Exhibit 10.14

                        Supplemental Retirement Agreement


     This  Agreement  (the  "Supplemental  Retirement  Agreement")  dated  as of
January 1, 2002 (the "Effective Date") between KeySpan Corporation ("KeySpan" or
the   "Company")  and  H.  Neil  Nichols  (the   "Executive")   sets  forth  the
understanding  and  agreement of the parties as to certain  additional  terms on
which the Executive continues to be employed by KeySpan.

     WHEREAS,  Executive is a Senior Vice President of KeySpan who was initially
engaged as a consultant to Brooklyn  Union and who then was hired as an employee
of KeySpan Energy  Development  Corporation  ("KEDC") on December 5, 1997. As an
employee of KEDC, Executive was not entitled to any pension accruals;

     WHEREAS,  Executive was  subsequently  appointed  Senior Vice  President of
KeySpan  Corporation  on March 1, 1999 and became a Participant in the Employees
Retirement Plan of KeySpan Energy (the "ERP") and KeySpan Executive Supplemental
Pension Plan ("KESPP");

     WHEREAS,  Executive may have limited  pension  benefits due to shorter than
normal  service  at  retirement  and the  Company  desires  to  grant  Executive
additional credited pension service in the calculation of his pension benefit if
he remains employed until at least July 1, 2002;

     WHEREAS,  on  October  24,  2001,  KeySpan's  Compensation  and  Nominating
Committee  recommended  and on December  20, 2001  KeySpan's  Board of Directors
authorized  through a Resolution that the proper officers  provide an individual
supplemental retirement agreement with Executive;

     NOW THEREFORE,  the Company and Executive  agree that Executive will accrue
additional  pension service through this Supplemental  Retirement  Agreement and
the parties agree as follows;

     1.   Upon  Executive's  attainment  of age 65 and his  election  to retire,
          Executive's  pension  benefit  service time will be increased  for the
          time  served as a  consultant  to  KeySpan  and for time  worked as an
          employee of KEDC by adding 2 years and 1 month of  additional  pension
          service  time to the actual  service time  accrued  since  December 5,
          1997.

     2.   When  Executive  retires  pursuant to the terms and conditions of this
          Agreement,  Executives  pension  benefit  service  time  will  also be
          matched by the Company by adding one year of credited  service to both
          the actual time accrued in the pension  plan and the 2 years,  1 month
          in paragraph 1 above.  The aggregate  pension service time,  including
          the matched  time,  will be utilized  to compute  Executive's  pension
          benefit  in  accordance  with the ERP's  formula  and the  KESPP.  The
          pension  benefit will be paid pursuant to the retirement  plan annuity
          option  elected by the  Executive  under the ERP. The matched  service
          time provided  under this agreement will be applicable to any survivor
          option, if any, is elected under the ERP.


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     3.   In the event the Executive  elects to work beyond 65,  Executive shall
          be able to continue to work and earn the  additional  pension  service
          credits with the match formula until August 1, 2003.


     4.   In the event Executive's employment is terminated:

               (a) after a "Change  of  Control"  as such term is defined in the
               KeySpan Senior Executive Change of Control Plan.

               (b) by the Company for any reason other than for "Cause"; or

               (c) by the  Participant  after the  occurrence  of Good Reason as
               such term is  defined  below  and on or before 90 days  after the
               occurrence of Good Reason;

          then the Company agrees that Executive shall  immediately  vest in all
          additional service time earned pursuant to this Agreement. The service
          time provided under this Agreement will be provided in addition to any
          additional  pension service granted Executive  pursuant to the KeySpan
          Senior Executive  Change of Control Plan with such additional  pension
          service time being matched subject to the ten year maximum  limitation
          set forth in 2a. above.

          Cause for termination ("Cause") shall mean Employee's:

               (i) continued  material  failure or inability to achieve required
               performance   results,  or  to  perform  in  a  competent  manner
               following written notice and opportunity to improve  performance,
               (ii) conduct that  constitutes  dishonesty or knowing and willful
               breach of fiduciary  duty;  (iii)  insubordination  or refusal to
               perform  assigned  duties or comply with directions of the Board;
               (iv) conviction by a court of competent  jurisdiction or entry of
               a plea of no  contest  for a  crime  involving  any act of  moral
               turpitude or  unlawful,  dishonest,  or unethical  conduct that a
               reasonable  person would  consider  damaging to the reputation of
               the Company or improper and  unacceptable  conduct by an Employee
               thereof.


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<PAGE>


          Good Reason shall mean any of the following:

               (A) without Employee's  express written consent,  (i) any action,
               or  failure  to take  action,  by the  Company,  the Board or the
               shareholders  of the  Company by the  Company  that  results in a
               diminution in the Executive's position, authority, titles, duties
               or  responsibilities,  or (ii) if  Employee  is  notified  by the
               Executive's  immediate  supervisor  or  the  Chairman  and  Chief
               Executive Officer that a recommendation will be made to the Board
               of Directors of the Company that  Executive's  employment will be
               terminated after a Change of Control.

