Narragansett Elec. Co. v. Pub. Utils. Comm’n

National Grid filed an application with the Public Utilities Commission (PUC) in which it sought additional revenues for its electricity distribution operations in Rhode Island, requesting an increase in electric distribution rates sufficient to enable it to collect additional revenues of $75.3 million. The PUC subsequently issued a report and order that (1) reduced National Grid's increase in its revenue requirement to $15.9 million, (2) set the common equity component of National Grid's capital structure at 42.75 percent, and (3) reduced by half the company's request to establish a variable pay scheme for certain of its employees. The Supreme Court (1) affirmed the PUC's decision to disallow fifty percent of the incentive compensation proposed by National Grid; and (2) vacated the portion of the order that used the capital structure of National Grid plc, the twice removed parent of National Grid, to determine an appropriate capital structure for National Grid. View "Narragansett Elec. Co. v. Pub. Utils. Comm'n" on Justia Law