As New York state moves ahead in pursuit of its transition away from fossil fuels toward renewable energy, the continuing need for natural gas remains a priority.
According to the New York State Independent System Operator (NYISO), a non-profit that oversees energy production, with natural gas serving as the primary fuel for more than 60% of the generating capacity in the state, potential fuel constraints can have serious consequences for grid reliability.
“What we do know with certainty is that as public policies drive more fossil generators into retirement to meet de-carbonization goals and tighter emissions restrictions, new carbon-free resources are not being added to the grid fast enough to keep pace with expected demand growth,” the agency wrote in its 2025 annual report.
“So, what options exist in the short-term to transition the electric system, support economic development, and achieve deep emissions reductions? One idea is the repowering of existing, older fossil fuel power plants, or upgrading existing renewable generating facilities with new technologies. Repowering can offer a bridge between old and new, the past and the future,” the report states.
Will new gas pipelines drive down energy costs?
Without enough pipeline capacity to meet current energy needs – and even more demand expected, given the advent of hyperscale computing for AI (artificial intelligence) – questions remain whether building more pipelines offers a solution.
Project Maple, a proposal by Enbridge Corp. to bring more natural gas supply into New England through its Algonquin pipeline, has been scaled down but is moving forward.
“Algonquin’s Reliable Affordable Resilient Enhancement (AGT Enhancement) is the first step in alleviating the bottleneck of pipeline constraints that have plagued the region, helping to enhance peak day capacity,” Melissa Sherburne, media spokesperson for Enbridge, told the Peekskill Herald in an email. “As the region continues to shift to increased reliance on intermittent energy sources, natural gas can ensure customer reliability and affordability.
“This project was announced on Sept. 2, 2025, and does not include any construction in New York,” Sherburne said. ” The New York portion of the original Project Maple plan would have increased capacity on the existing Algonquin Gas Transmission pipeline system, which runs near the former Indian Point nuclear plant near Peekskill.
Originally constructed in 1954 and with a current transmission capacity of about 3 billion cubic feet of gas per day, the Algonquin pipeline is part of an inter-regional pipeline network that ships gas from the Gulf Coast and the Marcellus and Utica fracking fields in Appalachia to consumer markets in the Northeast.
Algonquin connects to the Millennium pipeline in Ramapo, New York, and to the Maritimes and Northeast Pipeline near Salem, Massachusetts. Algonquin also connects to the Texas Eastern Pipeline, often called TETCO, in Lambertville, New Jersey.
Another proposal, called the Northeast Supply Enhancement pipeline, or NESE, would build a pipeline extending for 23 miles under Raritan Bay in New Jersey and New York Harbor to connect with an existing pipeline off Queens, according to a published report.
The NESE proposal was rejected three separate times, dating back to 2018 under former New York Governor Andrew Cuomo. Current Gov. Kathy Hochul is now considering approving the plan, but vows to keep control of New York state’s energy policy and not yield to Trump administration pressure to expand fossil fuels.
“As the White House rejects any new permitting of offshore wind projects and Republicans in Congress cut billions in subsidies for renewable energy, the Governor is pushing an all-of-the-above approach to ensure we keep the lights and heat on for New Yorkers, while also prioritizing affordability and strong economic development,” Ken Lovett, senior communications advisor on Energy and Environment for Gov. Hochul, told the Herald in an email.
“The Governor has made it clear that all proposed projects must be reviewed impartially by the required agencies to determine compliance with state and federal laws,” Lovett said.
According to a published report, Connecticut Gov. Ned Lamont has called natural gas “an interim way to get additional low carbon power into this region,” providing a less-expensive source of energy that would benefit middle-class ratepayers. Rob Blanchard, the Governor’s press spokesperson, did not respond to a request for comment.
Another proposal, the Constitution Pipeline, would bring gas from the Marcellus Shale to Albany, New York, where it would connect with pipelines that feed New York City and New England. The project was canceled in 2020 after failing to get key environmental permits, but is now back on the table as the Williams Company has submitted new permit applications, aiming for a late 2027 construction start and service by 2028.
In a fourth proposal, New York state officials approved key permits for the Iroquois Enhancement by Compression (ExC) Project, advancing a 414-mile interstate natural gas pipeline expansion designed to support downstate gas reliability.
The New York State Department of Environmental Conservation (NYSDEC) issued Air State Facility permits this spring for the project’s compressor station upgrades in Dover and Athens, clearing a major regulatory hurdle for the Iroquois Gas Transmission System.
The ExC Project involves installing 12,000 horsepower (hp) of new compression and associated facilities at each of the existing Iroquois Dover and Athens Compressor Stations in New York. It also includes upgrades to the Milford and Brookfield stations in Connecticut.
However, in September, Save the Sound, a Connecticut-based environmental advocacy non-profit, filed a request for an adjudicatory hearing and comments to challenge the Connecticut Department of Energy and Environmental Protection’s (CT DEEP) Notice of Tentative Determination to approve permits for Iroquois Gas Transmission System, L.P.’s proposed expansion of its Brookfield Compressor Station.
In August, the US Federal Energy Regulatory Commission (FERC) ruled that natural gas pipelines no longer have to wait up to 150 days after receiving federal authorization before starting construction. U.S. Interior Secretary Doug Burgum said the change will cut six to 12 months from the time required to construct natural gas infrastructure projects.
Proponents believe increasing the supply of natural gas will drive down prices and avoid having utility companies turn to expensive alternatives like importing liquefied natural gas and burning oil to generate electricity during peak demand times.
Opponents challenge that assumption and point out that new pipelines will cost billions of dollars, add to global warming and divert investment money away from building more solar, wind and other renewal energy projects.
The reality of generating energy in New York
According to NYISO, since the passage of the state’s 2019 Climate Leadership and Community Protection Act (CLCPA), 4,315 megawatts have left the system, while only 2,274 megawatts have been added. The net loss of more than 2,000 megawatts represents enough capacity to power roughly two million homes.
“While all resources supplying the grid offer some of these capabilities, only New York’s existing fossil resources and certain hydro generators deliver the full array of services needed to balance a dynamic grid,” NYISO states. “Despite the need to reduce fossil fuel use to meet the state’s emissions reduction targets, some level of fossil-fired generation will be needed for reliable power system operations until the capabilities they offer can be provided by other resources.”
In the 2025 annual report, NYISO reports that current statewide reliability margins in winter are sufficient, but the threat exists that energy shortages could happen in the near future.
“However, if gas-fired generators cannot secure fuel during peak winter demand periods, statewide deficiencies could arise as soon as winter 2029-2030 under normal weather conditions. Considering higher demand growth or extreme winter weather conditions, deficiencies may happen years earlier.”
NYISO is subject to the oversight of the Federal Energy Regulatory Commission and is regulated in certain aspects by the New York State Public Service Commission (PSC). NYISO operations are also overseen by electric system reliability regulators, including the North American Electric Reliability Corporation, Northeast Power Coordinating Council, and the New York State Reliability Council.
