National Grid Ends Moratorium on New Hookups in New York

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 [e-mail]

(END) Dow Jones Newswires

November 25, 2019 12:44 ET (17:44 GMT)

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