National Grid 2008 Annual Report Download - page 257

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 16623
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: 51
Description: EXH 2(B).6.1
0/3655.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/655/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 16623
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: 51 Description: EXH 2(B).6.1
0/3655.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/655/3*
DESCRIPTION OF NATIONAL GRID USA
Overview
National Grid USA is an indirect wholly owned U.S. subsidiary of National Grid plc, a London based international network utility
with principal activities in the re
g
ulated electric and
g
as industries. As used in this description, unless the context requires
otherwise, National Grid USA or the “Issuer”, refer to National Grid USA and its principal public utility subsidiaries. National Grid
USA is the U.S. public utility holdin
g
company of various U.S. electric and
g
as subsidiaries in the National Grid plc system.
National Grid USA’s assets primarily consist of shares of the U.S. public utility companies acquired, over time, pursuant to
several mer
g
er and acquisition transactions, includin
g
, most recently, KeySpan Corporation in Au
g
ust 2007. National Grid USA
does not conduct any business other than throu
g
h its U.S. subsidiaries and is accordin
g
ly dependent on revenue received from
its U.S. subsidiaries’ core businesses, which are the delivery of electricity and
g
as. National Grid USA, throu
g
h its subsidiaries
and their predecessors, has been serving various portions of New York and New England since the mid-1800s.
National Grid USA was incorporated in the State of Delaware on 10 December 1998 under the General Corporation Laws of the
State of Delaware with file number 2977161. The address of National Grid USA is 25 Research Drive, Westborou
g
h, MA 01582
and its telephone number is [phone].
Introduction
National Grid USA’s principal operations are in re
g
ulated networks and comprise the transmission and distribution of electricity
and
g
as based in the United States. The Issuer also owns, leases and operates electric
g
eneratin
g
facilities in New York State
and has interests in electricity interconnectors in the United States.
Business overview
Principal activities and markets
National Grid USA’s principal businesses are:
National Grid USA’s London based parent, National Grid plc, owns businesses that operate in both the United States and the
United Kin
g
dom. As a consequence of the respective economic and re
g
ulatory environments, performance of these U.S.
businesses is reported by National Grid plc by se
g
ment reflectin
g
the mana
g
ement responsibilities and economic
characteristics of each of these operating activities. National Grid USA’s segments as reported by National Grid plc are:
National Grid USA’s principal public utility subsidiaries are as follows:
51
• Electricit
y
Transmission;
• Gas distribution;
• Electricit
y
distribution; and
• Non-regulated businesses.
• Electricit
y
Transmission – U.S.;
• Gas Distribution – U.S.;
• Electricit
y
Distribution – U.S.; and
• U.S. stranded cost recoveries.