National Grid Plc - Rate filing submitted for Massachusetts Gas
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National Grid plc
Rate filing submitted for Massachusetts Gas
National Grid has filed a request with the Massachusetts Department of Public Utilities (DPU) to update gas distribution rates for its Massachusetts Gas business.
To ensure the safety and reliability of the gas network, the rate filing requests a $138 million increase in revenue to cover increased operating costs and core investments, and a Return on Equity of 10.5%. National Grid is also proposing a new Performance Based Rate Mechanism (PBRM) that will link annual revenue increases to inflation.
As part of the filing, the capital tracker that recovers investment associated with leak prone pipe replacement would continue.
The filing also includes a request for significant investments of up to $50 million in innovative proposals to decarbonise our natural gas networks, including hydrogen blending, shared geothermal loops, renewable natural gas, and demand-side response measures. These proposals would be recovered through existing regulatory mechanisms outside the requested revenue increase.
This rate filing is expected to conclude in September 2021, with new rates effective 1 October 2021.