National Grid 2008 Annual Report Download

Download and view the complete annual report

Please find the complete 2008 National Grid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 718

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298
  • 299
  • 300
  • 301
  • 302
  • 303
  • 304
  • 305
  • 306
  • 307
  • 308
  • 309
  • 310
  • 311
  • 312
  • 313
  • 314
  • 315
  • 316
  • 317
  • 318
  • 319
  • 320
  • 321
  • 322
  • 323
  • 324
  • 325
  • 326
  • 327
  • 328
  • 329
  • 330
  • 331
  • 332
  • 333
  • 334
  • 335
  • 336
  • 337
  • 338
  • 339
  • 340
  • 341
  • 342
  • 343
  • 344
  • 345
  • 346
  • 347
  • 348
  • 349
  • 350
  • 351
  • 352
  • 353
  • 354
  • 355
  • 356
  • 357
  • 358
  • 359
  • 360
  • 361
  • 362
  • 363
  • 364
  • 365
  • 366
  • 367
  • 368
  • 369
  • 370
  • 371
  • 372
  • 373
  • 374
  • 375
  • 376
  • 377
  • 378
  • 379
  • 380
  • 381
  • 382
  • 383
  • 384
  • 385
  • 386
  • 387
  • 388
  • 389
  • 390
  • 391
  • 392
  • 393
  • 394
  • 395
  • 396
  • 397
  • 398
  • 399
  • 400
  • 401
  • 402
  • 403
  • 404
  • 405
  • 406
  • 407
  • 408
  • 409
  • 410
  • 411
  • 412
  • 413
  • 414
  • 415
  • 416
  • 417
  • 418
  • 419
  • 420
  • 421
  • 422
  • 423
  • 424
  • 425
  • 426
  • 427
  • 428
  • 429
  • 430
  • 431
  • 432
  • 433
  • 434
  • 435
  • 436
  • 437
  • 438
  • 439
  • 440
  • 441
  • 442
  • 443
  • 444
  • 445
  • 446
  • 447
  • 448
  • 449
  • 450
  • 451
  • 452
  • 453
  • 454
  • 455
  • 456
  • 457
  • 458
  • 459
  • 460
  • 461
  • 462
  • 463
  • 464
  • 465
  • 466
  • 467
  • 468
  • 469
  • 470
  • 471
  • 472
  • 473
  • 474
  • 475
  • 476
  • 477
  • 478
  • 479
  • 480
  • 481
  • 482
  • 483
  • 484
  • 485
  • 486
  • 487
  • 488
  • 489
  • 490
  • 491
  • 492
  • 493
  • 494
  • 495
  • 496
  • 497
  • 498
  • 499
  • 500
  • 501
  • 502
  • 503
  • 504
  • 505
  • 506
  • 507
  • 508
  • 509
  • 510
  • 511
  • 512
  • 513
  • 514
  • 515
  • 516
  • 517
  • 518
  • 519
  • 520
  • 521
  • 522
  • 523
  • 524
  • 525
  • 526
  • 527
  • 528
  • 529
  • 530
  • 531
  • 532
  • 533
  • 534
  • 535
  • 536
  • 537
  • 538
  • 539
  • 540
  • 541
  • 542
  • 543
  • 544
  • 545
  • 546
  • 547
  • 548
  • 549
  • 550
  • 551
  • 552
  • 553
  • 554
  • 555
  • 556
  • 557
  • 558
  • 559
  • 560
  • 561
  • 562
  • 563
  • 564
  • 565
  • 566
  • 567
  • 568
  • 569
  • 570
  • 571
  • 572
  • 573
  • 574
  • 575
  • 576
  • 577
  • 578
  • 579
  • 580
  • 581
  • 582
  • 583
  • 584
  • 585
  • 586
  • 587
  • 588
  • 589
  • 590
  • 591
  • 592
  • 593
  • 594
  • 595
  • 596
  • 597
  • 598
  • 599
  • 600
  • 601
  • 602
  • 603
  • 604
  • 605
  • 606
  • 607
  • 608
  • 609
  • 610
  • 611
  • 612
  • 613
  • 614
  • 615
  • 616
  • 617
  • 618
  • 619
  • 620
  • 621
  • 622
  • 623
  • 624
  • 625
  • 626
  • 627
  • 628
  • 629
  • 630
  • 631
  • 632
  • 633
  • 634
  • 635
  • 636
  • 637
  • 638
  • 639
  • 640
  • 641
  • 642
  • 643
  • 644
  • 645
  • 646
  • 647
  • 648
  • 649
  • 650
  • 651
  • 652
  • 653
  • 654
  • 655
  • 656
  • 657
  • 658
  • 659
  • 660
  • 661
  • 662
  • 663
  • 664
  • 665
  • 666
  • 667
  • 668
  • 669
  • 670
  • 671
  • 672
  • 673
  • 674
  • 675
  • 676
  • 677
  • 678
  • 679
  • 680
  • 681
  • 682
  • 683
  • 684
  • 685
  • 686
  • 687
  • 688
  • 689
  • 690
  • 691
  • 692
  • 693
  • 694
  • 695
  • 696
  • 697
  • 698
  • 699
  • 700
  • 701
  • 702
  • 703
  • 704
  • 705
  • 706
  • 707
  • 708
  • 709
  • 710
  • 711
  • 712
  • 713
  • 714
  • 715
  • 716
  • 717
  • 718

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: *
Lines: *Name: *
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: (212)924-5500Site: BOWNE OF NEW YORK
Y59930.SUB
Validation: N * CHKSHT-1*BNY
**CHKSHT-1*
********************************************************************************
* BOWNE EDGAR CONTROL SHEET *
********************************************************************************
SUBMISSION HEADER FOR EDGAR_DIR:[SUB]Y59930.SUB:
<SUBMISSION>
<TYPE> 20-F
<DOCUMENT-COUNT> 110
<LIVE>
<FILER-CIK> 0001004315
<FILER-CCC> ########
<CONTACT-NAME> Bowne of New York
<CONTACT-PHONE-NUMBER> 212-658-5005
<SROS> NYSE
<PERIOD> 03-31-2008
<NOTIFY-INTERNET> [email protected]
<NOTIFY-INTERNET> [email protected]
<NOTIFY-INTERNET> [email protected]
<SHELLCOMPANY> No
<VOLUNTARY_FILER> No
<WELL-KNOWN_SEASONED_ISSUER> No
<ACCELERATED-FILER-STATUS> Large Accelerated Filer
DOCUMENT LIST FOR EDGAR_DIR:[SUB]Y59930.SUB:
No. Document Type Type Source
----- ------------------------------ ---- ----------------------------------------
1. 20-F 2 Y59930/001 -024 ❒
2. EX-2.A 2 Y59930/400 -461 ❒
3. EX-2.B.4.2 2 Y59930/475 -475 ❒
4. EX-2.B.5.1 2 Y59930/480 -586 ❒
5. EX-2.B.5.2 2 Y59930/600 -600 ❒
6. EX-2.B.6.1 2 Y59930/605 -738 ❒
7. EX-2.B.6.2 2 Y59930/750 -750 ❒
8. EX-2.B.7.1 2 Y59930/755 -836 ❒
9. EX-4.C.8 2 Y59930/837 -869 ❒
10. EX-4.C.9 2 Y59930/870 -893 ❒
11. EX-4.C.11 2 Y59930/900 -904 ❒
12. EX-8 2 Y59930/910 -920 ❒
13. EX-12.1 2 Y59930/930 -930 ❒
14. EX-12.2 2 Y59930/940 -940 ❒
15. EX-13 2 Y59930/945 -945 ❒
16. EX-15.1 2 Y59930/195 -382 ❒
17. EX-15.2 2 Y59930/950 -950 ❒
18. y59930y5993001.gif G ❒
19. y59930y5993002.gif G ❒
20. y59930y5993003.gif G ❒
21. y59930y5993004.gif G ❒
22. y59930y5993094.gif G ❒
23. y59930y5993005.gif G ❒
24. y59930y5993006.gif G ❒
25. y59930y5993007.gif G ❒
26. y59930y5993009.gif G ❒
27. y59930y5993008.gif G ❒
28. y59930y5993010.gif G ❒
29. y59930y5993011.gif G ❒
30. y59930y5993012.gif G ❒
31. y59930y5993016.gif G ❒
32. y59930y5993013.gif G ❒
33. y59930y5993014.gif G ❒

Table of contents

  • Page 1
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB Phone: (212)924-5500 * BNY * Operator: BNY99999T *CHKSHT-1* CHKSHT-1 Date: 17-JUN-2008 03:10:51.35 BOWNE EDGAR CONTROL SHEET SUBMISSION HEADER FOR EDGAR_DIR:[SUB]Y59930.SUB:

  • Page 2
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB Phone: (212)924-5500 * BNY * Operator: BNY99999T *CHKSHT-2* CHKSHT-2 Date: 17-JUN-2008 03:10:51.35 BOWNE EDGAR CONTROL SHEET DOCUMENT LIST FOR EDGAR_DIR:[SUB]Y59930.SUB - ...

  • Page 3
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB Phone: (212)924-5500 * BNY * Operator: BNY99999T *CHKSHT-3* CHKSHT-3 Date: 17-JUN-2008 03:10:51.35 BOWNE EDGAR CONTROL SHEET DOCUMENT LIST FOR EDGAR_DIR:[SUB]Y59930.SUB - ...

  • Page 4
    ... SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB Phone: (212)924-5500 * BNY * Operator: BNY99999T *SUBHDR* SUBHDR Date: 17-JUN-2008 03:10:51.35

  • Page 5
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: 20-F, Doc: 1 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/1* DOCHDR 1 Date: 17-JUN-2008 03:10:51.35 20-F ...

  • Page 6
    ... 15(d) of the Securities Exchange Act of 1934: None. EDGAR 2 The number of outstanding shares of each of the issuer's classes of capital or common stock as of March 31, 2008 was 2,581,913,516 No BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9109 Y59930.SUB...

  • Page 7
    ... the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Phone: (212)924-5500 BNY Y59930 001.00.00.00-1 2/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9109 Y59930.SUB...

  • Page 8
    ...-core businesses; the failure for any reason to achieve reductions in costs or to achieve operational efficiencies; the failure to retain key management; the behaviour of UK electricity market participants on system balancing; the timing of amendments in prices to shippers in the UK gas market; the...

  • Page 9
    ...-12.2: CERTIFICATION EX-13: CERTIFICATION EX-15.1: NATIONAL GRID PLC ANNUAL REPORT EX-15.2: CONSENT OF PRICEWATERHOUSECOOPERS LLP Phone: (212)924-5500 EDGAR 2 *Y59930/003/2* Operator: BNY99999T ii BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 65523 Y59930...

  • Page 10
    ... of IFRS by the Company, there have been no significant changes in accounting standards, interpretations or policies that have had a material financial impact on the selected financial data other EDGAR 2 1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13312...

  • Page 11
    ...44 20 7004 3000). The Company's agent in the United States is Lawrence J. Reilly, Executive Vice President and General Counsel, National Grid USA, 25 Research Drive, Westborough, MA 01582. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27097 Y59930.SUB, DocName...

  • Page 12
    ... operational plant and gas storage facilities used in our UK gas distribution business. The vast majority of office buildings, depots and stores used by UK gas distribution are leased from another company within National Grid. Phone: (212)924-5500 BNY Y59930 006.00.00.00 4/4 Date: 17-JUN-2008...

  • Page 13
    ... set forth under the headings "Operating and Financial Review" on pages 14 to 85 and "Research and development" on page 98 of the Company's Annual Report and Accounts 2007/08 contained in Exhibit 15.1 is incorporated herein by reference. Item 6. Directors, Senior Management and Employees Phone...

  • Page 14
    ... issued share capital of the Company: Number of Ordinary Shares % of Outstanding Share Capital* Legal and General Investment Management Ltd Fidelity International Limited 145,542,289 82,805,863 5.82 3.06 * This number is calculated in relation to the issued share capital at the time the holding...

  • Page 15
    ... the business of a holding company; • employing the funds of the Company to develop and expand its business; and Phone: (212)924-5500 BNY Y59930 009.00.00.00 10/5 EDGAR 2 *Y59930/009/5* Operator: BNY99999T 6 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 16
    ... Board of Directors. The Board of Directors may pay interim dividends if the Board of Directors considers that National Grid's financial position justifies the payment. Except insofar as the rights attaching to any share otherwise provide, all dividends will be apportioned and paid proportionately...

  • Page 17
    ... of the business to be transacted. The notice must also specify the place, the day and the time of the meeting. Rights of Non-Residents There are no restrictions under National Grid's Articles that would limit the rights of persons not resident in the UK, as such, to vote ordinary shares. Disclosure...

  • Page 18
    ... member of National Grid has any obligation or entitlement which is material to us at the date of this report. Exchange controls There are currently no UK laws, decrees or regulations that restrict the export or import of capital, including, but not limited to, foreign exchange control restrictions...

  • Page 19
    ... financial statements and its current expectations regarding the value and nature of its assets, the sources and nature of its income, and relevant market and shareholder data, National Grid does not anticipate becoming a PFIC for its 2008 taxable year or in the foreseeable future. Dividends paid...

  • Page 20
    ... multiple of £5. US Information Reporting and Backup Withholding Phone: (212)924-5500 BNY Y59930 014.00.00.00 7/5 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/014/5* BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48769 Y59930.SUB, DocName...

  • Page 21
    ... Rights of Security Holders and Use of Proceeds None. Item 15. Controls and Procedures Disclosure controls and procedures Phone: (212)924-5500 BNY Y59930 015.00.00.00 7/5 EDGAR 2 *Y59930/015/5* Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 22
    ... of internal control over financial reporting for the year ended 31 March 2008, and therefore, management have excluded it from its assessment. KeySpan Corporation is a whollyowned subsidiary whose total assets and total revenues represented 25% and 22%, respectively, of the related consolidated...

  • Page 23
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 62758 Y59930.SUB, DocName: 20-F, Doc: 1, Page: 17 Phone: (212)924-5500 [A/E] BNY Y59930 017.00.00.00 10/9 *Y59930/017/9* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Item 16C. Principal Accountant Fees and Services...

  • Page 24
    ... from stranded assets under our US rate plans). On 3 April 2007 the Company announced the sale of its UK Wireless business and that it would return £1.8 billion to shareholders via an extension of the existing share buy-back programme, expected to be effected on the London Stock Exchange over the...

  • Page 25
    ... on the Company's internal control over financial reporting based on our audits (which were integrated audits in 2007 and 2008). We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform...

  • Page 26
    ...15 in this Form 20-F, management has excluded KeySpan Corporation from its assessment of internal control over financial reporting as of 31 March 2008 because KeySpan Corporation was acquired by the Company in a purchase business combination during the year ended 31 March 2008. We have also excluded...

  • Page 27
    ... by National Grid Gas Holdings plc and National Grid Gas plc and National Grid Gas Finance (No 1) plc on 4 February 2008 relating to â,¬ â,¬ 10,000,000,000 issuable under the Euro Medium Term Note Programme Prospectus issued by National Grid plc and National Grid Electricity Transmission plc on...

  • Page 28
    ... Prospectus issued by National Grid Gas plc and National Grid Gas Finance (No 1) plc on 26 February 2008 relating to â,¬ â,¬ 10,000,000,000 issuable under the Euro Medium Term Note Programme Service Agreement among The National Grid Group plc, National Grid Company plc and Edward Astle dated 27 July...

  • Page 29
    ... of Steve Holliday Certification of Steve Lucas Certifications of Steve Holiday and Steve Lucas furnished pursuant to 18 U.S.C. Section 1350 National Grid plc Annual Report and Accounts 2007/08, in extracted form Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm...

  • Page 30
    ... annual report on its behalf. NATIONAL GRID PLC By: /s/ Steve Lucas Steve Lucas Finance Director London, England 17 June 2008 21 Phone: (212)924-5500 BNY Y59930 024.00.00.00 10/8 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name...

  • Page 31
    ...TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.A, Doc: 2 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/2* DOCHDR 2 Date: 17-JUN-2008 03:10:51.35 EX-2.A y59930exv2wa.htm...

  • Page 32
    ... NEW YORK Name: NATIONAL GRID CRC: 63195 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 1 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 400.00.00.00 0/4 *Y59930/400/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 EXHIBIT 2(a) NATIONAL GRID PLC AND THE BANK OF NEW...

  • Page 33
    ... RESTATED DEPOSIT AGREEMENT dated as of August 1, 2005, among NATIONAL GRID PLC (F/K/A National Grid Transco plc F/K/A National Grid Group plc), a public limited company incorporated under the laws of England and Wales ( herein called the Issuer), THE BANK OF NEW YORK, a New York banking corporation...

  • Page 34
    ... owning from time to time any beneficial interest in the American Depositary Shares evidenced by any Receipt. Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 402.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 5975...

  • Page 35
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 53259 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 4 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 403.00.00.00 0/2 *Y59930/403/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SECTION 1.4. Commission. The term...

  • Page 36
    ... transfer and registration of Shares. SECTION 1.12. Issuer. The term "Issuer" shall mean National Grid plc, a public limited company incorporated under the laws of England and Wales, and its successors. SECTION 1.13. Owner. The term "Owner" shall mean the person in whose name a Receipt is registered...

  • Page 37
    ... did not hold such office on the date of issuance of such Receipts. Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 405.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7948 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page...

  • Page 38
    ..., Shares presented for deposit at any time, whether or not the transfer books of Phone: (212)924-5500 BNY Y59930 406.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 53957 Y59930.SUB, DocName: EX...

  • Page 39
    ... and the number of American Depositary Shares to be evidenced thereby. Phone: (212)924-5500 BNY Y59930 407.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22251 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 40
    ... and compliance with applicable laws and other requirements by Owners or Phone: (212)924-5500 BNY Y59930 408.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9868 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 41
    ... of sale of any dividends, distributions or rights, which may at the time be held by the Depositary. Phone: (212)924-5500 BNY Y59930 409.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 45499...

  • Page 42
    ... delays caused by closing the transfer books of the Depositary, the Issuer or the Foreign Registrar or the Phone: (212)924-5500 BNY Y59930 410.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44410...

  • Page 43
    ... BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41718 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 12 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 411.00.00.00 0/2 *Y59930/411/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 deposit of Shares in connection with voting...

  • Page 44
    ... OF NEW YORK Name: NATIONAL GRID CRC: 24292 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 13 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 412.00.00.00 0/2 *Y59930/412/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Depositary may receive Receipts in lieu of Shares...

  • Page 45
    ... OF NEW YORK Name: NATIONAL GRID CRC: 49543 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 14 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 413.00.00.00 0/2 *Y59930/413/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 of each Owner will be credited to the DRS account...

  • Page 46
    ... or Beneficial Owner of such Receipt Phone: (212)924-5500 BNY Y59930 414.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49813 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 15 Description: EXHIBIT...

  • Page 47
    ... in such Shares. In the case of holders of more than 0.25% in Phone: (212)924-5500 BNY Y59930 415.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41682 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page...

  • Page 48
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15620 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 17 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 416.00.00.00 0/2 *Y59930/416/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 nominal amount of the share capital...

  • Page 49
    ... 4.5, convert such dividend or distribution into Dollars, if applicable, and shall Phone: (212)924-5500 BNY Y59930 417.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 36602 Y59930.SUB, DocName: EX...

