MA Utilities Release New Rates

NSTAR 

Fixed electric rates per kWh (all through June 30, 2014): 

Small Commercial and Industrial: $0.09006

NEMA Large Commercial and Industrial: $0.08669

SEMA Large Commercial and Industrial: $0.07945 

Variable electric rates per kWh: 

Small Commercial and Industrial:

$0.07087 for April

$0.06703 for May

$0.07245 for June 

NEMA Large Commercial and Industrial

$0.08937 for April

$0.07836 for May

$0.09198 for June 

SEMA Large Commercial and Industrial

$0.08271 for April

$0.07172 for May

$0.08397 for June

NGRID 

Fixed electric rates per kWh 

Small General:

$0.09448 through April

$0.07758 (proposed) for May through October 

Medium and Large General 

SEMA:

$0.10982 through April

$0.09264 for May through July 

WCMA:

$0.11403 through April

$0.09149 for May through July 

NEMA:

$0.11611 through April

$0.09218 for May through July 

Variable electric rates per kWh 

Small General:

$0.07169 for April

$0.07114 for May

$0.08269 for June

$0.08578 for July

$0.08082 for August (proposed)

$0.07143 for September (proposed)

$0.07300 for October (proposed) 

SEMA:

$0.07146 for April

$0.08034 for May (proposed)

$0.09970 for June (proposed)

$0.09754 for July (proposed) 

WCMA:

$0.07628 for April

$0.07803 for May (proposed)

$0.09856 for June (proposed)

$0.09748 for July (proposed) 

NEMA:

$0.07838 for April

$0.07873 for May (proposed)

$0.09963 for June (proposed)

$0.09779 for July (proposed)

Natural Gas 

NSTAR Cost of Gas for March: $5.631 per Dth

NGRID Cost of Gas Adjustment for March (per Dth):

Boston Gas: $8.335

Colonial: $8.300 

Winter Cold Causes Volatile Natural Gas Market in Midwest

Seven states in the Midwest (Iowa, Illinois, Indiana, Michigan, Minnesota, Missouri, and Wisconsin) experienced an extremely cold winter, with some cities in these states suffering their coldest winter ever, according to the National Oceanic and Atmospheric Administration (NOAA). Additionally, some areas in the Midwest set records for the number of days below zero degrees Fahrenheit. For the month of February, the weather in the U.S. was 10.9 colder than last year and 13 percent colder than normal. The freezing cold weather had a substantial effect on natural gas storage. In its weekly reports throughout the winter, the Energy Information Administration (EIA) detailed the increasing reduction in natural gas stocks. On March 31, 2014, it released its monthly natural gas report, with data for January 2014. The year in 2013 set records for dry gas production [24,280 billion cubic feet (Bcf)], total consumption (26,034 Bcf), and deliveries to commercial consumers. Deliveries to residential and industrial customers were at their highest since 2003. In December 2013, monthly dry natural gas production reached what was a record high of 2,092 (Bcf) and total consumption of 2,912 Bcf. In January 2014, both of these record highs were broken; dry natural gas production reached a new record of 2,098 Bcf, and total consumption reached 3,219 Bcf.

The cold temperatures tightened demand, and some utilities in the Midwest put constraints on industrial customers and asked residential customers to turn down their thermostats to maintain system stability. Xcel, for example, reportedly asked almost 850 commercial customers in various Midwest states to lower their gas usage. Additionally, utilities in Minnesota, Wisconsin, and North Dakota (three states that saw some of the worst of the cold) asked customers to cut back on natural gas usage in response to a pipeline explosion south of Winnipeg, Manitoba that ruptured a TransCanada pipeline on January 25, 2014, in addition to two others that collectively disrupted the main supply of natural gas to some of these areas.

The U.S. also set a record on January 7, 2014 for peak day natural gas consumption of 139 Bcf, 33 percent higher than the five-year average consumption volume of 104.6 Bcf. In January, the U.S. experienced the largest withdrawal of natural gas stocks for a month (966 Bcf), substantially more than the previous record (847 Bcf in January 2003). A chart below illustrates the staggering storage withdrawals over the past four months:

Date	Lower 48 States	Eastern Consuming Region	Western Consuming Region	Weekly Producing Region
Nov 08, 2013	3834	1984	553	1297
Nov 15, 2013	3789	1953	552	1284
Nov 22, 2013	3776	1939	546	1291
Nov 29, 2013	3614	1861	530	1223
Dec 06, 2013	3533	1815	504	1214
Dec 13, 2013	3248	1683	450	1115
Dec 20, 2013	3071	1568	429	1074
Dec 27, 2013	2974	1501	412	1061
Jan 03, 2014	2817	1403	395	1019
Jan 10, 2014	2530	1254	364	912
Jan 17, 2014	2423	1187	349	887
Jan 24, 2014	2185	1063	327	795
Jan 31, 2014	1923	920	301	702
Feb 07, 2014	1693	814	259	620
Feb 14, 2014	1443	685	229	529
Feb 21, 2014	1348	607	217	524
Feb 28, 2014	1196	525	190	481
Mar 07, 2014	1001	430	169	402
Mar 14, 2014	953	395	167	391
Mar 21, 2014	896	356	164	376

