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December 2005 — Vol. 83, No. 10

Connecticut energy update

 

Electric transmission lines: “Upgrades in southwestern Connecticut are moving forward. A line from Bethel to Norwalk will be completed in 2006, and one from Middletown to Norwalk should be finished in 2009,” says CBIA’s Rob Earley. A new proposal to upgrade lines around the state is expected soon, he says.

Two-zone pricing: The Federal Energy Regulatory Commission (FERC) has delayed implementing its LICAP two-zone pricing plan until October 2006. Meanwhile, FERC has said it will consider other proposals. The state Department of Public Utility Control (DPUC) will likely propose a market-based alternative.

Natural-gas prices: A 40% to 50% price increase is expected this winter. About 60% of the gas price is the commodity cost, and 40% reflects the utility’s cost for transporting the gas, notes Jim McNally, marketing and sales director for Connecticut Natural Gas and Southern Connecticut Gas. “The utility price only changes when the DPUC grants a rate increase. All of the price increase right now is because of the commodity cost,” he says.

Natural-gas supply: Yankee Gas is building a liquefied-natural-gas (LNG) facility in Waterbury. “The intent is to provide another source of supply that we will draw on during high-price times. That will be online for the 2007/08 heating season,” says John Ferrantino, Yankee Gas sales and marketing director.

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