National Grid's Economic Development Plan Approved

• by New York State Public Service Commission

ALBANY, NY (12/16/2009)(readMedia)-- The New York State Public Service Commission (Commission) today approved a $9 million economic development effort for National Grid, a decision which includes a $1 million increase in financial assistance the utility will be able to offer large and small companies in its service territory.

"It is readily apparent that upstate New York, along with other parts of the state, continues to suffer the ill effects of this lingering recession," said Commission Chairman Garry Brown. "An increase above last year's program budget is justified as a response to the adverse economic conditions prevalent in National Grid's service territory. The Commission is eager to help create jobs; the additional spending will counteract job losses in upstate New York."

As part of the expanded economic development funding, National Grid will create a new renewable energy development program to leverage interest in and reliance upon renewable energy. National Grid will also expand its successful Capital Investment Incentive (CII) program to more small-business customers, customers long-recognized as an engine of job creation.

While the Commission approved expansion of National Grid's economic development initiative, it also reminded the utility that it is obligated to fund only meritorious projects. The utility is not required to spend its entire economic development budget if enough meritorious projects aren't found or if meritorious projects fail to move forward.

Reporting on its economic development activities during 2008, National Grid said it spent $6.2 million on economic development projects completed during the year, up $300,000 from the year before. In developing its proposal for 2010, National Grid said it solicited the opinions of numerous governmental agencies, commercial and industrial customers, and economic development organizations. Its goals in 2010, the utility states, are to maintain a strong focus on site development, urban revitalization, and facilitating customer growth through infrastructure assistance, energy efficiency, and productivity improvements.

Under the new renewable energy development program, matching grants of up to $750,000 will be made available to customers that can demonstrate the installation of alternative generation technologies will promote job growth or retention at their locations while also yielding economic development benefits in the surrounding regions. Eligible technologies would include solar, photovoltaic, thermal, bio fuels and anaerobic digestion. A project must also advance the development of "green energy" technologies.

The CII program that's being expanded is one of National Grid's most successful economic development initiatives. Under the program, the utility assists customers in meeting the costs of upgrading energy infrastructure needed to accommodate a business expansion or attract a new business. The utility would expand eligibility for the program by opening it to customers sized from 100 kW to 500 kW, when currently only customers sized at 500 kW or above can obtain its benefits.

The Commission's decision today, when issued, may be obtained by going to the Commission Documents section of the Commission's Web site at www.dps.state.ny.us and entering Case Number 01-M-0075 in the input box labeled "Search for Case/Matter Number." Many libraries offer free Internet access. Commission orders may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).

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