National Grid 2008 Annual Report Download - page 264

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 1601
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: 58
Description: EXH 2(B).6.1
0/2662.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/662/2*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 1601
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: 58 Description: EXH 2(B).6.1
0/2662.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/662/2*
customers. The Issuer’s subsidiaries involved in this type of unre
g
ulated activity have over 200,000 service contracts in place to
provide home energy services.
KeySpan subsidiaries en
g
a
g
ed in
g
as production and development activities, domestic pipelines,
g
as stora
g
e facilities and LNG
facilities and operations. These subsidiaries own an interest in a partnership of affiliates of six U.S. and Canadian ener
g
y
companies, which partnership is the owner of a 411-mile interstate gas pipeline extending from the U.S.-Canadian border at
Waddin
g
ton, New York throu
g
h western Connecticut to its terminus in Commack, New York, and from Huntin
g
ton to the Bronx.
The pipeline can transport up to 1,124,500 decatherms (“DTH”) per day of Canadian gas supply from the New York-Canadian
border to markets in the northeast of the United States. Throu
g
h such entities, the Issuer is also a shipper and currently
transport up to 304,950 DTH of gas per day.
KeySpan subsidiary that was created to pursue the authorization and construction of an interstate pipeline from Connecticut,
across Lon
g
Island Sound, to a terminus near Shoreham, Lon
g
Island. In addition, the Issuer owns an interest in a pipeline
project which is anticipated to transport up to 525,000 DTH of
g
as a day from Cornin
g
to Ramapo, New York, interconnectin
g
with the pipeline systems of various other utilities in New York.
Equity investments, in two
g
as stora
g
e facilities in the State of New York which provide up to 4.3 billion cubic feet of stora
g
e
service to New York and New En
g
land, and up to 6.2 billion cubic feet of stora
g
e service to New Jersey and Massachusetts,
respectively.
Ravenswood Generating Station
The Ravenswood Facility (defined below) is expected to be divested in accordance with the terms of the National Grid/KeySpan
NYPSC merger order dated 17 September 2007. At present, one of the Issuer’s KeySpan subsidiaries owns, leases and
operates the 2,200 MW Ravenswood electric generation facility (the “Ravenswood Facility”), located in Queens County in
New York City, and the 250 MW combined cycle generating unit (the “Ravenswood Expansion”) which be
g
an full commercial
operation in May 2004 (collectively, the Ravenswood Facility and the Ravenswood Expansion are referred to as the
“Ravenswood Generating Station” and have a total electric capacity of 2,450 MW). The Ravenswood Generatin
g
Station
located in Queens County, is the lar
g
est
g
eneratin
g
facility in New York City. The Ravenswood Generatin
g
Station consists of 3
large steam-
g
eneratin
g
units, a 250 MW combined cycle
g
eneratin
g
unit and 17
g
as turbine
g
enerators. The Ravenswood
Generating Station sells capacity, energy and ancillary services into the ISO-New York electricity market at market-based rates,
subject to miti
g
ation. The Ravenswood Generatin
g
Station Facility has the ability to provide approximately 25 per cent. of New
York City’s capacity requirements and is a strategic asset that is available to serve residents and businesses in New York City.
The ISO-New York’s New York City local reliability rules require that 80 per cent. of the electric capacity needs of New York
City be provided by “in-City” generators. National Grid USA’s Ravenswood Generating Station is an “in-City”
g
enerator. As the
electric infrastructure in New York City and the surroundin
g
areas continues to chan
g
e and evolve and the demand for electric
power increases, the in-City
g
enerator requirement could be further modified. Construction of new transmission and
g
eneration
facilities may cause significant changes to the market for sales of capacity, energy and ancillary services from the Issuer’s
Ravenswood Generating Station. The Issuer’s Keyspan subsidiary also operates and maintains a 55 MW
g
as turbine unit in
Greenport, Long Island under an agreement with a third party.
58