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The need for resource diversity in New England

The New England power system is highly dependent on natural gas-fired generating units. As a result, the price of natural gas drives the price of electrical energy and the amount of environmental emissions. The system benefits when the price of natural gas is low. However, there is a need to mitigate the risks of high prices of natural gas through the diversification of fuel supply, especially as the electrical load continues to grow. This paper discusses the reliability, economic, and environmental risks that New England faces as the result of its high dependency on natural gas. The paper also discusses the mitigating measures that have been taken and public policies that will influence the future resource supply of electricity to the region.