National Grid asks Massachusetts for price increase

National Grid has filed a request with the Massachusetts Department of Public Utilities to update its electricity distribution rates.

The company said it was the first time since 2009 it has filed such a request, which will impact all electricity companies operating in the state if it is approved.

National Grid is requesting an increase of around $143m (£95m) a year in electricity delivery revenue to cover higher operating costs and investments made in its electric delivery network.

National Grid said it has invested around $1.3bn in system improvements, which is $178m more than the aggregate annual cap of $170m currently included in rates.

In addition, it said operating expenses have increased since 2009, including items such as property taxes.

National Grid is asking that the current capex tracker with the annual cap of $170m be raised to $285m in order to continue to compensate the company for needed enhancements to the electric system.

It expects the filing to take up to 11 months to review and to conclude in September of next year, with new rates effective 1 October 2016.