CONTACTS:
     NEES                     NATIONAL GRID

     Media:                   Media:
     Jackie Barry             Susan Stevens
     (508) 389-3298           011-44-171-620-8366
     (508) 389-4966 (pager)

     Investors:               Investors:
     ----------               ----------
      Bob Seega               Jill Sherratt
      (508) 389-2178          011-44-171-620-9191
                         011-44-468-490-807 (cell phone)

SEC APPROVES NEES/NATIONAL GRID MERGER

     NEES to be Renamed National Grid USA Following Close of
Merger WESTBOROUGH, Mass., March 15, 2000   The U. S. Securities
and Exchange Commission (SEC) has approved the merger between New
England Electric System (NEES) and The National Grid Group plc
(National Grid), NEES President and Chief Executive Officer Rick
Sergel announced today.  According to Sergel, the merger is
expected to close in approximately one week.  Following closing,
NEES will be renamed National Grid USA.

     The final sale price for the merger, and the final price of
NEES shares are expected to be approximately $3.2 billion and
$54.21, respectively.  The exact sale and share prices will be
announced on closing day.

     When the merger closes, National Grid will acquire all
outstanding shares of NEES, and NEES will become a wholly owned
subsidiary of National Grid.  NEES will serve as the base of U.S.
operations for National Grid, and will provide a platform for
U.S. growth in the company's electricity transmission and
distribution business.

     "This merger is all about opportunity   for our customers,
our employees, and the region as a whole," said Sergel.  "Our
customers will continue to enjoy high levels of service and
prices that are among the region's lowest; our employees will
join a global company whose size and considerable resources will
help us stay competitive in this changing industry; and the
region will benefit from National Grid's decade of experience in
the U.K.'s competitive electricity market."


     "Once we decided to explore strategic opportunities in the
U.S., we mounted an extensive search for the ideal company to
join National Grid and form a solid platform for growth within
North America," said National Grid Group Chief Executive David
Jones.  "We chose NEES because of its reputation as an industry
leader, and because it shares our strong commitment to delivering
world class levels of service."

     Following the completion of the merger, NEES will be renamed
National Grid USA.  NEES's local electric companies
Massachusetts Electric Company, Narragansett Electric Company
(RI), Granite State Electric Company (NH), and Nantucket Electric
Company   will keep their existing names, and continue to serve
their more than 1.3 million customers in Massachusetts, Rhode
Island and New Hampshire.  National Grid USA's company
headquarters will remain in Westborough, Massachusetts.

     Sergel commented, "Our decision to change the holding
company name to National Grid USA reflects our new status as part
of a global industry leader, as well as our plans for future
growth, which we expect to extend beyond New England."  He added,
"By the same token, our decision to retain the existing, familiar
names of our local electric companies reflects our unwavering
commitment to our customers, who always have been, and always
will be, a top priority for us."

     Sergel will continue as president and chief executive
officer of the U.S. company, and will join the National Grid
Group board as a director, overseeing North American operations.
NEES director Paul Joskow, professor of economics and management
at the Massachusetts Institute of Technology, also will join
National Grid's board.

     The merger between NEES and National Grid was announced on
December 14, 1998.  It has been approved by or received support
from all of the necessary state and federal regulatory agencies.
The SEC approval was required because of federal law applying to
ownership of public utility holding companies.  Shareholders of
both companies approved the merger by overwhelming majorities.

     In February 1999, NEES announced its intention to acquire
Eastern Utilities Associates, a neighboring electric utility
based in West Bridgewater, Massachusetts, for $634 million.  NEES
and National Grid expect to complete that merger soon.


     NEES (NYSE:NES) is a public utility holding company based in
Westborough, Massachusetts.  Its subsidiaries are engaged in the
transmission and distribution of electricity, the marketing of
energy commodities and services, and the construction and leasing
of telecommunications infrastructure.

     The National Grid Group plc (LSE, NYSE:NGG) -- one of the
U.K.'s largest 100 companies -- builds, owns and operates
electricity and telecommunications networks around the world,
focusing on liberalising markets.  The world's largest
independent electricity transmission company, National Grid
operates networks in England, Wales, Argentina and Zambia.  The
company operates or is developing transmission interconnectors in
England, Scotland, France, Africa, Australia and the Isle of Man.

     The company has a growing portfolio of telecommunications
businesses that includes a minority stake in UK company Energis,
which National Grid created; a joint venture in Brazil; and a
joint venture being developed in Poland.

     National Grid's headquarters are in Coventry, England.