National Grid 2008 Annual Report Download - page 223

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 34157
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 17
Description: EXH 2(B).6.1
0/1621.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/621/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 34157
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 17 Description: EXH 2(B).6.1
0/1621.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/621/1*
In addition, under the terms of the NYPSC Order, if the short term ener
g
y a
g
reement is delayed Ravenswood Generatin
g
Station would be subject to cost-of-service revenue caps. If divestiture is not completed on time, the NYPSC has the ri
g
ht to
consider all options, including cost-of-service revenue caps and the possible requirement that the Group pays U.S.$15 million
per month into a fund for the benefit of certain affected electric customers.
Additional risks include, but are not limited to, the following:
For additional background information related to these risk factors, see “Description of National Grid USA” contained herein.
Factors which are material for the purpose of assessing the market risks associated with Instruments issued under
the Programme
Instruments may not be a suitable investment for all investors
Each potential investor in any Instruments must determine the suitability of that investment in li
g
ht of its own circumstances. In
particular, each potential investor should:
17
(vi) risks related to certain Federal Energy Regulatory Commission (“FERC”) proceedings concerning New York City’s In-
City capacity market as explained below.
• inflationary trends and increases in prevailing interest rates on the Group’s borrowin
g
s as well as
g
eneral economic
conditions, especially in the northeast United States;
• creditworthiness of counter
p
arties to derivative instruments and commodit
y
contracts;
• retention of key personnel and the Group’s ability to successfully ne
g
otiate extensions to collective bar
g
ainin
g
a
g
reements;
• potential write-down of the Group’s investment in
g
as properties when
g
as prices are depressed or if the Group has
si
g
nificant downward revisions in its estimated
p
roved
g
as reserves;
• the de
g
ree to which the Group develops unre
g
ulated business ventures as well as federal and state re
g
ulatory policies
affectin
g
the abilit
y
of the Grou
p
to retain and o
p
erate such business ventures
p
rofitabl
y
;
• a change in the fair market value of the Group’s investments that could cause a si
g
nificant chan
g
e in the carryin
g
value
of such investments or the carr
y
in
g
value of related
g
oodwill;
• the Group’s insurance not adequately providing coverage for certain hazards, such as unexpected outages at critical
facilities, dama
g
e to
p
i
p
elines, e
q
ui
p
ment,
p
ro
p
erties and
p
eo
p
le;
• material losses resulting from In-City Unforced Capacity prices being on average less than U.S.$7.57/kW-month in
connection with the financial swa
p
a
g
reement for In-Cit
y
Unforced Ca
p
acit
y
;
• competition facing the Group’s unregulated energy services businesses as well as the Group’s
g
as distribution business;
and
• other risks detailed from time to time in other reports and other documents filed by the Group or its affiliates with the
SEC.
(i) have sufficient knowled
g
e and experience to make a meanin
g
ful evaluation of the relevant Instruments, the merits and
risks of investin
g
in the relevant Instruments and the information contained or incorporated by reference in this
Prospectus or any applicable supplement;