From MasterResource
By Steve Goreham — May 30, 2023
“New England home heating and electricity prices are on the rise with no end in sight. Consumers paid record high energy bills last winter, even though the winter was not unusually cold. Shortages of natural gas and green energy policies will drive New England prices higher and raise the chance of electricity blackouts.”
Residential energy bills in New England this year were the highest in history. The combination of electricity and natural gas heating bills exceeded $1,000 per month for an average-sized house in Massachusetts, even though winter temperatures in New England were warmer than average.
Eighty percent of homes in New England, which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, heat with fuels from oil and gas. The hydrocarbon fuel share of home heating is natural gas (39%), fuel oil and kerosene (33%), and propane or liquid petroleum gas (8%). Homes also use electricity (16%) and other sources (4%) for heat.
Natural gas is also the leading fuel for generation of electricity. New England power comes from natural gas (43%), nuclear (21%), imports (17%), hydroelectric (6%), renewables (12%), and other generators (1%). But New England residents now pay higher prices for natural gas than the rest of the nation and gas prices are rapidly rising.
For the last decade, the State of New York blocked the construction of natural gas pipelines as part of efforts to decarbonize. For example, the Constitution Pipeline project was cancelled in 2019 after an eight-year battle. Plans called for the pipeline to connect natural gas fields in Pennsylvania to the gas network in Schoharie County, just west of Albany, New York. Because New York is blocking pipeline delivery, New England is forced to import liquified natural gas (LNG) for home and electrical power generation.
New Englanders now pay more than twice the price for natural gas than most other US residents pay, and that gap is growing. During peak periods, the Citigate Massachusetts price for gas now rises to more than $10 per million BTU, much higher than the US average Henry Hub typical price of $3-4 per million BTU. Because pipeline capacity is low, New England must import up to 30 percent of its gas by LNG tanker and pay high world market prices. During the recent global energy crisis, Massachusetts was paying $40-$50 per million BTU for imported LNG.
New England electricity prices are also among the highest in the nation. In 2022, power prices for all six of the New England states were over 20 cents per kilowatt-hour, and all in the top ten for state electricity prices. Massachusetts residential customers paid 26.1 cents per kW-hr, surpassed only by prices in Hawaii and California.
The risk of electricity blackouts in New England is rising. The Interstate Natural Gas Association of America sent a letter to President Joe Biden last November, warning that the region “does not have sufficient pipeline infrastructure” and is “at risk of an energy shortfall.” ISO New England, the non-profit organization responsible for reliable electricity in New England, wrote a similar warning letter to Energy Secretary Jennifer Granholm last summer, stating, “during the coldest days of the year, New England does not have sufficient infrastructure to meet the region’s demand for natural gas for both home heating and power generation.” But government leaders and environmental groups oppose further expansion of natural gas infrastructure.
The Federal Energy Regulatory Commission and ISO New England have proposed a shift in LNG pricing to allow purchase and stockpiling of natural gas in New England to prevent a winter fuel shortage. This price shift would raise consumer prices and is opposed by New England states and environmental groups. The pipeline capacity shortage and inadequate gas stockpiles have set the stage for electricity blackouts in the region during the next severe winter.
New England state governments remain committed to construction of offshore wind turbines and providing incentives for electric heat pumps as part of a misguided effort to fight climate change. But these programs, if completed, will not make the grid more reliable and will further boost energy costs.
New England homeowners, better get yourself a backup electric generator and prepare for further rises in home heating and electricity prices.
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Steve Goreham is a speaker on energy, the environment, and public policy and an author of three books on energy, sustainable development, and climate change.
Success!! /sarc
Way to go RGGI in destabilizing the region.
Welcome | RGGI, Inc.
WHERE is the Vermont Yankee NPP when its needed? OH YEAH – it wasn’t economical just a few years back given conditions at the time so it was retired. What a difference a few years makes in the ‘economic climate’. Does no one “look ahead” to the future anymore?
Smart money is always looking ahead. Just that it’s down in Texas scooping up at present-
Texas battery rush: Oil state’s power woes fuel energy storage boom (msn.com)
All in good time if there’s good scooping up to be had in New England in future.
AND, remember that old axiom from the commodities markets: “The cure for high prices is, high prices.” This should be recognized from econ 101 classes in which students learn that market prices are eventually set by developing more supply and WRT prices customers will pay on the demand side. Your article addresses this too in this pull quote:
Miller said he expects ancillary market prices to “collapse” as more battery storage comes online.
