National Grid 2016 Annual Report Download - page 184

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Summary of US price controls and rate plans
Rate plan
2013
2014
2015
2016
2017
2018
Rate base
(31 Mar 2016)
Equity to debt
ratio
Allowed return
on equity
Achieved
return
on equity
(31 Dec 2015)
Revenue
decoupling†
Capital
tracker‡
Commodity-
related bad
debt true-up§
Pension/
OPEB true-up◊
New York
Public Service
Commission
Niagara Mohawk1
(upstate, electricity) $4,621m 48 : 52 9.3% 8.1% F P
Niagara Mohawk
(upstate, gas) $1,160m 48 : 52 9.3% 8.4% F P
KEDNY (downstate)2$2,525m 48 : 52 9.4% 7.1% PPP
KEDLI (downstate)3$2 ,176m 45 : 55 9.8% 7.3% PPP
Massachusetts
Department of
Public Utilities
Massachusetts Electric/
Nantucket Electric $2 ,156m 50 : 50 10.35% 3.4% P
Boston Gas $1,595m 50 : 50 9.75% 8.7% P
Colonial Gas $351m 50 : 50 9.75% 7.9% P
Rhode Island
Public Utilities
Commission
Narragansett Electric $657m 49 : 51 9.5% 10.5% P
Narragansett Gas $577m 49 : 51 9.5% 9.8% P
Federal Energy
Regulatory
Commission
Narragansett $608m 50 : 50 10.57% 11.2% n/a n/a
Canadian
Interconnector $11m 72 : 28 13.0% 13.0% n/a n/a
New England Power $1,405m 64 : 36 10.57% 11.0% n/a n/a
Long Island Generation $420m 46 : 54 9.9% 12.5% 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).
Rate filing made
New rates effective
Rate plan ends
Rates continue indefinitely
Multi-year rate plan
Feature in place
P Feature partially in place
F Feature requested in pending filing
†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.
182 National Grid Annual Report and Accounts 2015/16 Additional Information
The business in detail continued