Buffalo, N.Y. (WBEN) - The leader of National Fuel Gas minced no words during an earnings conference call Friday, attacking the New York State energy plan to shift to all-electric as 'incredibly irresponsible' and called for a more reasoned approach.
"This is an incredibly irresponsible approach," said National Fuel President and CEO Dave Bauer as he launched into a litany of of data and research to back his criticisms during a call that was largely intended to focus on the company's business standing. "It makes no sense to mandate the electrification of space heating Western New York when it’s uncertain the necessary power and infrastructure will be there to meet the increased demand."
Bauer spoke at length of the importance of reliable energy systems in times of crisis like the Buffalo blizzard in December 2022 when some critical energy sources, mainly electric, faltered. "It’s astonishing that New York State policy makers are unwavering in their push for a rapid transformation to a predominantly electric future, powered primarily by intermittent wind and solar," he said.
Bauer noted the state directive to begin moving away from fossil fuels and natural gas beginning in 2025, included in the budget presented this week by Governor Kathy Hochul, is based solely on the Climate Action Council's scoping plan, born from the Climate Act adopted in 2019. "The breadth of what’s contemplated is truly remarkable," said Bauer, adding, "The scoping plan would have New Yorkers electrify almost everything, at any cost." Bauer notes that even the administration in Albany has admitted that the scoping plan is not legally binding and is only intended as a 'blueprint' for the future of energy.
The requirements to meet the goals that would roll out in 2025, 2030 and beyond would require the quadrupling of the electric grid in the National Fuel service territory for heating needs alone, Bauer said.
From a statewide perspective, Bauer notes the numbers are even more daunting. "Currently there is approximately 2 gigawatts of wind and solar capacity in the state, which was installed over the course of the last two decades. To meet its targets, the state will need to install, on average, more than 4 gigawatts of wind and solar every year for each of the next 18 years." Bauer adds that it took 18 years for the grid to become able to provide its current 2 gigawatt capacity from solar and wind.
Bauer also cautioned that in addition to the massive costs associated with the utility grid infrastructure improvements necessary, there is a sizable cost to the consumer. "Consumers will bear the cost of converting, which could be as much as $50 thousand per household," he said. Bauer describes the impact of the rapid shifts on the current deadlines as 'crippling'.
A more reasoned approach to a transition in energy sources is needed, says Bauer, who adds the current deadlines aren't tied to any reliability milestones. "The state should embrace a more reasoned approach to the energy transition, one that sets electrification targets that are linked to generation and reliability milestones."
Bauer's greatest concern with the state's current guidelines is an inability to meet the needs of consumers, particularly in the important winter months. He favors a phased-in approach that would start with consumers being offered the choice to make a transition, followed by hybrid options that would lead to a more wholesale transition when infrastructure would support it. "Based on current technology, that's likely many decades away."
"Forcing electrification before reliability is assured is an incredibly risky proposition."
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