Gov. Cuomo and National Grid reach agreement, utility must pay $36 million fine
Gov. Cuomo and National Grid have reached an agreement to lift the moratorium on gas service to Long Island, Queens and Brooklyn, according to the governor’s office.
Gov. Cuomo and National Grid have reached an agreement to lift the moratorium on gas service to Long Island, Queens and Brooklyn, according to the governor’s office.
The deal comes after Cuomo sent a Nov. 13 letter threatening to revoke the utility's certificate to offer natural gas service in downstate New York.
National Grid had denied natural gas service to over 1,100 customers since May. The company blamed New York's rejection of an application for a $1 billion pipeline bringing natural gas from Pennsylvania's shale gas fields.
Cuomo accused the utility of being “abusive by trying to extort the state to support a new natural gas pipeline” and operating in “bad faith” by denying natural gas service to customers.
The deal announced Monday says that National Grid’s moratorium on gas service to downstate New York will lift immediately as the utility has identified short-term supply mechanisms to serve all customers and new applicants for the next 2 years.
National Grid must pay $36 million in penalties to compensate customers who were denied service. The penalty will also be used to support the state’s clean energy projects.
“Today it was made clear that we will not allow any business - big or small - to extort New Yorkers in order to advance its own interests,” Cuomo said.
The utility will be presenting long-term options for continuing service downstate within three months.