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For Immediate Release: 09/14/2023 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080 23091/22-G-0644 September 14, 2023
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National Grid to Pay $500,000 for Delayed Response to Gas System Issues |
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Commission Acts to Ensure Safety of Brooklyn’s Bergen Beach Gas System ALBANY — The New York State Public Service Commission (Commission) today adopted the terms and conditions of a $500,000 settlement agreement that would resolve all alleged violations against National Grid relating to alleged delays in replacing a natural gas pipeline in the Bergen Beach area in Brooklyn.
“The safety and reliability of our gas distribution system is a priority concern of the Commission,” said Commission Chair Rory M. Christian. “This settlement agreement represents an equitable and fair compromise between National Grid and the Department, and is consistent with the environmental, social, and economic policies of the Commission.”
The Department of Public Service’s (Department) Office of Investigations and Enforcement, in conjunction with gas safety experts at the Department, completed an initial investigation of the facts and circumstances surrounding the replacement of a natural gas pipeline. On December 15, 2022, the Commission issued an Order to Show Cause, wherein the Department alleged a total of 162 violations of gas safety regulations against National Grid, one violation for each day of delay. Under the terms of the settlement agreement, National Grid shareholders agreed to pay $500,000 to resolve all alleged violations for ratepayer benefit in the Bergen Beach area.
National Grid discovered active corrosion on the Bergen Beach gas pipeline at issue on December 6, 2019. The regulatory deadline to replace the corroded pipeline, and associated service upgrades, was December 6, 2021. However, National Grid did not complete the required remediation of corroded pipeline in the Bergen Beach area until May 17, 2022. National Grid has denied liability in response to the 2022 Order to Show Cause and alleged, among other things, that it acted reasonably to ensure safe and reliable service to the affected area.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 22-G-0644 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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