National Grid plc (LON:NG) has filed a joint proposal with the New York Public Service Commission for its Upstate New York electric and natural gas distribution business Niagara Mohawk Power Corporation (NIMO).
The proposed settlement is for a three-year rate plan that runs from May 2025 through to March 2028. A final decision from the New York Public Service Commission is expected in the next few months. The plan includes a Return on Equity of 9.5% and funding for capital investment of $1.43 billion in electricity and $351 million in gas for NIMO in the first rate year.
The proposed settlement will fund programmes necessary to maintain and improve reliability, integrate renewables and replace gas pipelines, promoting economic growth and advancing New York’s renewable energy and emissions reduction goals. It will maintain a focus on customer affordability through delivering efficiencies and bill assistance programmes over the duration of the proposed rate plan.
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National Grid’s Upstate New York electric and natural gas business, Niagara Mohawk Power Corporation (NIMO), serves 1.7 million electric and 600,000 gas customers and represents around 15% of the Group’s regulated asset base.
The joint proposal fully funds the CLCPA Phase 1 programme over the rate plan and it remains on track for c.$800 million of total investment. Approved CLCPA Phase 2 funding of $2.1 billion for upstate electricity transmission projects will be recovered through a separate agreement.
