FOR IMMEDIATE RELEASE
               Jackie Barry        Bob Seega
               NEES                NEES
               (508) 389-3298      (508) 389-2178

               David Jacobs
               EUA
               (508) 559-2000 x3655


                  NRC APPROVES NEES/EUA MERGER

     WESTBOROUGH, Mass., Feb. 28, 2000   The U.S. Nuclear
Regulatory  Commission (NRC) has approved the proposed merger
between New England Electric System (NEES) and Eastern Utilities
Associates (EUA), according to NEES President and Chief Executive
Officer Rick Sergel.

     "We continue our progress toward completing this merger
early this year, and look forward to delivering to customers the
savings it will provide," Sergel said.

     The NRC approval was necessary because Montaup Electric
Company, a subsidiary of EUA, holds a minority ownership interest
in the Millstone 3 nuclear unit, Vermont Yankee, and the
following permanently retired units:  Connecticut Yankee, Maine
Yankee, and Yankee Atomic.

     On February 1, 1999, NEES announced its intention to acquire
EUA.  Since then, the proposed merger has been approved by the
Federal Energy Regulatory Commission, and has received
Hart-Scott-Rodino clearance from the Department of Justice and
the Federal Trade Commission.  The merger also must be approved
by the Securities and Exchange Commission and regulators in
Massachusetts and Rhode Island.  Merger rate settlements are
pending approval by regulators in both states.  The settlements,
which will take effect after the NEES/EUA merger is complete,
provide substantial savings for Massachusetts and Rhode Island
customers through multi-year rate reductions and rate freezes.


     Once complete, the merger will result in a combined company
that serves 1.6 million customers in 228 communities throughout
Massachusetts, Rhode Island, and New Hampshire.

     On December 14, 1998, NEES announced that it would merge
with The National Grid Group plc (LSE, NYSE:NGG), the world's
largest independent electricity transmission company, based in
Coventry, England.  Upon completion of that merger, NEES will
become a wholly owned subsidiary of National Grid Group.  The
NEES/EUA merger is not contingent upon the NEES/National Grid
merger.

     NEES (NYSE:NES), a public utility holding company based in
Westborough, Massachusetts, serves approximately 1.3 million
customers through its subsidiaries Massachusetts Electric
Company, Narragansett Electric Company, Granite State Electric
Company, and Nantucket Electric Company.

     EUA (NYSE:EUA) is a public utility holding company based in
West Bridgewater, Massachusetts.  Subsidiaries Eastern Edison
Company, Blackstone Valley Electric Company, and Newport Electric
Corporation deliver electricity to more than 300,000 customers in
southeastern Massachusetts and Rhode Island.