Boardwalk Pipeline Partners, LP (BWP), Enbridge Energy Partners, L.P. (EEP): Three High Dividend Paying Companies to Buy

Page 2 of 2

Rate case settlement

National Grid plc (ADR) (NYSE:NGG) filed a rate settlement case for its Niagara Mohawk business in December 2012 with the New York Public Service Commission, or NYPSC. Through the rate case process, the regulatory agency determines the price the utility company will charge its customers. In March 2013, NYPSC approved the rate case, which went into effect on April 1, 2013, for a period of three years. The new rate plan will increase the company’s electric revenue by $123 million and gas revenue by $9 million in the next three years. As National Grid plc (ADR) (NYSE:NGG) expects to spend around $2 billion annually in the U.S., the revenue increase will enable it continue with its infrastructure investment.

In January 2013, National Grid plc (ADR) (NYSE:NGG) filed a two year rate settlement case for KeySpan Energy Delivery New York, or KEDNY, with the NYPSC. In June 2013, NYPSC approved the rate case for KEDNY, National Grid plc (ADR) (NYSE:NGG)’s gas distribution business. This new rate plan will apply from Jan. 1, 2013 to Dec. 31, 2014. The new rate plan has increased capital allowances to about $320 million in 2013 and $294 million in 2014, compared to $155.4 million per year in the original rate plan. This increase will provide tax benefits to National Grid plc (ADR) (NYSE:NGG) on its spending in the U.S. for further growth. National Grid plc (ADR) (NYSE:NGG)’s revenue will increase to $22.96 billion in 2014, which is 4.3% year-over-year growth.

Conclusion

All three companies have potential for distribution growth in 2013 and 2014. The utilization of existing pipeline in the Bluegrass project and the expansion project in the Southeast market will provide meaningful distribution growth from Boardwalk Pipeline Partners, LP (NYSE:BWP) in 2014. The reduction in the Lakehead system project funding and the issuance of preferred units will boost the cash distribution for Enbridge Energy. The settlement of various rate cases will benefit National Grid in terms of revenue as well/ Therefore, all of these stocks are a buy.

The article 3 High Dividend Paying Companies to Buy originally appeared on Fool.com and is written by Shweta Dubey.

Shweta Dubey has no position in any stocks mentioned. The Motley Fool recommends National Grid plc (NYSE:NGG) (ADR). Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2