National Grid 2008 Annual Report Download - page 335

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50211
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: 129
Description: EXH 2(B).6.1
0/2733.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/733/2*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50211
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: 129 Description: EXH 2(B).6.1
0/2733.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/733/2*
At March 31, 2007, the Company’s subsidiaries’ long-term debt, excludin
g
intercompany debt, had a carryin
g
value of
$2.2 billion and a fair value of $2.2 billion. The fair value of debt that reprices frequently at market rates approximates carryin
g
value. The fair market value of the Company’s subsidiaries’ long-term debt was estimated based on the quoted prices for
similar issues or on the current rates offered to the Company and its subsidiaries for debt of the same remaining maturity.
NOTE I – SHORT-TERM DEBT
NEP
At March 31, 2007 and 2006, NEP had lines of credit and standby bond purchase facilities with banks totalin
g
$440 million,
which is available to provide liquidity support for $410 million of NEP’s long-term bonds in tax-exempt commercial paper mode,
and for other corporate purposes. The agreement with banks that provide NEP’s line of credit and standby bond purchase
facility expires on November 29, 2009. There were no borrowings under these lines of credit at March 31, 2007.
Inter-company money pool
The Company and certain subsidiaries operate a money pool to more effectively utilize cash resources and to reduce outside
short-term borrowings. Short-term borrowin
g
needs are met first by available funds of the money pool participants. Borrowin
g
companies pay interest at a rate designed to approximate the cost of third-party short-term borrowin
g
s. Companies that invest
in the pool share the interest earned on a basis proportionate to their avera
g
e monthly investment in the money pool. Funds
may be withdrawn from or repaid to the pool at any time without prior notice. The Company has the ability to borrow up to
$2 billion from its parent (throu
g
h intermediary entities), National Grid plc, and certain other subsidiaries of National Grid plc,
includin
g
for the purpose of fundin
g
the money pool, if necessary. At March 31, 2007 and 2006, the Company had borrowed
$1 billion and $644 million, respectively, under this arrangement.
NOTE J — CUMULATIVE PREFERRED STOCK
A summary of cumulative preferred stock at March 31, 2007 and 2006 is as follows (in thousands except for share data and call
price):
F-44
Fiscal Year Amount
$ 3,389,068
March 31, March 31, March 31, March 31,
2007 2006 2007 2006
Shares Amount Call
Com
p
an
y
Outstandin
g
(
in 000’s
)
Price
$100 par value -
3.40% Series Niagara Mohawk
57,536 57,536 $ 5,754 $ 5,754 $103.500
3.60% Series Nia
g
ara Mohawk 137,139 137,139 13,714 13,714 104.850
3.90% Series Niagara Mohawk 94,967 94,967 9,496 9,496 106.000
4.10% Series Nia
g
ara Mohawk 52,830 52,830 5,283 5,283 102.000
4.44% Series Mass Electric 22,585 22,585 2,259 2,259 104.068
4.76% Series Mass Electric 24,680 24,680 2,468 2,468 103.730
4.85% Series Niagara Mohawk 35,128 35,128 3,513 3,513 102.000
5.25% Series Nia
g
ara Mohawk 34,115 34,115 3,410 3,410 102.000
6.00% Series New England Power 11,117 11,117 1,112 1,112 (a)
$50 par value -
4.50% Series
Narragansett 49,089 49,089 2,454 2,454 55.000