1st Apr 2008 07:00
National Grid PLC01 April 2008 31 March 2008 NATIONAL GRID plc Sale of Ravenswood generating station for $2.9 billion National Grid plc ("National Grid") is pleased to announce that it has signed anagreement to sell its 2,480 megawatt Ravenswood Generating Station in New YorkCity to TransCanada Corporation for a total cash consideration* of $2.9 billion,payable upon completion of the sale. "We are delighted with the outcome of this process. Not only have we quicklydelivered on our obligations to the New York Public Service Commission to sellRavenswood but we have also delivered value for our shareholders" said SteveHolliday, Chief Executive of National Grid. "I am pleased that we have reachedagreement with TransCanada, which has an excellent track record in operatingpower plants; I'm sure they will do a great job managing Ravenswood in thefuture." The sale is subject to regulatory approvals from the Federal Energy RegulatoryCommission, the New York Public Service Commission and clearance under USanti-trust and foreign investment laws. Subject to these approvals, NationalGrid expects to complete the sale by summer 2008. Proceeds from the sale of Ravenswood will be used for general corporatepurposes. Ravenswood Generating Station, a 2,480 megawatt facility in Queens, N.Y. isprimarily fueled by natural gas, and provides over 20 percent of New York City'selectricity supply. Ravenswood was acquired as part of National Grid'sacquisition of KeySpan in August 2007. Divestiture of Ravenswood was a conditionof the New York Public Service Commission order approving the acquisition ofKeySpan by National Grid and as a consequence it was classified by National Gridwithin discontinued operations since the acquisition of KeySpan.** Merrill Lynch & Co. Inc. is financial advisor to National Grid in thetransaction. CONTACTS InvestorsGeorge Laskaris +1 718 403 2526 +1 917 375 0989 (m)Richard Smith +44 (0)20 7004 3172 +44 (0)7747 006321 (m) MediaClive Hawkins +44 (0)20 7004 3147 +44 (0)7836 357173 (m)Chris Mostyn +1 718 403 2747 +1 347 702 3740 (m) BrunswickPaul Scott +44 (0)20 7396 5333 +44 (0)7974 982333 (m) * Including working capital, fuel stocks and lease prepayment; subject tocustomary closing adjustments. ** Due to the requirement to sell Ravenswood as part of the regulatory processto approve National Grid's acquisition of Keyspan, it has been classified asdiscontinued operations by National Grid. The gross asset value of Ravenswood inKeySpan's last audited accounts under US GAAP as at December 31, 2006 was $1.2bnand it achieved operating income of $138m in the year ended December 31, 2006. About National Grid National Grid (LSE: NG.; NYSE:NGG) is an international electricity and gascompany and one of the largest investor-owned energy companies in the world. In the US, National Grid delivers electricity to approximately 3.3 millioncustomers in Massachusetts, New Hampshire, New York and Rhode Island, andmanages the electricity network on Long Island under an agreement with the LongIsland Power Authority (LIPA). Following the divesture of Ravenswood, NationalGrid no longer has an interest in merchant generation, but remains the largestinvestor owned power producer in New York State, owning over 4,000 megawatts ofcontracted electricity generation that provides power to over one million LIPAcustomers. It is also the largest distributor of natural gas in the northeasternU.S., serving approximately 3.4 million customers in New York, Massachusetts,New Hampshire and Rhode Island. National Grid owns the high-voltage electricity transmission network in Englandand Wales and operates the system across Great Britain. It also owns andoperates the high pressure gas transmission system in Britain and itsdistribution business delivers gas to 11 million homes and businesses. NationalGrid also has a number of related businesses such as LNG importation andstorage, land remediation and metering. About TransCanada With more than 50 years experience, TransCanada is a leader in the responsibledevelopment and reliable operation of North American energy infrastructureincluding natural gas pipelines, power generation, gas storage facilities, andprojects related to oil pipelines and LNG facilities. TransCanada's network ofwholly owned pipelines extends more than 59,000 kilometres (36,500 miles),tapping into virtually all major gas supply basins in North America. TransCanadais one of the continent's largest providers of gas storage and related serviceswith approximately 355 billion cubic feet of storage capacity. A growingindependent power producer, TransCanada owns, or has interests in, approximately7,700 megawatts of power generation in Canada and the United States.TransCanada's common shares trade on the Toronto and New York stock exchangesunder the symbol TRP. CAUTIONARY STATEMENT This announcement contains certain statements that are neither reportedfinancial results nor other historical information. These statements areforward-looking statements within the meaning of Section 27A of the SecuritiesAct of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,as amended. These statements include information with respect to National Grid'sfinancial condition, National Grid's results of operations and businesses,strategy, plans and objectives. Words such as "anticipates", "expects","intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue","project" and similar expressions, as well as statements in the future tense,identify forward-looking statements. These forward-looking statements are notguarantees of National Grid's future performance and are subject to assumptions,risks and uncertainties that could cause actual future results to differmaterially from those expressed in or implied by such forward-lookingstatements. Many of these assumptions, risks and uncertainties relate to factorsthat are beyond National Grid's ability to control or estimate precisely, suchas delays in obtaining, or adverse conditions contained in, regulatory approvalsand contractual consents, unseasonable weather affecting the demand forelectricity and gas, competition and industry restructuring, changes in economicconditions, currency fluctuations, changes in interest and tax rates, changesin energy market prices, changes in historical weather patterns, changes inlaws, regulations or regulatory policies, developments in legal or public policydoctrines, the impact of changes to accounting standards and technologicaldevelopments. Other factors that could cause actual results to differ materiallyfrom those described in this announcement include the ability to integrate thebusinesses relating to announced or recently completed acquisitions withNational Grid's existing business to realise the expected synergies from suchintegration, the availability of new acquisition opportunities and the timingand success of future acquisition opportunities, the timing and success or otherimpact of the sales of National Grid's non-core businesses, the failure for anyreason to achieve reductions in costs or to achieve operational efficiencies,the failure to retain key management, the behaviour of UK electricity marketparticipants on system balancing, the timing of amendments in prices to shippersin the UK gas market, the performance of National Grid's pension schemes and theregulatory treatment of pension costs, and any adverse consequences arising fromoutages on or otherwise affecting energy networks, including gas pipelines ownedor operated by National Grid. For a more detailed description of some of theseassumptions, risks and uncertainties, together with any other risk factors,please see National Grid's filings with and submissions to the US Securities andExchange Commission (the "SEC") (and in particular the "Risk Factors" and"Operating and Financial Review" sections in its most recent Annual Report onForm 20-F). Except as may be required by law or regulation, National Gridundertakes no obligation to update any of its forward-looking statements. Theeffects of these factors are difficult to predict. New factors emerge from timeto time and National Grid cannot assess the potential impact of any such factoron its activities or the extent to which any factor, or combination of factors,may cause results to differ materially from those contained in anyforward-looking statement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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