By Jaime Llinares Taboada
National Grid PLC said Tuesday that it has filed a three-year rate proposal for its upstate New York electric and natural gas distribution business.
The U.K. energy infrastructure company said the proposed settlement for the Niagara Mohawk Power Corporation is for a three-year plan, with rates backdated to July 2021. The company serves 1.6 million electricity customers and around 600,000 gas clients.
The proposal requests a cumulative revenue increase of $255 million over the three years for the electric networks, and a $75 million hike for the gas business. Capital expenditure over the period would be $3.3 billion, and the requested cost of equity is 9.0% for both the electric and the gas business.
"The settlement will fund the investments and programs necessary to modernize our energy networks, while advancing metering technology, electric vehicles, energy storage, and transmission investments to unlock cleaner energy for customers," Rudy Wynter, National Grid's president for the New York jurisdiction, said.
The proposed changes will increase power bills by 2.2% and gas bills by 2.0% for the typical residential customer in the first year of the plan, National Grid estimates.
A final decision from the NY Public Service Commission is expected in the next few months, NG said.
Write to Jaime Llinares Taboada at firstname.lastname@example.org; @JaimeLlinaresT
(END) Dow Jones Newswires