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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The table below sets forth the Company’s estimated commitments at March 31, 2005, for the
next five years, and thereafter (dollars in millions).
With respect to firm gas supply commitments, the amounts are based upon volumes specified in
the contracts giving consideration for the minimum take provisions. Commodity prices are based
on New York Mercantile Exchange quotes and reservation charges, when applicable. Storage and
pipeline capacity commitments’ amounts are based upon volumes specified in the contracts, and
represent demand charges priced at current filed tariffs. At March 31, 2005, Niagara Mohawk’s
firm gas supply commitments have varying expiration dates, the latest of which is November
2006. The gas storage and transportation commitments have varying expiration dates with the lat-
est being October 2012.
Commodity Reconciliations: As part of Niagara Mohawk’s ongoing reconciliation of commodity
costs and revenues, Niagara Mohawk identified several adjustments for the period from October
1, 2001 through April 30, 2003, and included them in filings with the PSC. Specifically, Niagara
Mohawk requested recovery of $36 million of commodity costs associated with the under-recon-
ciliation of New York Power Authority (NYPA) hydropower revenues in its commodity adjustment
clause, and proposed to refund $24 million associated with other revenues that were not included
in the commodity adjustment reconciliation. Following the filing, the PSC Staff completed a com-
prehensive audit of Niagara Mohawks’ commodity costs and revenues from October 1, 2001
through December 31, 2003, and the Staff and Niagara Mohawk agreed that a refund of $2.8 mil-
lion should be provided to customers through that period. The PSC approved the refund on
December 20, 2004.
Plant Expenditures:
The Company’s utility plant expenditures are estimated to be approximately $608 million in fiscal
2006. At March 31, 2005, substantial commitments had been made relative to future planned
expenditures.
41
National Grid USA / Annual Report
Fiscal Year
Ended
March 31, Amount
2006 255$
2007 114
2008 52
2009 5
2010 5
Thereafter 10
Total 441$