Report on New England Energy Winter Reliability Solutions Finds Proposed Subsidized Natural Gas Pipeline to Be Unnecessary and Costly
BOSTON–(BUSINESS WIRE)–A new in-depth report analyzing energy reliability in New England during extreme winter conditions has concluded that the proposed electric ratepayer funding of additional pipeline capacity is a costly and risky proposition in terms of both ratepayer expense and a healthy energy market in New England. Energyzt Advisors, LLC, a global collaboration of energy experts, conducted the study after the record-breaking winter of 2014-2015, which actually saw a decrease in energy prices.
After several winters produced significant demand for energy in the region, Energyzt analyzed energy market conditions that occurred in New England and compared the costs, benefits, and market impacts of alternative proposals to address winter reliability. The report was commissioned by GDF SUEZ Energy North America to determine if the current plans to build new pipeline capacity funded by electricity ratepayers were really needed in New England.
Energyzt’s report, “Analysis of Winter Reliability Solutions for New England Energy Markets,” found that the existing energy infrastructure in New England is more than adequate to handle the region’s energy needs. The report stated that, “certain market participants have advocated for extraordinary government intervention to mandate regulated electric ratepayer funding of a new pipeline, implicitly claiming that high prices are signaling a shortage of pipeline delivery capability and a failure of the market to respond appropriately. Some have gone as far as to claim that New England gas and electric reliability are at risk. These claims are unsupported.”