Maine governor seeks 5% reduction in New England gas use by 2011

Washington (Platts)--17Oct2005

Concerned over an ISO New England report last week that warned the region
will likely see "chronic" natural gas shortages this winter, Maine Gov John
Baldacci is asking other governors in the region to commit to a conservation
and energy efficiency effort aimed at cutting New England's gas consumption 5%
by 2011.
     In a letter Friday to the governors of Connecticut, Massachusetts, New
Hampshire, Rhode Island and Vermont, Baldacci, who is also chairman of the
Coalition of Northeastern Governors, presented a draft memorandum of
understanding that, citing sharp increases in natural gas and oil prices in
the wake of Hurricanes Katrina and Rita, calls on each state to "commit to
pursue" a 1%/year reduction in gas consumption, "helping to secure the
larger regional goal of a 5% reduction by 2011."
     In addition, the memo calls on the governors to consider and enact
policies, such as codes and standards for energy consumption, regulatory and
legislative mandates and programs, "that are appropriate" for each state to
accomplish the 1% reduction target.
     Baldacci's memo said the region's heavy reliance on high-priced natural
gas--New England uses gas to generate more than 40% of its electricity--is
damaging the region's economy, resulting in a "multi-billion dollar 'drain'."
The governor added that developing new domestic sources of oil and gas,
including opening the Arctic National Wildlife Refuge in Alaska and areas of
the Outer Continental Shelf are not only unpopular in New England, but will
take 5 to 15 years to have an impact.
     Conservation and energy efficiency, he said, "are the only short-term
options "to ease the strain on heating fuel and electricity markets and are
easily implemented at the state and regional levels." Baldacci said the ISO
believes "that we can reduce the region's electrical load, and therefore our
natural gas consumption" by 250 MW to 500 MW with a coordinated and sustained
public conservation campaign."

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