Public Service Commission Makes Flawed Decision to Move Forward NESE Pipeline

ALBANY, NY – Today the New York State Public Service Commission effectively greenlighted a National Grid plan to contract for the capacity of the unnecessary Northeast Supply Enhancement (NESE) pipeline. National Grid made this request despite its latest demand forecast showing no need for new supply for more than 15 years.

The following is a reaction from Chris Casey, utility regulatory director, New York, at NRDC (Natural Resources Defense Council):

“The NESE pipeline is a climate and affordability boondoggle that New Yorkers should not bear. While we await the commission’s order to fully understand its decision, nothing in the record justifies saddling families and businesses across New York City and Long Island with billions in unnecessary costs over 15 years, increased air pollution, or new threats to our water quality and marine ecosystems. 

“National Grid’s own demand forecasts confirm there is no imminent reliability need—capacity is more than sufficient to meet peak demand well into the 2040s, even under unusually cold temperatures. The commission’s decision to signal its support for this fracked gas pipeline very likely contradicts state law, is not in the public interest, and will be vigorously challenged.”

Background

The proposed NESE project is a lateral extension of an existing pipeline, to increase supply capacity by 13 percent. National Grid’s filings show the project could impose billions of dollars in costs on its downstate gas customers over a 15-year period, while more than half of the projected benefits would accrue to electricity consumers upstate. This imbalance would result in a net increase in energy bills to National Grid’s gas customers across New York City and Long Island. 

Comments filed by NRDC supported Synapse Energy Economics analysis show that there is no evidence that NESE is necessary for system reliability—raising concerns about imposing unnecessary costs on customers. New York and New Jersey must still approve several permits for the NESE pipeline to be built.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law, and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Bozeman, MT, Beijing and Delhi (an office of NRDC India Pvt. Ltd). Visit us at www.nrdc.org and follow us on Twitter @NRDC.