National Grid PLC Rate case order issued for Massachusetts Electric (4520L)
October 03 2016 - 2:00AM
UK Regulatory
TIDMNG.
RNS Number : 4520L
National Grid PLC
03 October 2016
3 October 2016
National Grid plc
Rate case order issued for Massachusetts Electric Company
Following National Grid's rate filing in November 2015, on 30
September the Massachusetts Department of Public Utilities (DPU)
issued a rate order for the Massachusetts Electric Company which
supplies 1.3m electricity distribution customers.
New distribution rates, which will increase for the first time
since 2010, are effective 1 October 2016.
Following an initial assessment of the rate order, the key
points are:
-- allowed Return on Equity of 9.9% on a 50.7% equity capital structure
-- revenue increase of $101m, which compares to our ask of $130m (after adjustments to the original request of
$143m)
-- annual capital investment of $249m
It is estimated that this order will result in an approximate 7%
bill increase for residential customers.
A fact sheet will be made available on the National Grid
Investor Relations website later this week following a review of
the detailed terms of the order.
Investors and Analysts
+44 (0)20 7004 +44 (0)7989 492447
Aarti Singhal 3170 (m)
+44 (0)20 7004 +44 (0)7789 878784
Michael Ioanilli 3006 (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, including any arising as a result of the United
Kingdom's anticipated exit from the European Union, 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, the treats and opportunities presented by
emerging technology, development activities relating to changes in
the energy mix and the integration of distributed energy resources,
and the need to 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 the Company's proposed sale of a majority stake in
its UK gas distribution business and 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 183 to 186
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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