UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
                                    Form 10-Q
(Mark One)
 X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
---
                              EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2000
                -------------------------------------------------
                                       OR
    ---TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

For the transition period from               to
                               -------------     ---------------------

                         Commission file number 333-92003-01
                                                -------------

                          KEYSPAN GAS EAST CORPORATION
                          -----------------------------
             (Exact name of Registrant as specified in its charter)

               New York                                   11-3434848
----------------------------------------      --------------------------------
(State or other jurisdiction of )           (I.R.S. Employer Identification No.)
 incorporation or organization)


     175 East Old Country Road, Hicksville, New York        11801
     ---------------------------------------------------------------
       (Address of principal executive offices)           (Zip Code)



                                 (631) 755-6650
                                 ---------------
              (Registrant's telephone number, including area code)

(Former  name,  former  address and former  fiscal year,  if changed  since last
report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No
                                           --

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

   Class of Common Stock                            Outstanding
  -----------------------                          ------------
      $.01 par value                   All Common stock, 100 shares, are held by
                                                  KeySpan Corporation

The  registrant  meets  the  conditions  set  forth  in  Generation  Instruction
(H)(1)(a)  and (b) of Form  10-Q and is  therefore  filing  this  form  with the
reduced disclosure format.


<PAGE>




                          KEYSPAN GAS EAST CORPORATION

                                      INDEX

         Part I.   FINANCIAL INFORMATION                               Page No.
                                                                       --------

Item 1. Financial Statements

         Statement of Income -
         Three Months Ended March 31, 2000 and 1999                         3

         Balance Sheet -
         March 31, 2000 and December 31, 1999                               4

         Statement of Cash Flows -
         Three Months Ended March 31, 2000 and 1999                         6

         Notes to Financial Statements                                      7

Item 2. Management's Discussion and Analysis Of Financial
         Condition and Results of Operations                                10



          Part II.   OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K                                   14


Signatures                                                                  15




                                        2

<PAGE>



                               STATEMENT OF INCOME
                                   (Unaudited)
                            (IN THOUSANDS OF DOLLARS)




<TABLE>
<CAPTION>
                                                                 THREE MONTHS           Three Months
                                                                     ENDED                   Ended
                                                                 MARCH 31, 2000          March 31, 1999
------------------------------------------------------------- ----------------------  ---------------------
<S>                                                                 <C>                    <C>
REVENUES                                            $                298,660     $          268,302
                                                          ------------------       ----------------
OPERATING EXPENSES
Purchased gas                                                        144,262                127,498
Operations and maintenance                                            41,383                 28,474
Depreciation, depletion and amortization                               8,839                  7,168
Operating taxes                                                       27,291                 26,173
                                                          ------------------       ----------------
Total Operating Expenses                                             221,775                189,313
                                                          ------------------       ----------------

OPERATING INCOME                                                      76,885                 78,989
OTHER INCOME                                                           2,054                    505
                                                          ------------------       ----------------
INCOME BEFORE INTEREST CHARGES
  AND INCOME TAXES                                                    78,939                 79,494
INTEREST CHARGES                                                      12,201                 13,469
INCOME TAXES                                                          23,105                 23,095
                                                          ------------------       ----------------
NET INCOME                                                $           43,633       $         42,930
                                                          ==================       ================
</TABLE>















               See accompanying Notes to the Financial Statements.



                                        3

<PAGE>



                                  BALANCE SHEET
                            (IN THOUSANDS OF DOLLARS)


<TABLE>
<CAPTION>
                                                                       MARCH 31, 2000              December 31, 1999
                                                                        (Unaudited)                     (Audited)
                                                                      ---------------              ------------------
<S>                                                                    <C>                           <C>
ASSETS
CURRENT ASSETS
   Customer accounts receivable                              $             160,071    $                  122,889
   Accounts receivable, intercompany                                        45,924                        43,405
   Other accounts receivable                                               124,684                       117,738
   Allowance for uncollectible accounts                                    (10,226)                       (5,310)
   Gas in storage, at average cost                                          14,573                        72,741
   Materials and supplies, at average cost                                   6,035                         5,507
   Other                                                                     1,180                         1,445
                                                                  ----------------                ---------------
                                                                           342,241                       358,415

PROPERTY
   Gas                                                                   1,414,701                     1,393,533
   Accumulated depreciation                                               (253,313)                     (245,956)
                                                                  ----------------               ----------------
                                                                         1,161,388                     1,147,577
                                                                  ----------------               ----------------
DEFERRED CHARGES
   Regulatory assets                                                       184,759                       179,742
   Deferred income tax                                                      46,713                        52,065
   Other                                                                       588                           373
                                                                  ----------------      ------------------------
                                                                           232,060                       232,180
                                                                  ----------------      ------------------------
TOTAL ASSETS                                                 $           1,735,689    $                1,738,172
                                                                  ================      ========================
</TABLE>












               See accompanying Notes to the Financial Statements.



