Photo Courtesy of Kevin Coughlin/Office of the Governor
“A utility does not have license to harm customers because it believes it has an irrevocable franchise and is immune from effective regulatory oversight,” Gov. Cuomo wrote regarding Grid. “I will not allow that situation to continue.”
By Michael V. Cusenza
Governor Andrew Cuomo on Thursday sent a scathing letter to State Public Service Commission Chairman John Rhodes regarding Grid’s natural gas moratorium.
The utility has repeatedly claimed that there are gas-supply constraints in the northeast, and it is unable to provide utility service without a new pipeline. Since NY vehemently opposes the proposed Northeast Supply Enhancement (a.k.a. Williams) Pipeline program for the Rockaway Peninsula—Empire State officials have shot down the plan three times—area customers are the ones left, quite literally, out in the cold.
Cuomo’s fury was evident in his 819-word salvo. He uses the missive to bluntly deliver direct orders to Rhodes:
“As the regulator of critical service for residents in the state, it is incumbent upon you to immediately analyze the existing supply needs and provide alternatives to the pipeline and in the event the pipeline project is undertaken and not completed on time. Therefore, I direct you to expeditiously demonstrate that you have fully analyzed the existing supply needs and alternatives to natural gas pipelines including:
(1) The primary alternatives available to meet consumer and business needs while ensuring the reliability of the natural gas system (e.g. oil, propane, shipping of liquified natural gas, renewable sources, demand side energy reductions); and,
(2) Environmental, community, ratepayer, and economic impacts for delivery of alternative sources (e.g. by barge or trucking) to meet demand and ensure reliability.
Grid consciously failed to develop alternative supplies both as an alternative to the pipeline and as a contingency to a stalled pipeline. Therefore, I would also demand a response to your agency’s performance of its oversight duty in this case. Grid’s lack of preparedness for the looming supply shortage, failure to explore options, over reliance on a highly complex and controversial pipeline project and extortive behavior wrongfully terminating customers and halting development, were open and obnoxious hostile actions to customers and your agency failed to adequately anticipate, respond, or prevent this harm which was your regulatory duty. I also want to know when and how we eliminate an abusive utility from the state to protect consumers.
To that end, I want the specific explanation of potential grounds for revocation of Grid’s license and its liability for the damage that has already been incurred and future damages which will be incurred over the following 12 to 18 months as development is delayed for additional projects is needed. I would also like the specifics necessary to appoint a monitor to oversee Grid’s operation on an intense and constant basis to guarantee consumer protection.
The fact that Grid has consumers in a position whereby Grid gets what it wants or consumers are punished is unconscionable. A utility does not have license to harm customers because it believes it has an irrevocable franchise and is immune from effective regulatory oversight.
“I will not allow that situation to continue,” Cuomo concluded.
