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TIDMNG. TIDM35DT TIDM46QK TIDM71GP 
 
RNS Number : 8255M 
National Grid PLC 
05 February 2009 
 

5 February 2009 
 
 
National Grid plc Interim Management Statement 
for the period 1 October 2008 to 4 February 2009 
 
 
 
 
HIGHLIGHTS 
 
 
  *  Trading remains strong and in line with expectations. 
  *  Successful funding programme continues with c. GBP1.3 billion raised since 1 
  January 2009. 
  *  KeySpan synergy savings expected to be well in excess of $100 million run rate 
  target by 31 March 2009. 
  *  Good progress with US gas rate case filings. 
 
 
 
 
 
FINANCIAL UPDATE 
 
 
National Grid continues to trade in line with expectations and we expect 
to recommend a full-year dividend in line with our policy. 
 
 
We expect a strong performance in our Transmission and Gas Distribution 
businesses this financial year. Within the period we have benefited from a 
strong dollar exchange rate.  The integration of KeySpan is progressing ahead of 
plan and we have already achieved the $100 million synergy savings run rate.  By 
31 March, we expect this run rate to be well in excess of target.  A one in 
twenty year ice storm across our US service areas in December will impact the 
results in our Electricity Distribution and Generation business by an expected 
$90 million, although much of this cost is recoverable under US rate plans.  In 
the current challenging market conditions, we have taken action to defer 
property sales in order to preserve value. 
 
 
Our GBP3.2 billion investment programme for the current year remains on 
target.  Our funding programme for 2008/09 is now complete and we are making 
good progress pre-funding 2009/10.  We have issued c. GBP1.3 billion of long 
term debt since 1 January 2009, building on our successful debt issuance 
programme in 2008.  We remain confident that we will continue to be able to 
finance our current investment programme through the debt markets.  We actively 
manage our interest rate risk, with 56 per cent of our long term debt either 
floating-rate or index- linked and we expect our financing costs to benefit from 
falling interest rates and lower inflation.The strong appreciation of the dollar 
in the period since 30 September 2008 has increased the sterling value of both 
our US net assets by around GBP2.9 billion and dollar denominated net debt by 
around GBP2.6 billion as compared with the position reported at 30 September. 
 
 
Our UK regulated revenues are subject to an RPI + X indexation at the start of 
each financial year. For the purpose of setting revenue for 2009/10 the 
average RPI + X element of the rate increases are expected to be 5.2* per cent. 
 
BUSINESS UPDATE 
 
 
We continue to make good progress with our gas rate case filings in the US.  On 
24 November 2008 the Rhode Island Public Utilities Commission agreed the 
Narragansett Gas Distribution rate case. This provided for a 10.9 per cent 
increase in revenues and an allowed return on equity of 10.5 per cent.  The 
Niagara Mohawk and New Hampshire gas rate case filings are currently under 
review and are the subject of constructive dialogue with regulators.  These 
filings proposed increased revenues to provide for higher returns and to recover 
increased costs. We expect a conclusion to be reached shortly on both rate 
cases. 
 
 
In our Electricity Distribution business we met all our 2008 reliability targets 
in Niagara Mohawk, Narragansett and Massachusetts Electric and our US gas 
business met all regulatory targets for the calendar year. 
 
 
On 30 December 2008, commercial operations commenced at the Phase 2 expansion of 
our Isle of Grain LNG importation facility. The expanded facility is the largest 
LNG importation terminal in the UK, with the capacity to supply around 12 per 
cent of the UK's gas demand. 
 
 
On 17 December 2008, we announced that Robert Catell will retire as an Executive 
Director of the Company on 31 March 2009. He will continue as a Non-Executive 
Director and Deputy Chairman of National Grid, as well as Non-Executive Chairman 
of National Grid USA, until the conclusion of the Company's Annual General 
Meeting on 27 July 2009. 
 
 
* weighted average RPI + X revenue increase for UK Gas Distribution, Gas 
Transmission and Electricity Transmission based on their regulatory asset value 
at 31 March 2008. 
 
 
CONTACTS 
 
 
Investors 
David Rees        +44 (0)20 7004 3170    +44 (0)7901 511322 (m) 
George Laskaris    +1 718 403 2526           +1 917 375 0989 (m) 
Richard Smith    +44 (0)20 7004 3172    +44 (0)7747 006321 (m) 
Victoria Davies +44 (0)20 7004 3171    +44 (0)7771 973 447 (m) 
 
 
Media 
Clive Hawkins    +44 (0)20 7004 3147    +44 (0)7836 357173 (m) 
Chris Mostyn     +1 718 403 2747           +1 347 702 3740 (m) 
Gemma Stokes     +44 (0)1926 656555     +44 (0) 7974 198333 (m) 
 
 
Brunswick 
Paul Scott +44 (0)20 7396 5333    +44 (0)7974 982333 (m) 
 
 
 
 
CAUTIONARY STATEMENT 
 
 
This announcement contains certain statements that are neither reported 
financial results nor other historical information. These statements are 
forward-looking statements within the meaning of Section 27A of the Securities 
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, 
as amended. These statements include information with respect to our financial 
condition, our results of operations and businesses, strategy, plans and 
objectives. Words such as "anticipates", "expects", "intends", "plans", 
"believes", "seeks", "estimates", "may", "will", "continue", "project" and 
similar expressions, as well as statements in the future tense, identify 
forward-looking statements. These forward-looking statements are not guarantees 
of our future performance and are subject to assumptions, risks and 
uncertainties that could cause actual future results to differ materially from 
those expressed in or implied by such forward-looking statements. Many of these 
assumptions, risks and uncertainties relate to factors that are beyond our 
ability to control or estimate precisely, such as delays in obtaining, or 
adverse conditions contained in, regulatory approvals and contractual consents, 
including unseasonable weather affecting the demand for electricity and gas, 
competition and industry restructuring, changes in economic conditions, currency 
fluctuations, changes in interest and tax rates, changes in energy market 
prices, changes in historical weather patterns, changes in laws, regulations or 
regulatory policies, developments in legal or public policy doctrines, the 
impact of changes to accounting standards and technological developments. Other 
factors that could cause actual results to differ materially from those 
described in this announcement include the ability to integrate the businesses 
relating to announced acquisitions with our existing business to realise the 
expected synergies from such integration, the availability of new acquisition 
opportunities and the timing and success of future acquisition opportunities, 
the timing and success or other impact of the sales of our non-core businesses, 
the failure for any reason to achieve reductions in costs or to achieve 
operational efficiencies, the failure to retain key management, the behaviour of 
UK electricity market participants on system balancing, the timing of amendments 
in prices to shippers in the UK gas market, the performance of our pension 
schemes and the regulatory treatment of pension costs, and any adverse 
consequences arising from outages on or otherwise affecting energy networks, 
including gas pipelines, which we own or operate. For a more detailed 
description of some of these assumptions, risks and uncertainties, together with 
any other risk factors, please see our filings with and submissions to the US 
Securities and Exchange Commission (the "SEC") (and in particular the "Risk 
Factors" and "Operating and Financial Review" sections in our most recent Annual 
Report on Form 20-F). Except as may be required by law or regulation, National 
Grid undertakes no obligation to update any of its forward-looking statements. 
The effects of these factors are difficult to predict. New factors emerge from 
time to time and we cannot assess the potential impact of any such factor on our 
activities or the extent to which any factor, or combination of factors, may 
cause results to differ materially from those contained in any forward-looking 
statement. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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