Home 
About MMA MunEnergy Natural gas, oil boost electricity prices in New England
About 40 percent of power plants in New England are powered by natural gas and oil, so the cost of these two fuel sources is a major factor driving the price of electricity generation in the region.
These fuel costs continue to rise, and analysts do not predict that prices are going to come down in the near future.
Here are a few of the contributing factors:
• With the weakening U.S. dollar, foreign currencies have more buying power. As a result, liquefied natural gas cargoes are being diverted to Asia and the United Kingdom, where sales are more profitable.
• The price of a barrel of oil is at an all-time high, again as a direct result of the weak U.S. dollar. Number 6 oil is used in many generators in New England, so any rise in oil costs increases the cost of electricity generation.
• Colorado State University recently released its hurricane forecast, which predicts 13 named storms and eight hurricanes this year. Hurricanes that enter the Gulf of Mexico disrupt oil tanker traffic and cause natural gas and crude oil platforms to be evacuated. This causes prices to rise as supply is reduced.
• Natural gas storage levels in the Eastern U.S. are 20.1 percent below last year’s levels. Storage of natural gas plays a major role in providing fuel during the winter in the New England region.
• A major gas pipeline in the Gulf of Mexico has been taken off-line for several weeks. This has caused a 10 percent reduction in Gulf production of natural gas.
• Demand for electricity in New England continues to grow, yet added supply has been minimal. The cost of building a new generator is at an all-time-high.
Municipalities that do not have an energy strategy in place are advised to make it a priority so they don’t get caught riding the energy roller coaster. The MMA’s MunEnergy program can provide a free analysis of a city or town’s usage patterns in order to develop a cost-effective long-term strategy.
To learn more, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
About MMA MunEnergy Natural gas, oil boost electricity prices in New England
Natural gas, oil boost electricity prices in New England
About 40 percent of power plants in New England are powered by natural gas and oil, so the cost of these two fuel sources is a major factor driving the price of electricity generation in the region.
These fuel costs continue to rise, and analysts do not predict that prices are going to come down in the near future.
Here are a few of the contributing factors:
• With the weakening U.S. dollar, foreign currencies have more buying power. As a result, liquefied natural gas cargoes are being diverted to Asia and the United Kingdom, where sales are more profitable.
• The price of a barrel of oil is at an all-time high, again as a direct result of the weak U.S. dollar. Number 6 oil is used in many generators in New England, so any rise in oil costs increases the cost of electricity generation.
• Colorado State University recently released its hurricane forecast, which predicts 13 named storms and eight hurricanes this year. Hurricanes that enter the Gulf of Mexico disrupt oil tanker traffic and cause natural gas and crude oil platforms to be evacuated. This causes prices to rise as supply is reduced.
• Natural gas storage levels in the Eastern U.S. are 20.1 percent below last year’s levels. Storage of natural gas plays a major role in providing fuel during the winter in the New England region.
• A major gas pipeline in the Gulf of Mexico has been taken off-line for several weeks. This has caused a 10 percent reduction in Gulf production of natural gas.
• Demand for electricity in New England continues to grow, yet added supply has been minimal. The cost of building a new generator is at an all-time-high.
Municipalities that do not have an energy strategy in place are advised to make it a priority so they don’t get caught riding the energy roller coaster. The MMA’s MunEnergy program can provide a free analysis of a city or town’s usage patterns in order to develop a cost-effective long-term strategy.
To learn more, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Written by MunEnergy Program Manager Emily Neill
