Decision on Massachusetts Ele

RNS Number : 3835D

National Grid PLC

01 December 2009

 



1 December 2009

National Grid plc

Decision on Massachusetts Electric rate case

National Grid plc has received the approval of a new rate plan for its electricity distribution business in Massachusetts. This business represents about 10% of National Grid's US operations. The Massachusetts Department of Utilities (MA DPU) decision results in 60% of our US operations now being covered by new rate plans.

This is the first new electricity distribution rate plan National Grid will operate under since 1999.  The MA DPU order approved a $44m rate increase, with effect from 1 January 2010.  In addition, the MA DPU approved a deferral mechanism for the recovery of $24m of costs associated with the December 2008 ice storm.  Main features of the order included:

• 10.35% return on equity, with an assumed equity ratio of 43.15% and a $1,521m rate base

• Volume - revenue decoupling

• An annual capital investment tracker

• Annual trackers for pensions and OPEB costs

• Improved bad debt recovery allowances.

Tom King, Executive Director said: "This one year rate order is a positive step forward. It provides a sustainable foundation for infrastructure investment, cost recovery, and reliable network operations. In addition, it allows us to more aggressively pursue energy efficiency and help customers lower their overall bills."

CONTACTS

Investors

David Rees           [phone]        [phone] (m)

George Laskaris    [phone]              [phone] (m)

Richard Smith       [phone]        [phone] (m)

Victoria Davies      [phone]        [phone] (m)

Iwan Hughes         [phone]

Media

Clive Hawkins        [phone]        [phone] (m)

Chris Mostyn          [phone]              [phone] (m)

Gemma Stokes     [phone]         [phone] (m)

Brunswick

Tom Burns        [phone]        [phone] (m)

---

 

END

 

 

STRUARURKARURAA