NRC Approval for Proposed Merger of NEES & EUA
National Grid Group PLC
28 February 2000
The National Grid Group plc is pleased to announce that New
England Electric System has received Nuclear Regulatory
Commission approval for its proposed merger with Eastern
Utilities Associates.
The text of the announcement made today by NEES:
NRC APPROVES NEES/EUA MERGER
The U.S. Nuclear Regulatory Commission (NRC) has approved the
proposed merger between New England Electric System (NEES) and
Eastern Utilities Associates (EUA), according to NEES President
and Chief Executive Officer Rick Sergel.
'We continue our progress toward completing this merger early
this year, and look forward to delivering to customers the
savings it will provide,' Sergel said.
The NRC approval was necessary because Montaup Electric Company,
a subsidiary of EUA, holds a minority ownership interest in the
Millstone 3 nuclear unit, Vermont Yankee, and the following
permanently retired units: Connecticut Yankee, Maine Yankee, and
Yankee Atomic.
On February 1, 1999, NEES announced its intention to acquire EUA.
Since then, the proposed merger has been approved by the Federal
Energy Regulatory Commission, and has received Hart-Scott-Rodino
clearance from the Department of Justice and the Federal Trade
Commission. The merger also must be approved by the Securities
and Exchange Commission and regulators in Massachusetts and Rhode
Island. Merger rate settlements are pending approval by
regulators in both states. The settlements, which will take
effect after the NEES/EUA merger is complete, provide substantial
savings for Massachusetts and Rhode Island customers through
multi-year rate reductions and rate freezes.
Once complete, the merger will result in a combined company that
serves 1.6 million customers in 228 communities throughout
Massachusetts, Rhode Island, and New Hampshire.
On December 14, 1998, The National Grid Group plc (LSE, NYSE:NGG)
announced that it would merge with NEES. Upon completion of
that merger, NEES will become a wholly owned subsidiary of
National Grid Group. The NEES/EUA merger is not contingent upon
the NEES/National Grid merger.
NEES (NYSE:NES), a public utility holding company based in
Westborough, Massachusetts, serves approximately 1.3 million
customers through its subsidiaries Massachusetts Electric
Company, Narragansett Electric Company, Granite State Electric
Company, and Nantucket Electric Company.
EUA (NYSE:EUA) is a public utility holding company based in West
Bridgewater, Massachusetts. Subsidiaries Eastern Edison Company,
Blackstone Valley Electric Company, and Newport Electric
Corporation deliver electricity to more than 300,000 customers in
southeastern Massachusetts and Rhode Island.
Contact
National Grid Investor Relations +44 (0) 171 620 9191
Jill Sherratt (mobile 0468 490807)
Diane Boddy +44 (0) 171 620 9126
Elizabeth Ross-Roberts +44 (0) 171 620 9521
Citigate Dewe Rogerson +44 (0) 171 638 9571
Anthony Carlisle (mobile 0973 611888)
Latest directors dealings
- 1 hour ago Johnson Matthey
- 2 hours ago Galliford Try
- 2 hours ago Galliford Try
- 2 hours ago Centrica
- 3 hours ago Smith & Nephew