Northeast Electricity Prices Hike: Is It Really Natural Gas?

New England's electricity prices are among the highest in the country, and some might think that it's because of our reliance on natural gas. But is this really the case?

The region has shifted from using oil and coal to primarily generating electricity with natural gas, which now makes up 55% of New England's energy mix. However, as the U.S. Energy Information Administration notes, 'favorable natural gas prices in recent years have contributed to increased natural gas use by the electric power sector.'

Andrew Cline, president of the Josiah Bartlett Center for Public Policy, argues that having too little natural gas is the problem, not relying on it too much. He points out that Texas, which also relies heavily on natural gas, has electricity rates about 37% lower than New Hampshire's.

Cline suggests that the lack of pipeline capacity in the Northeast is to blame for the high prices, keeping the region reliant on oil and limiting the use of abundant and reliable natural gas. The Marcellus Shale reserve in West Virginia is just a short drive from New Hampshire, making it an ideal source of energy.