Preparing the Grid for Another Cold Winter

For the second year in a row, the Federal Energy Regulatory Commission (FERC) granted permission to the Independent System Operator-New England (ISO-NE) to implement a Winter Reliability Program to help get the grid ready for winter. Among other things, the agreement allows ISO-NE to take measures to encourage electricity generators in the region to temporarily keep more oil supplies on hand.

ISO-NE identified several factors suggesting reliability might be an issue for the electric grid in New England during a cold winter:

1. Severe pipeline constraints – The pipelines that carry natural gas into the New England region struggle to keep up with increased demand, as more customers rely on natural gas for heat as well as power.
2. Difficulty replenishing oil inventories – Last year, gas prices rose because of these supply constraints. When gas became more expensive than oil, the region relied on oil generators more frequently, which resulted in depleted oil inventories.
3. Generator retirements – ISO-NE expects two large, non-gas-powered generators to retire before this winter, which may exacerbate difficulties caused by the reliance on natural gas and oil.

According to ISO-NE, last year’s agreement proved to be critical in keeping the lights on throughout a particularly cold winter season. For more information on ISO-NE, see OLR Report 2010-R-0387.