                                        4

<PAGE>



                                  BALANCE SHEET
                            (IN THOUSANDS OF DOLLARS)


<TABLE>
<CAPTION>

                                                                       MARCH 31, 2000          December 31, 1999
                                                                        (Unaudited)                (Audited)
                                                                   -----------------------  ------------------------
<S>                                                                       <C>                     <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
   Current maturities of long-term debt                      $                    -       $         397,000
   Accounts payable and accrued expenses                                    118,941                 142,481
   Taxes accrued                                                             11,836                   5,005
   Customer deposits                                                          3,945                   3,845
   Interest accrued                                                           5,162                       -
                                                                   ----------------      ------------------
                                                                            139,884                 548,331
                                                                   ----------------      ------------------

INTERCOMPANY ACCOUNTS PAYABLE, LONG-TERM                                    215,242                 258,079
                                                                   ----------------      ------------------

DEFERRED CREDITS AND OTHER LIABILITIES
   Regulatory liabilities                                                    26,259                  20,888
   Operating reserves and other                                              81,693                  81,896
                                                                    ---------------       -----------------
                                                                            107,952                 102,784
                                                                   ----------------      ------------------

CAPITALIZATION
   Premium on capital stock                                                 657,862                 657,862
   Retained earnings                                                         38,845                  (4,788)
                                                                  -----------------        -----------------
   Total common shareholders' equity                                        696,707                 653,074
   Long-term debt                                                           575,904                 175,904
                                                                  -----------------        -----------------
TOTAL CAPITALIZATION                                                      1,272,611                 828,978
                                                                   ----------------      ------------------

TOTAL LIABILITIES AND CAPITALIZATION                         $            1,735,689       $       1,738,172
                                                                   ================      ==================
</TABLE>












               See accompanying Notes to the Financial Statements.



                                        5

<PAGE>



                             STATEMENT OF CASH FLOWS
                                   (Unaudited)
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>
                                                                                THREE MONTHS        Three Months
                                                                                   ENDED                Ended
                                                                               MARCH 31, 2000       March 31, 1999
--------------------------------------------------------------------------- -------------------- -------------------
<S>                                                                             <C>                 <C>
OPERATING ACTIVITIES
Net Income                                                                 $      43,633         $    42,930
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
      PROVIDED BY (USED IN) OPERATING ACTIVITIES
   Depreciation, depletion and amortization                                        8,839               7,168
   Deferred income tax                                                             5,352              23,095
CHANGES IN ASSETS AND LIABILITIES
   Accounts receivable and accrued revenues                                      (41,732)            (74,465)
   Materials and supplies, fuel oil and gas in storage                            57,640              57,533
   Accounts payable and accrued expenses                                         (16,709)             10,901
   Interest accrued                                                                5,162                   -
   Other                                                                            (453)             (9,728)
                                                                           -------------      --------------
Net Cash Provided by Operating Activities                                         61,732              57,434
                                                                           -------------      --------------

INVESTING ACTIVITIES
Capital expenditures                                                             (21,895)            (16,796)
                                                                           -------------      --------------
Net Cash (Used in) Investing Activities                                          (21,895)            (16,796)
                                                                           -------------      --------------

FINANCING ACTIVITIES
Issuance of long-term debt                                                       400,000                   -
Repayment of long-term debt                                                     (397,000)                  -
Intercompany accounts payable - long-term debt                                   (42,837)            (40,638)
                                                                           -------------      --------------
Net Cash (Used in) Financing Activities                                          (39,837)            (40,638)
                                                                           -------------      --------------
Net Increase (Decrease) in Cash and Cash Equivalents                                   -                   -
                                                                           =============      ==============

Cash and cash equivalents at beginning of period                           $           -       $           -
Net Increase (Decrease) in cash and cash equivalents                                   -                   -
                                                                           -------------      --------------
Cash and Cash Equivalents at End of Period (See Note 5)                    $           -       $           -
                                                                           =============      ==============
</TABLE>











               See accompanying Notes to the Financial Statements.



