US Extends Northeast Energy Emergency Order

The US government is extending an emergency trucking waiver in the Northeast as winter weather and a power outage at a major industrial plant tighten propane supplies. More states were also added to the measure.

The Federal Motor Carrier Safety Administration on Tuesday extended an emergency declaration, originally set to expire midnight Friday, through Jan. 15. The measure waives regulations on how long drivers can be at the wheel without rest as they distribute heating fuels to thousands of customers in the Northeast.

The waiver is aimed at making sure enough fuel is being transported to fill any gaps, with sufficient inventories helping to provide a cushion amid the plant disruption. The declaration applies to propane, natural gas and heating oil. While just a minority of houses in the Northeast rely on these fuels for residential heating, cold weather in the forecast means it’s critical to keep supplies flowing. 

The declaration was first issued Dec. 12 and applied to New York, New Jersey, Delaware and Pennsylvania. The expanded order now also waives trucking restrictions in Connecticut, Maryland, Massachusetts, New Hampshire and West Virginia.

The issue stems from a Nov. 19 electrical incident at a transformer at Energy Transfer LP’s Marcus Hook terminal in Pennsylvania. The outage disabled the facility’s ability to load propane on trucks for three days and led the company to declare force majeure, according to a statement from the National Propane Gas Association. 

Energy Transfer customers were placed on allocation, meaning they could only collect a portion of their contracted purchases, and were receiving 70 percent of their loads, the association said. 

Energy Transfer hasn’t responded to multiple requests for comment since states began issuing emergency trucking waivers in early December.

So far, fuel stockpiles and the ability for distributors to source propane from other plants have minimized the impact on consumers and prices. 

Propane inventories on the East Coast are in line with prior-year levels, and retail prices in the region are up about 5 cents since the outage began according to US Energy Information Administration data.

A fast moving storm dubbed the Alberta Clipper will push freezing air into the US Northeast and mid-Atlantic states Friday. New York City and surrounding areas could see 4 to 8 inches of snow from Friday through Saturday afternoon, according to the National Weather Service. This precipitation will turn to rain as the clipper moves south. Another shot of cold air, with a chance of precipitation, is set to move across the East Coast next week.