21-07-08 New England's natural gas supply will almost certainly be squeezed this winter if customers seeking to avoid skyrocketing heating oil costs turn either to gas or electricity to heat their homes, state officials and an energy economist warned. Requests to convert homes from fuel oil to gas heat are reaching record numbers as heating oil prices surge to new highs, officials told the National Association of Regulatory Utility Commissioners' gas committee in Portland, Oregon. And residents who choose to rely on electric space heaters will feel the pinch as well given that most of the electricity consumed in the region is generated by gas, which also is expected to cost more than ever this winter.
"You are screwed up there. Your region is too dependent on natural gas... to generate power," Ken Costello, director of natural gas policy for the National Regulatory Research Institute, told New England regulators.

Costello's remarks came in reaction to an assessment given by Robert Keating, a member of the Massachusetts Department of Public Utilities, who noted that many Massachusetts residents still rely on heating oil in the winter. With heating oil expected to sell for about $ 6.50/gallon this winter, it will cost $ 1,300 to fill up a 200-gallon tank, Keating said, adding that oil distributors will demand payment up-front.
Massachusetts forbids utilities from shutting off gas or electricity to low-income customers between November and mid-April, while the state does not afford consumers of heating oil the same protection, he noted. As a result, Keating said many low-income people will buy and use electric space heaters and "that concerns me" because it will put even more pressure on electric utilities to acquire power, Keating explained.

Utilities in Massachusetts are not allowed to own power plants and must buy electricity from independent producers. He noted that 40 % of the power in Massachusetts comes from generators fuelled by gas, and he said an increase in electric use for winter heatingwill further strain already tight gas supplies in the region.
Thomas Dvorsky, director of the Office of Electric, Gas and Water at the New York State Public Service Commission, noted that there had been a record number of requests for conversions this year in his state as well. But he said many people who want gas service live in rural areas where it "is not an option." As a result, they face the prospect of paying record high prices for fuel oil and propane, he said.