Long Island, NY - December 18, 2014 - National Grid’s petition to implement a capital investment program to invest in gas infrastructure projects on Long Island and in the Rockaways was approved by the New York State Public Service Commission (PSC).
The PSC approved this natural gas infrastructure investment program to accelerate the replacement of aging pipe and expand the use of natural gas to more Long Island and Rockaway customers.
For a number of years, National Grid has had a very proactive program to replace aging pipe on Long Island. With the decision, the program will expand from its current 50-mile requirement to 95 miles by 2016. Superstorm Sandy and Hurricane Irene have clearly demonstrated the need to provide greater protection of assets from storm-related damage, this program will nearly double the prior investment.
Since 2008 there has been a rate freeze on Long Island. The two year $414 million initiative will be funded in part by a modest monthly surcharge on customers. This program will have a bill impact of 1.2 percent, $1.37 for an average residential customer, and be in effect through December 31, 2016. The program will initially be funded through a monthly surcharge on customers' bills to cover the company’s incremental costs to replace pipe in 2015 and 2016, and a deferral for costs related to increased investment to expand Long Island’s gas distribution system.
“National Grid has a longstanding commitment to the Long Island communities and gas customers we serve,” said Ken Daly, New York President. “The decision by the PSC allows us to accelerate our existing pipe replacement program, and to continue to expand our gas distribution system with modest bill impacts to our customers. On behalf of our gas customers, we are pleased to make these critical investments, which will enable us to continue to provide safe, reliable and resilient service in the most environmentally friendly way, while supporting the job growth and economic vitality of Long Island."
This aggressive program will result in over 20,000 natural gas conversion reducing emissions by 115,000 tons, which equates to taking over 300,000 cars off the road for a year. Improving the system will benefit the communities with significant energy savings of over $75 million. This program will also establish hundreds of new jobs in the community.
About National Grid
National Grid (LSE: NG; NYSE:NGG) is an electricity and gas company that connects consumers to energy sources through its networks. The company is at the heart of one of the greatest challenges facing our society - to create new, sustainable energy solutions for the future and developing an energy system that underpins economic prosperity in the 21st century. National Grid holds a vital position at the center of the energy system and it ‘joins everything up’.
In the northeast US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles. In Great Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.
National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New York and Rhode Island. It is the largest distributor of natural gas in northeastern U.S., serving approximately 3.4 million customers in New York, Massachusetts and Rhode Island.