Document:

<PAGE>

                                                                   EXHIBIT 10(j)

January 16, 2002

Mr. Williams F. Edwards
Sr. Vice President and CFO
Niagara Mohawk Corporation
300 Erie Blvd. West
Syracuse, NY 13202

Dear Bill:

      I am pleased to offer you the position of Senior Vice President National
Grid USA, and President Niagara Mohawk Power Corporation. Your base salary will
be Four Hundred Thousand Dollars ($400,000.00) per year. You will be eligible
for a salary review on April 1, 2003. Thereafter you will be eligible for a
salary review on our annual executive salary review date, which currently is
April 1st. Your office will be located at Niagara Mohawk's Syracuse facility. Of
course, the offer is contingent upon the successful merger of National Grid and
Niagara Mohawk, and will be effective upon the closing date of the Merger.

      You will be entitled to participate in all benefits and incentive
compensation plans that are provided to executives in ICP I A, including the
services of AYCO for financial consulting and tax preparation. In addition, you
will be provided with a lump sum bonus payment four years after the closing date
equal to 1X your base pay in effect on said date, taxes withheld, provided you
achieve the Merger Performance Objectives agreed to by you and Rick Sergel /
Mike Jesanis. Your performance will be evaluated based upon the percentage of
the objectives achieved. The result will then be used to determine your ultimate
bonus payment. Should your employment be terminated by the Company for any
reason other than "cause" prior to completion of the four year period, you will
receive a prorata bonus payment. Such prorata bonus payment will assume full
achievement of all objectives and reflect 1/48th of the full award opportunity
for each month served beyond the closing date. If no objectives are established,
the full award opportunity will be paid.

      You will receive life insurance at 4X your base pay for the duration of
your Employment Agreement between Niagara Mohawk Holdings, Inc. and you dated
March 17, 1999 as amended, (Employment Agreement). Upon expiration of your
Employment Agreement, you will receive life insurance at 3X your base pay for
your lifetime. Until Niagara Mohawk's health care plans are converted into
National Grid's, you will be entitled to participate in Niagara Mohawk's health
care plans. Upon conversion, you will be entitled to participate in National
Grid's health care programs. Upon termination of your employment you will be
entitled to the health care benefits set forth in Paragraph 4(1) of your
Employment Agreement.

      You will also be entitled to participate in our Executive Supplemental
Retirement Plan Level B. You will be paid a lump sum payment as a result of the
Merger under Niagara Mohawk's Supplemental Executive Retirement Plan, Amended
and Restated as of January 1, 1999, and calculated as if you had experienced a
termination of employment on the date of the Merger. Any future pension benefits
from National Grid USA will be offset by the annuity value

<PAGE>

of such lump sum payment, determined in accordance with the actuarial
equivalence factors defined in National Grid USA Companies' pension plans.

      We will honor your Employment Agreement for thirty-six months from the
closing date of the Merger, subject to the terms set forth in the attached
Amendment.

      Upon the expiration of your Employment Agreement, should your employment
be terminated by the Company without cause, at any time during your employment,
the Company will provide you with a severance payment equal to the greater of
(1) 1.5X your total compensation (base salary and average of the three previous
actual award percentages for ICP I A bonus, or (2) the amount provided for in
any other severance plan in effect for National Grid USA executives of
equivalent status.

      Attached you will find a copy of the Amendment to your Employment
Agreement that you will need to sign. As you are aware, in exchange for signing
the Amendment, you will be provided with a lump sum payment of Five Hundred
Thousand Dollars ($500,000.00), taxes withheld. We expect One Hundred Sixty
Thousand Dollars ($160,000.00) to be paid by Niagara Mohawk prior to the closing
and the remaining Three Hundred Forty Thousand Dollars ($340,000.00) to be paid
by National Grid at the time of closing. If, however, you have not received the
payment from Niagara Mohawk by closing, National Grid will pay the full Five
Hundred Thousand Dollars at the time of closing. If said payment or any other
payment should become subject to the excise tax imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended, then National Grid shall pay said
amount of interest or penalties as set forth in Paragraph 4 (i) & (j) of your
Employment Agreement.

      Bill, I am excited by the prospect of your joining our team and I hope you
accept what I believe to be a very generous offer. If you accept, please sign
below and return both the original of this letter and two originals of the
Amendment to your Employment Agreement to me as soon as possible.

                                               Very truly yours,

                                               /s/ David C. Kennedy

Attachment

Accepted:

_______________

Date:

<PAGE>

                                    AGREEMENT

                                     BETWEEN

                                NATIONAL GRID USA

                                       AND

                               WILLIAM F. EDWARDS

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1.    Defined Terms.......................................................     1

2.    Term of Agreement...................................................     1

3.    Company's Covenants Summarized......................................     2

4.    The Executive's Covenants: Previous Agreement.......................     2

5.    Compensation Other Than Severance Payments..........................     3

6.    Severance Payments..................................................     4

7.    Termination Procedures and Compensation During Dispute..............    10

9.    Successors: Binding Agreement.......................................    13

10.   Notices.............................................................    14

11.   Miscellaneous.......................................................    14

12.   Validity............................................................    15

13.   Counterparts........................................................    15

14.   Settlement of Disputes; Arbitration.................................    15

15.   Definitions.........................................................    16
</TABLE>

<PAGE>

                                    AGREEMENT

      THIS AGREEMENT is made by and between National Grid USA, on behalf of
itself, its affiliates and subsidiaries (the Company), and William F. Edwards
(the Executive).

      WHEREAS the Company considers it essential to the best interests of its
business to foster the continuous employment of key management personnel; and

      WHEREAS the Company recognizes that, as is the case with many
publicly-held companies, the possibility of a Change in Control or a Major
Transaction (as defined in the last section hereof) exists and that such
possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel
to the detriment of the Company; and

      WHEREAS the Company has determined that appropriate steps should be taken
to reinforce and encourage the continued attention and dedication of members of
the management of the Company and its subsidiaries (collectively, the System),
including the Executive, to their assigned duties without distraction in the
face of potentially disruptive circumstances arising from the possibility of a
Change in Control or a Major Transaction;

      NOW THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the Company and the Executive hereby agree as follows:

      1. Defined Terms. The definitions of capitalized terms used in this
Agreement are provided in the last Section hereof.

      2. Term of Agreement. This Agreement shall be effective as of March 15,
2005 and shall continue in effect through March 30, 2006; provided, however, the
term

<PAGE>

                                       2

of this Agreement shall automatically be extended each year for one
additional year unless, not later than December 31 of the preceding year, the
Company or the Executive shall have given notice not to extend this Agreement or
a Change in Control or a Major Transaction shall have occurred prior to such
March 1; provided, however, if a Change in Control or a Major Transaction shall
have occurred during the term of this Agreement, this Agreement shall continue
in effect for a period of thirty-six months beyond the month in which such
Change in Control or Major Transaction occurred.

