National Grid commits $550m to US operations, seeks approval to up rates

National Grid committed $550m of investment to its Massachusetts business as filed a request with the state's Department of Public Utilities to increase distribution rates for its gas utilities in the region.

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The FTSE 100-listed group, which services more than 900,000 customers in Massachusetts, was applying for its first full rate review since 2010 as part of an effort to replace ageing infrastructure, modernise gas networks to enhance reliability and resilience, and accommodate future customer growth.

Close to $257m of the investment should be recovered by existing capital investment trackers under the state's Gas System Enhancement Plan, with the rest being recouped over time from the proposed annual revenue increase of approximately £87m a year.

National Grid said it expected the new rates will take effect in October 2018.

As of 0920 GMT, shares had dropped just 0.47% to 885.80p.