National Grid 2008 Annual Report Download - page 167

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 248
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 71
Description: EXH 2(B).5.1
0/3550.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/550/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 248
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 71 Description: EXH 2(B).5.1
0/3550.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/550/3*
Gas Distribution
National Grid’s
g
as distribution business operates in the U.K. and the U.S. As with its transmission business, as a consequence
of the differences in the respective economic and re
g
ulatory environments, National Grid reports the results of this business as
two segments; Gas Distribution – U.K. and Gas Distribution – U.S.
Gas Distribution – U.K.
National Grid’s U.K. gas distribution segment comprises four of Great Britain’s ei
g
ht re
g
ional
g
as distribution networks, and is
the lar
g
est
g
as distribution network in the country, consistin
g
of approximately 82,000 miles of distribution pipelines. National
Grid transports
g
as on behalf of 34 active
g
as shippers from the
g
as transmission network throu
g
h its four re
g
ional
g
as
distribution networks to around 11 million consumers. National Grid is responsible for the safety, development, maintenance
and daily operation of its U.K.
g
as distribution networks. It also mana
g
es the national emer
g
ency number for all of Great
Britain’s gas distribution networks.
Gas Distribution – U.S.
National Grid’s
g
as distribution operations in New York and Rhode Island provide services to 571,000 customers in 216
communities across upstate New York, and 248,000 customers in 33 communities in Rhode Island. Its networks in these two
states total 11,800 miles of gas pipelines and cover approximately 5,460 square miles.
Electricity Distribution
National Grid’s electricity distribution business operates in the U.S. For reportin
g
purposes it is split into two se
g
ments;
Electricity Distribution – U.S. and U.S. stranded cost recoveries.
Electricity Distribution – U.S.
National Grid is one of the leadin
g
electricity distribution service providers in the northeastern U.S., as measured by ener
g
y
delivered, and one of the lar
g
est utilities in the U.S., as measured by the number of electricity distribution customers. Its U.S.
electricity distribution business serves approximately 3.4 million electricity customers over a network of 71,000 circuit miles in
New England and New York. National Grid’s electricity distribution system spans upstate New York, Massachusetts, Rhode
Island and New Hampshire with customers that include domestic homes, small and lar
g
e commercial and industrial enterprises.
U.S. stranded cost recoveries
The U.S. stranded cost recoveries segment captures the recovery of National Grid’s historical investments in
g
eneratin
g
plants
that were “stranded” when National Grid divested its
g
eneration business as part of the industry restructurin
g
and wholesale
power deregulation process in New England and New York. In addition, this segment includes the recovery of certain above-
market costs of commodity purchase contracts that were in place at the time of restructuring and deregulation.
Other activities
National Grid Metering Limited and Utility Metering Services Limited (“Onstream”) provide installation, maintenance and meter
readin
g
services to
g
as and electricity suppliers in the re
g
ulated and unre
g
ulated markets respectively. These businesses
provide services for an asset base of around 20 million domestic, industrial and commercial
g
as meters. National Grid Grain
LNG Limited (“Grain LNG”) is an LNG import terminal and storage facility constructed and operated in
71