National Grid PLC Investment Order received for Niagara Mohawk (0605Z)
24 May 2016 - 2:43AM
UK Regulatory
TIDMNG.
RNS Number : 0605Z
National Grid PLC
23 May 2016
23 May 2016
National Grid plc
Capital Investment and Financing Orders received for Niagara
Mohawk Electric and Gas businesses
National Grid announces that the New York Public Service
Commission has issued an order approving a capital investment
petition for $1.3bn for its Niagara Mohawk utility, resulting in
two additional years at current rates for customers.
This order will facilitate significant investments to increase
the safety and reliability of the electric and gas distribution
systems, modernize networks, promote gas growth and enhance storm
resilience.
The petition provides incremental revenues of approximately $50m
in FY17 and $90m in FY18, with no increase to customer bills
through the use of deferred credits.
National Grid also received authority to issue up to $2.07
billion of new long-term debt for: refinancing maturing debt;
replacing variable debt with fixed-interest debt; financing the
capital needs of the business and for general corporate
purposes.
Separately, on 20 May, National Grid received the New York
Department of Public Service's (DPS) intervenor testimony for the
KEDNY and KEDLI rate cases. This is the DPS Staff's opening
position and National Grid has to respond by 10 June 2016. Hearings
will begin in late June with a decision expected in December 2016
and new rates effective in January 2017.
CONTACTS
Investors:
+44 (0)20
Aarti Singhal 7004 3170
+44 (0)20
David Brining 7004 3166
+44 (0)20
Michael Ioanilli 7004 3006
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 '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, announcements from and decisions by governmental
bodies or regulators (including the timeliness of consents for
construction projects); 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;
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 internal transformation
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 skills, and any significant disputes arising with the
National Grid's employees or the breach of laws or regulations by
its employees; and the failure to respond to market developments,
including competition for onshore transmission, and 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 assumptions in connection with 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 173 to 176
of National Grid's most recent Annual Report and Accounts. 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 company news service from the London Stock Exchange
END
MSCUOSNRNUAVUAR
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