Westchester Asking PSC to Have Con Edison Delay Imposition of Natural Gas Connection Moratorium

WHITE PLAINS—Westchester County Executive George Latimer said today that the county will be requesting Con Edison delay the implementation of its moratorium on new gas connections for most sections of the county that is set to begin on March 15.

Fearing the potential impacts the moratorium could have on the billions of dollars in new development projects in the pipeline, County Executive Latimer said that he is hopeful the utility will agree to delay the implementation date of the new natural gas connection ban that was announced on Friday, Jan. 15.

Latimer at a press conference held at the Westchester County Office Building in White Plains earlier today said that he has asked Westchester County director of operations Joan McDonald to contact New York State Public Service Commission Chairman & CEO John Rhodes to encourage Con Edison to delay the moratorium so the county could develop an action plan to deal with the impacts of the moratorium.

The County Executive confirmed a report in Globest.com that the county and state elected officials held a meeting with Con Edison executives last Thursday. The meeting, held at the Con Edison offices in Rye, was a fact-finding session to learn the reasons behind the imposition of the new natural gas connection moratorium on all of lower and central Westchester County. The ban will impact projects yet to break ground in Yonkers, New Rochelle, Mount Vernon, White Plains and other municipalities.

Projects that secure work orders for natural gas connections from the utility prior to the March 15^th deadline will have two years to complete their projects, according to New Rochelle Mayor Noam Bramson, who said at the press conference he hopes some modifications can be made to extend that two-year deadline.

“This moratorium is a serious move that will impact development in Westchester County—particularly in our major cities where development has been very much part of their economic revival efforts,” Latimer said. “Our goal in county government is to bring together all local governments and plan—together—how we must respond to this.”

Latimer, other county government officials and Mayor Bramson and White Plains Mayor Tom Roach, all said they believe that viable solutions to the energy supply problem in Westchester can be found.

However, all cautioned that if the moratorium were to last for an extended time it could have dramatic impacts on the Westchester County economy.

“The cities of Westchester County are going through historic renewal and it is years of painstaking efforts that put us in this position,” Mayor Bramson said. “To receive this sudden news from Con Edison is potentially very problematic— but I am confident that all of us working together can achieve a solution.” Mayor Bramson said that there are currently $4 billion of new projects contemplated in the Queen City.

White Plains Mayor Roach, who said the moratorium will have not much impact on current projects in the city, added, “The County Executive’s leadership on this issue has been tremendous. Part of what we need to do is get all of the facts on the table for developers so we can work together to make the changes we need to make to keep our economy moving forward.”

In addition to requesting a delay in the natural gas connection moratorium beyond March 15, the county is compiling a full list of projects and their timetables for construction to determine the moratorium’s true impacts. The county will also hire energy consultants to advise county and local governments through the regulatory process and to determine the responsibilities and powers of the New York State Public Service Commission for example.

Other initiatives announced by Latimer call for the county’s director of energy & sustainability Pete McCartt to conduct a survey to explore how the county can reduce gas usage at its facilities and to work with the business community, and other entities, to help them navigate the moratorium and how it relates to development.

Latimer also said that he will testify at an upcoming hearing of the New York State Public Service Commission scheduled for sometime next week.

Con Edison released a statement in response to the county’s planned request for a delay in the natural gas connection moratorium that at least on the surface seemed to indicate a reluctance to change the March 15^th implementation date.

“We understand the difficulties the temporary natural gas moratorium may present to new customers. The moratorium is needed because of gas supply constraints on interstate pipelines, which limit supply deliveries to parts of our service area on the coldest winter days,” Con Edison stated. “We continue to work with our customers to help them find other options including clean energy alternatives and our Smart Solutions program. We are committed to helping the state achieve its environmental and energy goals.

The Business Council of Westchester, which has established a task force in response to the impending new natural gas connection moratorium, was scheduled to meet with Con Edison officials today to discuss the issue, according to multiple sources.

Perhaps in a case of bad timing, on Jan. 31, Con Edison announced its request to the Public Service Commission for rate hikes.

Con Edison is seeking approval for new electric and gas delivery rates in 2020 to fund infrastructure and other investments that it says “would give customers more convenient access to clean, energy-saving products; enhance safety and reliability; and make it easier for customers to get information about their usage and service.”

The proposal seeks an additional $485 million to run the company’s electric delivery system in 2020 and $210 million for the natural gas delivery system.

The monthly electric bill for a New York City residential customer using 300 kilowatt hours would increase $4.45 to $81.78, an increase of 5.8% (8.4% for delivery). The bill for a Westchester County customer using 450 kilowatt hours would increase $6.10 to $114.04, an increase of 5.7% (8.5% for delivery). For a typical commercial customer using 10,800 kilowatt hours with a peak demand of 30 kilowatts, the monthly bill would increase $80.96 to $1,970.67, an increase of 4.3% (8% on delivery).

The average monthly bill for a residential gas customer using on average 100 therms per month would increase $17.28 to $176.34, an increase of 10.9%, or 15.8% for delivery.