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Business Coalition Backs Northeast Supply Enhancement Pipeline

Illustration of a natural gas pipeline

News Summary

A coalition of over a dozen businesses supports the controversial Northeast Supply Enhancement (NESE) pipeline, aimed at transporting natural gas to NYC and Long Island amid rising energy demands. Despite backing from President Trump, the project faces opposition over environmental concerns and regulatory challenges. The New York State Public Service Commission is currently reviewing National Grid’s gas supply plan, with public comments due by September 5. Critics argue that the NESE pipeline contradicts the state’s climate goals as energy costs rise for customers.

New York City – A coalition of more than a dozen businesses has come together to endorse the controversial Northeast Supply Enhancement (NESE) pipeline project, which is proposed to transport natural gas from New Jersey to New York City and Long Island. The backing comes amid rising gas costs and increasing energy demand in the region.

The NESE project has received support from President Donald Trump, although it has faced previous rejections from state regulators. Currently, the New York State Public Service Commission (PSC) is evaluating National Grid’s long-term gas supply plan, which has morphed into a wider discussion about the future of the pipeline. The commission is expected to finish accepting public comments on the gas plan by September 5, 2021.

The business coalition, which includes letters with similar language supporting the project, argues that the NESE pipeline is essential for energy reliability. They assert that it would help reduce the state’s dependence on oil, ultimately yielding savings for New Yorkers on their electricity costs. National Grid estimates that gas customers downstate could see an average monthly cost increase of $7.50 as a result of the project.

Despite the business support, the project has encountered significant public opposition. Thousands of comments have been submitted countering the pipeline, raising alarms about issues related to climate change, the risk of toxic chemical exposure, and anticipated additional construction costs that could exceed $3 billion. Critics claim that the business backing is a concerted effort to overshadow the dissenting voices in the community, a sentiment echoed by advocacy groups such as the Sane Energy Project.

Metadata analysis of the letters submitted to the PSC indicates a connection to Greenberg Traurig, a lobbying firm representing National Grid, revealing patterns that suggest possible coordination in messaging. This has raised questions about the authenticity of the support being portrayed by the businesses involved.

In response to the growing energy demands, particularly from industries like artificial intelligence, National Grid contends that a reliable gas supply is critical. The utility’s addendum to their gas supply plan cites energy shortages and delays in renewable energy projects as primary reasons for revisiting the need for the NESE pipeline. Nonetheless, critics remain concerned that the plan contradicts New York’s climate goals and the imperative for a shift away from fossil fuels.

The context of energy policy in New York is further complicated by legislative developments. The New York HEAT Act has been proposed to address financial burdens associated with new gas hookups, including setting income caps for energy bills. Advocates for this act are urging the state governor to support and fund this initiative as a means to alleviate economic pressure on residents.

In regards to the affordability of energy, rate increases for National Grid customers are projected to surge to nearly $720 per year by 2026. These increases have been justified by the utility as necessary for infrastructure improvements and investment in renewable energy integration.

Despite the coalition’s support for the NESE pipeline, the pipeline has faced repeated refusals from environmental regulators in the past. The existing opposition underscores the clash between business interests and environmental advocacy, reflecting the challenges within New York’s energy landscape where hydrocarbon production is being encouraged under the Trump administration while many renewable energy initiatives remain stalled.

The current landscape poses critical questions about energy reliability, environmental responsibility, and economic impacts as both supporters and detractors weigh in on the future of the NESE pipeline and New York’s broader energy policies.

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Additional Resources

STAFF HERE NEW YORK WRITER
Author: STAFF HERE NEW YORK WRITER

NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

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