  • Page 50
    ... including, but not limited to, the public or private sale of the securities or property thus received, or Phone: (212)924-5500 BNY Y59930 418.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44008...

  • Page 51
    ... such rights available to all Owners or to certain Owners but not to other Phone: (212)924-5500 BNY Y59930 419.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6052 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 52
    ... make such rights available, and allocate the net proceeds of such Phone: (212)924-5500 BNY Y59930 420.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49625 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 53
    ...the terms of such warrants or other instruments. Such distribution may be Phone: (212)924-5500 BNY Y59930 421.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28273 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 54
    ... Depositary Share, or whenever the Depositary shall receive notice of any Phone: (212)924-5500 BNY Y59930 422.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61977 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 55
    ...SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32644 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 24 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 423.00.00.00 0/2 *Y59930/423/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 meeting of holders of Shares or...

  • Page 56
    ... accordance with the instructions set forth in such request. Phone: (212)924-5500 BNY Y59930 424.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 25530 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 25...

  • Page 57
    ...the UK Companies Act...rights...Shares or Deposited Securities in accordance with the provisions set forth in this Section. Phone: (212)924-5500 BNY Y59930 425.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 58
    ... Depositary may by public or private sale dispose of all or a portion of such property (including Shares and Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 426.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15019...

  • Page 59
    ...TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 47393 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 28 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 427.00.00.00 0/2 *Y59930/427/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 rights to subscribe...

  • Page 60
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 36652 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 29 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 428.00.00.00 0/2 *Y59930/428/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 stock exchange, or...

  • Page 61
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 30348 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 30 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 429.00.00.00 0/2 *Y59930/429/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 ...

  • Page 62
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 36474 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 31 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 430.00.00.00 0/2 *Y59930/430/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 The Depositary may at any time be removed...

  • Page 63
    ...opinion from U.S. counsel for the Issuer, Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 431.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48647 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 32 Description: EXHIBIT...

  • Page 64
    ... when required under the terms of Section 2.5 Phone: (212)924-5500 BNY Y59930 432.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 45338 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 33 Description...

  • Page 65
    ... in writing to pay such fees and expenses, (b) the Indemnitee shall have Phone: (212)924-5500 BNY Y59930 433.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52333 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 66
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32747 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 35 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 434.00.00.00 0/2 *Y59930/434/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 reasonably and in good faith...

  • Page 67
    ... longer period or turned over to the Issuer or to a successor depositary. Phone: (212)924-5500 BNY Y59930 435.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57009 Y59930.SUB, DocName: EX-2.A, Doc...

  • Page 68
    ... with mandatory provisions of applicable law. Phone: (212)924-5500 BNY Y59930 436.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 46671 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 37 Description...

  • Page 69
    ... from all obligations under this Phone: (212)924-5500 BNY Y59930 437.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 16269 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 38 Description: EXHIBIT...

  • Page 70
    ... telex or facsimile transmission Phone: (212)924-5500 BNY Y59930 438.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32220 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 39 Description: EXHIBIT 2(A) [E/O] EDGAR 2 *Y59930/438/2* Operator: BNY99999T

  • Page 71
    ... 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 439.00.00.00 0/2 *Y59930/439/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 confirmed by letter, addressed to National Grid plc, 15 Marylebone Road, London NW1 5JD, United Kingdom, Attention: Company Secretary or any other place to...

  • Page 72
    ... Statement, as amended from time to time, under the Securities Act of 1933. Phone: (212)924-5500 BNY Y59930 440.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 16052 Y59930.SUB, DocName: EX...

  • Page 73
    ...: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 441.00.00.00 0/4 *Y59930/441/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 IN WITNESS WHEREOF NATIONAL GRID PLC and THE BANK OF NEW YORK have duly executed this agreement as of the day and year first set forth above and...

  • Page 74
    ... principal executive office is located at One Wall Street, New York, N.Y. 10286. THE DEPOSITARY'S CORPORATE TRUST OFFICE ADDRESS IS 101 BARCLAY STREET, NEW YORK, N.Y. 10286 Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 75
    ... by closing the transfer Phone: (212)924-5500 BNY Y59930 443.00.00.00 0/3 -2- BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 42143 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 44 Description: EXHIBIT 2(A) [E/O] EDGAR 2 *Y59930/443/3* Operator: BNY99999T

  • Page 76
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 3814 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 45 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 444.00.00.00 0/3 *Y59930/444/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 books of the Depositary the Company...

  • Page 77
    ... of currency exchange. -4- Phone: (212)924-5500 BNY Y59930 445.00.00.00 0/3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51142 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 46 Description: EXHIBIT 2(A) [E/O] EDGAR 2 *Y59930/445/3* Operator: BNY99999T

  • Page 78
    ...NEW YORK Name: NATIONAL GRID CRC: 29150 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 47 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 446.00.00.00 0/3 *Y59930/446/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 7. CHARGES OF DEPOSITARY. The Company agrees to pay...

  • Page 79
    ...may retain for its own account any compensation received by it in connection with the foregoing. -6- Phone: (212)924-5500 BNY Y59930 447.00.00.00 0/3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 5708 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 48 Description...

  • Page 80
    ...which at all reasonable times shall be open for inspection by the Owners of BNY Y59930 448.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 -7- Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57370 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 49...

  • Page 81
    ... Receipts evidencing an aggregate number of American Depositary Shares representing the amount Phone: (212)924-5500 BNY Y59930 449.00.00.00 0/4 -8- BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54870 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 50 Description...

  • Page 82
    ... YORK Name: NATIONAL GRID CRC: 4971 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 51 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 450.00.00.00 0/4 *Y59930/450/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 of Shares received as such dividend or free distribution...

  • Page 83
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 62385 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 52 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 451.00.00.00 0/4 *Y59930/451/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 If at any time the...

  • Page 84
    ... States for the Company upon which the Depositary may rely that such distribution to such Owner is exempt from such registration. Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 BNY Y59930 452.00.00.00 0/3 - 11 - BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 85
    ... BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 56756 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 54 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 453.00.00.00 0/5 *Y59930/453/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 The Depositary shall not be responsible for...

  • Page 86
    ... that Owner the special rights and privileges accorded - 13 - Phone: (212)924-5500 BNY Y59930 454.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7108 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 55...

  • Page 87
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 34483 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 56 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 455.00.00.00 0/4 *Y59930/455/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 under the Company's Articles...

  • Page 88
    ...is in good faith. The Company agrees to indemnify the Depositary, its directors, employees, agents and affiliates and any Custodian against, and hold each of - 15 - Phone: (212)924-5500 BNY Y59930 456.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 89
    ... comply with mandatory provisions of applicable law. Date: 17-JUN-2008 03:10:51.35 - 16 - Phone: (212)924-5500 BNY Y59930 457.00.00.00 0/4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 47636 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 58 Description: EXHIBIT...

  • Page 90
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 2188 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 59 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 458.00.00.00 0/4 *Y59930/458/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 21....

  • Page 91
    ... those held by certain investment fund managers) may - 18 - Phone: (212)924-5500 BNY Y59930 459.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 63461 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 60...

  • Page 92
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57771 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 61 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 460.00.00.00 0/4 *Y59930/460/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 be...

  • Page 93
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7054 Y59930.SUB, DocName: EX-2.A, Doc: 2, Page: 62 Description: EXHIBIT 2(A) Phone: (212)924-5500 [E/O] BNY Y59930 461.00.00.00 0/4 *Y59930/461/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 limited to, Section...

  • Page 94
    ... Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.4.2, Doc: 3 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/3* DOCHDR 3 Date: 17-JUN-2008 03:10:51.35 EX-2.B.4.2 y59930exv2wbw4w2.htm EX...

  • Page 95
    ... under registered number 5895068) Euro 10,000,000,000 Euro Medium Term Note Programme In respect of Instruments to be issued by National Grid Gas Finance (No 1) plc, unconditionally and irrevocably guaranteed by National Grid Gas plc Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924...

  • Page 96
    ...N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/4* DOCHDR 4 Date: 17-JUN-2008 03:10:51.35 EX-2.B.5.1 y59930exv2wbw5w1.htm EX-2.B.5.1: PROSPECTUS ISSUED BY NATIONAL GRID PLC

  • Page 97
    ... Bank Mitsubishi UFJ Securities International plc RBC Capital Markets Phone: (212)924-5500 The date of this Prospectus is 2 August 2007 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44140 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 1 Description: EXH...

  • Page 98
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20332 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 2 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 481.00.00.00 0/2 *Y59930/481/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 IMPORTANT NOTICES...

  • Page 99
    ... on behalf of any Stabilising Manager(s) in accordance with all applicable laws and rules. 3 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 63955 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 3 Description: EXH 2(B).5.1 [E/O] EDGAR...

  • Page 100
    ... THE PROGRAMME RISK FACTORS TERMS AND CONDITIONS OF THE INSTRUMENTS SUMMARY OF PROVISIONS RELATING TO THE INSTRUMENTS WHILE IN GLOBAL FORM USE OF PROCEEDS DESCRIPTION OF NATIONAL GRID PLC DESCRIPTION OF NATIONAL GRID ELECTRICITY TRANSMISSION PLC UNITED KINGDOM TAXATION PLAN OF DISTRIBUTION Date: 17...

  • Page 101
    ...: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 DOCUMENTS INCORPORATED BY REFERENCE Each Base Prospectus should be read and construed in conjunction with the audited consolidated annual financial statements of each of NGET or National Grid, as the case may be, for the financial years ended 31...

  • Page 102
    ...BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 30843 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 6 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 485.00.00.00 0/1 *Y59930/485/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUPPLEMENTAL PROSPECTUS If at any time an...

  • Page 103
    ... National Grid Electricity Transmission plc Euro Medium Term Note Programme Up to Euro 15,000,000,000 (or the equivalent in other currencies at the date of issue) aggregate nominal amount of Instruments outstanding at any one time. HSBC Bank plc ABN AMRO Bank N.V. Banc of America Securities Limited...

  • Page 104
    ...Instruments Clearing Systems Initial Delivery of Instruments Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 487.00.00.00 0/3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33406 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page...

  • Page 105
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 31537 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 9 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 488.00.00.00 0/2 *Y59930/488/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 106
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48336 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 10 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 489.00.00.00 0/3 *Y59930/489/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 the International Swaps...

  • Page 107
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 46315 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 11 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 490.00.00.00 0/2 *Y59930/490/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 108
    ... to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. United States, United Kingdom, European Economic Area (in the case of unlisted Instruments) and Japan. See "Plan of Distribution". Category 2 selling restrictions...

  • Page 109
    ... or replaced by the relevant Final Terms. 13 Phone: (212)924-5500 BNY Y59930 492.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 62704 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 13 Description...

  • Page 110
    ... lines and the transmission and distribution of natural gas. Electricity and gas utilities also typically use and generate in their operations hazardous and potentially hazardous products and by-products. In addition, there may be other aspects of National Grid's operations that are not currently...

  • Page 111
    ...operations depend on a number of factors relating to business performance including performance against regulatory targets, recovery of incurred expenditure and the delivery of anticipated costs and efficiency savings Earnings maintenance and growth from National Grid's regulated gas and electricity...

  • Page 112
    ... results of operations Changes in commodity prices could potentially impact on National Grid's energy delivery businesses. Current regulatory arrangements in the U.K. and U.S. provide the ability to pass through virtually all of the increased costs related to commodity prices to consumers. However...

  • Page 113
    ... they are not recoverable under its price controls or state rate plans, could adversely affect National Grid's results of operations. New or revised accounting standards, rules and interpretations by the U.K., U.S. or international accounting standard setting boards and other relevant bodies could...

  • Page 114
    ... NGET's control 18 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9391 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 18 Description: EXH 2(B).5.1 [E/O] EDGAR 2 *Y59930/497/1* Changes to the regulatory treatment of commodity costs may...

  • Page 115
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 37792 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 19 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 498.00.00.00 0/1 *Y59930/498/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 NGET is responsible for...

  • Page 116
    ... a significantly lower rate. Potential investors should consider reinvestment risk in light of other investments available at that time. 20 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 11903 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page...

  • Page 117
    ... longer the remaining term of the securities, the greater 21 Phone: (212)924-5500 BNY Y59930 500.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57289 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page...

  • Page 118
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 8940 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 22 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 501.00.00.00 0/1 *Y59930/501/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 the price volatility...

  • Page 119
    ... rate, currency or market risks, are designed for specific investment objectives or strategies or have been structured to meet the investment requirements of limited categories of investors. These types of Instruments generally would have a more limited secondary market and more price volatility...

  • Page 120
    ... OF NEW YORK Name: NATIONAL GRID CRC: 52480 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 24 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 503.00.00.00 0/1 *Y59930/503/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Instruments issued under the Programme may...

  • Page 121
    ... under any applicable risk-based capital or similar rules. 25 Phone: (212)924-5500 BNY Y59930 504.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9093 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page...

  • Page 122
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 26088 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 26 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 505.00.00.00 0/1 *Y59930/505/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 TERMS AND CONDITIONS OF...

  • Page 123
    ... OF NEW YORK Name: NATIONAL GRID CRC: 62797 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 27 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 506.00.00.00 0/1 *Y59930/506/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Economic Area or offered to the public in...

  • Page 124
    ... preceding Business Day 28 Phone: (212)924-5500 BNY Y59930 507.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7655 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 28 Description: EXH 2(B).5.1 [E/O] EDGAR 2 *Y59930/507/2* Operator: BNY99999T

  • Page 125
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 38353 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 29 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 508.00.00.00 0/1 *Y59930/508/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 or (d) the Preceding Business Day...

  • Page 126
    ... OF NEW YORK Name: NATIONAL GRID CRC: 19605 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 30 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 509.00.00.00 0/1 *Y59930/509/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 If the Reference Rate from time to time in...

  • Page 127
    ... Final Terms (either (x) generally, or (y) in relation to one or more Interest Accrual Periods), an adjustment 31 Phone: (212)924-5500 BNY Y59930 510.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 128
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28396 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 32 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 511.00.00.00 0/1 *Y59930/511/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 129
    ... TARGET System is operating (a "TARGET Business Day "); and/or 33 BNY Y59930 512.00.00.00 0/2 *Y59930/512/2* Operator: BNY99999T (b) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 24271 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 33...

  • Page 130
    ... day included in the Calculation Period, unless such number would be 31 and D 1 is greater than 29, in which case D 2 will be 30; 34 Phone: (212)924-5500 BNY Y59930 513.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22950 Y59930.SUB, DocName: EX...

  • Page 131
    ... (i) that day is the last day of February or (ii) such number would be 31, in which case D1 will be 30; and 35 Phone: (212)924-5500 BNY Y59930 514.00.00.00 0/1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41559 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page...

  • Page 132
    ...OF NEW YORK Name: NATIONAL GRID CRC: 6068 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 36 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 515.00.00.00 0/3 *Y59930/515/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 "D2" is the calendar day, expressed as a number...

  • Page 133
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54422 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 37 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 516.00.00.00 0/2 *Y59930/516/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 134
    ... Figure applicable to the first calendar day of 38 BNY Y59930 517.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 *Y59930/517/2* (ii) Operator: BNY99999T (iii) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 10054 Y59930.SUB, DocName: EX...

  • Page 135
    ...time the Index is changed by the substitution of a new base therefor, then with effect from the month from and including 39 Phone: (212)924-5500 BNY Y59930 518.00.00.00 0/2 4.2 4.3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33725 Y59930.SUB, DocName: EX...

  • Page 136
    ... Index Figure relating to the relevant month or relevant calculation month, as the case may be, is subsequently published while an Instrument is still outstanding, then: 40 Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 137
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41976 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 41 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 520.00.00.00 0/1 *Y59930/520/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (i) in relation to a payment...

  • Page 138
    ... measures available to it and the 42 Phone: (212)924-5500 BNY Y59930 521.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28490 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 42 Description: EXH...

  • Page 139
    ... and payable as provided in Condition 9, shall be the Final Redemption Amount unless otherwise specified in the relevant Final Terms. 43 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 1824 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 43...

  • Page 140
    ..., a Public Announcement shall be made and if, within the National Grid Restructuring Period, either: * Only applicable where National Grid is the Issuer. 44 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51564 Y59930.SUB, DocName: EX...

  • Page 141
    ... NEW YORK Name: NATIONAL GRID CRC: 52187 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 45 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 524.00.00.00 0/2 *Y59930/524/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (a) (b) (if at the time that the National Grid...

  • Page 142
    ... any share of operating profit of associates and joint ventures) determined in accordance with International Financial Reporting Standards ("IFRS") by reference to the Relevant Accounts; "Directors' Report" means a report prepared and signed by two directors of National Grid addressed to the...

  • Page 143
    ... Investors Service, Inc. and its successors or any rating agency substituted for either of them (or any permitted 47 Phone: (212)924-5500 BNY Y59930 526.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 144
    ... at the time of the Rating Downgrade); "Relevant Accounts " means the most recent annual audited consolidated financial accounts of National Grid and its Subsidiaries preceding the relevant sale, transfer, lease or other disposal or dispossession of any Disposed Asset; "Reporting Accountants" means...

  • Page 145
    ...Condition 5.6.1. * BNY Y59930 528.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/528/3* Only applicable where NGET is the Issuer. 49 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 40578 Y59930.SUB, DocName: EX...

  • Page 146
    ...the Electricity Transmission Licence other than such a modification which the Trustee, in its 50 BNY Y59930 529.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/529/2* (b) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 147
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60051 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 51 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 530.00.00.00 0/2 *Y59930/530/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 148
    ... (for the time being current) obtainable from the specified office of any Paying Agent (a "Put Notice ") and, in which the Instrumentholder may specify an account to which payment is to be made under this Condition 5.6 to the specified office of any Paying Agent on any business day falling within...

  • Page 149
    ...the TARGET System. 53 Phone: (212)924-5500 BNY Y59930 532.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T 6 Payments and Talons BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15112 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 53 Description...

  • Page 150
    ...Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 46008 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 54 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 533.00.00.00 0/1 *Y59930/533/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 6.2 Payments in the United States...

  • Page 151
    ... to be made by transfer to an account maintained with a bank in the relevant currency, on which 55 Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41014 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 55 Description: EXH...

  • Page 152
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20018 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 56 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 535.00.00.00 0/1 *Y59930/535/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 foreign exchange transactions may be...

  • Page 153
    ... a Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T * (c) BNY Y59930 536.00.00.00 0/3 Phone: (212)924-5500 *Y59930/536/3* Only applicable where National Grid is the Issuer. 57 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 55927 Y59930.SUB, DocName: EX...

  • Page 154
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28979 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 58 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 537.00.00.00 0/2 *Y59930/537/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 member of the National Grid Group...

  • Page 155
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 26591 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 59 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 538.00.00.00 0/1 *Y59930/538/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 156
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49344 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 60 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 539.00.00.00 0/1 *Y59930/539/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 157
    ... Proceedings in any number of jurisdictions. 61 Phone: (212)924-5500 BNY Y59930 540.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 31481 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 61...

  • Page 158
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6551 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 62 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 541.00.00.00 0/1 *Y59930/541/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUMMARY OF PROVISIONS RELATING...

  • Page 159
    ... with, the Conditions (which will be set out in the relevant Final Terms) relating to Partly Paid Instruments. 63 Phone: (212)924-5500 BNY Y59930 542.00.00.00 0/1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 39280 Y59930.SUB, DocName: EX-2.B.5.1, Doc...

  • Page 160
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54681 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 64 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 543.00.00.00 0/2 *Y59930/543/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 4 Delivery of...

