Charlottesville, Virginia (Platts)--5May2008

National Grid proposed a $220 million energy efficiency program for
upstate New York Monday to help the state achieve its goal of reducing energy
use 15% by 2015.

The three-year program is in keeping with New York's turnaround in how it
delivers energy efficiency. Since the state restructured, the New York State
Energy Research and Development Authority has handled most programs.

But the state Public Service Commission has opened the way for utility
involvement as part of an investigation into creating a bigger portfolio.

National Grid plans to model the New York program after its 20-year-old
conservation and load management program in New England. The utility will
offer programs for residential, commercial and industrial customers.

The program is expected to save 4.4 million MWh of electricity and 8.5
million MMBtu of natural gas over the lifetime of the efficiency products and
equipment. The utility forecasts ratepayer savings of more than $350 million.

The plan includes a decoupling mechanism to recover all lost revenue and
a performance-based incentive to share cost savings with customers.

National Grid has asked the regulator for an expedited review and hopes
to begin offering the program in October.