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New York regulators approve two utility thermal energy network pilots worth $111.5 million

  • National Fuel Gas project in Buffalo authorized for $61.4 million
  • Orange & Rockland project in Haverstraw authorized for $50.1 million
  • Commission declines nine other proposed pilots totaling over $1 billion
Illustrative image of a power plant for a Headwaters Wire storyPhoto: Wikimedia Commons - Quintin Soloviev, CC BY 4.0
Illustrative photo.

— The New York State Public Service Commission authorized two utility thermal energy network pilot projects in Buffalo and Haverstraw to move forward with customer enrollment and construction, using thermal energy from wastewater and geothermal borefields to heat and cool connected buildings.

The projects represent a $111.5 million investment and will use $93 million from the State's Sustainable Futures Program, which the commission said lowers the cost to ratepayers of National Fuel Gas Distribution Corp. (NFG) and Orange & Rockland Utilities, Inc. (O&R).

Two utility thermal energy network pilots ($ million)

NFG's Buffalo project, authorized for $61.4 million, will use a 4-pipe network to supply heating and cooling to 12 affordable multifamily buildings and a municipal building in a disadvantaged community in downtown Buffalo, according to the commission. The commission said it will replace hot water boilers that are part of the existing Buffalo District Energy System.

O&R's West Loop project in the Village of Haverstraw, authorized for $50.1 million, will connect municipal, commercial and residential buildings through a single pipe ambient temperature loop covering approximately 10 acres, the commission said.

"Today marks an important milestone with the approval of two innovative projects that will meet New Yorkers' heating and cooling needs while lowering building emissions and creating good paying jobs," Commission Chair Rory M. Christian said.

The commission declined to advance the other nine proposed pilot projects, which totaled over $1 billion in requested ratepayer funds, and addressed recovery of costs incurred to date.

The order also directed Department of Public Service staff to gather feedback from utilities and stakeholders on lessons learned. The commission said that feedback will inform guidance on future proposals and the development of a Thermal Energy Network Roadmap called for in the State Energy Plan.