National Grid 2008 Annual Report Download - page 530

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 36728
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 16
Description: EXHIBIT 15.1
0/8212.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/212/8*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 36728
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 16 Description: EXHIBIT 15.1
0/8212.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/212/8*
Table of Contents
Performance summary and
key performance indicators
24
Performance summar
y
and ke
y
p
erformance indicators
National Grid plc
Further information on our performance is included in the Performance against our objectives section on pages 26 to 43. Additional information on delivering our strategy,
operational performance and financial performance is included in the business sections of this Operating and Financial Review on pages 44 to 73.
Delivering our
strategy
Lines of
business
• Established Transmission, Gas Distribution and Electricity Distribution & Generation as lines of business,
with common management teams, each with a responsible Executive Director
• Commenced process of separating out functions and processes that support multiple lines of business
• Previousl
y
se
p
arated UK and US functions combined
–
includin
g
IS, human resources and
p
rocurement
Operating
model
• Established a shared services organisation, based in the UK and US to support the lines of business
• Commenced implementation of new back office systems, to provide a common platform in the future
• Commenced reviews within each line of business, shared services and information services to identify best
p
ractices within different
p
arts of our UK and US o
p
erations, so that the
y
can be shared across National Grid
New
businesses
• Investment and integration of KeySpan Corporation acquired during 2007 for cash consideration of
£3.8 billion, together with acquired debt of £2.2 billion
• Integration of Rhode Island gas distribution operations acquired during 2006/07 for cash consideration of
£269 million
Exit non-
core
businesses
• Sale of UK and US wireless infrastructure operations on 3 April and 15 August 2007 for £2.6 billion
• Sale of Basslink electricity interconnector on 31 August 2007 for proceeds of £485 million
• Entered into agreement on 31 March 2008 to sell the Ravenswood generation station for $2.9 billion
(
£1.4 billion
)
Operating
performance
Safety
Injuries to the public*
(number)
Target: zero
Employee lost time
injury
frequency rate*°
(per 100,000 hours
worked
)
Tar
g
et: zero
Employee sickness
absence rate* (%)
Target: zero work-
related absences
UK gas distribution
mains replacement
(km)
Target: 1,835 km
in 2007/08
Efficiency
• Completed integration of Rhode Island gas operations acquired in the previous year
• Voluntary early retirement programme in the US accepted by 560 employees, as part of the integration of our
operations following the acquisition of KeySpan
• Cost reduction
p
ro
g
rammes undertaken in Transmission UK and Gas Distribution UK
Reliability
Transmission UK
electricity system
reliability (%)
Target: 99.9999%
Transmission UK gas
reliability (%)
Target: 100%
Transmission US
system reliability
(MWh)
Target: less than
264 MWh of losses
Gas Distribution UK
network reliability (%)
Target: 99.999%
Electricity Distribution
US network reliability*
(mins)
Target: less than
110 to 120 mins of
outa
g
es
Capital
investment
Total capital
investment
†
(£m)