Staff of the New Hampshire PUC has filed a report on utility ratepayer-funded expansion of New England pipeline capacity as a means of reducing wholesale electric supply spikes during the winter, and attendant higher default service rates.

From a legal perspective, Staff has concluded that the Commission may hold that New Hampshire EDCs have authority to enter into gas capacity contracts for the benefit of gas-fired generators, if such a proposal were to be made by a New Hampshire EDC.

As to specific projects, in brief, Staff views the Access Northeast and Northeast Energy Direct (NED) projects as two, "very cost-effective," projects that will moderate future winter electricity prices, "though the numbers clearly indicate that NED will provide the greatest benefits to regional electricity customers."

"Nonetheless, Staff’s principal recommendation in this report is that if the Commission chooses to participate in a regional procurement of gas capacity (whether pipeline or LNG) for the benefit of electricity consumers it should condition that participation on the procurement being conducted through an open and transparent process that is demonstrably competitive and results in the lowest possible cost to consumers," Staff said

Such competitive process does not include a traditional open season, as Staff raised concerns since most of the largest EDCs in New England are affiliated with the sponsors of one of the competing pipeline projects.

"[W]e believe it will be difficult if not impossible for EDCs to make a convincing case that pipeline open seasons qualify as fair, open and transparent competitive processes," Staff said, favoring instead an alternative competitive solicitation process (i.e., a Request for Proposals).

Link to Report

Tags:
New Hampshire   Natural Gas   Polar Vortex   Default Service   Pipeline Capacity  

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