to a $ 750 million year-over-year increase in the wholesale energy market due to high natural gas and oil prices .
2013 – 2016 : A FOCUS ON SOLUTIONS
2015
President and CEO Gordon van Welie presents the ISO ’ s first State of the Grid report at a media briefing to identify and discuss issues affecting New England ’ s bulk power system . This and subsequent presentations , available on the ISO website , include numerous discussions of the importance of alleviating the region ’ s fuel constraints and investing in energy infrastructure .
2015
The U . S . Department of Energy ’ s Quadrennial Energy Review ( QER ) includes discussion of the ISO ’ s concerns over the lack of sufficient fuel supply infrastructure . The department ’ s 2017 QER echoes these same concerns .
2014
The New England states formally request ISO-NE support for a proposal to flow the “ cost of firm natural gas pipeline capacity ” through the ISO ’ s Transmission , Markets , and Services Tariff , recovering the cost of the additional capacity through regional network service rates . The ISO and New England Pool consider this approach ; however , the concept meets resistance within New England . This effort , combined with several unsuccessful proposals for natural gas infrastructure by private pipeline developers , initiates a highly visible regional conversation about fuel infrastructure and constraints in New England .
2014
In January , New England experiences difficult operational conditions , as well as extraordinarily high wholesale energy prices , due to severe cold weather from a polar vortex event . This is one of several winters in the previous decade when constrained fuel supply infrastructure resulted in both operational challenges and significant price volatility .
For the month of January 2014 , the energy market value in New England reaches $ 2.2 billion and the average price of natural gas exceeds $ 24 per million British thermal units ( MMBtu ). In the seven Januarys that follow , market values and natural gas prices average less than 30 % of these 2014 figures .
2014
The ISO changes its Information Policy ( Section 2.2 of the Tariff ) to share information on scheduled output of natural-gas-fired generators with interstate pipeline operators . This change provides greater accuracy on unit availability and operational capabilities , improving regional reliability .
This is one of a number of improvements to communications protocols between the ISO ’ s control room and natural gas pipeline owners and operators . For example , several regional transmission organizations , including ISO New England , engage with gas pipeline operators in training exercises . Enhanced communications allow improved insight and understanding when natural gas supply issues may adversely affect the bulk power system .
2014
The ISO files substantial changes to its Forward Capacity Market with FERC ( approved in May 2014 ) to provide stronger incentives — known as “ Pay-for- Performance ”— for resources to undertake investments that ensure they can perform during stressed system conditions . The ISO expects market-driven investments in dual-fuel resources will result from the Pay-for-Performance changes . However , permitting for dual-fuel resources proves to be extremely difficult .
2013
ISO-NE President and CEO Gordon van Welie testifies twice before the U . S . Congress on the growing interdependency of the electric and natural gas industries in New England and the critical need for the region to invest in fuel infrastructure . His March testimony occurs before the U . S . House Energy and Commerce Committee and his May testimony is before the U . S . Senate Energy and Natural Resources Committee . l FON
Note : This information is reprinted from the ISO New England website . For more information , visit www . iso-ne . com . 28 JANUARY 2025 | FUEL OIL NEWS | www . fueloilnews . com