Updated: New England Weather Forecast and Rate Effects on Electricity and Natural Gas
Happy New Year! New weather forecasts for New England from NOAA show a mild winter with below-average demand. January is expected to be the warmest in 40 years, keeping natural gas and electric retail prices relatively steady. The region's power supplies are projected to be healthy going into the coldest months of the year. It must be noted, though, that rates will remain elevated throughout the winter because the higher costs are 'baked-in' from the delivery of natural gas into New England with the Algonquin gas pipeline.
What is the Algonquin Pipeline
The Algonquin Gas Transmission, LLC (AGT) is a pipeline system that transports natural gas through the Connecticut Valley in New England. With a history dating back over 50 years, AGT currently supplies 14 distribution companies in the Northeast region of the US, using a network of around 4,000 miles of pipeline and more than 80 compressor station sites. AGT is owned by affiliates of Spectra Energy Corp and provides approximately 1.4 Bcf/d of natural gas to over one million customers across North America, including two-fifths of all customers in New England.
Algonquin Rates in New England
Algonquin Basis gas (NG) rates are set with regard to the difference between natural gas and relevant comparable fuel prices, the company's expected level of gross margins, other operating costs and capital expenditures.
What to Expect for Natural Gas and Electric Rates in New England for 2023
Electric rates in New England are expected to average $0.18 per kilowatt over the next 30 months, according to Tad Dziemian, President of Neighborhood Energy of New England. ‘The Ukrainian/Russian conflict and limited supply from producers as key drivers of these rates. However, natural gas rates are expected to moderate somewhat in the spring due to seasonal factors but are projected to increase again in November to over $1.00 per therm.
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