With Con Edison proposing new rate increases, millions of New Yorkers will be paying close to $2,000 more each year in energy costs, another serious blow to our ever-shrinking wallets in the name of green energy. Con Edison has stated the hikes are necessary to meet the new demands on its citywide system — and we would agree.
Over the next decade, New Yorkers should brace for a steady wave of rising energy costs as new infrastructure will be needed to fulfill the all-electric construction edict enacted here. Starting in 2024, no natural gas hookups were permitted in new construction and major renovations in New York City, and that has placed a major strain on the system. Nearly 6,000 permits were issued for new buildings last year alone, and that number is certain to rise as more and more companies choose to mandate on-site work schedules.
New York’s power grid was not designed to handle an all-electric city, and such a massive conversion would require years of careful design, planning and collaboration among industry stakeholders. None of that happened when our elected officials implemented the gas ban — without proper industry input — and therefore, they set the stage for the pricing drama we are seeing unfold today.
Natural gas provides power for electricity, and this is the case for 38% of all electricity in the United States. In New York, that number is much higher where approximately 65% of electricity is produced by fossil fuels, the cleanest and most efficient being natural gas. Experts have long predicted that prohibiting new gas hookups will lead to significant socio-economic challenges and electric power supply concerns, and unfortunately, we are now seeing the first local evidence of this.
Creating healthier spaces is an important goal, and our members are committed to reducing our environmental impact with more sustainable materials and methods. Yet leaping to an all-electric mandate without the right infrastructure is an economic disaster waiting to happen, and this new electrical rate increase — up to 11.4% per household— is the first of many financial jolts to our personal budgets.
In response, Gov. Hochul has called for the state Public Service Commission to reject the rate increase. That’s a good start, but the real culprit lies within the city’s well-intentioned but misguided green energy push that outlawed the use of natural gas. We suggest a more reasonable, more realistic approach that acknowledges both the importance of sustainable building and the need to slow the drive toward green energy so we can ensure our infrastructure is adequately equipped.
We call for the following four steps:
- A temporary suspension of the city’s gas ban to prevent future rate increases;
- A creation of a citywide task force of public and private industry leaders to study the feasibility, impact and timeline for all-electric implementation;
- A presentation of the task force’s findings in a series of public hearings; and
- A pledge to explore the use of alternative fuels — such as biodiesel — for building heating options that can help meet the city and state’s clean energy goals.
Natural gas is our most abundant fuel and we need it to protect the essential elements of our society. For example, the state just approved an expansion of the 414-mile Iroquois gas pipeline because other power sources, such as wind, solar and hydro, are not presently viable on any large scale. In the event of another citywide emergency, the impact on the electric grid may mean there will be no redundant heating and cooking source, leading to an unprecedented catastrophe.
The city also must continue to explore the use of biofuels, which offer a low-cost solution for decarbonization and are being deployed to reduce emissions in buildings and vehicle fleets — including the Staten Island Ferry. Biofuels, which are manufactured domestically from vegetable oils and recycled restaurant grease, have been deployed for the past decade and can be expanded immediately in homes and businesses using existing heating systems.
The need for a real conversation on natural gas and biofuels has never been greater, but that dialogue must be based on science, facts and feasibility, not pure politics. We are urging our elected leaders to meet us at the table — so we can learn from this current crisis and prevent one that is even more dire.
Our wallets — and our lives — depend on it.
McIver is the executive director of the Plumbing Foundation, City of New York, a non-profit association representing licensed contracting firms, engineering associations, manufacturers and suppliers. Lacertosa is CEO of the New York State Energy Coalition, Inc. DeLair is the executive director of the Empire State Energy Association, Inc.