National Grid Transco (NYSE: NGG) is one of the largest utilities companies in the world. The company operates 4,300 miles of gas transmission pipelines, 93,800 miles of gas utilities infrastructure, and 71,000 circuit miles of electric utilities infrastructure. All of the company's operations are subject to rate regulations from the national governments of the United States and United Kingdom, as well as numerous U.S. state governments; this guarantees the company relatively steady income (averaged across its regulatory bodies, NGG's utilities companies earn a return on equity of 11%) but it also makes it difficult for National Grid to adjust when costs rise, as passing them on to consumers requires a lengthy lobbying process without the guarantee of success.
The Company owns electricity transmission networks in the United Kingdom and Wales, and operates the system across Great Britain. It also owns and operates high pressure gas transmission systems in the United Kingdom, and its distribution business delivers gas to 11 million homes and businesses. In the United States, National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island. The Company is the distributor of natural gas in the northeastern United States, serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island.
The company operates in 20 different regulatory regions, diluting the individual decisions of any one body in the company's larger revenue pool. National Grid is also looking to its aging infrastructure to spur earnings growth; as pipelines and cabling need to be replaced, the value of the company's assets will rise, bringing up the total value of the company's allowed returns with it. National Grid doesn't have any real competitors within its markets because the high cost of infrastructure for utilities companies means that the business creates natural, regional monopolies.
National Grid plc engages in the transmission and distribution of electricity and gas in the United Kingdom and the United States. The company owns and operates high-voltage electricity transmission systems in England and Wales, as well as high pressure gas transmission systems in Britain and electricity transmission systems in the northeastern United States. It offers its services to generators, distributors, suppliers, interconnector users, and directly-connected customers in the United Kingdom, as well as to other industrial, commercial, and domestic consumers.
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The Company owns and operates the electricity transmission network in the United Kingdom, the gas transmission network in Great Britain, and electricity transmission networks in the northeastern United States. It is also responsible for the operation of the electricity transmission networks in Scotland. The transmission business operates in both United Kingdom and United States.
National Grid owns the electricity transmission system in England and Wales. The electricity assets comprise approximately 7,200 kilometers of overhead line, about 690 kilometers of underground cable and 337 substations at 241 sites. It owns the gas national transmission system in the United Kingdom. It comprises approximately 7,600 kilometers of high pressure pipe and 26 compressor stations, connecting to eight distribution networks and to third party independent systems for onward transportation of gas to the consumers.
It operates the gas national transmission system. The Company owns and operates the United Kingdom assets and a portion of the subsea cables, which comprises the electricity interconnector between the United Kingdom and France as part of a joint arrangement with the French transmission operator. It owns and operates four liquefied natural gas (LNG) storage facilities in the United Kingdom.
The Company owns and operates an electricity transmission network of approximately 13,800 kilometers spanning upstate New York, Massachusetts, Rhode Island, New Hampshire and Vermont. The United States electricity transmission facilities operate at voltages ranging from 69 kV to 345 kV, utilizing nearly 13,700 kilometers of overhead line, nearly 140 kilometers of underground cable and 524 substations.
It owns and operates a 224 kilometer direct current transmission line rated at 450 kV that is a key section of an interconnector between New England and Canada. It works with two independent system operators in New England and New York.
The Company owns and operates gas distribution systems in the United Kingdom and the northeastern United States. The Gas Distribution UK segment comprises four of the eight regional gas distribution networks in Great Britain. The networks comprise approximately 132,000 kilometers of gas distribution pipelines. It also transports gas on behalf of approximately 25 active gas shippers from the gas national transmission system to around 10.8 million consumers.
The Gas Distribution US segment comprises gas distribution networks providing services to around 3.5 million consumers across the north-eastern United States, located in service territories in upstate New York, New York City, Long Island, Massachusetts, New Hampshire and Rhode Island. The network of approximately 58,000 kilometers of gas pipelines covers an area of approximately 26,400 square kilometers.
The Company, through electricity distribution networks serve approximately 3.4 million electricity customers over a network of approximately 116,700 circuit kilometers (72,500 miles) in New England and New York. The electricity distribution system spans upstate New York, Massachusetts, Rhode Island and New Hampshire, which, together with the system on Long Island owned by the Long Island Power Authority (LIPA), provides energy to homes, small businesses, and large commercial and industrial enterprises.
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High infrastructure costs make NGG a monopolist utility in the regions it services, though government regulation keeps the company from exploiting customers with high prices.
Other American gas utilities include
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