Following the rate filing in November 2017, National Grid confirms that the Massachusetts Department of Public Utilities has issued its rate case order for our Massachusetts Gas business. This was the first full rate filing for this utility since 2010.
New rates are effective 1 October 2018, with an allowed Return on Equity of 9.5% on an equity ratio of 53%. The outcome allows for annual capital investment of $413 million. Compared to our revenue request of $87 million the DPU allowed an increase of $56 million. As expected, this outcome has been adjusted by $44 million primarily to reflect the lower US tax rate, resulting in a net revenue increase of $12 million.
The completion of this filing continues our programme of updating rates, and supports the significant ongoing investment across our US business.
https://www.investegate.co.uk/national- ... 00116155C/