At Cooperative Extension, we connect decision-makers with the knowledge they need to make informed decisions about energy and carbon emissions. This year, that looked like our Energy and Climate Change team publicly commenting on both the widely publicized rate case (in which NYSEG proposes a roughly 33% increase in delivery charges on electric and gas service), and the less well-known Long-Term Gas Decommissioning Plan process.

New York State Electric and Gas, despite the name, is not an entity of the State of New York. It is a private company that, along with Rochester Gas and Electric, is owned by Avangrid, which is part of the multinational Iberdrola Group of utility companies. In addition to failing major audits earlier this year (link) and widely publicized criticism of customer service practices, NYSEG and RG&E were also required to file comprehensive long-term plans for decommissioning their gas systems.

In May of 2022, the New York State Public Service Commission (PSC), the government body that regulates utility companies, ordered the eleven largest utility companies in the state to undertake a natural gas system planning process. As a utility company serving more than 40% of upstate New York, NYSEG was one of the companies required to comply. The PSC listed several justifications for issuing the order, including the need for utility companies to align with New York State emissions targets under the Climate Leadership and Community Protection Act (CLCPA).

The plan originally filed with the PSC was approved. However, the PSC determined that additional attention was needed for gas system decommissioning and NYSEG was ordered to produce a gas decommissioning plan. Cornell Cooperative Extension (CCE) Tompkins County participated in that process earlier this year, submitting comments to NYSEG about our experience with energy work in the area. Specifically, we commented on our involvement with the Lansing Non-Pipes Alternatives (NPA) program, which was referenced by both the PSC and NYSEG several times in the gas planning process.

The Lansing NPA is a NYSEG-funded program that aims to reduce gas use in Lansing. It was developed in response to ongoing gas reliability issues in the area and includes a portfolio of gas-reduction projects. Among them is an incentive program that offers residents and businesses additional funding to switch from natural gas heating systems to electric heat pumps. The incentives are substantial, and Lansing residents can install heat pumps at a fraction of the typical upfront cost.

Since the fall of 2022, CCE Tompkins has provided outreach and education support for the Lansing NPA program, gaining unique insight into the barriers that many people face in electrifying their homes. We’ve repeatedly heard from residents that the upfront cost of electrification can be cost-prohibitive, even factoring in available incentives. For residents who can afford installation costs, recent increases in electric rates can make the cost of operating heat pumps burdensome when compared to natural gas.

However, these problems are not resolved by retaining and reinvesting in natural gas infrastructure. A report by the Building Decarbonization Coalition explains why the current approach of customer-driven electrification is particularly damaging to low and moderate-income (LMI) households. Those who can afford to convert to heat pumps typically do so when they can. Customers who can’t afford to switch (or, for whatever reason, don’t want to) are left with the same size of natural gas system statewide, while the costs for maintaining that natural gas infrastructure falls upon fewer paying customers.  Many of these remaining customers will likely face spiraling utility bills as gas companies reinvest in oversized gas distribution systems. Typically, those customers were already poorer and less able to switch service providers.

What this also illustrates is that addressing emissions and providing meaningful benefits from infrastructure investment to disadvantaged populations are one and the same problem. Careful system planning would allow for more significant natural gas reductions by effectively taking large sections offline together. It also eases the cost burden on low-income families by ensuring that segments are decommissioned and that affordable electrification options are made available at scale.

To support the state’s ongoing electrification efforts, it’s important that utility companies and the PSC are aware of the challenges that residents face. With boots on the ground, CCE Tompkins is well-positioned to share information gathered from community members with larger decision-making bodies. You can read the full comments that CCE Tompkins submitted to the PSC below.