                    Any isolated,  insubstantial and inadvertent  action that is
               not taken in bad faith and is remedied  by the  Company  promptly
               after  receipt  of notice  thereof  from the  Executive  does not
               constitute "Good Reason";

               (B) a material breach by the Company of any material provision of
               this  Agreement  which,  if  capable of being  remedied,  remains
               unremedied  for more than 15 days after written notice thereof is
               given by Employee to the company;

               (C) without  Employee's  written  consent,  the relocation of the
               principal  executive offices of the Company to a location outside
               the greater New York area;

          For purposes of this agreement,  any good faith  determination of Good
          Reason made by the Employee shall be conclusive.

     5.   Any payment due hereunder will be paid from general assets.

     6.   In the event of the Executive's death prior to retirement,  a survivor
          pension  benefit  for the  additional  service in  paragraph 1 and the
          matched service  provided under this agreement will be provided to the
          Executive's spouse pursuant to the survivor provisions in the ERP.

     7.   KeySpan  and  Executive  agree that should  such  additional  benefits
          earned or accrued  pursuant  to this  Agreement  be  determined  to be
          subject to Section 280G of the Internal  Revenue Code,  KeySpan agrees
          that such  additional  benefits  will be  eligible  for  "Gross Up" in
          accordance with the provisions of the Change of Control Plan.

     8.   Executive  agrees  not  to  disclose  terms  and  conditions  of  this
          Supplemental Retirement Agreement or any confidential information made
          available to or learned by him in the course of the performance of his
          duties at KeySpan  and with  respect to the  business  of KeySpan  and



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<PAGE>

          described in KeySpan 's Statement on Ethical Business Conduct. Any and
          all confidentiality agreements executed by Executive as an employee of
          KeySpan  and  any and  all  agreements  executed  by  Executive  as an
          employee of KeySpan  that  contained  agreements  not to disclose  any
          confidential  information are  incorporated  into this Agreement.  The
          term "confidential" means information disclosed to Executive or known,
          learned,  created or observed by him as a  consequence  of, or through
          his  employment  by KeySpan  concerning  KeySpan or any  subsidiary or
          affiliated  company which is presently existing or which may be formed
          in  the  future,  which  is  confidential,  secret  or  otherwise  not
          generally known in the industry,  and pertains  directly or indirectly
          to the business activities, products, services, customers or processes
          of  KeySpan  or any  of  its  subsidiaries  or  affiliated  companies,
          including,  but not limited to, information  concerning mailing lists,
          publicity,   data,   research,   copyrights,   other  printed  matter,
          photographs, films, reproductions, finances, processes, trade secrets,
          business plans, customer lists and records,  potential customer lists,
          customer billing and other related information.

          Executive shall not take any original or copy of any document or other
          papers, computer diskettes,  methods,  procedures, etc., containing or
          disclosing  such  confidential  information  or documents or summaries
          containing   the  substance  of  any  part  thereof.   Any  record  of
          confidential  information prepared by Executive or which came into his
          possession during the period of employment with KeySpan are and remain
          the property of KeySpan and upon termination of Executive' employment,
          all such  records  and  copies  thereof  shall  either be left with or
          returned to KeySpan.

     9.   Executive  agrees that the  restrictions  contained  in Paragraph 8 of
          this  Agreement are  necessary  for the  protection of KeySpan and any
          breach  thereof  will  cause  KeySpan  damage  for  which  there is no
          adequate  remedy  at  law  and  he  consents  to  the  issuance  of an
          injunction  in  favor of  KeySpan  and its  subsidiaries,  affiliates,
          successors   and  assigns   enjoining  the  breach  of  the  aforesaid
          restrictions by any court of competent jurisdiction.  Executive agrees
          that the  rights of KeySpan  to obtain an  injunction  granted by this
          Paragraph  of the  Agreement  shall not be  considered a waiver of the
          rights of KeySpan to assert any other remedies they may have at law or
          in equity.

     10.  Executive  recognizes and acknowledges that while employed by KeySpan,
          he  had  access  to  certain  confidential  and  proprietary  business
          information  for KeySpan,  including,  but not limited to,  client and
          customer   information  and  customer  lists,  all  of  which  are  of
          substantial  value to the Employer in its business.  Executive further
          acknowledges  that  disclosure of this  information to a competitor of
          KeySpan may result in damage to KeySpan 's business and a loss of good
          will.

          In consideration  thereof,  Executive agrees that from January 1, 2002
          through the second  anniversary of his retirement,  neither  Executive
          nor any corporation,  partnership or other entity controlled by, under



