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National Grid Says Made Two Filings To Regulators In Massachusetts And New York

National Grid plc (NG.L,NGG) said it has made two filings to regulators in Massachusetts and New York.

The company noted that it has filed a request with the Massachusetts Department of Public Utilities or DPU to update electricity distribution rates for its Massachusetts Electric business.

The rate filing requests an approximate $70 million per annum increase in revenue to cover increased operating costs and investments and a Return on Equity of 10.5%. It supports annual capital expenditure of $300 million starting in the first year of the plan and, if approved, will commence in October 2019.

As part of the filing, National Grid proposes a new Performance Based Rate Mechanism (PBRM) that will link annual revenue increase to inflation, but also take into account improvements in the efficiency of the business.

The filing includes a request for significant investment in electric vehicle charging infrastructure in Massachusetts. This would be a five year, $167 million investment to provide over 17,000 new charging points across the state. In addition, it includes a proposal for a $50 million utility scale 14MW / 56MWh energy storage investment. Both of these proposals would be recovered through existing regulatory mechanisms outside the requested $70 million revenue increase.

This rate filing is expected to conclude in September 2019, with new rates effective 1 October 2019.

In addition, National Grid said it filed a capital investment request for $650 million with the New York Public Service Commission (PSC). This is to install 1.7 million electric Advanced Metering Infrastructure (AMI) meters, and 640,000 gas modules, across our Niagara Mohawk business between 2021 and 2024.

AMI is a smart meter technology that offers customers greater control over their energy use, and is part of New York State's clean energy goal of reducing greenhouse gas emissions by 80% on 1990 levels by 2050.

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