National Grid Transco Plc's Niagara Mohawk Power Corp. unit may reduce profits reported from 1999 to 2001 should it conclude it owes as much as $10 million a year in interest to overcharged customers.
New York state regulators said the utility, purchased by National Grid in February, overcharged customers by $80 million for pension costs in 1996 through 1998. Niagara Mohawk may owe customers $30 million in interest, the company said in a filing with the U.S. Securities and Exchange Commission.
Restatement of results would widen the utility's losses from 1999 and 2000 and reduce net income of $29.5 million in 2001, the filing said. Niagara Mohawk reported losses of $22.3 million in 2000 and $2.1 million in 1999, according to separate filings.