Message #16 From:
NewsBot Date: October 23, 2006 12:40:00 PM
NG News National Grid - KeySpan Merger Gains FERC Approval
WESTBOROUGH, Mass. and BROOKLYN, N.Y.--(BUSINESS WIRE)--National Grid (LSE: NG NYSE: NGG) and KeySpan Corp. (NYSE: KSE) are
pleased that the US Federal Energy Regulatory Commission (FERC) has
voted to approve their merger application. In its order, dated October
20, 2006, FERC noted KeySpan’s ownership of
generating plants located in New York City and Long Island and stated
that “the combination of the electric
generation resources is not likely to harm competition in any relevant
energy market.”
On February 27, 2006, National Grid and KeySpan announced an agreement
for National Grid to acquire KeySpan for $7.3 billion and the assumption
of approximately $4.5 billion of debt.
The FERC order is another step in the process of gaining regulatory
approval for the transaction. In July, it was determined the transaction
raised no issues of national security to warrant an investigation and
was granted an early termination of the waiting period required under
anti-trust laws. Also in July, a filing requesting approval of the
merger was made with the New York State Public Service Commission, and
National Grid shareholders voted to approve the acquisition. In August,
KeySpan shareholders approved the merger and a filing requesting
approval of the merger was made with the New Hampshire Public Utilities
Commission.
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 customers in Massachusetts, New Hampshire, New York
and Rhode Island and natural gas to approximately 814,000 customers in
New York and Rhode Island.
KeySpan will be National Grid's fifth US acquisition. Previously, it had
acquired New England Electric System and Eastern Utilities Associates
(2000), Niagara Mohawk (2002), and the Rhode Island gas distribution
business of Southern Union Company (2006).
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 meters in homes and businesses in Britain. In addition, it has a
number of businesses operating in related areas such as LNG importation,
wireless infrastructure for broadcast and telecommunications, property,
metering and interconnectors. For more information, visit National Grid’s
web site at www.nationalgrid.com.
About KeySpan:
A member of the Standard & Poor’s 500
Index, KeySpan Corporation (NYSE:KSE) is the fifth largest distributor
of natural gas in the United States and the largest in the Northeast,
operating regulated gas utilities in New York, Massachusetts and New
Hampshire that serve 2.6 million customers. These customer-focused
businesses are complemented by a portfolio of service companies that
offer energy-related products, services, and solutions to homes and
businesses. KeySpan is also the largest electric generator in New York
State, with approximately 6,650 megawatts of generating capacity that
provides power to 1.1 million customers of the Long Island Power
Authority (LIPA) on Long Island and supplies approximately 25 percent of
New York City’s capacity needs. KeySpan also
operates LIPA’s transmission and distribution
system under contract to LIPA. In addition to these assets, KeySpan has
strategic investments in pipeline transportation, distribution, storage,
and production. KeySpan has headquarters in Brooklyn, New England, and
Long Island. For more information, visit KeySpan’s
web site at www.keyspanenergy.com.
