We will support critical expansions to the city's natural gas infrastructure
New power plants and expanded Clean DG will both require the use of natural gas, the cleanest-burning fossil fuel. Already, natural gas fuels 80% of our power plants and more than a quarter of all energy used in buildings-and in the coming decade its use will continue to rise.

But there are two challenges to reliable, affordable supply of natural gas in New York.

Four long pipelines carry natural gas into the city, extending from the Gulf of Mexico and the Canadian border. On the hottest and coldest days of the year, our demand already exceeds the capacity of these pipelines by up to 1.2 billion cubic feet. We have been able to ensure reliable heating and power by keeping enough gas in storage to cover this gap, but as demand continues to increase it will become more difficult to meet the need.

This delivery constraint leaves us vulnerable to any disruptions along the pipelines or unexpected temperature swings. New York already has some of the highest natural gas prices in the nation. But when cold weather strikes, the spike in demand propels prices even higher. For example, during a cold snap in February 2003, natural gas prices went from $7.50 to $28/MMBtu in one day and momentarily reached $40/MMbtu. While other regions in the Northeast and Midwest were experiencing a similar cold front, the price impact was not nearly as dramatic.

As the demand for heat and power grows, these problems will only get worse-unless we take action to expand our natural gas supply. That's why we will support siting and permitting applications to the Federal Energy Regulatory Commission and other relevant regulatory authorities for additions to our natural gas infrastructure. Currently, there are several active proposals for pipeline projects and liquefied natural gas ("LNG") terminals that would expand our access to gas.

Given how critical new natural gas infrastructure is to our long-term energy security, the City will support the development of new infrastructure projects that are designed to be sensitive to environmental and community needs.

Progress (as of 4/22/08):
The City is undertaking an assessment of long-term gas supply reliability, including both pipeline enhancements and potential other sources of natural gas, the dominant fossil fuel for city power generation and other uses.