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LONDON – National Grid plc, Rhode Island’s dominant gas and electric utility company, said today it expects to receive approval to increase electricity rates in the state early next year.
The utility’s executives said today its operations are on track so far this year and it expects to deliver “a strong performance” for 2009-10. The company predicted increased profitability this year from its electricity distribution and generation business and “continued good momentum” in its transmission business.
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“We are in a sound financial position,” National Grid said in a statement covering operations from April 1 to July 26. Moody’s Investors Service last week revised National Grid’s outlook upward from negative to stable and the company said it expects its interest rate to fall.
“Overall, we are well positioned to deliver a year of strong performance,” the company said.
Among other positive developments for the company, National Grid pointed to the R.I. Public Utilities Commission’s (PUC) approval of a rate case for gas service last year that will give the utility a maximum return on equity of 10.5 percent.
National Grid also said it filed a rate case for electricity service with the PUC on June 1. The utility’s request would raise the average residential customer’s monthly electric bill by 11.2 percent, or $8.95 per month. The impact on commercial and industrial customers’ bills would range from an increase of 10 percent to a decrease of 7 percent, according to the company.
National Grid said today it expects the rate case to be completed by “early next year.” The PUC is targeting the increase to take effect March 1, but it could be made retroactive to Jan. 1.
An electricity rate case for Massachusetts was filed May 15, and the utility said it expects Bay State regulators to complete it “around the end of the year.” The company also has asked New Hampshire regulators to raise its return on equity for gas service.
National Grid plc (NYSE: NGG, LSE: NG) distributes electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island and natural gas to about 3.4 million customers in those states. Additional information is available at NationalGridUS.com.
