Energy Exchange

Florida should protect utility customers from rates that yield excess profits for affiliated companies

By Erin Murphy / Published: June 11, 2024

Florida is overwhelmingly dependent on natural gas imported from out of state to generate 75% of its power for customers like homes and businesses. Unfortunately, a loophole in fuel cost recovery policy creates financial incentives for outsized natural gas dependence, funded by Florida families and businesses through rates and Florida lacks a comprehensive process for integrated resource planning, instead typically deferring to 10-year plans filed by utilities, with no requirements to diversify energy sources.

Posted in General / Authors: emurphy / Comments are closed

New York utility regulator approves a first-of-its-kind certified gas pilot program. Now what?

By Erin Murphy / Published: September 19, 2023

Con Edison East River Generation Station

The New York Public Service Commission recently approved a certified natural gas pilot program proposed by Con Edison, the gas and electric utility for much of New York City. Under the pilot, Con Edison may pay a premium for limited amounts of natural gas that is purportedly certified as having lower methane emissions than the gas Con Ed typically purchases to serve its customers. Methane, the principal component of natural gas, is a potent greenhouse gas that contributes to climate change. Research shows that a rapid, full-scale effort to reduce methane emissions — including from the oil and gas industry — could slow the current rate of warming by as much as 30%.

There are several reasons to be skeptical about whether this scheme delivers real environmental benefits and if it is worth the premium price Con Ed will pay, and ultimately pass along to customers. This pilot program should make good progress in answering these questions.

Posted in Methane regulatons / Authors: emurphy / Comments are closed

Proposed Acquisition of New Jersey Utilities Must be Consistent with Climate Goals

By Erin Murphy / Published: December 7, 2022

Two New Jersey gas utilities owned by South Jersey Industries, SJI,— South Jersey Gas and Elizabethtown Gas — are petitioning the New Jersey Board of Public Utilities, BPU, for approval to be acquired by JP Morgan-backed investment firm IIF. The companies’ proposal relies on a business model of continued expansion of the natural gas distribution system, and suggests that decarbonization can be achieved by blending hydrogen and biomethane into gas pipelines. But increasing gas use is not aligned with state climate policy, and the proposed blending options are not assured climate solutions. The BPU should impose conditions on the proposed transaction to ensure consistency with state climate goals. Additionally, all New Jersey policymakers must recognize the importance of avoiding wasteful investments in gas system expansion — in particular, legislation promoting gas utility spending on biomethane and hydrogen raises serious concerns.

Posted in Natural Gas, New Jersey / Comments are closed

The New York Utility Commission institutes a climate planning framework

By Erin Murphy / Published: May 19, 2022

The New York Public Service Commission is taking decisive action to orient the state’s utilities towards a clean energy future, consistent with the Climate Leadership and Community Protection Act. In two new orders, the commission established a collaborative long-term planning process for gas utilities, put in place a framework for greenhouse gas emissions reporting for all New York utilities and directed a statewide study to assess the impacts of transitioning away from the use of natural gas.

Posted in Natural Gas, New York / Comments are closed

New research shows Boston methane emissions continue, despite pipe replacement efforts

By Erin Murphy / Published: October 28, 2021

New peer-reviewed research published this week in the Proceedings of the National Academy of Sciences finds that methane emissions from natural gas infrastructure and buildings in the Boston area have remained consistently high over the last eight years, despite multiple programs aimed at reducing methane pipeline leakage.

This study indicates that more action is needed in Massachusetts and around the country to tackle the urban methane problem.

A potent greenhouse gas and the primary component of natural gas, methane has at least 80 times the warming power of carbon dioxide during the first 10-20 years after release. Emissions from oil and gas operations, livestock and other industries are responsible for at least 24% of current global warming.

Posted in Methane, Natural Gas / Comments are closed

Climate planning is key for New York’s gas infrastructure

By Erin Murphy / Published: October 25, 2021

Next month, the New York Public Service Commission will be deciding whether a rate case settlement proposal between National Grid’s upstate gas and electric utility (Niagara Mohawk) and other groups is in the public interest, and whether the proposal is consistent with New York’s Climate Leadership and Community Protection Act. This is the first major utility rate case to be conducted fully under the CLCPA as effective law, and makes clear the need for commission action to implement standards to achieve state climate goals.

But there is a cloud hanging over this proposal: the utility rate case paradigm guiding this proceeding is outdated and inconsistent with New York’s climate goals.

There is no question that to achieve the CLCPA targets — to reduce New York greenhouse gas emissions 40% by 2030 and 85% by 2050, below 1990 levels — natural gas use and combustion must decrease significantly. But the commission has not set clear standards to require that gas utilities plan for this transformational future, or to ensure utility rate applications and outcomes are consistent with the law. Decisive action is needed to address this disconnect.

Posted in Natural Gas, New York / Comments are closed