New England electricity supply outlook: Summer 1998 -- and beyond

New England is in the third summer of a protracted electricity supply shortage that began with the shutdown of a substantial quantity of nuclear generating capacity, particularly the 2,630 megawatts (MW) from the three Millstone units located in Connecticut and owned and operated by Northeast Utilities. This report was prepared in response to a request from Senator Christopher Dodd and Senator Joseph Lieberman, both of Connecticut, that the Department of Energy provide an update of its June 1997 report, New England Electricity Supply Outlook, Summer 1997--and Beyond, which examines measures that might be taken to ease the supply shortage, particularly measured to relieve transmission constraints that restrict the import of electricity into Connecticut. In the interval since the 1997 report, three changes have occurred in the region`s overall electric supply context that are particularly significant: the Millstone 3 nuclear unit (1,150 MW) has been put back into service at full capacity; electricity demand is higher, due primarily to regional economic growth. The region`s projected 1998 peak demand is 22,100 MW, 1,531 MW higher than the region`s 1997 peak; and many new additions to the region`s generating capacity have been announced, with projected completion dates varying between 1999 and 2002. If all of the announced projects were completed--which appears unlikely--the total additions would exceed 25,000 MW. A small number of new transmission projects have also been announced