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New York’s Public Service Commission approved two utility-scale thermal energy network projects in Haverstraw and Buffalo, with a combined cost of $111.5 million. The projects will test whether utilities can use underground and recovered wastewater heat to provide cleaner heating while limiting customer costs; nine other proposals were rejected.
New York’s Public Service Commission has approved two utility-scale thermal energy network projects in Haverstraw and Buffalo, authorizing a combined $111.5 million in planned utility spending to test alternatives to fossil-fuel heating. The projects are intended to show whether utilities can deliver heat through networks using underground temperatures and recovered wastewater heat, while keeping energy costs manageable for customers.
In Haverstraw, Orange & Rockland plans to spend $50 million on a network serving up to 30 buildings, including homes, commercial and government properties, and an elementary school. The system is expected to draw heat from borefields drilled on municipal land and from wastewater in the town’s sewer network. Haverstraw is a Hudson River town with about 40,000 residents.
In Buffalo, National Fuel Gas plans to invest $61 million to link boreholes and wastewater heat recovery with an existing downtown steam heating system. The project is intended to serve low-income multifamily housing and replace some fossil gas-fired boilers in the city’s legacy district heating system. The source report describes both projects as moving into further design work; it does not give construction schedules or completion dates.
The commission approved two of 11 proposals and rejected nine others, including projects proposed for New York City and other upstate communities. The approved plans will draw on $93 million in state funds to offset costs to the utilities’ customers. That funding comes from a $150 million state commitment to thermal networks. The utilities’ total planned spending is $111.5 million; the source does not specify how the remaining amount beyond the state contribution will be financed.
Testing Heat Networks at Scale
The projects put a state-backed test behind an effort to change how utilities provide heating: rather than distributing gas through pipelines, a utility could operate infrastructure that moves heat from underground or from sources such as wastewater. Thermal networks use pipes to circulate water or another fluid, exchanging heat with these sources and supplying it to buildings through electric heat pumps.
For New York, the results could inform future decisions about whether these systems can support state climate goals and offer an alternative to continued gas-pipeline investment. The cost question remains central. The source report says regulators and state officials are concerned about adding pressure to bills for customers already facing rising energy costs. State funds are intended to reduce the customer burden on the two approved projects, but the projects still need to show whether their benefits justify the expense.
The plans also speak to the labor concerns behind the UpgradeNY coalition’s campaign. Supporters argue that gas utilities could keep employing workers with pipeline and building-trades skills by shifting their work toward thermal networks. Whether the approved projects sustain jobs on the scale supporters seek has not yet been established.
A Narrower Approval Than Sought
For four years, the UpgradeNY coalition of clean-energy, environmental and labor groups has pressed New York regulators to approve projects that could move neighborhoods away from fossil gas while retaining utility jobs and investment. The commission’s decision is a partial win for that campaign: two projects received approval, but nine more did not.
Thermal networks are already used to heat and cool campuses, industrial parks and cities in several countries, according to the source report. The approved New York projects are intended to test the approach in distinct settings: a mix of community buildings in Haverstraw and a connection to an existing district heating system in Buffalo. The report says the two projects would be the second and third of their kind in the country, but does not provide details about the other project.
The commission’s decision also reflects a trade-off between testing alternatives and limiting costs. The report says the nine rejected projects would have required utilities to collect about $1 billion from customers. That figure describes the proposed customer collections for those projects, not the cost of the two approved networks.
“From a workers’ rights and environmental justice standpoint, it’s a win-win.”
— Theodore Moore, executive director of The Alliance for a Greater New York and a member of UpgradeNY
Costs and Performance Still Open
The approvals establish plans and spending commitments, not proof that the networks will deliver lower bills, meet projected performance, or achieve particular emissions reductions. The source report does not state expected customer savings, construction timelines, operating costs, or how much fossil-fuel use each project will displace.
It is also not clear how the projects’ costs will be divided beyond the $93 million in state funding set aside to offset customer costs. Details on final design, utility customer impacts and the number of workers employed have not been provided. The commission’s reasons for rejecting each of the nine other proposals are not specified in the supplied report.
Design Work Before Construction
The Haverstraw and Buffalo projects are expected to move into further design, according to the source report. That work will need to define how the borefields, wastewater heat recovery, piping and connections to buildings will operate, along with the final project costs and construction plans.
As the plans develop, attention will turn to whether state support can keep customer costs within acceptable limits and whether the networks can demonstrate reliable heating performance. The source material provides no dates for construction or service start. The two projects’ design and eventual operation will supply evidence for regulators and utilities considering whether to pursue additional thermal networks in New York.
Key Questions
Where will New York’s approved thermal networks be built?
The two projects are planned for Haverstraw, in the Hudson Valley, and downtown Buffalo.
How much will the two projects cost?
Orange & Rockland plans to spend $50 million in Haverstraw, while National Fuel Gas plans to spend $61 million in Buffalo. The combined planned utility spending is $111.5 million.
How will the networks provide heat?
The plans combine heat from underground boreholes with wastewater heat recovery. In Buffalo, the network is also planned to connect with an existing downtown steam heating system. The heat-exchange systems are designed to work with electric heat pumps.
Did regulators approve all the proposed projects?
No. The Public Service Commission approved two proposals and rejected nine, according to the source report. The rejected plans included projects in New York City and other upstate communities.
When will the projects be built?
The supplied report says the projects are moving into further design but gives no construction or completion dates.
Source: rss
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