  • Page 161
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 26835 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 65 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 544.00.00.00 0/1 *Y59930/544/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 162
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51699 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 66 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 545.00.00.00 0/1 *Y59930/545/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 163
    ... OF NEW YORK Name: NATIONAL GRID CRC: 60869 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 67 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 546.00.00.00 0/1 *Y59930/546/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 pay any instalment due on any Partly Paid...

  • Page 164
    ... identified use of proceeds, this will be stated in the applicable Final Terms. 68 Phone: (212)924-5500 BNY Y59930 547.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 65017 Y59930.SUB, DocName: EX...

  • Page 165
    ...National Grid's principal businesses are Transmission; Gas distribution; Electricity distribution; and Non-regulated businesses. BNY Y59930 548.00.00.00 0/2 Operator: BNY99999T The performance of these businesses are reported by National Grid by segment reflecting the management responsibilities...

  • Page 166
    ....00.00.00 0/2 Transmission - U.S. In the U.S., National Grid owns and operates an electricity transmission network of approximately 8,600 miles spanning upstate New York, Massachusetts, Rhode Island, New Hampshire and Vermont. Its U.S. transmission facilities operate at voltages ranging from 69 kV...

  • Page 167
    ...and daily operation of its U.K. gas distribution networks. It also manages the national emergency number for all of Great Britain's gas distribution networks. Gas Distribution - U.S. National Grid's gas distribution operations in New York and Rhode Island provide services to 571,000 customers in 216...

  • Page 168
    .../551/1* The transmission activities of each of National Grid's U.S. public utilities is regulated by the relevant state utility commission in the states in which it operates (including New York, Massachusetts, Rhode Island, Vermont, and New Hampshire) and by the Federal Energy Regulatory Commission...

  • Page 169
    ... these operate. In relation to gas distribution, the U.S. state utility commissions, amongst other things, set distribution service standards for the jurisdictional U.S. public utilities, set retail rates for end use customers, and determine the public utility company's potential levels of return on...

  • Page 170
    ...OF NEW YORK Name: NATIONAL GRID CRC: 16714 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 74 Description: EXH 2(B).5.1 [E/O] EDGAR 2 *Y59930/553/1* Ofgem has extended the current five-year gas distribution price controls for a further year through extension price control to cover the year ending...

  • Page 171
    ...held outside the National Grid Group. Senior Employee of BP plc Member of the management board of Deutsche Post. Director of Exel Limited and Samsonite Corporation. Member of the CBI Presidents' Committee, Member of the International Advisory Council of 75 Steven Holliday Date: 17-JUN-2008 03:10:51...

  • Page 172
    ...The Vitec Group plc. Director of BAe Systems plc, Non-Executive Director of SAAB AB and a member of the Financial Reporting Review Panel. The business address of each of the above is 1-3 Strand, London WC2N 5EH. There are no potential conflicts of interest between the duties to National Grid of the...

  • Page 173
    ... miles of high-voltage overhead lines, 420 miles of underground cables and 337 substations at 244 sites; develops the network to accommodate new connections and disconnections; and manages a programme of asset replacement and investment to ensure the long term reliability of the system. Phone: (212...

  • Page 174
    ... Grid Commercial Holdings Ltd, National Grid Holdings One plc, National Grid International Limited, Lattice Group plc, National Grid Insurance Company (Isle of Man) Ltd and The Association of Corporate Treasurers. Executive Director of National Grid plc, Director of National Grid Gas Holdings plc...

  • Page 175
    ... an investment grade issuer credit rating; 79 • • • Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57213 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 79 Description: EXH 2(B).5.1 [E/O] EDGAR 2 *Y59930/558/1* The Transmission...

  • Page 176
    ...continues to work with the U.K. Government and Ofgem to make possible the necessary investments in the electricity transmission network to support the development of renewable energy projects. In addition to the increase in capital investment allowances agreed in the transmission price control, NGET...

  • Page 177
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7933 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 81 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 560.00.00.00 0/1 *Y59930/560/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 UNITED KINGDOM TAXATION...

  • Page 178
    ... relating to such payments. *Y59930/561/3* See paragraph 4.5 of HM Revenue & Custom's Section 18 Guidance Notes. (http://www.hmrc.gov.uk/esd-guidance/s18-guidance-note-07.pdf). 82 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 179
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58241 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 83 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 562.00.00.00 0/1 *Y59930/562/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Also, a number of...

  • Page 180
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 23137 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 84 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 563.00.00.00 0/3 *Y59930/563/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 PLAN OF DISTRIBUTION...

  • Page 181
    ..., holding, managing or disposing of investments (as principal or as agent) for the purposes of their businesses or who it is reasonable to expect 85 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60732 Y59930.SUB, DocName: EX-2.B.5.1, Doc...

  • Page 182
    ... YORK Name: NATIONAL GRID CRC: 13075 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 86 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 565.00.00.00 0/2 *Y59930/565/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 will acquire, hold, manage or dispose of investments...

  • Page 183
    ... completing the Final Terms. Final Terms dated [•] [NATIONAL GRID PLC/NATIONAL GRID ELECTRICITY TRANSMISSION PLC]* Issue of [Aggregate Nominal Amount of Tranche] [Title of Instruments] under the Euro 15,000,000,000 Euro Medium Term Note Programme PART A - CONTRACTUAL TERMS Terms used herein shall...

  • Page 184
    ... Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 567.00.00.00 0/6 *Y59930/567/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 1. (i) 2. (i) (ii) Issuer: Series Number: Tranche Number: [National Grid plc/National Grid Electricity Transmission plc]†[ [ ] ] (If...

  • Page 185
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 39615 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 89 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 568.00.00.00 0/6 *Y59930/568/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 186
    ...Reference Rate: - Interest Determination Date(s): Phone: (212)924-5500 Operator: BNY99999T [ ] [[ ][TARGET] Business Days in [specify city] for [specify currency] prior to [the first day in each Interest Accrual 90 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 187
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 29174 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 91 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 570.00.00.00 0/4 *Y59930/570/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Period/each Interest Payment Date...

  • Page 188
    .../571/2* Operator: BNY99999T (xii) Business Centre(s) (Condition 3.2.5): (xiii) Maximum Indexation Factor: (xiv) Limited Indexation [Not Applicable/specify ] [ ] per cent per annum 92 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 24091...

  • Page 189
    ... cent. ] Operator: BNY99999T (ii) [ Party responsible for calculating the Residual Holding Redemption Amount (if not the Calculation Agent): Phone: (212)924-5500 93 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33800 Y59930.SUB, DocName: EX-2.B.5.1, Doc...

  • Page 190
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 59552 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 94 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 573.00.00.00 0/4 *Y59930/573/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 191
    ... for taxation reasons (Condition 5.2) or on Event of Default (Condition 9) or other early ] *Y59930/574/2* Operator: BNY99999T Phone: (212)924-5500 95 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 62203 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 95...

  • Page 192
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61411 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 96 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 575.00.00.00 0/4 *Y59930/575/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 193
    ...pursuant to the Euro Medium Term Note Programme of National Grid plc and National Grid Electricity Transmission plc.] 97 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 8760 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 97 Description: EXH...

  • Page 194
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44253 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 98 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 577.00.00.00 0/2 *Y59930/577/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 RESPONSIBILITY The...

  • Page 195
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 25558 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 99 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 578.00.00.00 0/5 *Y59930/578/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 196
    ...Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54228 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 100 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 579.00.00.00 0/5 *Y59930/579/5* Operator: BNY99999T Date: 17-JUN-2008... to fund all proposed uses state amount and sources of ...

  • Page 197
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57644 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 101 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 580.00.00.00 0/6 *Y59930/580/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR ...

  • Page 198
    ... in accordance with Condition 11.1: [Not Applicable/give details] 102 Phone: (212)924-5500 BNY Y59930 581.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 948 Y59930.SUB, DocName: EX-2.B.5.1, Doc...

  • Page 199
    ... relating thereto. The relevant Final Terms shall specify any other clearing system(s) as shall 103 5. Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924-5500 6. BNY Y59930 582.00.00.00 0/1 7. 8. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 200
    ... in the section entitled "Description of National Grid Electricity Transmission plc - Recent Developments" on page 80, there has been no significant change in the financial or trading position of NGET or the NGET Group since 31 March 2007 and no material adverse change in the prospects of NGET since...

  • Page 201
    ... News Service operated by the London Stock Exchange at www.londonstockexchange.com/en-gb/pricesnews/marketnews . 105 Phone: (212)924-5500 BNY Y59930 584.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 202
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 43206 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 106 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 585.00.00.00 0/1 *Y59930/585/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 REGISTERED OFFICE OF...

  • Page 203
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 34313 Y59930.SUB, DocName: EX-2.B.5.1, Doc: 4, Page: 107 Description: EXH 2(B).5.1 Phone: (212)924-5500 [E/O] BNY Y59930 586.00.00.00 0/1 *Y59930/586/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR ...

  • Page 204
    ... Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.5.2, Doc: 5 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/5* DOCHDR 5 Date: 17-JUN-2008 03:10:51.35 EX-2.B.5.2 y59930exv2wbw5w2.htm EX...

  • Page 205
    ... Grid plc and National Grid Electricity Transmission plc (together, the "Issuers"), constitutes a supplementary prospectus for the purposes of Section 87G of the Financial Services and Markets Act 2000 (the "FSMA "). This Supplement is prepared in connection with the Euro Medium Term Note Programme...

  • Page 206
    ... Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/6* DOCHDR 6 Date: 17-JUN-2008 03:10:51.35 EX-2.B.6.1 y59930exv2wbw6w1.htm EX...

  • Page 207
    ....00.00.00 0/5 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Programme Arranger and Dealer HSBC The date of this Prospectus is 3 December 2007 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 1424 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 208
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13701 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 2 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 606.00.00.00 0/1 *Y59930/606/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 IMPORTANT NOTICES...

  • Page 209
    ... Manager(s) in accordance with all applicable laws and rules. 3 Phone: (212)924-5500 BNY Y59930 607.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9146 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 210
    ... OVERVIEW OF THE PROGRAMME RISK FACTORS TERMS AND CONDITIONS OF THE INSTRUMENTS SUMMARY OF PROVISIONS RELATING TO THE INSTRUMENTS WHILE IN GLOBAL FORM USE OF PROCEEDS DESCRIPTION OF NATIONAL GRID USA TAXATION PLAN OF DISTRIBUTION FORM OF FINAL TERMS GENERAL INFORMATION Date: 17-JUN-2008 03:10:51...

  • Page 211
    ...BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7338 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 5 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 609.00.00.00 0/1 *Y59930/609/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUPPLEMENTAL PROSPECTUS If at any time the...

  • Page 212
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21906 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 6 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 610.00.00.00 0/2 *Y59930/610/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 OVERVIEW OF THE PROGRAMME The following...

  • Page 213
    ... 7 Initial Delivery of Instruments Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T Currencies BNY Y59930 611.00.00.00 0/2 Maturities BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6058 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page...

  • Page 214
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49647 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 8 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 612.00.00.00 0/3 *Y59930/612/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 businesses or...

  • Page 215
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 42664 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 9 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 613.00.00.00 0/2 *Y59930/613/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 216
    ... to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. United States, United Kingdom, European Economic Area (in the case of unlisted Instruments) and Japan. See "Plan of Distribution". Category 3 selling restrictions...

  • Page 217
    ...OF NEW YORK Name: NATIONAL GRID CRC: 35266 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 11 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 615.00.00.00 0/2 *Y59930/615/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Terms and Conditions The Terms and Conditions...

  • Page 218
    ... of gas. Electricity and gas utilities also typically use and generate in their operations hazardous and potentially hazardous products and by-products. In addition, there may be other aspects of the Group's operations that are not 12 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name...

  • Page 219
    ... Group's regulated gas and electricity businesses will be affected by its ability to meet or better efficiency targets set by or agreed with regulators, including, but 13 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6043 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 220
    ... the Group's financial exposure related to commodity price fluctuations, the Group's energy delivery businesses routinely enter into contracts to hedge a portion of its purchase and sale commitments, weather fluctuations, electricity sales, gas supply and other commodities. In addition, current...

  • Page 221
    ... in the electric services segment from two customers: the Long Island Power Authority ("LIPA ") and the New York Independent System Operator ("NYISO"). The Issuer's KeySpan businesses manage LIPA's transmission and distribution system and supply the majority of LIPA's customers' electricity needs...

  • Page 222
    ...economic conditions having an impact on supply and demand as well as other related risks; risks related to available sources and cost of fuel; and 16 Operator: BNY99999T Phone: (212)924-5500 (ii) (iii) (iv) (v) BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 223
    ... OF NEW YORK Name: NATIONAL GRID CRC: 34157 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 17 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 621.00.00.00 0/1 *Y59930/621/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (vi) risks related to certain Federal Energy...

  • Page 224
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7446 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 18 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 622.00.00.00 0/1 *Y59930/622/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 225
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58434 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 19 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 623.00.00.00 0/1 *Y59930/623/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Partly-paid Instruments...

  • Page 226
    ... have a more limited secondary market and more price volatility than conventional debt securities. Illiquidity may have a severely adverse effect on the market value of Instruments. 20 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 55252 Y59930.SUB, DocName: EX...

  • Page 227
    ... the value of the Instruments. A credit rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn by the rating agency at any time. 21 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 45046 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 228
    ...under any applicable risk-based capital or similar rules. 22 Phone: (212)924-5500 BNY Y59930 626.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 11286 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page...

  • Page 229
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 1609 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 23 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 627.00.00.00 0/1 *Y59930/627/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 TERMS AND CONDITIONS OF...

  • Page 230
    ...in on any stock exchange. 24 Phone: (212)924-5500 BNY Y59930 628.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27649 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 24 Description: EXH 2(B).6.1 [E/O] EDGAR 2 *Y59930/628/2* Operator: BNY99999T

  • Page 231
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48277 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 25 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 629.00.00.00 0/1 *Y59930/629/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 232
    ...or more of the Reference Banks provide the Calculation 26 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 19534 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 26 Description: EXH 2(B).6.1 [E/O] EDGAR 2 *Y59930/630/1* Operator: BNY99999T

  • Page 233
    ...in the manner specified in the relevant Final Terms. 27 Phone: (212)924-5500 Operator: BNY99999T 3.4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12288 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 27 Description: EXH 2(B).6.1 [E/O] EDGAR 2 *Y59930/631...

  • Page 234
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22857 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 28 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 632.00.00.00 0/1 *Y59930/632/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 3.5 Partly Paid Instruments In the...

  • Page 235
    ...exchange markets settle payments in the principal financial centre for such currency; and/or in the case of Euro, a day on which the TARGET System is operating (a "TARGET Business Day "); and/or 29 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 236
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 18940 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 30 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 634.00.00.00 0/2 *Y59930/634/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 237
    ...OF NEW YORK Name: NATIONAL GRID CRC: 17416 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 31 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 635.00.00.00 0/1 *Y59930/635/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 where: "Y1" is the year, expressed as a number...

  • Page 238
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 47095 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 32 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 636.00.00.00 0/2 *Y59930/636/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (A) the actual number of days...

  • Page 239
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13087 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 33 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 637.00.00.00 0/3 *Y59930/637/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 240
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 34014 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 34 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 638.00.00.00 0/2 *Y59930/638/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 4 Redemption, Purchase and...

  • Page 241
    ... in the relevant Final Terms), redeem, or exercise any 35 BNY Y59930 639.00.00.00 0/1 *Y59930/639/1* Operator: BNY99999T Phone: (212)924-5500 4.5.2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 30916 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 35...

  • Page 242
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 55574 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 36 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 640.00.00.00 0/1 *Y59930/640/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Issuer's option in relation to, all...

  • Page 243
    ... relevant stock exchange or other relevant authority and (e) to the extent 37 Phone: (212)924-5500 BNY Y59930 641.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T 5.4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33094 Y59930.SUB, DocName: EX...

  • Page 244
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 36274 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 38 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 642.00.00.00 0/1 *Y59930/642/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 245
    ...Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 35070 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 39 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 643.00.00.00 0/1 *Y59930/643/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 5.6 Non-business days If any date...

  • Page 246
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21487 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 40 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 644.00.00.00 0/1 *Y59930/644/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 247
    ... " means KeySpan Corporation, KeySpan Energy Delivery New York, KeySpan Energy Delivery Long Island, Niagara Mohawk Power Corporation and New England Power Company, and includes any successor entity thereto or any member of the group of companies comprising National Grid USA and each of its...

  • Page 248
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61288 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 42 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 646.00.00.00 0/1 *Y59930/646/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 249
    ...No person shall have any right to enforce any term or condition of the Instruments under the Contracts (Rights of Third Parties) Act 1999. 43 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 40762 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 43 Description: EXH...

  • Page 250
    ... the right to serve process in any other manner permitted by law. 44 Phone: (212)924-5500 BNY Y59930 648.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 53191 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 251
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22896 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 45 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 649.00.00.00 0/2 *Y59930/649/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUMMARY OF PROVISIONS RELATING...

  • Page 252
    ...OF NEW YORK Name: NATIONAL GRID CRC: 38258 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 46 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 650.00.00.00 0/2 *Y59930/650/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 document may comprise any form of statement or...

  • Page 253
    ...) and five years (in the case of interest) from the appropriate Relevant Date (as defined in Condition 6). 47 Phone: (212)924-5500 BNY Y59930 651.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 254
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 3137 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 48 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 652.00.00.00 0/1 *Y59930/652/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 255
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 3753 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 49 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 653.00.00.00 0/1 *Y59930/653/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 15 Trustee's Powers In...

  • Page 256
    ... identified use of proceeds, this will be stated in the applicable Final Terms. 50 Phone: (212)924-5500 BNY Y59930 654.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 59847 Y59930.SUB, DocName: EX...

  • Page 257
    ... generating facilities in New York State and has interests in electricity interconnectors in the United States. Business overview Principal activities and markets National Grid USA's principal businesses are: Date: 17-JUN-2008 03:10:51.35 Electricity Transmission; Gas distribution; Electricity...

  • Page 258
    ... of electricity and gas, National Grid USA's KeySpan affiliates (i) manage the electric transmission and distribution system in Long Island, New York owned by the Long Island Power Authority ("LIPA "); (ii) provide generating capacity and, to the extent required, energy conversion services for...

  • Page 259
    ...and switching operations. The Issuer works closely with the ISOs in New England and New York to support efficient market and network operations and transmission investment. Gas Distribution National Grid USA's gas distribution businesses in upstate New York, Massachusetts, and Rhode Island, prior to...

  • Page 260
    ...Date: 17-JUN-2008 03:10:51.35 EDGAR 2 by the Issuer's gas distribution companies. The majority of gas supplied to customers in the United States is still sold by local regulated utilities to their customers. Regulated utilities, such as National Grid USA's gas distribution operations, purchase gas...

  • Page 261
    ... States and United States stranded cost recoveries. Phone: (212)924-5500 BNY Y59930 659.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T • • National Grid USA's electricity distribution system operates in upstate New York through NMPC and in Massachusetts, Rhode Island and New...

  • Page 262
    ...distribution business, excluding KeySpan's management and operation of LIPA described below, serves approximately 3.4 million electricity customers over a network of 71,000 circuit miles in New England and New York. National Grid USA's primary business drivers are the long-term rate plans with state...

