New York Governor Threatens to Revoke National Grid License

(P&GJ) — New York Governor Andrew Cuomo has given gas utility company National Grid 14 days to supply gas to over 1,100 customers or he will revoke the company’s license to operate. 

National Grid has been at odds with Governor Cuomo over the construction of the Constitution pipeline, a $1 billion natural gas pipeline being built by Williams. The pipeline would carry 400 million cubic feet per day of natural gas from New Jersey to New York.

In May, the company issued a moratorium on gas hook ups citing a lack of supply after the state of New York rejected a permit for the pipeline.

In a letter to two executives of the company, Cuomo blames the moratorium on the company’s “mishandling of the gas supply system” and said there is “no doubt National Grid failed to provide ‘adequate and reliable’ service.”

Regarding the pipeline, he stated that by relying on a single source of new supply, the company overlooked several other potential options to secure the gas needed to satisfy its customers. He cited trucks, ships, and barges as well as other infrastructure or additional unloading facilities as possible alternatives to secure additional natural gas.

He claims the company did not explore any alternative options and instead relied on a “single, speculative project.”

He referred to the pipeline itself as a “complex and controversial project” and said National Grid’s 12-month construction timeline was “irresponsible.” He said the plan to build the pipeline was “risky at best.”

He demanded the company “present meaningful and immediate remedial actions” within 14 days.

A company spokeswoman from National Grid told PGJ, “National Grid is in receipt of the letter from Governor Cuomo and will review and respond accordingly within the timeframe outlined in the letter. We continue to work with all parties on these critical natural gas supply issues on behalf of all our customers in downstate New York.”

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