National Grid 2008 Annual Report Download - page 645

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 10812
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: 118
Description: EXHIBIT 15.1
0/9314.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/314/9*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 10812
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: 118 Description: EXHIBIT 15.1
0/9314.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/314/9*
Table of Contents
126
Notes to the consolidated financial statements
National Grid plc
Notes to the consolidated financial statements –
analysis of items in the primary statements
1. Segmental analysis
The following table describes the main activities for each business segment:
Other activities primarily relate to non-regulated businesses and other commercial operations not included within the above
segments, including UK-based gas metering activities; UK property management; a UK LNG import terminal; other LNG
operations; US unregulated transmission pipelines; US home services; US gas fields; together with corporate activities,
including business development.
Discontinued operations comprise wireless infrastructure and communications operations in the UK and the US, an electricity
interconnector in Australia, the Ravenswood generation station in New York City and the engineering and communications
operations in the US acquired as part of the KeySpan acquisition. The wireless infrastructure operations in the UK were sold on
3 April 2007; the US wireless operations were sold on 15 August 2007; and the Basslink electricity interconnector in Australia
was sold on 31 Au
g
ust 2007. The results for discontinued operations are disclosed in note 8.
Our se
g
ments are unchan
g
ed from those reported in the financial statements for the year ended 31 March 2007, except for our
former US Electricity Distribution segment, which, as a consequence of the acquisition of KeySpan on 24 August 2007, has
been expanded to incorporate the operations of KeySpan’s generation business and is now reported as Electricity Distribution
& Generation US. In addition, in line with our management structure, the recovery of stranded costs from US electricity
distribution customers as permitted by regulatory agreements is no longer presented as a separate segment but is reported
within Electricity Distribution & Generation US. Prior year comparatives have been adjusted to conform with the current year
classification.
Sales between businesses are priced having regard to the regulatory and legal requirements to which the businesses are
subject.
(a) Revenue
*Comparatives have been adjusted to present items on a basis consistent with the current year classification
The table above represents revenue from continuing operations only, as disclosed in the consolidated income
statement. For additional disclosures relating to discontinued operations, refer to note 8.
The analysis of revenue by geographical area is on the basis of destination. There are no material sales between
the UK and US
g
eo
g
ra
p
hical areas.
Transmission UK High-voltage electricity transmission networks, the gas transmission network in the UK, the UK
li
q
uefied natural
g
as
(
LNG
)
stora
g
e activities and the French electricit
y
interconnector.
Transmission US Hi
g
h-volta
g
e electricit
y
transmission networks in New York and New En
g
land.
Gas Distribution UK Four of the ei
g
ht re
g
ional networks of Great Britain’s
g
as distribution s
y
stem.
Gas Distribution US Gas distribution in New York and New England.
Electricit
y
Distribution & Generation US Electricit
y
distribution in New York and New En
g
land, and electricit
y
g
eneration in New York.
Sales Sales Sales Sales Sales Sales
Total between to third Total between to third Total between to third
sales businesses parties sales businesses parties sales businesses parties
2008 2008 2008 2007 2007 2007 2006 2006 2006
£m £m £m £m £m £m £m £m £m
Business se
g
ments
–
continuin
g
o
p
erations
Transmission UK 2,956 16 2,940 2,816 18 2,798 2,710 15 2,695
Transmission US 299 61 238 270 47 223 310 48 262
Gas Distribution UK 1,383 70 1,313 1,193 92 1,101 1,222 86 1,136
Gas Distribution US 2,845 22,843 638
–
638 571
–
571
Electricit
y
Distribution & Generation US* 3,508 23,506 3,430 2 3,428 3,651 2 3,649
Other activities 642 59 583 567 60 507 701 146 555
11,633 210 11,423 8,914 219 8,695 9,165 297 8,868
Total excludin
g
stranded cost recoveries 11,041 8,269 8,351
Stranded cost recoveries 382 426 517
11,423 8,695 8,868
Geographical segments
UK 4,787 4,397 4,374
US 6,636 4,298 4,494
11,423 8,695 8,868