Everett LNG, in operation since 1971, is used primarily to balance peak demand during the winter season, when gas consumption for heating is prioritized. The terminal feeds regasified LNG into two interstate gas pipelines and the Mystic Generating Station, deemed ‘system-relevant’ for regional energy supply security.
But the Attorney General Maura Healey argues Massachusetts needs make large cuts in its use of fossil fuels to meet the state’s goal of net-zero greenhouse-gas emissions by 2050.
“If the state’s Department of Public Utilities opens the investigation, Massachusetts would become the third state to launch a formal process to phase out natural gas,” Healey said in a statement. California and New York are already looking at how to best transition away from using gas for heating and use electrified systems, powered by renewables, instead.
Exelon mulls closing uneconomical gas power units
Gas-fired power generation is not always economical in New England. In fact, Exelon two years ago approached the U.S. Federal Energy Regulatory Commission (FERC) suggesting it would only keep its two large Mystic gas power blocks and the adjacent Everett LNG import facility operational between 2022 and 2024, if it gets permission to collect $1 per month from all electricity customers in New England.
Estimating the future costs of operation, Excelon said at the time its annual fixed revenue requirement for the two plants totals nearly $219 million in 2022-2023 and nearly $187 million in 2023-2024.
Mystic is “system relevant”, says ISO New England
Trying to put pressure on the regulator, Exelon had floated plans to retire Mystic’s two gas power units at the end of May 2022 rather than continue to lose money. However, the regional power grid operator insisted it needed the 1,700 MW capacity of the two gas power blocks to keep the system in balance.
Pipeline constraints limit the amount of natural gas that can be transported to New England, hence ISO New England urged the regulator that Exelon needs to keep the Mystic plants running because it can rely on imported LNG.