In New York, National Grid Gets Caught Lying, Drops Demand for Billion-Dollar Gas Pipeline

“Southern New York doesn’t need more gas.” The headlines say it all:

  • Brooklyn Eagle: “National Grid agrees to end gas moratorium after governor’s ultimatum”

  • NBC New York: “National Grid Agrees to Restore Gas Service to Parts of NYC, LI and Pay $36M in Penalties”

  • New York Times: “National Grid Relents in Gas Standoff That Hurt Real Estate” 

And, perhaps the most pointed one, from a Newsday editorial: “National Grid bet on its credibility - and lost.” (newsday.com

Why does this news story matter so much to New Englanders? Because National Grid, Eversource, Columbia Gas and other regional utilities are engaged in the same deception right here. They keep keep telling us we need to expand gas capacity, even though renewables are more cost-effective than gas and even though demand for gas is actually declining thanks to conservation and a rapidly accelerating shift to clean energy.  

In New York, National Grid got caught in a massive act of blackmail.   Earlier this year, the giant utility had declared a moratorium on new gas hookups in Brooklyn, Queens, Staten Island and Long Island, claiming that it no longer had the capacity to meet customer demand. The moratorium was imposed after the state denied a water-quality permit for a proposed $1 billion,  23-mile underwater gas supply pipeline. National Grid’s message was simple and thuggish: “Forget about the climate impacts, public health, public safety, environmental protection and consumer costs. Either you let us build our new pipelines and charge you for them or we cut you off!”

Last month, Governor Andrew Cuomo called their bluff by threatening to pull National Grid’s operating license and impose millions in fines. And how did National Grid respond? They caved. Totally and unequivocally. They agreed to lift the moratorium, pay $36 million in penalties, and focus on conservation and renewables in order to meet new energy demands.

Here’s the takeaway for every energy consumer here in New England: In order to expand the market for gas and keep us dependent on fossil fuel, gas companies are willing to lie outright. So, next time any utility tells your copmmunity that it “needs” a new pipeline, new compressor or new LNG tank farm, ask them three simple questions:

  • Have you fixed the leaks in the current system?

  • Can you prove this is the lowest-cost option for consumers?

  • Have you explored the cost and feasibility of renewable alternatives?

You can bet the utilities don’t have ready answers to those questions. Because the honest answer to all three is: “We don’t need new gas projects; renewables are safer, cleaner, just as reliable and less expensive for consumers.” And, in New York, National Grid just admitted it.