1. National Grid USA Oil Overview 2007 Fuel Oil/Energy Buyer’s Conference October 30, 2007 Miami Beach, Florida

2. Who is National Grid • Largest utility in the UK and the second largest utility in the US • Based in both the United Kingdom and the US • Principal business is the transmission and distribution of electricity and natural gas • 28,000 employees (18,000-US, 10,000-UK) • Owns 6,650 megawatts of generating capacity, one of the largest in the Northeast US

3. Who is National Grid (cont’d) • Key Events • 2007 Acquired KeySpan • 2006 Acquired Rhode Island Gas Distribution network • 2005 National Grid Transco rebranded as National Grid • 2002 National Grid merged with Lattice to form National Grid Transco • 2002 Acquired Niagra Mohawk Power Corp • 2000 Acquired New England Electric System and Eastern Utilities Associates • 1995 National Grid listed on the London Stock Exchange • 1990 National Grid established following UK electricity privatization • Largest investor-owned electric generator in New York State • Operates Long Island Power Authority electric system serving 1.1 million customers • Largest distributor of natural gas in the Northeast US

4. Electricity Distribution Operating Area - US

5. KeySpan Energy Trading Services • “Energy Manager” for the Long Island Power Authority (LIPA), managing the fuel requirements for the electric generating plants • Procure, transport, store & deliver gas, oil and purchased power • Trade gas, electric, NOx & SO2 emission credits

6. Electric Generation CapacitySteam Fired

7. Other - Electric Capacity • Gas Turbines (42 Units ): 1660 Mw • Fuel: • Kerosene: 626 Mw • No. 2 Oil: 536 Mw • Dual: Natural Gas & No. 2 Oil: 326 Mw • Dual: Natural Gas & Kerosene: 160 Mw • Diesel Oil: 12 Mw • Ravenswood: 2400 Mw • Steam: 1750 Mw • Dual: Natural Gas & Residual Fuel Oil • Combined Cycle: 250 Mw • Dual: Natural Gas & Kerosene • Gas Turbine: 400 Mw • Dual: Natural Gas & Kerosene

9. Fuel Types & Grades • No. 6 Residual Fuel Oil - Low Sulfur • 0.7% S, 0.37% S & 0.30% S • No. 2 GasTurbine Fuel Oil • Kerosene • Diesel Fuel Oil

10. Inventory Control • Availability of More Economic Natural Gas & Purchase Power • Target Levels - Seasonal • Unit Outages

11. Inventory (Reg. Co.) • No. 6 Resid Fuel Oil – 2.2 mil. bbls • 0.7% S at Northport & Port Jefferson • 0.37% S at E F Barrett • Kerosene - 6.6 mil gal.@10 sites • No.2 Fuel Oil– 5.4 mil gal.@7 sites • Diesel Fuel Oil – 77,000 gal.@ 2 sites

12. Historical Consumption (Reg. Co.) Resid Fuel OilKero & No. 2 Oil (Barrels) (Gallons) • 2002: 9,800,000 61,160,000 • 2003: 12,900,000 73,900,000 • 2004: 12,700,000 43,000,000 • 2005: 13,200,000 44,700,000 • 2006: 5,310,000 21,600,000 • 2007: 6,670,000 (est.) 25,600,000 (est.)

13. Number of Deliveries • Truck deliveries • 1,360 (2006), 1,960 (2005) • 17 generating sites • Waterborne deliveries • 68 (2006), 171 (2005) • 4 generating sites

14. Residual Fuel Oil Quality

15. Kerosene Quality- Barge Delivered

16. Kerosene Quality- Truck Delivered

17. No.2 Oil Quality- Truck Delivered

18. Delivery Logistics • Residual Fuel Oil: • Barges (100,000 &13,000 barrels) • Ships (300,000 barrels) • Kerosene/No.2 Gas Turbine Oil: • Trucks (12,000 & 7,500 gal.) • Barges (30,000 barrels)

19. Seaborne Logistics

20. Procurement • FOB delivered • One or two year term contracts, allowance for spot purchases • Resid price is based on 5 day spot posting average, Distillate price is based on 3 day spot posting average • 10 day payment terms for waterborne deliveries, 30 days for truck deliveries