FERC Approves National Grid/Niagara Mohawk Merger

Business Wire, June 14, 2001

Business Editors

WESTBOROUGH, Mass.--(BUSINESS WIRE)--June 14, 2001

The Federal Energy Regulatory Commission (FERC) has approved National Grid's (LSE, NYSE:NGG) proposed merger with Niagara Mohawk Holdings, Inc. (NYSE:NMK).

"With the FERC approval in hand, we are a step closer to becoming a combined company," said Rick Sergel, National Grid USA president and chief executive officer. "We look forward to continuing to work toward completion of the merger so that we may deliver its benefits to customers." Sergel added that merger approvals are pending from the New York Public Service Commission and the U.S. Securities and Exchange Commission.

The $3 billion merger was announced on September 5, 2000.

National Grid and Niagara Mohawk already have received merger-related approval from the New Hampshire Public Utilities Commission, and the Department of Justice (Hart-Scott-Rodino). The merger also has received Exon-Florio clearance from the U.S. government.

When complete, the merger will create the ninth largest electric utility in the U.S., with an electric customer base of 3.3 million in addition to 540,000 natural gas customers. It will also create the most extensive electric transmission network and second largest distribution business by customers in the New England/New York region.

National Grid builds, owns, and operates electric and telecommunications networks around the world. Its four U.S. electricity distribution companies serve more than 1.7 million customers in Massachusetts, Rhode Island, and New Hampshire. National Grid. National Grid's U.S. transmission business is one of the joint petitioners for a New England Regional Transmission organization, and has petitioned the FERC to declare it an eligible candidate for managing member of the Alliance RTO.

Niagara Mohawk is an investor-owned energy services company that provides electricity to more than 1.5 million customers across 24,000 square miles of upstate New York, and natural gas to more than 540,000 customers over 4,500 square miles of eastern, central, and northern New York.