REG - National Grid PLC - 3-year rate plan proposal filed for NIMO

National GridAnnouncement

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RNS Number : 3658G  National Grid PLC  28 April 2025

 

 

28 April
2025

 

National Grid plc

 

Three-year rate plan proposal filed for National Grid's Upstate New York
business

 

National Grid plc ("National Grid") has filed a joint proposal with the New
York Public Service Commission for its Upstate New York electric and natural
gas distribution business Niagara Mohawk Power Corporation ("NIMO").

The proposed settlement is for a three-year rate plan that runs from May 2025
through to March 2028. A final decision from the New York Public Service
Commission is expected in the next few months. The plan includes a Return on
Equity of 9.5% and funding for capital investment of $1.43 billion in
electricity and $351 million in gas for NIMO in the first rate year.

The proposed settlement will fund programmes necessary to maintain and improve
reliability, integrate renewables and replace gas pipelines, promoting
economic growth and advancing New York's renewable energy and emissions
reduction goals.  It will maintain a focus on customer affordability through
delivering efficiencies and bill assistance programmes over the duration of
the proposed rate plan.

For further information on this filing, please follow this link
(https://www.nationalgrid.com/investors/resources/factsheets)  to the fact
sheet section of our investor website.

 

Notes

National Grid's Upstate New York electric and natural gas business, Niagara
Mohawk Power Corporation ("NIMO"), serves 1.7 million electric and 600,000 gas
customers and represents around 15% of the Group's regulated asset base.

The joint proposal fully funds the CLCPA Phase 1 programme over the rate plan
and it remains on track for c.$800 million of total investment.  Approved
CLCPA Phase 2 funding of $2.1 billion for upstate electricity transmission
projects will be recovered through a separate agreement.

 

 

Investors and Analysts

 Angela Broad  +44 (0) 7825 351 918
 Tom Edwards   +44 (0) 7976 962 791
 Cerys Reece   +44 (0) 7860 382 264

US Media

 Kerry Burns   +1 315 428 3151
 Ben Trounson  +1 929 585 0339

 

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 (the Company) financial condition, its results of operations
and businesses, strategy, plans and objectives. Words such as 'aims',
'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook',
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similar expressions, as well as statements in the future tense, identify
forward looking statements. This document also references climate-related
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risks in that they are complex, novel and tend to involve projection over long
term scenarios which are subject to significant uncertainty and change. 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 or targets. Many of these
assumptions, risks and uncertainties relate to factors that are beyond
National Grid's ability to control, predict or estimate precisely, such as
changes in laws or regulations and decisions by governmental bodies or
regulators, including those relating to current and upcoming price controls in
the UK and rate cases in the US, as well as the future of system operation in
the UK; 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; reliability of and access to IT systems, including or
due to the failure of or unauthorised access to or deliberate breaches of
National Grid's 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, as well as against targets and standards designed to support its role
in the energy transition; 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 breaches 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 announced sale of
certain of its businesses, its strategic infrastructure projects and joint
ventures and the separation. 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 226 to 231
of National Grid's most recent Annual Report and Accounts as updated by the
principal risks and uncertainties statement in its most recent half year
results statement. 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
announcement is for informational purposes only and does not constitute an
offer to sell or the solicitation of an offer to buy any securities.

 

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