Cuomo Moves To Revoke National Grid’s Certificate To Operate Downstate – CBS New York
Cuomo sent a letter to National Grid saying the state intends to revoke their certificate to operate its downstate gas franchise.
WEB EXTRA: Read the letter (.pdf)
The move comes after CBS2’s extensive reporting on the pipeline pawns, caught up in a moratorium National Grid imposed on service hookups. National Grid said the moratorium was necessary due to a supply shortage that could only be fixed with the approval of a new pipeline.
In the letter, Cuomo said National Grid “reckless disregard” for the obligations incumbent upon it as a public utility.
“Given National Grid’s mishandling of the gas supply system on Long Island and New York City as evidenced by your recent ‘moratorium’ on service there is no doubt National Grid failed to provide ‘adequate and reliable’ service,” Cuomo wrote.
Cuomo said National Grid’s argument that a moratorium is necessary due to a supply shortage “exhibits your failure to plan for supply needs. Your fundamental legal obligation as mandated by your certificate of operation was to plan and provide for future needs. You failed by your own admission.”
“The ‘moratorium’ is either a fabricated device or a lack of competence. There is no legitimate need for it in the first place,” Cuomo wrote.
Cuomo said National Grid can use the 14 days to “present meaningful and immediate remedial actions.”
CBS2 has been reporting on the pipeline pawns for months. It was only after we demanded answers that the governor got actively involved. First he got the PSC to order National Grid to restore service to more than 1,100 customers.
Sources told CBS2 National Grid could also face fines in the tens of millions of dollars. Sources also said that either Con Ed or PSE&G would be able to take over the franchise.