New York Commission Directs Two Gas Utilities to Advance Gas Decarbonization Strategies

The New York Public Service Commission on Sept. 19 issued an order directing Consolidated Edison Company of New York Inc. and Orange and Rockland Utilities Inc. to develop pilot programs and other strategies to decarbonize their gas systems. The specific actions in the order will help the utilities achieve the emissions reduction targets established by the 2019 Climate Act. The law requires New York to achieve 40 percent emissions reduction by 2030 and 85 percent by 2050, relative to 1990 levels.

Among other actions, the order requires the utilities to implement a strategy to reduce greenhouse gas emissions, provide bill impact analyses, establish a definition for hard-to-electrify customers, propose pilot demand response programs, and submit a plan for non-pipes alternative deployment.

The commission carried out a long and thorough review of the utilities’ long-term gas plans, with the help of consultancy firm PA Consulting. In 2022, the commission issued an order that established a long-term gas system planning process for local gas distribution companies.

The review involved numerous technical conferences to gather stakeholder input, as well as feedback from the public with over 500 public comments.

The commission is exploring ways to balance the need to reduce new gas service extensions in furtherance of the goals set by the Climate Act. In July, the commission staff issued a straw proposal identifying changes to gas service extension rules to better align applicants’ access to service extensions with efforts to achieve emissions reduction targets.

Utility regulators across several states are evaluating natural gas planning processes to consider the impact of decarbonization and electrification measures on the gas system. For example, Maryland regulators are examining near term priority actions and comprehensive long-term planning for Maryland’s gas companies. In March, the Illinois Commerce Commission opened a proceeding to examine the future of natural gas and issues associated with decarbonization of the gas distribution system. The proceeding is aimed to discuss and address the effects of the state’s clean energy goal and power-sector decarbonization policy on the gas sector.