NYC Tees Itself Up for Economic Chaos with Vote to Ban NatGas
Two weeks ago MDN told you that New York City is actively considering a ban on new customers from hooking up for natural gas delivery throughout the city, and that Consolidated Edison, one of the biggest utilities that flows gas in NYC, is shockingly promoting the ban (see ConEd Turns Traitor – Supports Natural Gas Ban in NYC Buildings). The vote will be taken today and by all accounts, it will pass. Of course, Communist Mayor Bill de Blasio will sign it into law. This is economic suicide. You can see the coming exodus from NYC.
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After signing the Declaration of Independence, Benjamin Franklin is reported to have said: “We must all hang together, or, most assuredly, we shall all hang separately.” Someone at Consolidated Edison (ConEd) never studied history. ConEd has joined hands with the very people that seek to destroy the fossil fuel industry in a campaign to pressure New York City into adopting a new law prohibiting new customers from hooking up for natural gas delivery. Even though ConEd itself is one of two primary suppliers of natural gas in NYC. Why do such a foolish thing?
New York Gov. Andrew Cuomo and his successor Kathy Hochul have blocked new natural gas pipelines from the “fracked gas” fields of neighboring Pennsylvania. They seem to be congenitally allergic to fossil fuels. Haters of natural gas. Cuomo also hates nuclear energy. He insisted on shutting down the Indian Point nuclear power plant that once provided 25% of New York City’s electricity. All that juice has to come from somewhere. Thus far, one type of energy is standing in the gap to increase electricity production and prevent mass blackouts: natural gas-fired power plants.
Last week MDN told you about a spike in natural gas and electric rates in New York City and New England, thanks to the cold snap and lack of natural gas pipelines into the region (see 
Two of New York City’s five retirement pension funds, representing 70% of the $239.8 billion retirement system, announced yesterday they will divest their portfolios of all investments in fossil fuel companies. The two pension funds together own roughly $4 billion worth of fossil fuel securities. The divestment will take place gradually, over the next five years. A third pension fund with $7.8 billion under management is expected to do the same, soon.
It’s not unusual for companies in the business of delivering methane molecules to customers (the local gas utility company) to invest in the long-haul gas pipelines that deliver gas into their system. Consolidated Edison (ConEd), which serves much of New York City and its suburbs with natural gas, is one such company.
New York City is home to some 15 “peaker plants”–small electric generating plants that fire up to provide electricity during times of high demand when the regular electric grid can’t handle the load. The plants are fueled mostly by oil, some are fueled by natural gas. NRG Energy wants to convert its old oil-fired peakers with natural gas, which is far cleaner and more efficient. However, a group of hardened Socialist Democrats (actually Communists) who have won primaries over the summer, unseating more moderate Democrats, are demanding all of the peakers be shut down. How’s that for stupid?
New York City Mayor Bill de Blasio is about as power-mad as former NYC Mayor Mike Bloomberg. Notice how Dems love to run other people’s lives for them? The latest attempt at total control of every citizen’s life is to ban the use of fossil fuels in the city. de Blasio recently announced his administration wants to end the use of natural gas and fuel oil in buildings throughout the city by 2040. What’s not entirely clear is whether he will force existing buildings to retrofit to all-electric (or steam created by electric, etc.), or whether this applies only to new buildings and those receiving renovations. Any way you slice it, NYC is heading for a disaster of biblical proportions if this policy gets adopted.
If this doesn’t beat all. New York Gov. Andrew Cuomo refused to allow a new pipeline to get built, so National Grid, the gas utility for all of Long Island and part of New York City, had to ban new customer hook-ups. Cuomo blamed National Grid and got the state Public Service Commission (PSC) to issue an edict forcing National Grid to add more than 1,000 new customers (see 
Earlier this year, under the direction of New York Gov. Andrew Cuomo, the state issued new draft regulations aimed at shutting down most of the state’s “peaker plants”–small electric generating plants that produce electricity for brief periods during high demand (see 
Andrew Cuomo has himself painted into a corner. In recent years he’s pandered to his radical/left environmental base by blocking natural gas pipelines. Another such project now must be decided, by May 16. Williams’ Northeast Supply Enhancement (NESE) project needs a water crossing permit from New York State. If Cuomo rejects the project, both Consolidated Edison and National Grid, the two utilities that supply New York City and its suburbs, including all of Long Island, with natural gas, have said they will slap a moratorium on all new gas customer hookups. Either way Andy is toast. Which way will he decide?
In a new and important development in New York State’s war against natural gas pipelines, local utility Consolidated Edison says if the Williams Northeast Supply Enhancement (NESE) pipeline project is delayed or canceled, not only will Westchester suburbanites continue to be subject to Con Ed’s ban on new customers from hooking up to receive natgas, so too will customers who live in New York City itself.
Andrew Cuomo, contrary to the picture he attempts to paint for gullible voters and the even more gullible mainstream news reporters, is a very weak “leader.” In what has become an identifiable pattern, when Cuomo is put under pressure by the fringe left environmental lobby, he folds to that pressure like a cheap suit. Totally gives in and accedes to whatever weird demands they make–like no new gas pipelines. Even when it economically hurts the state.