PCCA Journal 3rd Quarter 2014 - page 42

PCCA Journal|3
rd
Quarter 2014
42
in the mid-Atlantic.
This past winter, natural gas prices in
New Jersey traded as high as $100 per
dekatherm. Natural gas in the area that
PennEast will access traded in the range
of $3 to $4 per dekatherm. The proposed
pipeline will help reduce this price
volatility to the benefit of New Jersey’s
nearly 3 million natural gas consumers.
Pipelines are also the safest, most
environmentally friendly and efficient
mode of transporting natural gas, accord-
ing to the U.S. Department of Transpor-
tation, Pipeline and Hazardous Materi-
als Safety Administration. In fact, data
shows that while natural gas demand
has increased by 55 percent over the last
three decades, serious pipeline incidents
have decreased by 90 percent over the
same period, primarily as a result of the
significant efforts by pipeline companies
to upgrade and modernize their infra-
structure.
Additionally, the new pipeline is
expected to benefit the region’s economy
and create jobs. During the seven-month
construction phase, the PennEast project
is estimated to create in excess of 2,000
new jobs, as well as many other ancil-
lary jobs.
PennEast will begin preliminary engi-
neering studies in the coming months,
along with a formal application before
the Federal Energy Regulatory Com-
mission. If all local, state, and federal
approvals are timely approved, construc-
tion of the pipeline could begin in 2017.
For more information, go to
.
Power News
Continued from page 41
New Study Shows
Importance of Diverse Power Supply
A
new study supported by the U.S. Chamber’s
Institute for 21st Century Energy and pro-
duced by global research firm IHS under-
scores the threat America’s power supply
faces from policies that seek to limit our
diverse array of sources.
While the U.S. currently benefits from a wide range of elec-
tricity sources, federal regulations and a narrow focus on re-
newable energy and natural gas will threaten our diversity. If
the two most vulnerable sources of energy—coal and nuclear
energy—which provide almost 60 percent of our electricity,
are removed from our supply it could result in more than 1
million jobs lost and a reduction of more than $2,000 in an-
nual household disposable income for every household.
“The federal push to eliminate coal and favor some
technologies over others could turn a major strength of our
nation—a diverse supply of electricity resources—into a big
vulnerability,” said Karen Harbert, president and CEO of the
U.S. Chamber’s Energy Institute. “This new IHS study should
serve as a wake-up call to policymakers and consumers to
pay attention to our electricity mix and start protecting each
and every source.”
“EPA’s proposed rules on new and existing power plants
will significantly reduce our coal-fired generation, prevent the
construction of new coal-fired power plants, and could even
threaten natural gas in the future,” Harbert continued. “Other
federal policies and state mandates promote renewable
production, while placing nuclear energy at a competitive
disadvantage even though it also is an emissions free power
source.”
The IHS study, “The Value of US Power Supply Diversity,”
finds that from 2010-2012, retail power prices for consumers
would have been 25 percent higher and wholesale power
prices would have been 75 percent higher without significant
contributions from coal and nuclear resources. In addition,
electricity rates would have been far more volatile.
“The polar vortex last winter demonstrated the value of
America’s diverse electricity portfolio,” said Heath Knak-
muhs, senior director of policy at the U.S. Chamber’s Energy
Institute. “The colder temperatures in some parts of the coun-
try stretched natural gas demand, and utilities turned to coal
to provide power. While increasing natural gas production is
a very good thing for our economy and our security, it should
not be at the expense of other sources.”
The U.S. Chamber’s Energy Institute has long advocated
for diverse electricity supplies. The Institute’s Energy Works
for U.S. platform contains 64 specific recommendations in
nine areas, including coal, natural gas, nuclear energy, re-
newables, and infrastructure.
The Energy Institute was joined by the Edison Electric In-
stitute and by the Nuclear Energy Institute in supporting the
IHS study. For more information and to read the study, visit
.
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