For Now, Natural Gas Is Here to Stay

The following first appeared in the opinion pages of the Connecticut Post. It is reposted here with permission.

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Across Connecticut and around the country, the turn toward sustainable sources of energy is both real and urgent.

We’ve seen an explosion in solar, fuel cells, wind, hydropower, and many more sources of clean, renewable energy sources, while coal and oil power plants are decommissioned or transitioned to cleaner fuel.

More innovation is happening every single day in technologies like batteries and sources such as hydrogen. 

All that is great news for our economy and even better news for the planet. Despite our optimism and enthusiasm, however, we must also be realistic: many of these clean energy technologies are in the embryonic stage.

The offshore wind industry has begun in Massachusetts, thanks to the early investment of a few forward-looking companies several years ago, but a number of projects have stalled due to unfavorable economic conditions.

Siting large solar projects is becoming increasingly difficult due to concerns over noise and deforestation. Hydropower lacks a foothold in Connecticut, comprising only 1% of electricity generation in the state.

Demand Surge

Given the projected surge in near- and long-term electricity demand, it will be many more years, perhaps decades, before we’re ready to fully downscale or take all our current energy infrastructure, which is mainly fueled by natural gas, offline.

Speaking at CBIA’s recent Energy & Environment Conference, Senator Norm Needleman, co-chair of the legislature’s Energy and Technology Committee, spoke about a “three-legged stool of reliability, cost, and climate change mitigation.”

“We have to keep that balanced, we have to be thoughtful,” he said. “I’m not that gung-ho advocate for phasing out fossil fuels tomorrow. But over the next 30-40-50 years, I hope we can all agree that fossil fuels need to be phased out.”

With New England’s #energy demand rising, @NEPowerGen's Dan Dolan told CBIA’s 2024 Energy & Environment Conference that investments are needed. “Energy efficiency is great, but we’re going to need to produce a whole lot more,” says Dolan.https://t.co/cOU94S8kul

— CBIA (@CBIANews) June 24, 2024

Speaking at the same conference, Dan Dolan, president of the New England Power Generators Association, explained that decommissioned coal and oil electricity generators were replaced not by solar and wind but by natural gas: at any given time, approximately half the regional electric grid is running on this fuel.

The shift from coal and oil to natural gas has been the biggest contributor to a reduction in greenhouse gasses across the Northeast, which is why Connecticut, until recently, saw it as a necessary bridge to the state’s net-zero goal.

For the time being, natural gas is here to stay. It is incumbent on the utilities that distribute this fuel to ensure it is as safe, reliable, and as environmentally conscientious as possible.

Investments

Now is the time for these companies to invest more in improving their systems, not less, given that Connecticut has some of the oldest infrastructure in the country, much of it more than 100 years old.

Natural gas distribution companies must be allowed, even encouraged, to invest in aging infrastructure to ensure customers continue receiving reliable, safe, and increasingly sustainable service.

Many projects focus on replacing the network of leak-prone cast iron and bare-steel pipes with high-grade reinforced plastic. They also reduce environmentally problematic methane leaks associated with the old, outdated pipe network.

Companies require approval and partnership from state regulators and policymakers to make essential investments.

It’s worth noting these projects have been highly encouraged at the federal level since the Obama administration.

State regulators play an essential role in the success of these projects. By providing capital for investment, they enable gas distribution companies to maintain and improve infrastructure.

Natural gas distribution companies in Connecticut are regulated utilities operating without competition, meaning companies require approval and partnership from state regulators and policymakers to make essential investments.

Economic Development

Unfortunately, all too often in Connecticut we see the opposite approach. Rather than following the model of neighboring states like New York and Massachusetts that partner with utilities to make the investments the system needs, Connecticut regulators have blocked funding.

As infrastructure continues to age and sustainability becomes increasingly important, regulators must provide utility companies with the needed capital to keep up with projects that are essential to delivering safe and reliable energy.

These investments are also necessary to expand economic development and further grow our state’s workforce to meet the demand for data centers and evolving technologies like AI.

It’s time for Connecticut policymakers to work with utilities to meet our growing energy demands.

Natural gas will be with us for years to come, and as electrification scales up for tomorrow, gas distribution companies are equipped today to be partners with the state to ensure it is distributed safely and reliably.

But that cannot be done if vital infrastructure improvements are halted in the name of valuable, but contradictory, objectives.

In solving these urgent issues, it’s time for Connecticut policymakers to work with utilities to meet our growing energy demands while supporting the build out of additional sustainable sources of energy.

If they fail to do so, both our climate and economic sustainability are at risk.

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About the author: Chris DiPentima is the president and CEO of CBIA, Connecticut’s largest business organization.