National Grid said Monday that the overall outlook is ahead of expectations. During the period National Grid has continued to make good progress in implementing its strategy. “We are close to completing the acquisition of KeySpan”, National Grid said. In June, the Long Island Power Authority Board of Trustees voted to approve the renewal of contracts for the provision of electricity transmission and distribution system management and operation services on Long Island. In July, the New Hampshire Public Utilities Commission issued an order approving the acquisition, and we reached agreement in principle with the New York Public Service Commission (NYPSC) staff on the transaction. The latest procedural schedule indicates that the merger approval may be before the NYPSC for a vote on Aug. 22, and completion of the acquisition is expected shortly thereafter, the company said. In May, Ofgem published initial proposals on the U.K. Gas Distribution Price Control Review for the five years to March 2013. The company continues to work closely with Ofgem to reach a fair settlement that balances risk and reward, ensuring a safe and reliable network for customers, and an appropriate return for investors. Updated proposals are expected in September. The sale of Basslink, our interconnector in Australia, is well advanced and the company expects to announce a sale shortly. The board remains confident in National Grid’s earnings growth prospects, which it expects to be enhanced by the KeySpan acquisition. “We will be announcing a revised dividend policy later in the financial year, which will reflect the strong outlook for the earnings of the enlarged business from this new base”, the company said. National Grid’s outlook for the year is ahead of previous expectations. In June and July, the U.K. has seen some of the wettest weather since records began, and the resultant flooding has affected our Transmission and Gas Distribution operations in many parts of the country. Initial assessments suggest that the impact to date on operating profit is not significant. The earlier than anticipated completion of the sale of U.K. Wireless business is expected to result in an interest charge lower than it had previously projected. During the period, the pound has continued to strengthen against the dollar this is expected to have only a small impact on earnings, the company said. Both cash flow and capital expenditure remain broadly in line with plans. The financial position remains strong, with around 80% of net debt either at fixed rates or index linked, and the company has committed financing in place to complete the acquisition of KeySpan.

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