FERC, which regulates transmission and wholesale sales of electricity in US interstate commerce, concluded that the proposed deal would not adversely affect competition or create any rate or regulatory issues.

National Grid Group Chief Executive, Roger Urwin, commented:

“FERC approval is an important step in the merger process, so we are delighted with this news. This takes us a big step closer to completion of the transaction, at which time the percentage of our operating profits coming from the US will increase to about 60%, further delivering on our plan to increase the quality of our earnings potential through growth in the US market.”

The acquisition is still subject to a number of other consents and approvals. To date, six approvals, including that from FERC, have been obtained and completion is targeted for the end of the calendar year.

National Grid and Niagara Mohawk announced on 5 September 2000, the signing of a Merger Agreement under which National Grid will acquire all of the outstanding shares of Niagara Mohawk.

Niagara Mohawk is the second largest combined electricity and gas utility in New York State, serving over 1.5 million electricity and over 540,000 gas customers. Upon completion, the merger will create the ninth largest electricity utility in the US. It will also create the most extensive electric transmission network and second largest distribution business by customers in the New England/New York region.