      3. Company's Covenants Summarized. In order to induce the Executive to
remain in the employ of the National Grid USA Companies and in consideration of
the Executive's covenants set forth in Section 4 hereof, the Company agrees,
under the conditions described herein, to pay the Executive the Severance
Payments described in Section 6.1 hereof and the other payments and benefits
described herein in the event the Executive's employment with the National Grid
USA Companies is terminated following a Change in Control or a Major Transaction
and during the term of this Agreement. The obligations of the Company hereunder
shall be deemed satisfied to the extent payments are made by any National Grid
USA Company. No amount or benefit shall be payable under this Agreement unless
there shall have been (or, under the terms hereof, there shall be deemed to have
been) a termination of the Executive's employment with the National Grid USA
Companies following a Change in Control or a Major Transaction. This Agreement
shall not be construed as creating an express or implied contract of employment
and, except as otherwise agreed in writing between the Executive and the
Company, the Executive shall not have any right to be retained in the employ of
the National Grid USA Companies.

      4. The Executive's Covenants: Previous Agreement. The Executive agrees

<PAGE>
                                       3

that, subject to the terms and conditions of this Agreement, in the event of a
Potential Change in Control or a Potential Major Transaction during the term of
this Agreement, the Executive will remain in the employ of the National Grid USA
Companies until the earliest of (i) a date which is twelve months from the date
of such Potential Change of Control or Potential Major Transaction, (ii) the
date of a Change in Control or a Major Transaction, (iii) the date of
termination by the Executive of the Executive's employment for Good Reason
(determined by treating the Potential Change in Control or Potential Major
Transaction as a Change in Control or a Major Transaction, as applicable, in
applying the definition of Good Reason), by reason of death or Disability or
Retirement, or (iv) the termination by the National Grid USA Companies of the
Executive's employment for any reason.

      5. Compensation Other Than Severance Payments.

            5.1 Following a Change in Control or a Major Transaction and during
the term of this Agreement, during any period that the Executive fails to
perform the Executive's full-time duties with the National Grid USA Companies as
a result of incapacity due to physical or mental illness, the Company shall
provide the Executive with disability benefits equivalent to those under the
Disability Insurance Plan (without regard to any amendment to such plan made
subsequent to the Change in Control or Major Transaction which amendment would
adversely affect the Executive's rights thereunder) until the Executive's
employment is terminated by the Employer for Disability.

            5.2 If the Executive's employment shall be terminated for any reason
following a Change in Control or a Major Transaction and during the term of this
Agreement, the Company shall pay the Executive's full salary to the Executive
through

<PAGE>
                                       4

the Date of Termination at the rate in effect at the time the Notice of
Termination is given, together with all compensation and benefits payable to the
Executive through the Date of Termination under the terms of any compensation or
benefit plan, program or arrangement maintained by the Employer during such
period; except to the extent that the Executive is receiving payments with
respect to such period, or a portion thereof, in accordance with Section 5.1.

            5.3 If the Executive's employment shall be terminated for any reason
following a Change in Control or a Major Transaction and during the term of this
Agreement, the Company shall pay to the Executive the normal post-termination
compensation and benefits due the Executive as such payments become due. Such
post-termination compensation and benefits shall be determined under, and paid
in accordance with, the System's applicable retirement, insurance and other
compensation or benefit plans, programs and arrangements. Provided that the
benefits payable to the Executive pursuant to the National Grid USA Companies'
Basic Severance Plan for Non-Union Employees or its successor and/or the
National Grid USA Companies' Executive Severance Plan or its successor or any
other severance plan or arrangement (the Severance Plans) do not exceed benefits
payable to the Executive under this Agreement, the Executive hereby waives all
rights to benefits pursuant to the Severance Plans.

      6. Severance Payments.

            6.1 Subject to Section 6.2 hereof, the Company shall pay the
Executive the payments described in this Section 6.1 (the Severance Payments)
upon the termination of the Executive's employment following a Change in Control
or a Major Transaction and during the term of this Agreement, in addition to the
payments

<PAGE>
                                       5

and benefits described in Section 5 hereof, unless such termination is (i) by
the Employer for Cause, (ii) by reason of death, Disability or Retirement, or
(iii) by the Executive without Good Reason. The Executive's employment shall be
deemed to have been terminated following a Change in Control or a Major
Transaction by the Employer without cause or by the Executive with Good Reason
if the Executive's employment is terminated prior to a Change in Control or a
Major Transaction without cause at the direction of a Person who has entered
into an agreement with the Company or National Grid Transco plc, the
consummation of which will constitute a Change in Control or a Major
Transaction, or if the Executive terminates his employment with Good Reason
prior to a Change in Control or a Major Transaction (determined by treating a
Potential Change in Control or Potential Major Transaction as a Change in
Control or a Major Transaction, as applicable, in applying the definition of
Good Reason) if the circumstance or event which constitutes Good Reason occurs
at the direction of such Person.

            (A) In lieu of any further salary payments to the Executive for
periods subsequent to the Date of Termination, the Company shall pay to the
Executive a lump sum severance payment, in cash, equal to three times the sum of
(i) the higher of the Executive's annual base salary in effect as of the Date of
Termination or in effect immediately prior to the Change in Control or Major
Transaction, and (ii) the higher of the average amount paid to the Executive
pursuant to the National Grid USA Companies' Incentive Compensation Plan and
National Grid USA Companies' Incentive Share Plan or successors of any such
plans, with respect to the three years preceding the year in which the Date of
Termination occurs or the average amount paid with respect to the three years
preceding the year in which the Change in Control

<PAGE>
                                       6

or Major Transaction occurs.

            (B) In addition to the retirement benefits to which the Executive is
entitled under each Pension Plan or any successor plan thereto, the Company
shall pay the Executive a lump sum amount, in cash, equal to the excess of (x)
the actuarial equivalent of the retirement pension (taking into account any
early retirement subsidies associated therewith and determined as a straight
life annuity commencing at the later of age fifty-five or the third anniversary
of the Date of Termination) which the Executive would have accrued under the
terms of each such Pension Plan (without regard to any amendment to such Pension
Plan made subsequent to a Change in Control or a Major Transaction, which
amendment adversely affects in any manner the computation of retirement benefits
thereunder), determined as if the Executive were fully vested thereunder and had
accumulated (after the Date of Termination) thirty-six additional months of
service credit thereunder and had been credited under each such Pension Plan
during such period with compensation at the higher of (a) Executive's
compensation (as defined in such Pension Plan) during the twelve months
immediately preceding the Date of Termination or (b) Executive's compensation
(as defined in such Pension Plan) during the twelve months immediately preceding
the Change in Control or Major Transaction, over (y) the actuarial equivalent of
the retirement pension (taking into account any early retirement subsidies
associated therewith and determined as a straight life annuity commencing at the
later of age fifty-five or the Date of Termination) which the Executive had
accrued pursuant to the provisions of each such Pension Plan as of the Date of
Termination. For purposes of this Section 6.1(B), "actuarial equivalent" shall
be determined using the same methods and assumptions utilized under the Niagara
Mohawk Pension Plan immediately prior

