April 23,2009

National Grid today submitted its formal application to the Massachusetts Department of Public Utilities for approval on its plan to develop and own five megawatts (enough to power approximately 1,000 homes for one year) of solar generation facilities in the Commonwealth.

Under the Green Communities Act, Massachusetts utilities are allowed to develop and own up to 50 megawatts of solar generation.

In October 2008, National Grid submitted an informational filing with the DPU announcing its plan to develop a solar program in Massachusetts.

National Grid plans to construct facilities in Dorchester, Revere, Everett, and Haverhill, Mass. on company-owned property. With its filing today, National Grid announced plans to add a fifth site at its New England Distribution Center located on the Sutton-Northbridge, Mass. border. Four of the five sites included in the company’s filing are former brownfield locations and were selected because they have sufficient space and provide a nearby source of electricity to help reduce electricity demand on the distribution networks in these areas.

National Grid estimates that designing and building the five new solar sites will cost approximately $31 million. The company anticipates these solar installations would cost its Massachusetts customers approximately six cents per month averaged over the life of the project.

Proceeds from the energy sales, renewable energy certificates, or any environmental attributes that may be obtainable in the future will be credited to customers and offset the full cost of the solar installations.

“Our formal application is the next step required before we can break ground this year on our solar program, the first to be implemented under the new Green Communities legislation,” said Tom King, president of National Grid in the U.S. “The sooner we can launch these programs the sooner we will be able to create green jobs within the state, deliver customer benefits, advance the solar industry and diversify the Commonwealth’s renewable energy portfolio. Our program moves us closer to a greener future in which we use cleaner electric power and reduce harmful emissions that contribute to global climate change.”

Under the provisions of the Green Communities Act, the DPU is expected to review the company’s proposal and make a determination within six months.

National Grid’s proposal to develop and implement a solar program includes developing, building, and owning solar installations across the state at the following National Grid-owned locations:
• Victory Road in Dorchester (1.3 MW)
• Rover Street in Everett (0.6 MW)
• Hilldale Avenue in Haverhill (1 MW)
• Railroad Street in Revere (0.7 MW)
• Sutton/Northbridge line at National Grid’s Distribution Center (1.2 MW)

Future components of National Grid’s plans are expected to include:
• Installing solar facilities on state, municipal, school, commercial and low-income properties in the National Grid service area, specifically targeting schools and communities that are already involved with the company’s energy-efficiency programs.
• Customer-owned solar installations that will make available to customers enhanced residential education and financing for the installations.

Since filing its informational proposal with the DPU in October 2008, the company has started engineering, design, permitting and licensing activities, and community outreach for its company-owned solar sites. Following DPU approval, the company plans to break ground on these facilities this year.

National Grid has more than 20 years of experience in the solar industry, beginning with the first large scale photovoltaic installation on 30 homes during the late 1980s in Gardner, Mass. and a 100 kilowatt installation at Beverly High School, Beverly, Mass. In recent years, the company has connected approximately five MW of distributed solar generation on the New England electricity system.

As part of its overall efforts to protect the environment, mitigate the effects of climate change and help customers manage their energy needs, National Grid has announced plans to implement a smart grid pilot in Worcester, Mass. and recently expanded its award-winning energy-efficiency programs. The company’s energy-efficiency programs help customers reduce energy use and save on their monthly bills.

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.