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RNS Number : 5523H
National Grid PLC
16 November 2018
16 November 2018
National Grid plc
New regulatory filings in Massachusetts and New York
National Grid has made two filings to regulators in
Massachusetts and New York. These filings are in line with our
strategy to deliver investments that drive greater efficiency and
improved services for customers, whilst also supporting regulators
in achieving their clean energy goals. Both filings highlight new
growth opportunities arising from the changing energy
landscape.
Massachusetts Electric
National Grid has filed a request with the Massachusetts
Department of Public Utilities (DPU) to update electricity
distribution rates for its Massachusetts Electric business.
The rate filing requests an approximate $70 million per annum
increase in revenue to cover increased operating costs and
investments and a Return on Equity of 10.5%. It supports annual
capital expenditure of $300 million starting in the first year of
the plan and, if approved, will commence in October 2019.
As part of the filing, National Grid is proposing a new
Performance Based Rate Mechanism (PBRM) that will link annual
revenue increase to inflation, but also take into account
improvements in the efficiency of the business.
The filing includes a request for significant investment in
electric vehicle charging infrastructure in Massachusetts. This
would be a five year, $167 million investment to provide over
17,000 new charging points across the state. In addition, it
includes a proposal for a $50 million utility scale 14MW / 56MWh
energy storage investment. Both of these proposals would be
recovered through existing regulatory mechanisms outside the
requested $70 million revenue increase.
This rate filing is expected to conclude in September 2019, with
new rates effective 1 October 2019.
Niagara Mohawk (New York) AMI proposal
National Grid has also filed a capital investment request for
$650 million with the New York Public Service Commission (PSC).
This is to install 1.7 million electric Advanced Metering
Infrastructure (AMI) meters, and 640,000 gas modules, across our
Niagara Mohawk business between 2021 and 2024.
AMI is a smart meter technology that offers customers greater
control over their energy use, and is part of New York State's
clean energy goal of reducing greenhouse gas emissions by 80% on
1990 levels by 2050.
Investors and Analysts
+44 (0) 20 7004 3170 +44 (0) 7989 492 447
(d) (m)
Aarti Singhal
+44 (0) 20 7004 3129 +44 (0) 7970 778 952
James Flanagan (d) (m)
+44 (0) 20 7004 3460 +44 (0) 7976 962 791
Tom Edwards (d) (m)
+44 (0) 20 7004 3166 +44 (0) 7584 206 578
Will Jackson (d) (m)
Media
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Sean Kemp (m)
Massachusetts Electric Factsheet
For additional information, please follow the link to the fact
sheet section of the National Grid Investor Relations website: Link
here
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 (the
Company) financial condition, its results of operations and
businesses, strategy, plans and objectives. Words such as 'aims',
'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, predict or estimate precisely, such as changes
in laws or regulations, including any arising as a result of the
United Kingdom's exit from the European Union, announcements from
and decisions by governmental bodies or regulators, including those
relating to the role of the UK electricity system operator; 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, cost efficiency 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
National Grid's employees or the breach of laws or regulations by
its employees; the failure to respond to market developments,
including competition for onshore transmission, the threats 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 sale of the remaining Cadent stake. 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 193 to 196 of National Grid's most
recent Annual Report and Accounts, as updated by National Grid's
unaudited half-year financial information for the six months ended
30 September 2018 published on 8 November 2018. 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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