  • Page 263
    ... Operator: BNY99999T KeySpan subsidiaries that provide energy-related services to customers located primarily within the northeast of the United States, with concentrations in the New York City and Boston metropolitan areas. These subsidiaries provide residential and small commercial customers with...

  • Page 264
    ... new transmission and generation facilities may cause significant changes to the market for sales of capacity, energy and ancillary services from the Issuer's Ravenswood Generating Station. The Issuer's Keyspan subsidiary also operates and maintains a 55 MW gas turbine unit in Greenport, Long Island...

  • Page 265
    ... in the states in which the Issuer operates (including New York, Massachusetts, Rhode Island, Vermont, and New Hampshire) and by the FERC. In relation to electricity transmission, the FERC, amongst other things, sets service standards for the transmission business of the Issuer's public utilities...

  • Page 266
    ... business is collected from transmission customers, including the Issuer's electricity distribution businesses, pursuant to tariffs approved by state utility commissions and by the FERC. In New York, NMPC operates under a long term rate plan expiring in 2011 with a 50 per cent. synergy sharing...

  • Page 267
    ... be shared between gas sales customers and the KeySpan companies over the rate plan period. Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BNY Y59930 665.00.00.00 0/2 *Y59930/665/2* The Issuer owns the Ravenswood Facility, which operates in the New York City wholesale electricity market. The...

  • Page 268
    ...'s weighted-average cost of capital. BNY Y59930 666.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/666/2* 62 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 3445 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page...

  • Page 269
    ... programme. Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924-5500 National Grid USA's Keyspan New Hampshire gas distribution utility company base rates continue as set by the NHPUC in 1993. Market and Regulatory developments The recovery of historical investments and costs...

  • Page 270
    ..., the merchant electricity generation business in New York City and the communications operations were classified as discontinued operations in the interim financial statements of National Grid plc for the six months ended 30 September 2007. The revenues relating to these operations were U.S.$903m...

  • Page 271
    ... the National Grid/KeySpan New York Public Service Commission merger order dated 17 September 2007 and is treated as discontinued operations for the purposes of the Issuer's financial reporting. The energy services segment includes companies that provide energy-related services to customers located...

  • Page 272
    ... (Holdings) Limited and Britned Development Limited William Edwards Director of the New York State Energy Research & Development Authority Phone: (212)924-5500 Steve Holliday Non-Executive Director of Marks and 66 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 273
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Name Principal activities outside National Grid USA and the National Grid Group* Business Address Spencers Group plc London WC2N 5EH United Kingdom 25 Research Drive Westborough MA 01582 United States 25 Research Drive Westborough MA 01582 United States...

  • Page 274
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 17620 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 68 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 672.00.00.00 0/1 *Y59930/672/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 TAXATION United States...

  • Page 275
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 24228 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 69 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 673.00.00.00 0/1 *Y59930/673/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 276
    ...connected with the conduct of a United States trade or business for a specified three-year period, or (iv) a foreign partnership, if at any time during its tax year, one or more of its partners are U.S. persons who, in the aggregate, hold more than 50 per cent. of the partnership's income or capital...

  • Page 277
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41287 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 71 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 675.00.00.00 0/1 *Y59930/675/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 PLAN OF DISTRIBUTION...

  • Page 278
    ... NEW YORK Name: NATIONAL GRID CRC: 3903 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 72 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 676.00.00.00 0/1 *Y59930/676/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 completed by the Final Terms in relation thereto...

  • Page 279
    ... Final Terms and neither the Issuer nor any other Dealer shall have responsibility for such material. BNY Y59930 677.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12574 Y59930.SUB, DocName: EX...

  • Page 280
    ... BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 35246 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 74 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 678.00.00.00 0/3 *Y59930/678/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 FORM OF FINAL TERMS The Final Terms in...

  • Page 281
    ... 12. Phone: (212)924-5500 13. (i) (ii) Status of the Instruments: Date [Board] approval for issuance of Instruments obtained: 14. Method of distribution: PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9041...

  • Page 282
    ... from Interest Payment Date) [ ] (vii) (viii) Phone: (212)924-5500 (ix) [ ] EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49959 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 76 Description: EXH 2(B).6.1 - [[ ][TARGET] Business Days in [specify...

  • Page 283
    ... by reference to Rate of Exchange impossible or impracticable: Person at whose option Specified Currency(ies) is/are payable: Day Count Fraction (Condition 3.11): (iii) [ ] EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48583 Y59930.SUB, DocName: EX...

  • Page 284
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54153 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 78 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 682.00.00.00 0/5 *Y59930/682/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Redemption Residual Holding Amount (if...

  • Page 285
    ... item relates to the date and place of payment, and not interest period end dates, to which item 16 (iv) relates ] [D Rules/Not Applicable] [Yes/No. If yes, give details] BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 46939 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 286
    ...Additional selling restrictions: Phone: (212)924-5500 [PURPOSE OF FINAL TERMS These Final Terms comprise the final terms required to list and have admitted to trading the issue of Instruments described herein pursuant to the Euro Medium Term Note Programme of National Grid USA.] RESPONSIBILITY The...

  • Page 287
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 38067 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 81 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 685.00.00.00 0/3 *Y59930/685/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 288
    ... uses state ...Phone: (212)924-5500 *Y59930/686/4* Operator: BNY99999T [Not Applicable/give name(s) and number(s) [and address(es)]] Delivery [against/free of] payment [ ] EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 5271 Y59930.SUB, DocName: EX...

  • Page 289
    ... Condition 10.1: [Not Applicable/[[Euro]][•]] [Not Applicable/give details] 83 Phone: (212)924-5500 BNY Y59930 687.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 38282 Y59930.SUB, DocName: EX...

  • Page 290
    ... usual business hours on any weekday (Saturdays, 84 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924-5500 5. BNY Y59930 688.00.00.00 0/1 7. 8. 9. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33372 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 291
    ... News Service operated by the London Stock Exchange at www.londonstockexchange.com/en-gb/pricesnews/marketnews . 85 Phone: (212)924-5500 BNY Y59930 689.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 292
    ... generally accepted in the United States of America. F-1 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 690.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58880 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 86...

  • Page 293
    .../691/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Report of Independent Registered Public Accounting Firm To the Stockholder and Board of Directors of National Grid USA: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income...

  • Page 294
    ...Date: 17-JUN-2008 03:10:51.35 EDGAR 2 NATIONAL GRID USA AND SUBSIDIARY COMPANIES Consolidated Statements of Income (In thousands of dollars) For the years ended March 31, 2007 2006 BNY Y59930 692.00.00.00 0/2 *Y59930/692/2* Operator: BNY99999T Operating revenues: Electric Gas Total operating...

  • Page 295
    ... notes are an integral part of these consolidated financial statements. F-4 Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 23013 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 89 Description: EXH 2(B).6.1 [E/O] EDGAR...

  • Page 296
    ...EDGAR 2 NATIONAL GRID USA AND SUBSIDIARY COMPANIES Consolidated Balance Sheets (In thousands of dollars) March 31, 2007 2006 BNY Y59930 694.00.00.00 0/2 *Y59930/694/2* Operator: BNY99999T ASSETS Utility plant, at original cost: Electric plant Gas plant Common plant Construction work-in-process...

  • Page 297
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 NATIONAL GRID USA AND SUBSIDIARY COMPANIES Consolidated Balance Sheets (In thousands of dollars) March 31, 2007 CAPITALIZATION AND LIABILITIES Capitalization: Common stockholder's equity: Common stock ($.10 par value) Authorized - 3,000 shares Issued...

  • Page 298
    ...SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61854 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 92 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 696.00.00.00 0/1 *Y59930/696/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Purchased power obligations...

  • Page 299
    ... costs and rate plan deferrals Provision for deferred federal and state income taxes and investment tax credits, net Net operating activities from discontinued operations Changes in operating assets and liabilities: Accounts receivable, net Materials and supplies Prepaids and other current assets...

  • Page 300
    ...NEW YORK Name: NATIONAL GRID CRC: 20582 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 94 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 698.00.00.00 0/4 *Y59930/698/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Capital contribution from parent for Rhode Island...

  • Page 301
    ...National Grid plc. The Company's electricity and gas distribution subsidiaries serve approximately 4.1 million customers in New York State, Massachusetts, Rhode Island and New Hampshire. The Company's transmission subsidiaries provide electricity transmission in New York through Niagara Mohawk Power...

  • Page 302
    ... purchases, transmission service and contract termination charges (CTCs). The Company recognizes changes in unbilled revenues in its results of operations with the exception of Niagara Mohawk's unbilled gas revenue. Pursuant to Niagara Mohawk's 2000 multi-year gas settlement (which ended December...

  • Page 303
    ... NEW YORK Name: NATIONAL GRID CRC: 25389 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 97 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 701.00.00.00 0/1 *Y59930/701/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 interest and equity costs of capital funds used...

  • Page 304
    ...:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 702.00.00.00 0/2 *Y59930/702/2* SFAS No. 123R In December 2004, the FASB issued SFAS No. 123R, "Share-Based Payment." SFAS No. 123R addresses the accounting for transactions in which a company receives employee services in exchange for...

  • Page 305
    ... year financial statements for immaterial errors would not require previously filed reports to be amended. The new standard had no impact on the Company's consolidated financial statements. F-14 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 306
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33423 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 100 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 704.00.00.00 0/2 *Y59930/704/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR ...

  • Page 307
    ...and distribution of electricity and were encouraged to dispose of generation assets such as power plants. The net unrecovered costs from the sale of these generation assets, along with the costs to terminate, restate or amend existing purchase power contracts were deferred for recovery in rates over...

  • Page 308
    ... premium that was approved for new investment. BNY Y59930 706.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T *Y59930/706/2* Niagara Mohawk Under its Merger Rate Plan (MRP) for electric rates, the Company is authorized to recover actual amounts deferred...

  • Page 309
    ... of Public Utilities (DPU). In March 2000, the DPU approved a long-term rate plan for the Company, which became effective on May 1, 2000. As part of the rate plan, the Company F-18 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12855 Y59930.SUB, DocName: EX...

  • Page 310
    ... its customers. Phone: (212)924-5500 BNY Y59930 708.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T The Narragansett Electric Company Electric segment: In Rhode Island, Narragansett Electric's distribution rates are governed by a long-term rate plan. Under its rate plan, effective...

  • Page 311
    ... acquisition, National Grid agreed to honour the provisions of the former New England Gas Company rate settlement and committed to file a new rate plan within one year of the acquisition date. Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924-5500 Granite State Electric Company In...

  • Page 312
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 14955 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 106 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 710.00.00.00 0/4 *Y59930/710/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 condition or...

  • Page 313
    ... OF NEW YORK Name: NATIONAL GRID CRC: 44091 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 107 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 711.00.00.00 0/2 *Y59930/711/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 reduce the decommissioning and other costs...

  • Page 314
    ... the electricity from other independent power producers (IPPs) other utilities, other energy merchants or the open market through the New York Independent System Operator (NYISO) or the New England Independent System Operator (ISO - NE) at market prices. Date: 17-JUN-2008 03:10:51.35 Gas Supply...

  • Page 315
    ... Company is currently in the second year of a five-year Reliability Enhancement Program, to improve performance and reliability, which will result in increased capital expenditures. Legal Matters by Entity Niagara Mohawk Station Service Cases: A number of generators complained or withheld payments...

  • Page 316
    ... of its obligations to NEP, and has informed the Company that the process could take a year to complete. F-25 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20479 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 110 Description: EXH 2(B).6.1 [E/O] EDGAR...

  • Page 317
    ... OF NEW YORK Name: NATIONAL GRID CRC: 63060 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 111 Description: EXH 2(B).6.1 [E/O] EDGAR 2 *Y59930/715/3* In the normal course of business, the Company is a party to derivative financial instruments (derivatives) that are principally used to manage...

  • Page 318
    ... swap contracts for the fiscal years 2008 through 2009 and thereafter, subject to changes in market prices and indexing provisions: Year Ended March 31, Projected Payment (In thousands of dollars) 2008 2009 Thereafter $ 221,540 46,500 - $ 268,040 Niagara Mohawk uses NYMEX gas futures to hedge the...

  • Page 319
    ... cash balance pension plan design. Under that design, pay-based credits are applied based on service time, and interest credits are applied based on F-28 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 54779 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 113...

  • Page 320
    ... the long-term cost of operating the Plans, with a reasonable level of risk. Risk tolerance is determined as a result of a periodic asset/liability study F-29 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 63314 Y59930.SUB, DocName: EX...

  • Page 321
    ... management and rebalancing of both equity and fixed income. The rates of return for each asset class are then weighted in accordance with the plans' target asset allocation, and the resulting long-term return on asset rate is then applied to the market-related value of assets. Assumptions Used...

  • Page 322
    ... return on plan assets Amortization of unrecognized prior service cost F-31 *Y59930/720/2* $ 55,351 163,067 (174,537) 4,913 $ 55,412 155,779 (161,944) 4,913 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32995 Y59930.SUB, DocName: EX...

  • Page 323
    ... Phone: (212)924-5500 Note: * On August 24, 2006, the Company acquired the Rhode Island gas distribution assets of New England Gas Company from Southern Union Company. In connection with this acquisition, four small pension plans merged with the existing pension plan, resulting in an increase...

  • Page 324
    ...to other comprehensive income, certain Company F-33 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12657 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 118 Description: EXH 2(B).6.1 [E/O] EDGAR 2 *Y59930/722/2* 2008 2009 2010 2011 2012...

  • Page 325
    ... Company's total net periodic benefit cost of PBOPs for the fiscal years ended March 31, 2007 and 2006 included the following components: 2007 (In thousands) 2006 Date: 17-JUN-2008 03:10:51.35 Service cost Interest cost Expected return on plan assets Amortization of prior service cost Amortization...

  • Page 326
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 2007 (In thousands) 2006 Actual return on plan assets Company contributions Benefits paid Acquisition of Rhode Island gas PBOP assets* Fair value of plan assets at end of period Funded status Unrecognized actuarial loss Unrecognized prior service cost...

  • Page 327
    ...: For the Year Ended March 31, 2007 (In thousands) *Y59930/725/3* Operator: BNY99999T 2006 Current income taxes F-36 $ 75,463 $ 282,320 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22625 Y59930.SUB, DocName: EX-2.B.6.1, Doc...

  • Page 328
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50575 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 122 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 726.00.00.00 0/4 *Y59930/726/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 For the Year Ended March...

  • Page 329
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 38513 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 123 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 727.00.00.00 0/2 *Y59930/727/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 For the Year ended March...

  • Page 330
    ... BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 The Company and other related subsidiaries participate with National Grid Holdings, Inc. (NGHI), a wholly owned subsidiary of National Grid plc, in filing consolidated US federal income tax returns. The Company's tax provisions and tax accounts are...

  • Page 331
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21989 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 125 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 729.00.00.00 0/1 *Y59930/729/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR ...

  • Page 332
    ... the New York State Energy Research and Development Authority (NYSERDA). Approximately $575 million of such securities bear interest at shortterm adjustable interest rates (with an option to convert to other rates, including a fixed interest rate) which averaged 3.41 percent for the year ended March...

  • Page 333
    ... (now known as Massachusetts Development Finance Agency) (4) BFA - Business Finance Authority of the State of New Hampshire F-42 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21540 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 127...

  • Page 334
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 39333 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 128 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 732.00.00.00 0/1 *Y59930/732/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Nantucket Electric Series Rate...

  • Page 335
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50211 Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 129 Description: EXH 2(B).6.1 Phone: (212)924-5500 [E/O] BNY Y59930 733.00.00.00 0/2 *Y59930/733/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Fiscal Year Amount...

  • Page 336
    ... northeast US, serving 2.6 million customers in New York, Massachusetts and New Hampshire. KeySpan also operates an electricity transmission and distribution network serving 1.1 million customers in New York under a long-term contract with the Long Island Power Authority. KeySpan's other interests...

  • Page 337
    ... area in Rhode Island. This strong overlap is expected to create opportunities for savings. The rates for the Rhode Island gas distribution business are set by the same state regulators that set the Company's electricity distribution rates in Rhode Island. The acquisition was accounted for using...

  • Page 338
    ... National Grid Wireless (Wireless), a subsidiary of the Company, owns, operates and manages towers and other communications structures. Wireless also manages a fibre optic telecommunications system in the Northeastern United States. As part of the Company's strategy of focusing on energy markets...

  • Page 339
    ... approved a stock repurchase of 56 shares at a price of $13 million per share to be made on June 27, 2007. F-48 Phone: (212)924-5500 BNY Y59930 737.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 340
    ...00 0/2 *Y59930/738/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 REGISTERED OFFICE OF THE ISSUER National Grid USA 25 Research Drive Westborough MA 01582 United States of America THE ARRANGER AND DEALER HSBC Bank plc 8 Canada Square London E14 5HQ United Kingdom LEGAL ADVISERS To...

  • Page 341
    ... Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.6.2, Doc: 7 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/7* DOCHDR 7 Date: 17-JUN-2008 03:10:51.35 EX-2.B.6.2 y59930exv2wbw6w2.htm EX...

  • Page 342
    ... 87G of the Financial Services and Markets Act 2000 (the "FSMA "). This Supplement is prepared in connection with the Euro Medium Term Note Programme (the "Programme") established by National Grid USA (the "Issuer"). Terms defined in the Prospectus have the same meaning when used in this Supplement...

  • Page 343
    ...Lines: * CRC: * Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/8* DOCHDR 8 Date: 17-JUN-2008 03:10:51.35 EX-2.B.7.1 y59930exv2wbw7w1.htm EX-2.B.7.1: PROSPECTUS ISSUED BY NATIONAL GRID GAS PLC

  • Page 344
    ... for the Programme HSBC The Dealers HSBC MIZUHO INTERNATIONAL PLC THE ROYAL BANK OF SCOTLAND BARCLAYS CAPITAL Phone: (212)924-5500 DEUTSCHE BANK JPMORGAN CAZENOVE The date of this Prospectus is 26 February 2008 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 345
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 31029 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 2 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 756.00.00.00 0/2 *Y59930/756/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 IMPORTANT NOTICES...

  • Page 346
    ... date of the relevant Tranche and 60 days after the date of the allotment of the 3 Phone: (212)924-5500 BNY Y59930 757.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50994 Y59930.SUB, DocName: EX...

  • Page 347
    ... Manager(s)) in accordance with all applicable laws and rules. 4 Phone: (212)924-5500 BNY Y59930 758.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 16882 Y59930.SUB, DocName: EX-2.B.7.1, Doc...

  • Page 348
    ... PROVISIONS RELATING TO THE INSTRUMENTS WHILE IN GLOBAL FORM USE OF PROCEEDS DESCRIPTION OF NATIONAL GRID GAS plc DESCRIPTION OF NATIONAL GRID GAS FINANCE (NO 1) plc Date: 17-JUN-2008 03:10:51.35 6 7 8 14 22 47 52 53 59 60 61 64 67 77 79 5 DESCRIPTION OF THE GUARANTEE UNITED KINGDOM TAXATION PLAN...

  • Page 349
    .../760/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 DOCUMENTS INCORPORATED BY REFERENCE The National Grid Gas Base Prospectus should be read and construed in conjunction with the audited consolidated annual financial statements of National Grid Gas for the financial years ended 31...

  • Page 350
    ... OF NEW YORK Name: NATIONAL GRID CRC: 21378 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 7 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 761.00.00.00 0/1 *Y59930/761/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUPPLEMENTAL PROSPECTUS If at any time any...

