The top executive of one of the top energy suppliers in New England fears the region may not have enough power if a severe cold spell hits this winter.Eversource Energy CEO and president Joseph R. Nolan Jr. recently wrote a letter to President Joe Biden, asking for his administration’s help in swiftly addressing the growing concerns about winter electric reliability in New England.In his letter to Biden, Nolan said both the region’s electricity grid operator and the Federal Energy Regulatory Commission worry New England will not have enough natural gas to meet power needs during a stretch of bitterly cold weather. Nolan called the situation a serious public health and safety threat.“As both an energy company CEO and a lifelong New Englander, I am deeply concerned about the potentially severe impact a winter energy shortfall would have on the people and businesses of this region,” Nolan wrote.Nolan said Eversource has ramped up investments in clean energy resources, but noted that many of those projects will not be bringing power to the grid for several years.“I respectfully urge you, Mr. President, to employ the emergency powers of the federal government to take all steps to ensure that adequate fuel resources will be available in the event of severe weather conditions in New England this winter,” Nolan wrote.Nolan mentioned several emergency authorities the federal government has at its disposal, including the Federal Power Act, the Jones Act, the Natural Gas Policy Act, and the Defense Production Act as potential tools to help.A recent survey by the Department of Energy stated that supplies of diesel fuel and heating oil are 63% below the five-year average in New England. Heating oil disruptions would hit the region hard because the percentage of homes that rely on it ranges from 24% in Massachusetts to more than 60% in Maine, the most heavily dependent state.In his letter to Biden, Nolan stated the war in Ukraine has led to high electricity and gas costs, as well as global price pressures.Last month, Eversource said it plans to file proposed rate changes with the Department of Public Utilities around mid-November, for changes to take effect on Jan. 1. Last winter, the Eversource proposed increase was about 25%.National Grid, another major energy supplier for Massachusetts, said winter electricity rates taking effect on Nov. 1 will be sharply higher than they were last winter, citing the high price of natural gas used in generating the power.”In total, the monthly bill of a typical residential electric customer using 600 kWh (kilowatt-hours) will increase from $179 in the winter 2021-2022 season, to approximately $293 for the winter 2022-2023 season,” National Grid said.That’s a 64% increase year-over-year.The National Energy Assistance Directors Association says nationwide energy costs will be the highest in more than a decade this winter.The Energy Department projects heating bills will jump 28% this winter for those who rely on natural gas, used by nearly half of U.S. households for heat. Heating oil is projected to be 27% higher and electricity 10% higher, the agency said.That comes against inflation rates that accelerated last month with consumer prices growing 6.6%, the fastest such pace in four decades.The pain will be especially acute in New England, which is heavily reliant on heating oil to keep homes warm. It’s projected to cost more than $2,300 to heat a typical home with heating oil this winter, the energy department said.Last month, Congress added $1 billion in funding to Low Income Home Energy Assistance Program, bringing the total to at least $4.8 billion and making additional heating aid available for the start of the winter season.The third hottest summer on record already strained LIHEAP funding, “so I am glad that we were able to secure these new resources before the cold of winter sets in,” said Senate Appropriations Committee Chairman Patrick Leahy, a Democrat from Vermont.But that level represents an overall reduction from last year, when federal pandemic relief pushed the total energy assistance package past $8 billion.To help customers, National Grid announced a “Winter Customer Savings Initiative” that highlights energy-saving tips and payment assistance programs. Eversource also shared its link to energy efficiency programs.Massachusetts also offers LIHEAP, which helps eligible households pay a portion of their winter bills.Homeowners and renters whose household income do not exceed 60% of the estimated state median income — $81,561 in a four-person household in fiscal year 2023 — can apply for fuel assistance through the LIHEAP program.Last month, Gov. Charlie Baker called on more action from the federal government to address the pending energy crisis.”There are things we can do here, but the feds have a role to play and I would like to see them exercise it,” he said in a Sept. 26 interview with GBH’s “Boston Public Radio.”Baker was one of the six New England governors who reached out to the White House for energy aid in a letter to U.S. Energy Secretary Jennifer Granholm in July.Among other things, the letter called for the suspension of the Jones Act. The 1920 federal law makes it difficult for northern states to access domestically produced natural gas, even though the U.S. is one of the largest producers of the energy resource, by prohibiting the transportation of any cargo between U.S. ports unless the ship was built in the country and is owned by U.S. citizens.There are few liquid natural gas (LNG) tankers that comply with the Jones Act, making the cost to import LNG prohibitive. Baker mentioned on GBH that in 2018, when Massachusetts had a frigid winter and shortage of LNG, that they used Crimean natural gas on a French freighter parked in the Chelsea Creek to get Bay Staters through the winter.Days after Baker’s Sept. 26 interview, the Biden Administration announced it would temporarily waive the Jones Act to allow foreign diesel deliveries to Puerto Rico as it faced a dwindling supply of fuel nearly two weeks after Hurricane Fiona pummeled the U.S. territory.It is unclear if the Jones Act will be suspended for northern states or if other federal energy aid will be provided to New England.Information from The Associated Press and the State House News Service was used in this report.
