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January 22, 2015

King, Collins Urge FERC to Expeditiously Decide Future of Natural Gas Pipeline Project

WASHINGTON, D.C. – In a letter today, U.S. Senators Angus King and Susan Collins, along with Senators Jeanne Shaheen (D-N.H.), Chris Murphy (D-Conn.), and Richard Blumenthal (D-Conn.), urged the Federal Energy Regulatory Commission (FERC) to quickly reach a decision regarding a pending infrastructure project – Spectra Energy’s Algonquin Incremental Market (AIM) project – to expand natural gas pipeline capacity across the region and lower energy prices for consumers.

“If approved, the AIM project would expand Algonquin Gas Transmission’s existing infrastructure to bring desperately needed natural gas to New England,” the senators wrote. “While New England has become heavily reliant on natural gas for electric generation and residential heating, the region’s infrastructure has not kept pace.  As we endure another winter heating season, this lack of capacity and the severe impact it has on homes and businesses in our region is all too clear. Given this situation, it is especially important that this project has an expeditious review.”

The AIM project would expand Spectra’s existing pipeline from New York to Massachusetts, bringing more natural gas into the region. The project is subject to an environmental impact review, the statement for which was originally due in mid-December, but was postponed until January 23rd. A decision by FERC is expected after the completion of the Environmental Impact Statement.

The full text of the letter is below and can be read HERE.

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January 22, 2015

The Honorable Cheryl A. LaFleur

Chairman, Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

Dear Chairman LaFleur:

We are writing to emphasize the importance of a timely review and decision on the Algonquin Incremental Market (AIM) Project.  As the Federal Energy Regulatory Commission (FERC) announced on December 10, 2014 the Final Environmental Impact Statement for the project is now scheduled for release on January 23, 2015.

If approved, the AIM project would expand Algonquin Gas Transmission’s existing infrastructure to bring desperately needed natural gas to New England. While New England has become heavily reliant on natural gas for electric generation and residential heating, the region’s infrastructure has not kept pace.  As we endure another winter heating season, this lack of capacity and the severe impact it has on homes and businesses in our region is all too clear. Given this situation, it is especially important that this project has an expeditious review.

We are concerned that a delay in the decision on AIM would jeopardize the timely construction of the project, which is currently expected to be completed before the 2016-17 winter heating season. Seasonal challenges in New England result in short construction windows and any delay in this proposed project will likely cause disruptions in the region’s energy market. Additionally, the lack of natural gas capacity is causing increased emissions as other, dirtier generating sources are dispatched, while also increasing electricity prices in the region.

We appreciate FERC’s diligent review of the project and the openness demonstrated in the multiple public comment opportunities during this process. Following the completion of this process, we respectfully urge you to issue your decision expeditiously to help bring this critical project into service as scheduled.

Sincerely,

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