National Grid 2008 Annual Report Download - page 330

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 4704
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: 124
Description: EXH 2(B).6.1
0/2728.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/728/2*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 4704
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: 124 Description: EXH 2(B).6.1
0/2728.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/728/2*
The Company and other related subsidiaries participate with National Grid Holdin
g
s, Inc. (NGHI), a wholly owned subsidiary of
National Grid plc, in filing consolidated US federal income tax returns. The Company’s tax provisions and tax accounts are
calculated on a separate company basis. Federal income tax returns have been examined and all appeals and issues have
been a
g
reed upon by the Internal Revenue Service (IRS) and the NGHI consolidated filin
g
g
roup throu
g
h March 31, 2002. The
IRS is currently reviewin
g
the March 31, 2003 and March 31, 2004 tax returns of the NGHI consolidated filin
g
g
roup. The IRS
has issued a preliminary notice of deficiency disallowin
g
certain tax deductions taken in these consolidated US federal income
tax returns. These adjustments are bein
g
appealed. The Company has joint and several liability for any potential assessments
a
g
ainst the consolidated
g
roup. Mana
g
ement believes that the positions taken by the Company and its related subsidiaries and
parent company are appropriate and the resolution of the tax matters will not have a material effect on the Company’s financial
position, results of operations or cash flows.
There were no valuation allowances for deferred tax assets deemed necessary at March 31, 2007 or 2006.
NOTE H – LONG-TERM DEBT
Long-term debt consists of the following:
Narragansett Electric
Substantially all of the properties and franchises of the Company are subject to the lien of mort
g
a
g
e indentures under which the
first mortgage bonds have been issued.
In connection with the acquisition of the Rhode Island
g
as assets of Southern Union Gas and assumption of $77 million of first
mort
g
a
g
e bonds, the Company has deposited $17 million with its first mort
g
a
g
e trustee to provide for the redemption of the
Company’s pre-acquisition first mort
g
a
g
e bonds. The principal amount is $15 million and the additional $2 million would satisfy
all interest and premium due on
F-39
At March 31
Series Rate % Maturit
y
2007 2006
(In thousands
)
First Mort
g
a
g
e Bonds:
U(93-3) 6.650 June 30, 2008 $ 5,000 $ 5,000
M
(
Formerl
y
Providence Gas
)
10.250 Jul
y
31, 2008 544
—
S (Formerly Providence Gas) 6.820 April 1, 2018 14,464 —
N (Formerly Providence Gas) 9.630 May 30, 2020 10,000 —
O
(
Formerl
y
Providence Gas
)
8.460 Se
p
tember 30, 2022 12,500
—
P (Formerly Providence Gas) 8.090 September 30, 2022 10,000 —
R
(
Formerl
y
Providence Gas
)
7.500 December 15, 2025 14,250
—
W(97-l) 7.390 September 30, 2027 3,000 3,000
W
(
97-2
)
7.390 October 1, 2027 7,000 7,000
Unamortized discounts (212) (237)
Total long-term debt $ 76,546 $ 14,763
Long-term debt due within one year 11,648 —
Total long-term debt, excluding current
p
ortion $ 64,898 $ 14,763