National Grid (NYSE: NGG) is joining Eversource Energy (NYSE: NU) Spectra Energy (NYSE: SE) and Spectra Energy Partners (NYSE: SEP) on Access Northeast as a co-developer, the companies said in a Feb. 18 release.
Access Northeast will upgrade existing pipeline facilities and market area storage assets in New England to deliver, on peak days, up to 1 billion cubic feet of natural gas for electric generation markets. The solution will minimize environmental and community impacts by maximizing use of existing pipeline and utility corridors and existing natural gas infrastructure.
Once Access Northeast is operational, it is projected to save electric customers an average of $1 billion a year during normal weather conditions and even more during severe cold weather, said Lee Olivier, executive vice president of Enterprise Energy Strategy & Business Development at Eversource, in a statement.
Access Northeast will enhance the Algonquin and Maritimes pipeline systems, which directly connect to about 60% of New England's gas-fired electric generation. The developers have formed an alliance with Iroquois Gas Transmission to enhance this already strategic footprint further, bringing the number of New England gas-fired generators served to more than 70%. Simply put, natural gas will get to the region's key, efficient power plants, along mostly existing pipeline and utility corridors.
The developers have executed Memoranda of Understanding with seven electric distribution companies to advance the project and seek all regulatory approvals in an effort to lower electricity costs:
- Eversource's four electric distribution companies in Massachusetts, Connecticut and New Hampshire; and
- National Grid's three electric distribution companies in Massachusetts and Rhode Island.
The Access Northeast developers will be identifying other electric distribution companies across the region wishing to participate.
The open season announced Feb. 18, with a May 1 closing date, will enable other potential customers, including local gas distribution companies, power generators and other parties, to request additional natural gas capacity as part of the project.
By June 30, Access Northeast expects to have definitive agreements with all parties interested in participating. The project has an anticipated in-service date of November 2018.
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