Power, Gas Utility & Midstream - Operations and Strategy
| With robust supplies, winter expected to be no sweat for Pennsylvania's LDCs |  |
November 06, 2009 5:17 PM ET
By Mark Hand
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Pennsylvania's natural gas utilities are prepared to meet projected customer demand during the upcoming winter season based on current weather forecasts, officials said Nov. 5 at the Pennsylvania Public Utility Commission's annual winter reliability assessment meeting. Natural gas demand for the winter months in Pennsylvania is expected to total 224.5 Bcf, according to the Energy Association of Pennsylvania. The majority of the supply, 116 Bcf, will come from gas flowing on interstate pipelines, while storage withdrawals will account for 99.3 Bcf of the supply during the winter, the association said in a presentation at the PUC meeting. Local production will provide 8.2 Bcf, and peak-shaving facilities will provide 1 Bcf of supply, the association said. PECO Energy Co. anticipates using LNG to meet 1.2% of its projected peak-day requirement, while Philadelphia Gas Works Co. expects to use LNG to meet 2.8% of its projected peak-day requirements. Also, based on a weighted average of its members, the association said 61.8% of this winter's supplies in the state are hedged. The Energy Association of Pennsylvania represents the state's regulated electric and natural gas energy distribution companies, as well as associate and affiliate members. In his presentation at the meeting, Carlos Thillet, PECO's manager of gas supply and transportation, noted that U.S. gas storage is at record levels, while demand remains weakened by the recession. Also, Rocky Mountain supplies will arrive in the East this winter on the gas transportation system owned by Rockies Express Pipeline LLC, while Marcellus Shale gas is flowing and "could be a game-changer," he said. |
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