The EIA correctly predicted that U.S. natural gas supplies would fall to an 11-year low at the end of the winter heating season in March. The March 21 level (896 Bcf) was the lowest supplies level since May 2003. The cold temperatures and decreasing gas supplies caused natural gas prices to be exceptionally high this past winter. For example, the February index price at Alliance Interstates, a major supply source for Midwest customers, averaged a whopping $13.99 per dekatherm (Dth). In Michigan, intraday highs in February exceeded $40 per Dth. Daily city-gate prices for Chicago in February ranged from $6.12 to $28.87 per Dth. Hopefully spring will bring back stability to the natural gas market that the winter lacked. 

Three-Year Efficiency Program in MA a Success

This past December, the Massachusetts Energy and Environmental Affairs (EEA) released the results of the Commonwealth’s three-year energy efficiency plan (2010-2012). According to Rick Sullivan, the EEA’s secretary, efficiency improvements on a homeowner, business, and government agency basis yielded dramatic electric, natural gas, and greenhouse gas emissions reductions. Massachusetts invested more in energy efficiency per capita than any other state, and the resources paid off. The Patrick Administration program, approved by the Department of Public Utilities in 2010, produced 2,390 GWh, 49 million therms, and 1.4 million metric tons of energy savings and greenhouse gas reductions.

Per the Energy and Environmental Affairs, these reductions are equivalent to taking approximately 290,000 cars off the road (in greenhouse gas reduction terms), the annual electricity consumption of 314,000 homes, and the natural gas usage of 52,000 homes. Even more positive, the plan was most effective in 2012.

The success of three-year plan is a large reason why the American Council for an Energy-Efficiency Economy (ACEEE) ranked Massachusetts as number one in the Statewide Energy Efficiency Scorecard for 2011, 2012, and 2013, including naming Boston the most energy-efficient city in the country in September 2013. The state is continuing its dedication to maintaining a high level of energy efficiency and improving its current level. The plans for 2013-2015 are projected to deliver nearly $9 billion in benefits from a $2.2 billion investment. The Patrick Administration’s efforts have also improved the job market in Massachusetts; almost 80,000 people are employed in the clean tech industry in the Commonwealth. 

Environmental Organization Criticizes NE Governors, Makes Public Records Requests

The Conservation Law Foundation, a Boston-based environmental group, contends that New England governors have carried out energy policy privately. The organization has put forth public records requests in the hopes that such documents will help do away with the so-called tight-lipped dealings and provide more transparency (which, in the CLF’s mind, would result in more environmentally friendly projects and lower costs) for energy policy in the six states.

Some assert that openness has been more prevalent since the New England governors all signed a December 5, 2013 statement pledging to construct hundreds of miles of new transmission lines and pipelines to help lower electricity and natural gas prices. The idea behind the statement is that ISO-NE, the New England Power Pool (NEPOOL), and the New England States Committee on Electricity (NESCOE) could help governors to collectively create a long-term solution to ensure that enough supply of natural gas for power generation and enough new transmission to import electricity to areas of high demand. Supporters of the governors also note that the governors did publish a request to ISO-NE for assistance in a region that is overly dependent on natural gas and one that experienced a steep increase in electric and natural gas prices this past winter. The surge in prices this winter is certainly reason to improve efficiency and lower costs where available.

The region’s overreliance of natural gas is a point of criticism for the governors. While natural gas is less expensive than heating oil, but environmentalists, including the CLF, have criticized the method of extracting it, fracking. The group thinks the governors’ behavior implies they assume a new pipeline is necessary and must be paid for by customers. The CLF disagrees with this supposed assumption and at the very least wants it tested in public. 

Is a Potential El Niño Good News for the U.S.?

The Climate Prediction Center/NCEP/NWS and the International Research Institute for Climate and Society reported on March 6, 2014 that El Niño-Southern Oscillation (ENSO), which refers to temperatures variations in the tropical eastern Pacific Ocean area is expected to continue in its neutral phase through the Northern Hemisphere during the spring of 2014, and that there is an approximately 50 percent chance of El Niño developing during the summer or fall. El Niño is characterized by atypically warm temperatures and occurs once every three to seven years. An El Niño event would likely yield a weaker hurricane season for the U.S. east coast and the gulf coast because the hurricane season would be overshadowed by the stronger competition (in the form of El Niño). It could also provide benefits on the west coast. California is suffering from a crippling drought and El Niño in the winter typically brings much wetter conditions for the west coast of the U.S. Since El Niño warms up the atmosphere on a whole, experts say that it could cause a small global warming phenomenon, which may be welcome to those in the Midwest and Northeast that experienced frigid temperatures this winter. Of course, a strong El Niño could also bring near record-breaking temperatures in 2015 on a global scale. Although people in the U.S. might rejoice at the sign of El Niño, people in other areas of the world may not be as thrilled; for example, monsoons in India and droughts in Australia might result.