Dec 6 (Reuters) – New England wholesale electricity prices in January could be over three times higher than peak rates elsewhere in the United States, the Energy Information Administration (EIA) said on Tuesday.
Prices in the region could peak as high as $215 per megawatt hour next month, the EIA said, adding it expects stronger-than-average liquefied natural gas (LNG) demand leading to its forecast of disproportionately large increases in rates.
This winter New England will need to import LNG or fuel oil to support electricity demand due to limited natural gas pipeline capacity, it added.
During long, cold winters, the U.S. Northeast consumes more oil and gas for heat than most of the country. This is especially true for the six-state New England region, which lacks enough gas pipeline capacity to meet all its heating and power generation needs on the coldest winter days.
