The report, by the North American Electric Reliability Council, stopped short of saying blackouts could occur if something isn't done.

    Still, the entire national system will be strained in coming years, with demand for electricity climbing by about 19 percent over the next 10 years - while power capacity will only increase by 6 percent at today's rate of supply growth.

The report, filed with federal regulators, said New England, Texas, the Mid-Atlantic and the Midwest could face even a tougher crunch within the next two to three years.

    "Our economy and quality of life are more reliant on electricity every day," said Rick Sergel, chief executive of the industry group, which was set up to monitor the nation's power system after the infamous 1965 Northeast blackout.

    A spokesman for the ISO New England, which oversees the region's power system, said the national report backs up what it's been preaching for a few years now: The region needs massive investment in its electric system.

    Dom Slowey, an ISO spokesman, said his group is "more optimistic" than it was a year ago about New England's coming energy crunch.

    The region needs about 4,300 megawatts of new power, in addition to the current 30,000 megawatts, by 2010, he said.

    About 4,800 megawatts are on the drawing boards, as developers scramble to build new oil, natural gas, wind and other energy-fueled power plants.

    It will be close, Slowey said.

    Brian Casey, chief executive of Boston's SourceOne, an energy company for businesses, agreed there are many new proposed plants. "But the spigot isn't going to open all at once," he said, adding it's important construction of new facilities start as soon as possible.

    If the region doesn't hit its goals, there could be regular "emergency measures" taken, such as mandatory conservation and the import of power from other areas.