10 April 2024
National Grid plc
Three-year rate plan proposal filed
for National Grid's
downstate New York Gas
Businesses
National Grid has filed a Joint
Proposal with the New York Public Service Commission for a
multi-year rate settlement for its two downstate New York gas
distribution businesses (KEDNY and KEDLI).
The proposed settlement is for a
three-year rate plan with new rates effective April 2024. A final
decision from the New York Public Service Commission is expected in
the next few months.
The proposed settlement will
fund programmes necessary to modernise the gas network and continue
a safe and reliable service for our customers. It will maintain a
focus on customer affordability through delivering efficiencies and
bill assistance programmes over the duration of the proposed rate
plan. The plan includes funding
for capital investment of $924 million for KEDNY and $646 million
for KEDLI in the first rate year, and a Return on Equity of 9.35%.
It also includes programmes to reduce methane emissions, promote
non-gas alternatives, and expand energy efficiency in support of
the State's environmental goals.
For additional information on these
filings, please follow this
link
to the factsheet section
of our investor's website.
Notes
The two utilities with approximately
1.9 million gas customers consist of KeySpan Energy Delivery New
York (KEDNY) serving parts of New York City and KeySpan Energy
Delivery Long Island (KEDLI) serving Long Island and the Rockaway
Peninsula.
Investors and Analysts
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James Flanagan
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Media
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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
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materially from those expressed in or implied by such
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risks and uncertainties relate to factors that are beyond National
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changes in laws or regulations, including any arising as a result
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RIIO-T2 and RIIO-ED2 price controls and the proposals for the
future of system operation in the UK; the timing of construction
and delivery by third parties of new generation projects requiring
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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, as
well as against targets and standards designed to deliver net zero;
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; 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,
develop and 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; the failure by the Company to respond to, or meet its
own commitments as a leader in relation to, climate change
development activities relating to energy transition, including 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 the sale of the Company's UK gas
transmission and metering business, its strategic infrastructure
projects and joint ventures and the separation and transfer of the
electricity system operator to the public sector. 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 225 to 228
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 2023 published on
9 November 2023. 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.