Spectra looks to local distribution companies to utilize Access Northeast
NEW ENGLAND—Spectra Energy is hoping to contract with local distribution companies in the Northeast as it rethinks its proposal to build the Access Northeast pipeline.
The pipeline was originally designed primarily to carry natural gas to electric generation companies in the New England states, where cold winters can sometimes stretch the demand for power. Massachusetts, New Hampshire and Connecticut, however, have prevented companies from contracting for natural gas pipeline and passing costs on to ratepayers. As a result, Spectra is now considering adding local distribution companies to its customer mix.
“Whether we work to deliver this infrastructure to electric distribution companies or through more conventional means with gas local distribution companies, we remain committed to finding a solution for more reliable and affordable energy to benefit consumers and to meet each state’s energy and environmental goals and policies,” Spectra Director of Stakeholder Outreach Arthur Diestel told American Gas.
Access Northeast had support from New England governors and other stakeholders but ran into roadblocks through recent court rulings, he said. The potential reconfiguration to include local distribution companies will likely affect the project timeline, with initial facilities placed into service in 2019.
Diestel said the project would improve reliability and save customers an average of $1 billion a year in energy costs during a normal winter. About 95 percent of the proposed project would use existing pipeline and utility corridors, he said.
ISO-New England, which operates the electric grid, has said the region’s pipeline capacity is constrained even when demand from natural gas-fired generators is relatively low. It might be unsustainable after 2019 during extreme cold conditions.
Access Northeast is designed to upgrade the existing Algonquin system and add regional liquefied natural gas storage in New England. Spectra has been partnering with Eversource Energy and National Grid on the project. “We, along with our partners, remain committed to serving New England’s consumers, achieving regional consensus on how to pay for this critically needed project and being part of the solution,” Diestel said.