NY PSC SAYS NATIONAL GRID RATES TO BE FROZEN FOR 2013-14

(The following is a reformatted version of a press release
issued by The New York State Public Service Commission and
received via e-mail. The release was confirmed by the sender.) 
June 13, 2013 
Rates Frozen For National Grid NY Customers 
Customers Will Also Share in Company Profits 
The New York State Public Service Commission (Commission) today
adopted the terms of a joint proposal signed by National Grid
NY, Department of Public Service staff, and Queens Gas Consumers
that freezes base delivery rates for 2013 and 2014, increases
funding for low-income ratepayers, strengthens customer service
performance measures and modifies, among other things, the
company’s earnings sharing, revenue requirements and capital
expenditures. 
“The joint proposal terms we are adopting today will foster
continued rate stability and promote the affordability of rates,
while providing the company with the resources and motivation it
needs to maintain and enhance the safety and adequacy of its gas
service,” said Commission Chairman Garry Brown. “National Grid
NY customers will significantly benefit from today’s decision.” 
The company’s current rates were set as part of a five-year rate
plan that was adopted in 2007.  As part of that plan, National
Grid NY, also known as KEDNY, had an allowed return on equity
(ROE) of 9.8 percent, with sharing of earnings above 10.5
percent.  However, upon review, it was determined that the
utility had exceeded its allowed return in 2008-2011 with ROEs
ranging from 10.48 percent to 14.10 percent. It had also
exceeded its earnings-sharing target in 2008, 2010, and 2011;
and, after sharing with ratepayers, retained actual earnings of
11.85 percent in 2010 and 2011. 
The proceeding was initiated out of a growing concern about the
company’s high earnings, which is now addressed by a joint
proposal that provides significant public interest benefits.
National Grid NY serves more than 980,000 natural gas customers
in Brooklyn, part of Queens, and Staten Island. 
In addition to freezing base delivery rates, other key features
of the joint proposal include: lowering the allowed ROE to 9.4
percent, down from 9.8 percent; requiring excess earnings above
9.4 percent be shared 80 percent ratepayer/20 percent
shareholder, with the ratepayers’ share applied to Site
Investigation and Remediation (SIR) deferral balances; enhancing
National Grid NY’s gas safety and customer service metrics; and
increasing funding for the low-income program from $7.4 million
to $10.4 million. 
The Commission’s decision today, when issued, may be obtained by
going to the Commission Documents section of the Commission’s
Web site at www.dps.ny.gov and entering Case Number 12-G-0544 in
the input box labeled “Search for Case/Matter Number.” Many
libraries offer free Internet access. Commission orders may also
be obtained from the Commission’s Files Office, 14th floor,
Three Empire State Plaza, Albany, NY 12223 (518-474-2500).  If
you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding
this press release. 
Further Details: James Denn
James.denn@dps.ny.gov | 518.474.7080
http://www.dps.ny.gov
http://twitter.com/NYSDPS 
(sgp) NY 
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