                                        6

<PAGE>



NOTES TO FINANCIAL STATEMENTS

   KeySpan Gas East Corporation,  d/b/a KeySpan Energy Delivery Long Island (the
   "Company") is a wholly owned subsidiary of KeySpan  Corporation d/b/a KeySpan
   Energy (the  "Parent").  The Company  provides gas  distribution  services to
   approximately  478,000  customers  in the Long Island  counties of Nassau and
   Suffolk and the Rockaway Peninsula of the Borough of Queens.

1.    BASIS OF PRESENTATION

   In  the  opinion  of  the  Company,  the  accompanying   unaudited  Financial
   Statements contain all adjustments  necessary to present fairly the financial
   position  of the  Company  as of  March  31,  2000,  and the  results  of its
   operations and cash flows for the three months ended March 31, 2000 and 1999.
   The accompanying  financial statements should be read in conjunction with the
   financial  statements  and notes included in the Company's 1999 Annual Report
   on Form 10-K.  Income from interim  periods may not be  indicative  of future
   results.  Certain   reclassifications  were  made  to  conform  prior  period
   financial   statements   with  the   current   period   financial   statement
   presentation.  Other than as noted,  adjustments were of a normal,  recurring
   nature.

2.    REVENUES

   The gas distribution  business is influenced by seasonal weather  conditions.
   Annual gas  revenues are  substantially  realized  during the heating  season
   (November  1 to April  30) as a result  of the large  proportion  of  heating
   sales, primarily residential, compared with total sales. Accordingly, results
   of operations for gas distribution operations historically are most favorable
   in the three  months ended March 31, with  results of  operations  being next
   most favorable in the three months ended December 31. Results for the quarter
   ended  June 30 are  marginally  profitable  or  unprofitable,  and losses are
   generally incurred in the quarter ended September 30.

   The  Company  operates  under  a  utility  tariff  that  contains  a  weather
   normalization  adjustment that largely offsets shortfalls or excesses of firm
   net  revenues  (i.e.,  revenues  less gas costs and revenue  taxes)  during a
   heating season due to variations from normal weather.

3.    ENVIRONMENTAL MATTERS

   The Company has  identified  nineteen  manufactured  gas plant  ("MGP") sites
   which  were   historically   owned  or   operated  by  the  Company  (or  its
   predecessors).  These former sites,  some of which are no longer owned by the
   Company,   have  been  identified  to  the  New  York  State   Department  of
   Environmental  Conservation  ("DEC") for inclusion on appropriate  waste site
   inventories.

   The Company  presently  estimates the cost of its  MGP-related  environmental
   cleanup  activities will be approximately $77 million;  which amount has been
   accrued  by the  Company  as  its  current  best  estimate  of its  aggregate
   environmental liability for known sites. The currently-known



                                        7

<PAGE>



   conditions of the former MGP sites,  their period and magnitude of operation,
   generally  observed cleanup  requirements and costs in the industry,  current
   land  use  and  ownership,   and  possible  reuse  have  been  considered  in
   establishing   contingency  reserves.   The  Company  believes  that  in  the
   aggregate, the accrued liability for investigation and remediation of the MGP
   sites identified above are reasonable estimates of likely cost within a range
   of reasonable, foreseeable costs.

   Eleven sites identified are currently the subject of  Administrative  Consent
   Orders  ("ACO") with the DEC and one recently  identified  site is subject to
   the negotiation of an agreement under the DEC's Voluntary  Clean-up  Program.
   The Company's  remaining MGP sites have also recently been  identified to the
   DEC  and may not  become  subject  to  ACOs  in the  future;  accordingly  no
   liability has been accrued for these sites.

   The current rate plan in effect provides for recovery of environmental costs.
   At  March  31,  2000,  the  Company  has  reflected  a  regulatory  asset  of
   approximately $77 million.  Expenditures incurred to date by the Company with
   respect to MGP-related activities total $5.4 million.

4.    ISSUANCE OF LONG-TERM DEBT

     In  December  1999,  the  Company  and  the  Parent  jointly  filed a shelf
     registration  statement with the Securities and Exchange Commission ("SEC")
     in  anticipation  of issuing up to $600  million of Medium Term  Notes.  On
     February 1, 2000, the Company issued $400 million 7.875% Notes due February
     1, 2010,  the net  proceeds  of which were used to repay the Parent for its
     costs in  extinguishing  certain  promissory notes due LIPA that matured in
     June 1999. The Medium Term Notes are fully and  unconditionally  guaranteed
     by the Parent.

