Exhibit 99.1

KeySpan Corporation                                      For Immediate Release


Contacts:         Investors                             Media Relations
                  Michael J. Taunton                    Andrea Staub
                  718.403.3265                          516.545.5052
                                                        516.824.1241 (beeper)


         Keyspan Announces Offer of 13.9 Million Shares of Common Stock



BROOKLYN,  N.Y.,  January 13, 2003 -- Keyspan  Corporation (NYSE: KSE) announced
today it has agreed to offer  approximately  13.9  million  shares of its common
stock  generating  gross  proceeds of $500 million,  through Credit Suisse First
Boston.  All shares will be offered by Keyspan  pursuant to an  effective  shelf
registration statement filed with the Securities and Exchange Commission (SEC).

Credit Suisse First Boston will be the sole underwriter for the offering and was
granted an option to purchase an  additional  700,000  shares  within 30 days to
cover over-allotments, if any.

This  announcement  shall not constitute an offer to sell or the solicitation of
any  offer  to buy nor  shall  there  be any  sale of  these  securities  in any
jurisdiction  in which such offer,  solicitation or sale would be unlawful prior
to  registration  or  qualification  under  the  securities  laws  of  any  such
jurisdiction.  Investors  may obtain a copy of the  prospectus  relating  to the
offering when available from Credit Suisse First Boston,  Prospectus  Dept., One
Madison Avenue, New York, NY 10010.


A member of the Standard & Poor's 500 Index,  KeySpan Corporation (NYSE: KSE) is
the largest  distributor of natural gas in the  Northeast,  with 2.5 million gas
customers  and  approximately  12,000  employees.  KeySpan  is also the  largest
investor-owned  electric  generator in New York State and operates Long Island's
electric  system under contract with the Long Island Power Authority for its 1.1
million  customers.  With  headquarters  in  Brooklyn,  Boston and Long  Island,
KeySpan also manages a dynamic  portfolio of service  companies.  They  include:
KeySpan Energy Delivery,  the group of regulated natural gas utilities;  KeySpan
Home Energy Services,  a group of energy product,  repair and services companies
for residential and small commercial  business  customers;  and KeySpan Business
Solutions, a full-service group of energy product, repair and services companies
for  larger  business  customers.  KeySpan  also has  strategic  investments  in
natural-gas exploration and production,  pipeline  transportation,  distribution
and storage,  and fiber-optic  cable. For more information,  visit KeySpan's web
site at: http://www.keyspanenergy.com.

Certain  statements  contained  herein  are  forward-looking  statements,  which
reflect  numerous  assumptions  and  estimates and involve a number of risks and
uncertainties.  For these statements, we claim the protection of the safe harbor
for  forward-looking  statements  provided by the Private Securities  Litigation
Reform Act of 1995. There are possible  developments that could cause our actual
results  to  differ   materially   from  those   forecast   or  implied  in  the
forward-looking  statements.  You are cautioned  not to place undue  reliance on
these forward-looking statements,  which are current only as of the date of this
filing.  We  disclaim  any  intention  or  obligation  to update  or revise  any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise. Among the factors that could cause actual results to differ
materially are: general economic conditions,  especially in the Northeast United
States;  available  sources and costs of fuel;  volatility of energy prices in a
deregulated  market environment as well as in the source of natural gas and fuel
used to generate electricity;  potential write-down of our investment in natural
gas properties  when natural gas prices are depressed or if we have  significant
downward  revisions  in our  estimated  proved gas  reserves;  federal and state
regulatory  initiatives that increase competition,  threaten cost and investment
recovery and impact rate structure;  our ability to successfully reduce our cost
structures;  implementation of new accounting standards;  the degree to which we
develop unregulated  business ventures,  as well as federal and state regulatory
policies  affecting our ability to retain and operate those  business  ventures;
our  ability to identify  and make  complementary  acquisitions,  as well as the
successful  integration of those acquisitions;  inflationary trends and interest
rates; and risks detailed from time to time in reports and other documents filed
by us with the Securities and Exchange Commission.