National Grid to pay fines and connect customers

New York utility that imposed a natural gas hookup moratorium after the state rejected its pipeline plans has agreed to restore gas service and pay $36 million in penalties.

Gov. Andrew Cuomo called the agreement with National Grid "a victory for customers."

The Democratic governor and National Grid announced Monday that the utility has identified short-term supply alternatives to serve all customers and new applicants for the next two years.

National Grid imposed a moratorium on new gas hookups in parts of New York City and Long Island after New York regulators blocked construction of a $1 billion 37-mile pipeline from Pennsylvania to New Jersey and New York in May.

National Grid said the pipeline was critical to meet rising demand for natural gas in the metropolitan region.

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