Darien advances to Section 1 Little League baseball final
https://www.norwalkcitizenonline.com/news/article/Governor-has-plan-for-switch-to-natural-gas-3928787.php
Governor has plan for switch to natural gas
Plan would switch 250,000 state households from oil in 7 years
Bill Cummings
Updated 3:54 pm EDT, Wednesday, October 10, 2012
Gov. Dannel P. Malloy wants Connecticut residents and businesses to switch from oil furnaces to cleaner natural gas service, and ratepayers could end up covering the cost of the initiative.
Malloy last Friday released a Comprehensive Energy Strategy that calls for moving 250,000 households and 75 percent of businesses from oil to natural gas within seven years. Switching to gas can lower the average household's yearly heating bill from $3,400 a year to $1,600, and new gas lines to serve additional customers could create 7,000 construction jobs, the governor said.
"A comprehensive energy strategy can help us create jobs, it can make our state's businesses more competitive and it can ensure that we preserve and protect our environment for generations to come," Malloy told members of the Connecticut Business and Industry Association during a speech in Cromwell.
The strategy outlined by the governor is a draft, and Malloy said hearings will take place over the coming months to seek input from a variety of sources.
Malloy laid out a series of expenses: $1.4 billion to lay 900 miles of new gas lines for customers who do not live near a main line, and $914 million to bring gas service to 40,000 households now along a main line and 187,000 households which are 150 feet from a line.
"Let me be clear -- this is not a mandate for the consumption of natural gas," Malloy said. "All this plan does is put Connecticut on equal ground with other states that have already made these investments, creating jobs for residents in the process."
The governor also hinted at a combination of sources to pay for the initiative, saying the cost of laying new gas lines could be financed by the utility companies and recouped from customers through distribution fees. He said private banks could be encouraged to issue low-cost loans to homeowners who convert to gas furnaces.
The governor's plan would increase the number of Connecticut households with gas service from 31 percent now to 50 percent in seven years. He said neighboring states are already ahead of Connecticut; 47 percent of Massachusetts and Rhode Island households now use gas, and 72 percent of New Jersey households heat with gas.
A spokesman for the Connecticut Fund for the Environment said while energy efficiency and cleaner sources is an admirable goal, Malloy's plan is "short sighted" because it replaces a dependency on oil with gas.
"While natural gas is better in some respects than other fossil fuels, it is not sufficient by itself to reach Connecticut's environmental goals," said Mark LeBel, a CFE energy fellow. "Investment in energy efficiency and renewables shield consumers from unexpected changes in fuel markets, and we shouldn't underinvest just because natural gas prices are appealing at the moment."
Michael West, a spokesman for UIL Holdings, which owns the Southern Connecticut Gas Co. and the Connecticut Natural Gas Co., said the cost of laying new lines is generally recouped from customers. He said the ratio of how much customers pay is regulated by the state.
"But let's begin the discussion," West said. "Gas is clean and environmentally friendly. We should find ways to utilize the resource and it's important to have a comprehensive plan. We now have to craft the best way to go forward."
West said customers already are calling his company and asking to switch to gas, partly because gas prices are now far lower than the cost of heating oil.
About the plan In Connecticut, 31 percent of households use gas for heat. In Massachusetts and Rhode Island, about 47 percent of customers use gas. About 72 percent in New Jersey use gas. The national average for gas use is 53 percent. Gov. Dannel P. Malloy's proposal would bring Connecticut gas use to 50 percent in seven years. That means 250,000 residential customers would switch to gas for heating. Construction of new gas lines to serve neighborhoods could create 7,000 construction jobs. Costs: $815 million to connect customers now served by gas lines to connect their homes; $1.4 billion to lay 900 miles of new lines for those without gas service. This would be financed by gas companies and repaid by distribution charges on new customer bills. The average Connecticut customer pays $1,600 a year to heat with gas or $3,400 a year to heat with oil. Sources: Connecticut Department of Energy and Environmental Protection and Gov. Dannel P. Malloy's Office