National Grid To Invest In Clean Line Energy

                 National Grid To Invest In Clean Line Energy

PR Newswire

HOUSTON, Nov. 27, 2012

$40 MILLION INVESTMENT ADVANCES BOTH COMPANIES' GOAL TO DELIVER CLEAN ENERGY

HOUSTON, Nov. 27, 2012 /PRNewswire-USNewswire/ -- National Grid (LSE: NG;
NYSE:NGG) and Clean Line Energy Partners LLC (Clean Line) are pleased to
announce that National Grid will make a $40 million equity investment in Clean
Line, an emerging leader in the development of long distance, high voltage
direct current (HVDC) transmission projects to move renewable energy to
market. National Grid is one of the largest investor-owned energy companies in
the world, with extensive experience building, owning and operating large HVDC
electricity transmission interconnectors and transmission networks in the US
and the UK. National Grid shares Clean Line's vision to help create the
nation's clean energy future by investing in transmission projects that
facilitate the development of renewable energy resources. 

Clean Line will use the proceeds from National Grid to advance the development
of its four HVDC transmission projects that will connect onshore wind energy
resources in the United States to communities and cities with demand for
low-cost, clean power.

"National Grid USA is pleased to invest in Clean Line Energy and to work to
deliver clean energy to market," said National Grid Chief Executive Steve
Holliday. "Clean Line has a strong and capable development team and a
portfolio of compelling projects that will advance the growth of renewable
energy and the modernization of America's energy infrastructure."

"We strongly support the advancement of tomorrow's network technologies and
clean energy resources in the US, and our equity investment in Clean Line
underscores each of those objectives," said Tom King, president of National
Grid USA. "With this investment, we are bringing capital and network
knowledge to help advance resources that will link clean energy resources to
markets throughout the US."

"We continue to make steady progress on the development of our four
long-distance HVDC transmission projects and National Grid's participation in
Clean Line will further enhance our technical, financial, and development
capabilities," said Michael Skelly, president of Clean Line. "We are
delighted to have an investor of National Grid's caliber who shares our vision
and brings a deep understanding of HVDC transmission. We look forward to
working together as we develop and build new infrastructure necessary to
facilitate a cleaner energy mix for the future."

The investment in Clean Line is consistent with National Grid's long term
strategy of developing and operating high quality energy infrastructure.
Around 10% of National Grid's investments over the next eight years are
expected to be outside its existing regulated activities in the UK and
northeastern USA.

Lazard acted as financial advisor for this transaction. A subsidiary of
National Grid USA will make the investment in Clean Line with corporate funds;
the transaction is separate from National Grid's existing regulated businesses
in the US and the UK. Under the terms of the transaction, National Grid will
have the ability to acquire a significant ownership stake in Clean Line's HVDC
projects. The funds associated with ZBI Ventures and the Houston-based Zilkha
family will maintain their existing equity stakes in the company. The closing
of the transaction is subject to regulatory approvals.

Clean Line's portfolio of HVDC transmission projects currently under
development includes the following:

  oThe Plains & Eastern Clean Line will move 3,500 megawatts (MW) of power
    from clean energy projects in western Oklahoma, southwestern Kansas, and
    the Texas Panhandle to consumers in the Southeastern United States. In
    October 2011, the Oklahoma Corporation Commission approved Plains and
    Eastern Clean Line Oklahoma LLC's request to conduct business as a public
    utility in Oklahoma. In addition, the Federal Energy Regulatory
    Commission (FERC) granted Plains and Eastern Clean Line approval to begin
    negotiating transmission service agreements with potential customers. In
    September 2012, Plains and Eastern Clean Line LLC signed an Advanced
    Funding and Development Agreement with the US Department of Energy and
    Southwestern Power Administration. This agreement provides for DOE's
    environmental review of the Plains & Eastern Clean Line under the National
    Environmental Policy Act.
  oThe Grain Belt Express Clean Line will deliver 3,500 MW of low-cost
    renewable power from Kansas to Missouri, Illinois, Indiana and points
    farther east. In December 2011, Grain Belt Express Clean Line LLC
    received unanimous approval from the Kansas Corporation Commission to
    conduct business as a public utility in Kansas.
  oThe Rock Island Clean Line will connect 3,500 MW of renewable power from
    northwest Iowa to communities in Illinois and other states to the east.
    In May 2012, Rock Island Clean Line LLC obtained a key regulatory approval
    from the FERC to begin negotiating transmission service agreements with
    potential customers. Rock Island Clean Line LLC recently filed its
    proposed route in Illinois with an updated public utility application to
    the Illinois Commerce Commission.
  oThe Centennial West Clean Line will deliver 3,500 MW of renewable power
    from northeastern New Mexico to communities in California. In June 2012,
    Centennial West Clean Line LLC and Western Area Power Administration
    entered into an agreement that outlines a working relationship to advance
    the development of the Centennial West Clean Line transmission project.

