Holyoke utility imposes moratorium on new gas service, citing pipeline constraints

The municipal utility serving the town that hosts the headquarters for the operator of the regional electric grid has informed its customers that the utility “is unable to accommodate new natural gas service requests due to the lack of natural gas availability in the region.” Holyoke Gas & Electric adds, “Recent proposals that would increase natural gas capacity in the region have been met with opposition, and the current pipeline constraints are causing significant adverse environmental and economic impacts on the region's ratepayers."

Holyoke Gas & Electric is a consumer-owned municipal utility established in 1902 through the purchase of a gas and electric plant from the Holyoke Water Power Company. According to the utility, the town saw ownership of a municipal utility "as a way to stabilize rates and keep local control over their energy services." As a municipal utility, Holyoke Gas & Electric is operated as a not-for-profit concern, and is owned by the community it serves. The utility cites public power advantages from this structure including operating in the local public interest, with local control over rates and services, local ownership, and reliance on local employees. In 1999, the utility acquired the Holyoke Dam, the city's canal system, and the remainder of the Holyoke Water Power Company's assets. The utility touts its ability to produce over 65% of its electricity needs from these renewable hydropower resources and cites "some of the lowest utility rates in New England."

Holyoke's Gas Division provides natural gas service through about 9,900 meters in Holyoke and Southampton. But on January 28, 2019, the utility gave its customers notice that it had placed a moratorium on most new natural gas service installations. According to that notice, the utility's natural gas customers are served by an interstate pipeline "which has become severely constrained due to a dramatic increase in demand over the last two decades," with "no corresponding increase in pipeline capacity to deliver additional supply to the region." As a result of significant growth in demand for natural gas by Holyoke's customers, HG&E said it is "forced to impose a moratorium on new natural gas connections until the capacity issue is addressed."

The utility further explained, "While inexpensive natural gas has never been more plentiful in the United States, there is insufficient pipeline capacity in our region to deliver additional load. Recent proposals that would increase natural gas capacity in the region have been met with opposition, and the current pipeline constraints are causing significant adverse environmental and economic impacts on the region's ratepayers." In its notice, the utility noted that due to the lack of natural gas during peak demand periods, "more electric generators are forced to switch to oil, while coal generators are called upon to operate, causing significant spikes in greenhouse gas emissions." Regional electric grid operator ISO New England, which is headquartered in Holyoke, reported that during a 15-day cold spell in January 2018, over two million barrels of oil were burned to generate electricity due to the lack of natural gas, more than the total amount of oil burned in 2017.

Beyond increased emissions, the utility also used ISO-NE data to show how "the lack of natural gas has a significant impact on energy costs throughout New England." Citing data from ISO-NE, the utility observed that during the two-week period from December 26, 2017 to January 8, 2018, electricity prices experienced an "approximately $700 million increase in energy costs for New England ratepayers compared to the prior year."

Holyoke Gas & Electric says it is working with gas utility Columbia Gas of Massachusetts to explore a solution involving system upgrades in other communities to "address local capacity issues, which will help reduce regional carbon emissions, improve reliability, and support local economic development." In the meantime, HG&E says its moratorium on new natural gas connections will remain in place "until the capacity issue is addressed."

NYPA announces Albany microgrid plans

The New York Power Authority has announced plans to develop a microgrid to supply steam and electricity to the Governor Nelson A. Rockefeller Empire State Plaza in Albany.

NYPA, officially known as the Power Authority of the State of New York, is a state-level public power organization, operating power plants and transmission lines.

On May 22, 2017, NYPA announced its plans to convert a former waste-recovery steam plant located in Albany into a site for two new 8-megawatt natural gas-fired turbine generators with dual fuel capability.  The generators will be able to supply local needs, or sell power into the wholesale market, with the microgrid capable of operating in sync with the main grid or as an independent "island."  According to NYPA, the "resilient power generation facility will enable government services to continue in an emergency while the Plaza can be used as an emergency shelter for Albany residents."  The project is expected to supply 90 percent of the power for the state office complex, to save more than $2.7 million in annual energy costs, and to avoid the annual emission of 25,600 tons of greenhouse gases. 

