National Grid 2016 Annual Report Download - page 208

SEC
The US Securities and Exchange Commission, the financial
regulator for companies with registered securities in the US,
including National Grid and certain of its subsidiaries.
SEH Committee
The Safety, Environment and Health Committee of the Board whose
role is explained on page 60.
SF6
Sulphur hexafluoride, an inorganic, colourless, odourless and
non-flammable greenhouse gas. SF6 is used in the electrical industry
as a gaseous dielectric medium for high voltage circuit breakers,
switchgear and other electrical equipment. The Kyoto protocol
estimated that the global warming potential over 100 years of SF6
is 23,900 times more potent than that of CO2.
share premium
The difference between the amount shares are issued for and the
nominal value of those shares.
standard cubic metre
A quantity of gas which at 15°C and atmospheric pressure (1.013 bar)
occupies the volume of 1m3.
stranded cost recoveries
The recovery of historical generation-related costs in the US, related
to generation assets that are no longer owned by us.
STEM
Science, technology, engineering and mathematics; the Company
is currently looking to recruit people with skills in these subjects.
subsidiary
A company or other entity that is controlled by National Grid.
swaption
A swaption gives the buyer, in exchange for an option premium,
the right, but not the obligation, to enter into an interest rate swap
at some specified date in the future. The terms of the swap are
specified on the trade date of the swaption.
T
taxes borne
Those taxes that represent a cost to the Company and which are
reflected in our results.
taxes collected
Those taxes that are generated by our operations but which do not
affect our results; we generate the commercial activity giving rise to
these taxes and then collect and administer them on behalf of HMRC.
Tax Convention
Tax Convention means the income tax convention between the
US and the UK.
tonne
A unit of mass equal to 1,000 kilogrammes, equivalent to
approximately 2,205 pounds.
tonnes carbon dioxide equivalent (CO2e)
A measure of greenhouse gas emissions in terms of the equivalent
amount of carbon dioxide.
treasury shares
Shares that have been repurchased but not cancelled. These shares
can then be allotted to meet obligations under the Company’s
employee share schemes.
TWh
Terawatt hours, being an amount of energy equivalent to delivering
1 billion watts of power for a period of 1,000 hours.
U
UK
The United Kingdom, comprising England, Wales, Scotland and
Northern Ireland.
UK Corporate Governance Code (the Code)
Updated guidance, issued by the Financial Reporting Council in
September 2014, on how companies should be governed, applicable
to UK listed companies, including National Grid.
UK GAAP
Generally accepted accounting principles in the UK. These differ
from IFRS and from US GAAP.
UK regulated return on equity (UK RoE)
UK regulated return on equity is a measure of how a business is
performing operationally against the assumptions used by Ofgem.
These returns are calculated using the assumption that the businesses
are financed in line with the regulatory adjudicated capital structure,
at the assumed cost of debt and that UK taxation paid is at the level
assumed by Ofgem.
US
The United States of America, its territories and possessions,
any state of the United States and the District of Columbia.
US GAAP
Generally accepted accounting principles in the US. These differ
from IFRS and from UK GAAP.
US regulated return on equity (US RoE)
US regulated return on equity is a measure of how a business is
performing operationally against the assumptions used by the
relevant regulator. This US operational return measure is calculated
using the assumption that the businesses are financed in line with the
regulatory adjudicated capital structure. This is a post-tax US GAAP
metric as calculated annually (on a calendar year to 31 December).
US state regulators (state utility commissions)
In the US, public utilities’ retail transactions are regulated by
state utility commissions, including the New York Public Service
Commission (NYPSC), the Massachusetts Department of Public
Utilities (MADPU) and the Rhode Island Public Utilities Commission
(RIPUC).
V
value added
Value added is a measure to capture the value created through
investment attributable to equity holders, being the change in total
regulated and non-regulated assets including goodwill (both at
constant currency) plus the cash dividend paid in the year plus share
repurchase costs less the growth in net debt (at constant currency).
This is then presented on an absolute and a per share basis.
value growth
Value growth is the growth in the value of our regulated and
non-regulated assets including goodwill plus dividend plus share
repurchase costs less net debt, as a percentage.
206 National Grid Annual Report and Accounts 2015/16 Additional Information