Regulatory Updates by Region

New England Pipeline Constraints Result in ISO Winter Reliability Plan and Added Costs for Consumers in the Region

In 2012, the New England energy market experienced serious reliability issues that resulted in extreme price volatility from late December 2012 through the end of February 2013. During this timeframe, day-ahead and real-time prices moved from the $30/MWh range up to $501+/MWh for certain time periods. This occurred as a result of the fact that New England is highly-dependent on natural gas for both heating and electricity generation and there are serious gas pipeline infrastructure constraints in the region. With less gas flowing to the region and less natural gas imports from Canada, when temperatures drop and demand increases, price volatility follows.

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