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New Hampshire Energy Forum William T. Sherry Executive Vice - - PowerPoint PPT Presentation
New Hampshire Energy Forum William T. Sherry Executive Vice - - PowerPoint PPT Presentation
New Hampshire Energy Forum William T. Sherry Executive Vice President New Hampshire Public Affairs National Grid June 23, 2006 National Grids Service Territory 2 National Grid: Who We Are International energy delivery company based in UK
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National Grid: Who We Are
- International energy delivery company based in UK
High voltage transmission system in England & Wales 11 million natural gas distribution customers in UK
- Electric and gas distribution company in NY, MA, RI and
NH
Created by merger of NESS, EUA, NIMO 3.3 million electric customers 565,000 gas customers in NY
- In process of acquiring KeySpan Energy and New England
Gas
2.8 million additional gas customers in NY, MA, RI & NH
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National Grid’s Service Territory
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National Grid Average Residential Rates
Note: Granite State Electric Company is now referred to as National Grid. January 1998 is the bundled rate prior to restructuring. Power Supply Costs include the base transition service charge and the transition service adjustment factor. May 2006 is the filed rate and has not received PUC approval. Delivery charges include transmission, distribution, taxes, and the SBC for purposes of this chart.
4.3 5.2 4.9 5.2 5.6 5.6 5.4 5.4 5.6 5.7 5.7
- 2.8
1.4 1.1 0.8 0.5 0.7 0.7 0.6 0.6 0.2 0.2
- 3.2
3.2 3.5 3.8 5.8 4.9 5.0 5.1 5.3 5.4 8.6* filed
- 1.0
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 Jan-98 Jul-98 Sep-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 May-06 (¢ per kWh)
Power Supply Costs Stranded Costs Delivery Charges
11.5 10.3 9.8 9.5 9.8 11.9 11.2 11.1 11.1 11.5 11.3 14.5
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Average Monthly Electricity Clearing Prices Commodity Costs have Risen Throughout the Northeast
Source: ISO New England Monthly Market Reports, Hourly Real-Time Energy Price Summary, and Monthly Summary of Load, LMP, and Weather Data. Comparison data for New York and PJM is only available through December 2005.
0.00 20.00 40.00 60.00 80.00 100.00 120.00
Feb-00 May-00 Aug-00 Nov-00 Feb-01 May-01 Aug-01 Nov-01 Feb-02 May-02 Aug-02 Nov-02 Feb-03 May-03 Aug-03 Nov-03 Feb-04 May-04 Aug-04 Nov-04 Feb-05 May-05 Aug-05 Nov-05 Feb-06
$/MWh
New England New York PJM
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New England Electric Generation Fuel Mix, 2004
Source: Energy Information Administration, Form EIA-906, "Power Plant Report."
All Other Renewables 7% Coal 14% Hydroelectric 6% Natural Gas 37% Nuclear 27% Petroleum 9% Total = 133.5 Billion kWh Utility Plants = 6% Independent Power Producers and Combined Heat & Power Plants = 94%
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Average Monthly Clearing Prices, Electricity v. Gas January 2000 - February 2006
Source: ISO New England Monthly Market Reports, and Natural Gas Weekly Updates, Energy Information Administration, Office of Oil & Gas
0.00 2.00 4.00 6.00 8.00 10.00 12.00
Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06
Electricity (cents/kwh) $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Natural Gas ($ per MMbtu) New England Electricity Henry Hub Natural Gas
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Regulated Generation Business Model
Customers bore supply cost risk Inefficient price signals to customers Shareholder returns disconnected from
performance
Regulated generation model had problems.
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Competitive Generation Business Model
Generators bear supply cost risk Efficient price signals to customers Shareholder returns linked to performance Reduced air emissions Lower fuel-adjusted wholesale prices
Competitive generation model is better.
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