National Grid 2008 Annual Report Download - page 271

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 48861
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: 65
Description: EXH 2(B).6.1
0/1669.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/669/1*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 48861
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: 65 Description: EXH 2(B).6.1
0/1669.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/669/1*
provides
g
as distribution services on Cape Cod and in eastern Massachusetts; and Essex Gas provides
g
as distribution
services in eastern Massachusetts. In New Hampshire, Ener
g
yNorth provides
g
as distribution services to customers principally
located in central New Hampshire. KeySpan’s New En
g
land
g
as companies all do business as KeySpan Ener
g
y Delivery New
England (“KEDNE”).
In New York, there are two separate, but conti
g
uous service territories served by KEDNY and KEDLI, comprisin
g
approximately
1,417 square miles and 1.68 million customers. In Massachusetts, Boston Gas, Colonial Gas and Essex Gas serve three
service territories consistin
g
of 1,934 square miles and approximately 792,000 customers. In New Hampshire, Ener
g
yNorth has
a service territory that is contiguous to Colonial Gas’ and ran
g
es from within 30 to 85 miles of the
g
reater Boston area.
Ener
g
yNorth provides service to approximately 80,000 customers over a service area of approximately 922 square miles.
Collectively, KeySpan owns and operates
g
as distribution, transmission and stora
g
e systems that consist of approximately
23,336 miles of gas mains and distribution pipelines.
KeySpan, throu
g
h its electric services se
g
ment, operated as the lar
g
est electricity
g
enerator in New York State. The electric
services se
g
ment consists of subsidiaries that mana
g
e the T&D System owned by LIPA; provide
g
eneratin
g
capacity and, to
the extent required, ener
g
y conversion services for LIPA from the approximately 4,200 MW of
g
eneratin
g
facilities located on
Lon
g
Island; and mana
g
e fuel supplies for LIPA to fuel Lon
g
Island
g
eneratin
g
facilities. These subsidiaries own and operate 5
lar
g
e
g
eneratin
g
plants and 13 smaller facilities which consist of 57
g
eneratin
g
units in Nassau and Suffolk Counties on Lon
g
Island and the Rockaway Peninsula in Queens.
The electric services se
g
ment also includes subsidiaries that own, lease and operate the Ravenswood Facility, located in
Queens County in New York City, and the Ravenswood Expansion which be
g
an full commercial operation in May 2004. The
Ravenswood Generatin
g
Station is expected to be divested in accordance with the terms of the National Grid/KeySpan New
York Public Service Commission mer
g
er order dated 17 September 2007 and is treated as discontinued operations for the
purposes of the Issuer’s financial reporting.
The energy services segment includes companies that provide energy-related services to customers located primarily within the
northeast of the United States, with concentrations in the New York City and Boston metropolitan areas. Subsidiaries in this
se
g
ment provide residential and small commercial customers with service and maintenance of ener
g
y systems and appliances,
as well as operation and maintenance, desi
g
n, en
g
ineerin
g
, consultin
g
and fibre optic services to commercial, institutional and
industrial customers. KeySpan subsidiaries in this se
g
ment have over 200,000 service contracts in place to provide home
energy services, completed over 240,000 service calls during 2006 and completed more than 16,000 installations during 2006.
The ener
g
y investments se
g
ment includes
g
as production and development activities, domestic pipelines,
g
as stora
g
e facilities
and LNG facilities and operations. KeySpan is en
g
a
g
ed in the production and development of domestic
g
as and oil throu
g
h two
wholly-owned subsidiaries.
Legal Proceedings
On 31 May 2007, KeySpan received a CID from the United States Department of Justice, Antitrust Division, requestin
g
the
production of documents and information relatin
g
to its investi
g
ation of competitive issues in the New York City electric ener
g
y
capacity market. The CID is a request for information in the course of an investi
g
ation and does not constitute the
commencement of le
g
al proceedin
g
s, and no specific alle
g
ations have been made a
g
ainst KeySpan. KeySpan intends to fully
co-
65