New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation Commit to Conducting Seven Special Studies to Enhance Energy Efficiency and Climate Leadership

Strategic Insights -

New York State Electric & Gas Corporation (NYSEG) and Rochester Gas and Electric Corporation (RG&E) have agreed to conduct seven special studies over the term of their rate plan, with a total budget of $750,000. The studies aim to enhance energy efficiency, reduce greenhouse gas emissions, and promote climate leadership. The Companies will consult with stakeholders, including the New York State Energy Research and Development Authority and the New York State Department of Public Service Staff, to ensure the studies meet the needs of the community.

Key Takeaways:

  • The Companies will conduct seven special studies, including a Senior Customer Study for Customer Service, a Renewable Natural Gas Study, a Geothermal - District Energy Study, an Overall Natural Gas and Grid Modernization Report, a Depreciation Study Reflecting the Climate Leadership and Community Protection Act (CLCPA), and a Street Light Replacement Cost Study.
  • The studies will provide actionable measures to be implemented for the benefit of seniors, and will examine the feasibility of deploying geothermal district energy systems in the service territory and develop plans for pilot projects.
  • The Companies will complete and file with the Commission a comprehensive report that evaluates how the Companies' businesses may evolve in the decades ahead, and identifies the potential issues and strategies related to reducing natural gas usage and increasing electricity usage as an alternative.
  • The studies will involve coordinated efforts with Staff and interested parties, and will be conducted in accordance with the CLCPA.
  • The Companies will provide interested parties with the proposed scope of the studies in advance of performing any study, and will provide the results of each study to interested parties upon completion.

Statistics:

  • Total budget for the studies: $750,000
  • Expected costs for items 5 and 6: between $400,000 and $500,000
  • Allocation of costs between NYSEG and RG&E: using the Common Allocation Factors contained in Appendix GG, Common Allocation Factors
  • Timeline for completion of Overall Natural Gas and Grid Modernization Report: 18 months from Commission order approving the Joint Proposal
  • Depreciation Study Reflecting the CLCPA submission deadline: December 31, 2021

Sources:

  • Cases 19-E-0378 et al. Appendix N Joint Proposal, New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation
  • Appendix GG, Common Allocation Factors, New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation