CONCORD — Three years ago, the governors of the New England states suggested that electricity customers could be called upon to pay for construction of a new natural gas pipeline or expansion of existing capacity in the six-state region.
The notion of getting electricity customers to pay for natural gas pipelines was so novel, and so controversial, that it took until last month for the state’s Public Utilities Commission to agree to even consider the idea. Now, Eversource and its partners have filed a petition with the PUC to make it a reality.
Opposition to the idea is strong in New Hampshire, where there are not a lot of natural gas customers, but everyone uses electricity. The state Legislature is currently considering a bill that would prohibit charges to electricity customers for natural gas pipelines.
The Office of Consumer Advocate in the PUC has advised against the idea, warning that ratepayers have a history of being stuck with long-term costs for big energy projects that far exceed initial expectations.
Nonetheless, the three commissioners ruled in mid-January that they would have to see the details of such a proposal before they could decide whether or not the idea is truly in the best interest of both electricity and natural gas customers.
Now the details are in hand, thanks to a petition filed by Eversource on Thursday, seeking PUC approval for a 20-year contract between Eversource and Algonquin Gas Transmission for guaranteed space on the Access Northeast project. Such contacts are necessary for pipeline projects to be built, since without them, builders cannot get financing or FERC approval.
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Pipeline Funding Put to the Test
by Dave Solomon, Union Leader