National Grid PLC National Grid: MA Gas 2018 Rate Case Order (6155C)
October 02 2018 - 2:00AM
UK Regulatory
TIDMNG.
RNS Number : 6155C
National Grid PLC
02 October 2018
2 October 2018
National Grid plc
Massachusetts Gas 2018 Rate Case Order
Following the rate filing in November 2017, National Grid
confirms that the Massachusetts Department of Public Utilities has
issued its rate case order for our Massachusetts Gas business. This
was the first full rate filing for this utility since 2010.
New rates are effective 1 October 2018, with an allowed Return
on Equity of 9.5% on an equity ratio of 53%. The outcome allows for
annual capital investment of $413 million. Compared to our revenue
request of $87 million the DPU allowed an increase of $56 million.
As expected, this outcome has been adjusted by $44 million
primarily to reflect the lower US tax rate, resulting in a net
revenue increase of $12 million.
The completion of this filing continues our programme of
updating rates, and supports the significant ongoing investment
across our US business.
For additional information, please follow the link to the fact
sheet section of the National Grid Investor Relations website: Link
here
Notes:
National Grid's Massachusetts Gas business comprises Boston Gas
and Colonial Gas.
Investors and Analysts
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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 '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 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 as well
as increased political and economic uncertainty; 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; failure to adequately forecast
and respond to disruptions in energy supply; 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 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 and business capabilities, 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 acquisitions and
disposals) and 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 193 to 196 of National Grid's most recent
Annual Report and Accounts, as published on 4 June 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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