Hartford Business Journal

14 Hartford Business Journal • July 16, 2018 • www.HartfordBusiness.com By Matt Pilon mpilon@HartfordBusiness.com C onnecticut's multibillion- dollar plan to convert 280,000 properties to natural gas heat by 2023 is far behind schedule, though it's still created tens of thou- sands of new customers for utilities. The three public gas companies serving Connecticut businesses and residents recently submitted their annual Natural Gas Expansion Plan data to state regulators, reporting that from 2014 through the end of 2017, they converted 61,486 custom- ers. That's about 62 percent of their original goal for that time period. The conversion pace has been slowed by lower-than-expected oil prices, which has made it less financially ap- pealing for consumers and businesses to invest in a switch to natural gas. The slow conversion pace is also hampering Connecticut's environ- mental goals, at least to some extent. Connecticut has set ambitious green- house-gas emission reduction targets, with milestones approaching in 2030 and 2050. Natural gas generally burns cleaner than oil, so getting more cus- tomers to use that heating fuel would reduce carbon dioxide emissions by a greater amount. Meantime, lackluster demand for natural gas could also play into an ever-raging debate about what Con- necticut's energy future should look like. There are disagreements, for example, over whether or not Connecticut needs more gas pipe- lines to meet peak demand during periods of extreme temperature. While utili- ties say natural gas remains an attractive and advantageous heating fuel, clean-energy ad- vocates argue that state policy should shift away from incentivizing natural gas in favor of more renewables and efficient electric heat. Aggressive goals Lawmakers and regulators created the ratepayer-funded natural gas expansion plan in 2013, perceiving a "historic op- portunity" for Connecticut energy users. The plan, which was vehemently opposed and legally challenged by oil dealers, sought to seize upon a then- wide spread between gas and oil prices — one that was projected to continue — and help with the state's efforts to Off Target CT's natural gas expansion plan well behind schedule CT natural gas conversions 2014-2017 2014-2017 % behind 2018 original goal actual goal projected Eversource 26,339 21,292 -19.16% 4,700 Avangrid 71,300 40,194 -43.63% 6,000 Source: PURA filings CT residential heating oil prices $5.00 $4.50 $3.50 $3.00 $4.00 $2.50 $2.00 $1.00 $0.50 $0.00 $1.50 $/gal. 01/02/12 01/07/13 01/06/14 01/05/15 01/04/16 01/02/17 01/01/18 Source: EIA An Eversource crew installs a natural gas main in Cromwell. Utilities including Eversource are behind on aggressive goals to convert more people in Connecticut to natural gas as a heating fuel. PHOTOS | CONTRIBUTED

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