CITIZEN POWER ALLIANCE

ALBANY -- National Grid has removed $4.27 million in expenses it planned to charge to customers in its electric rate hike plan for upstate New York after regulators questioned whether the sometimes lavish spending was appropriate.

The move is expected to help clear up some contentious issues between the British utility and the state Department of Public Service as hearings on the $370 million rate hike begin today in Albany.

Most of the charges being eliminated -- $3.4 million -- are expenses charged by expatriate National Grid executives who were transferred from the United Kingdom to the United States to oversee the company's New York and New England operations.

Dubious expenses covered the shipment of one executive's wine collection to the U.S. and tuition for exclusive private schools such as The British School of Boston. National Grid has also decided to also remove the cost of salary and benefits for those employees from the rate plan.

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