Mitigating fuel diversity risks in a deregulated market

Studies conducted by ISO New England have identified risks related to disruptions in fuel-supply chains. The results show that New England continues to face potential reliability risks and exposure to high wholesale electric energy costs. The primary reason is that the region depends heavily on natural gas and oil to generate electricity. As the demand for electricity grows, the region must continue to find ways to reduce its over-reliance on natural gas. Or, it must increase the gas storage and transportation infrastructure to support the increased demand, particularly during winter peak-load conditions, when heavy dependence on natural-gas-fired generation competes with the space heating needs from residential and commercial customers within the core natural gas markets. These stresses on the regional natural gas delivery system continue to be a reliability concern.