The top executive of one of the top energy suppliers in New England fears the region may not have enough power if a severe cold spell hits this winter.
Eversource Energy CEO and president Joseph R. Nolan Jr. recently wrote a letter to President Joe Biden, asking for his administration’s help in swiftly addressing the growing concerns about winter electric reliability in New England.
In his letter to Biden, Nolan said both the region’s electricity grid operator and the Federal Energy Regulatory Commission worry New England will not have enough natural gas to meet power needs during a stretch of bitterly cold weather. Nolan called the situation a serious public health and safety threat.
“As both an energy company CEO and a lifelong New Englander, I am deeply concerned about the potentially severe impact a winter energy shortfall would have on the people and businesses of this region,” Nolan wrote.
Nolan said Eversource has ramped up investments in clean energy resources, but noted that many of those projects will not be bringing power to the grid for several years.
“I respectfully urge you, Mr. President, to employ the emergency powers of the federal government to take all steps to ensure that adequate fuel resources will be available in the event of severe weather conditions in New England this winter,” Nolan wrote.
Nolan mentioned several emergency authorities the federal government has at its disposal, including the Federal Power Act, the Jones Act, the Natural Gas Policy Act, and the Defense Production Act as potential tools to help.
A recent survey by the Department of Energy stated that supplies of diesel fuel and heating oil are 63% below the five-year average in New England. Heating oil disruptions would hit the region hard because the percentage of homes that rely on it ranges from 24% in Massachusetts to more than 60% in Maine, the most heavily dependent state.
In his letter to Biden, Nolan stated the war in Ukraine has led to high electricity and gas costs, as well as global price pressures.
Last month, Eversource said it plans to file proposed rate changes with the Department of Public Utilities around mid-November, for changes to take effect on Jan. 1. Last winter, the Eversource proposed increase was about 25%.
National Grid, another major energy supplier for Massachusetts, said winter electricity rates taking effect on Nov. 1 will be sharply higher than they were last winter, citing the high price of natural gas used in generating the power.
“In total, the monthly bill of a typical residential electric customer using 600 kWh (kilowatt-hours) will increase from $179 in the winter 2021-2022 season, to approximately $293 for the winter 2022-2023 season,” National Grid said.
That’s a 64% increase year-over-year.
The National Energy Assistance Directors Association says nationwide energy costs will be the highest in more than a decade this winter.
The Energy Department projects heating bills will jump 28% this winter for those who rely on natural gas, used by nearly half of U.S. households for heat. Heating oil is projected to be 27% higher and electricity 10% higher, the agency said.
That comes against inflation rates that accelerated last month with consumer prices growing 6.6%, the fastest such pace in four decades.
The pain will be especially acute in New England, which is heavily reliant on heating oil to keep homes warm. It’s projected to cost more than $2,300 to heat a typical home with heating oil this winter, the energy department said.
Last month, Congress added $1 billion in funding to Low Income Home Energy Assistance…
Read More:Eversource CEO fears New England might not have enough gas for bitter winter
2022-10-29 18:09:00
