Excerpt of testimony by Gordon Van Welie, ISO New England CEO:
"This winter, New England did not experience record or sustained cold temperatures, or unusually high demand for electricity; however, wholesale electricity prices rose significantly during this period because of physical constraints moving the lowest-priced natural gas into New England. Natural gas prices in late January spiked to $34 per million British Thermal Unit ($/MMBtu), in contrast to prices below $4/MMBtu across most of the country. Wholesale electricity-energy prices in New England increased more than 100% in January and more than 300% in February compared to 2012.
"During that period, as well as during a significant winter storm in early February, ISO operators had to cope with multiple instances where generators (both gas- and oil-fired) could not get fuel to run. Our experiences this winter lead us to conclude that the status quo is not sustainable."
"This winter, New England did not experience record or sustained cold temperatures, or unusually high demand for electricity; however, wholesale electricity prices rose significantly during this period because of physical constraints moving the lowest-priced natural gas into New England. Natural gas prices in late January spiked to $34 per million British Thermal Unit ($/MMBtu), in contrast to prices below $4/MMBtu across most of the country. Wholesale electricity-energy prices in New England increased more than 100% in January and more than 300% in February compared to 2012.
"During that period, as well as during a significant winter storm in early February, ISO operators had to cope with multiple instances where generators (both gas- and oil-fired) could not get fuel to run. Our experiences this winter lead us to conclude that the status quo is not sustainable."
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