  • Page 351
    ... Phone: (212)924-5500 [E/O] BNY Y59930 762.00.00.00 0/4 *Y59930/762/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 OVERVIEW OF THE PROGRAMME The following overview is qualified in its entirety by the remainder of this Prospectus. Issuers National Grid Gas plc (registered number...

  • Page 352
    ... one year from 9 Form of Instruments Clearing Systems Initial Delivery of Instruments Phone: (212)924-5500 BNY Y59930 763.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Currencies Maturities BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 353
    ... Final Terms. 10 Fixed Rate Instruments Floating Rate Instruments Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T Phone: (212)924-5500 BNY Y59930 764.00.00.00 0/1 Zero Coupon Instruments Dual Currency Instruments BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 354
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12777 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 11 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 765.00.00.00 0/4 *Y59930/765/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 355
    ...buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. United States, United Kingdom, Public Offer Selling Restriction under the Prospectus Directive (in the case of unlisted Instruments) and Japan. See "Plan of Distribution...

  • Page 356
    ... or replaced by the relevant Final Terms. 13 Phone: (212)924-5500 BNY Y59930 767.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12453 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 13 Description...

  • Page 357
    ... investors should also read the detailed information set out elsewhere in this Prospectus (including any documents deemed to be incorporated by reference herein) and reach their own views prior to making any investment decision. Risks relating to National Grid Gas plc and its business Changes...

  • Page 358
    ... on the results of operations Changes in commodity prices could potentially impact on National Grid Gas's energy delivery businesses. Current regulatory arrangements in the UK provide the ability to pass through virtually all of the increased costs related to commodity prices to consumers. If Ofgem...

  • Page 359
    ...controls, could adversely affect results of operations of National Grid Gas. New or revised accounting standards, rules and interpretations by the UK, or international accounting standard setting boards and other relevant bodies could have an adverse effect on National Grid Gas's reported financial...

  • Page 360
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48939 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 17 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 771.00.00.00 0/1 *Y59930/771/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 361
    ...SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33810 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 18 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 772.00.00.00 0/1 *Y59930/772/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (vii) the timing of changes...

  • Page 362
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57052 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 19 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 773.00.00.00 0/1 *Y59930/773/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 363
    ... rate, currency or market risks, are designed for specific investment objectives or strategies or have been structured to meet the investment requirements of limited categories of investors. These types of Instruments generally would have a more limited secondary market and more price volatility...

  • Page 364
    ... under any applicable risk-based capital or similar rules. 21 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 775.00.00.00 0/1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 33180 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page...

  • Page 365
    ... to the public in a Member State of the European Economic Area in 22 Phone: (212)924-5500 BNY Y59930 776.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12939 Y59930.SUB, DocName: EX-2.B.7.1, Doc...

  • Page 366
    ...OF NEW YORK Name: NATIONAL GRID CRC: 22883 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 23 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 777.00.00.00 0/7 *Y59930/777/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 circumstances which require the publication of...

  • Page 367
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49320 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 24 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 778.00.00.00 0/4 *Y59930/778/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 368
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32735 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 25 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 779.00.00.00 0/5 *Y59930/779/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 369
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20087 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 26 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 780.00.00.00 0/3 *Y59930/780/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 interest will accrue by reference...

  • Page 370
    ... final and binding upon all parties. 27 Phone: (212)924-5500 BNY Y59930 781.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9726 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 27 Description: EXH...

  • Page 371
    ... Terms, the number of days in the Calculation Period divided by 360, calculated on a formula basis as follows: 28 BNY Y59930 782.00.00.00 0/3 *Y59930/782/3* Operator: BNY99999T (ii) (iii) (iv) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 372
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27325 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 29 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 783.00.00.00 0/3 *Y59930/783/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Day Count...

  • Page 373
    ... OF NEW YORK Name: NATIONAL GRID CRC: 18018 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 30 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 784.00.00.00 0/3 *Y59930/784/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 "Y2" is the year, expressed as a number, in...

  • Page 374
    ... Redemption Amount (Call), the 31 Phone: (212)924-5500 BNY Y59930 785.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 34273 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 31 Description: EXH...

  • Page 375
    ... as a Reference Bank, then the Issuer[ or the Guarantor]* 32 Phone: (212)924-5500 BNY Y59930 786.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57956 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page...

  • Page 376
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51996 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 33 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 787.00.00.00 0/5 *Y59930/787/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 377
    ...on or before the fourteenth business day before the date 34 BNY Y59930 788.00.00.00 0/4 4.3 *Y59930/788/4* Operator: BNY99999T (ii) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58605 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 34...

  • Page 378
    ....00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/789/4* (ii) 4.5 Cessation of or Fundamental Changes to the Index (i) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 42792 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page...

  • Page 379
    ..., Purchase and Options 5.1 Phone: (212)924-5500 BNY Y59930 790.00.00.00 0/4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 57664 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 36 Description: EXH 2(B).7.1 [E/O] EDGAR 2 *Y59930/790/4* Operator: BNY99999T

  • Page 380
    ... in the 37 BNY Y59930 791.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T 5.4 *Y59930/791/4* (b) Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61452 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 37 Description: EXH...

  • Page 381
    ...SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60971 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 38 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 792.00.00.00 0/5 *Y59930/792/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 relevant Final Terms, shall...

  • Page 382
    ... financial centre for that currency; 39 6 Payments and Talons 6.1 Phone: (212)924-5500 BNY Y59930 793.00.00.00 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20977 Y59930.SUB, DocName: EX-2.B.7.1, Doc...

  • Page 383
    ...) appertaining to them, failing 40 Phone: (212)924-5500 BNY Y59930 794.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T 6.5 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 56454 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 40 Description: EXH...

  • Page 384
    ... in the principal financial centre of the country of such currency; or (in the case of a payment in Euro), which is a TARGET Business Day. 41 *Y59930/795/6* Operator: BNY99999T 6.6.2 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 10820...

  • Page 385
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15906 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 42 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 796.00.00.00 0/4 *Y59930/796/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 386
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9222 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 43 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 797.00.00.00 0/5 *Y59930/797/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 387
    ... Instrumentholders or the Couponholders, to the substitution of [a Successor in Business (as 44 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 2729 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 44 Description: EXH 2(B).7.1 [E/O] EDGAR 2

  • Page 388
    ... company". Where National Grid Gas Finance (No 1) is the Issuer, delete the text "a Successor in Business (as defined in the Trust Deed) or any subsidiary". 45 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44576 Y59930.SUB, DocName: EX...

  • Page 389
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12068 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 46 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 800.00.00.00 0/6 *Y59930/800/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 390
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 46084 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 47 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 801.00.00.00 0/3 *Y59930/801/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 SUMMARY OF PROVISIONS RELATING...

  • Page 391
    ...OF NEW YORK Name: NATIONAL GRID CRC: 16380 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 48 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 802.00.00.00 0/2 *Y59930/802/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 document may comprise any form of statement or...

  • Page 392
    ... OF NEW YORK Name: NATIONAL GRID CRC: 670 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 49 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 803.00.00.00 0/3 *Y59930/803/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 temporary Global Instrument exchangeable for...

  • Page 393
    ...been exercised, and stating the nominal amount of Instruments in respect of which the option is exercised and at the same time, where the 50 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 37969 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page...

  • Page 394
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50603 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 51 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 805.00.00.00 0/2 *Y59930/805/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 395
    ... identified use of proceeds, this will be stated in the relevant Final Terms. 52 Phone: (212)924-5500 BNY Y59930 806.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12574 Y59930.SUB, DocName: EX...

  • Page 396
    ... a public company limited by shares under the Companies Act 1985. The address of National Grid Gas's registered office is 1-3 Strand, London, WC2N 5EH and the telephone number of the registered office is +44 20 7004 3000. Business of National Grid Gas plc The business of National Grid Gas comprises...

  • Page 397
    ...Date: 17-JUN-2008 03:10:51.35 EDGAR 2 domestic customers throughout Great Britain. The provision of gas metering services to National Grid Gas enables National Grid Gas to discharge National Grid Gas's obligations in the Licences in respect of metering. Following the sale of four gas distribution...

  • Page 398
    ... National Grid Gas Group Name Business Address Mark Fairbairn Director Executive Director of National Grid plc, Director of National Grid Gas Holdings plc, National Grid Electricity Transmission plc and National Grid UK Limited. Executive Director of National Grid plc and a director of National...

  • Page 399
    ... each business in respect of charging, system access/use of system, metering and other specific obligations required for the proper functioning of the relevant activity and also restrict the revenues which National Grid Gas may derive from its licensed activities (known as the "price controls"). The...

  • Page 400
    ... through licence changes to National Grid Gas's gas transporter licence in respect of its NTS operations. Ofgem extended the price control applicable to National Grid Gas's DNs originally set in 2002 for a further one year until 31 March 2008. The outcome of that formal review was an increase of 11...

  • Page 401
    ... on 31 January 2008. Its current dividend policy is to increase dividends per ordinary share by 7 per cent. per annum until 31 March 2008. The board of National Grid plc intends to recommend a new policy with the following two components: (i) for the current financial year a one-off increase of 15...

  • Page 402
    ...on 3 August 2006 as a public company limited by shares under the Companies Act 1985. The address of National Grid Gas Finance (No 1)'s registered office is 1-3 Strand, London, WC2N 5EH and the telephone number of the registered office is +44 20 7004 3000. National Grid Gas Finance (No 1) is a wholly...

  • Page 403
    ... entitled "Description of National Grid Gas plc". 60 Phone: (212)924-5500 BNY Y59930 814.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15315 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 60...

  • Page 404
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 61547 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 61 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 815.00.00.00 0/5 *Y59930/815/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 UNITED KINGDOM TAXATION...

  • Page 405
    ...OF NEW YORK Name: NATIONAL GRID CRC: 57603 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 62 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 816.00.00.00 0/3 *Y59930/816/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 the United Kingdom for United Kingdom taxation...

  • Page 406
    ..., in one of those territories. 63 Phone: (212)924-5500 BNY Y59930 817.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41594 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 63 Description: EXH...

  • Page 407
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51090 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 64 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 818.00.00.00 0/2 *Y59930/818/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 PLAN OF DISTRIBUTION...

  • Page 408
    ...done by it in relation to any Instruments in, from or otherwise involving the United Kingdom. 65 Phone: (212)924-5500 BNY Y59930 819.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T (b) (c) BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12596...

  • Page 409
    ... Final Terms and neither the Issuers nor any other Dealer shall have responsibility for such material. 66 Phone: (212)924-5500 BNY Y59930 820.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21122...

  • Page 410
    ...] [Guaranteed by National Grid Gas plc] âˆ- under the Euro 10,000,000,000 Euro Medium Term Note Programme PART A - CONTRACTUAL TERMS Terms used herein shall be deemed to be defined as such for the purposes of the Conditions set forth in the Prospectus dated 26 February 2008 [and the supplementary...

  • Page 411
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 17991 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 68 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 822.00.00.00 0/3 *Y59930/822/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 [When completing final terms...

  • Page 412
    ... Amount(s): Day Count Fraction (Condition 3.2.4(i)): Determination Dates (Condition 3.2.4(i)): Phone: (212)924-5500 *Y59930/823/2* Operator: BNY99999T (vii) Other terms relating to the method of calculating interest for Fixed Rate Instruments: * Only applicable where National Grid Gas Finance...

  • Page 413
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 64752 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 70 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 824.00.00.00 0/1 *Y59930/824/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 414
    ...(vii) Phone: (212)924-5500 (viii) Business Day Convention: (ix) (x) (xi) Minimum Indexation Factor: Business Centre(s) (Condition 3.2.4(i)): Maximum Indexation Factor: BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20567 Y59930.SUB, DocName: EX-2.B.7.1, Doc...

  • Page 415
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52419 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 72 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 826.00.00.00 0/2 *Y59930/826/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 (xii) Limited Indexation...

  • Page 416
    ... Redemption for taxation reasons permitted on days other than Interest Payment Dates (Condition 5.2) 73 Phone: (212)924-5500 (ii) [Yes/No] BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52044 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 73 Description: EXH...

  • Page 417
    ... of failure to pay, including any right of the Issuer[ or the 26 Phone: (212)924-5500 27 [Not Applicable/give details] 1 Specify "Not Applicable" if the Notes being issued are Classic Global Notes/CGNs. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13513...

  • Page 418
    ... Final Terms comprise the final terms required for issue and admission to trading on the [specify relevant regulated market] of the Instruments described herein pursuant to the Euro Medium Term Note Programme of National Grid Gas plc and National Grid Gas Finance (No 1) plc.] RESPONSIBILITY [Each...

  • Page 419
    ...the Guarantor: By: Duly authorised]* 76 Phone: (212)924-5500 BNY Y59930 830.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9127 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 76 Description: EXH...

  • Page 420
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15230 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 77 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 831.00.00.00 0/8 *Y59930/831/8* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 421
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 5759 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 78 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 832.00.00.00 0/7 *Y59930/832/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2...

  • Page 422
    ... consents, approvals and authorisations in the United Kingdom in connection with the issue and performance of the Instruments. The establishment of the Programme was authorised by a resolution of the Finance Committee of the Board of Directors of National Grid Gas passed on 17 July 2003. The...

  • Page 423
    ... authorised and regulated by the Financial Services Authority) has audited the financial statements of the National Grid Gas Group for the years ended 31 March 2006 and 31 March 2007, in accordance with United Kingdom generally accepted auditing standards and reported thereon, respectively, without...

  • Page 424
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48131 Y59930.SUB, DocName: EX-2.B.7.1, Doc: 8, Page: 81 Description: EXH 2(B).7.1 Phone: (212)924-5500 [E/O] BNY Y59930 835.00.00.00 0/5 *Y59930/835/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 REGISTERED OFFICE OF...

  • Page 425
    ...The Bank of New York One Canada Square London E14 5AL PAYING AGENTS Kredietbank S. A. Luxembourgeoise 43, Boulevard Royal L-2955 Luxembourg REGISTERED AUDITORS TO NATIONAL GRID GAS PLC PricewaterhouseCoopers LLP 1 Embankment Place London WC2N 6RH 82 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500...

  • Page 426
    ... SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-4.C.8, Doc: 9 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/9* DOCHDR 9 Date: 17-JUN-2008 03:10:51.35 EX-4.C.8 y59930exv4wcw8.htm EX...

  • Page 427
    ... Execution Copy Dated October 26, 2007 NATIONAL GRID PLC, NATIONAL GRID USA and MR. ROBERT B. CATELL FIXED TERM EMPLOYMENT AGREEMENT 0 Phone: (212)924-5500 BNY Y59930 837.00.00.00 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK...

  • Page 428
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 5767 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 2 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 838.00.00.00 0/3 *Y59930/838/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 This Fixed Term Employment Agreement (this...

  • Page 429
    ... YORK Name: NATIONAL GRID CRC: 8400 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 3 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 839.00.00.00 0/4 *Y59930/839/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 2.2 The Executive represents and warrants to the Company...

  • Page 430
    ...of any one company, whether or not those investments are listed or quoted on any 3 3.6 3.7 4 4.1 5 5.1 5.2 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T 5.3 BNY Y59930 840.00.00.00 0/3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 431
    ... policies applicable to the Group Company from time to time in relation to the holding or trading of securities. Location The Executive will work primarily at the New York Metropolitan area office of the Company. He will be required to travel and work outside the United States from time to time but...

  • Page 432
    ... plc" and the "Board of Directors of National Grid plc," respectively) prior to then. However, should the Executive die before the Payment Date, the Buyout Amount will be paid to the Executive's estate within 30 days after his death (but not prior to January 1, 2008). The Company's obligation to pay...

  • Page 433
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 55223 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 7 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 843.00.00.00 0/5 *Y59930/843/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 7.6.2 The Executive agrees...

  • Page 434
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20201 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 8 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 844.00.00.00 0/4 *Y59930/844/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 8.2 If the Executive is...

  • Page 435
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60811 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 9 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 845.00.00.00 0/4 *Y59930/845/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 by the Executive during his employment...

  • Page 436
    ...not the Executive's entitlement to sick pay, 9 11.2 11.3 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T 11.4 BNY Y59930 846.00.00.00 0/4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 3847 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page...

  • Page 437
    ....4 or 11.5 (or in the event of the Executive's and the Company's mutual written agreement 10 Phone: (212)924-5500 BNY Y59930 847.00.00.00 0/4 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50304 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 11 Description: EXH...

  • Page 438
    ... or if the Executive resigns without giving due notice and the Company does not 11 Phone: (212)924-5500 BNY Y59930 848.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13131 Y59930.SUB, DocName: EX...

  • Page 439
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52406 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 13 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 849.00.00.00 0/3 *Y59930/849/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 accept his resignation, the Company...

  • Page 440
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 43254 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 14 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 850.00.00.00 0/4 *Y59930/850/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 accordance with the terms of...

  • Page 441
    ... OF NEW YORK Name: NATIONAL GRID CRC: 37753 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 15 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 851.00.00.00 0/3 *Y59930/851/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 "Prohibited Area " means the United States and...

  • Page 442
    ... YORK Name: NATIONAL GRID CRC: 42244 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 16 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 852.00.00.00 0/3 *Y59930/852/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Date and who had been senior employee, director, officer...

  • Page 443
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 24369 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 17 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 853.00.00.00 0/5 *Y59930/853/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 13.11 The Executive agrees...

  • Page 444
    ... NEW YORK Name: NATIONAL GRID CRC: 24711 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 18 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 854.00.00.00 0/2 *Y59930/854/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 16.2 16.3 The Executive must resign from any office...

  • Page 445
    ... damages (and the Executive and the Company 18 19 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T 19.1 BNY Y59930 855.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 15799 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 19...

  • Page 446
    ...law, any objection to personal jurisdiction or to the laying of venue of any action or proceeding 19 19.3 Phone: (212)924-5500 BNY Y59930 856.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13065...

  • Page 447
    ...OF NEW YORK Name: NATIONAL GRID CRC: 44501 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 21 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 857.00.00.00 0/3 *Y59930/857/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 covered by this clause 19.3 in the forum stated in...

  • Page 448
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51126 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 22 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 858.00.00.00 0/3 *Y59930/858/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 20.6 20.7 The Company may...

  • Page 449
    ... the applicable terms of such plan or arrangement, except to the extent explicitly modified by this Agreement. 22 Phone: (212)924-5500 BNY Y59930 859.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 450
    ..., marketing or recommending to another party any transaction or matter addressed herein. EXECUTED on the 26 day of October 2007 on behalf of /s/ Steve Holliday NATIONAL GRID PLC Director NATIONAL GRID USA Director /s/ Helen Mahy Company Secretary/Director, NATIONAL GRID PLC Date: 17-JUN-2008 03...

  • Page 451
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9885 Y59930.SUB, DocName: EX-4.C.8, Doc: 9, Page: 25 Description: EXH 4(C).8 Phone: (212)924-5500 [E/O] BNY Y59930 861.00.00.00 0/4 *Y59930/861/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 EXECUTED on this 26th day of...

  • Page 452
    ... that the Executive shall be entitled to receive pursuant to Section 9 of the KeySpan Employment Agreement. 25 Phone: (212)924-5500 BNY Y59930 862.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 453
    ... plan, or is eligible for Medicare benefits, the foregoing retiree health and dental benefits shall be secondary. 26 Phone: (212)924-5500 BNY Y59930 863.00.00.00 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 454
    ...US business lines of responsibility) on strategic execution and provides assistance to them to build relationships etc. to advance National Grid's US interests. • Takes on any special US ambassadorial assignments for the Board, Group Chairman or CEO. Development and Execution of Corporate Strategy...

