National Grid

Transmission and Wind Energy:
Capturing the Prevailing Winds for the Benefit of Customers, September 2006

The report on electric transmission and wind energy prepared by National Grid raises important issues affecting the future of renewable energy development in New England. But those issues are also important in the broader context of a robust electric transmission system as part of a reliable and affordable energy supply infrastructure. The New England Energy Alliance encourages policy makers to pay close attention to the recommendations in the report, many of which are very much in line with the principles, and certainly the mission, of the Alliance.

Edison Electric Institute

Behind the Rise in Prices, July/August 2006

National Commission on Energy Policy

Siting Critical Energy Infrastructure: An Overview of Needs and Challenges, June 2006

National Petroleum Council

Balancing Natural Gas Policy: Fueling the Demands of a Growing Economy, September 2003

"Current higher prices are the results of a fundamental shift it he supply and demand balance. North America is moving to a period in its history in which it will no longer be self-reliant in meeting its growing natural gas needs; production from traditional U.S. and Canadian basins has plateaued. Government policy encourages the use of natural gas but does not address the corresponding need for additional natural gas supplies. A status quo approach to these conflicting policies will result in undesirable impacts to consumer and the economy, if not addressed. The solution is a balanced portfolio that includes all of the following elements: increased energy efficiency and conservation; alternate energy sources for industrial consumers and power generators, including renewables; gas resources from previously inaccessible areas of the United States; liquefied natural gas (LNG) imports ; and gas from the Arctic."

National Commission on Energy Policy

Ending the Energy Stalemate: A Bipartisan Strategy to Meet America's Energy Challenges, November 2004

The report contains detailed policy recommendations for addressing oil security, climate change, natural gas supply, the future of nuclear energy, and other long-term challenges, and is backed by more than 30 original research studies.

"Taken together, the Commission's recommendations aim to achieve a gradual but decisive shift in the nation's energy policy, toward one that directly addresses our long-term oil, climate, electricity supply, and technology challenges," said William K. Reilly, former EPA Administrator and Commission co-chair. "Oil reliance is a fact we will face for some time. So we recommend incentives to spur global oil production, to increase domestic vehicle fuel economy, and to increase investment in alternative fuels. Our climate change plan would both limit greenhouse gas emissions and cap the costs of doing so. At the same time, it provides incentives for low- and non-carbon sources like natural gas, renewable energy, nuclear energy, and advanced coal technologies with carbon capture and sequestration, as well as for increased efficiency of energy end use. We are proposing programs that can work in the real world."

Regional

New England Council

Report on the Economic Imperative for Additional LNG Supplies in New England, May 2005

New England needs more LNG infrastructure including import terminals before 2010 in order to meet increasing demands or face inadequate supplies. Multiple projections from the federal government and private forecasters indicate that before 2010, demand will equal or exceed the region's ability to supply natural gas.

The report also notes that additional LNG infrastructure in the region will moderate the price volatility of natural gas that has forced businesses and consumers in New England to pay at least $500 million more for electricity every year. The high cost of natural gas is beginning to take a toll on New England's economy -- particularly in the manufacturing sector where natural gas bills have doubled over the last year.

The time to meet these challenges is now. Given the lead-time it takes to permit and construct new natural gas infrastructure facilities, actions deferred or undertaken now will significantly influence the region's economic growth for years to come.

New England Governors' Conference

Meeting New England's Future Natural Gas Demands: Nine Scenarios and Their Impacts, March 1, 2005

Even assuming this LNG storage and vaporization capability remains available, if gas demand grows at a rate equal to or higher than recent growth rates, the region's gas delivery infrastructure would be insufficient to deliver all needed gas after 2010. Under these conditions, to avoid leaving some customers without space heat in 2010 and after, additional gas supply infrastructure (either expanded pipeline capacity or expanded LNG storage capacity) or resources that reduce gas demand would have to have been added to the system. Beyond the ability of infrastructure to deliver gas supplies, sound energy policies also should contribute to achieving the lowest possible long run average price for the fuel and to maintaining as much stability as possible in the short-term price of that fuel.

Northeast Energy Efficiency Partnerships

Economically Achievable Energy Efficiency Potential in New England, November 2004

New England has the potential to more than offset projected energy and load growth over the next five years using cost-effective and readily available energy efficiency technologies, programs and services. A study by Northeast Energy Efficiency Partnerships documented that current policies and programs capture less than a quarter of that potential. At an average cost of 3.5 cents per kWh or less, energy efficiency is the cheapest, cleanest and most readily available resource to serve the region.

ISO New England (www.iso-ne.com/)

Post Hurricane Outlook on Fuel Supply Adequacy and Bulk Power Security, October 13, 2005

As winter weather approaches, New England can anticipate greater pressure than normal on the cost of fuel and, in turn, wholesale electricity prices. It is expected that gas supply constraints likely to occur this winter will require increased reliance on oil for electricity generation, in particular residual fuel oil. Therefore, gas and electric conservation initiatives are encouraged to help maintain reliability of the bulk electric power grid this heating season.

Power Generation and Fuel Diversity in New England: Ensuring Power System Reliability, August 2005

The white paper notes that "As demand for both electricity and natural gas continues to grow in New Engalnd, the region will need to implement strategies to increase gas supplies htrough pipeline and liqueified natural gsa (LNG) infrastructure and manage electric and gas peak demand through conservation, demand response and switching to alternative fuels. The success of these strategies will have significantg impacts on the reliability of the power system, especially during extreme cold weather conditions. " It makes six recommendations including diversity the fuel mix, develop additional gas infrastructure, and provide more flexibility to switch from natural gas to oil for power generation under certain conditions,

Nuclear Energy Institute

The Role of Nuclear Energy in Reducing CO2 Emissions in the Northeastern United States, May 2005

This study demonstrates that nuclear energy must remain a leading source of electricity in the Northeastern United States for decades to come if efforts under the Regional Greenhouse Gas Initiative (RGGI) to reduce CO2 emissions in the electricity sector are to prove successful without major upheaval for industry and consumers. Non-emitting nuclear energy produces 31.6 percent of the Northeast's electricity, making it the single-largest electricity source in the region. The prominence of nuclear power plants means that Northeastern states already enjoy some of the lowest carbon dioxide emission rates in the country.

New England Energy Alliance (www.newenglandenergyalliance.org)

New England's Electric Infrastructure: Breaking the Gridlock, Fall 2004 (prepared for background for NEEA's formation)

The network of power plants, electric transmission lines and natural gas pipelines - must be expanded. Given the long lead-time required for infrastructure development, the actions or inactions of today will determine whether the region will have a reliable electricity supply with stable prices, or a system that is increasingly vulnerable to sharp price fluctuations, congested delivery capacity and lack of fuel diversity. This paper describes the ever-tightening infrastructure gridlock in New England. Much-needed projects are being deferred, cancelled or rejected by regulators and the public. In totality, this is putting both the region's electricity grid and economy at increasing risk - and the window of opportunity for breaking the gridlock is closing. ISO New England, the Northeast Gas Association, the Federal Energy Regulatory Commission and the Massachusetts Governor's Task Force on Electric Reliability have all concluded that broad infrastructure development is needed to maintain the region's electric grid reliability in three key areas: transmission, generating capacity and natural gas delivery capacity.