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National Grid Restructures U.S. Business to Increase Local Focus, Improve Customer Experience and Deliver Efficiencies
NATIONAL GRID RESTRUCTURES U.S. BUSINESS TO INCREASE LOCAL FOCUS, IMPROVE CUSTOMER EXPERIENCE AND DELIVER EFFICIENCIES

• National Grid commits to improve customer, financial performance by sharpening local focus and living within regulatory allowances

• New executives appointed to lead regional businesses, focus on understanding and meeting local needs and expectations

• U.S. Business restructure targets savings of $200 million by March 2012 primarily through the reduction of approximately 1,200 positions

WALTHAM, Mass., January 31, 2011 -– National Grid (LSE:NG; NYSE:NGG) today committed to improve its U.S. performance by announcing a sweeping business restructure that will create a more locally focused organization led by regional presidents responsible for understanding and meeting the needs of customers, communities and regulators in each state or jurisdiction where the company operates.

The new structure also will enable National Grid to streamline many customer-facing processes and procedures, thereby improving customers’ interactions with the company while maintaining safe and reliable service.

National Grid’s new U.S. structure will transition to a more state-focused management from the existing global line-of-business organization, established in 2007, and aligned to the company’s three core international businesses: electricity distribution and generation, natural gas distribution, and electricity and gas transmission.

In the new structure, Tom King, president, National Grid U.S., will assume responsibility for all U.S. business segments.

New regional presidents have also been appointed for Massachusetts, New York, Rhode Island/New Hampshire, and for managing the company’s relationships with the Federal Energy Regulatory Commission, and with Long Island Power Authority (LIPA) where National Grid manages the electricity transmission and distribution system on Long Island on behalf of LIPA.

The new regional presidents are: Marcy Reed, Massachusetts; Kenneth Daly, New York; Timothy Horan, Rhode Island/New Hampshire; John Bruckner, Long Island; and Peter Flynn, FERC Regulated Businesses. Biographies of these executives are included at the end of this document.

The regional Presidents will assume responsibility for their respective jurisdictions and deliver focused regional business plans that respond to their stakeholders’ expectations and needs. They will work closely with other U.S. senior managers across National Grid responsible for operations, network strategy, customer service, regulatory affairs and areas such as fleet, property and materials.

“We are fundamentally changing the way we run our U.S. business to better serve our customers, meet our regulatory obligations and improve our financial performance,” King said. “We are creating a more efficient, locally focused organization that can live within the financial means allowed by our regulators. King continued, “By driving our operational and customer-facing functions to serve the needs of our unique U.S. jurisdictions, we expect to deliver to our customers and regulators the benefits of a business that is local in focus and global in scope.”

National Grid is expects to reduce its costs by approximately $200 million with the new structure, primarily through the reduction of approximately 1,200 positions in the U.S.

“The decision to reduce our U.S. workforce is a very difficult one,” King commented. “But we must ensure we are working within our financial means and focusing on the things that really matter to our customers and regulators.” He concluded, “Right now, we are using more resources than our revenues can support, and that is simply no longer sustainable.”

The new organization takes effect in April. The staffing process will occur during the next several months and will be completed this summer. Employees not selected for a position will be eligible for a severance package.

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.

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National Grid U.S. Regional Presidents

The regional presidents have more than a century of combined experience at National Grid, its legacy companies and in the energy industry. They also have solid ties to the community, providing strong support and service to non-profit organizations focused on education, energy and the environment.

John Bruckner has been named president, Long Island. He was most recently senior vice president of electric transmission and distribution on Long Island and has also held various senior positions in electric operations and project management. National Grid manages the electricity network on Long Island under an agreement with the Long Island Power Authority. LIPA, a non-profit municipal electric provider, owns the retail electric transmission and distribution system on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens.

Ken Daly has been named president, New York. Daly will oversee National Grid’s regulated businesses that provide electricity and natural gas to customers in Upstate New York, and natural gas to customers in Brooklyn, Staten Island, and Queens and on Long Island. He was most recently global finance controller for National Grid, and previously held senior positions in finance, human resources, operations and customer service in New York. National Grid has 1.6 million electricity customers in upstate New York and 2.3 million natural gas customers across large portions of state. The company’s service area spans from Niagara Falls to the forks of Long Island.

Peter Flynn has been named president, FERC Regulated Businesses. He was most recently deputy general counsel for federal and New York regulatory issues and has also held various senior positions in legal, transmission, and regulation and pricing for National Grid. Flynn will be responsible for managing the company’s overall relationship with the Federal Energy Regulatory Commission.

Tim Horan has been named president, Rhode Island and New Hampshire. He was most recently senior vice president for safety, health and environment in the U.S., and has also held senior positions in business services and field construction. National Grid has 482,000 electricity and 223,000 natural gas customers in Rhode Island. The company’s market area includes most of the state. In New Hampshire, the company currently serves approximately 41,000 electricity customers in the southern and western portions of the state, and 85,000 natural gas customers in the south and central portions.

Marcy Reed has been named president, Massachusetts. She was most recently senior vice president of public affairs for National Grid in the U.S., and has also held senior positions in finance, customer service and investor relations. National Grid has nearly 1.3 million electricity and 835,000 natural gas customers in Massachusetts. The company’s service area spans from the Berkshires to the coastal regions for electricity, including Nantucket Island, with its gas service area primarily in the eastern portions of the state, including most of Cape Cod.