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.