Proposed Access Northeast pipeline will cost $6.6 billion, not $3.2 billion claimed by sponsors
Cambridge — The costs of the proposed Access Northeast pipeline to transport fracked gas into Massachusetts and other New England states would be more than double what pipeline sponsors claim–$6.6 billion versus the projected $3.2 billion–according to a new report by Synapse Energy Economics. The report also projects that the use of natural gas in New England for electric generation will decrease by 27 percent by 2023, leaving the pipelines underused and unneeded.
Rather than reduce consumers’ bills as claimed by the pipeline sponsors, the pipeline would increase costs for Massachusetts consumers by $141 million over the life of the pipeline, according to the report. The use of gas-fired electricity will decline dramatically, also according to the report, because electricity demand is expected to be flat for the foreseeable future and state laws require the use of more renewable resources, forcing gas out of the system. Beyond the projected 27 percent reduction in the use of natural gas for electric generation by 2023 as compared with 2015, the report projects that natural gas usage will be 41 percent lower by 2030.
The report also found that the $3.2 billion pipeline construction cost, cited frequently by the proponents, excludes other significant costs such as operations, maintenance, depreciation and return on equity, making the full cost $6.6 billion, which is more than double the proponents’ claim. Contrary to the utilities’ claim that the pipeline would lower consumer rates, the report found that New England ratepayers would be forced to pay an additional $277 million over the lifetime of the pipeline.
The pipeline partners had initially proposed that the pipeline be paid for through a pipeline tax added to monthly electric bills, a tax which was overruled by the Massachusetts Supreme Court and rejected by the New Hampshire Public Utilities Commission.
