NY Public Service Commission launches program to reduce demand for natural gas

Published on August 21, 2018 by Dave Kovaleski

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The New York State Public Service Commission launched a program for Consolidated Edison Company (Con Ed) to reduce customer demand for natural gas.

The $5 million program will seek to lower the reliance on natural gas, which has grown significantly in recent years, over the next three years.

Reducing the demand for natural gas will result in carbon reduction and decreased costs to consumers. It will also help alleviate the need for additional gas infrastructure as the state moves toward clean energy.

“Demand response has proven to be an effective tool to manage demand and save costs on the electric system,” Commission Chair John Rhodes said. “While some gas customers have been doing demand response for years, this program will enhance gas customers ability to reduce peak day demand. This pilot program will be among the first-of-its-kind in the country and should provide valuable insights for energy system planning and for further demand reduction approaches of all gas utilities.”

The commission is focused on developing smart energy alternatives as opposed to building more pipelines.

Con Ed provides gas to 1.1 million customers in Manhattan, the Bronx, parts of Queens, and most of Westchester County.

The program will consist of two components. The large commercial and industrial customer-focused pilot will be similar to Con Ed’s existing electric peak-shaving program. The residential and small commercial customer-focused pilot will use customer-purchased smart thermostats similar to the company’s existing residential electric program.