The New York State Office of General Services will finance the project, supported by $2.5 million from NYSERDA.  NYPA has issued a request for proposals by developers; proposals are due to NYPA on July 13, with awards expected this fall.

NY offshore wind zone announced

U.S. ocean energy regulators are advancing plans to lease sites off New York for potential commercial wind energy development.  The federal Bureau of Ocean Energy Management's designation of a Wind Energy Area could ultimately lead to the development of one or more offshore wind energy projects off Long Island.

While the U.S. still is not home to any operating commercial offshore wind projects, BOEM has issued 11 commercial wind energy leases off the Atlantic coast.  Leases awarded include two offshore New Jersey, two offshore Rhode Island-Massachusetts, another three offshore Massachusetts, one offshore Delaware, two offshore Maryland and one offshore Virginia.

In 2011, the New York Power Authority (NYPA) applied to BOEM for a commercial wind lease.  At that time, the public power authority proposed installing up to 194 wind turbines, each generating 3.6 megawatts, for a total project capacity of nearly 700 megawatts.

In January 2013, BOEM issued a Request for Interest to assess whether any other entities were parties interested in developing commercial wind facilities in the same area.  BOEM's review of the nominations of interest it received in response, including indications of interest from Fishermen’s Energy, LLC and Energy Management, Inc., led the agency to determine that there was competitive interest in the area.  As a result, BOEM initiated its competitive leasing process.

In 2014, BOEM published in the Federal Register a Call for Information and Nominations and a Notice of Intent to Prepare an Environmental Assessment, and has held stakeholder meetings.

The process took a step forward on March 16, 2016, when BOEM announced that it had completed the Area Identification process to delineate a Wind Energy Area (WEA) offshore New York. The wedge-shaped area covers approximately 127 square miles (81,130 acres, or 32,832 hectares), beginning about 11 nautical miles south of Long Beach, and extending about 26 nautical miles southeast along its longest portion.

Next steps in the offshore wind leasing process might include BOEM's publication of a Proposed Sale Notice for public comment, along with environmental assessment (EA) and agency consultations, followed by publication of a Final Sale Notice that announces the date, time, and specific conditions of the auction.  According to BOEM, its environmental review is expected to be completed later this year.

Alaska's Susitna hydro project revived

A large hydroelectric project proposed by Alaska's public power authority is moving closer to reality.  With over 600 megawatts of electric generating capacity, the Susitna-Watana Hydroelectric Project would be the largest dam built in the U.S. since 1966, when the Glen Canyon Dam was built on the Colorado River in Arizona.  If built, the Susitna project would represent a return to both mega-scale hydro and state-backed hydroelectric development in the United States.

The Susitna River project has been under consideration for nearly 50 years, although environmental concerns and the relatively low cost of oil dampened interest in the project for much of that time.  Increasing fossil fuel costs, renewable energy targets, and interest in exploiting the state's sovereign resources have now led to a revival of the project.  In 2011, Alaska state legislators unanimously approved funding for the Alaska Energy Authority to pursue the project.

The Alaska Energy Authority (AEA) was created by the Alaska Legislature as a public corporation of the state, albeit with a separate and independent legal existence.  AEA's missions include reducing the cost of electricity in Alaska, and constructing, acquiring, financing, and operating projects that utilize Alaska's natural resources to produce electricity and heat.

Renewed interest in the Susitna project comes partly in response to Alaska's renewable portfolio standard law.  In 2010, the Alaska Legislature enacted House Bill 306, creating a goal that the state receive 50% of its electric generation from renewable and alternative energy sources by 2025.  The project could also produce low-cost electricity, with generation costs projected to be lower than natural gas over the life of the project, possibly significantly lower once the project's financing is paid off.


AEA now plans to follow the traditional process for licensing hydroelectric projects through the Federal Energy Regulatory Commission.  AEA is expected to file its pre-application document with FERC on December 29, 2011, with the license review process expected to take up to six years.


If the Susitna project is built, it will be a departure from the recent trend of dam removal.  Some observers have argued that the era of building large-scale hydroelectric facilities in the United States ended decades ago, but the Susitna project could reverse that trend.  Moreover, the Susitna project would be built by a sovereign state government, echoing historic federal efforts like the Tennessee Valley Authority and Bonneville Power Authority.