National Grid : NIMO Factsheet 2024

Niagara Mohawk

Electric and Gas

2024 Rate Review

Investor Relations | May 2024

"National Grid's vision is to be at the heart of a clean, fair, and affordable energy future, while ensuring the safety and reliability of our energy networks. These rate filings demonstrate National Grid's commitment to continuing its support of New York's energy goals and meeting the challenges of climate change, while also ensuring overall reliability, resiliency, and affordability for customers."

Rudy Wynter

National Grid President, New York jurisdiction

National Grid and Niagara Mohawk (NiMo)

• Upstate New York electric and gas distribution utilities
• 1.7 million electricity customers; 0.6 million gas customers
• 4,000 employees
• 85,000km electricity lines; 14,000km gas pipeline
• Regulated by the New York Public Service Commission

Meeting our commitments . . . since the 2021 rate case

• Invested $4.4bn electric and $1.1bn gas to modernize our networks, including investments to improve reliability and unlock renewable generation
• Consistently met or exceeded our Electric Reliability and Gas Safety performance metrics; maintained strong operational performance through severe weather events
• Reduced system emissions through mains retirement and leak reductions

Financing assumptions		Assumed
	Cost of	Cost of
	Rate of	equity
	equity	debt	Return	capitalization
Electric	10.0%	4.26%	7.01%	48.0%
Gas	10.0%	4.26%	7.01%	48.0%

Key elements of 2024 rate review

Requested revenue	RY1	RY2	RY3	RY4
increase	(2025/26)
Electric Annual	$525m	$249m	$348m	$219m
Electric	$525m	$774m	$1.1bn	$1.3bn
Cumulative
Gas Annual	$148m	$53m	$44m	$50m
Gas Cumulative	$148m	$201m	$245m	$295m

• Requested RoE of 10.0%
• Requested debt:equity structure of 52%/48% for Rate Year 1; increasing to 49% equity in RY2; and 50% equity in RY 3 & 4
• 4-yearrate plan (May 2025 to end March 2029)
• $1.7bn capex electric and $338m capex gas for FY26
• Investments to modernize our networks and provide a strong foundation for New York's clean energy future
• Integrated energy planning to promote electrification
• Maintains tracker and true-up mechanisms for property taxes, commodity related bad debt, Pension/OPEBs, and environmental remediation
• Funds more than 800 new positions over four years
• Continuing bill assistance and Consumer Advocate programmes to maintain affordability for our most vulnerable customers
• Earnings Adjustments Mechanisms and incentives
• Anticipate new rates effective in May 2025

Customer impact (total bill)

• Electric: Typical residential electric customers will see

an average net bill increase of 15.3% or $18.92 per month

• Gas: Typical residential gas customers will see an average net bill increase of 20.2% or $18.34 per month

Electric Capex and Opex

Capex

• Capital investment of $1.7bn for FY26
• Transmission investments are designed to address the
  State's transmission needs for integrating renewables
• Investments in battery storage to improve reliability and reduce outages experienced by customers in the area
• Line and substation upgrades to strengthen transmission facilities to withstand more intense weather
• EV Highway projects will create over 100MW of capacity for fast-charging across approximately 300 miles of the I- 90 corridor

Opex

$413m increase reflects:

• Significant investment in energy efficiency and demand response programmes
• Focused programmes to enhance transmission inspections and vegetation management
• IT investments intended to facilitate certain clean infrastructure and O&M initiatives

Electric Year-1 revenue increase ($m)

1,000

900										Other revenue
									/ growth
							O&M
800
						413
700
600									(272)
500
			Depreciation		Taxes
400
		170	(52)					$525m
300		Rate Base

200 Return147

1. 119

NiMo rate base forecast ($bn)

18

16

14

12

1. Gas

1. Electric

0

FY25

FY26

FY27

FY28

FY29

Important notice

Gas Capex and Opex

Capex

• Capital Investment of $338m for FY26
• Reducing methane emissions from the gas distribution system through pipe replacements and identifying, prioritizing, and repairing large-system leaks
• Replacing at least 27 miles of leak prone pipe each year
• Advancing geothermal projects enabled by the Utility Thermal Energy Network and Jobs Act
• Integrating biomethane supplies into the gas network

Opex

$71m increase reflects:

• Significant investment in energy efficiency and demand response programmes
• Repairing gas leaks to reduce emissions, including a new programme to prioritize the repair of high-emitting leaks
• Implement pipeline safety programmes
• Low income and energy affordability programmes

Gas Year-1 revenue increase ($m)
180
							Other revenue
160
					O&M		/ growth
140
					(5)
120						71
				Taxes
100	Depreciation
		(13)							$148m
80	41

60Rate Base

40 Return25

1. 28

2023/24 Achieved RoE/Rate base
FERC		Mass			NiMo
11.1%	KEDLI
KEDNY	Mass Elec Gas
Gas
	9.7%	9.2%	9.0%	NiMo Electric
		8.1%	7.6% 6.0%
$0					$31.7bn

Further information
Nick Ashworth	Angela Broad	James Flanagan
Director of Investor Relations	Senior Investor Relations Officer	Investor Relations Manager (US)
M [phone]	M [phone]	M [phone]
[e-mail]	[e-mail]	[e-mail]
	Dan Evans
	Investor Relations Analyst
	M [phone]
National Grid plc	[e-mail]
1-3 Strand
London WC2N 5EH
United Kingdom	investors.nationalgrid.com