“…Miller said he expects ancillary market prices to “collapse” as more battery storage comes online…”
…and Larry says, “That’s funny right there. I don’t care who you are…”
“Does no one “look ahead” to the future anymore?”
What a silly question.
You’re missing your “/sarc’ tag.
“Save Vermont Yankee. If not you, who? If not now, when?”
https://www.ans.org/news/article-1564/save-vermont-yankee-if-not-you-who-if-not-now-when/
Prices will have to be about 3 or 4 times their present level before re-evaluation occurs. Too many people are planning on getting rich off the climate scare by investing in lithium, copper, electric utilities, Tesla, nuclear…like career climate scientists, why would these investors go out on a limb and say “really, there is no problem, I’m just saying there is for the cash flow.” ?
Yes, they are doing a great job for the moving van industry, southern states economic development, and southern realty companies. Unlearned lessons are the gift that keep on giving.
Backup generators use natural gas, propane, diesel, or gas (petrol).
How before those are outlawed?
I suppose small hydroelectric generators will be allowed for awhile, but those are very dependent on local topology and land.
When fossil fueled generators are outlawed, only outlaws will have working generators! Sorry, I couldn’t resist….that old saying just popped into my head.
The word “unenforceable” does seem warranted.
I don’t think my State will outlaw generators.
I think generator companies would probably make a good investment right now. I expect business is booming. I plan on getting one in the near future.
Look for the next EPA move on water.
I’m planning on installing a 12kW standby generator this summer. It runs on propane and will cost about $12K. A lot of people around here have them, we also have a wood stove.and more than a few firearms… They ain’t going away.
you just can’t fix stupid
They can thank Andrew Cuomo, and his anti-fracking obsession leading to his also blocking pipelines.
ironic that Andrew got caught fracking a $5,000/hr whore
Yes, it’s all self-inflicted. The voters elected these fools.
You can also blame Cynthia Nixon, resident Eco-Nazi who was running against Cuomo and threatening Cuomo’s re-election campaign until he caved to the Climate Fascist bullshit.
Voting Democrat is rather like patronizing a BDSM purveyor. One does know what one is getting.
But without a safe word, Tom.
Some of them heard ” The stupid ; it burns ”
and said ” That’s it ! Thats how we can stay warm ! ”
😉
America is just catching up with Germany.
Germany was the first country to go “green” and now has the highest cost of electricity in the world.
America wants to be #1, so look for electricity rates to continue to spiral upward!
re: “America wants to be #”
A scientifically illiterate cadre of folks belonging mostly to one party, having been pummeled with propaganda for a couple decades now, are the ones pushing and prodding and shouting for this nonsense to become national govt policy; the vast majority of Americans are unawares of the small vocal minority’s out-sized abuility to a) be seen/heard and b) enact this nutty policy as public law.
And most of the “scientifically illiterate cadre of folks” live in New England or California. Look at the map (above) for the consequences.
“…for whatsoever a man soweth, that shall he also reap.”
Where is Grande Baleine hydro dam in northern Quebec? It was proposed in the 1980s for power supply to NEPOOL and NYPA. Its availability would have reduced greatly the need for gas-fired generation in both areas. But they chose to listen to a lot of First Nations protesters along with John Kennedy Jr. posing as an environmentalist.
I have no sympathy with the elitists in New England. They chose this shortage deliberately when they had other options. So, freeze or move.
Resources located in another nation belong to that nation, especially if “they need it”. Even if its Canada. Even if you’re in MA and the wires run through NY.
‘For the last decade, the State of New York blocked the construction of natural gas pipelines as part of efforts to decarbonize.’
My interpretation of the ‘commerce clause’ in the US Constitution has always been that the states were precluded from imposing tariffs on imports from other states or erecting robber-baron forts along rivers to extract tolls, etc. In that light, would it not be obligatory on the Feds to strike down NY’s ban on new gas pipelines? Of course, pressure on the Feds to do so would obviously require the NE states to get over their own opposition to fossil fuels…
that’s the problem, New England is heading for net zero nirvana
That’s a good question.
That would require the Feds being reasonable long enough to override New York. The Democrats tend to be like the New York greens, and will back obstructionism by states.
‘New England electricity prices are also among the highest in the nation. In 2022, power prices for all six of the New England states were over 20 cents per kilowatt-hour, and all in the top ten for state electricity prices.’
