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Global LNG Prices to Hit NEPOOL

October 10, 2022


Boston and Kyiv are 4,478 miles apart, but the impact on NEPOOL electricity prices seems immediate. FERC has approved a waiver to provide cost recovery for the 1,700 MW Mystic Generating Station in Boston, saying that it and an adjacent liquefied natural gas import facility are crucial to ensuring reliable power during winter. Each month, the ISO will send Retail Electric Suppliers a bill that represents the fuel cost of natural gas to Mystic. This cost is tied to LNG from the nearby LNG terminal, which is pegged to prices in Europe. Energy retailers will likely pass through these charges to customers. Since the Ukraine conflict began, LNG prices have seen both record high prices and levels of volatility. These conditions make forecasting and budget certainty a challenge for many customers in NEPOOL.