It’s hard enough for the Northeast to attract business, given the perception of red tape, taxes and an aging labor force. Then there are the obstacles New Englanders seem to put in their own way, and here’s one:
Newly arriving companies cannot connect to natural gas lines in some of the largest Valley communities, forcing them to spend more to bury propane tanks and use a fuel that is less convenient and generally more expensive. That’s provided they are even able, given site conditions, to bury tanks. In Amherst, two of the largest recent developments, One East Pleasant and Olympia Place, had to opt for propane when the first choice, natural gas, became unavailable.
This is a stubborn problem that runs the risk of dissuading companies from pursuing projects in our region. Sarah la Cour, executive director of the Amherst Business Improvement District, calls Berkshire Gas’ ongoing moratorium on new customers in Amherst, Hadley, Hatfield and Sunderland economically “stifling.”
For prospective businesses, the inability to connect to natural gas lines goes squarely into the “cons” column — and it might even be written in capital letters, with a lot of question marks after it.
It would be right to wonder how this came to be.
Both Berkshire Gas and Columbia Gas, which serves Northampton and Easthampton, halted new hookups because they said they cannot get enough natural gas to distribute. Berkshire Gas took its stance in March 2015, but said the problem could ease with construction of the Northeast Energy Direct pipeline planned by Kinder Morgan’s Tennessee Gas unit.
That offered hope to gas customers, but then a minor earthquake shook New England’s energy landscape. Kinder Morgan announced April 20 it has sidelined the project, saying it could not line up enough customers.
If you find that puzzling, you’re not alone. The gas distribution companies say they lack supply, and the pipeline developer says it can’t find enough demand.
Are these explanations at odds? It is indeed possible that part of the problem was inadequate demand, since a study commissioned by the AG’s office concluded the same. The real and unserved need in western Massachusetts and elsewhere just wasn’t enough to make the pipeline feasible.
With the NED pipeline dead, for now, it’s time to stop waiting for increased supply and find ways to lift the bans. Senate President Stanley C. Rosenberg sent a clear message to Berkshire Gas the same day Kinder Morgan pulled out. It should lift its moratorium, he said, and remove this barrier to economic development in the region. State Rep. Peter Kocot, D-Northampton, called for legislative leaders and the gas distributors to come up with a solution.
For Northampton and Easthampton customers, relief lies in getting more gas through what’s known as the Northampton Lateral, a pipe that connects with a supply line near the Connecticut border.
On the Berkshire Gas side, gas comes up to Greenfield from a Tennessee Gas Co. interstate pipeline from Southwick, serving customers in Greenfield, Deerfield, Montague and Whately, all affected by that company’s moratorium. If the Kinder Morgan pipeline had gone forward, Berkshire Gas said earlier, the ban on hookups might be lifted by November 2018.
Since that goal is kaput, it is time for a different remedy.
Berkshire Gas appears to have imposed the moratorium as a last resort. It previously worked with Tennessee Gas on a $2.5 million compressor station upgrade in Southwick to get more gas north. A spokeswoman for Columbia Gas, meantime, said the company is trying to negotiate for more capacity through its supply line, relieving what she termed a bottleneck in supply. Those are all good steps, but so far inadequate.
Columbia would increase its own revenues by adding customers. “It’s not in our business plan to say ‘no’ to new customers,” a Columbia spokeswoman told the Gazette.
It’s past time for these companies to find ways to say “yes” to new customers.