  • Page 455
    ... Group on the boards of major business and industry organizations, i.e., New York State Business Council, New York City Partnership (double with CEO on Edison Electric Institute, National Petroleum Council) US Energy Association, American Gas Association, Long Island Association and New York State...

  • Page 456
    ...2 • Ensures Gas/Electric/Generation conflicts are appropriately resolved to maximize value of National Grid plc. • Assists the CEO with US organization alignment, executive selection and performance management and development. Provides insight on US compensation program, succession planning and...

  • Page 457
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Exhibit B Form of Release and Waiver (Subject to updating for changes in applicable law.) GENERAL RELEASE, by [NAME] (the "Executive ") in favor of National Grid plc and National Grid USA (the "Company"). 1 [In consideration of the payments and benefits set...

  • Page 458
    ...impact on the business or reputation of the Group (other than a violation that has already been notified to or already known by a member of the Board of Directors (other than the Executive), Chief Executive Officer or the General Counsel of National Grid plc). 5 The Executive represents and warrants...

  • Page 459
    ... of Employment 14 Offers on Liquidation 15 Return of Company Property 16 Directorships 17 Notices 18 Data Protection Act 1998 19 Disputes 20 Miscellaneous BNY Y59930 869.00.00.00 0/1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50894 Y59930.SUB, DocName: EX...

  • Page 460
    ... * Lines: * CRC: * Y59930.SUB, DocName: EX-4.C.9, Doc: 10 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/10* DOCHDR 10 Date: 17-JUN-2008 03:10:51.35 EX-4.C.9 y59930exv4wcw9.htm EX-4.C.9: EMPLOYMENT AGREEMENT AMONG NATIONAL GRID PLC

  • Page 461
    ... NATIONAL GRID PLC, NATIONAL GRID USA and MR. THOMAS KING EMPLOYMENT AGREEMENT Phone: (212)924-5500 BNY Y59930 870.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 41453 Y59930.SUB, DocName: EX...

  • Page 462
    ...Phone: (212)924-5500 [E/O] BNY Y59930 871.00.00.00 0/4 *Y59930/871/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 This Employment Agreement (this "Agreement") is made on this 11 day of July, 2007 among: (1) (2) (3) 1 National Grid plc incorporated in the UK with registered number...

  • Page 463
    ...*Y59930/872/3* The Executive will keep the Board (and, where appropriate, the board of directors of any other Group Company) fully informed of his conduct of the -2- Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 559...

  • Page 464
    ...on any recognized Stock Exchange or dealt in on the Alternative Investments Market. -3- 3.7 4 4.1 5 5.1 5.2 5.3 Date: 17-JUN-2008 03:10:51.35 Phone: (212)924-5500 Operator: BNY99999T BNY Y59930 873.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 465
    ... from time to time and rules or policies applicable to the Group from time to time in relation to the holding or trading of securities. Location The Executive will work at the Boston area office of the Company or anywhere else within the United States or the United Kingdom required by the Board. He...

  • Page 466
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 22453 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 6 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 875.00.00.00 0/2 *Y59930/875/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 and conditions thereof...

  • Page 467
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51168 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 7 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 876.00.00.00 0/3 *Y59930/876/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 8.2 9 9.1 If the Executive is...

  • Page 468
    ...Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 23679 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 8 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 877.00.00.00 0/3 *Y59930/877/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 by the Executive during his employment...

  • Page 469
    ...'days' includes Saturdays, Sundays and public holidays. -8- 11.4 11.5 Phone: (212)924-5500 BNY Y59930 878.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 14254 Y59930.SUB, DocName: EX-4.C.9, Doc...

  • Page 470
    ... OF NEW YORK Name: NATIONAL GRID CRC: 8085 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 10 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 879.00.00.00 0/2 *Y59930/879/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 11.6 The Company may terminate the Employment by...

  • Page 471
    ... OF NEW YORK Name: NATIONAL GRID CRC: 59188 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 11 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 880.00.00.00 0/2 *Y59930/880/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 11.9 When the Employment terminates the Company...

  • Page 472
    ...of notice given by the Company or the Executive (less any deductions the Company is - 11 - 12.5 Phone: (212)924-5500 BNY Y59930 881.00.00.00 0/2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 44427 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 12 Description...

  • Page 473
    ... Customer" means any party with respect to whom the Company or any Group Company derives, or expects to derive, revenue - 12 - Phone: (212)924-5500 BNY Y59930 882.00.00.00 0/3 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58297 Y59930.SUB, DocName: EX...

  • Page 474
    ...a company at the Termination Date and who had been senior employee, director, officer, agent, senior consultant or senior associate at any time during the six months prior to the Relevant Date and with whom he had worked closely at any time during that period. 13.2.2 13.2.3 13.3 Date: 17-JUN-2008...

  • Page 475
    ...any member of the Group or any of their respective past or present executive officers or directors. - 14 - Phone: (212)924-5500 BNY Y59930 884.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 12435...

  • Page 476
    ... OF NEW YORK Name: NATIONAL GRID CRC: 5687 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 16 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 885.00.00.00 0/2 *Y59930/885/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 14 14.1 Offers on Liquidation The Executive will...

  • Page 477
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 31546 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 17 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 886.00.00.00 0/2 *Y59930/886/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Agreement, the Executive...

  • Page 478
    ... rendered within ten business days of the parties' closing statements or submission of post- 17 - 19 19.1 Phone: (212)924-5500 BNY Y59930 887.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6191...

  • Page 479
    ...binding on the Executive and the Company. However, nothing in this Agreement precludes - 18 - 19.3 Phone: (212)924-5500 BNY Y59930 888.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 65073 Y59930...

  • Page 480
    ... BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 51897 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 20 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 889.00.00.00 0/2 *Y59930/889/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 the Executive or the Company from bringing...

  • Page 481
    ... sufficiency of the BNY Y59930 890.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 - 20 - Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60612 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 21 Description: EXH 4(C).9 [E/O] EDGAR 2 *Y59930...

  • Page 482
    ... be legally binding. EXECUTED on July 11, 2007 on behalf of /s/ Steve Holliday...NATIONAL GRID PLC Director ...NATIONAL GRID USA Director /s/ Helen Mahy ...Company Secretary/Director, NATIONAL GRID PLC ...Date: 17-JUN-2008 03:10:51.35 Company Secretary/Director, NATIONAL GRID USA BNY Y59930 891...

  • Page 483
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 18159 Y59930.SUB, DocName: EX-4.C.9, Doc: 10, Page: 23 Description: EXH 4(C).9 Phone: (212)924-5500 [E/O] BNY Y59930 892.00.00.00 0/3 *Y59930/892/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 EXECUTED on July...

  • Page 484
    ... of Employment Offers on Liquidation Return of Company Property 1 1 2 3 3 4 4 5 6 6 8 10 12 15 15 15 16 16 17 19 12 13 14 16 Operator: BNY99999T 17 18 19 20 Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 25998 Y59930.SUB, DocName: EX...

  • Page 485
    ... Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-4.C.11, Doc: 11 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/11* DOCHDR 11 Date: 17-JUN-2008 03:10:51.35 EX-4.C.11 y59930exv4wcw11.htm EX...

  • Page 486
    ... in light of the UK Companies Act, UK Listing Authority Rules and Combined Code and obligations arising as a result of the Company having an ADR programme listed on the New York Stock Exchange, as set out in the relevant section of National Grid plc Registered Office 1-3 Strand London WC2N 5EH...

  • Page 487
    ...-executive Director of the Company. You have also been requested to serve on the Audit and Risk and Responsibility Committees of the Board. 2 of 5 Phone: (212)924-5500 BNY Y59930 901.00.00.00 0/1 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 488
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27613 Y59930.SUB, DocName: EX-4.C.11, Doc: 11, Page: 3 Description: EXH 4(C).11 Phone: (212)924-5500 [E/O] BNY Y59930 902.00.00.00 0/2 *Y59930/902/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Fees You will be paid an annual...

  • Page 489
    BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 32580 Y59930.SUB, DocName: EX-4.C.11, Doc: 11, Page: 4 Description: EXH 4(C).11 Phone: (212)924-5500 [E/O] BNY Y59930 903.00.00.00 0/2 *Y59930/903/2* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 ...

  • Page 490
    ... to the Board of National Grid plc and I look forward to our building a good working relationship. Yours sincerely, /s/ John Parker Sir John Parker Chairman Agreed and accepted by: /s/ Philip Aiken Philip Aiken 5 of 5 Phone: (212)924-5500 BNY Y59930 904.00.00.00 0/3 Date: 17-JUN-2008 03:10...

  • Page 491
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-8, Doc: 12 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/12* DOCHDR 12 Date: 17-JUN-2008 03:10:51.35 EX-8 y59930exv8.htm...

  • Page 492
    ... 0/3 *Y59930/910/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Y59930.SUB, DocName: EX-8, Doc: 12, Page: 1 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID EXHIBIT 8 LIST OF SUBSIDIARIES COMPANY NAME REGISTERED OFFICE ADDRESS 1 2 4 5 6 7 8 9 10 11...

  • Page 493
    ...TRANSCO INTERNATIONAL FINANCE BV BRITNED DEVELOPMENT LIMITED BROKEN BRIDGE CORP. BSC CO LIMITED C4GAS SAS COLONIAL GAS COMPANY CONNECTICUT YANKEE ATOMIC POWER COMPANY DIRECT GLOBAL POWER, INC EASTERN ASSOCIATED SECURITIES CORP. EASTERN RIVERMOOR COMPANY, INC NATIONAL GRID UK PENSION SERVICES LIMITED...

  • Page 494
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 GRIDCOM LIMITED HOLDCO PARTICIPACOES LTDA HONEOYE STORAGE CORPORATION INTELIG TELECOMUNICACOES LTDA INVERSIONES ABC LIMITADA IROQUOIS GAS TRANSMISSION...

  • Page 495
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 KEYSPAN GENERATION LLC KEYSPAN-GLENWOOD ENERGY CENTER, LLC KEYSPAN HOME ENERGY SERVICES, LLC KEYSPAN HOME ENERGY SERVICES (NEW ENGLAND), LLC...

  • Page 496
    ... NEW YORK Name: NATIONAL GRID 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 LANDWEST, INC LATTICE ENERGY SERVICES LIMITED LATTICE GROUP EMPLOYEE BENEFIT TRUST LIMITED LATTICE GROUP INTERNATIONAL HOLDINGS LIMITED...

  • Page 497
    ... POWER LIMITED NATIONAL GRID BRAZIL B.V. NATIONAL GRID BRAZIL FINANCE NATIONAL GRID BRAZIL TRANSMISSION B.V. NATIONAL GRID CHILE B.V. NATIONAL GRID COMMERCIAL HOLDINGS LIMITED NATIONAL GRID EIGHT NATIONAL GRID EIGHTEEN LIMITED NATIONAL GRID ELECTRICITY TRANSMISSION PLC NATIONAL GRID ELEVEN NATIONAL...

  • Page 498
    ... INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 7305 Y59930.SUB, DocName: EX-8, Doc: 12, Page: 7 Phone: (212)924-5500 [E/O] BNY Y59930 916.00.00.00 0/1 *Y59930/916/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Y59930.SUB, DocName: EX-8, Doc: 12...

  • Page 499
    ... NATIONAL GRID TWO LIMITED NATIONAL GRID UK LIMITED NATIONAL GRID US 6 LLC NATIONAL GRID US 7 INC. NATIONAL GRID US LLC NATIONAL GRID USA NATIONAL GRID USA SERVICE COMPANY, INC. NATIONAL GRID ZAMBIA LIMITED NEES ENERGY, INC. NETMAP LIMITED NETWORK MAPPING LIMITED NEW ENGLAND ELECTRIC TRANSMISSION...

  • Page 500
    ...: EX-8, Doc: 12, Page: 9 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 NEW ENGLAND POWER COMPANY NEW ENGLAND WHOLESALE ELECTRIC COMPANY NEWHC...

  • Page 501
    ...: EX-8, Doc: 12, Page: 10 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 NGM1 (GBR) LIMITED NGT FIVE LIMITED NGT FOUR LIMITED NGT HOLDING COMPANY...

  • Page 502
    ... BROOKLYN UNION GAS COMPANY THE ELECTRICITY TRANSMISSION COMPANY LIMITED THE NARRAGANSETT ELECTRIC COMPANY THE NATIONAL GRID GROUP QUEST TRUSTEE COMPANY LIMITED THE NATIONAL GRID INVESTMENTS COMPANY TRANSCO LIMITED TRANSGAS, INC. UPPER HUDSON DEVELOPMENT INC UTILITY METERING SERVICES LIMITED VALLEY...

  • Page 503
    ...SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-12.1, Doc: 13 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/13* DOCHDR 13 Date: 17-JUN-2008 03:10:51.35 EX-12.1 y59930exv12w1.htm EX-12...

  • Page 504
    ...role in the company's internal control over financial reporting. June 17, 2008 /s/ Steve Holliday Steve Holliday Title: Chief Executive National Grid plc Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 649 Y59930.SUB, DocName: EX-12.1, Doc...

  • Page 505
    ...SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-12.2, Doc: 14 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/14* DOCHDR 14 Date: 17-JUN-2008 03:10:51.35 EX-12.2 y59930exv12w2.htm EX-12...

  • Page 506
    ... management or other employees who have a significant role in the company's internal control over financial reporting. /s/ Steve Lucas Steve Lucas Title: Finance Director National Grid plc Phone: (212)924-5500 (b) June 17, 2008 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name...

  • Page 507
    ... SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-13, Doc: 15 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/15* DOCHDR 15 Date: 17-JUN-2008 03:10:51.35 EX-13 y59930exv13.htm EX-13...

  • Page 508
    ... the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. June 17, 2008 /s/ Steve Holliday Steve Holliday Chief Executive National Grid plc /s/ Steve Lucas Steve Lucas Title: Finance Director National Grid plc June 17, 2008 Phone: (212...

  • Page 509
    ... NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-15.1, Doc: 16 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/16* DOCHDR 16 Date: 17-JUN-2008 03:10:51.35 EX-15.1 y59930exv15w1.htm EX-15.1: NATIONAL GRID PLC...

  • Page 510
    ... joint ventures and associates Definitions and glossary of terms Operating and Financial Review and Prospects Operating and Financial Review Research and development Directors, Senior Management and Employees Board of Directors Directors' Remuneration Report Note 5 Pensions and other post-retirement...

  • Page 511
    ... OF NEW YORK Name: NATIONAL GRID CRC: 49852 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 2 Phone: (212)924-5500 [A/E] BNY Y59930 196.00.00.00 4/7 *Y59930/196/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Page Item 18. Financial Statements Accounting policies...

  • Page 512
    ... objectives Transmission Gas Distribution Electricity Distribution & Generation Non-regulated businesses and other Discontinued operations Financial position and financial management Accounting policies Independent Corporate Responsibility Report Corporate Governance Corporate governance Directors...

  • Page 513
    ... responsible for UK Gas Distribution and Business Services in April 2003. He was formerly an Executive Director of British Borneo Oil and Gas. Previously, he spent 19 years with the Exxon Group, where he held senior positions in the international gas business and managed major operational areas...

  • Page 514
    .../200/12* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 200.00.00.00-1 0/12 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49377 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 515
    ...the Board in May 2008. He is Chairman of Robert Walters plc, a Non-executive Director of Kazakhmys plc and senior advisor to Macquarie Capital (Europe) Limited. Formerly, Group Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 516
    .../201/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 201.00.00.00-1 0/7 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6768 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 517
    ... New York, Massachusetts, New Hampshire and Rhode Island, as operator and manager of the electricity transmission and distribution network in Long Island on behalf of the Long Island Power Authority, and as a generator of electricity on Long Island. The delivery of other services in markets related...

  • Page 518
    ... Contents Annual Report and Accounts 2007/08 15 Vision, strategy and objectives Vision Our vision is for National Grid to be the foremost international electricity and gas company, delivering unparalleled safety, efficiency and reliability, vital to the well-being of our customers and communities...

  • Page 519
    ...00.00 0/9 Revenues in our Long Island electricity distribution and generation operations are subject to long-term contracts with the Long Island Power Authority. In addition, revenues in our UK metering services businesses and our Grain LNG import terminal are determined by contractual arrangements...

  • Page 520
    ... interest rates. Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 204.00.00.00-1 0/9 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 11844 Y59930.SUB, DocName: EX-15...

  • Page 521
    ...and supporting our employees, customers and suppliers in changing their behaviour to be more considerate of the environment. Strong financial performance and operating cash flows are the basis for funding our future capital investment programmes, for servicing our borrowings and paying dividends, as...

  • Page 522
    ... generally responsible for billing customers both for our delivery services and for electricity and gas consumed (on which we do not charge any additional margin). On Long Island, we operate the electricity transmission and distribution network on behalf of its owner, the Long Island Power Authority...

  • Page 523
    ... holding companies, including mergers and acquisitions of public utilities. Date: 17-JUN-2008 03:10:51.35 We have four electricity rate plans and nine sets of gas rates in the US, covering our electricity distribution operations in upstate New York, Massachusetts, Rhode Island and New Hampshire...

  • Page 524
    ..., is responsible for day-to-day management of National Grid and for the execution of our strategy as approved by the Board. Business and geographic analysis Our continuing operations are organised by lines of business as follows: BNY Y59930 208.00.00.00 0/6 Date: 17-JUN-2008 03:10:51.35 Phone...

  • Page 525
    .../208/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 208.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 29761 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 526
    ... National Grid as our name. 2006 Acquisition of Rhode Island gas distribution network. 2006 Announcement of new strategy, including our decision to focus on core energy markets in the UK and US. 2007 Sales of UK and US wireless infrastructure operations and of the Basslink electricity interconnector...

  • Page 527
    .../209/17* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 209.00.00.00-1 0/17 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28253 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 528
    ... power developments will require increasing investment in our US electricity transmission and distribution networks. Activity to increase the UK's import capability has involved the development of new import infrastructure by National Grid and other market participants. During the year, a number...

  • Page 529
    ... price controls for our electricity and gas transmission operations for 2008/09. US rate plans In the US, in conjunction with our acquisition of KeySpan, we agreed rate plans with the New York Public Service Commission with respect to our gas distribution operations in New York City and Long Island...

  • Page 530
    ... National Grid plc Performance summary and key performance indicators Delivering our strategy Lines of business • Established Transmission, Gas Distribution and Electricity Distribution & Generation as lines of business, with common management teams, each with a responsible Executive Director...

  • Page 531
    .../212/8* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 212.00.00.00-1 0/8 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 36728 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 532
    ... ethnic employees (%) Relationships Date: 17-JUN-2008 03:10:51.35 Stakeholder relations and community involvement Climate change Over 350 equity investor roadshows in the year and presentations to debt investors in 17 countries Reliability programme in the US to address customer service...

  • Page 533
    ... financial performance basis assuming the acquisition occurred on 1 April 2007 Phone: (212)924-5500 BNY Y59930 213.00.00.00-1 0/10 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 65026 Y59930.SUB, DocName: EX...

  • Page 534
    ...our share repurchase programme; and shareholder return through a dividend growth measure. Total shareholder return is now presented as a cumulative three year measure. We have retained the KPI for gas safety-related service standards in the UK, but it is now presented as part of the Gas Distribution...

