WASHINGTON, DC – A bipartisan group of U.S. Senators from New England are urging the Federal Energy Regulatory Commission (FERC) to conduct a thorough but expeditious review of a proposal to expand natural gas pipeline capacity in New England.  Citing the limited capacity of existing natural gas pipelines and the resulting volatility of energy prices, Senators Jack Reed (D-RI) and Sheldon Whitehouse (D-RI), along with Senators Angus King (I-ME), Kelly Ayotte (R-NH), Chris Murphy (D-CT), Susan Collins (R-ME), Richard Blumenthal (D-CT), and Jeanne Shaheen (D-NH), said proposals to expand infrastructure should be closely reviewed to gauge their effectiveness in helping to address New England’s energy challenges.

“As the Commission has noted, the New England market is particularly at risk for service disruptions, which threaten reliability and result in more volatile natural gas and electric power prices during periods of high demand,” the Senators wrote in their letter. “A lack of natural gas pipeline capacity has already severely impacted homes and businesses in our region. It has also reduced New England’s competitiveness, domestically and abroad.”

They later continued, “The combination of high demand for natural gas to meet heating and electricity needs, and the significantly constrained pipeline capacity into the region, has driven up natural gas and wholesale electricity prices, threatening reliability and impacting consumers and businesses within our states. We urge you to conduct a thorough and expeditious review of Algonquin’s AIM expansion application, and other natural gas pipeline proposals that may come before FERC, in order to assess whether they will help bring relief to New England consumers from high and volatile natural gas prices.”

The proposed Algonquin Incremental Market (AIM) natural gas transmission expansion project would expand the Algonquin Gas Transmission’s existing natural gas system that runs from New York to Massachusetts and add horsepower to increase natural gas compression along the route.

The text of the letter is below:

April 10, 2014

 

The Honorable Cheryl LaFleur

Acting Chair

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

RE: CP14 - 96 Algonquin Gas Transmission AIM Expansion Project


Dear Acting Chair LaFleur:

We write regarding the proposed Algonquin Incremental Market (AIM) natural gas transmission expansion project in New England. The AIM project proposes to install new sections of pipeline and additional horsepower for increased natural gas compression along Algonquin Gas Transmission’s (Algonquin) existing natural gas system from New York to Massachusetts. We understand this infrastructure project, if approved, would provide 342,000 dekatherms per day of new capacity into New England. Given the region’s increasing dependence on natural gas for electric generation, coupled with limited pipeline capacity and increasing demand, we believe it is imperative that FERC conduct a thorough and expeditious review of proposed pipeline projects such as Algonquin’s AIM expansion to gauge their effectiveness in helping to address New England’s energy challenges.

As you know, the New England states rely heavily on natural gas for electric generation and residential heating. While the predominance of natural gas for electric generation has resulted in our region’s electric supply being one of the cleanest in the nation, New England’s energy infrastructure has not kept pace as the region’s electric and natural gas systems have become increasingly interdependent.

As the Commission has noted, the New England market is particularly at risk for service disruptions, which threaten reliability and result in more volatile natural gas and electric power prices during periods of high demand. A lack of natural gas pipeline capacity has already severely impacted homes and businesses in our region. It has also reduced New England’s competitiveness, domestically and abroad.

Despite the abundance of domestic natural gas resources and low natural gas prices elsewhere in the United States, New England has not received the same benefit as other regions. The combination of high demand for natural gas to meet heating and electricity needs, and the significantly constrained pipeline capacity into the region, has driven up natural gas and wholesale electricity prices, threatening reliability and impacting consumers and businesses within our states.

We urge you to conduct a thorough and expeditious review of Algonquin’s AIM expansion application, and other natural gas pipeline proposals that may come before FERC, in order to assess whether they will help bring relief to New England consumers from high and volatile natural gas prices.

Sincerely,

Reed

Whitehouse

King

Ayotte

Murphy

Collins

Blumenthal

Shaheen