I assume these prices include ‘wire’ charges, i.e., T&D, in addition to other surcharges larded into customer bills at the behest of the progressives who control NE’s public utility commissions. It would be interesting to see the ‘energy only’ component by state to get a real indication of the effect of climate craziness.
I’m in a Public Utility District (PUD) in central Washington State. There is a “Facility Charge” of $25.50 per month. The minimum charge per month is $30.50. These charges pay for the operation of the District, wages, equipment, and all that stuff.
The electrons are purchased via the Bonniville Power Administration (BPA) and listed as “Energy Delivered” at $0.0982 per kwh. I suspect this last number equates to those of the multi-colored map in the post.
You’re lucky to have abundant hydro – just think how low your rates would be if much of it wasn’t exported to CA. Re. my question on the graphic, for 2022 it shows an average price in CT of $0.2481. However, I know back then that my ‘energy only’ SOS change was a tad over $0.12. So the difference looks like wire and other charges, hence my question.
Washington exports STEADY, low-cost hydro to California, which creates a shortage in Washington, that is made up with high-cost, subsidized wind electricity, that could not be fed into the grid without the hydro plants counteracting the variable wind output, by varying the water flow through the hydro turbines
It seems to me that most of these quoted cost figures are minus all the fixed charges, fees, taxes, etc. I know that my electricity bill, which of course varies by season and even by month, based on total I must pay, calculates to almost 3X the nominal cost per kwh some months.
I live in Vermont.
I confirm, the cost number in the graph is the all-in total cost on the monthly bill divided by the monthly kWh consumed
“”New England state governments remain committed to construction of offshore wind “”
Better get a move on then…. Never mind the environmental impacts
SaveKill the Whales!The government NOAA gave developers permission to make artillery-loud noises 140 dbA or higher, that totally destroys the delicate hearing of whales.
As a result they cannot hear/see other whales, ships and shores, and cannot find food.
Those whales are totally screwed .
They’re just getting what they voted for! On a political map they would all be Blue states.
Those whales did not vote
“The Federal Energy Regulatory Commission and ISO New England have proposed a shift in LNG pricing”
Implication – a federal government appointed commission wants to control prices.
A pretty standard MO is that government gets control by allowing private companies to make more money at public expense (while claiming they are functioning for public benefit), thus the companies willingly give up control for higher immediate profits. Once established, government can’t be cut out of the equation until the whole industry is entirely outdated, such as New York’s Livery taxes on horse barns. From servant to sovereign, like condo association managers.
From the article: “Residential energy bills in New England this year were the highest in history. The combination of electricity and natural gas heating bills exceeded $1,000 per month for an average-sized house in Massachusetts, even though winter temperatures in New England were warmer than average.”
Damn! And here I was thinking my energy bill was too high compared to the past. I’m counting my blessings now.
I’m afraid it’s the same story on old England. Failed, stupid policies.
Massachusetts and Vermont – Have they broken your will yet?
Video Massachusetts Climate Official: “People on Fixed Income … We Have to Break Your Will” – Watts Up With That?
IN the category of “Know the Players” –
Saikat Chakrabarti –
o Political advisor and software engineer.
o Was formerly chief of staff to Alexandria Ocasio-Cortez, the U.S. representative from New York’s 14th congressional district representing portions of The Bronx and Queens in New York City.
o On August 2, 2019, he left Ocasio-Cortez’s office to run New Consensus, a group promoting the Green New Deal.
He is an all-around whore?
Pretty much: https://www.influencewatch.org/person/saikat-chakrabarti/
And Saikat Chakrabarti is a “big, tough ‘energy’ guy”:
https://twitter.com/saikatc/status/1331288895447654402?cxt=HHwWhICjqc2M2PkkAAAA
“I wrote about how Biden can lead a multi-trillion dollar rebuilding project for America, building the industries of the future and creating high-wage jobs in every congressional district in the country–even without Dem control of the Senate.”
Note: The article is in the commie rag “The Nation”: https://www.thenation.com/article/economy/biden-build-better-senate/
AND, it contains the usual bullcrap:
I’m glad it’s high, I think it should be even higher and no subsidies to pay your power bill.
New England’s electricity rates are now higher than every state except Hawaii as of March 2023. See the attached graphic. They went up about 30% in the last 12 months.
That looks like a hockey stick 🙂
“New England’s electricity rates are now higher than every state except Hawaii as of March 2023.”
So when are the people of New England going to start complaining about it? It looks to me like street demonstrations are called for to get the politicians attention. Or will the people just sit there silently and go broke?