Ok is there a mutter from the gutter going about today or what?
Shares are now consolidated, payout deadline gone, no official
news......??????

(scratches head......)

Any clues among us beautiful BB'ers this afternoon?

Looks like we were correct on the bounce. Currently 695p. Watching closely now for an exit point.

RNS Number : 7583V

National Grid PLC

17 January 2013

17 January 2013

National Grid plc

New York Public Service Commission publishes term sheet for National Grid's downstate gas utility KEDNY

The New York State Public Service Commission ("Commission") yesterday published a term sheet detailing a two year extension to the rate agreement for National Grid's downstate New York Gas business, KeySpan Energy Delivery New York (KEDNY).

In November 2012, KEDNY and the staff of the Commission entered into confidential discussions around the potential for extending and updating aspects of the five year rate agreement which ended on 31 December 2012. The notice of impending settlement negotiations was filed with the Commission in early December 2012.

As a result of these discussions, National Grid and the Department of Public Service Staff, filed a term sheet with the Commission. This sets out a summary of a proposed two year agreement for extending and modifying elements of the original KEDNY five year rate plan. The proposed settlement is not expected to materially impact customer bills or KEDNY's revenues over the period of the rate agreement.

The proposal includes a 9.4% return on equity in each of the two years 2013 and 2014, with a 48% equity structure in the business, which is financially equivalent to the terms of the original five year rate plan (9.8% return on equity and 45% equity structure). Under the proposed agreement, 80% of any earnings over 9.4% will be allocated to fund recovery of prior environmental deferrals with the remaining 20% being retained by KEDNY. The proposed agreement also includes an increase in capital expenditure allowances to $320.1 million in 2013 and $293.7 million in 2014 as compared to the original rate plan capital allowances of $155.4 million per year. The agreement also proposes updates to various customer service and other performance metrics. Under the proposed agreement, there is no impact on the delivery rates for customers.

Ken Daly, President, National Grid New York said "We are pleased to have reached a proposed agreement with the Department of Public Service Staff. The new proposal sets out a framework of increased investment, stable customer rates, and performance metrics to deliver high standards of customer service, safety and reliability. The proposal also provides a sharing mechanism that should allow the business to deliver appropriate returns, while continuing to provide excellent service to New York customers."

A Joint Proposal formalising the settlement is expected to be filed in February. The Commission is expected to issue an Order on the settlement proposal in the spring of 2013.

The Term Sheet setting forth the proposed settlement agreement is available on the Commission's website (www.dps.ny.gov).

CONTACTS

Off the 200ma again (for now).

693p, still no cause to panic ............yet!

Back above £7 this am.

AGM & IMS next Tuesday 29th.

Broker upgrade apparently, but info not yet available.

EDIT: StockMarketWire.com
Exane BNP Paribas has upgraded its recommendation on National Grid (LON:NG.) to "outperform" from "underperform" as the company looks likely to accept the final price proposals announced by OFGEM before Christmas. The City broker has increased its share price target by 15 per cent to 780 pence with the shares currently changing hands at around the 695 pence mark. Broker Forecasts consensus data shows that the City analysts have mixed opinions over the stock as 48 per cent are maintaining a buy rating while 35 per cent are staying at sell. Analysts at Exane BNP Paribas said: "National Grid's stability, yield and possible upside from restructuring offer a more attractive combination than most of the large cap pan-European sector, where we see growing pressures on German power prices and hence on profitability and dividends. With the regulatory risk now behind us, we upgrade National Grid to Outperform (from Underperform) and raise our price target to 780 pence by rolling forward our RAB-based valuation to March 2014."

StockMarketWire.com
Liberum Capital has downgraded its recommendation on National Grid (LON:NG.) to "hold" from "buy" on valuation grounds liven the limited share price upside. The City broker has left its share price target unchanged at 730 pence. Exane BNP Paribas upgraded its recommendation on National Grid to "outperform" from "underperform" on 22 January 2013 viewing the stock far more favourably given the removal of regulatory uncertainty. In terms of the wider view held by the City, Broker Forecasts consensus data highlights that 43 per cent of brokers have a buy recommendation on National Grid with 35 per cent maintaining a sell rating. Analyst Guillaume Redgwell said: Following the RIIO Final Proposals in December, we are downgrading our National Grid recommendation to hold but maintaining our 730 pence price target. With the company response likely in February, we do not expect a Competition Commission referral. Whilst credit metrics will tighten in the middle of the decade, we believe that this is manageable. With little EPS [Earnings Per Share] growth over the RIIO regulatory period, and an implied annual total shareholder return of 9%, we view the valuation as undemanding yet unexciting."

Interim Management Service

HIGHLIGHTS

· Continued solid performance reflecting good financial delivery and sustained investment in attractive long-term growth assets
· Final RIIO-T1 and RIIO-GD1 proposals published by Ofgem in December 2012
· US regulatory filings proceeding well

o Rhode Island: Narragansett gas and electric rate cases approved
o New York: Niagara Mohawk joint proposals now submitted for final approval
o New York: KEDNY1joint settlement proposal agreed with Commission staff


OUTLOOK

Publication of Ofgem's final proposals for our UK transmission and distribution activities in December 2012 provided additional clarity, in particular around the essential investments we are likely to be making over the next eight years in UK infrastructure. We are in the latter stages of our work to determine the acceptability or otherwise of the RIIO proposals and evaluate the long term outlook of the Group as a whole, ahead of announcing a new dividend policy for the period from April 2013. As previously stated, we expect to announce this new policy by the time of our full year results in May 2013.

Overall, we reconfirm our positive outlook for 2012/13 - we are well positioned to deliver another year of good operating and financial performance.

Morgan Stanley Overweight 691.25 682.00 775.00 775.00 Reiterates

12 month high just matched @722p

National Grid agrees RIIO price controls

National Grid has agreed all of the UK RIIO price control arrangements proposed by Ofgem. The Board of National Grid believes that the combination of revenue allowances and incentive mechanisms provides a good opportunity to earn appropriate returns for investors while delivering essential infrastructure investment for the benefit of consumers and the UK economy.

The RIIO-T1 and RIIO-GD1 price controls cover all of National Grid's transmission and distribution owner and system operator businesses in the UK, with a current regulated asset value in excess of £22bn. Ofgem's latest forecast predicts this asset value will grow by around 80% over the eight years of the price control, which will run from 1 April 2013.

As previously stated, the Company is in the latter stages of work to evaluate the long term outlook of the Group as a whole, ahead of announcing a new dividend policy for the period starting from 1 April 2013. We expect to announce this new policy by, at the latest, the time of our full year results in May 2013.

Steve Holliday, Chief Executive, said:

"I am pleased to confirm agreement of the RIIO price controls for our UK businesses. This is the culmination of a new process that started over three years ago, and represents another opportunity for National Grid to deliver further shareholder value.

These arrangements give our UK businesses their longest ever period of regulatory clarity. This enables us to focus on driving efficiency across our operations while building the infrastructure that the country needs and at the same time realise the benefits of excellent performance for both customers and investors."

License to print money alert then? Well done all -):

New high this morning.

New high this morning @738.50p