National Grid 2006 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2006 National Grid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 67

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67

Gas revenues increased $28 million (3.6%) in the fiscal year ended March 31, 2005. The increase
was primarily a result of higher gas prices being passed through to customers, partially offset by a
decrease in throughput.
Gas purchased expense has no impact on the Company’s net income as all gas commodity
costs are recoverable from customers through a regulatory deferral mechanism in effect. Gas pur-
chased increased approximately $232 million (45.5%) in the current fiscal year compared to the
prior fiscal year. This increase is primarily due to an increase in the amount of gas sold for resale
off-system. Purchased gas expense increased approximately $134 million after excluding the
impacts of gas sold off system. This increase is primarily due to increased natural gas prices par-
tially offset by decreased usage by customers. The Company’s net cost per Dth, as charged to
expense, increased to $9.92 in the fiscal year ended March 31, 2006 from $7.12 in the fiscal year
ended March 31, 2005.
Gas purchased expense increased approximately $31 million (6.5%) in the fiscal year ended
March 31, 2005 compared to the fiscal year ended March 31, 2004. This increase is primarily a
result of increased gas prices during the year. The Company’s net cost per Dth, as charged to
expense, increased to $7.12 in the fiscal year ended March 31, 2005 from $6.61 in the prior fiscal
year. This increase in price was slightly offset by decreased purchases.
19
National Grid USA / Annual Report