National Grid PLC Rate Filings Submitted for KEDNY and KEDLI (4816N)
January 29 2016 - 11:30AM
UK Regulatory
TIDMNG.
RNS Number : 4816N
National Grid PLC
29 January 2016
29 January 2016
National Grid plc
Downstate New York Gas Distribution Rate Filings Submitted
for KEDNY and KEDLI
On 29 January 2016, National Grid filed requests with the New
York Public Service Commission to update its gas distribution rates
for its two downstate New York gas distribution utilities. The two
utilities with 1.8 million customers consist of KeySpan Energy
Delivery New York (KEDNY) serving parts of the New York City region
and KeySpan Energy Delivery Long Island (KEDLI) serving the Long
Island/Rockaway Peninsula region.
These filings represent the first rate review for both utilities
since the merger agreement, at the time of the National
Grid/KeySpan acquisition in 2006/07, and the companies have held
delivery rates flat since 2008. Since then National Grid has
invested more than $4.5bn across the networks, to modernize and
build a safer and more reliable natural gas system for its
customers.
The rate case proposals will allow National Grid to meet
customer expectations to modernize and enhance the safety,
reliability and resilience of its aging gas infrastructure and to
upgrade the gas network to deliver economic and environmental
benefits.
The filings include rate year capital investments of $610
million for KEDNY and $340 million for KEDLI, which include
accelerated replacement of leak prone pipe. To fund these
investments and to cover increased operating costs, from inflation
and new gas safety requirements, National Grid's proposals seek an
increase of $245 million in annual revenue for its KEDNY utility
and a $142 million increase for its KEDLI utility for the 2017 rate
year.
The filing is expected to take up to 11 months to review and to
conclude in December 2016, with new rates effective 1 January
2017.
Today's filing follows the recent Massachusetts Electric rate
filing in November and a 2-year extension petition filed for our
upstate New York utility (NiMo) in December, demonstrating a more
regular programme of rate filings in our US business.
For additional information on these filings, please follow the
link to the fact sheet section of our investor's website: - Link
here and a link to the US press release on the US corporate
website: - Link here
Investors and Analysts
+44 (0)20 7004 +44 (0)7989 492447
Aarti Singhal 3170 (m)
+44 (0)1926 65 +44 (0)7816 847918
David Brining 6844 (m)
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George Laskaris +1 929 324 4710 (m)
+44 (0)20 7004 +44 (0)7771 973447
Victoria Davies 3171 (m)
+44 (0)20 7004 +44 (0)7789 878784
Michael Ioanilli 3006 (m)
+44 (0)20 7004 +44 (0)7768 294017
Richard Foster 3169 (m)
CAUTIONARY STATEMENT
This announcement contains certain statements that are neither
reported financial results nor other historical information. These
statements are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements include information with respect to National Grid's
financial condition, its results of operations and businesses,
strategy, plans and objectives. Words such as 'anticipates',
'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
'seeks', 'estimates', 'targets', 'may', 'will', 'continue',
'project' and similar expressions, as well as statements in the
future tense, identify forward-looking statements. These
forward-looking statements are not guarantees of National Grid's
future performance and are subject to assumptions, risks and
uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such
forward-looking statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's
ability to control or estimate precisely, such as changes in laws
or regulations, announcements from and decisions by governmental
bodies or regulators (including the timeliness of consents for
construction projects); the timing of construction and delivery by
third parties of new generation projects requiring connection;
breaches of, or changes in, environmental, climate change and
health and safety laws or regulations, including breaches or other
incidents arising from the potentially harmful nature of its
activities; network failure or interruption, the inability to carry
out critical non network operations and damage to infrastructure,
due to adverse weather conditions including the impact of major
storms as well as the results of climate change, due to
counterparties being unable to deliver physical commodities, or due
to the failure of or unauthorised access to or deliberate breaches
of National Grid's IT systems and supporting technology;
performance against regulatory targets and standards and against
National Grid's peers with the aim of delivering stakeholder
expectations regarding costs and efficiency savings, including
those related to investment programmes and internal transformation
and remediation plans; and customers and counterparties (including
financial institutions) failing to perform their obligations to the
Company. Other factors that could cause actual results to differ
materially from those described in this announcement include
fluctuations in exchange rates, interest rates and commodity price
indices; restrictions and conditions (including filing
requirements) in National Grid's borrowing and debt arrangements,
funding costs and access to financing; regulatory requirements for
the Company to maintain financial resources in certain parts of its
business and restrictions on some subsidiaries' transactions such
as paying dividends, lending or levying charges; inflation or
deflation; the delayed timing of recoveries and payments in
National Grid's regulated businesses and whether aspects of its
activities are contestable; the funding requirements and
performance of National Grid's pension schemes and other
post-retirement benefit schemes; the failure to attract, train or
retain employees with the necessary competencies, including
leadership skills, and any significant disputes arising with the
National Grid's employees or the breach of laws or regulations by
its employees; and the failure to respond to market developments,
including competition for onshore transmission, and grow the
Company's business to deliver its strategy, as well as incorrect or
unforeseen assumptions or conclusions (including unanticipated
costs and liabilities) relating to business development activity,
including assumptions in connection with joint ventures. For
further details regarding these and other assumptions, risks and
uncertainties that may impact National Grid, please read the
Strategic Report section and the 'Risk factors' on pages 173 to 176
of National Grid's most recent Annual Report and Accounts. In
addition, new factors emerge from time to time and National Grid
cannot assess the potential impact of any such factor on its
activities or the extent to which any factor, or combination of
factors, may cause actual future results to differ materially from
those contained in any forward-looking statement. Except as may be
required by law or regulation, the Company undertakes no obligation
to update any of its forward-looking statements, which speak only
as of the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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