build more gas pipelines from Pennsylvania to the six-state region and they are getting ready to circulate proposal requests for new gas and electricity-producing infrastructure construction.

    Maine Gov. Paul LePage has cited high energy prices in Maine as barriers to business investment, especially for manufacturers.

    “But we are geographically positioned to take advantage of competitively priced natural gas and hydropower resources, if we invest with other states in key infrastructure,” he said, in a Jan. 23 news release.

    The goal is circulate request for proposals of transmission infrastructure to deliver at least 1,200 megawatts to as much as 3,600 megawatts of electricity.

    Maine is a member of the New England States Committee on Electricity, a nonprofit that is to advance “policies to provide electricity at the lowest possible price over the long term, while maintaining reliable electric service and environmental quality,”according to its mission statement.

    Following the collective December statement that New England governors all signed to advance investments in “additional energy efficiency, renewable generation, natural gas pipelines, and electric transmission,” they are now asking the company ISO-New England for help in navigating how to build more infrastructure throughout the region.

    ISO-New England, based in Holyoke, Mass., operates the region’s electrical grid.

    The immediate goals set by Maine and the five other New England states, as articulated in the LePage release are to develop transmission infrastructure for electric systems and expand pipeline capacity that will bring more natural gas to the region.

    “These investments will also serve to balance intermittent generation, reduce peak demand, and displace some of the least efficient and most polluting fossil fuel generation, enabling the states to meet clean energy and greenhouse gas reduction goals while improving the economic competitiveness of our region,” the governors wrote in their December statement (see attached PDF for full text).

    On Tuesday, the governors, acting as the New England States Committee on Electricity, submitted a litter to ISO New England, asking for help to build a “diverse energy infrastructure.”

    “Through this effort, then, the states will seek a portfolio of projects that produce region-wide benefits and which supports an appropriate allocation of costs based on these benefits. The states agree that the costs of transmission infrastructure would be recovered through the ISO New England tariff or through merchant project(s) in a manner that ensures that the benefits and costs of transmission investments are shared appropriately among the New England states.”

    The governors are asking ISO New England provide technical electricity system planning, support in developing and filing of tariff changes, and working with states and transmission owners with Federal Energy Regulation Commission filings.

    The additional capacity of the pipelines “shall be capable of delivering natural gas from one or more of the ‘hubs’ at Ramapo, Wright or similar facility at prices reflecting no or minimal ‘basis differential’ relative to Henry Hub, in amounts sufficient in aggregate to achieve, when taken together with firm commitments by other market participants, an increase the amount of firm pipeline capacity into New England of 1,000 mmcf/day [1 million (1,000,000) cubic feet (1 Mmcf) = 1,027,000,000 Btu] above 2013 levels or 600mmcf/day beyond what has already been announced for the AIM and CT expansion projects.”

    The AIM expansion is Spectra Energy’s proposed construction of approximately 21.4 miles of various segments of existing mainline in New York, Connecticut, Rhode Island and Massachusetts along its Algonquin pipeline. This project includes includes 1.2 miles of new pipeline to be installed beneath the Hudson River.

    Spectra Energy operates the Maritimes and Northeast Pipeline, which runs through parts of Waldo County as it extends south from Nova Scotia to Massachusetts.

    The Connecticut expansion refers to a joint project by Southern Connecticut Gas, Connecticut Natural Gas and Yankee Gas to expand 900 miles of natural gas lines over the next 10 years in that state.

    The governors’ statement, entitled the “New England Governors’ Commitment to Regional Cooperation on Energy Infrastructure,” reads: “To ensure a reliable, affordable and diverse energy system, we need investments in additional energy efficiency, renewable generation, natural gas pipelines and electric transmission. New England ratepayers can benefit if the states collaborate to advance our common goals.” The letter sent Wednesday (see attached) outlines the exact steps to carry out this initiative.

    Summit Natural Gas of Maine announced in November that it intends to move forward with an additional $110 million expansion plan this year. The company's plan includes expanding natural gas service to the towns of Cumberland, Falmouth and Yarmouth, and the phase two build out of their Kennebec Valley project that will benefit thousands of residents and businesses in Maine.


    Editorial Director Lynda Clancy can be reached at lyndaclancy@penbaypilot.com; 207-706-6657.