PSC Accepts Gas System Reliability Plan
For NYS’s Largest NG Delivery System
ALBANY—The New York State Public Service Commission acted last week to accept National Grid’s Long Term Gas Plan and determined that the $1-billion Northeast Supply Enhancement Project (NESE) is required for reliability.
The order also calls for a plan to optimize supply if the proposed Northeast Supply Enhancement (NESE) project comes online and report on how to address reliability concerns in the event that NESE is not placed in service.
The commission directed on Sept. 18 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 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.”
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.
Sally Librera, president of National Grid New York, said, “We are grateful to the Public Service Commission for its thoughtful evaluation of our Long-Term Gas Plan, and its extensive analysis of the need for reliable energy for New Yorkers. The PSC order today affirms our determination that the Northeast Supply Enhancement (NESE) pipeline project is needed for enhanced reliability of our gas network.”
She added, “The increased gas supply from the NESE pipeline will bolster reliability for essential energy needs in Brooklyn, Queens and Long Island, while freeing existing gas supplies to better serve our customers on Staten Island and in Suffolk County.” She said added capacity is vital for meeting growing energy demand and it has the potential to save New Yorkers up to $6 billion in electricity costs—with nearly half of those savings directly benefiting residents of New York City and Long Island.
Published: September 24, 2025.
