Regional Energy Outlook
Natural gas and electricity shortages are possible unless the region acts quickly to ensure the development of new facilities such as electric transmission lines, power plants, natural gas pipelines and Liquefied Natural Gas terminals. ISO-New England, operator of the region's electric transmission network has warned that as early as 2008 current resources may not be adequate to maintain reliability of the electricity supply. Similarly, the Analysis Group, in an assessment prepared for the Alliance, concluded that additional natural gas supplies may be needed in the region as soon as 2007, and certainly no later than 2010, if the region is avoid severe shortages of the fuel that produces about 40 percent of the region's electricity, heats about one-third of New England's homes and is a major source of energy for businesses.

The Alliance believes the region cannot afford to exclude any energy resource from active consideration.

Energy efficiency must be a top priority, but it alone will not address the region's needs. New and upgraded electric transmission lines to move power from generators to load centers must be built, but more must be done. Renewable energy resources, especially wind power projects, must be encouraged and supported, but they alone will not address the region's needs.

The capacity to deliver and distribute natural gas must be expanded. Nuclear power plants must continue to be an important part of the energy mix. And owners of other large base-load power plants fueled by coal should be encouraged to meet environmental requirements at the lowest possible cost to ensure that these plants continue to contribute to fuel diversity and power system stability.

But those actions may still not be enough to ensure efficient markets, reliable service and reasonable prices. New power plants, using the latest technologies, should be explored and developers should be encouraged to look at New England for potential sites. This includes "clean coal" technologies, biomass and fuel cells with fewer greenhouse gas emissions, the next generation of nuclear plants with no greenhouse gas emissions and large scale wind projects similar to Cape Wind.

Decisions on new projects must be timely. The opportunity for intervention that would delay or derail projects, once they have met regulatory requirements, should be minimized.

Only through a multi-faceted approach can we ensure an adequate supply that is diverse, reliable and cost effective.