5.    RELATED PARTY TRANSACTIONS

   The Company engages in various transactions with affiliates of the Parent. In
   addition,  all cash  collected  from the Company's gas customers is collected
   and held by the Parent's  corporate and administrative  subsidiary.  Further,
   all payments to third parties for Company payables, including labor, are made
   by the Parent's  corporate  and  administrative  subsidiary  on behalf of the
   Company.  The  Company  is also  obligated  to  reimburse  the Parent for the
   Company's  allocated share of principal and interest on the promissory  notes
   due to the Long  Island  Power  Authority  ("LIPA").  At March  31,  2000 and
   December 31, 1999, the Company had a current intercompany accounts receivable
   balance of $45.9  million and $43.4  million from the Parent's  corporate and
   administrative  subsidiary,  approximating twelve months of interest payments
   on the Company's  long-term  debt  outstanding at March 31, 2000 and December
   31, 1999, respectively.

   The balance of intercompany  accounts  payable amounted to $215.2 million and
   $258.1  million at March 31, 2000 and December 31, 1999,  respectively.  This
   balance  reflects,  primarily,  the  Company's  allocated  pension  and other
   postretirement liability due to the Parent, as well as natural gas purchases.




                                        8

<PAGE>



   The Company incurs expenses  related to services it provides to affiliates of
   the Parent. These expenses are offset by intercompany billings to the various
   affiliates  of the  Parent  for which the  Company  provides  such  services.
   Billings to various  affiliates  of the Parent  amounted to $0.4  million and
   $0.8  million  for the  quarter  ended  March 31,  2000 and  March 31,  1999,
   respectively.  These billings reduced operating  expenses in the accompanying
   Income Statement.

6.    ACQUISITION OF EASTERN ENTERPRISES

   On November 4, 1999, the Parent and Eastern Enterprises ("Eastern") announced
   that the companies had signed a definitive  merger  agreement under which the
   Parent will  acquire all of the common  stock of Eastern for $64.00 per share
   in cash.  The  Agreement  and Plan of Merger is included as an exhibit to the
   Parent's Form 8-K filed on November 5, 1999.

   In connection with the merger,  Eastern has amended its merger agreement with
   EnergyNorth,  Inc.  ("EnergyNorth") to provide for an all cash acquisition by
   Eastern  of  EnergyNorth   shares  at  a  price  per  share  of  $61.13.  The
   restructured  EnergyNorth merger is expected to close  contemporaneously with
   the KeySpan/Eastern transaction.

   The merger is conditioned upon the approval the of the SEC. Shareholders of
   both Eastern and  EnergyNorth,  as well as the New Hampshire Public Utility
   Commission  (with respect to Eastern's  acquisition  of  EnergyNorth)  have
   approved the transactions. The Parent anticipates that the transaction will
   be  consummated  in the third or fourth  quarter of 2000,  but is unable to
   determine when or if the required approval will be obtained.

   Eastern owns and operates Boston Gas Company,  Colonial Gas Company,  Essex
   Gas Company,  Midland  Enterprises Inc., Transgas Inc., and ServicEdge
   Partners, Inc.

7.    NEW FINANCIAL ACCOUNTING STANDARDS

     In June 1999, the Financial Accounting Standards Board ("FASB") issued SFAS
     No. 137,  "Accounting for Derivative  Instruments and Hedging  Activities -
     Deferral of the  Effective  Date of SFAS No.  133." SFAS No. 137 defers the
     effective  date of SFAS No. 133 to fiscal  years  beginning  after July 15,
     2000. The Company will  therefore,  adopt SFAS No. 133 in the first quarter
     of fiscal year 2001.  SFAS No. 133  establishes  accounting  and  reporting
     standards  for  derivative  instruments  and  for  hedging  activities.  It
     requires  that an entity  recognize  all  derivatives  as either  assets or
     liabilities  in the  statement  of  financial  position  and measure  those
     instruments  at fair value.  As of March 31, 2000, the Company did not have
     any derivative financial instruments.







                                        9

<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

NET REVENUES AND GAS SALES QUANTITIES

The table below  highlights net revenues and sales  quantity  statistics for the
Company for the periods indicated.

