2005 U.S. Community Giving natioionalgr d Contents President’s Message 2 Introduction 3 United Way 4 Share the Warmth 5 Health and Social Services 6 Education 7 Environmental 11 Matching Gifts 13 Citizenship Grants 14 Chairman’s Awards 15 Cultural 16 1 Community Report 2005 Message from the President and CEO I am pleased to present to you our first Community Giving Report. It’s fitting to be sharing our story with you at this time, as we come together as one company with one name – National Grid. The companies we own and operate here in the Northeast have long and proud heritages. Their past names – Niagara Mohawk, Massachusetts Electric, Narragansett Electric, Granite State Electric and Nantucket Electric – have been synonymous with integrity, value, service and reliability. We will continue that proud tradition as we go forward under our single name – National Grid. As National Grid, we will also continue the long-standing tradition of investment in the community, through both the activities of our employees and our financial contributions. We are literally connected to nearly 4 million electricity and natural gas customers in some 900 communities across our service territory. We recognize the value and importance of the positive role we can play in our communities. Our corporate giving program is diverse. Just as our customers and communities are different, so are their needs. I would like to share with you, in the next several pages, examples of our employees’ volunteer activities and our charitable donations. Our goal is simple: to improve and enrich the lives of a wide range of people in the communities where we live and work. Sincerely, Mike Jesanis President and CEO Community Report 2005 2 Introduction ◆ 1.5 million electricity customers National Grid is one of the top 10 energy delivery companies in the U.S., serving almost 4 million electricity in 669 New York communities and natural gas customers in nearly 900 communities in the Northeast. We are focused on delivering energy safely, reliably and efficiently. In all our business activities, we are guided by our Framework for ◆ 1.2 million electricity customers Responsible Business. in 168 Massachusetts The Framework sets out the principles by which we not only conduct our business, but also how we treat communities the environment, our employees and the communities in which we operate. We encourage and support investment in the community through both the activities of our employees and our financial contributions, ◆ 465,000 electricity customers with an emphasis on developing partnerships. in 38 Rhode Island communities To that end, National Grid gives generously with time, talent and financial support to hundreds of non- profit organizations throughout our service territory. We give preference to organizations that provide support for health and social services, environmental protection, education, cultural institutions and ◆ 38,000 electricity customers civic and economic development. in 21 New Hampshire communities For the complete Framework for Responsible Business document visit www.nationalgrid.com/responsibility. The statistics and references in the following pages refer to our Fiscal Year 2005 (April 1, 2004 - March 31, 2005). ◆ 10,000 year-round electricity customers on the island National Grid Service Territory in the United States community of Nantucket Canada ◆ 550,000 natural gas customers in 197 communities in central and eastern New York Vermont ◆ National Grid owns and operates Watertown Lake approximately 14,000 miles of Ontario New electricity transmission and sub- Hampshire transmission (23kV and up) Syracuse Utica Salem lines in New England and Buffalo Atlantic Albany Ocean New York Lake Erie Massachusetts New York Worcester Providence National Grid Service Territory Connecticut Rhode in the United States Island Nantucket 3 Community Report 2005 NG USA ST Map-1 © 2003 National Grid United Way Each year, National Grid employees raise more than $800,000 for local United Way agencies in New York and New England. Money raised by employees and retirees is company matched, bringing last year’s total donation to $1.6 million contributed to United Way organizations in New York, New Hampshire, Massachusetts and Rhode Island. This significant annual contribution has established National Grid as one of the top givers in several of the United Way organizations. Throughout its four-state service territory, National Grid has received numerous awards and recognition by various United Way agencies. In addition to financial support, our employees are actively involved with several United Way organizations serving on boards and acting as loaned executives. Many more volunteer to help with local projects, including the United Way's annual Day of Caring, when volunteers provide the manpower necessary to help local organizations with facility repairs, painting, maintaining and building playgrounds, weeding community gardens, picking up trash and other clean up activities. Shown here are teams of employees participating in United Way’s annual Day of Caring. Community Report 