<PAGE>
                                       7

to the Date of Termination (without regard to any amendment of such methods and
assumptions made subsequent to a Change in Control or a Major Transaction, which
amendment results in a lower actuarial equivalent value). The discount rate used
for the calculation of benefits hereunder shall be that used by the System for
valuing the liabilities of the Niagara Mohawk Pension Plan (or a successor
thereto) immediately prior to the Date of Termination. In determining the
retirement pension described in both (x) and (y) of this paragraph, said (x) and
(y) benefit calculations shall be offset by the annuity value of the lump sum
payment (determined in accordance with the actuarial factors defined in National
Grid USA Companies' pension plans) the Executive received under Niagara Mohawk's
Supplemental Executive Retirement Plan, amended and restated as of January 1,
1999, at the time of the merger between National Grid and Niagara Mohawk. The
application of said offset to (x) and (y) shall never result in a dollar amount
less than $0. Nothing in this offset calculation shall have any affect on the
value or delivery of the Executive's vested benefit pursuant to the Niagara
Mohawk Pension Plan.

            (C) The Company shall provide the Executive with the medical,
prescription, drug, dental and hospitalization benefits set forth in Paragraph 4
(I) of the Employment Agreement between Niagara Mohawk Power Corporation and
William F. Edwards dated May 17, 1999, as amended (Employment Agreement) for the
lifetime of the Executive and his eligible dependents, and life insurance at 3X
the Executive's base pay in effect as of (1) the Date of Termination or (2)
immediately prior to the Change in Control or Major Transaction, whichever is
higher, for the Executive's lifetime.

            6.2 Notwithstanding any other provisions of this Agreement, in the

<PAGE>
                                       8

event that any payment or benefit received or to be received by the Executive in
connection with a Change in Control or a Major Transaction, or the termination
of the Executive's employment (whether pursuant to the terms of this Agreement
or any other plan, arrangement or agreement with the System, any Person whose
actions result in a Change in Control or a Major Transaction or any Person
affiliated with the System or such Person) (all such payments and benefits,
including the Severance Payments, being hereinafter called "Total Payments")
would be subject (in whole or part), to the Excise Tax, then the Severance
Payments shall be reduced to the extent necessary so that no portion of the
Total Payments is subject to the Excise Tax (after taking into account any
reduction in the Total Payments provided by reason of section 280G of the Code
in such other plan, arrangement or agreement) if (A) the net amount of such
Total Payments, as so reduced, (and after deduction of the net amount of
federal, state and local income tax on such reduced Total Payments) is greater
than (B) the excess of (i) the net amount of such Total Payments, without
reduction (but after deduction of the net amount of federal, state and local
income tax on such Total Payments), over (ii) the amount of Excise Tax to which
the Executive would be subject in respect of such Total Payments. For purposes
of determining whether and the extent to which the Total Payments will be
subject to the Excise Tax, (i) no portion of the Total Payments the receipt or
enjoyment of which the Executive shall have effectively waived in writing prior
to the Date of Termination shall be taken into account, (ii) no portion of the
Total Payments shall be taken into account which in the opinion of tax counsel
selected by the Company does not constitute a "parachute payment" within the
meaning of section 280G(b)(2) of the Code, (including by reason of section
280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of

<PAGE>
                                       9

such Total Payments shall be taken into account which constitutes reasonable
compensation for services actually rendered, within the meaning of section
280G(b)(4)(B) of the Code, in excess of the Base Amount allocable to such
reasonable compensation, and (iii) the value of any noncash benefit or any
deferred payment or benefit included in the Total Payments shall be determined
by the Company in accordance with the principles of sections 280G(d)(3) and (4)
of the Code. Prior to the payment date set forth in Section 6.3 hereof, the
Company shall provide the Executive with its calculation of the amounts referred
to in this Section and such supporting materials as are reasonably necessary for
the Executive to evaluate the Company's calculations. If the Executive objects
to the Company's calculations, the Company shall pay to the Executive such
portion of the Severance Payments (up to 100% thereof) as the Executive
determines is necessary to result in the Executive receiving the greater of
clauses (A) and (B) of this Section.

            6.3 The payments provided for in Section 6.1 (other than Section
6.1(C)) hereof shall be made not later than the fifth day following the Date of
Termination, provided, however, that if the amounts of such payments, and the
limitation on such payments set forth in Section 6.2 hereof, cannot be finally
determined on or before such day, the Company shall pay to the Executive on such
day an estimate, as determined in good faith by the Company, of the minimum
amount of such payments to which the Executive is clearly entitled and shall pay
the remainder of such payments (together with interest at the rate provided in
section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be
determined but in no event later than the thirtieth day after the Date of
Termination. In the event that the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such

<PAGE>
                                       10

excess shall constitute a loan by the Company to the Executive, payable on the
fifth business day after demand by the Company (together with interest at the
rate provided in section 1274(b)(2)(B) of the Code). At the time that payments
are made under this Section, the Company shall provide the Executive with a
written statement setting forth the manner in which such payments were
calculated and the basis for such calculations including, without limitation,
any opinions or other advice the Company has received from counsel, auditors or
consultants (and any such opinions or advice which are in writing shall be
attached to the statement).

            6.4 The Company also shall pay to the Executive all legal fees and
expenses incurred by the Executive in disputing in good faith any termination of
his employment hereunder or in seeking in good faith to obtain or enforce any
benefit or right provided by this Agreement or in connection with any tax audit
or proceeding to the extent attributable to the application of section 4999 of
the Code to any payment or benefit provided hereunder. Such payments shall be
made within five business days after delivery of the Executive's written
requests for payment accompanied with such evidence of fees and expenses
incurred as the Company reasonably may require.

      7. Termination Procedures and Compensation During Dispute.

            7.1 Notice of Termination. After a Change in Control or a Major
Transaction and during the term of this Agreement, any purported termination of
the Executive's employment (other than by reason of death) shall be communicated
by written Notice of Termination from one party hereto to the other party hereto
in accordance with Section 10 hereof. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and

<PAGE>
                                       11

circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated. Further, a Notice of Termination
for Cause is required to include a copy of a statement from the Chief Executive
Officer of National Grid USA and the Chief Executive Officer of National Grid
Transco plc or his designee, that in the good faith opinion of the two (after
reasonable notice to the Executive and an opportunity for the Executive,
together with the Executive's counsel, to be heard) that the Executive was
guilty of conduct set forth in clause (i) or (ii) of the definition of Cause
herein. Said statement shall specify the particulars thereof in detail.

