Eversource 2015 Annual Report Download - page 5

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It is during these cold winters when the serious energy challenges
facing New England are most apparent. Natural gas is the fuel of
choice for heating and power production and non-gas-fired power
plants continue to retire, yet no major additions to our region’s
natural gas transmission infrastructure have occurred in at least
20 years. We cannot continue to endure winter gas delivery
constraints, which produce volatile energy markets and the potential
for skyrocketing prices like we have experienced in many
recent winters.
Eversource understands the region’s dilemma and has taken the lead
in addressing it. Two of our projects, Access Northeast and Northern
Pass, will provide New England customers with significant relief by
expanding pipeline capacity, importing clean hydro power and
creating long-term cost savings. I am pleased to report both
projects gained solid ground in 2015. Access Northeast has begun
the federal regulatory approval process. It has also signed long-term
gas supply contracts with electric distribution companies that are
now being reviewed by regulators.
Northern Pass revised its 192-mile route, adding 52 miles of
underground construction in scenic areas, commenced the state
regulatory review process, received a favorable draft environmental
impact statement from the U.S. Department of Energy, and released
its new Forward NH Plan that underscores the billions of dollars in
project benefits to the state of New Hampshire.
These projects will both provide significant economic and
environmental benefits to New England, lowering our dependence
on older, higher emitting oil and coal-fired generation. Once Access
Northeast is in service, we have estimated New Englanders could
save $1.5 to $2 billion annually in energy costs during normal winter
weather. Further, we have estimated the additional 1,090 MW of
base load power Northern Pass will bring to the region would save
New England customers more than $800 million per year. Customers
need and deserve this price stability. Moreover, Northern Pass alone
is expected to lower carbon emissions in New England by at least 3
million tons annually—that’s the equivalent of taking more than
600,000 cars off the road.
In addition to Northern Pass, we continue to invest heavily in electric
transmission projects that maintain the reliability of the region’s
electric grid. The Interstate Reliability Project (IRP) was completed
in 2015, successfully capping off nearly a decade of planning, siting
and construction of the New England East-West Solution
(NEEWS)—a suite of regional projects designed to strengthen the
reliability of the regional power grid by improving efficiency and
eliminating congestion. The investment by Eversource alone in
NEEWS was approximately $1 billion.
NEEWS projects represent the largest upgrade to the regional
transmission system in a number of years, supporting the region's
economic growth and environmental goals through greater access
to newer, more efficient, and cleaner generating plants. In 2015, we
commenced siting filings and construction on our next two major
transmission initiatives, the Greater Boston and Greater Hartford sets
of reliability projects. Altogether, we expect to invest approximately
$900 million in these initiatives by 2019.
We are also investing heavily in our natural gas delivery
infrastructure—$213 million in 2015 and nearly $1.3 billion
projected from 2016 through 2019. That investment involves a
combination of upgrading existing distribution mains and LNG
storage facilities, and meeting the increasing demand in our