But utilities say they need additional supply to meet growing customer demand
By Tom Johnson, NJ Spotlight
In a rare alliance, the New Jersey Board of Public Utilities and the state Division of Rate Counsel are jointly fighting the expansion of an interstate natural gas pipeline by arguing consumers should not have to pay for the unneeded gas capacity that would be provided by the project.
In a filing with the Federal Energy Regulatory Commission, the two state agencies contend that a study adopted by the BPU earlier this summer found that New Jersey is unlikely to experience shortages in natural gas through the end of this decade.
That conclusion is contested by the state’s four gas utilities, all of which have agreed to purchase additional gas capacity for the 2024 winter heating season. Transcontinental Gas Pipeline Company (Transco) designed this project to increase the capacity of its existing pipeline system by 829,000 dekatherms per day in Pennsylvania, New Jersey, and Maryland.
Feuding over fossil fuel
The dispute is meaningful because it comes at a time when climate advocates have been pressing the Murphy administration to impose a moratorium on new fossil-fuel projects, a stance so far rejected by officials.
“This is a historic moment for the BPU and Rate Counsel to acknowledge the obvious. We do not need more fracked gas in New Jersey,’’ said Doug O’Malley, director of Environment New Jersey.
NJ natural-gas supply adequate through 2030, a new analysis indicates
“What’s significant is the BPU is taking a step toward looking at the broader issues and whether this project is needed,’’ said Tom Gilbert, an executive director of the New Jersey Conservation Foundation. “It is a huge change in their operating procedures.’’
In the past, Gilbert’s organization and the Rate Counsel had opposed a controversial 120-mile pipeline in New Jersey and Pennsylvania that would have crossed waterways and open spaces on this side of the Delaware River. The New Jersey portion of the so-called PennEast project was eventually dropped because of repeated delays.
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