PRESS RELEASE


FOR IMMEDIATE RELEASE

CONTACT:
Jackie Barry                        Karen Berardino
(508) 389-3298                      (978) 725-1240


RHODE ISLAND PUBLIC UTILITIES COMMISSION VOTES TO APPROVE
NEES/EUA MERGER RATE SETTLEMENT

     PROVIDENCE, RI, March 14, 2000 - The Rhode Island Public
Utilities Commission voted today to approve the proposed rate
consolidation settlement filed by The Narragansett Electric
Company, a subsidiary of New England Electric System (NEES)
(NYSE:NES); and Blackstone Valley Electric Company and Newport
Electric Corporation, subsidiaries of Eastern Utilities
Associates (EUA) (NYSE:EUA), according to NEES President and
Chief Executive Officer Rick Sergel.

     The Rhode Island Attorney General, the Division of Public
Utilities and Carriers, and The Energy Council of Rhode Island
are also signatories to the settlement.

     "We are pleased that the Commissioners have approved the
rate settlement," Sergel said. "We now look forward to obtaining
the remaining approvals required from Massachusetts regulators
and the U.S. Securities and Exchange Commission to complete the
NEES/EUA merger so we can begin delivering its benefits to our
customers."

     The Rhode Island Division of Public Utilities and Carriers
approved the merger of the Rhode Island operating subsidiaries of
NEES and EUA on February 25.

     The settlement includes:  provisions to lower distribution
rates and freeze them for five years, a performance-based plan
that allows customers and the company to share in the savings
created by the merger, expansion of low-income rate eligibility
to include any customer who qualifies for the federal
government's Low Income Home Energy Assistance Program, and
standards to ensure that strong service quality and reliability
are maintained.


     The settlement will be implemented after the merger closes,
and when the company's metering and billing systems are ready.

     In December, 1998, NEES announced that it will merge with
The National Grid Group plc (National Grid) (LSE, NYSE: NGG),
based in Coventry, England. Upon completion of that merger, NEES
will become a wholly owned subsidiary of National Grid.  The
NEES/EUA merger is not contingent upon the NEES/National Grid
merger closing.

     Both NEES, headquartered in Westborough, Mass., and EUA,
based in West Bridgewater, Mass., are public-utility holding
companies.