MEMORANDUM IN OPPOSITION, S.8421, Sen. Liz Krueger, The Customer Savings and Reliability Act

New Yorkers for Affordable Energy (NYAE), representing local labor, business, and industry leaders, supports the development of clean, reliable, and affordable energy sources for residential and business consumers. Understanding the necessity of natural gas in the State economy and daily life, New Yorkers for Affordable Energy STRONGLY OPPOSES the above-referenced bill. While New Yorkers for Affordable Energy welcomes and supports access to renewable energy, we reject the “Customer Savings and Reliability Act “because it will raise utility bills, eliminate good-paying jobs, and put the government rather than consumers in charge of their energy choices. The fact that it has been renamed and rebranded as” The Customer Savings and Reliability Act” is ironic, since the contents of the bill will INCREASE customer costs and THREATEN reliability.

Natural gas is an integral component of every New Yorker’s life. According to the U.S. Energy Information Administration (EIA), natural gas fuels 60 percent of New York households, and 40 percent of the State’s electricity derives from natural gas-run power plants. Not to mention, natural gas leads the United States’ efforts toward a future of clean energy. Natural gas provides reliable energy supplies for renewable energy production like wind and solar. According to the Western Energy Alliance, it is the number one reason the United States has reduced its greenhouse gas emissions. The Customer Savings and Reliability Act ignores these facts and recklessly amends several sections of New York State Law, initiating a system wide overhaul of New York State’s natural gas infrastructure, which will lead to the abandonment of this vital infrastructure over time.

This bill implements several changes that are harmful to workers and consumers with limited safeguards. The Customer Service and Reliability Act also eliminates the “100-foot rule,” which obligates utility companies to connect any consumer within 100 feet of a gas line to the main line, free of charge. One of our members, Power and Construction Group, estimates layoffs of over 100 people, one-third of their workforce, due to this one amendment. Perhaps worse, the bill allows the Public Service Commission to discontinue new gas service after 2030. It also allows the PSC to decommission gas service because it adds several climate and environmental justice concerns to the Commissions mission, which has always been primarily to provide safe and reliable service to New York Ratepayers. According to the New York Independent System Operator (NYISO), New York will need at least 1600 ADDIITONAL megawatts of power by 2030 due to increased demand and new industrial projects. Forcing consumers to transition from gas to electric heat could run this new demand up to 4000 megawatts. Where will this power come from? The State is missing all its renewable targets, and those sources of energy will never meet the newly predicted demand. Will we build more gas plants, while denying people gas heat? The very thought is absurd and counterproductive.

The Customer Savings and Reliability Act As is in reality neither. It’s a blueprint for higher costs and unreliable service. For the above stated reasons, New Yorkers for Affordable Energy strongly opposes S8421.