NERC report predicts adequate electricity for this winter

November 29, 2006—North America’s electricity generating capacity, transmission systems, and generation fuels will be adequate this winter, Rick Sergel, president and CEO of the North American Electric Reliability Council (NERC) announced recently, in conjunction with the release of NERC’s 2006/2007 Winter Assessment.

Generating capacity margins have not changed significantly since last winter, according to Sergel, with winter 2006/2007 margins judged to be adequate across North America. Transmission reinforcements in southwestern Connecticut and Boston also will result in significant improvements to reliability in these areas, which NERC had previously placed on its reliability “watch list.” Coal deliveries from the Powder River Basin, which were cited as an issue in NERC’s 2006 Long-Term Reliability Assessment, have improved significantly and coal stocks are increasing.

Peak demands for this winter are forecast to be higher than actual peaks recorded last winter in all areas except New England, Texas, the Southwest, and parts of Missouri. In New England, electricity price increases in 2005 and 2006 were the biggest factors in the lower peak demand forecast for this winter. Colder-than-normal weather last winter in the other areas is the primary reason this winter’s forecasts are lower than last year’s actual demands.

NERC, as the Electric Reliability Organization (ERO), conducts regular reliability assessments for the upcoming summer and winter peak demand seasons and for the next ten years.

For more information, see the NERC Web site.

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