New York develops plan to ease nat gas shortage

The state of New York will invest $250mn in renewable energy and efficiency measures in response to a natural gas service moratorium in Westchester County that stems from a lack of sufficient pipeline capacity.

Utility Con Edison in January said that after 15 March it would no longer accept applications for new natural gas connections in the majority of its service area in Westchester County, New York, because of pipeline constraints. The New York Department of Public Service (DPS) in February said it would review natural gas supply and demand in the county to develop recommendations.

The DPS, the New York State Energy Research and Development Authority and the New York Power Authority late last week announced a plan to address the shortage, including: $165mn in grants to Con Edison for heat pumps and increasing gas efficiency for its residential, commercial and industrial customers; $32mn in financing services for customers to retrofit heating systems with alternatives to natural gas; $28mn for grants to new customers to use alternatives to natural gas for heating and cooling; and $25mn to improve energy efficiency to lower overall demand.

The agencies said the investments are expected to reduce energy consumption equivalent to the amount of gas to heat more than 90,000 homes.

The investments are not considered a complete fix for the critical lack of pipeline capacity in the state. While the state's initiatives are a "step in the right direction," state assemblyman Nader Sayegh (D)said he hopes the collaboration will enable the state to "find a long-term solution." White Plains mayor Thomas Roach said the program is a "vital first step" in ensuring the county's residents have access to energy.

Con Edison in September 2018 requested a six-year $305mn budget for a portfolio of non-pipeline gas projects, including targeted energy efficiency and heating electrification measures, three renewable gas production plants and up to five gas storage facilities in Westchester County. The state approved $222.6mn for the energy efficiency and heating electrification, but denied the utility's other requests, saying it should pursue or seek cost recovery in other ways.

The utility delivers gas to about 1.1mn people in New York City and Westchester County.