            7.2 Date of Termination. "Date of Termination", with respect to any
purported termination of the Executive's employment after a Change in Control or
a Major Transaction and during the term of this Agreement, shall mean (i) if the
Executive's employment is terminated for Disability, thirty days after Notice of
Termination is given (provided that the Executive shall not have returned to the
full-time performance of the Executive's duties during such thirty-day period),
and (ii) if the Executive's employment is terminated for any other reason, the
date specified in the Notice of Termination (which, in the case of a termination
by the Employer, shall not be less than thirty days (except in the case of a
termination for Cause) and, in the case of a termination by the Executive, shall
not be less than fifteen days nor more than sixty days, respectively, from the
date such Notice of Termination is given).

            7.3 Dispute Concerning Termination. If within fifteen days after any
Notice of Termination is given, or, if later, prior to the Date of Termination
(as determined without regard to this Section 7.3), the party receiving such
Notice of Termination notifies the other party that a dispute exists concerning
the termination,

<PAGE>
                                       12

the Date of Termination shall be the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final
judgment, order or decree of a court of competent jurisdiction (which is not
appealable or with respect to which the time for appeal therefrom has expired
and no appeal has been perfected); provided further that the Date of Termination
shall be extended by a notice of dispute only if such notice is given in good
faith and the party giving such notice pursues the resolution of such dispute
with reasonable diligence.

            7.4 Compensation During Dispute. If a purported termination occurs
following a Change in Control or a Major Transaction and during the term of this
Agreement, and such termination is disputed in accordance with Section 7.3
hereof, the Company shall pay the Executive the full compensation in effect when
the notice giving rise to the dispute was given (including, but not limited to,
salary) and continue the Executive as a participant in all compensation, benefit
and insurance plans in which the Executive was participating when the notice
giving rise to the dispute was given, until the dispute is finally resolved in
accordance with Section 7.3 hereof. Amounts paid under this Section 7.4 are in
addition to all other amounts due under this Agreement (other than those due
under Section 5.2 hereof) and shall not be offset against or reduce any other
amounts due under this Agreement.

      8. No Mitigation. The Company agrees that, if the Executive's employment
with the National Grid USA Companies terminates during the term of this
Agreement, the Executive is not required to seek other employment or to attempt
in any way to reduce any amounts payable to the Executive by the Company
pursuant to this Agreement. Further, the amount of any payment or benefit
provided for in this Agreement shall not be reduced by any compensation earned
by the Executive as the

<PAGE>
                                       13

result of employment by another employer, by retirement benefits, by offset
against any amount claimed to be owed by the Executive to the System, or
otherwise.

      9. Successors: Binding Agreement.

            9.1 In addition to any obligations imposed by law upon any successor
to the Company, the Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle the Executive to compensation from the Company in
the same amount and on the same terms as the Executive would be entitled to
hereunder if the Executive were to terminate the Executive's employment for Good
Reason after a Change in Control or a Major Transaction, except that, for
purposes of implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the Date of Termination.

            9.2 This Agreement shall inure to the benefit of and be enforceable
by the Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive shall
die while any amount would still be payable to the Executive hereunder (other
than amounts which, by their terms, terminate upon the death of the Executive)
if the Executive had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
the executors, personal

<PAGE>
                                       14

representatives or administrators of the Executive's estate.

      10. Notices. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below, or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon actual receipt:

            To the Company:

            National Grid USA Service Company
            25 Research Drive
            Westborough, MA 01582-0099
            Attention: Chief Executive Officer

            To the Executive:
            William F. Edwards
            6109 Lakeshore Road
            Cicero,  NY  13039

      11. Miscellaneous. No provision of this Agreement may be modified, waived
or discharged unless such waiver, modification or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the Chief Executive Officer of National Grid USA and the Chief
Executive Officer of National Grid Transco plc or his designee. No waiver by
either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. This Agreement
supersedes any other agreements or

<PAGE>
                                       15

representations, oral or otherwise, express or implied, with respect to the
subject matter hereof except for the following agreements set forth in the
January 11, 2002 Letter between the Company and the Executive, which shall
remain in effect: (1) the agreement to pay the Executive a bonus payment on
January 31, 2006 if the Executive meets certain performance objectives; (2) the
agreement to provide the Executive with life insurance at 3X his base pay for
his lifetime; and (3) the agreement to provide the Executive and his eligible
dependents for the lifetime of the Executive and his eligible dependents with
the medical, prescription, drug, dental and hospitalization benefits set forth
in Paragraph 4 (l) of the Employment Agreement. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
The Commonwealth of Massachusetts. All references to sections of the Exchange
Act or the Code shall be deemed also to refer to any successor provisions to
such sections. Any payments provided for hereunder shall be paid net of any
applicable withholding required under federal, state or local law and any
additional withholding to which the Executive has agreed. The obligations of the
Company and the Executive under Sections 6 and 7 shall survive the expiration of
the term of this Agreement.

      12. Validity. The invalidity or unenforceability or any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

      13. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

      14. Settlement of Disputes; Arbitration. All claims by the Executive for

<PAGE>
                                       16

benefits under this Agreement shall be directed to and determined by the Chief
Executive Officer of National Grid USA and the Chief Executive Officer of
National Grid Transco plc or his designee and shall be in writing. Any denial by
the Chief Executive Officer of National Grid USA and the Chief Executive Officer
of National Grid Transco plc or his designee of a claim for benefits under this
Agreement shall be delivered to the Executive in writing and shall set forth the
specific reasons for the denial and the specific provisions of this Agreement
relied upon. The Chief Executive Officer of National Grid USA and the Chief
Executive Officer of National Grid Transco plc or his designee shall afford a
reasonable opportunity to the Executive for a review of the decision denying a
claim and shall further allow the Executive to appeal to the Chief Executive
Officer of National Grid USA and the Chief Executive Officer of National Grid
Transco plc or his designee, a decision of the Chief Executive Officer of
National Grid USA and the Chief Executive Officer of National Grid Transco plc
or his designee within sixty days after notification by the Chief Executive
Officer of National Grid USA and the Chief Executive Officer of National Grid
Transco plc or his designee that the Executive's claim has been denied. Any
further dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Boston, Massachusetts,
in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction; provided, however, that the Executive shall be entitled to seek
specific performance of the Executive's right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising under or
in connection with this Agreement.

      15. Definitions. For purposes of this Agreement, the following terms shall

<PAGE>
                                       17

have the meanings indicated below:

      (A) "Base Amount" shall have the meaning defined in section 280G(b)(3) of
the Code.

