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TENNESSEE GAS PIPELINE FILES COMMENTS WITH THE MASSACHUSETTS DPU Tennessee Gas Pipeline, a Kinder Morgan company, has submitted a filing with the Massachusetts Department of Public Utilities supporting the DPU's examina- tion into the means by which new natural gas supply capacity may be added to the New England market, including providing a regulatory mechanism for Massachusetts electric distribution companies to contract for additional natural gas pipeline capacity to help reduce natural gas and electricity prices in Massachusetts. In its June 15 DPU filing, TGP noted that Massachusetts and New England are consistently experiencing the highest natural gas and electricity prices in the continental United States, which can be significantly reduced through contracting for and build- ing additional natural gas pipeline capacity to service the region. "The existing shortage of pipeline capacity to serve the demand from the electric generation sector, particu- larly during the winter, leads to significantly higher regional natural gas prices and, in turn, higher regional electricity prices," said Kimberly S. Watson, president, Kinder Morgan East Region Natural Gas Pipelines. O v e r t h e p a s t t w o w i n t e r s , N e w England's electricity plants have had to rely on needlessly high-priced natural gas, expensive imported LNG and costly fuel oil purchased on the spot market to meet demand due to insufficient natural gas pipe- line capacity serving the region. According to the independent electric grid operator ISO New England, this resulted in New Englanders paying over $7 billion more for electricity during the winters of 2013/14 and 2014/15 than what they paid for electric- ity during the winter of 2011/12. ISO New England has also noted that although total use of electricity in New England dropped 2% in 2014 compared to 2013, the average price of wholesale electricity rose 13% in 2014, with the increase largely due to the increase in the cost of power plant fuel, par- ticularly natural gas. "There is no doubt that the increasing cost of natural gas and electricity caused by the lack of adequate natural gas pipeline capacity makes it more costly for New England's businesses to com- pete with businesses operating in nearby lower energy cost regions, and is particularly painful for New England's working families, retirees and others living on fixed incomes," said Watson. She added, "The ability to bring additional low-cost, domestic, abun- dant and environmentally cleaner natural gas to Massachusetts and New England will lower and stabilize energy costs for gas and electric customers and help stimulate eco- nomic growth, providing the opportunity for the Commonwealth of Massachusetts to benefit similarly to other regions of the United States, where low-cost natural gas is transforming their economies by creating new jobs and cost savings for families, busi- nesses and public institutions." According to the TGP filing, increas- ing the natural gas supply capacity to New England will also have additional important benefits to Massachusetts and New England, such as: further reducing regional emissions of CO2, NOX, and SO2 by replacing higher emitting coal and oil-fired electricity gen- eration with new, cleaner natural gas-fired electricity generation, supporting growth of renewable generation technologies such as solar and wind by ensuring uninterrupted energy supply on cloudy or windless days, and providing the opportunity for addi- tional residences and businesses to convert from oil and other fuels for heating and manufacturing to natural gas, particularly in western Massachusetts and other areas which are currently dealing with morato- riums on new connections due to limited natural gas supply. A copy of the filing can be accessed at: http://www.kindermorgan.com/content/ docs/NED_TGP_Comments.pdf. FROM AEC: NATURAL GAS INDUSTRY MIGHT SLOW PRODUCTION U.S. energy companies are taking their foot off the natural gas pedal, slowing down their production growth after years of furious pumping, according to a recent blog post by the Wall Street Journal. The collapse in energy prices has pro- duces and analysts reconsidering natural gas production strategies, the Journal writes. "Gas prices have fallen about 40% in the past year, cutting the incentive to keep drill- ing, and recent forecasts suggest production will flatten and may begin to decline this year," the article states. "This price fall follows eight years of improvement in drilling techniques and high energy prices that have stoked gas www.fueloilnews.com | FUEL OIL NEWS | AUGUST 2015 3 DATELINE - pg 3 • Tennessee Gas Pipeline Files Comments with the Mass. DPU • From AEC: Natural Gas Industry Might Slow Production • PPA Joins Eastern Energy Expo • ATA: Report Shows Safety Progress Ongoing, More to be Done • Steve Dodge Promoted to Executive Director of API's Mass.Petroleum Council • NEFI Sulfur & Bioheat Requirements for Heating Oil in the Northeast & Mid-Atlantic States FUELS/EIA - pg 12 • Fuel Saves Lives! • Slipstream Premium Marine Fuel to Power 200-Foot SSV Oliver Hazard Perry • Gulf Fuel Retailing Returns to Canada through XTR Energy • EIndustry Veteran Milt Swenson Joins Westmor in New Sales Role • EIA: Hawaii and Vermont Set High Renewable Portfolio Standard Targets BUSINESS OPERATIONS - pg 22 • Cargasenergy.com: New Website Highlights Software and Mobile Technology • Shipley Energy Purchases Smart Click Energy, LLC • Survey: 86% of Energy Security Professionals Believe They Can Detect a Breach on Critical Systems in Less Than One Week • Energi Honored As Best Place to Work by Boston Business Journal HVAC/HYDRONICS - pg 41 • ASHRAE Installs New Officers, Directors • Webstone Sales Team Expands • ASHRAE, U.S. Department of Energy Renew Memorandum of Understanding • Aquamotion, Inc. Launched Its New Contractor Training and Certification Program on June 17 • United States Stove Company Acquires Newmac Manufacturing • ECR'S CEO to Lead Industry through 2017 Featured News DATELINE BREAKING NEWS