North Amer Pwr Supplies Seen Adequate Through 2008 -NERC

Dow Jones & Company, Inc. - Sep 9

NEW YORK (Dow Jones)--North America should have enough power to meet demand through 2008, but some perpetually constrained areas, such as southwest Connecticut, could face shortages during periods of heavy use, the continent's power grid monitor said Thursday.

Overall, reserves margins are expected to decline but remain healthy in almost every region over the next several years, the North American Electric Reliability Council said in a supply-demand outlook.

The reserve margin is expected to fall most dramatically in the Mid-Atlantic - to 12% by summer 2009 from 20% by summer 2005 - as demand grows while supply remains steady, NERC said.

The region composed of Wisconsin, Illinois and northeast Missouri and known as the Mid-American Interpool Network is the only one in which the reserve margin is expected to grow. It's seen reaching 30% by summer 2009 from 26% next summer, NERC said.

But the region's transmission system hasn't kept pace with new generation, and restrictions will continue on a Minnesota-Wisconsin connection until reinforcements are completed in mid-2008, NERC said.

The availability of natural gas supplies to fuel power plants in MAIN, New England, Ontario and Texas over the next few years is also a concern, NERC said.

Electricity demand is projected to grow about 2% each year in the U.S. and 1% for Canada , down slightly from the average during the past decade, NERC said.

-By Kristen McNamara, Dow Jones Newswires; 201-938-2061; kristen.mcnamara@ dowjones.com

Dow Jones Newswires 09-09-04 1922ET