      (B) "Cause" for termination by the Employer of the Executive's employment,
after any Change in Control or Major Transaction, shall mean (i) the willful and
continued failure by the Executive to substantially perform the Executive's
duties with the System (other than any such failure resulting from the
Executive's incapacity due to physical or mental illness or any such actual or
anticipated failure after the issuance of a Notice of Termination for Good
Reason by the Executive pursuant to Section 7.1) after a written demand for
substantial performance is delivered to the Executive by the Chief Executive
Officer of National Grid USA and the Chief Executive Officer of National Grid
Transco plc or his designee, which demand specifically identifies the manner in
which the Chief Executive Officer of National Grid USA and the Chief Executive
Officer of National Grid Transco plc or his designee believes that the Executive
has not substantially performed the Executive's duties, or (ii) the willful
engaging by the Executive in conduct which is demonstrably and materially
injurious to the System, monetarily or otherwise. For purposes of clauses (i)
and (ii) of this definition, no act, or failure to act, on the Executive's part
shall be deemed "willful" unless done, or omitted to be done, by the Executive
not in good faith and without reasonable belief that the Executive's act, or
failure to act, was in the best interest of the System.

      (C) A "Change in Control" shall be deemed to have occurred if the
conditions set forth in any of the following paragraphs shall have been
satisfied:

            (I)   any Person or Persons in concert obtains Control (as defined
                  in

<PAGE>
                                       18

                  Section 840 of the United Kingdom's Income and Corporation
                  Taxes Act 1988) of National Grid Transco plc as a result of
                  making a general offer to acquire shares in National Grid
                  Transco plc or having obtained Control, makes such an offer;

            (II)  the consummation of the sale or disposition by National Grid
                  Transco plc of National Grid USA to a non-affiliated entity
                  (whether by merger, sale of all or substantially all of the
                  capital stock or assets of National Grid USA or otherwise);

            (III) the complete liquidation, dissolution or winding up of
                  National Grid Transco plc and/or of National Grid USA; or

            (IV)  the acquisition by National Grid Transco plc or National Grid
                  USA or their successors of all or substantially all of the
                  assets of or ownership of all or substantially all of the
                  outstanding shares of a U.S. electric and/or gas utility
                  company which would increase the size or revenues of National
                  Grid USA by 25% or more.

                        A Change in Control shall not be deemed to have occurred
                  if the events referred to above are part of an arrangement ("a
                  Reorganization") which will mean that National Grid Transco
                  plc and/or National grid USA will be under the Control of
                  another company or the business of National Grid Transco plc
                  is carried on by another company, and the Persons who owned
                  the shares in National Grid Transco plc immediately before the
                  Change in Control will immediately afterwards own more than
                  50% of the shares in that other company.

<PAGE>
                                       19

            (D) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

            (E) "Company" shall mean National Grid USA and any successor to its
business and/or assets which assumes and agrees to perform this Agreement by
operation of law, or otherwise (except in determining, under Section 15(C)
hereof, whether or not any Change in Control or Major Transaction has occurred
in connection with such succession).

            (F) "Date of Termination" shall have the meaning stated in Section
7.2 hereof.

            (G) "Disability" shall be deemed the reason for the termination by
the Employer of the Executive's employment, if, as a result of the Executive's
incapacity due to physical or mental illness, the Executive shall have been
absent from the full-time performance of the Executive's duties with the System
for a period of six consecutive months, the Company shall have given the
Executive a Notice of Termination for Disability, and, within thirty days after
such Notice of Termination is given, the Executive shall not have returned to
the full-time performance of the Executive's duties.

            (H) "Disability Insurance Plan" shall mean the Company Disability
Insurance Plan or any successor thereto.

            (I) "Employer" shall mean the National Grid USA company by which the
Executive is employed at the time of termination.

            (J) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time.

            (K) "Excise Tax" shall mean any excise tax imposed under section

<PAGE>
                                       20

4999 of the Code.

            (L) "Executive" shall mean the individual named in the first
paragraph of their Agreement.

            (M) "Good Reason" for termination by the Executive of the
Executive's employment shall mean the occurrence (without the Executive's
express written consent) of any one of the following acts by the System, or
failures by the System to act, unless, in the case of any act or failure to act
described in paragraph (IV), (V), or (VI) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

                  (I) a reduction in the Executive's annual base salary as in
            effect on the date hereof or as the same may be increased from time
            to time;

                  (II) requiring the Executive to be based at a location more
            than 100 miles from Syracuse, New York except for required travel on
            the System's business to an extent substantially consistent with the
            Executive's present business travel obligations;

                  (III) the failure by the Employer, to pay to the Executive any
            portion of the Executive's compensation within seven days of the
            date such compensation is due;

                  (IV) the failure by the System to continue in effect any
            compensation plan in which the Executive participates immediately
            prior to the Change in Control or the Major Transaction which is
            material to the Executive's total compensation, including but not
            limited to the National Grid USA Companies' Incentive Compensation
            Plan, National

<PAGE>
                                       21

            Grid USA Companies' Incentive Share Plan, National Grid USA
            Companies' Deferred Compensation Plan and National Grid USA
            Companies' Executive Supplemental Retirement Plan or any substitute
            plans adopted prior to the Change in Control or Major Transaction,
            unless an equitable arrangement (embodied in an ongoing substitute
            or alternative plan) has been made with respect to such plan, or the
            failure by the System to continue the Executive's participation
            therein (or in such substitute or alternative plan) on a basis not
            substantially less favorable, both in terms of the amount of
            benefits provided and the level of the Executive's participation
            relative to other participants, as existed at the time of the Change
            in Control or Major Transaction;

                  (V) the failure by the System to continue to provide the
            Executive with benefits substantially similar to those enjoyed by
            the Executive under any of the System's pension, life insurance,
            medical, health and accident, or disability plans in which the
            Executive was participating at the time of the Change in Control or
            the Major Transaction, the taking of any action by the System which
            would directly or indirectly materially reduce any of such benefits
            or deprive the Executive of any material fringe benefit enjoyed by
            the Executive at the time of the Change in Control or Major
            Transaction, or the failure by the Employer to provide the Executive
            with the number of paid vacation days to which the Executive is
            entitled on the basis of years of service with the National Grid USA
            Companies in accordance with the Employer's normal vacation policy
            in effect at the time of the Change in Control or Major

<PAGE>
                                       22

            Transaction; or

                  (VI) any purported termination of the Executive's employment
            which is not effected pursuant to a Notice of Termination satisfying
            the requirements of Section 7.1; for purposes of this Agreement, no
            such purported termination shall be effective.

            The Executive's right to terminate the Executive's employment for
Good Reason shall not be affected by the Executive's incapacity due to physical
or mental illness. The Executive's continued employment shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act
constituting Good Reason hereunder.

