NESCOE (New England States Committee on Electricity) “a not-for-profit organization representing the collective interests of the six New England States on regional electricity matters. It is directed by Managers appointed by the six New England Governors and advances policies to provide electricity at the lowest possible price over the long term, while maintaining reliable electric service and environmental quality.”

Black & Veatch, Phase 1 Study prepared for NESCOE, “Natural Gas Infrastructure and Electric Generation: A Review of Issued Facing New England” (12.14.12)

• “In sum, given that New England is located at the terminus of the natural  gas supply infrastructure, relies on supplies from outside the region, and contains no underground storage capacity to provide supply flexibility, Black & Veatch expects the natural gas infrastructure serving the region will become increasingly stressed as regional demand for natural gas grows …” 

Black & Veatch, Phase 2 Study prepared for NESCOE, “New England Natural Gas Infrastructure and Electric Generation: Constraints and Solutions” (4.16.13)

• “This indicates that the current New England natural gas market balance is very tight, with small shocks to the system causing significant market impacts. … In the absence of incremental natural gas infrastructure, regional load growth from the electric sector will increase the likelihood of constraints.”
• “Black & Veatch believes that the following are the most appropriate primary solutions to alleviate the infrastructure constraints: incremental natural gas pipeline capacity, incremental LNG imports, and electric transmission that enables imports …”
• “The New England natural gas market experienced ever-increasing levels of supply constraints over the course of the past several winters, as evidenced by frequent and abrupt price increases. The most recent winter of 2012-2013 witnessed New England natural gas market basis exceeding $3.00/MMBtu on 78 days and even reaching above $30/MMBtu. The increased level of basis volatility is the market’s response to supply tightness.”

Black & Veatch, Phase 3 Study prepared for NESCOE, “Natural Gas Infrastructure and Electric Generation: Proposed Solutions for New England” (8.26.13)

• “Both in the Base Case and High Demand Scenario, New England could face significant reliability issues when natural gas-fired power generators are not able to dispatch as a result of the gas pipeline capacity constraints.”
• “Gas-supply requirements driven by episodes of extremely cold weather can be very costly and create significant reliability risks – they aggravate infrastructure deficiencies”
•  “Black & Veatch recommends that a combination of short-term (2014-2016) and long-term (2017 and later) solutions are necessary to address natural gas infrastructure deficiencies that place future reliability of electric-power generation at risk in New England. Based on the findings of this report under the Base Case and High Demand Scenario … Black & Veatch recommends the construction of a Cross-Regional Natural Gas Pipeline as a long-term solution. Through the construction of incremental pipeline capacity, this project has the potential relieve New England’s gas-electric reliability issues through at least 2029. As for short-term measures, Black & Veatch recommends a strategy that includes immediate deployment of dual-fuel generation, demand response measures and the seasonal purchase of LNG cargoes. Even after long-term solutions are in place, short-term solutions can be deployed to mitigate infrastructure constraints that occur from year-to-year and in specific New England sub-regions as a result of shifting demand loads and changes in area growth rates and weather.”