                            (IN THOUSANDS OF DOLLARS)

                                       Three Months Ended     Three Months Ended
                                           March 31, 2000        March 31, 1999
-------------------------------------- ----------------------------------------
Revenues                            $         298,660 $               268,302
Purchased gas                                 144,262                 127,498
Revenue taxes                                  11,790                  12,900
                                       --------------           -------------
Net Revenues                                  142,608                 127,904
----------------------------------- ----------------- -----------------------
Firm gas sales (MDTH)                          26,879                  25,241
Firm transportation (MDTH)                      2,260                   2,172
Transportation -
   Electric Generation (MDTH)                  12,786                   8,488
Other sales (MDTH)                             10,643                   8,725
Warmer than normal                               8.7%                    8.2%
----------------------------------- ----------------- -----------------------

An MDTH is 10,000 therms (British Thermal Units) and reflects
the heating content of approximately one million cubic feet
of gas. A therm reflects the heating content of
approximately 100 cubic feet of gas.


Net gas revenues  increased during the first quarter of 2000, as compared to the
first quarter of last year, by $14.7  million,  due primarily to the addition of
new gas customers and oil to gas conversions. Long Island has a very low natural
gas saturation rate and significant  gas-sales growth opportunities are believed
to be available. The Company estimates that only 28% of one and two-family homes
on Long Island  currently  use natural gas for space  heating,  while 28% of the
multi-family  market and 69% of the commercial market use gas for space heating.
The Company will seek growth through the expansion of its distribution system as
well  as  through  the  conversion  of  residential  homes  and the  pursuit  of
opportunities to grow multi-family, industrial and commercial markets.

Firm gas sales and transportation  quantities increased during the first quarter
of 2000,  as  compared  to the same  period  last year,  due to an  increase  in
normalized firm sales resulting from gas-sales growth.  Firm gas  transportation
quantities  increased  slightly  in the first  quarter of 2000,  as the  Company
continues its natural gas  deregulation  initiatives.  The Company's net margins
are not



                                       10

<PAGE>



affected by customers  opting to purchase  their gas supply from  sources  other
than the Company,  since distribution rates charged to transportation  customers
are the same as those charged to full sales service customers.

Transportation   quantities   related  to  electric   generation,   reflect  the
transportation of gas to the Parent's electric generating  facilities located on
Long Island. Net revenues from these volumes are minimal.

Other sales quantities include on-system  interruptible  quantities,  off-system
sales  quantities  (sales made to  customers  outside of the  Company's  service
territory)  and related  transportation.  A subsidiary  of the Parent,  which is
responsible  for gas  procurement  and off-system  sales,  has an agreement with
Coral Energy  Resources,  L.P., a subsidiary  of Shell Oil Company  ("Coral") in
which Coral assists in the origination,  structuring, valuation and execution of
energy-related transactions on behalf of the Company. A sharing agreement exists
between gas  ratepayers and the Company for  off-system  gas  transactions.  The
Company's  share of the profits on such  transactions is then shared with Coral.
The Company also shares in revenues arising from certain transactions  initiated
by Coral.

OPERATING EXPENSES

Comparative  operating  expenses  increased by $32.5 million,  or 17.1%,  in the
first  quarter of 2000 as compared to the  corresponding  period last year.  The
increase  in gas costs for the first  quarter of 2000 as  compared  to the first
quarter of last year was due to the increase in gas sales  growth,  as discussed
above and increases in gas prices generally. Variations in gas costs have little
impact on  operating  results as the current gas rate  structure  includes a gas
adjustment clause, pursuant to which variations between actual gas costs and gas
cost  recoveries  are deferred and  subsequently  refunded to or collected  from
customers.  Operations  and  maintenance  expense  in the first  quarter of 2000
reflects,   generally,  higher  labor  costs  and  associated  employee  benefit
expenses, and additional provisions for uncollectible  accounts. The increase in
depreciation and amortization  expense  generally  reflects  continued  property
additions.  Further,  operating  taxes  which  include  state and local taxes on
property have increased as the applicable  property base and tax rates generally
have increased.

OTHER EXPENSES

 Income tax expense  reflects the higher level of pre-tax income for the quarter
ended March 31, 2000 as compared to the corresponding quarter last year.







                                       11

<PAGE>



LIQUIDITY, CAPITAL EXPENDITURES AND FINANCING

LIQUIDITY

Cash flow from  operations  reflects  continued  gas-sales  growth  through  new
customer  additions and oil to gas conversions.  The Company does not maintain a
cash balance.  All cash  generated from billings to customers for gas service is
maintained by the Parent's corporate and administrative subsidiary. Further, all
payments to third parties for Company payables, including labor, are made by the
Parent's corporate and administrative  subsidiary on behalf of the Company. (See
Note 5 to the Financial  Statements,  "Related Party Transactions".) The Company
records as an intercompany  accounts receivable or intercompany accounts payable
to the Parent's corporate and  administrative  subsidiary the difference between
the cash received from customers compared to third party payments.  At March 31,
2000, the Company had an intercompany  accounts payable of $215.2 million due to
the Parent's corporate and administrative  subsidiary. In addition, at March 31,
2000 the Company had a current intercompany accounts receivable balance of $45.9
million from the Parent's corporate and administrative subsidiary, approximating
twelve months of interest  payments on the Company's  long-term debt outstanding
at March 31, 2000.

