The Public Service Commission (PSC) public hearing at Brooklyn Borough Hall last night about a proposed National Grid natural gas rate hike ended up becoming largely about the company’s continuing moratorium preventing new gas set-ups.
The moratorium itself is centered around the state Department of Environmental Conservation’s rejection earlier this year of a proposal from National Grid to build the 37-mile Williams Cos Inc’s Northeast Supply Enhancement (NESE) pipeline that would stretch from Pennsylvania to New York City.
According to National Grid, the pipeline has become an urgent need, as the economy in New York City is booming, and their current pipeline is at capacity. Thus, they imposed the moratorium meant to prevent a gas shortage during colder days which would result due to the lack of NESE.
On the other side, environmentalists and green activists lobbied hard against the NESE because it expands fracked gas infrastructure, which they argue is a climate disaster.
While the substance of NationalGrid’s presentation last night was centered around their seeking PSC approval of a proposed 13.9% increase in natural gas delivery rates, public testimony from attendees, including some elected officials, largely revolved around concerns over the moratorium.
One attendee from City Councilman Chaim Deutsch’s (D-Sheepshead Bay, Manhattan Beach, Brighton Beach, Homecrest, Midwood) district lost his home during Hurricane Sandy, spent the past seven years trying to rebuild it but was unable to apply for gas after renovations were completed, due to the moratorium.
“He’s been out for seven years. He took the time today to come down and he’s homeless. He cannot live in his home. And he cannot get his gas turned on. That is unacceptable,” said Deutsch, who promoted the meeting in his email blast and was disappointed that more people didn’t show up to the hearing.
“This is probably one of the most difficult things as a company, to have to implement this,” responded National Grid New York Vice President Melanie Littlejohn. “My heart breaks every time I have to talk to a customer who is in this scenario.”
Deutsch added that the moratorium affects NYCHA buildings who seek to move from oil to gas, businesses that seek to operate in renovated locations as well as developments that could potentially provide affordable housing but must now pause their construction. “People are going out of business,” said Deutsch.
Other elected officials who voiced their disapproval of both the rate hikes and the moratorium included Assemblymembers Robert Carroll (D-Park Slope, Windsor Terrace, Kensington, Ditmas Park) and Jo Anne Simon (D-Brooklyn Heights, Downtown Brooklyn, Cobble Hill, Carroll Gardens, Gowanus, Park Slope, Boerum Hill, DUMBO)
“We need an investigation of this moratorium. We had many calls in my district office in regard to people who can’t get gas hooked up. People who were doing a renovation and who had to turn off their gas while they were doing their renovation and then they can’t get it turned back on. And of course they had absolutely no notice of that,” said Simon.
“I strongly suspect that this moratorium is made up. I don’t know how if the rate increase is not given or the pipeline is not built that it somehow rather magically would result in a shortage this fall,” Simon added.
National Grid, however, insists that NESE is necessary to properly supply New York on cold days.
“The pipeline is the only way for us today to get more gas into New York to support the growing demand and to be there for customers when they need us most on the coldest days of the year,” said Littejohn, adding if NESE wasn’t approved, the moratorium could go on for several years.
“We will have to keep a moratorium in place until such time that we have the ability to provide service to all of our customers,” she said.
According to a statement from National Grid, the rate hike was filed with the assumption that NESE will be in service by the winter of 2020/2021.
“National Grid does not have enough natural gas supply to keep up with the current growth rate in Brooklyn, Queens and Long Island. Without NESE, customers will have fewer options to heat their homes and run their businesses, and we believe this puts the region’s economic growth and city and state carbon emission goals at risk,” reads the statement. “We will continue to work with all partners to gain approval for this critical natural gas supply and remain cautiously optimistic that it will proceed on schedule and be in service for our customers by the winter of 2020/2021.”
The currently proposed rate hike, if approved, would see a $16.50 monthly delivery increase for a typical New York City heating customer. Many speakers, including all three elected officials, strongly voiced their opposition to it.
“There was a rate increase just three years ago. We cannot afford another,” said Carroll. “Brooklynites already pay some of the highest natural gas rates in the nation. When will it stop? National Grid currently has a policy that they would decrease service and increase costs. It’s completely unfair, it is unnecessary.”
Another PSC hearing on the proposed rate increase is slated for Aug. 21 at the St. George Library Center in Staten Island.
