In January, New York energy company Consolidated Edison Inc (Con Edison) told New York state regulators, the New York Public Service Commission, that it would impose a temporary moratorium on new natural gas service in parts of New York County. Westchester due to limited capacity of existing gas pipelines. . It now plans to stop accepting new service orders on March 15, 2019. ConEd says this will happen until gas demand is aligned with gas supply.
There is debate over the planned moratorium: whether it is the result of the state's continued blockade of gas pipeline construction (the opinion of a New Yorkers for Affordable Energy spokesperson) or whether it is the result of a significant increase in demand for gas (state regulators’ opinion).
The negative impact of the moratorium
This is significant news due to the impact that the moratorium will have on its population. Westchester County is bordered by New York City to the south, Fairfield County, Connecticut, to the east, Long Island Sound, and the Hudson River. Roads, bridges, and mass transit have led to much of the county becoming almost as densely developed as New York City. This means that after the moratorium, Westchester residents will not be able to switch from oil to natural gas, nor will developers obtain natural gas services for new construction projects.
But whatever the reason for the imbalance between supply and demand, the moratorium threatens to slow the regional transition from heating oil to a greener, cleaner-burning gas.
Other energy companies have tried for years to propose building gas pipelines from the Marcellus shale in Pennsylvania to New York, but regulators in Albany have denied some of those projects for environmental reasons. National Grid, for example, still needs approval and authorization for the Northeast Supply Improvement Pipeline Project. It is currently scheduled to enter service in December 2020 and is designed to provide additional gas supply to your system. It is possible that National Grid will have to follow suit and impose a moratorium if the pipeline it needs is not approved.
If this trend of restricting gas supplies continues, the population of New York State will be left vulnerable without reliable, affordable heat.
Financial implications of the moratorium
There are financial implications for existing residents of Westchester County and those seeking to develop there.
Westchester is one of the wealthiest parts of New York State, where nearly 1 million residents have a median household income of $90,000. It is also a fast-growing area with high demand for gas. The moratorium will make it more difficult and more expensive for residents to heat their homes. Many consumers who use oil want to switch to gas for heating, not just because it's cleaner, but because it's cheaper to burn. Demand is rising as local governments phase out highly polluting fuel oil units amid low gas prices and as ConEd customers rush to switch to gas to save money. According to the Energy Information Administration, the average Northeastern US household was expected to spend just under $750 for gas heating, just over $1,400 for electricity, or just over $1,500 for oil this winter. , according to federal estimates. Residents who are denied access to natural gas will therefore have to pay twice as much or more to heat their homes. This is perceived by some as a hidden political tax on their energy choices, and by others as a step in the right direction towards environmental protection, as long as the use of oil can be avoided.
County officials say they cannot allow county development, including, ironically, Cuomo administration projects, to shut down. In Westchester County, construction of 16,000 homes is expected to be suspended, including affordable housing initiatives, and another 190,000 square feet of commercial and retail space could be affected, according to a preliminary economic analysis.
Solutions Available to Westchester Residents and Developers
Due to state Governor Andrew Cuomo's rejection of permits for most new natural gas pipeline projects in recent years, natural gas pipeline developers have avoided proposing projects in the state.
Instead of investing in new gas pipelines, the State encouraged companies to invest more money in energy efficiency and renewable energy projects. The Commission called on ConEd to quickly find and develop clean energy solutions to ensure system reliability.
Clean energy solutions powered by ConEd
The $233 million ConEd program is designed to reduce gas demand through energy efficiency measures and the deployment of ground source heat pump technology and other non-pipeline alternatives to maintain reliability for existing customers, according to with the regulator, the Commission. It's a conservation plan that includes getting low-to-moderate income customers and others to reduce costs by using innovative ways to meet their customers' heating and cooking needs.
The energy utility continues to look for non-pipeline solutions that reduce dependence on fossil fuels through renewable technologies. These include:
- electric heating options such as heat pumps
- take interruptible service for commercial projects (requiring on-site fuel supply when the gas system is restricted, usually oil)
ConEd says it will continue to work with its customers to help them find clean energy alternatives and reduce costs for them. It is also exploring an oil-to-electricity conversion pilot.
The Commission has indicated that it will monitor the utility's interactions with customers to ensure they are aware of the alternatives.
Professional advice
During this unsettling period leading up to the moratorium, professional support is available. New York-based MEP engineers familiar with power and electrical system design, including conversions, specific equipment specifications, and installation issues, can help you evaluate your options through value engineering before and after the moratorium and during implementation of any changes.
