KeySpan is the largest electric generator in New York State as well, owning approximately 6,650 MW of generating capacity to supply power to Long Island and New York City. It is the largest distributor of natural gas in the Northeast, serving 2.6 million gas customers. Under the terms of the merger, which was announced in February 2006, KeySpan will become a wholly owned subsidiary of National Grid and will continue to operate as KeySpan.
The substantial opportunities for cost savings are clear, and with our investment capability we can really unlock KeySpan’s growth potential,” said National Grid CEO Steve Holliday. “We are totally committed to making sure our customers and shareholders receive the benefits coming from this merger. At the last minute they attached a wide range of protections for ratepayers against any default by the parent company. After the settlement was announced, as worldwide stock and credit markets began to slide, New York regulators became concerned about the financial risks associated with the totally leveraged deal.
