National Grid files for regulatory investment in Massachusetts and New York
By Josh White
Date: Friday 16 Nov 2018
(Sharecast News) - National Grid has made two filings to regulators in Massachusetts and New York, it announced on Friday, which it said were in line with its strategy to deliver investments that drove greater efficiency and improved services for customers, while also supporting regulators in achieving clean energy goals.
The FTSE 100 energy infrastructure operator said both filings highlighted new growth opportunities arising from a changing energy landscape.
At Massachusetts Electric, National Grid filed a request with the Massachusetts Department of Public Utilities (DPU) to update electricity distribution rates for the business.
The rate filing requested an approximate $70m per annum increase in revenue to cover increased operating costs and investments, and a return on equity of 10.5%.
It would support annual capital expenditure of $300m starting in the first year of the plan and, if approved, would commence in October 2019.
As part of the filing, National Grid was proposing a new performance-based rate mechanism (PBRM) that would link annual revenue increase to inflation, but also take into account improvements in the efficiency of the business.
"The filing includes a request for significant investment in electric vehicle charging infrastructure in Massachusetts," the National Grid board said in its statement.
"This would be a five-year, $167m investment to provide over 17,000 new charging points across the state."
In addition, it included a proposal for a $50m utility-scale 14MW / 56MWh energy storage investment.
"Both of these proposals would be recovered through existing regulatory mechanisms outside the requested $70m revenue increase."
The rate filing was expected to conclude in September 2019, with new rates effective 1 October 2019.
At its Niagara Mohawk business in New York, National Grid filed a capital investment request for $650m with the New York Public Service Commission.
That was to install 1.7 million electric 'advanced metering infrastructure' meters, and 640,000 gas modules, across the business between 2021 and 2024.
"AMI is a smart meter technology that offers customers greater control over their energy use, and is part of New York State's clean energy goal of reducing greenhouse gas emissions by 80% on 1990 levels by 2050," National Grid explained.
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