“I can’t connect that customer this year not knowing how I’m going to supply them next year, that customer could be a customer that invested in a plant or materials … and then next year to be told not available - that’s not acceptable.” “You have to have a long term supply to make a commitment to customers,” he said. The bulk of the freed-up gas supply is expected to come from large industrial customers agreeing to switch to oil or other fuels when demand is high and added trucked supplies.īruckner said the reason the utility feels it can safely promise long-term, guaranteed year-round supply to new customers is because the state has agreed to work with the company on the long-term supply problem. National Grid New York President John Bruckner told POLITICO the company would file details of its short-term plan to supply customers in the next two years within a week to the PSC. The full commission will presumably have to approve the settlement of that outstanding order. The new agreement, which involves a memorandum of understanding between the company and the state, will resolve an order to show cause for penalties over the moratorium issued by the PSC in October, according to the governor’s office. Cuomo harshly criticized the company and the PSC for not looking at alternatives to a new pipeline but acknowledged a long-term supply problem for gas downstate. The moratorium blindsided local officials, residents doing renovations and businesses moving into new locations who were left without access to an affordable energy source. “It is terrific news for the Long Island economy that the moratorium is being lifted and important projects can move forward again and thus we commend the Governor and National Grid for resolving this short term crisis and encourage all stakeholders to plan for a longer term solution to meet the region’s natural gas needs,” said Long Island Association’s Kevin Law in a statement. All outstanding customers seeking service will have the option to be connected to the gas network, although Grid plans to prioritize residential customers needing heat, critical facilities and new businesses over oil-to-gas conversions. The utility will begin processing 4,000 pending applications representing more than 20,000 commercial, residential and multifamily units. The company stopped processing applications for firm gas hookups in May when the Cuomo administration denied a key permit for the Williams pipeline to supply Long Island. National Grid will increase its energy efficiency programs, demand response - where customers curtail gas use or switch to oil when demand is high - and boost the amount of trucked-in compressed natural gas to serve new customers over the next two years. The Company is also working to address the long-term supply problem.” “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. “This agreement is a victory for customers,” Cuomo said in a statement.
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