NESCOE Selects Black & Veatch to Conduct Gas Supply Study


Dated: November 7, 2012

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NESCOE Selects Black & Veatch to Conduct New England Gas Supply Study

November 7, 2012 – The New England States Committee on Electricity (NESCOE) has selected Black & Veatch to analyze the current and future natural gas fuel supply in New England and to assist policymakers’ understanding of the future implications for naturalgas fired power generation in New England, power system reliability and consumer costs over the long-term. Black & Veatch is headquartered in Overland Park, Kansas and has a New England presence through its Massachusetts office.

Black & Veatch will assess and where warranted confirm various asserted risks associated with New England’s increasing dependence on natural gas-fired generation resources. The analysis will include the timing, significance and likelihood of adverse implications of that dependence for the electric power system. To the extent initial analysis confirms such risk and NESCOE desires further information, Black & Veatch will evaluate a range of future infrastructure development options and other potential solutions. The Gas Supply Study is thus intended to inform New England policymakers’ consideration of how best to address any validated problem, including by means that reflect the region’s preference for market-based approaches.

The initial phase of the study will summarize and verify – or challenge – conclusions in recent studies concerning the adequacy of the natural gas infrastructure to meet New England’s forecasted demand in the near future. Black & Veatch will conclude the initial phase in approximately one month. NESCOE will release the analysis when it is complete. After assessing the results of the initial phase, NESCOE may elect to pursue the next study phase. If NESCOE concludes that Black & Veatch should conduct the entire study, it is expected to take place over approximately seven months and conclude by mid-summer 2013.

NESCOE will make final study-related information available at NESCOE appreciates New England stakeholders’ interest in the study and offers of assistance in connection with data and other material to inform the study. NESCOE looks forward to continued discussions with market participants and others about the best means to address these issues. NESCOE’s objective, here as elsewhere, is to ensure that consumers have reliable electric service at the lowest cost over the long-term consistent with environmental quality.