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           +44 (0)20 7004 3170        +44 (0)7901 511322 (m)

George Laskaris    +1 718 403 2526              +1 917 375 0989 (m)

Richard Smith       +44 (0)20 7004 3172        +44 (0)7747 006321 (m)

Victoria Davies      +44 (0)20 7004 3171        +44 (0)7771 973 447 (m)

Iwan Hughes         +44 (0)20 7004 3169


Media

Clive Hawkins        +44 (0)20 7004 3147        +44 (0)7836 357173 (m)

Chris Mostyn          +1 718 403 2747              +1 347 702 3740 (m)

Gemma Stokes     +44 (0)1926 656555         +44 (0) 7974 198333 (m)


Brunswick

Tom Burns        +44 (0)20 7404 5959        +44 (0)7974 982308 (m)




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