National Grid 2008 Annual Report Download - page 13

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 46147
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 7
9/6007.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/007/6*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 46147
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 7
9/6007.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/007/6*
Table of Contents
United States
We either own in fee (i.e. freehold) or lease the office buildings that comprise our principal US business
premises located in New York and New England. We own in fee the office buildings located in Westborough and
Northborough, Massachusetts and Syracuse, Albany, Buffalo and Hicksville New York. We lease approximately
335,000 square feet of office space in Brooklyn, New York, at a building known as MetroTech, held on a twenty year
lease through 28 February 2025. We are currently negotiating to reduce our lease at MetroTech by approximately
80,000 square feet. In addition to our principal US offices, we lease other offices and building space in various
locations in New York and New England and office equipment, vehicles and power operated equipment necessary to
meet our current and expected business requirements and operational needs.
In addition to the US property described above, with respect to our US electric distribution, transmission and gas
distribution businesses located in northeastern US (more fully described below), we either own property in fee or in
the case of certain rights of way, hold necessary property rights pursuant to municipal consents, easements or long-
term leases. Other than the New York downstate property acquired as part of the acquisition of KeySpan
Corporation, substantially all of our US properties and franchises (including, our US electric distribution,
transmission and gas distribution systems owned and operated by our US operations) are subject to the liens of
various mortgage indentures and deeds of trust under which mortgage bonds have been issued. At present,
environmental issues are not preventing our US businesses from utilising any material operating assets in the course
of their business. We continually examine our real property and other property for contribution and relevance to our
US businesses and when such properties are no longer productive or suitable, they are disposed of as promptly as
possible. In the case of leased office space, we anticipate no significant difficulty in leasing alternative space at
reasonable rates in the event of the expiration, cancellation or termination of a lease.
US electricity transmission. Our US electricity transmission systems consist of approximately 8,600 miles
(approx. 13,800 kilometers) of transmission and sub-transmission lines located within right-of-way corridors that
traverse both public and private property. Statutory authority, legislative charters and municipal franchise grants
generally provide the National Grid USA companies with the rights required to locate transmission and sub-
transmission facilities within and across public ways. Right-of-way corridors that cross privately owned land have
generally been acquired in fee or pursuant to grants of perpetual easements. Transmission and sub-transmission
substation facilities are principally located on properties that are owned in fee.
US electricity and gas distribution. Our US electricity and gas distribution systems consist of approximately
72,000 circuit miles (approx. 116,000 kilometers) of electric distribution lines located on rights-of-way in New
England and New York, and approximately 36,000 miles (approx. 58,000 kilometers) of gas distribution pipelines
located on rights-of-way in New York, New York City, Long Island, Massachusetts, New Hampshire and Rhode
Island. Statutory authority, legislative charters and municipal franchise grants generally provide our US operations
with the rights required to locate distribution facilities within and across public ways. Right-of-way corridors that
cross privately owned land have principally been acquired in fee or pursuant to grants of perpetual easements.
Electric distribution substations and gas distribution regulator stations are principally located on properties owned in
fee pursuant to grants of perpetual easements or pursuant to legislative charters and municipal franchise grants.
Item 4A. Unresolved Staff Comments
There are no unresolved staff comments required to be reported under this Item 4A.
Item 5. Operating and Financial Review and Prospects
The information set forth under the headings “Operating and Financial Review” on pages 14 to 85 and
“Research and development” on page 98 of the Company’s Annual Report and Accounts 2007/08 contained in
Exhibit 15.1 is incorporated herein by reference.
Item 6. Directors, Senior Management and Employees
The information set forth under the headings “Board of Directors” on pages 12 and 13, “Directors’
Remuneration Report” on pages 100 to 110, “Note 5 Pensions and other post-retirement benefits” on pages
4