      (N) A "Major Transaction" shall be deemed to have occurred if the
conditions set forth in any one of the following paragraphs shall have been
satisfied:

                  (I)   any Person becomes bound or entitled to acquire shares
                        in National Grid Transco plc under Sections 428 to 430F
                        of the United Kingdom's Companies Act 1985, or a scheme
                        of arrangement or compromise under Section 425 of the
                        United Kingdom's Companies Act 1985 is proposed for
                        National Grid Transco plc;

                  (II)  National Grid Transco plc shareholders, National Grid
                        USA's shareholders and/or the Board of Directors of
                        National Grid USA approve the sale of National Grid USA
                        to a non-affiliated entity (whether by merger, sale of
                        all or substantially all of the capital stock or assets
                        of National Grid USA, or otherwise);

<PAGE>
                                       23

                  (III) National Grid Transco plc passes a resolution for
                        voluntary winding up, or an order is made for the
                        compulsory winding up of National Grid Transco plc
                        and/or National Grid USA;

                  (IV)  the shareholders of National Grid Transco plc, the
                        shareholders of National Grid USA and/or the Board of
                        Directors of National Grid USA approve an event the
                        consummation of which would result in the occurrence of
                        a Change in Control; or

                  (V)   the Board of Directors of National Grid Transco plc
                        adopts a resolution that, for purposes of this
                        Agreement, a Major Transaction has occurred.

                              A Major Transaction shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National Grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

            (O) "National Grid USA Companies" shall mean all National Grid USA
companies, collectively.

<PAGE>
                                       24

            (P) "National Grid USA Company" shall mean a subsidiary of the
Company.

            (Q) "Notice of Termination" shall have the meaning stated in Section
7.1 hereof.

            (R) "Pension Plan" shall mean Niagara Mohawk Pension Plan and
National Grid USA Companies' Executive Supplemental Retirement Plan.

            (S) "Person" shall mean any individual, corporation, partnership,
trust, unincorporated association, business or other legal entity, and any
government or any governmental agency or political subdivision thereof.

            (T) A "Potential Change in Control" shall be deemed to have occurred
if the conditions set forth in any one of the following paragraphs shall have
been satisfied:

            (I)   the Company or National Grid Transco plc enters into an
                  agreement, the consummation of which would result in the
                  occurrence of a Change in Control;

            (II)  the Company, National Grid Transco plc or any Person publicly
                  announces an intention to take or to consider taking actions
                  which, if consummated, would constitute a Change in Control;

            (III) any Person who is not, as of the date hereof, the owner,
                  directly or indirectly, of securities constituting 10% or more
                  of the combined voting power of all of the outstanding voting
                  securities of National Grid Transco plc or any successor
                  thereof (a "10% Holder") becomes a 10% Holder;

            (IV)  any Person who is, as of the date hereof, a 10% Holder,
                  acquires

<PAGE>
                                       25

                  (whether in a single transaction or a series of transactions),
                  directly or indirectly, additional securities constituting 5%
                  or more of the combined voting power of all of the outstanding
                  voting securities of National Grid Transco plc or any
                  successor thereof (for purposes hereof, a Person who, as of
                  any particular date, holds, directly or indirectly, options to
                  purchase securities that are exercisable within sixty days of
                  such date shall be deemed to own such securities as of such
                  date); or

            (V)   the Board of Directors of National Grid Transco plc adopts a
                  resolution to the effect, that for purposes of this Agreement,
                  a potential Change in Control has occurred.

                        A Potential Change in Control shall not be deemed to
                  have occurred if the events referred to above are part of an
                  arrangement ("a Reorganization") which will mean that National
                  Grid Transco plc and/or National Grid USA will be under the
                  control of another company or the business of National Grid
                  Transco plc is carried on by another company, and the Persons
                  who owned the shares in National Grid Transco plc immediately
                  before the series of transactions are consummated will
                  immediately after consummation own more than 50% of the shares
                  in that other company.

            (U) A "Potential Major Transaction" shall be deemed to have occurred
if the conditions set forth in any one of the following paragraphs shall have
been satisfied:

<PAGE>
                                       26

                  (I)   the Company enters into an agreement, the consummation
                        of which would result in the occurrence of a Major
                        Transaction;

                  (II)  the Company or any Person publicly announces an
                        intention to take or to consider taking actions which,
                        if consummated, would constitute a Major Transaction; or

                  (III) the Board of Directors of National Grid Transco plc
                        adopts a resolution to the effect that, for purposes of
                        this Agreement, a Potential Major Transaction has
                        occurred.

            (V) "Retirement" shall be deemed the reason for the termination by
the Employer or the Executive of the Executive's employment if such employment
is terminated in accordance with the Employer's written mandatory retirement
policy, if any, as in effect immediately prior to the Change in Control or Major
Transaction, or in accordance with any retirement arrangement established with
the Executive's written consent with respect to the Executive.

            (W) "Severance Payments" shall mean those payments described in
Section 6.1 hereof.

            (X) "System" shall mean the Company and the National Grid USA
companies, collectively.

            (Y) "Total Payments" shall mean those payments described in Section
6.2 hereof.

<PAGE>
                                       27

                                          National Grid USA

                                          By___________________________________
                                            Chief Executive Officer

                                          ___________________________________
                                            William F. Edwards<PAGE>

                                                                   EXHIBIT 10(l)

                                    AMENDMENT
                                       TO
                         SEVERANCE PROTECTION AGREEMENT

      The Agreement dated February 25, 1997, between New England Electric
System, a Massachusetts business trust (the Company), and Lawrence J. Reilly
(the Executive) is hereby amended by amending Section 6.2 to read as follows:

            6.2 Notwithstanding any other provisions of this Agreement, in the
      event that any payment or benefit received or to be received by the
      Executive in connection with a Change in Control or a Major Transaction,
      or the termination of the Executive's employment (whether pursuant to the
      terms of this Agreement or any other plan, arrangement or agreement with
      the System, any Person whose actions result in a Change in Control or a
      Major Transaction or any Person affiliated with the System or such Person)
      (all such payments and benefits, including the Severance Payments, being
      hereinafter called Total Payments) would be subject (in whole or part), to
      the Excise Tax, then the Severance Payments shall be reduced to the extent
      necessary so that no portion of the Total Payments is subject to the
      Excise Tax (after taking into account any reduction in the Total Payments
      provided by reason of section 280G of the Code in such other plan,
      arrangement or agreement) if (A) the net amount of such Total Payments, as
      so reduced, (and after deduction of the net amount of federal, state and
      local income tax on such reduced Total Payments) is greater than (B) the
      excess of (i) the net amount of such Total Payments, without reduction
      (but after deduction of the net amount of federal, state and local income
      tax on such Total Payments), over (ii) the amount of Excise Tax to which
      the Executive would be subject in respect of such Total Payments. For
      purposes of determining whether and the extent to which the Total Payments
      will be subject to the Excise Tax, (i) no portion of the Total Payments
      the receipt or enjoyment of which the Executive shall have effectively
      waived in writing prior to the Date of Termination shall be taken in to
      account, (ii) no portion of the Total Payments shall be taken into account
      which in the opinion of tax counsel selected by the Company does not
      constitutes a "parachute payment" within the meaning of section 280G(b)(2)
      of the Code, (including by reason of section 280G(b)(4)(A) of the Code)
      and, in calculating the Excise Tax, no portion of such Total Payments
      shall be taken into account which constitutes reasonable compensation for
      services actually rendered, within the meaning of section 280G(b)(4)(B) of
      the Code, in excess of the Base Amount allocable to such reasonable
      compensation, and (iii) the value of any noncash benefit or any deferred
      payment or benefit included in the Total Payments shall be determined by
      the Company in accordance with the principles of sections 280G(d)(3) and
      (4) of the Code. Prior to the payment date set forth in Section 6.3
      hereof, the Company shall provide the Executive with its calculation of
      the amounts referred to in this Section and such supporting materials as
      are reasonably necessary for the Executive to evaluate the Company's
      calculations. If the Executive objects to the Company's calculations, the
      Company shall pay to the Executive such portion of the Severance Payments
      (up to 100% thereof) as the Executive determines is necessary to result in
      the Executive receiving the greater of clauses (A) and (B) of this
      Section.

