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

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