Nov 25 (Reuters) - National Grid said on Monday it would pay $7 million in compensation for a moratorium on new gas customers in Brooklyn, Queens and Long Island after the utility reached an agreement with the State of New York.
National Grid will lift its moratorium for about two years. Its settlement includes a commitment to invest $8 million in energy efficiency programmes and an additional $20 million in clean energy projects, it said.
The company had said in May it would not process new applications for natural gas services in its New York City and Long Island service area until Williams Cos Inc's Northeast Supply Enhancement (NESE) pipeline received the permits it needs to proceed.
Since then, New York Governor Andrew Cuomo threatened to revoke its certificate to operate its gas franchise in downstate New York, saying the utility had failed to provide "adequate and reliable service." (Reporting by Shashwat Awasthi in Bengaluru; editing by David Evans)