National Grid agrees Massachusetts revenue increase
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16:40 19/04/24
National Grid said a revenue increase agreed with Massachusetts public authorities supports its strategy of continuing ongoing investment across the US business.
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The Massachusetts Department of Public Utilities issued its rate case order for National Grid's local gas business, updating terms last agreed in 2010.
Effective since the start of October, the new rates allow a return on equity of 9.5% on an equity ratio of 53%, allowing for annual capital investment of $413m.
A revenue increase of $56m has been allowed, which was lower than the $87m that National Grid requested and after a $44m adjustment to reflect the lower US tax rate the net revenue increase will be $12m.
"The completion of this filing continues our programme of updating rates, and supports the significant ongoing investment across our US business," the FTSE 100 group said.