Upstate New York Shrinks As Andy Cuts Off Pipeline Lifelines

Students leave and families depart. Upstate New York becomes ever less affordable and opportunity ever more limited, while Cuomo cuts off pipeline lifelines.

A recent article in the Wall Street Journal, “Power Plants Arise Near Natural Gas” noted the construction of billion dollar gas-fired electric plants in the Marcellus region of Pennsylvania. Company reps for Calpine, Invenergy, Dynegy, and Caithness said the proximity to abundant, low cost gas was the reason.

The Marcellus produces about one third of the country’s production at a steep discount to the Henry Hub standard. Contracts have sold as low as $1/mmBtu, about one third of the national price. However, difficulties in moving the gas to markets have induced power producers to move closer to supply.

The electricity is sold into the grid. The article featured PJM Interconnections, a company serving all or parts of 13 states. Given the fungibility of electricity, some of the electricity ends up in New York. Once again, Pennsylvania’s fracked gas is serving New York as electricity, but without the benefits of New York jobs, New York tax receipts, New York infrastructure, and low-cost New York gas serving New York needs. Nor do New Yorkers reap the indirect benefits of a much needed, vibrant new entrant into the state’s economy.

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