  • Page 535
    ... our managers in National Grid will be accountable for safety, health and environmental management in their areas of operations. We are still at an early stage in this element of the transition and over the coming months we aim to develop new control structures, more clearly define responsibilities...

  • Page 536
    ... against our objectives continued National Grid plc New businesses We will consider acquiring new businesses in our core markets of electricity and gas delivery in the UK and the US. This may include generation assets where our exposure to commodity price fluctuations is limited. We use the...

  • Page 537
    ... Grid was not in control of the operations acquired. During 2007/08, we have reviewed the critical safety risks across our business, ensuring they are effectively managed. To support this, we have developed a programme for improving safety performance in National Grid: 'Trusted to Work Responsibly...

  • Page 538
    ...YORK Name: NATIONAL GRID CRC: 38936 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 22 Description: EXHIBIT 15.1 We use business specific service quality performance measures to measure our performance in this area. In addition to our plans to improve reliability, in particular for our US electricity...

  • Page 539
    ... dependency on gas imports and plans for significant expansion of renewable energy sources, as well as the need to increase the rate of asset replacement in electricity transmission as assets built in the 1960s and 1970s approach the end of their useful lives. The UK transmission price controls for...

  • Page 540
    ... plans are being developed and built into managers' objectives for the coming year. Performance management During the year we successfully launched our Performance for Growth programme involving over 200 senior managers across National Grid in both the UK and the US, led by our Executive Directors...

  • Page 541
    ... and the communities in which we operate. Investor relations Our aim is to ensure that the value of our business is reflected in our share price. We aim to make National Grid attractive to debt investors so that we can finance our operations as effectively as possible. Our objective is to use the...

  • Page 542
    ...and Long Island, including the Ravenswood generation station. Since we acquired them up until 31 March 2008, these plants emitted approximately 5.7 million tonnes of carbon dioxide. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52137 Y59930.SUB, DocName: EX-15...

  • Page 543
    .../222/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 222.00.00.00-1 0/4 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52137 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 544
    ... OF NEW YORK Name: NATIONAL GRID CRC: 17549 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 27 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 223.00.00.00 0/6 *Y59930/223/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 545
    ... to sell the Ravenswood generation station for $2.9 billion (£1.4 billion). The sale is subject to approval from the various regulatory bodies concerned, with completion expected by summer 2008. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 546
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21979 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 29 Description: EXHIBIT 15.1 EDGAR 2 48.0p Adjusted earnings per share 60.5p Earnings per share 15% Growth in ordinary dividends 11.8% Return on equity average over three years [E/O]

  • Page 547
    ...Continuing operations Years ended 31 March 2007 2006 2008 £m £m £m BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 43844 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 30 Description: EXHIBIT 15.1 [E/O] Transmission UK Transmission US Gas Distribution UK Gas...

  • Page 548
    ... of a UK shared services function, the business process review undertaken in Transmission and the integration of the acquired Rhode Island gas distribution network into our Gas Distribution business. Operating remeasurement gains of £81 million (2005/06: losses of £49 million) relate to changes in...

  • Page 549
    ... that returned £1.5 billion of value to shareholders (2006/07: the increase in adjusted profit for the year from continuing operations and the share consolidation in August 2005). BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 47033 Y59930.SUB, DocName: EX-15...

  • Page 550
    ... costs. The gain on disposal of discontinued operations in 2005/06 relates to the sales of gas distribution networks. Earnings per share from discontinued operations in 2007/08 was 62.0 pence per share, including 60.6 pence per share relating to gains on the businesses sold during the year...

  • Page 551
    ... the profits we generate and the net interest cost of servicing our borrowings. We also measure our progress against our promise to return cash to shareholders. EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 52399 Y59930.SUB, DocName: EX-15.1, Doc: 16...

  • Page 552
    ...pence per share, amounting to approximately £531 million, will be reported in the financial statements for the year ending 31 March 2009. Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27456 Y59930.SUB, DocName: EX-15...

  • Page 553
    ... TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58906 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 36 Description: EXHIBIT 15.1 [E/O] EDGAR 2 *Y59930/232/10* £1,149m Adjusted operating profit £1,711m Capital investment 3,678 Employees 1.5 PWh Energy transmitted...

  • Page 554
    .../232/10* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 232.00.00.00-1 0/10 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 58906 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 555
    ...of gas to end consumers. Electricity system operator Operator: BNY99999T We are the Great Britain System Operator, responsible for managing the operations of both the England and Wales transmission system that we own and also the two high-voltage electricity transmission networks in Scotland. Day...

  • Page 556
    ... works closely with the independent system operators in New England and New York to support efficient market and network operations and transmission investment. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 60719 Y59930.SUB, DocName: EX...

  • Page 557
    ...new investment enters service, bringing immediate revenue benefits. In New York, Massachusetts and Rhode Island, we are subject to penalties if the reliability of our electricity distribution and transmission networks fails to meet specific targets related to customer impacts. 47 The New York rate...

  • Page 558
    ...in our business process review last year. We have focused on improving the efficiency of delivery of our capital investment programme and operational efficiencies to meet the challenges within our UK price control and US rate plans. This has been based on improving our operational planning, managing...

  • Page 559
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21567 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 41 Description: EXHIBIT 15.1 [E/O] UK investment Investment in electricity and gas transmission systems is, by its nature, variable and is largely driven by changing sources of supply and asset...

  • Page 560
    .../237/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 237.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 21567 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 561
    ...BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 50 Transmission continued National Grid plc for 2006/07. The reduction related to non-Transmission activities of New England Power. In New York, our electricity transmission activities are combined with electricity distribution...

  • Page 562
    ... in the UK and the implementation of a review of our business processes. Financial results - Transmission US The average exchange rates used to translate the results of US operations during 2007/08, 2006/07 and 2005/06 were $2.01:£1, $1.91:£1 and $1.79:£1 respectively. 2008 £m Years ended 31...

  • Page 563
    ... EDGAR 2 *Y59930/240/9* BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 37217 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 44 Description: EXHIBIT 15.1 £987m Adjusted operating profit £702m Capital investment 9,136 Employees 455 TWh Gas delivered [E/O]

  • Page 564
    ... New York City, Long Island, Massachusetts, New Hampshire and Rhode Island. Our network of approximately 58,000 kilometres of gas pipelines covers an area of approximately 28,800 square kilometres. In the US, our core services are the operation and emergency response for each of our gas distribution...

  • Page 565
    ... service. These maximum prices are based on Ofgem's allowances for operating, capital and replacement expenditure, together with depreciation of, and a return on, Ofgem's allowances for our regulatory asset value. The price controls that applied to our UK gas distribution networks during the year...

  • Page 566
    ...gas distribution networks in New York City, Long Island, Massachusetts and New Hampshire to our existing upstate New York and Rhode Island operations. UK regulatory price control reviews Ofgem extended the previous five year gas distribution price controls for a further year to cover the year ending...

  • Page 567
    ...of customer satisfaction in the territories we operate in. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13435 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 48 Description: EXHIBIT 15.1 EDGAR 2 Lost time injuries numbered 15 in the UK in...

  • Page 568
    ... met all customer service standards over the past year. We installed around 14,000 new services and added 911 kilometres of new gas main connections to the network. Capital investment Our aim is to deliver around £4 billion of capital investment by 2012 in line with our price control allowance. 57...

  • Page 569
    ... continued National Grid plc Revenue and other operating income in Gas Distribution UK increased by £192 million in 2007/08 compared with 2006/07. Net formula income was up £165 million due to the outcome of the one year price control extension. In addition there was a £59 million timing impact...

  • Page 570
    ... of higher energy prices BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 48334 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 51 Description: EXHIBIT 15.1 EDGAR 2 £595m Gas Distribution UK adjusted operating profit £392m Gas Distribution US adjusted...

  • Page 571
    ... own generation plants capable of generating 4.1GW. We are also responsible for maintaining and operating the electricity transmission and distribution system on Long Island on behalf of the Long Island Power Authority (LIPA). With the introduction of revenue decoupling, we are working with energy...

  • Page 572
    .../248/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 248.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 47017 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 573
    ... by the Long Island Power Authority (LIPA), provides energy to customers that include homes, small and large commercial and industrial enterprises. *Y59930/249/6* We are responsible for building, operating and maintaining our electricity distribution networks in New England and New York, and LIPA...

  • Page 574
    ... of LIPA's transmission and distribution system, providing services to LIPA's retail customers, purchasing and selling electricity on behalf of LIPA and managing the delivery of the energy that we produce under contract to LIPA. Generation We own 57 electricity generation plants on Long Island that...

  • Page 575
    ... 1.1 million customers. In addition, we acquired 57 electricity generation plants on Long Island that supply electricity under contract to LIPA. Upstate New York capital expenditure rate filing In New York, capital expenditure in the rate plan for electricity distribution was set at historic...

  • Page 576
    ... doubling of programme funding through initiatives underway in Rhode Island, New York, and Massachusetts, while we continue to develop new and creative ways to provide our customers with end-to-end energy solutions. Operating performance Safety Our objective is to reduce employee lost time injuries...

  • Page 577
    ... and other increases in capital investment, including a non-recurring benefit capitalisation adjustment, partially offset by a £17 million reduction relating to the Nantucket cable project. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 578
    ... by lower purchased electricity costs. Commodity costs are recovered in full from customers although the recovery of these costs can occur in more than one financial year. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 35763 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 579
    ... OF NEW YORK Name: NATIONAL GRID CRC: 16535 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 59 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 255.00.00.00 0/8 *Y59930/255/8* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 580
    ... SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 14118 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 60 Description: EXHIBIT 15.1 [E/O] EDGAR 2 *Y59930/256/12* £129m Adjusted operating profit £383m Capital investment 3,166 Employees 590,000 tonnes LNG imported to the UK through...

  • Page 581
    .../256/12* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 256.00.00.00-1 0/12 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 14118 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 582
    ... regulated and unregulated markets respectively. Our metering businesses provide services on behalf of gas suppliers for an asset base of approximately 20 million domestic, industrial and commercial meters. UK Property Operator: BNY99999T National Grid Property is responsible for managing all our...

  • Page 583
    .../257/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 257.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 11228 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 584
    ...National Grid Metering and OnStream will report to Mark Fairbairn, Executive Director for Gas Distribution. UK Property will report to Steve Lucas, Executive Director for Finance & Shared Services. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 585
    ... UK gas demand for 2010/11. Long-term contracts have been signed with E.ON, Iberdrola and Centrica. National Grid Metering and OnStream are investing in technology, such as automated meter reading systems and smart metering respectively, in response to customer requirements. Capital expenditure...

  • Page 586
    ...of business from the disposed gas networks. Operator: BNY99999T EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 1588 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 64 Description: EXHIBIT 15.1 £104m Metering adjusted operating profit £93m UK Property...

  • Page 587
    ...% of New York City's electricity supply. Divestiture of Ravenswood is a condition of the New York Public Service Commission order approving the acquisition of KeySpan by National Grid. On 31 March 2008, we announced that we had entered into an agreement to sell the Ravenswood generation station for...

  • Page 588
    ...balance sheet efficiency as it does not reflect the economic value of the assets of our UK and US regulated businesses. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 35059 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 66 Description: EXHIBIT 15.1 EDGAR 2 £37...

  • Page 589
    ... on the timing of customer payments and exchange rate movements. Our electricity and gas transmission and distribution operations in the UK and US are subject to multi-year rate agreements with regulators. Significant changes in volumes, for example as a consequence of weather conditions, can affect...

  • Page 590
    ... provide a good hedge for revenues and our regulatory asset values that are also RPI linked under our price control formulae in the UK. Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 45238 Y59930.SUB, DocName: EX-15...

  • Page 591
    ... OF NEW YORK Name: NATIONAL GRID CRC: 16065 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 69 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 265.00.00.00 0/7 *Y59930/265/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 592
    ... purchases for our own use relate to the operation of our gas transmission and gas distribution networks, mainly in the UK, while we also purchase fuel for our vehicle fleets in the UK and the US. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 593
    ... to reduce market price volatility and are principally used to manage commodity prices associated with our gas and electricity delivery operations in the US on behalf of our customers. Derivative financial instruments are carried at fair value in the balance sheet and mark-to-market changes in the...

  • Page 594
    ... NEW YORK Name: NATIONAL GRID CRC: 36752 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 72 Description: EXHIBIT 15.1 As at 1 April 2007 Acquisition of KeySpan Exchange movements Pension service cost Expected return less interest Curtailments and settlements Actuarial gains and losses - on plan assets...

  • Page 595
    ... for the ongoing cost of this plan are currently being made at a rate of 32.7% of pensionable payroll. Date: 17-JUN-2008 03:10:51.35 81 Plan assets Our plans in both the UK and the US are trustee administered and the trustees are responsible for setting the investment strategy and monitoring...

  • Page 596
    ... financial statements of National Grid plc and of UK subsidiary companies. Phone: (212)924-5500 Business combinations Individual accounts Financial instruments Carrying value of assets at transition EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 597
    ...electricity transmission and distribution network on behalf of the Long Island Power Authority. BNY Y59930 271.00.00.00 0/5 *Y59930/271/5* Phone: (212)924-5500 Operator: BNY99999T Carrying value of assets and potential for impairments BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK...

  • Page 598
    ... Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 40623 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 76 Description: EXHIBIT 15.1 EDGAR 2 Our energy commitments relate to contractual commitments to purchase electricity or gas to satisfy physical delivery requirements to our customers or for energy...

  • Page 599
    ... OF NEW YORK Name: NATIONAL GRID CRC: 46598 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 77 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 273.00.00.00 0/8 *Y59930/273/8* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 600
    ..., for the year ended 31 March 2008, that: the Company's processes are not designed to report material safety, health and environmental issues for National Grid group, as identified by operational management, to the Directors; the greenhouse gas emissions data (Scope 1 and 2) reported under the...

  • Page 601
    .../274/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 274.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 8830 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 602
    ... EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 87 Phone: (212)924-5500 BNY Y59930 275.00.00.00 0/2 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 56251 Y59930.SUB, DocName: EX-15.1, Doc: 16...

  • Page 603
    ... and day-to-day management of the Company and the execution of its strategy as approved by the Board. Phone: (212)924-5500 BNY Y59930 276.00.00.00 0/9 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T *Y59930/276/9* BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 604
    .../276/9* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 276.00.00.00-1 0/9 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49664 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 605
    ... OF NEW YORK Name: NATIONAL GRID CRC: 31595 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 81 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 277.00.00.00 0/4 *Y59930/277/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 606
    ...Audit Committee's terms of reference. EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9515 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 82 Description: EXHIBIT 15.1 The following sections explain the areas that each Committee has responsibility for and...

  • Page 607
    ...specific risks; receiving reports from the Business Separation Compliance Officer, as required under National Grid Gas plc's gas transporter licences; receiving reports from the Director of Tax and Treasury; reviewing the Company's results statements and Annual Report and Accounts before publication...

  • Page 608
    ... senior employees to deliver value for shareholders and high levels of customer service, safety and reliability in an efficient and responsible manner. The Remuneration Committee sets remuneration policies and practices in line with best practice in the markets in which the Company operates. Further...

  • Page 609
    ... and relevant subsidiaries. The National Grid Disclosure Committee is chaired by the Finance Director and its members are the Company Secretary & General Counsel, the Group Director of Tax and Treasury, the Financial Controller, the Director of Investor Relations, the Head of Internal Audit and the...

  • Page 610
    ... of the Company expects to conclude in its Annual Report on Form 20-F filing with the US Securities and Exchange Commission that the system of internal control over financial reporting was effective as at 31 March 2008. Because KeySpan was acquired by National Grid during the financial year ended 31...

  • Page 611
    ... by National Grid. Graphics that set out the Company's risk profile and any significant changes to this between reporting periods have been designed to aid debate by the Executive, Risk & Responsibility and Audit Committees twice a year. The Audit Committee also reviews the risk management process...

  • Page 612
    ... on the results of operations. Changes in commodity prices could potentially impact our energy delivery businesses. Current regulatory arrangements in the UK and the US provide the ability to pass through virtually all of the increased costs related to commodity prices to consumers. However, if...

  • Page 613
    ...between years may have a significant effect on our results of operations for both gas and electricity businesses. Phone: (212)924-5500 BNY Y59930 285.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 614
    ...Phone: (212)924-5500 [E/O] BNY Y59930 286.00.00.00 0/5 *Y59930/286/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 98 Directors' Report National Grid plc Directors' Report for the year ended 31 March 2008 In accordance with the requirements of the Companies...

  • Page 615
    ... in shares As at the date of this report, National Grid had been notified of the following holdings in voting rights of 3% or more in the issued share capital of the Company: % of voting rights Phone: (212)924-5500 Legal and General Investment Management Ltd Fidelity International Limited 5.69...

  • Page 616
    ... arrangements and place him on a National Grid contract. This now aligns his arrangements with our other Executive Directors and remuneration policy. Details of these payments follow later in the report. Tom, who has joined us from Pacific Gas and Electric Company, has 20 years' experience in...

  • Page 617
    .../288/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 288.00.00.00-1 0/7 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 29579 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 618
    ... of Contents Annual Report and Accounts 2007/08 101 total rewards should be set at levels that are competitive in the relevant market. For UK-based Executive Directors, the primary focus is placed on companies ranked (in terms of market capitalisation) 11-40 in the FTSE 100. This peer group is...

  • Page 619
    ... Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 24401 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 94 Description: EXHIBIT 15.1 EDGAR 2 *Y59930/290/8* Note: Excludes Tom King's Special Retention Award. All-employee share plans Sharesave...

  • Page 620
    ... Annual Report and Accounts 2007/08 salary. At the end of the savings period, these contributions can be used to purchase ordinary shares in National Grid at a discount capped at 20% of the market price set at the launch of the scheme. Share Incentive Plan (SIP): Employees resident in the UK...

  • Page 621
    ...31 March each year is the average of the closing daily TSR levels for the 30 day period up to and including that date. Operator: BNY99999T Executive Directors Steve Holliday Marks and Spencer Group plc Bob Catell (i) Keyera Energy Management Ltd (a), Sovereign Bancorp Inc Advisory Board (b) and JP...

  • Page 622
    ... OF NEW YORK Name: NATIONAL GRID CRC: 23334 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 97 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 293.00.00.00 0/9 *Y59930/293/9* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 623
    ... 106 Directors' Remuneration Report continued National Grid plc 2. Directors' pensions The table below gives details of the Executive Directors' pension benefits in accordance with both Schedule 7A of the Companies Act 1985 and the UK Listing Authority's Listing Rules. Transfer value of increase...

  • Page 624
    ... OF NEW YORK Name: NATIONAL GRID CRC: 7279 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 99 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 295.00.00.00 0/7 *Y59930/295/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 625
    ... Phone: (212)924-5500 [E/O] BNY Y59930 296.00.00.00 0/3 *Y59930/296/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 108 Directors' Remuneration Report continued National Grid plc 3. Directors' interests in share options continued Executive Share Option Plan...

  • Page 626
    ... OF NEW YORK Name: NATIONAL GRID CRC: 37875 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 101 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 297.00.00.00 0/6 *Y59930/297/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 627
    ... by Lattice Group Trustees Limited as trustee of the Lattice Group Employee Share Ownership Trust as at 31 March 2008. *Y59930/298/4* 6. National Grid share price range The closing price of a National Grid ordinary share on 31 March 2008 was 691.5p. The range during the year was 863p (high) and...

