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To Combat Winter Price Spikes, Conn. Proposes State-Run Procurements

March 25, 2015 By Josh Kessler

The Connecticut Department of Energy and Environmental Protection (DEEP) has proposed state-run procurements designed to address the type of gas and electricity price spikes that have occurred in Connecticut and other northeastern states the past two winters. An article in RetailEnergyX reports that DEEP is seeking to solicit large hydropower, gas and electric transmission capacity, liquefied natural gas, demand-side resources, and combined heat and power to help resolve gas transmission constraint. DEEP’s integrated resource plan (IRP) notes that the state has the authority to solicit up to 5 percent of its electricity demand from large hydro and Class I renewables, and can solicit long-term power-purchase agreements for these resources.

The IRP explains that while this is insufficient to fully address the situation, it can create incremental customer benefits. If conditions become more extreme, DEEP may request more authority to procure additional capacity.

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