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January 23, 2014

New England leaders craft regional power plan

The six New England governors are asking the region’s power grid operator to expand natural gas pipeline capacity by 20% in three years and to seek proposals for new electricity transmission lines connecting New England to southeastern Canada’s hydroelectric power producers.

The Portland Press Herald reported the governors are asking grid operator ISO-New England to seek federal approval for a natural gas pipeline expansion plan that would be supported partly by New England electricity customers. Thomas Welch, chairman of Maine’s Public Utilities Commission, told the paper that the plan represents “an unprecedented and remarkable approach” and reflects that the region is increasingly reliant on natural gas for power generation.

The paper reported a shortage of natural gas in the region on very cold days in 2013 drove up electricity prices 57% over the 2012 average.

Also through the plan, the governors will seek proposals for lines to transmit Canadian hydropower to New England, carrying from 1,200 megawatts to 3,600 megawatts of energy from “no and/or low carbon emission resources,” the paper reported.

The paper reported that the governors’ plan has support from some industry groups but is opposed by the Conservation Law Foundation, which said it prefers measures to increase energy efficiency, more renewable power and market reforms to lower gas prices. In a statement early Thursday, the Augusta-based Industrial Energy Consumer Group said it supports the plan but that it does not go far enough. The governors’ plan would increase daily natural gas capacity by 1 billion cubic feet. The IEGC calls for doubling that.

Separately, a transmission proposal called the Northern Pass in New Hampshire has been stalled over opposition to its route through the White Mountains.

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