National Grid Regulatory News (NG.)

15 March 2013

National Grid plc

Approval of upstate New York rate case settlement

At an open session meeting conducted on 14 March 2013, the New York Public Service Commission (the "Commission") approved rate case settlements for National Grid's Niagara Mohawk electric and gas utility businesses. A written order is expected to be issued by the Commission shortly.

The new rate plans, as approved, reflect the Joint Proposal settlement filed with the Commission in December. They include a three year rate period, a 9.3% allowed return on equity, a 48% equity portion in the assumed capital structure and increased operating cost allowances compared to the current rate plans. The new rate plans provide for a cumulative delivery rate revenue increase of $123 million for electric operations and $9 million for gas operations by the third year of the rate period. The plans include a three year capital expenditure programme of approximately $1.6 billion. They also provide for various trackers for items including pension, property tax and commodity bad debt costs. The new rates are expected to become effective on 1 April 2013.

Ken Daly, National Grid President for New York said

"I am pleased that the rate impacts of the plan will result in customers seeing a reduction in their delivery bills in the first year of the proposal. The rate plans allow the Company to continue to invest in infrastructure upgrades and new electric and gas assets to cost effectively operate and maintain a safe and reliable electric and gas distribution system in upstate New York. The agreement provides adequate revenue to support National Grid's operations to achieve the public interest benefits identified by the Commission and other stakeholders." 

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