Expansion and consolidation (2000–2015)
With the beginning of the new millennium, National Grid pursued mergers and international acquisitions. In March 2000, National Grid Group acquired United States companies New England Electric System and Eastern Utilities Associates.[8]
In January 2002, National Grid Group acquired Niagara Mohawk Power Corporation, a New York State utility.[9] In October 2002, National Grid Group merged with Lattice Group, owner of the Transco gas distribution business (Lattice had demerged from BG Group in 2000).[10]
National Grid Group changed its name to National Grid Transco plc. It sold the telecoms business 186K Ltd. which was acquired as part of the merger with Lattice Group for a nominal £1 to Hutchison Whampoa in December 2002.[11] In 2004, the company was found liable for a gas explosion in Transco plc v HM Advocate and subsequently fined £15 million.[12][13] In August 2004, National Grid Transco agreed to sell four of its regional gas distribution networks for a total cash consideration of £5.8 billion. NGT kept ownership of four other distribution networks, which make up almost half of Great Britain's gas distribution network.[14] In July 2005, National Grid Transco was renamed National Grid plc. On 26 July 2005, National Grid Company was renamed National Grid Electricity Transmission plc, and on 10 October 2005, Transco was renamed National Grid Gas plc.[15]
In February 2006, National Grid announced that it had agreed to buy KeySpan Corporation,[16] a gas distributor and electricity producer in the United States, for $7.3bn (£4.1bn) in cash. Around the same time, National Grid also announced the acquisition of New England Gas Company, a Rhode Island subsidiary of Southern Union Company.[17]
The acquisitions of the two natural gas delivery companies doubled the size of National Grid's American subsidiary, creating the second largest utility in the United States with more than 8 million customers. The acquisition of KeySpan was completed on 24 August 2007, following government and regulatory approval and endorsement by the shareholders of the two companies.[18]
In May 2007, National Grid formed a joint venture with the Dutch transmission operator TenneT for a 260 km 1,000 MW BritNed DC link between the Isle of Grain in Kent and Maasvlakte, near Rotterdam.[19][20] The installation of the first section of cable link started on 11 September 2009,[21] and the entire 260 km cable was completed in October 2010.[22]
The interconnection became operational on 1 April 2011,[23][24] and by January 2012, electricity flow had mostly been from the Netherlands to the United Kingdom.[25] The BritNed interconnection would serve as a vital link for the foreseeable European super grid project.[26] In the spring of 2011, National Grid sold off its services in New Hampshire, after their request to increase gas and electric rates was denied.[27]
