25th Nov 2019 16:27
(Alliance News) - National Grid PLC said Monday it has reached an agreement with the US state of New York for the utility firm to lift its natural gas moratorium for all customers in the Brooklyn, Queens and Long Island boroughs of the city.
National Grid will now proceed with connecting the customer applications that were put on hold due to the moratorium, and start processing new applications.
As part of the agreement, National Grid will offer USD7 million to assist customers that have come under hardships arising from the moratorium, invest USD8 million into demand response and energy efficiency programs, and a further USD20 million in clean energy projects and investments.
Earlier in November, New York State Governor Andrew Cuomo threatened to revoke National Grid's licence unless it ended a moratorium on gas connections in New York City.
London-headquartered National Grid had been trying to build a gas pipeline in New York state, but this was blocked by New York regulators earlier this year. This led the FTSE 100 utility to refuse to provide further gas services.
In addition to the investments, National Grid has three months to present options to New York's long term supply needs. Following a consultation process, final long-term options will be identified, and is expected to be agreed with the State by June next year.
Shares in National Grid were up 1.5% at 912.00 pence late Monday.
By Dayo Laniyan; [email protected]
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