New Englanders Brace Up For A Harsh Winter That Comes With High Energy Cost
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The U.S Northeast will be facing its highest energy costs in over a decade because of the heavy global competition for liquefied natural gas (LNG) cargoes. The galloping price of gas has caused severe frustrations, and it could be worse for New Englanders if nothing is done about it.
This year, consumers have also been enduring higher costs for everyday items such as gasoline and groceries. According to the U.S. Energy Information Administration’s (EIA) winter outlook, heating costs are set to soar nationwide by as much as 28% from last year. This means that the pain could even get more.
The Situation Is Very Serious
Joseph Nolan, Head of Eversource, New England’s largest utility company, has urged the U.S. government to take serious actions to address the high energy cost in the region.
He stated that there are growing concerns that the region would not have enough natural gas to heat homes and avoid blackouts this winter.
Nolan added that the Federal Energy Regulatory Commission and ISO-New England, New England’s electricity grid operator, have admitted for months that the region will be short of natural gas that will meet peoples’ needs throughout the winter.
“This represents a serious public health and safety threat,” Nolan said in a letter sent to the White House last week.
New England Still Highly Dependent On Natural Gas
Eversource and other utility firms in the region have invested massively in clean energy projects like offshore wind farms. The goal is to cut down on the region’s dependency on natural gas.
But the electricity they will generate will not be accommodated into the power grid for several years. As a result, the region will keep relying heavily on natural gas to meet its electricity needs.
The appeal to President Biden is coming when residents in New England are experiencing an enormous rise in gas costs, just like other regions. The geopolitical tension between Russia and Ukraine contributed heavily to the present surge in energy costs.
And as the U.S. enters the winter, households would need more supply of gas to keep the weather warm. The high cost of gas and energy has also affected the prices of other commodities. Most governments have continued to raise interest rates to fight surging inflation.
