National Grid Set to Lower New Hampshire Natural Gas Rates by 17 Percent

WALTHAM, MA (03/15/2012)(readMedia)-- There's more good news on the way for National Grid's New Hampshire natural gas customers: their bills are going to go down. Based on the rates filed today, the company's residential customers can expect to see a 17 percent reduction in their monthly bills starting May 1 and continuing through October of this year, compared to 2011 rates paid during the same period. The lower rate is the result of the lower price National Grid is paying to purchase natural gas for its customers and is subject to approval by the New Hampshire Public Utilities Commission.

"Energy costs are a big part of everyone's budget. We want our customers to know we're here for them to help manage those costs. We hope this substantial decrease will provide a boost for residential and business customers alike," said Timothy F. Horan, National Grid's president in New Hampshire. "Lower natural gas prices also can impact the price of electricity because nearly 40 percent of the electricity used in New England is generated by natural gas. We expect our electricity customers will see a significant decrease in their bills too starting in May, providing more financial relief for all of our New Hampshire customers."

The company expects to announce next week how much electricity prices will fall.

The natural gas commodity rates filed today are approximately 32 percent less than rates from May through October in 2011. That translates into a 17 percent net reduction on the monthly bill of a typical residential heating customer using 53 therms of natural gas each month. An average monthly bill is expected to decrease by $12, from $73 to $61.

The lower cost of gas for the coming months continues a trend that customers have seen for the past several years. Wholesale natural gas prices have declined consistently since March 2009. Prices are expected to at least remain stable through 2012. The abundant domestic supply of natural gas, an unusually warm winter and nearly full storage capacity are cited as the primary reasons for lower prices.

NATIONAL GRID

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

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

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

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

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