National Grid today announced that it has reached an agreement with the State of New York to resolve various issues related to National Grid's previously instituted moratorium for natural gas service in its downstate service areas

Of note is that, under the agreement, as described by Gov. Cuomo's office, "The State of New York will appoint a monitor to oversee National Grid's gas supply operations. The monitor will report to the State of New York and the Public Service Commission, and will be paid for by National Grid."

National Grid will pay approximately $35 million in aggregate under an agreement with the State, to customers and to fund various initiatives. The State will not seek revocation of National Grid's CPCN

National Grid will immediately resume connecting natural gas service to customers in Brooklyn, Queens and on Long Island for approximately the next two years. National Grid will proceed to connect those customer applications put on hold due to the moratorium and start processing all new applications.

National Grid will offer $7 million in customer assistance to address hardships as a result of the moratorium.

Concerning supplies, National Grid said that it has agreed to a plan with the State that includes:

• Significantly enhanced demand response;

• Energy efficiency programs to reduce the demand for natural gas at peak times; and

• Increasing reliance on portable compressed natural gas.

As described by the governor's office, "As part of the agreement, National Grid will analyze and present viable options to address the long-term supply issue including: renewable energy sources, conservation strategies, a new pipeline, LNG facilities, CNG facilities and interoperable systems. National Grid will analyze these options over the next three months and present them to the public in an open and transparent manner through a series of public meetings in Queens, Brooklyn, Nassau, and Suffolk. These meetings will be conducted in coordination with local elected officials."

National Grid has also agreed to $8 million for new energy efficiency, gas conservation measures designed to relieve stress on the system and reduce peak-day gas usage during this two-year period.

National Grid will also invest $20 million in clean energy projects and businesses in New York.

The governor's office said, "This agreement will serve as the basis to settle an order to show cause issued by the PSC in October commencing a penalty proceeding against National Grid for alleged violations of the Public Service Law. In October the PSC also directed the utility to immediately connect 1,157 residential and small commercial customers, and to implement an alternative supply and demand reduction plan to ensure the safety and reliability of the gas system."

"If the conditions of the agreement are satisfied, the PSC will not proceed with revocation of National Grid's operating certificate. There are two additional open orders to show cause pending against National Grid by the PSC that must be resolved," the governor's office said

Tags:
New York   National Grid   Keyspan   Natural gas  

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