Sale of Ravenswood

National Grid PLC
01 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 an
agreement to sell its 2,480 megawatt Ravenswood Generating Station in New York
City 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 quickly
delivered on our obligations to the New York Public Service Commission to sell
Ravenswood but we have also delivered value for our shareholders' said Steve
Holliday, Chief Executive of National Grid. 'I am pleased that we have reached
agreement with TransCanada, which has an excellent track record in operating
power plants; I'm sure they will do a great job managing Ravenswood in the
future.'

The sale is subject to regulatory approvals from the Federal Energy Regulatory
Commission, the New York Public Service Commission and clearance under US
anti-trust and foreign investment laws. Subject to these approvals, National
Grid expects to complete the sale by summer 2008.

Proceeds from the sale of Ravenswood will be used for general corporate
purposes.

Ravenswood Generating Station, a 2,480 megawatt facility in Queens, N.Y. is
primarily fueled by natural gas, and provides over 20 percent of New York City's
electricity supply. Ravenswood was acquired as part of National Grid's
acquisition of KeySpan in August 2007. Divestiture of Ravenswood was a condition
of the New York Public Service Commission order approving the acquisition of
KeySpan by National Grid and as a consequence it was classified by National Grid
within discontinued operations since the acquisition of KeySpan.**

Merrill Lynch & Co. Inc. is financial advisor to National Grid in the
transaction.



CONTACTS


Investors
George Laskaris    [phone]         [phone] (m)
Richard Smith      [phone]     [phone] (m)


Media
Clive Hawkins      [phone]     [phone] (m)
Chris Mostyn       [phone]         [phone] (m)


Brunswick
Paul Scott         [phone]     [phone] (m)



* Including working capital, fuel stocks and lease prepayment; subject to
customary closing adjustments.

** Due to the requirement to sell Ravenswood as part of the regulatory process
to approve National Grid's acquisition of Keyspan, it has been classified as
discontinued operations by National Grid. The gross asset value of Ravenswood in
KeySpan's last audited accounts under US GAAP as at December 31, 2006 was $1.2bn
and 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 gas
company and one of the largest investor-owned energy companies in the world.

In the US, National Grid delivers electricity to approximately 3.3 million
customers in Massachusetts, New Hampshire, New York and Rhode Island, and
manages the electricity network on Long Island under an agreement with the Long
Island Power Authority (LIPA). Following the divesture of Ravenswood, National
Grid no longer has an interest in merchant generation, but remains the largest
investor owned power producer in New York State, owning over 4,000 megawatts of
contracted electricity generation that provides power to over one million LIPA
customers. It is also the largest distributor of natural gas in the northeastern
U.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 England
and Wales and operates the system across Great Britain. It also owns and
operates the high pressure gas transmission system in Britain and its
distribution business delivers gas to 11 million homes and businesses. National
Grid also has a number of related businesses such as LNG importation and
storage, land remediation and metering.



About TransCanada

With more than 50 years experience, TransCanada is a leader in the responsible
development and reliable operation of North American energy infrastructure
including natural gas pipelines, power generation, gas storage facilities, and
projects related to oil pipelines and LNG facilities. TransCanada's network of
wholly owned pipelines extends more than 59,000 kilometres (36,500 miles),
tapping into virtually all major gas supply basins in North America. TransCanada
is one of the continent's largest providers of gas storage and related services
with approximately 355 billion cubic feet of storage capacity. A growing
independent power producer, TransCanada owns, or has interests in, approximately
7,700 megawatts of power generation in Canada and the United States.
TransCanada's common shares trade on the Toronto and New York stock exchanges
under the symbol TRP.



CAUTIONARY STATEMENT

This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act 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's
financial 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 not
guarantees of National Grid's future performance and are subject to assumptions,
risks and uncertainties that could cause actual future results to differ
materially from those expressed in or implied by such forward-looking
statements. Many of these assumptions, risks and uncertainties relate to factors
that are beyond National Grid's ability to control or estimate precisely, such
as delays in obtaining, or adverse conditions contained in, regulatory approvals
and contractual consents, unseasonable weather affecting the demand for
electricity and gas, competition and industry restructuring, changes in economic
conditions, currency fluctuations, changes in interest and tax rates,  changes
in energy market prices, changes in historical weather patterns, changes in
laws, regulations or regulatory policies, developments in legal or public policy
doctrines, the impact of changes to accounting standards and technological
developments. Other factors that could cause actual results to differ materially
from those described in this announcement include the ability to integrate the
businesses relating to announced or recently completed acquisitions with
National Grid's existing business to realise the expected synergies from such
integration, the availability of new acquisition opportunities and the timing
and success of future acquisition opportunities, the timing and success or other
impact of the sales of National Grid's non-core businesses, the failure for any
reason to achieve reductions in costs or to achieve operational efficiencies,
the failure to retain key management, the behaviour of UK electricity market
participants on system balancing, the timing of amendments in prices to shippers
in the UK gas market, the performance of National Grid's pension schemes and the
regulatory treatment of pension costs, and any adverse consequences arising from
outages on or otherwise affecting energy networks, including gas pipelines owned
or operated by National Grid.  For a more detailed description of some of these
assumptions, risks and uncertainties, together with any other risk factors,
please see National Grid's filings with and submissions to the US Securities and
Exchange Commission (the 'SEC') (and in particular the 'Risk Factors' and
'Operating and Financial Review' sections in its most recent Annual Report on
Form 20-F).  Except as may be required by law or regulation, National Grid
undertakes no obligation to update any of its forward-looking statements.  The
effects of these factors are difficult to predict. New factors emerge from time
to time and National Grid cannot assess the potential impact of any such factor
on its activities or the extent to which any factor, or combination of factors,
may cause results to differ materially from those contained in any
forward-looking statement.



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