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NATIONAL GRID ANNOUNCES SERVICE CONTRACT WITH LONG ISLAND POWER AUTHORITY WILL NOT BE RENEWED BEYOND 2013
NATIONAL GRID ANNOUNCES SERVICE CONTRACT WITH LONG ISLAND POWER AUTHORITY WILL NOT BE RENEWED BEYOND 2013

December 15, 2011 -- National Grid has not been selected by the Long Island Power Authority (LIPA) to continue to manage and operate its Long Island electric system beyond the term of the current Management Services Agreement (MSA), which expires on December 31, 2013, the company announced today. The announcement is the outcome of a New York state-administered competitive bid process.

“We are very proud of the efforts of our employees who have supported the LIPA contract for the past 13 years. National Grid will continue to effectively serve LIPA and its customers for the duration of our current agreement while assisting LIPA’s transition to a new services provider,” said Tom King, president of National Grid’s U.S. business. “While we are disappointed at not being selected, the decision has no impact on our commitment to our gas distribution and electric generation business on Long Island or our continuing overall presence in the U.S.”

The operating profit contribution from the LIPA contract, which is less than one percent, is not material when compared to overall profitability of National Grid, the company said.

National Grid manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA), a New York state government authority. The current MSA contract with LIPA is still in effect and National Grid will continue to meet the obligations and commitment under that agreement.

NATIONAL GRID

National Grid (LSE: NG; NYSE:NGG) is an electricity and gas company that connects consumers to energy sources through its networks. The company is at the heart of one of the greatest challenges facing our society - to create new, sustainable energy solutions for the future and developing an energy system that underpins economic prosperity in the 21st century. National Grid holds a vital position at the center of the energy system and it ‘joins everything up’.

In the northeast US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles. In Great Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.

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

For more information please visit our website: www.nationalgridus.com

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