National Grid Ends Moratorium on New Hookups in New York
November 25 2019 - 12:59PM
Dow Jones News
By Joseph De Avila
National Grid PLC will resume connecting new natural-gas
customers in Queens, Brooklyn and Long Island after reaching a deal
with New York that ends a monthslong moratorium.
The utility said Monday it will provide service to the customers
that have been placed on a wait list and will begin processing new
applications. Under the agreement, National Grid will also pay a
$36 million penalty to compensate customers for hardships as a
result of the moratorium and for new energy-conservation measures
and clean-energy projects.
"Every decision we make is driven by National Grid's commitment
to provide safe and reliable service to our customers, including
the decision to implement the moratorium," said Badar Khan, interim
president of National Grid U.S. "We understand the frustrations of
everyone who experienced a delay in service during this period and
regret that we did not provide more notice or explanation to our
customers about the moratorium."
National Grid halted new hookups this past spring after state
regulators rejected a proposal for a new pipeline. The company said
it didn't have sufficient capacity to meet the expanding demand for
natural gas in the region. The utility serves 1.8 million customers
downstate.
New York Gov. Andrew Cuomo, a Democrat, threatened to revoke
National Grid's certificate to operate earlier this month unless
the utility presented a plan for meeting the natural-gas demand in
the region. The company said Monday it has identified short-term
measures that will allow it to provide services to new customers
for the next two years.
"This agreement is a victory for customers," Mr. Cuomo said.
"National Grid will pay a significant penalty for its failure to
address the supply issue, its abuse of its customers and the
adverse economic impact they have caused."
National Grid said it plans to present long-term options to
serve the region within the next three months. That includes
examining renewable-energy sources, conservation strategies, a
potential new pipeline and liquefied-natural gas and
compressed-natural gas facilities.
The company and New York state officials said they plan to
identify the best long-term option by June 2020 so that it can be
in place by the fall of 2021.
"No one should have to worry about keeping the heat on during
the holidays and winter months," said Nassau County Executive Laura
Curran, a Democrat. "I look forward to working with the state and
all stakeholders to reach a long-term solution that will provide
safe, reliable service to consumers while safeguarding Long
Island's clean energy future."
Write to Joseph De Avila at joseph.deavila@wsj.com
(END) Dow Jones Newswires
November 25, 2019 12:44 ET (17:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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