CAPITAL EXPENDITURES

Capital expenditures were $21.9 million for the quarter ended March 31, 2000 and
were primarily for the renewal and replacement of mains and services and for the
expansion of the gas distribution  system on Long Island.  The amount of capital
expenditures  is  reviewed  on an ongoing  basis and can be  affected by timing,
scope and changes in investment opportunities.

FINANCING

In December 1999, the Company and the Parent jointly filed a shelf  registration
statement with the Securities and Exchange Commission in anticipation of issuing
up to $600 million of Medium Term Notes. On February 1, 2000, the Company issued
$400  million  7.875%  Notes due  February 1, 2010.  The net  proceeds  from the
issuance  were used to repay the Parent for its costs in  extinguishing  certain
promissory  notes due LIPA that matured in June 1999. The notes issued are fully
and unconditionally guaranteed by the Parent.


GAS DISTRIBUTION - RATE MATTERS

By  orders  dated  February  5,  1998 and  April  14,  1998 the  Public  Service
Commission  of the  State of New  York  ("NYPSC")  approved  a  Stipulation  and
Agreement  ("Stipulation")  among KeySpan Energy  Delivery New York, Long Island
Lighting Company,  the Staff of the NYPSC and six other parties that established
gas rates for the Company.  (For more  information on these  agreements refer to
the Company's Annual Report on Form 10-K for the year ended December 31, 1999.)




                                       12

<PAGE>



ENVIRONMENTAL MATTERS

The Company is subject to various  federal,  state and local laws and regulatory
programs  related  to  the   environment.   Ongoing   environmental   compliance
activities,  which  have  not  been  material,  are  charged  to  operation  and
maintenance activities. The Company estimates that the remaining minimum cost of
its  MGP-related  environmental  cleanup  activities will be  approximately  $77
million and has recorded a related  liability  for such amount.  Further,  as of
March 31, 2000, the Company has expended a total of $5.4 million. (See Note 3 to
the Financial Statements "Environmental Matters".)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q concerning expectations, beliefs,
plans,  objectives,   goals,  strategies,   future  events  or  performance  and
underlying  assumptions and other  statements which are other than statements of
historical facts, are "forward-looking statements" within the meaning of Section
21E of the  Securities  Exchange Act of 1934, as amended.  Without  limiting the
foregoing, all statements relating to the Company's future outlook,  anticipated
capital  expenditures,  future cash flows and  borrowings,  pursuit of potential
future  acquisition  opportunities  and sources of funding  are  forward-looking
statements.  Such  forward-looking  statements reflect numerous  assumptions and
involve  a number of risks and  uncertainties  and  actual  results  may  differ
materially from those discussed in such statements. Among the factors that could
cause actual results to differ  materially  are:  available  sources and cost of
fuel;  federal  and state  regulatory  initiatives  that  increase  competition,
threaten cost and investment recovery,  and impact rate structures;  the ability
of the Company to successfully  reduce its cost structure;  inflationary  trends
and interest rates;  and other risks detailed from time to time in other reports
and other  documents  filed by the  Company  with the  Securities  and  Exchange
Commission.  For any of these  statements,  the Company claims the protection of
the  safe  harbor  for  forward-looking  information  contained  in the  Private
Securities Litigation Reform Act of 1995, as amended.




                                       13

<PAGE>



PART II OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits

(27)*  Financial  Data Schedule on Schedule U-T for the quarter ended March 31,
       2000.





-------------------------
*Filed Herewith




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<PAGE>


                          KEYSPAN GAS EAST CORPORATION

                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant has duly caused this report to be signed on behalf of the undersigned
there unto duly authorized.



                                               KEYSPAN GAS EAST CORPORATION
                                               ----------------------------
                                               (Registrant)



Date: May 12, 2000                              /s/ Anne C. Jordan
                                                ---------------------
                                                Anne C. Jordan
                                                Vice President and Chief
                                                Financial Officer


Date: May 12, 2000                              /s/ Paul R. Nick
                                                -----------------
                                                Paul R. Nick
                                                Controller and Chief Accounting
                                                Officer





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