2005 4 Share the Warmth – Energy Fuel Assistance Programs Energy Fund Facts In addition to United Way giving, National Grid is sensitive to the needs of households who, because of temporary financial difficulty, cannot meet a ◆ Since 1985, the Massa- month’s energy expense. The cold, harsh winters of the Northeast present chusetts fund has raised challenges to many. National Grid is a major sponsor of energy fuel assis- more than $12 million and tance programs that help individuals or families having extreme difficulty assisted nearly 60,000 making their heat or electricity bill payments. To be eligible for this assistance, households must meet certain criteria. families In Massachusetts and Rhode Island, the program is called The Good ◆ Since 1986, the fund in Neighbor Energy Fund (GNEF), and it’s administered by the Salvation Army. Rhode Island has raised The GNEF is a cooperative effort among Massachusetts and Rhode Island more than $4 million and utilities. In 2004, the fund helped more than 4,000 families pay an electric, assisted more than 23,000 gas or oil bill. families In New York, a similar program called the Care & Share Energy Fund is sponsored by National Grid and is administered by the Red Cross. Last year, the Care & Share Energy ◆ Since 1984, New York’s Fund provided nearly $160,000 to more than 550 families for fuel and energy costs. Care & Share has raised We encourage our employees and customers to contribute to the respective funds in their state, and then more than $7 million and we match these donations up to a specified maximum. To encourage the general public to contribute to assisted nearly 28,000 this charitable fund, we often pay for promotional advertising, as well as insert donation envelopes with families the electric and gas bills. CHUSE SA T S T S A M 5 Community Report 2005 Health and Social Services Ensuring the health, safety and well being of our families, friends and neighbors strengthens our communities. In fiscal year 2005, we By participating with and donating funds to health and social service organizations, National Grid aims to contributed more than $1.8 share the responsibility of caring for our communities. million to health and social National Grid and its employees, for example, raised service organizations. National $14,000 during the AIDS Walk Boston. The company’s Grid employees actively partici- fundraising efforts were among the top 10 largest. pated in local events to raise Proceeds from the annual AIDS Walk go to the AIDS funds for these causes. Action Committee to help provide services aimed at Examples include: education, advocacy and prevention of the disease. National Grid employees are also actively involved with AIDS walks the central New York chapter of the Juvenile Diabetes American Diabetes Tour DeCure Research Foundation (JDRF). Each year, a team of American Heart Walk employees raises money to help fund research to find a cure for Juvenile Diabetes by hold- American Cancer Society's ing 50/50 raffles and soliciting spon- Relay for Life sors and donations for the Diabetes Boston Marathon Walk. Together with the company’s Jimmy Fund Walk donation, National Grid’s team has Blow the Whistle on Asthma often ranked as the top giver for the Walk (American Lung annual JDRF walk. Association) Champions Fighting Cancer Walk Great Strides Walk (Cystic Fibrosis Foundation) Juvenile Diabetes Research Foundation Walk to Cure Diabetes Light the Night (Leukemia and Lymphoma Society) Walk America (March of Dimes) Community Report 2005 6 Education – An Investment In Our Future “What a great service. All the infor- National Grid considers education an important investment in our society’s future and has long been a strong mation I have requested over the supporter of educational organizations. We support hundreds of educational institutions financially and through years falls right into my technology varied partnerships and outreach efforts. education curriculum of power and energy. I have used videos, Educational Services Program posters and booklets. They are all In addition to financial contributions, we have a 20-year history of providing our own comprehensive Educational subject and age appropriate.” Services program to teachers and students in grades K-8 in the company’s service territory. Resource materials – –Robert Braid, including student literature, videos and posters that focus on energy with an emphasis on electricity and gas safety, Belmonte Saugus Middle School, energy conservation and the environment – are made available free to teachers. Classroom electricity safety Saugus, Mass. programs are also offered to grades one, three and four in the New England communities – all at no cost to the schools. Each year more than 200,000 student booklets, videos and posters are requested and delivered to teachers in "We have used your materials in the communities served by National Grid. In Massachusetts, Rhode Island and New Hampshire, more than past years and have enjoyed the 2,500 individual classroom safety programs are presented each year, reaching 50,000-60,000 students annually.