National Grid : Friday, January 13, 2017 - National Grid's Rhode Island Electric Company Reaffirms Support for Access Northeast Project in PUC Filing

January 13, 2017

PROVIDENCE, R.I. - In a filing to the RI Public Utilities Commission today, National Grid's Rhode Island electric company restated its support for the Access Northeast natural gas pipeline as a means to help stabilize electricity costs for customers and enhance the reliability of the region's natural gas supply network.

The company asked the PUC to allow it to withdraw an existing request to purchase natural gas capacity on the proposed pipeline, a move that supports exploration of other options to get the project completed. By filing 'without prejudice,' the company reserves the right to resubmit a revised filing at a later date.

According to Tim Horan, president of National Grid in Rhode Island, the company continues to work with the project developers to find alternatives to get this critical project built and in service.

'Our electric customers have literally been paying the price for major constraints on the network of pipelines that supply natural gas to the region's power plants.' He added, 'These constraints have led to significant volatility in the cost of electricity and to our customers paying among the highest prices in the country.'

In its filing, National Grid states, 'As of this writing, the Company is actively engaged in coordination with other New England electric and gas distribution companies, including those operating in Massachusetts, regarding the next steps for the contracting effort with the ANE Project, and the potential for the ANE Project to serve as a regional solution to ongoing capacity constraints. The coordination is productive and is continuing to progress to a workable solution that could be presented to the PUC for approval consistent with Rhode Island law.'

The region's position at the tail-end of the nation's pipeline system has been consistently identified by energy experts as the primary inhibiting factor in the growth of the New England economy when compared with the rest of the country.

'The New England power system continues to be in a precarious position during extended periods of extreme cold,' ISO chief executive Gordon van Welie said in his 2016 state of the grid remarks. 'The region will continue to be in this position until the natural gas infrastructure is expanded to meet the demand for gas.' Van Welie reinforced the urgency of the situation in a recent opinion piece published in CommonWealth Magazine.

National Grid would need to withdraw its current filing before proposing to the RIPUC a new means for the Access Northeast Project to move forward. Horan stated that withdrawing the filing now will help expedite a new filing when the time comes.

'We continue to believe that the Access Northeast project offers a solution to address the region's natural gas constraints that will improve reliability and savings for customers primarily by upgrading existing infrastructure.' He concluded, 'This project is critical to creating a balanced portfolio of energy solutions to get us to a clean energy future while ensuring customers continue to have access to affordable, safe, and reliable energy.'

About National Grid

National Grid (LSE: NG; NYSE: NGG) is an electricity and natural gas delivery company that connects nearly 7 million customers to vital energy sources through its networks in New York, Massachusetts and Rhode Island. It is the largest distributor of natural gas in the Northeast. National Grid also operates the systems that deliver gas and electricity across Great Britain.

Through its U.S. Connect21 strategy, National Grid is transforming its electricity and natural gas networks to support the 21st century digital economy with smarter, cleaner, and more resilient energy solutions. Connect21 is vital to our communities' long-term economic and environmental health and aligns with regulatory initiatives in New York (REV: Reforming the Energy Vision) and Massachusetts (Grid Modernization).

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