Utilities Commission Approves National Grid

WESTBOROUGH, Mass.--(BUSINESS WIRE)--National Grid (LSE: NG. NYSE: NGG) and KeySpan Corporation (NYSE: KSE) announced today that the New Hampshire Public Utilities Commission approved National Grid’s acquisition of KeySpan Corporation and merger of the two companies. The PUC order provides final approval for the merger in New Hampshire.

In April 2007, National Grid, KeySpan, the PUC staff and the Office of Consumer Advocate reached a comprehensive settlement agreement on the KeySpan acquisition that covers gas and electric rates, an electric distribution system reliability enhancement plan, incentives for the company to maximize merger-related savings and sharing those savings with natural gas customers, as well as other provisions.

The settlement was filed on May 15, 2007 and the PUC held public hearings on the agreement on May 30, 2007.

The proposed National Grid-KeySpan merger was announced on February 27, 2006, and since then has received numerous approvals and clearances. The remaining regulatory approval required by the New York State Public Service Commission is pending.

About National Grid

National Grid is an international energy delivery business with principal activities in the regulated electricity and natural gas industries. In the U.S., National Grid distributes electricity to approximately 3.4 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.

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