4th Oct 2021 08:17
(Alliance News) - National Grid PLC on Monday confirmed that the Massachusetts Department of Public Utilities has issued a rate case order for its Massachusetts gas business.
National Grid, which provides power to the states of New York, Rhode Island and Massachusetts in the US and manages the UK's power infrastructure, filed for increased gas distribution revenue for the Massachusetts business in November of last year.
Almost a year later, the DPU has approved a five-year rate plan, effective October 1, that includes an allowed return on equity of 9.7% on an equity ratio of 53% and a revenue increase of USD72 million.
The FTSE 100 constituent initially requested an allowed return on equity of 10.5% on a revenue increase of USD138 million. It said at the time these figures would cover increased operating costs and core investments.
The DPU's order also includes a new performance-based rate mechanism that will link annual revenue increases and expenditure to inflation, similar to National Grid's Massachusetts energy business.
Last Tuesday, National Grid filed a three-year rate plan for Niagara Mohawk Power Corp, its upstate New York utility, to be backdated to July this year.
If passed, the New York plans will trigger a 2.2% average electric price increase and a 2.0% gas increase for customers.
Shares in National Grid were trading 0.1% higher at 895.90 pence in London on Monday morning.
By Josie O'Brien; [email protected]
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