While the company’s business is primarily based on the use of fossil fuels, which drives climate change, Portfolio 21 is attracted to National Grid for a number of reasons. First, the company is focused on natural gas, which is the most efficient fossil fuel. Second, it has a successful track record of promoting energy efficiency and the purchase of electricity from renewable resources (achievements recognized by both the U.S. Environmental Protection Agency and the Department of Energy, among others). Third, and most important, the company aims to be a supplier of energy management services rather than simply being an energy supplier. National Grid’s CEO Steve Holliday has highlighted the need to reexamine the regulatory structure of utility incentives and has lobbied for a new framework that would promote efficiency, rather than the current system that rewards companies for selling more energy. National Grid is broadly supportive of international, regional, and national policies aimed at creating secure, low carbon, energy efficient, and affordable energy markets. The company is a participating stakeholder in the Regional Greenhouse Gas Initiative and is supportive of the EPA’s issuance of proposed rules governing greenhouse gas emission limits for new power plants. Although National Grid has a program in place to reduce its SF6 emissions (a very potent greenhouse gas), Portfolio 21 has asked the company to disclose its capital expenditures aimed at reducing its leakage rates, the main contributor of SF6.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 6/30/2014 and may not reflect current opinions or subsequent events.