# New England gas discount makes the delivery basis central to power budgets

> A September review of spring and summer prices shows why a national gas benchmark cannot stand in for a local plant tariff.

- **Source date:** 2026-10-09
- **Original source:** [U.S. Energy Information Administration (EIA)](https://www.eia.gov/todayinenergy/detail.php?id=68124)
- **Reading time:** 2 min
- **Language:** en
- **URL:** https://voltformer.com/news/new-england-2026-gas-basis-canadian-imports
- **Markdown:** https://voltformer.com/news/new-england-2026-gas-basis-canadian-imports.md

## The regional observation

EIA reported on 9 September that Algonquin Citygate averaged 0.43 USD/MMBtu below Henry Hub during April–July 2026. The reported discount belongs to that historical window; it is not a guaranteed October or winter spread. For an industrial buyer, the useful signal is that regional supply and consumption can make the local gas reference move differently from the national benchmark. The observation therefore supports separate price series in a procurement ledger. A company using only Henry Hub in its electricity scenario can miss a change in the local basis even when its assumed generation efficiency is perfectly consistent. EIA cites Natural Gas Intelligence for the price comparison.

[U.S. Energy Information Administration — Today in Energy](https://www.eia.gov/todayinenergy/detail.php?id=68124)

## A transparent cost translation

Our illustrative calculation holds gas use at 7.5 MMBtu for each MWh of electricity. A 0.43 USD/MMBtu difference then represents 3.225 USD/MWh, or 3225 USD over 1000 MWh, before local delivery, operating costs and network charges. This is a sensitivity to the observed benchmark difference, not a saving promised to a particular generator. It assumes equivalent fuel quality, consistent energy units and equal operating output. A plant without access to the quoted hub cannot capture that reference difference automatically. Check delivery rights and the settlement period before treating the amount as an executable cost advantage.

## Canada and the seasonal boundary

EIA’s review also reports Canadian net flows into New England averaging 0.4 billion cubic feet per day in April–July. That historical flow does not specify available capacity for a new buyer or a future winter allocation. Our interpretation is to assess cross-border supply and local demand together, then reconcile the result to the site contract. Heating-season constraints can change the basis independently of a broad North American commodity trend. Keep seasonal price exposure, firm pipeline service and plant efficiency in separate budget lines. Recalculate the delivered fuel scenario when the local index or transport arrangement changes, rather than carrying the spring discount unchanged into a year-round electricity contract. The flow comparison uses S&P Global Energy data quoted by EIA.

## Related analysis

[Read the connected economic analysis](/articles/us-canada-gas-power-price-transmission-2026)

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