By Ian Walker

LONDON--National Grid PLC (NG.LN) said Thursday it has now agreed a three-year rate plan settlement for the KeySpan Energy Delivery New York and KeySpan Energy Delivery Long Island gas distribution utilities.

The electricity and gas utility company said the new proposal includes revenue increases over each of the three years, an allowed 9% return on equity for both utilities, and a $3 billion capital program.

Customer bill increases, however, will be more evenly phased across the three years, with a smaller increase in the first year and higher increases in the subsequent two years, National Grid said.

"This settlement will allow us to continue to meet our customer needs and support the local communities we serve, while managing the customer bill impact over three years," National Grid said.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

September 08, 2016 02:35 ET (06:35 GMT)

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