National Grid 2014 Annual Report Download - page 167

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Strategic Report Corporate Governance Financial Statements Additional Information
Rate plan
2011
2012
2013
2014
2015
2016
Rate base
(31 Mar 2014)
Equity to
debt ratio
Allowed return
onequity
Achieved return
onequity
(31 Dec 2013)
Revenue
decoupling†
Capital tracker‡
Commodity-related
bad debt true-up§
Pension/
OPEB true-up◊
New York
PublicService
Commission
Niagara Mohawk1
(upstate, electricity) $4,248m 48 : 52 9.3% 8.0% ✓ ✗ P✓
Niagara Mohawk
(upstate, gas) $1,013m 48 : 52 9.3% 10.3% ✓ ✗ P✓
KEDNY (downstate)2$2,390m 48 : 52 9.4% 9.5% P P P ✓
KEDLI (downstate)3$2,094m 45 : 55 9.8% 8.8% P P P ✓
Massachusetts
Department of
PublicUtilities
Massachusetts Electric/
Nantucket Electric $1,812m 50 : 50 10.35% 6.4% ✓P✓ ✓
Boston Gas $1,237m 50 : 50 9.75% 8.0% ✓P✓ ✓
Colonial Gas $278m 50 : 50 9.75% 10.8% ✓P✓ ✓
Rhode Island
Public Utilities
Commission
Narragansett
Electric $567m 49 : 51 9.5% 10.1% ✓ ✓ P✓
Narragansett
Gas $466m 49 : 51 9.5% 9.9% ✓ ✓ P✓
Federal Energy
Regulatory
Commission
Narragansett $499m 50 : 50 11.14% 12.0% n/a ✓n/a ✓
Canadian
Interconnector $27m 40 : 60 13.0% 13.0% n/a ✓n/a ✓
New England
Power $1,277m 65 : 35 11.14% 11.7% n/a ✓n/a ✓
Long Island
Generation $433m 46 : 54 10.0% 11.9% n/a ✓n/a ✓
1. Both transmission and distribution, excluding stranded costs.
2. KeySpan Energy Delivery New York (The Brooklyn Union Gas Company).
3. KeySpan Energy Delivery Long Island (KeySpan Gas East Corporation).
†Revenue decoupling
A mechanism that removes the link between a utility’s revenue and
sales volume so that the utility is indifferent to changes in usage.
Revenues are reconciled to a revenue target, with differences
billed or credited to customers. Allows the utility to support energy
efficiency.
‡Capital tracker
A mechanism that allows for the recovery of the revenue
requirement of incremental capital investment above that
embedded in base rates, including depreciation, property
taxesand a return on the incremental investment.
§Commodity-related bad debt true-up
A mechanism that allows a utility to reconcile commodity-related
bad debt to either actual commodity-related bad debt or to a
specified commodity-related bad debt write-off percentage. For
electricity utilities, this mechanism also includes working capital.
◊Pension/OPEB true-up
A mechanism that reconciles the actual non-capitalised costs
ofpension and OPEB and the actual amount recovered in base
rates. The difference may be amortised and recovered over
aperiod or deferred for a future rate case.
Summary of US price controls and rate plans
Rate filing made
New rates effective
Rate plan ends
Rates continue indefinitely
✓ Feature in place
✗ Feature not in current rate plan
P Feature partially in place
165