Proposed Merger with NESS

NATIONAL GRID GROUP PLC
22 October 1999

The National Grid Group plc (NGG)


             ORDER ISSUED ON NGG/NEES MERGER
            BY NUCLEAR REGULATORY COMMISSION


The Nuclear Regulatory Commission (NRC) yesterday issued
an order related to the proposed acquisition of New
England Electric System (NEES) by the National Grid Group
plc (NGG).

In the order, the NRC granted a request for hearing by
three Northeast Utilities (NU) subsidiaries, and directed
NEES, National Grid and the NU subsidiaries to confer
promptly and determine whether this proceeding could be
settled without the need for a hearing.  In the event the
parties do not reach a settlement satisfactory to the
NRC, the hearing is scheduled for January 12, 2000.  If a
hearing is held, the NRC stated it expects to issue a
final order on the merger by April 3, 2000.

The hearing was requested by NU subsidiaries Connecticut
Light and Power Company, Western Massachusetts Electric
Company, and North Atlantic Energy Corporation, to
address questions related to foreign ownership and
whether NEES subsidiary New England Power Company (NEP)
will continue to meet financial qualifications standards
under the Atomic Energy Act.

National Grid and NEES believe they can satisfy the NRC
as to the two issues raised for hearing.

The merger requires NRC approval to transfer licences for
NEP's minority ownership interests in nuclear power
plants including Millstone 3 and Seabrook, of which NU is
the lead owner.

The $3.2 billion merger was announced on December 14,
1998.  The merger has been approved, or received the
necessary support from, the Federal Energy Regulatory
Commission, the Department of Justice/Federal Trade
Commission, the Committee on Foreign Investment, and the
state regulatory agencies in Massachusetts, Rhode Island,
New Hampshire, Vermont and Connecticut.  The only
remaining approval other than the NRC is the Securities
Exchange Commission.

Contact

National Grid
Investor Relations                 [phone]
Jill Sherratt                      (mobile:  [phone])
Diane Boddy                        [phone]

Citigate Dewe Rogerson             [phone]
Anthony Carlisle                   (mobile:  [phone])
Sue Pemberton
Duncan Murray