National Grid has a strong record of leadership in HVDC transmission in the
United States and in the United Kingdom:

  oNational Grid built, operates, and owns a majority share of the US portion
    of a 2,000 MW HVDC interconnector that operates at 450kV between New
    England and Canada, which is jointly owned by some 40 energy companies.
  oNational Grid also is working with Emera Corporation on a proposal to
    develop the Northeast Energy Link, a proposed 230-mile 1,100 MW direct
    current (DC) transmission line delivering renewable energy from northern
    and eastern Maine and eastern Canada into southern New England.
  oNational Grid owns half of BritNed, a 156-mile, bi-pole HVDC electricity
    interconnector with 1,000 MW capacity each way that connects the Isle of
    Grain, UK, to Maasvlakte, Netherlands. National Grid invested £250m to
    develop BritNed, which is a 50/50 joint venture with TenneT, the Dutch
    electricity transmission system operator.
  oInterconnexion France-Angleterre is a 2,000 MW, 42-mile HVDC electricity
    interconnector between England and France that includes 27 miles of
    undersea cable. Commissioned in 1986, IFA is part of a joint agreement
    between National Grid and France's Transmission Service Operator, RTE. 
  oThe Western HVDC Link is a proposed subsea HVDC cable on the western side
    of the UK that will connect Scotland with England and Wales. It will be
    jointly developed by National Grid and Scottish Power Transmission to
    provide much needed additional capacity on Great Britain's transmission
    system and support the continued growth and expansion of renewable energy
    in the UK.
  oNational Grid currently is working with the transmission service operators
    in Belgium and Norway to explore opportunities to develop HVDC electricity
    interconnectors between those countries and Great Britain.

About National Grid:

National Grid (LSE: NG; NYSE:NGG) is an electricity and natural gas company
that connects consumers to energy sources through its networks. The company is
at the heart of one of the greatest challenges facing our society -- to create
new sustainable energy solutions for the future and develop an energy system
that underpins economic prosperity in the 21st century.

In Great Britain, we run the gas and electricity systems that our society is
built on, delivering gas and electricity across the country.

In the US, National Grid delivers electricity to more than 3 million customers
in Massachusetts, New York and Rhode Island. It manages the electricity
network on Long Island under an agreement with the Long Island Power Authority
(LIPA), and owns over 4,000 megawatts of contracted electricity generation,
providing power to over one million LIPA customers. It is the largest
distributor of natural gas in northeastern U.S., serving more than 3 million
customers in New York, Massachusetts and Rhode Island.

For more information please visit: www.nationalgridus.com.

About Clean Line Energy Partners:

Clean Line's mission is to connect abundant, renewable energy resources to
areas that have a high demand for clean, reliable energy. Clean Line is
developing a series of long distance high voltage direct current transmission
projects to move renewable energy to market. For more, information please
visit www.cleanlineenergy.com.

About ZBI Ventures:

ZBI Ventures is a wholly-owned subsidiary of Ziff Brothers Investments, the
private investment firm of the New York-based Ziff family. ZBI Ventures
focuses primarily on private equity investments in the energy and
energy-related sectors.

SOURCE Clean Line Energy Partners LLC

Website: http://www.nationalgridus.com
Website: http://www.cleanlineenergy.com
Contact: Sarah Bray, Media Relations, Clean Line, +1-832-319-6340 office,
+1-832-226-2116 cell, sbray@cleanlineenergy.com; or Jackie Barry, Media
Relations, National Grid, +1-781-907-3980 weekdays, +1-781-907-3981 evenings
and weekends, jackie.barry@nationalgrid.com
 
Press spacebar to pause and continue. Press esc to stop.