PUBLIC SERVICE COMMISSION Approves $223 Million for Con Ed Conservation of Natural Gas Efforts by Lowering Demand in Westchester, City.

WPCNR THE POWER STORY. From Consolidated Edison. February 7, 2019:

The New York State Public Service Commission today authorized Consolidated Edison to immediately begin implementation of a $223 million initiative aimed at reducing demand for natural gas in the utility’s supply-constrained areas of its gas distribution system.

They are cost-effective and can offer substantial relief to current constraints that led Con Edison to recently announce a temporary gas moratorium in Westchester County.

Building upon these measures, the Commission will be laser focused on finding holistic and long-lasting solutions that will support clean energy strategies and economic growth.

“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 environment,” said Commission Chair John B. Rhodes. “Con Edison needs to move quickly and put forward innovative solutions designed to meet current and future energy demands throughout its serve territory.”

Con Edison submitted its Smart Solutions proposal to further develop a portfolio to lower demand for natural gas and identify local supply enhancements.

The solutions approved today focus on reducing demand through energy efficiency measures for its gas customers and supporting beneficial electrification through the deployment of heat pump technology.

The planned programs include the installation of:

(1) ground-source heat pumps at 8,800 single-family residences in Westchester County;

(2) air-source heat pumps at over 1,000 small and mid-sized multi-family buildings that currently use fuel oil for heating in the Bronx and other areas of the Company’s natural gas service territory; and,

(3) heat pumps to pre-heat boiler return water at more than 1,000 small commercial and large residential facilities throughout the Company’s natural gas service territory.



These measures will reduce future gas demand that would have resulted from the practice of converting fuel oil customers to natural gas.

Con Edison’s portfolio of demand-side approaches includes initiatives targeted at low-to moderate-income customers, multifamily properties and government buildings that provide critical community services. 

The Commission denied the company’s proposal to incentivize shareholders to add supply enhancements such as compressed or liquified natural gas supply sources, but specifically noted that the company is not prohibited from pursuing such projects without shareholder incentives as it has done in the recent past.

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