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National Grid provides update on US Tax Reform
National Grid provides update on US Tax Reform.
About this update from National Grid Plc
[{"type":"text","content":"\n \nRNS Number : 7116D National Grid PLC 02 February 2018 \n\n \n2 February 2018 \n \n \nNational Grid plc provides update on impact of US Tax Reform \n \n \nNational Grid provides an update on the expected impact of the US Tax Cuts and Jobs Act on the Group. \n \nOverall, the US tax reform changes are significantly positive for our US customers and economically neutral for National Grid.\n \nNational Grid anticipates that there will be a non-cash tax credit of around $2 billion due to the revaluation of certain deferred tax balances. This credit will be reflected as an exceptional item and is expected to be returned to customers over a period of 20 to 30 years. There will be no other material impact on the results for the financial year ending 31 March 2018.\n \nThe full implications of the new legislation on earnings and cash flows are still being reviewed, and will depend on the outcome of discussions with regulators for each of our 14 regulated entities in the US. To date, this has been reflected in our Joint Proposal for Niagara Mohawk Electric and Gas, and our ongoing Massachusetts Gas and Rhode Island rate filings, which together represented 48% of the US rate base at 31 March 2017. The total annualised revenue increase for these companies is estimated to reduce by $130 million and will come into effect as these changes are adopted in new rates in FY19. The reduction in revenue will be offset by a corresponding reduction in the tax charge.\n \nNational Grid does not expect a material impact on the year ending 31 March 2019, but we expect to provide more detailed guidance at the full year results.\n \n \nCONTACTS\n \n\n\n\n\nInvestor Relations\n\n\n\n\n\n\n\n\n\n\n\n\n\nAarti Singhal\n\n\n+44 (0)20 7004 3170\n\n\n+44 (0) 7989 492447\n\n\n\n\n\n\n\nWill Jackson\n\n\n+44 (0)20 7004 3166\n\n\n+44 (0) 7584 206578\n\n\n\n\nMedia\n\n\n\n\n\n\n\n\n\n\n\n\n\nSean Kemp\n\n\n+44...