By Brad Cebulko (CEG) and Sarah Steinberg (Advanced Energy United) —
Energy bills are rising across the country, and for many households, the pain is coming from multiple directions.
Today’s national conversation about energy costs, load growth, aging 20th-century infrastructure and supply chain disruptions has been an unfortunate reminder that the U.S. is facing two affordability crises at once. Even as electric bills rise, the gas system remains especially vulnerable to price shocks in two ways: fuel price volatility and steep infrastructure replacement costs.
Take New York state, for example, where infrastructure costs (aka, delivery costs) make up 75% of New York heating bills and a similar share for electric bills — the largest driver of rising bills and the highest priority for cost containment.
No additional dollar of ratepayer money should be spent without due diligence that it is necessary and the lowest-cost option. In New York and many other places, utilities, regulators and stakeholders cannot yet say that this is the case. New research by Current Energy Group has highlighted an illustrative example of the problem.