The Project, located in the Town of Southampton, Suffolk County, New York, consists of approximately 8,500 feet 16-inch 350 pounds per square inch gauge (psig) transmission main, a 350 psig to 124 psig regulator station, and approximately 6,100 feet of 12-inch 124 psig distribution main. The gas main portions of the project went into service in September 2021 and the regulator station went into service in February 2022.

The Project is considered a “Long-Term Capital Capacity Project” and subject to additional review pursuant to the Commission’s Order Approving Joint Proposal, as Modified, and Imposing Additional Requirements (Rate Order) issued in Cases 19-G-0309 and 19-G-0310 on August 12, 2021. The Rate Order and underlying Joint Proposal identified certain capital projects, including the Project and did not provide cost recovery for those projects in base rates. The Rate Order provided that National Grid could seek to recover costs associated with the Project through a surcharge mechanism. To do so, the Commission required that National Grid provide an initial filing providing the basis for a finding by the Commission that (1) the Project is needed to meet a reasonable forecast of peak customer demand; i.e., during the coldest day of the year, and (2) National Grid is meeting Capacity Demand Metrics – identified in the Rate Order – designed to ensure that National Grid is acting to reduce or otherwise meet customer demand through non-infrastructure projects, such as customer electrification referrals, energy efficiency measures, demand response efforts, and non-pipe alternatives. The Rate Order also specifies that an independent consultant would conduct an assessment of the identified need and submit a report of its findings in Cases 19-G-0309 and 19-G-0310. Following that, the Rate Order specifies that the Commission would issue a final decision regarding whether to approve the cost of recovery for the Project pursuant to the surcharge.

The full text of the report and the full record of the proceeding may be viewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject, or modify, in whole or in part, the action proposed and may resolve related matters.

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(19-G-0310SP2)