By Debbie Cai
Consolidated Edison Inc. (ED) said it plans to invest about $100
million on upgrades to its infrastructure in several neighborhoods
in Manhattan and the Bronx to make it easier for customers to
convert to natural gas from heating oil.
The ongoing gas-infrastructure-expansion program will involve
new mains, regulators and other upgrades and will allow customers
to lower their energy bills by switching to low-cost natural gas,
the utility said.
The neighborhoods in the Bronx comprise parts of: Mount Eden,
Laconia & Pelham Gardens, Riverdale, Fordham, Morrisania,
Crotona Park, Concourse Village and Soundview. The neighborhoods in
Manhattan comprise of: Upper West Side, Midtown South, Inwood,
Washington Heights and Upper East Side.
The company said these neighborhoods were chosen for upgrade
based on existing natural-gas infrastructure, building density and
customer requests. It plans to further expand its infrastructure
over the next seven years throughout its New York City gas-service
territory in Manhattan, the Bronx and parts of Queens.
Natural gas is 40% less expensive than oil and burns much
cleaner, the company said, adding the U.S. Energy Information
Administration predicts natural gas will remain significantly less
expensive than oil for the foreseeable future.
Customers who switch from oil to natural gas will avoid
maintenance and equipment costs typically associated with oil heat,
such as pumps, motors, filters, and permits, as natural gas is
piped directly to buildings with no need to rely on fuel
deliveries, the company said.
ConEd last month said it will seek approval from the New York
state Public Service Commission for a rate increase that would
amount to $3 per customer per month, while unveiling plans to spend
$1 billion on storm-protection measures over the next four
years.
The company recently reported that its first-quarter earnings
fell 31% as a charge related to a lease-in lease-out transaction
weighed on the utility company's bottom-line results, though
revenue improved.
Shares slipped 1.1% to $55.75 in recent trading. The stock is
down 9.4% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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