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Natural gas

Northeast Supply Enhancement Pipeline Resurfaces Amid Environmental Concerns and Economic Pressures

Strategic Insights

— 2 min read

New York Governor Kathy Hochul and state regulators have recently approved a long-term plan for National Grid, a company that provides gas to about two million customers in New York City and Long Island, which includes the proposal for the Northeast Supply Enhancement pipeline. The pipeline, which has been rejected three times in the past due to environmental concerns, could help reinforce the state's energy supply and alleviate reliability concerns, citing the recent gas service disruption in New York City. However, critics argue that the pipeline would saddle utility customers with billions of dollars in costs for unnecessary, dirty infrastructure, violating the state's climate law and harming coastal waters.

Key Takeaways:

  • The Northeast Supply Enhancement pipeline, which would deliver natural gas into the New York City area, has been shot down three times due to environmental concerns and has been resubmitted by Williams Companies.
  • The pipeline, if built, would cost National Grid customers about $1 billion, translating to a monthly energy bill increase of 3.5 percent or roughly $7.50 per month.
  • The pipeline's construction would allow National Grid to provide an ample gas supply, potentially pushing down costs and resulting in up to $6 billion in electricity cost savings statewide in the long term.
  • Critics argue that the pipeline violates the state's climate law and would harm coastal waters, while supporters claim it is necessary to ensure grid reliability and alleviate rising power demands.
  • The pipeline is undergoing an environmental assessment, and state agencies in New York and New Jersey are assessing the project to determine whether it meets water quality standards.
  • Governor Hochul is navigating a shaky economy with rising power demands and has signaled her willingness to work on the pipeline project again, citing the need for an all-of-the-above approach to energy production.
  • The pipeline would not specifically be prohibited under the Climate Act, but would go against the state's emissions reduction goals.

Statistics:

  • The pipeline, if built, would cost National Grid customers about $1 billion.
  • The monthly energy bill increase for customers would be about 3.5 percent or roughly $7.50 per month.
  • The pipeline's construction could result in up to $6 billion in electricity cost savings statewide in the long term.
  • New York aims to decrease greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050.
  • The state has recently passed the Climate Act, which requires New York to meet these emissions reduction goals.

Sources:

  • "Proposal for Northeast Supply Enhancement Pipeline Resurfaces Amid Environmental Concerns" by Dave Sanders, The New York Times (2023)
  • "State Regulators Approve Long-Term Plan for National Grid, Including Pipeline Proposal" by The Public Service Commission (2023)
  • "Governor Hochul Signals Willingness to Work on Pipeline Project Again" by Ken Lovett, Governor's Communications Adviser for Energy and Environment (2023)
  • "Critics Argue Pipeline Violates State's Climate Law and Harms Coastal Waters" by Mark Izeman, Senior Attorney for Environmental Health at the Natural Resources Defense Council (2023)
  • "Pipeline's Construction Would Cost National Grid Customers About $1 Billion" by National Grid (2023)
  • "State Department of Environmental Conservation Determination on Pipeline Dredging" by New York's Department of Environmental Conservation (2020)

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