<PAGE>

Dated: 12/9/98

                                                       /s/ George M. Sage
                                                --------------------------------
                                                Chairman, Compensation Committee

                                                       /s/ Lawrence J. Reilly
                                                --------------------------------
                                                Executive

<PAGE>

                   Amendment to Severance Protection Agreement

      This Amendment is made and entered into by and between National Grid USA
and Lawrence J. Reilly (the Executive).

      WHEREAS, National Grid Group plc, the predecessor of National Grid Transco
plc, and New England Electric System merged on March 22, 2000 (Merger).

      WHEREAS, as a result of the Merger, the Executive became an employee of
National Grid USA, a subsidiary of National Grid Group plc;

      WHEREAS, New England Electric System and the Executive entered into a
Severance Protection Agreement dated February 25, 1997 and amended on December
9, 1998 (the Agreement) to which National Grid USA became the successor.

      WHEREAS, as a result of the Merger, a Change in Control occurred under the
Agreement which would cause the Agreement to terminate on March 22, 2003.

      WHEREAS, the parties would like to extend the term of the Agreement,
effective March 15, 2003, and amend the Agreement, in part, to reflect these
events.

      NOW, THEREFORE, National Grid USA and the Executive hereby agree to amend
the Agreement as follows:

      1.    The Company and the Executive agree that all references to a Change
            in Control, a Potential Change in Control, a Major Transaction, or a
            Potential Major Transaction in the Agreement shall mean a Change in
            Control, Potential Change in Control, Major Transaction or a
            Potential Major Transaction that occurs after the effective date of
            this Amendment; and that in order for the Executive to be eligible
            for benefits under the Agreement a Potential Change in Control,
            Change in Control, a Potential Major Transaction or a Major
            Transaction must occur after the effective date of this Amendment.

      2.    Section 2. Term of Agreement shall be amended to read as follows:

            This Amendment shall commence on March 15, 2003 and shall continue
            in effect through March 30, 2005; provided, however, commencing on
            March 1, 2004 and each March 1st thereafter, the term of this
            Agreement shall automatically be extended for one additional year
            unless, not later than December 31st of the preceding year, the
            Company or the Executive shall have given notice not to extend this
            Agreement or a Change in Control or a Major Transaction shall have
            occurred prior to such March 1st; provided, however, if a Change in
            Control or a Major Transaction shall have occurred during the term
            of this Agreement, this Agreement shall continue in effect for a
            period of thirty-six months beyond the month in which such Change in
            Control or Major Transaction occurred.

<PAGE>

      3.    Section 5.3 shall be amended to read as follows:

            If the Executive's employment shall be terminated for any reason
            following a Change in Control or a Major Transaction and during the
            term of the Agreement, the Company shall pay to the Executive the
            normal post-termination compensation and benefits due the Executive
            as such payments become due. Such post-termination compensation and
            benefits shall be determined under, and paid in accordance with, the
            System's applicable retirement, insurance and other compensation or
            benefit plans, programs and arrangements. Provided that the benefits
            payable to the Executive pursuant to National Grid USA Companies'
            Basic Severance Plan for Non-Union Employees or its successor and/or
            National Grid USA Companies' Executive Severance Plan or its
            successor (the Severance Plans) do not exceed benefits payable to
            the Executive under the Agreement, the Executive hereby waives all
            rights to benefits pursuant to said Severance Plans.

      4.    In Section 6.1, in the tenth line after the word "Company" add "or
            National Grid Transco plc".

      5.    Section 6.1 (A) shall be amended to read as follows:

            (A)   In lieu of any further salary payments to the Executive for
                  periods subsequent to the Date of Termination, the Company
                  shall pay to the Executive a lump sum severance payment, in
                  cash, equal to three times the sum of (i) the higher of the
                  Executive's annual base salary in effect as of the Date of
                  Termination or in effect immediately prior to the Change in
                  Control or Major Transaction, and (ii) the higher of the
                  average amount paid to the Executive pursuant to National Grid
                  USA Companies' Incentive Compensation Plan and National Grid
                  USA Companies' Incentive Share Plan or successors of any such
                  plans, with respect to the three years preceding the year in
                  which the Date of Termination occurs or the average amount
                  paid with respect to the three years preceding the year in
                  which the Change in Control or Major Transaction occurs.

      6.    In Sections 6.1 (B), (C), and (D) all references to "twenty-four
            (24) months" shall be replaced with "thirty-six (36) months".

      7.    Section 7.1. Notice of Termination. The last sentence of this
            Section shall be deleted and replaced with the following: "Further,
            a Notice of Termination for Cause is required to include a statement
            from the Chief Executive Officer of National Grid USA and the Chief
            Executive Officer of National Grid Transco plc or his designee,
            that, in the good faith opinion of the two (after reasonable notice
            to the Executive and an opportunity for the Executive, together with
            the Executive's counsel, to be heard) that the Executive was guilty
            of conduct set forth in clause (i) or (ii) of the definition of
            Cause set forth in Section 15 (C) of the Agreement. Said statement
            shall specify the particulars thereof in detail.

                                       2
<PAGE>

      8.    Section 10. Notices. The Company address shall read:

            To the Company:
            National Grid USA Service Company, Inc.
            25 Research Drive
            Westborough, MA 01582-0099
            Attn: Sr. Vice President Human Resources

      9.    Section 15. Definitions. The following definitions shall be amended
            to read:

            (A)   "Beneficial Owner" - delete and replace with a definition for
                  "Base Amount". "Base Amount" shall have the meaning defined in
                  Section 280 G (b) (3) of the Code.

            (B)   "Board" or "Board of Directors of the Company" - all
                  references to "Board" or "Board of Directors" shall be
                  replaced with Chief Executive Officer of National Grid USA and
                  Chief Executive Officer of National Grid Transco plc, or his
                  designee, unless otherwise specified in this Amendment.