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<PAGE>

          common  control with, or presently  controlling  Executive will (a) in
          the New York City  metropolitan  area and in any area  outside the New
          York City Metropolitan area wherein KeySpan owns and operates lines of
          business  including  Texas;  New Hampshire,  New Jersey,  Connecticut;
          Rhode  Island;  Massachusetts;  Ohio;  Canada;  Northern  Irela1nd and
          Mexico,  travel,  canvas or advertise for, or otherwise assist, render
          services to, become  employed by, be a consultant to, or invest in any
          business  entity or with any individual  engage in, or engage directly
          or  indirectly  in,  any  line or  lines  of  business  carried  on or
          contemplated  which,  directly  or  indirectly,  is  a  competitor  of
          KeySpan,  its  subsidiaries,   affiliated  companies,   successors  or
          assigns,  (b) in the New York City Metropolitan  area, and in any area
          outside the New York City  Metropolitan  area wherein KeySpan owns and
          operates lines of business  including Texas; New Jersey;  Connecticut;
          Rhode  Island;  Massachusetts;  Ohio;  Canada;  Northern  Ireland  and
          Mexico,  travel,  canvas or advertise for, or otherwise assist, render
          services to,  become  employed by, be a consultant to or invest in any
          business  entity or with any individual  engage in, or engage directly
          or indirectly in, any business  entity or with any individual  engaged
          in,  the same or  similar  business  as  KeySpan  , its  subsidiaries,
          affiliated  companies and assigns,  (c) solicit  business or otherwise
          deal  directly or  indirectly  with any  customers or persons who were
          employees  of  customers  or vendors  of  KeySpan , its  subsidiaries,
          affiliated  companies  and  assigns,  at any  time,  (d)  directly  or
          indirectly  divert or attempt to divert from KeySpan , any business in
          which it has been  engaged  during the term of  Executive'  employment
          with KeySpan , or in which it might  reasonably  be expected to become
          engaged,  (e) directly or indirectly interfere or attempt to interfere
          with the relationships  between KeySpan, its subsidiaries,  affiliated
          companies  and  assigns,  their  customers,  employees of customers or
          vendors,  (f)  directly  interfere  or attempt to  interfere  with the
          relationship of employer-employee or principal and agent of any person
          bearing such  relationship to KeySpan , its  subsidiaries,  affiliated
          companies  and assigns,  nor directly  divert or attempt to divert any
          such  person  from  employment  or  representation  of  KeySpan  , its
          subsidiaries,  affiliated  companies and assigns;  provided,  however,
          that Executive  shall not be prohibited by the terms of this Paragraph
          from  investing  in and owning not more than one  percent  (1%) of the
          outstanding  shares of common stock of any corporation,  the shares of
          which are publicly traded  pursuant to the Securities  Exchange Act of
          1934, and/or passively invest as a limited partner in any non-publicly
          traded security.

          Damages  cannot  compensate  KeySpan  in  the  event  of a  breach  or
          violation of this Paragraph and, injunctive relief being essential for
          the protection of KeySpan and its successors and assigns,  in addition
          to other  applicable  remedies,  KeySpan  may obtain  such  injunctive
          relief in the event of any such breach or violation and may assert any
          other remedies it may have at law or in equity.



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<PAGE>


          Notwithstanding  the above,  if  Executive's  employment is terminated
          pursuant to Section 4a., Section 4b., or Section 4c., then the Company
          agrees that such  provision is not  applicable  to  Executive  and all
          restrictions  pursuant to this provision will be waived by the Company
          with respect to Executive's subsequent employment.

     11.  Executive  understands  neither  this  Supplemental   Agreement,   nor
          participation in the ERP or KESPP constitute a contract of employment,
          nor does it impose on the Executive or the Company, any obligation for
          the  Executive  to remain an  employee  or  change  the  status of the
          Executive's employment or the Company's policies regarding termination
          of employment.

     12.  This Agreement shall bind any successor of KeySpan,  its assets or its
          businesses   (whether  direct  or  indirect,   by  purchase,   merger,
          consolidation or otherwise), in the same manner and to the same extent
          that KeySpan would be obligated  under this Agreement if no succession
          had taken place.

          In the case of any  transaction in which a successor  would not by the
          foregoing provision or by operation of law be bound by this Agreement,
          KeySpan shall require such successor  expressly and unconditionally to
          assume  and  agree  to  perform   KeySpan's   obligations  under  this
          Agreement,  in the same  manner and to the same  extent  that  KeySpan
          would be required to perform if no such succession had taken place.

     13.  In the event of any litigation or other proceeding arising out of this
          Agreement after a Change of Control attributable to the subject matter
          of this  Agreement or  enforcement  of rights  asserted in good faith,
          which is initiated by the  Executive,  the  successor to KeySpan shall
          reimburse the  Executive  for all costs and expenses  relating to such
          litigation or other proceeding,  including  reasonable  attorneys fees
          and expenses,  promptly upon receipt of a written demand therefore and
          regardless  of whether such  litigation  results in any  settlement or
          judgment or order in favor of any party.

     14.  This Agreement  shall be governed by and construed in accordance  with
          the  laws of the  State  of New  York  and may be  modified  only by a
          written  instrument  executed by the parties.  This  Agreement  may be
          executed in one or more counterparts, all of which shall be considered
          one and the  same  agreement  and each of which  shall  be  deemed  an
          original.



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<PAGE>





     IN WITNESS  WHEREOF,  KeySpan has caused this Agreement to be executed by a
duly authorized officer and the Executive has executed this Agreement, all as of
the Effective Date.


                                  KEYSPAN CORPORATION



                                  By:  /s/
                                       ---------------------------------------




                                  By:  /s/
                                       ---------------------------------------
                                           H. Neil Nichols








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