n 10,500 employees

n 3.9 million customers

n $9 billion of rate base

n $1.5 billion annual O&M

n $750 million of annual capital investment

n $670 million paid in state and local taxes

n Met all customer reliability and emergency response targets in 2011n Meeting National Grid commitment of replacing 75 miles of ageing distribution pipe each year in New York City and Long Island to increase reliability, system capacity and safetyn Working closely with local governments to coordinate public works-related projects to minimize cost and impact to the communityn Conducting gas main replacement, upgrades and pipeline inspections using sophisticated maintenance toolsn Installing equipment to maintain gas pressure due to demand and growth in New York and Long Islandn Strong natural gas safety program to prevent damage caused by third-party excavation and respond promptly to emergencies

n Convert nearly 10,000 customers per year from oil to natural gasn Provide energy efficiency rebates to more than 4,000 customers since 2008, helping them become more energy efficient, saving about 500,000 dekatherms of natural gas, or the equivalent of heating 4,000 homes with natural gas for one year

Presence, Promise and PerformanceReport on Downstate New York

Performance: Committing $2.2 Billion in Capital Investment Over the Next Five Years

www.nationalgrid.com

LIPA Electric Niagara Elec Gas Only

n Invest in Infrastructure to Provide Safe and Reliable Service u Investing heavily over next five years to assure reliability, meet customer needs u Performance measures on target

n Help Customers Manage Their Energy Usage u Manage bill impacts u Energy efficiency programs

u Increase efficiency u Minimize carbon footprint and climate impact

n Be a Part of the Communities We Serve

u Economic development programs u Giving and volunteerism u Engineering our Future program – inspires students to study math and science and consider engineering careers

Promise

Presence

CM5121 (2/12) DNY

For more information, visit www.nationalgrid.com

National Grid One Metrotech Center Brooklyn, NY 11201

Brooklyn Queens Interconnect

Brooklyn Queens Interconnect (BQI) will join the National Grid distribution system in the Rockaway Peninsula with the Williams/Transco existing transmission pipeline in Lower New York Bay to improve gas availability and gas distribution capabilities, and capacities in the New York region

Conversions to Natural Gasn Support customers in converting from oil to natural gas – each conversion has the impact of pulling 15 cars off the road for a year

n Partnering with New York City Clean Heat Initiative to accelerate phase out of heavy oils in 100 large buildings, 40 completed in 2011

n Largest oil to natural gas conversion on Long Island will save the VA Hospital $1 million and displace 1.5 million gallons of oil annually

Energy Efficiency

Partner with customers and communities through Energy Efficiency and Economic Development

u 20-year track record of providing award-winning energy efficiency programs, for the 12th year in a row, the US Environmental Protection Agency and the US Department of Energy recognized National Grid for its leadership in minimizing the effects of climate change through energy efficiency

u Cinderella program has been around for over 40 years, providing $4 million in grants to projects that encourage energy efficiency and conservation for restored or new construction of hundreds of residential and commercial buildings and helping create jobs and economic growth

l “Green Cinderella” added in 2003 to spark interest in the development of buildings utilizing new environmentally friendly energy technologies, recycled and high-efficiency building materials

Update on Gas Bills

Thanks to lower natural gas prices and warmer temperatures, residential winter heating bills should be down 20 percent for customers in New York and Long Island; we are experiencing the lowest gas commodity prices in a decade -- down 80 percent since 2008.

Environmental Commitmentn National Grid has set a goal of reducing its greenhouse gas emissions 45 percent by 2020 and 80 percent by 2050

n Founding partner of the Great Urban Park master plan to enhance visitor experience at Gateway National Recreation Area properties

n Received the Alley Pond Environmental Center “2011 Corporate Friend of the Environment Award”

n Newsweek listed National Grid as the number one green utility in its 2011 Green Rankings report which measures companies based on environmental impact, management and disclosure

n Working under the direction of the New York State Department of Environmental Conservation and the US Environmental Protection Agency to do our part to address environmental impacts from former manufactured gas plants operated by our corporate predecessors

Investment in Gas Infrastructure and the Communities We Serve

Brooklyn Queens Interconnect, the first new gas supply delivery point connecting Brooklyn and Queens in 50 years will ensure clean reliable energy in NYC.)

(Photo courtesy of the New York City Department of Environmental Protection)

The Newtown Creek wastewater treatment plant is one of the largest of its type in the world and will be upgraded to utilize renewable gas.

Newtown Creekn Partnering with the New York City Department of Environmental Protection to demonstrate that renewable gas is another option to meet the clean energy needs of the future; the project, a first of its kind, will inject enough renewable gas to meet the annual demand of approximately 2,500 homes that use natural gas for heating and reduce CO2 emissions by about 16,000 tons annually – equal to CO2 emissions of approximately 3,000 cars

Community Commitmentn Established the “Neighborhood Heating Fund,” with HeartShare Human Services of New York, now in its third decade, and contribute to the United Way of Long Islands “Project Warmth” program to provide heating assistance funding for people in need

n Each year, National Grid employees give generously of their time and their money for United Way agencies, total company and employee contributions are more than $3 million

n The centerpiece of Engineering Our Future is the Engineering Pipeline Program which creates a recruitment pathway for the company by offering promising high school and college students the chance to learn more about National Grid and engineering through a structured six-year program

n National Grid has long-standing relationships with Junior Achievement and City Year to inspire young people to be successful. More than 150 employee volunteers per year teach over 3,000 students across New York City and Long Island and raised thousands of dollars

Brooklyn Queens Interconnect, the first new gas supply delivery point connecting Brooklyn and Queens in 50 years will ensure clean reliable energy in NYC.

n We support a number of cultural organizations including the Brooklyn Botanic Garden’s Project Green Reach science program; Long Island Children’s Museum; Cornell Cooperative Extension Green School Initiative programs; the Queens Library Foundation STEM book donation for the new Children’s Library Discovery Center; College of Staten Island Foundation, Incn Sponsor of the Brooklyn Navy Yard Sustainable Story Room, a LEED Platinum Exhibition and Visitors Center. We are working with the Navy Yard as an energy facilitator to help them plan their energy future The Way Forward

National Grid is meeting its commitment to invest in New York and Long Island and the results are evident through improved reliability and a strong gas safety program. Our energy efficiency and economic development programs are leading the way in National Grid’s overall partnership with customers, and our commitment to the communities we serve. We take our role as a community citizen seriously and look forward to strengthening our partnerships to make the areas in which we live and work safer, healthier and more vibrant.

– Ken Daly, President, National Grid, New York

National Grid NY president Ken Daly (second from right) helped make Community Development Corporation of Long Island’s wish come true with a $25,000 Green Cinderella grant for energy efficient improvements at Twin Oaks – an affordable housing community

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