PSC Accepts Plan to Advance Gas System Reliability of Largest Nat...

ALBANY - The New York State Public Service Commission (Commission) today considered a final long-term gas plan of the National Grid companies and required the companies to implement various actions over the next three years regarding future long-term plans. Specifically, the Commission directed the three National Grid companies - The Brooklyn Union Gas Company, KeySpan Gas East Corporation, and Niagara Mohawk Power Corporation - to report on necessary improvements to demand forecasting and submit analyses regarding the Greenpoint LNG facility, non-pipe alternatives, and electrification. The Commission also directed the companies to report on how they will optimize supply sources in the event that the proposed Northeast Supply Enhancement or NESE project is placed into service and, in the alternative, report on how to address reliability concerns in the event that NESE is not placed in service. Taken together, the three companies have approximately 2.5 million gas customers in New York State, making it the largest natural gas delivery system in New York.

"The gas planning activities we require National Grid to undertake today will ensure that National Grid continues to provide safe, adequate, and reliable service while striving to meet the state's greenhouse gas emissions reduction targets," said Commission Chair Rory M. Christian. "Because widespread gas outages are a real possibility today given the narrow margin between available gas supply and demand, additional company actions identified in National Grid's long-term plan and in the Commission's order warrant consideration. The safety and reliability of the natural gas system that millions of New Yorkers rely on for heating their homes during cold winter weather is something that everyone should agree is non-negotiable."

In making its decision today, the Commission considered the thousands of comments that were received. Six virtual public statement hearings occurred in April 2025. Further, additional public informational sessions and multiple stakeholder technical conferences were held to enable stakeholders to ask the companies questions. Importantly, the Commission's analysis observed that there is a reliability need for the NESE project, a reinforcement of the existing Transco natural gas pipeline system, which already serves Pennsylvania, New Jersey, and New York.

Today's decision referenced recent examples of gas outages, and near-misses, caused by interruptions on the interstate gas pipeline system serving the downstate region, which for many years has been characterized as vulnerable to pipeline constraints and interruptions. Unlike electrical outages that are restored to customers as soon as the utility repairs the damage, gas outage restorations require visits to each customer's home or business to carefully bring each customer back on line. As part of the restoration process, utility workers must partner with locksmiths and law enforcement to access all affected homes on two separate occasions -- first to turn off gas appliances and then to re-light the appliances when pressure is restored on the pipeline. Given these logistical challenges, a widespread outage affecting tens of thousands of customers or more could take weeks or months to restore critical energy service.

As part of its review, the Commission considered advice from independent third-party expert analysts, as well as stakeholder input, including from the City of New York, Environmental Defense Fund, Sane Energy, Community Board 1, State Senator Julia Salazar, Assemblymember Jo Anne Simon, a joint letter from 36 members of the State Legislature, other elected officials, the New York State Laborers Organizing Fund, IBEW Local Union 1049, the Institute for Energy Economics and Financial Analysis, and others interested in economic development.

Given this advice and stakeholder input, the Commission directed the companies to file additional information. Specifically, the Commission directed the utilities to report on load forecasting improvements, cost mitigation efforts related to shedding more expensive capacity assets if the proposed NESE pipeline project is constructed, and other measures that could mitigate the cost impacts of adding NESE capacity such as increased off-system sales revenue. In addition, the Commission required National Grid to file annual updates to this long-term plan and its next long-term plan filing in three years, including efforts to deploy non-pipe alternatives (including the results of solicitations for such alternatives for the purpose of retiring leak prone pipe). The Commission also directed National Grid to analyze the possibility of decommissioning the Greenpoint LNG facility and provide alternatives for demand-side and supply-side options to accomplish that if the NESE project is completed. The Commission also directed National Grid to update its long-term plan with options to improve the resilience of the downstate gas system in the event NESE is not constructed and placed into service.

Modernizing gas planning procedures is important so that local gas distribution companies' long-term plans are subjected to transparent review and ensure that they conform to state policies while ensuring that the gas utilities can continue to provide safe and adequate service. This critically important gas planning proceeding has been in the works for several years; numerous parties, including those representing large customers, environmental advocates, individuals, and the affected local gas distribution utilities have filed comments.

In New York State, utilities are required to make filings with proposed long-term plans every three years. The filings must include at least one scenario with no new traditional gas infrastructure and the filings must quantify greenhouse gas emissions. Each filing begins a stakeholder engagement process, aimed at developing a consensus long-term plan. Utilities are also required to provide annual updates to their long-term plans.

The Commission has already reviewed and acted on long-term natural gas plans for other utilities in New York, including New York State Electric & Gas Corporation, Rochester Gas and Electric Corporation, Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc. National Fuel Gas Distribution Corporation, and Central Hudson Gas & Electric Corporation.

Today's decision may be obtained by going to the Commission Documents section of the Commission's website at www.dps.ny.gov and entering Case Number 24-G-0248 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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