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March 20, 2013

NE grid chief says more natural gas capacity needed

The head of New England's power grid told national leaders that a growing dependence on natural gas, combined with constraints on natural gas pipelines in the region, poses a threat to reliable electricity service.

The Associated Press reported that Gordon van Welie, CEO of ISO New England, told a U.S. House subcommittee that nearly half of the region's power comes from natural gas and about a third is from nuclear power.

That shows a shift in the last decade from more reliance on oil and coal, he said.

Power production from the lower-cost and lower-emission natural gas has provided economic and environmental benefits, van Welie said, but New England still pays more for natural gas — up to eight times more that other regions during a period in late January — because of an insufficient pipeline infrastructure to transport the gas.

Van Welie suggested to federal leaders that the estimated $7 billion regional savings in wholesale power costs from increased use of natural gas be used to expand infrastructure.

He also suggested that the region change payment incentives to allow compensation for entities that provide energy reserves when the system is under the most pressure.

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