28th Sep 2021 08:48
(Alliance News) - National Grid PLC on Tuesday said it has filed a three-year rate plan for Niagara Mohawk Power Corp, its upstate New York utility.
National Grid provides power to the states of New York, Rhode Island and Massachusetts in the US and manages the UK's power infrastructure.
Its proposed New York plans include new rates that will be backdated to July this year. If passed, the plans will trigger a 2.2% average electric price increase and a 2.0% gas increase for customers. The New York Public Service Commission is expected to make a final decision in the next few months, National Grid said.
The proposal comes as an energy crunch in the northern hemisphere has sent natural gas prices to a seven-year high.
National Grid is requesting a USD255 million cumulative electric revenue increase and a USD75 million cumulative gas revenue increase over the next three years, as well as an allowed return on equity of 9.0%.
The FTSE 100 power company said Niagara Mohawk serves 1.6 million electric and 600,000 million gas customers, representing around 30% of its US rate base.
"The settlement maintains a focus on managing customer affordability in response to the economic downturn caused by Covid-19, while funding programmes necessary to maintain safe and reliable service, modernise the electric and gas networks, and promote economic growth in the state," the power company commented.
Back in June, Moody's Investors Service downgraded its outlook on two National Grid-owned utilities, KeySpan Gas East Corp and Brooklyn Union Gas Co, after National Grid filed in May a joint proposal for a three-year rate plan running from April 2020 to March 2023.
The long-term issuer and senior unsecured ratings of KeySpan Gas were downgraded to Baa1 from A3, and Brooklyn Union Gas Co to Baa2 from Baa1.
Shares in National Grid were down 0.9% at 901.20 pence in London on Tuesday morning.
By Josie O'Brien; [email protected]
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