The nightmare is over for Long Island, Queens and Brooklyn.
New York State Gov. Andrew Cuomo announced a deal with National Grid to lift their moratorium on gas service ending a months-long stalemate between the supplier and the state. The service identified short-term supply mechanisms to meet demand for the next two years, allowing it to restore service to customers it had refused and grant all pending applications.
National Grid will pay customers impacted by the moratorium a $36 million penalty in total. Part of the penalty will also support energy conservation and clean energy projects. They will also present a long-term options analysis within the next three months, subject to a public review process. The long-term options will be in place and functioning in Fall 2021.
Cuomo called the deal a victory for National Grid’s customers.
“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,” stated Cuomo. “The company is also working to address the long-term supply problem and will present options in the coming months to the people of Brooklyn, Queens, and Long Island, letting them choose the best way forward for their communities. 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.”
Several weeks ago Cuomo threatened to revoke the National Grid’s state contract if they kept saying they couldn’t keep up with gas demand after the state denied the agency’s request for a new pipeline. He also suggested that he would fine National Grid millions of dollars for its refusal to restore services.
The New York Attorney General’s Office is now investigating National Grid over the moratorium and whether the company lied to customers and the New York Public Service Commission about the need for widespread service disruptions.
“National Grid denied necessary service to thousands of New Yorkers in an attempt to strong arm our state into approving a pipeline that would hurt the environment and our water supply,” stated New York State Attorney General Letitia James. “The moratorium continues to have a profound effect on individuals, small businesses, and New York’s economy, and will only get more problematic as the weather gets colder. New Yorkers harmed by National Grid’s actions deserve an explanation and I urge anyone impacted to file a complaint with my office.”
A monitor appointed by the State of New York will oversee National Grid’s gas supply operations and report to the State of New York and the Public Service Commission (PSC). National Grid will pay for it. In October the PSC also directed the utility to connect 1,157 residential and small commercial customers and to implement an alternative supply and demand reduction plan to ensure the gas system’s safety and reliability.
Brooklyn Borough President Eric Adams is happy that the moratorium is over, but still skeptical of National Grid.
“National Grid’s service moratorium left thousands of residential and small business customers in a precarious position, disrupting their lives and their livelihoods,” said Adams. “The state’s $36 million settlement with the company, which includes $7 million toward reimbursing affected customers, is an important step. These reimbursements should go out immediately, especially since the moratorium cut into the bottom lines of many small businesses.
“The investigations currently being conducted by the attorney general’s office will help us determine whether National Grid truly needs gas expansion to guarantee service to customers,” continued Adams. “National Grid will have to be open and transparent with the public in the coming months as they work to identify long-term supply options. It is incumbent on them to proactively conduct outreach to communities that were affected and ensure there is not another moratorium.”
In response, National Grid has created a webpage listing the phone numbers and email addresses for prospective customers at https://www.nationalgridus.com/gasconnect-faq. They’re currently accepting applications to restart service where customer service representatives will guide them through the steps to reactivate service. Brooklyn and Queens residents can call customer service at 1-718-643-4050. Nassau and Suffolk County residents can call customer service at 1-800-930-5003.
New York State Sen. Jim Gaughran said holding National Grid accountable isn’t relegated to just this year.
“National Grid lied to the public while holding thousands of customers hostage with their reckless moratorium. Their actions left thousands of families and small businesses in the cold at the start of the winter season,” stated Guaghran. “Now we need to finish the stalled operational and management audit to take an independent, deep-dive into what National Grid has claimed and what is actually true.”
As for Cuomo, Con Edison is next on his radar. Meeting with reporters on Long Island after announcing the National Grid deal he said that they should learn from the National Grid story.
“We contract with Con Edison, but if Con Edison is not doing a good job or if we feel they are abusive, then we can get another provider,” stated Cuomo. “And that is the key here: for many years, the power shifted to the utilities, where they think they can get away with murder. And we have no alternative. There is an alternative: get another utility.”