NGG National Grid Plc New

By Alex MacDonald

LONDON--U.K.-based energy grid operator National Grid PLC (NG.LN) said Monday it has been allowed to increase retail electricity rates in Massachusetts for the first time since 2010.

Massachusetts Department of Public Utilities has allowed National Grid's Massachusetts Electric Company, which distributes electricity to 1.3 million customers in Massachusetts to earn a 9.9% return on equity and a 50.7% equity capital structure.

The rate rise, which starts as of Oct. 1 translates to a revenue increase of $101 million for the U.S. utility. This is less than the $130 million the unit has most recently requested and $143 million it had originally requested.

The rate order means residential customers' bills will increase by 7%.

National Grid owns and operate electricity distribution networks in upstate New York, Massachusetts, and Rhode Island that provide power to about 3.4 million consumers in New England and upstate New York.

Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

October 03, 2016 02:39 ET (06:39 GMT)

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