  • Page 628
    ...Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 111 Contents of financial statements Directors' statement and independent Auditors' report 112 Statement of Directors' responsibilities 113 Independent Auditors' report to the Members of National Grid plc...

  • Page 629
    ... National Grid plc Statement of Directors' responsibilities The Directors are responsible for preparing the Annual Report and Accounts, including the consolidated financial statements and the Company financial statements and the Directors' Remuneration Report, in accordance with applicable...

  • Page 630
    ...financial statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of the state of the group's affairs as at 31 March 2008 and of its profit and cash flows for the year then ended; BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 631
    ... whether the Board's statements Chartered Accountants and Registered Auditors London 14 May 2008 Phone: (212)924-5500 BNY Y59930 301.00.00.00-1 0/6 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49819...

  • Page 632
    ...National Grid plc Accounting policies for the year ended 31 March 2008 A. Basis of preparation of consolidated financial statements under IFRS National Grid's principal activities involve the transmission and distribution of electricity and gas in Great Britain and the northeastern US. The Company...

  • Page 633
    .../302/8* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 302.00.00.00-1 0/8 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 17041 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 634
    ...- mains, services and regulating equipment 30 to 100 40 Gas plant - storage Gas plant - meters 10 to 33 Wireless infrastructure 20 to 55 Motor vehicles and office equipment up to 10 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 10194 Y59930.SUB, DocName: EX-15...

  • Page 635
    ... less costs to sell and estimated value in use at the date the impairment review is undertaken. Value in use represents the present value of expected future cash flows, discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific...

  • Page 636
    ... statement as a financing charge. L. Revenue Revenue primarily represents the sales value derived from the generation, transmission, and distribution of energy and recovery of US stranded costs together with the sales value derived from the provision of other services to customers during the year...

  • Page 637
    ... in commodity prices recorded in operating costs and changes relating to movements in interest rates recorded in finance costs. Energy purchase contracts for the forward purchase of electricity or gas that are used to satisfy physical delivery requirements to our customers or for energy that we...

  • Page 638
    ... OF NEW YORK Name: NATIONAL GRID CRC: 1576 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 111 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 307.00.00.00 0/1 *Y59930/307/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 639
    ... operations - accounting policy I. Hedge accounting - accounting policy R. Energy purchase contracts - classification as being for normal purchase, sale or usage - accounting policy Q and note 29. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 640
    ... on customer loyalty programmes Phone: (212)924-5500 IFRIC 14 on defined benefit assets and minimum funding requirements Amendment to IAS 1 on the presentation of financial statements IFRS 3R on business combinations BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 641
    ... items on a basis consistent with the current year classification EDGAR 2 The notes on pages 126 to 178 form part of the consolidated financial statements. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 17479 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 114...

  • Page 642
    ... policies, adoption of new accounting standards and the notes to the consolidated financial statements 1 to 38, were approved by the Board of Directors on 14 May 2008 and were signed on its behalf by: BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 13979 Y59930...

  • Page 643
    ... NEW YORK Name: NATIONAL GRID CRC: 53722 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 116 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 312.00.00.00 0/11 *Y59930/312/11* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 124 Consolidated statement...

  • Page 644
    ...OF NEW YORK Name: NATIONAL GRID CRC: 20206 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 117 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 313.00.00.00 0/10 *Y59930/313/10* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 645
    ...distribution in New York and New England, and electricity generation in New York. Other activities primarily relate to non-regulated businesses and other commercial operations not included within the above segments, including UK-based gas metering activities; UK property management; a UK LNG import...

  • Page 646
    ...: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 50173 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 119 Description: EXHIBIT 15.1 Geographical segments UK US Rest of the world Capital expenditure comprises additions to property, plant and equipment and other non-current intangible assets amounting to...

  • Page 647
    ...£m Operator: BNY99999T Phone: (212)924-5500 Depreciation of property, plant and equipment Amortisation of intangible assets Payroll costs Other operating charges: Purchases of electricity* Purchases of gas Rates and property taxes Electricity transmission services scheme direct costs Payments to...

  • Page 648
    ...OF NEW YORK Name: NATIONAL GRID CRC: 21777 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 121 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 317.00.00.00 0/12 *Y59930/317/12* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 649
    ... the US Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley) and audit reports on regulatory returns. Services relating to corporate finance transactions primarily relate to the sale of Basslink, the potential sale of National Grid's property business and the KeySpan...

  • Page 650
    ... OF NEW YORK Name: NATIONAL GRID CRC: 6418 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 123 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 319.00.00.00 0/7 *Y59930/319/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 651
    ... gain on sale of subsidiary undertaking Interest cost Expected return on plan assets Total in finance costs - continuing Current service costs Interest cost Expected return on plan assets Curtailment/settlement gain on sale of distribution networks Total in discontinued operations 5 125 5 (16...

  • Page 652
    ... Assets distributed on settlements and transfers Transfers (out)/in Employer contributions Employee contributions Acquisition of subsidiary undertakings Benefits paid Transferred to liabilities of businesses held for sale Exchange adjustments Closing fair value of plan assets Actual return on plan...

  • Page 653
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 134 Notes to the consolidated financial statements continued National Grid plc 6. Finance income and costs 2008 £m 2007 £m 2006 £m Interest income and similar income Expected return on pension and other post-retirement benefit plan...

  • Page 654
    ... OF NEW YORK Name: NATIONAL GRID CRC: 42051 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 127 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 323.00.00.00 0/9 *Y59930/323/9* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 655
    ... in these financial statements. However, the impact of the changes to the industrial building allowance regime is expected to have a £40m tax charge impact. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 10692 Y59930.SUB, DocName: EX-15...

  • Page 656
    ... NEW YORK Name: NATIONAL GRID CRC: 15131 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 129 Description: EXHIBIT 15.1 In addition, the Directors are proposing a final dividend for 2008 of 21.3p per share that will absorb approximately £531m of shareholders' equity. It will be paid on 20 August 2008...

  • Page 657
    ... financial statements continued National Grid plc 10. Earnings per share Earnings per ordinary share have been calculated by dividing the profit for the year attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year...

  • Page 658
    ... OF NEW YORK Name: NATIONAL GRID CRC: 6834 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 131 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 327.00.00.00 0/5 *Y59930/327/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 659
    ... financial statements continued National Grid plc 12. Other intangible assets Software £m Acquisitionrelated £m Other £m Total £m Non-current Cost at 1 April 2006 Exchange adjustments Acquisition of subsidiary undertakings Additions Reclassification to assets of businesses held for sale Cost...

  • Page 660
    ... March 2008 was £193m (2007: £107m). Additions during the year include £26m (2007: £1m) of property, plant and equipment held under finance leases. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 64303 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 661
    ... date is the fair value of the financial investments. For further information on our treasury-related credit risk, refer to note 33. None of the financial investments is past due or impaired. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 662
    ... OF NEW YORK Name: NATIONAL GRID CRC: 43541 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 135 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 331.00.00.00 0/5 *Y59930/331/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 663
    ...15.1 Phone: (212)924-5500 [E/O] BNY Y59930 332.00.00.00 0/5 *Y59930/332/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 144 Notes to the consolidated financial statements continued National Grid plc 17. Derivative financial instruments Our use of derivatives...

  • Page 664
    ... OF NEW YORK Name: NATIONAL GRID CRC: 47917 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 137 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 333.00.00.00 0/6 *Y59930/333/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 665
    ... at year-end exchange rates. For further information on currency exposures, refer to note 33. National Grid USA and its public utility subsidiaries (all consolidated subsidiaries) are subject to restrictions on the payment of dividends by administrative order and contract. At 31 March 2008, £51m...

  • Page 666
    ... risk, refer to note 34. All other noncurrent liabilities are recorded at amortised cost. The fair value of other payables at 31 March 2008 was £332m (2007: £204m). BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 40541 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 667
    ...SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 37227 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 140 Description: EXHIBIT 15.1 Emissions provision The provision for emission costs is expected to be settled using emissions allowances granted. Restructuring provision At 31 March 2008, £32m...

  • Page 668
    ... 2008. The nominal value of these shares was £0.3m and the total proceeds received were £10m. (iii) During the year the Company made gifts totalling £6m to National Grid Employee Share Trusts, outside of its share repurchase programme, to enable the trustees to make purchases of National Grid plc...

  • Page 669
    ... 2008. Included within total equity is a deduction of £570m for treasury shares (31 March 2007: £nil). Further purchases of shares relating to employee share schemes were made for an aggregate consideration of £6m. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 670
    ... OF NEW YORK Name: NATIONAL GRID CRC: 7022 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 143 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 339.00.00.00 0/6 *Y59930/339/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 671
    ...resulted in changes to the carrying value of borrowings and financial investments as at 1 April 2005. (ii) Includes interest. Accrued interest at 31 March 2008 was £(225)m. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 19360 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 672
    ... one year of acquisition dates. The principal items outstanding include the fair values of tax liabilities, contingent and unrecorded liabilities and businesses held for sale. The majority of the acquired operations relate to gas distribution and electricity distribution and generation activities...

  • Page 673
    ... NEW YORK Name: NATIONAL GRID CRC: 13396 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 146 Description: EXHIBIT 15.1 Energy commitments relate to contractual commitments to purchase electricity or gas that are used to satisfy physical delivery requirements to our customers or for energy that we use...

  • Page 674
    ... OF NEW YORK Name: NATIONAL GRID CRC: 1583 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 147 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 343.00.00.00 0/11 *Y59930/343/11* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 675
    ... deficit paid off by March 2017. In addition, the Company agreed to put in place triggers which would bring forward payment of the outstanding deficit. The conditions under which payment of the outstanding deficit would be made are if National Grid Electricity Transmission plc (NGET) ceases to hold...

  • Page 676
    ... shares of National Grid plc with a value of £24m (2007: £24m). (ii) Included within corporate bonds is an investment in a bond issued by a subsidiary undertaking with a value of £20m (2007: £nil). Phone: (212)924-5500 In respect of UK schemes, the expected long-term rate of return on assets...

  • Page 677
    ...: EX-15.1, Doc: 16, Page: 150 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 346.00.00.00 0/7 *Y59930/346/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 158 Notes to the consolidated financial statements continued National Grid plc 31...

  • Page 678
    ... OF NEW YORK Name: NATIONAL GRID CRC: 43737 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 151 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 347.00.00.00 0/7 *Y59930/347/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 679
    ... and hedges financial risks in close co-operation with the operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments...

  • Page 680
    ... directly affected by interest rate risk, such as investments in equity, foreign exchange forward contracts or other similar financial instruments. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 28123 Y59930.SUB, DocName: EX-15.1, Doc: 16...

  • Page 681
    ... related credit risk Counterparty risk arises from the investment of surplus funds and from the use of derivative instruments. As at 31 March 2008 the following limits were in place for investments held with banks and financial institutions: Maximum limit £m Long-term limit £m Rating AAA rated...

  • Page 682
    ... OF NEW YORK Name: NATIONAL GRID CRC: 30617 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 155 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 351.00.00.00 0/4 *Y59930/351/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 683
    ...US dollar exchange rate changed by 10%. EDGAR 2 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 6703 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 156 Description: EXHIBIT 15.1 (e) Capital and risk management National Grid's objectives when managing capital are...

  • Page 684
    ... OF NEW YORK Name: NATIONAL GRID CRC: 1169 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 157 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 353.00.00.00 0/5 *Y59930/353/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 685
    ... OF NEW YORK Name: NATIONAL GRID CRC: 3067 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 158 Description: EXHIBIT 15.1 [E/O] EDGAR 2 *Y59930/354/6* KeySpan Gas East Corporation (i) (National Grid Energy Delivery Long Island) KeySpan Ravenswood LLC (i) National Grid Electricity Transmission plc...

  • Page 686
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 167 35. Bonds and facilities continued Issuer Original Notional Value Description of instrument Due New England Power Company National Grid Gas Holdings plc National Grid Gas plc National Grid plc...

  • Page 687
    ... Description of instrument Due Bank loans and other loans National Grid plc National Grid Grain LNG Limited National Grid Electricity Transmission plc National Grid Gas plc National Grid USA (i) Issued during the year ended 31 March 2008. USD 150m GBP 120m GBP 140m GBP 200m GBP 200m GBP 200m GBP...

  • Page 688
    ... OF NEW YORK Name: NATIONAL GRID CRC: 18348 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 161 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 357.00.00.00 0/4 *Y59930/357/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 689
    ... financial statements continued National Grid plc 36. Share options and reward plans continued Share options Movement in options to subscribe for ordinary shares under the Company's various options schemes for the three years ended 31 March 2008 is shown below and includes those options related...

  • Page 690
    ... business combination with Lattice Group plc); and (iii) implied volatility of comparator companies where options in their shares are traded. Awards under other share scheme plans The average share prices and fair values at the date share awards were granted during each of the three financial years...

  • Page 691
    ...Principal activity BNY Y59930 360.00.00.00 0/4 Date: 17-JUN-2008 03:10:51.35 *Y59930/360/4* National Grid Gas plc (i) National Grid Electricity Transmission plc (i) New England Power Company (incorporated in the US) (i) Massachusetts Electric Company (incorporated in the US) (i) The Narragansett...

  • Page 692
    ... Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 173 38. National Grid Gas plc and Niagara Mohawk Power Corporation additional disclosures The following condensed consolidating financial information, comprising income statements...

  • Page 693
    ...: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 174 Notes to the consolidated financial statements continued National Grid plc 38. National Grid Gas plc and Niagara Mohawk Power Corporation additional disclosures continued Summary income statement for the year ended 31...

  • Page 694
    ... EX-15.1, Doc: 16, Page: 167 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 363.00.00.00 0/5 *Y59930/363/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 175 38. National Grid Gas plc and Niagara Mohawk Power...

  • Page 695
    ... Phone: (212)924-5500 [E/O] BNY Y59930 364.00.00.00 0/3 *Y59930/364/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 176 Notes to the consolidated financial statements continued National Grid plc 38. National Grid Gas plc and Niagara Mohawk Power Corporation...

  • Page 696
    ... EX-15.1, Doc: 16, Page: 169 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 365.00.00.00 0/4 *Y59930/365/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts 2007/08 177 38. National Grid Gas plc and Niagara Mohawk Power...

  • Page 697
    ... Phone: (212)924-5500 [E/O] BNY Y59930 366.00.00.00 0/6 *Y59930/366/6* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 178 Notes to the consolidated financial statements continued National Grid plc 38. National Grid Gas plc and Niagara Mohawk Power Corporation...

  • Page 698
    ... OF NEW YORK Name: NATIONAL GRID CRC: 44202 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 171 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 367.00.00.00 0/4 *Y59930/367/4* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 699
    ... OF NEW YORK Name: NATIONAL GRID CRC: 10786 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 172 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 368.00.00.00 0/3 *Y59930/368/3* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 180 Company accounting...

  • Page 700
    ... statements of the Company, which were approved by the Board of Directors on 14 May 2008 and were signed on its behalf by: Sir John Parker Chairman Steve Lucas Finance Director Phone: (212)924-5500 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID...

  • Page 701
    ... Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents 182 Notes to the Company financial statements National Grid plc Notes to the Company financial statements 1. Adoption of new accounting standards New financial reporting standards (FRS) and abstracts adopted in 2007/08 During the year...

  • Page 702
    ... OF NEW YORK Name: NATIONAL GRID CRC: 27252 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 175 Description: EXHIBIT 15.1 Phone: (212)924-5500 [E/O] BNY Y59930 371.00.00.00 0/5 *Y59930/371/5* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Table of Contents Annual Report and Accounts...

  • Page 703
    ... 31 March 2008. The consideration has been charged against retained earnings. (ii) (iii) Phone: (212)924-5500 For further details on share capital, refer to note 25 in the consolidated financial statements. BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 9165...

  • Page 704
    ... for varying terms from 3 years to open-ended. The Company has also guaranteed the lease obligations of a former associate to a subsidiary undertaking, amounting to £13m (2007: £23m). 11. Directors and employees BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC...

  • Page 705
    ... applicable to UK listed companies, including National Grid. finance lease BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27711 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 178 Description: EXHIBIT 15.1 EDGAR 2 financial year FRS [E/O] carrying value...

  • Page 706
    .../374/7* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 374.00.00.00-1 0/7 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 27711 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 707
    .... It relates to one specific (acute) identifiable incident which arises as a result of National Grid's premises, plant or activities, which was reported to the supervisor at the time and was subject to appropriate investigation. Date: 17-JUN-2008 03:10:51.35 H HSE Health & Safety Executive, the...

  • Page 708
    ... at the date control was acquired by National Grid. Petawatt hour, being an amount of energy equal to delivering 1 billion watts of power for 1 million hours. tonnes CO 2 equivalent TWh provision BNY Y59930 376.00.00.00 0/5 *Y59930/376/5* purchase accounting U UK UK GAAP The United Kingdom...

  • Page 709
    ...consolidated financial statements of National Grid for the five financial years ended 31 March 2008. It should be read in conjunction with the consolidated financial statements and related notes, together with the Operating and Financial Review. The information presented below for the years ended 31...

  • Page 710
    ... your stockbroker, bank manager, accountant or other independent financial advisor authorised pursuant to the Financial Services and Markets Act 2000. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 30585 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 711
    ... movement of National Grid's share price during 2007/08. A graph showing the total shareholder return over the last five years is available on page 104. Phone: (212)924-5500 BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 55081 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 712
    ...the Annual Report and Accounts for the year ended 31 March 2008 for National Grid and its subsidiaries. It contains the Directors' Report and Financial Statements, together with the Independent Auditor's Report thereon, as required by the UK Companies Act 1985. The Annual Review of National Grid for...

  • Page 713
    .../380/9* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 380.00.00.00-1 0/9 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 49762 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 714
    ...10:51.35 EDGAR 2 Table of Contents Phone: (212)924-5500 BNY Y59930 381.00.00.00 0/3 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 23483 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 185 Description: EXHIBIT...

  • Page 715
    ...-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20188 Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 186 Description: EXHIBIT 15.1 [E/O] EDGAR 2 *Y59930/382/1* National Grid plc 1-3 Strand, London WC2N 5EH, United Kingdom...

  • Page 716
    .../382/1* Operator: BNY99999T Date: 17-JUN-2008 03:10:51.35 EDGAR 2 Phone: (212)924-5500 BNY Y59930 382.00.00.00-1 0/1 Date: 17-JUN-2008 03:10:51.35 Operator: BNY99999T BOWNE INTEGRATED TYPESETTING SYSTEM Site: BOWNE OF NEW YORK Name: NATIONAL GRID CRC: 20188 Y59930.SUB, DocName: EX-15.1, Doc...

  • Page 717
    ...SYSTEM Site: BOWNE OF NEW YORK Name: * Validation: N * Lines: * CRC: * Y59930.SUB, DocName: EX-15.2, Doc: 17 Phone: (212)924-5500 * BNY * Operator: BNY99999T *DOCHDR/17* DOCHDR 17 Date: 17-JUN-2008 03:10:51.35 EX-15.2 y59930exv15w2.htm EX-15...

  • Page 718
    ...) of National Grid plc of our report dated May 14, 2008 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Annual Report on Form 20-F. /S/ PRICEWATERHOUSECOOPERS LLP PricewaterhouseCoopers LLP London, UK June 17, 2008 Phone...