As noted below, however, this tax credit may become available for qualified natural gas production relative to the 2016 tax year. Since its enactment, the marginal well tax credit has not been available, as prices have remained above the commodity threshold. The marginal well credit is only available if commodity prices are below a certain threshold. The tax credit is particularly beneficial to small well producers, who typically produce limited barrels a day. The intent behind the tax credit was to serve as a safety net for marginal wells during periods of low pricing.
Where does con ed store their natural gas code#
“The urgency imposed by climate change requires an expeditious and just transition from fossil fuels and we cannot spare any time on reinforcing the existing status quo,” Stringer said.For federal income tax purposes, there are several provisions in the Internal Revenue Code (IRC) which seek to incentivize oil and gas production, specifically the marginal well tax credit and the enhanced oil recovery credit.įederal marginal well tax credit: In 2004, Congress enacted a marginal well production tax credit amendment to the Internal Revenue Code that established a tax credit for existing marginal wells. New York City has an opportunity to transform its energy production system to focus on renewable resources, like wind and solar, said Comptroller Scott Stringer, a candidate for mayor, in a September letter opposing the peaker plant transformation. They say the new gas-fueled plant will serve as a transition to renewable energy production.īut environmental justice advocates and several local lawmakers say the oil-vs.-natural gas argument presents a false dichotomy.
NRG Energy, one of the nation’s largest power companies, plans to replace its oil-burning infrastructure with gas-burning equipment to generate power at the Astoria “peaker” plant - one of several facilities in the city that burn fuel to generate extra electricity when use increases.Īn NRG-commissioned poll conducted by the firm Harris found that 68 percent of New Yorkers surveyed said they support using natural gas to reduce air pollution and more than three-quarters say they support the Astoria project. “We are proud to have been selected by Con Edison for this project, and we look forward to working together to help bring clean power, as well as other regional electricity and economic benefits to the Astoria community,” said 174 Power Global President and CEO Henry Yun.Īstoria’s large energy-production facilities and high rates of asthma have made the neighborhood a focal point of the environmental justice movement, spurring debates over the future of New York City’s energy production and its ability to address the climate crisis.
The batteries alleviate the need to produce additional energy from fossil fuels.Ĭalifornia-based 174 Global Power will obtain necessary permits for the project by 2022 to support the goals set by the Climate Leadership and Community Protection Act for 70 percent of the state’s energy to come from renewable by 2030, the company said in a statement. The new site, just a few blocks from the Astoria peaker plant, will be able to hold 100 megawatts of electricity - enough to power over 16,000 homes for several hours during energy use surges.īatteries store energy produced during periods of low electrical use and direct the power back into the grid during periods of high demand, such as heat waves, when New Yorkers crank up the air conditioners. “Utility scale battery storage will play a vital role in New York’s clean energy future, especially in New York City where it will help to maximize the benefit of the wind power being developed offshore,” said Con Edison President Tim Cawley. An industrial site on the East River in Astoria will soon host the largest energy storage facility in New York.Ĭon Edison is teaming up with the company 174 Power Global, which specializes in renewable energy, to build and operate the East River Energy Storage System on land owned by the New York Power Authority.
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