Consolidated Edison (NYSE: ED ) announced today that its New York subsidiary plans to spend around $100 million to extend its natural gas offerings to new Manhattan and Bronx neighborhoods, ensuring Con Ed's compliance with environmental regulations while cutting costs for itself and its customers.
"Our customers are discovering the economic and environmental benefits of switching from heavy fuel oils to natural gas, and we want to do everything we can to make the conversion process easy for them," said Director of the Gas Conversion Group Nick Inga in a statement. "Building owners who make this choice will lower their energy bills and contribute to making New York City cleaner, safer, and economically vibrant."
Customers have conventionally used oil to heat their homes, a more expensive and dirtier energy source. A switch to natural gas will allow Con Ed to comply with different fuel oil phaseout regulations starting in 2015, while also reducing the utility's direct costs by 40%. Almost 90% of Con Ed's $3.88 2012 EPS came from the company's regulated subsidiary Con Edison of New York.