            (D)   A "Change in Control" shall be deemed to have occurred if the
                  conditions set forth in any of the following paragraphs shall
                  have been satisfied:

                  (i)   any Person or Persons in concert obtains Control (as
                        defined in Section 840 of the United Kingdom's Income
                        and Corporation Taxes Act 1988) of National Grid Transco
                        plc as a result of making a general offer to acquire
                        shares in National Grid Transco plc or having obtained
                        Control, makes such an offer;

                  (ii)  the consummation of the sale or disposition by National
                        Grid Transco plc of National Grid USA to a
                        non-affiliated entity (whether by merger, sale of all or
                        substantially all of the capital stock or assets of
                        National Grid USA or otherwise);

                  (iii) the complete liquidation, dissolution or winding up of
                        National Grid Transco plc and/or of National Grid USA;
                        or

                  (iv)  the acquisition by National Grid Transco plc or National
                        Grid USA or their successors of all or substantially all
                        of the assets of or ownership of all or substantially
                        all of the outstanding shares of a U.S. electric and/or
                        gas utility company which would increase the size or
                        revenues of National Grid USA by 25% or more.

                                       3
<PAGE>

                              A Change in Control shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the Change
                        in Control will immediately afterwards own more than 50%
                        of the shares in that other company.

            (F)   "Company" shall mean National Grid USA and any successor to
                  its business and/or assets which assumes and agrees to perform
                  the Agreement by operation of law, or otherwise.

            (J)   "Employer" shall mean the National Grid USA company by which
                  the Executive is employed at the time of termination.

            (K)   "Exchange Act" - delete and replace with a definition for
                  "Excise Tax". "Excise Tax" shall mean any excise tax imposed
                  under Section 4999 of the Code.

            (M)   "Good Reason" - delete (i) "the assignment to the Executive of
                  duties substantially inconsistent with the Executive's status
                  as an executive officer of the system" and all references
                  thereto.

            (N)   A "Major Transaction" shall be deemed to have occurred if the
                  conditions set forth in any one of the following paragraphs
                  shall have been satisfied:

                  (i)   any Person becomes bound or entitled to acquire shares
                        in National Grid Transco plc under Sections 428 to 430F
                        of the United Kingdom's Companies Act 1985, or a scheme
                        of arrangement or compromise under Section 425 of the
                        United Kingdom's Companies Act 1985 is proposed for
                        National Grid Transco plc;

                  (ii)  National Grid Transco plc shareholders, National Grid
                        USA's shareholders and/or the Board of Directors of
                        National Grid USA approve the sale of National Grid USA
                        to a non-affiliated entity (whether by merger, sale of
                        all or substantially all of the capital stock or assets
                        of National Grid USA, or otherwise);

                  (iii) National Grid Transco plc passes a resolution for
                        voluntary winding up, or an order is made for the
                        compulsory winding up of National Grid Transco plc
                        and/or National Grid USA;

                                       4
<PAGE>

                  (iv)  the shareholders of National Grid Transco plc, the
                        shareholders of National Grid USA and/or the Board of
                        Directors of National Grid USA approve an event the
                        consummation of which would result in the occurrence of
                        a Change in Control; or

                  (v)   the Board of Directors of National Grid Transco plc
                        adopts a resolution that, for purposes of this
                        Agreement, a Major Transaction has occurred.

                              A Major Transaction shall not be deemed to have
                        occurred if the events referred to above are part of an
                        arrangement ("a Reorganization") which will mean that
                        National Grid Transco plc and/or National Grid USA will
                        be under the Control of another company or the business
                        of National Grid Transco plc is carried on by another
                        company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

            (O)   "NEES Companies" - all references to "NEES Companies" shall be
                  replaced with "National Grid USA companies, collectively".

            (P)   "NEES Company" - all references to "NEES Company" shall be
                  replaced with "National Grid USA company".

            (S)   "Person" shall mean any individual, corporation, partnership,
                  trust, unincorporated association, business or other legal
                  entity, and any government or any governmental agency or
                  political subdivision thereof.

            (T)   A "Potential Change in Control" shall be deemed to have
                  occurred if the conditions set forth in any one of the
                  following paragraphs shall have been satisfied:

                  (i)   the Company or National Grid Transco plc enters into an
                        agreement, the consummation of which would result in the
                        occurrence of a Change in Control;

                  (ii)  the Company, National Grid Transco plc or any Person
                        publicly announces an intention to take or to consider
                        taking actions which, if consummated, would constitute a
                        Change in Control;

                                        5
<PAGE>

                  (iii) any Person who is not, as of the date hereof, the owner,
                        directly or indirectly, of securities constituting 10%
                        or more of the combined voting power of all of the
                        outstanding voting securities of National Grid Transco
                        plc or any successor thereof (a "10% Holder") becomes a
                        10% Holder;

                  (iv)  any Person who is, as of the date hereof, a 10% Holder,
                        acquires (whether in a single transaction or a series of
                        transactions), directly or indirectly, additional
                        securities constituting 5% or more of the combined
                        voting power of all of the outstanding voting securities
                        of National Grid Transco plc or any successor thereof
                        (for purposes hereof, a Person who, as of any particular
                        date, holds, directly or indirectly, options to purchase
                        securities that are exercisable within 60 days of such
                        date shall be deemed to own such securities as of such
                        date); or

                  (v)   the Board of Directors of National Grid Transco plc
                        adopts a resolution to the effect, that for purposes of
                        this Agreement, a potential Change in Control has
                        occurred.

                        A Potential Change in Control shall not be deemed to
                        have occurred if the events referred to above are part
                        of an arrangement ("a Reorganization") which will mean
                        that National Grid Transco plc and/or National Grid USA
                        will be under the control of another company or the
                        business of National Grid Transco plc is carried on by
                        another company, and the Persons who owned the shares in
                        National Grid Transco plc immediately before the series
                        of transactions are consummated will immediately after
                        consummation own more than 50% of the shares in that
                        other company.

            (U)   A "Potential Major Transaction" shall be deemed to have
                  occurred if the conditions set forth in any one of the
                  following paragraphs shall have been satisfied:

                  (i)   the Company enters into an agreement, the consummation
                        of which would result in the occurrence of a Major
                        Transaction;

                  (ii)  the Company or any Person publicly announces an
                        intention to take or consider taking actions which, if
                        consummated, would constitute a Major Transaction; or

                  (iii) the Board of Directors of National Grid Transco plc
                        adopts a resolution to the effect that, for purposes of
                        this Agreement, a Potential Major Transaction has
                        occurred.

                                        6
<PAGE>

            (X)   "System" shall mean the Company and the National Grid USA
                  companies, collectively.

      This Amendment supersedes the Agreement in so far as it conflicts with any
terms and conditions of the Agreement. All other terms and conditions of the
Agreement remain unchanged.

                                         National Grid USA

                                         By:      /s/ Richard P. Sergel
                                            ------------------------------------
                                                  Chief Executive Officer

                                         By:      /s/ Lawrence J. Reilly
                                             -----------------------------------
                                                  Lawrence J. Reilly

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]