New York State PSC approves Con Edison plan to reduce natural gas demand in supply-constrained areas

Published on February 11, 2019 by Kevin Randolph

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The New York State Public Service Commission (PSC) recently authorized Consolidated Edison Company of New York, Inc. (Con Edison) to immediately begin implementing a $223 million initiative to reduce natural gas demand in the utility’s supply-constrained areas of its gas distribution system.

“The PSC is providing Con Edison with the ability to deploy non-traditional solutions to address the customer needs currently met with natural gas and expects Con Edison to use these tools to help its customers and protect [the] environment,” Commission Chair John B. Rhodes said. “Con Edison needs to move quickly and put forward innovative solutions designed to meet current and future energy demands throughout its [service] territory.”

The recently approved solutions focus on energy efficiency measures and deploying heat pump technology to support electrification.

The PSC denied Con Edison’s proposal to incentivize shareholders to add supply enhancements such as compressed or liquified natural gas supply sources but noted that the company is not prohibited from pursuing such projects without shareholder incentives.

Supply limitations and increased demand led Con Edison to suspend new natural gas connection in the majority of its Westchester County, New York natural gas service territory starting on March 15 to maintain reliability for existing customers and critical facilities.

Department of Public Service staff is currently conducting an analysis and review of the market conditions that led to the company’s decision and how utilities are meeting customer needs.