National Grid to Complete Keyspan Merger Today

National Grid to Complete Keyspan Merger Today

National Grid (LSE: NG. NYSE: NGG) is pleased to announce that it will complete the acquisition of KeySpan today.

On August 22, the New York State Public Service Commission unanimously voted to approve the transaction; this was the final regulatory approval required.

Steve Holliday, National Grid chief executive, said, “We’ve been working towards this goal for a well over a year and I am absolutely delighted that we have achieved the final milestone. He added, “We are totally committed to making sure our customers and shareholders receive the benefits coming from this merger. The substantial opportunities for cost savings are clear, and with our investment capability we can really unlock KeySpan’s growth potential.” Holliday concluded, “Everyone is keen to start working towards these goals, and now, the real work starts.”

KeySpan CEO and Chairman Bob Catell, who now becomes chairman of National Grid USA, commented, “I’m proud of our record on community commitment. We will soon become a larger company, but I’m determined to make sure that we use our size and scale to continue to enhance customer service and continue to play an active role in the local areas that we serve. These are exciting times for our company and our customers.”

Once the acquisition is complete, National Grid will become the second largest utility in the US – delivering electricity to approximately 3.3 million customers and natural gas to approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. The company will also provide power to more than one million customers on Long Island and supply around a quarter of New York City’s electricity needs.

The companies announced an agreement for National Grid to acquire KeySpan on February 27, 2006.

About National Grid

National Grid is an international electricity and gas delivery business with principal activities in the regulated electricity and natural gas industries. In the U.S., National Grid distributes electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island and natural gas to approximately 569,000 customers in New York and 245,000 customers in Rhode Island.

The company owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high-pressure gas transmission system in Britain and, through its natural gas distribution business, serves over 11 million customers in homes and businesses in Britain. In addition, it has a number of businesses operating in related areas such as LNG importation, land remediation, metering and interconnectors. For more information, visit National Grid’s web site at www.nationalgrid.com.

About KeySpan

A member of the Standard & Poor’s 500 Index, KeySpan Corporation (NYSE:KSE) is the largest distributor of natural gas in the Northeast United States, operating regulated gas utilities in New York, Massachusetts and New Hampshire, serving 2.6 million customers. These customer-focused businesses are complemented by a portfolio of service companies which offer energy-related products, services and solutions to homes and businesses. KeySpan is also the largest electric generator in New York State. The Company owns approximately 6,650 megawatts of generating capacity, providing power to 1.1 million customers of the Long Island Power Authority on Long Island and supplying approximately 25 percent of New York City’s capacity needs. In addition to these assets, KeySpan has strategic investments in pipeline transportation, distribution and storage. KeySpan has headquarters in Brooklyn, New England and Long Island. For more information, visit KeySpan’s web site at www.keyspanenergy.com

Contacts

Media
National Grid:
Alberto Bianchetti, 315-428-6932
or
KeySpan:
Media Relations, 516-545-5052 / 718-403-2503
or
Investors
Institutional Investors:
David Rees, 011 44 20 7004 3170
or
Richard Smith, 011 44 20 7004 3172
or
James Waite, 011 44 20 7004 3171
or
Individual shareholders:
Bank of New York, 1-888-525-8786
(Toll free)