New York Commission Directs Avangrid Utilities to Implement Measures to Lower Gas Emissions

The New York State Public Service Commission has directed New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation to take additional actions, such as proposing demand response programs and identifying parts of their distribution systems for potential decommissioning, to improve their final long-term gas system plans.

These steps, informed by analysis and stakeholder input, support the decarbonization of their systems and help meet the greenhouse gas reduction goals set by the Climate Leadership and Community Protection Act. Every three years, New York’s gas utilities are required file their long-term gas plan to ensure a safe and reliable supply for customers. The filings will initiate a stakeholder engagement process to develop consensus on the long-term plans. The next filing of a long-term gas plan for the two companies is due on Jan. 31, 2028. The filings must contain a minimum of one scenario or model which includes no new traditional gas infrastructure and an assessment on greenhouse gas emissions.

The commission instructed the companies to propose pilot demand response programs and submit a report on methods used to verify the maximum allowable operating pressure for affected pipeline segments. Additionally, the companies were directed to share information with stakeholders and explore options for potentially decommissioning certain infrastructure segments.

The companies must file reports on contract restructuring, capacity reserve margins, and electrification incentives, and meet with large commercial and industrial customers to discuss renewable natural gas and hydrogen. They are also required to propose a residential demand response program, report on heating electrification adoption, and provide updates on benefits to disadvantaged communities. Additionally, the companies must include a status update on their maximum allowable operating pressure reconfirmation efforts in annual filings, update capital expenditure forecasts, and convene a technical conference to develop criteria for identifying infrastructure for strategic decommissioning. Many of these actions must be included in annual updates beginning May 31, 2025.