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National Grid’s U.S. Environmental
Performance Report / Fiscal Year 2003
National Grid
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This Environmental Performance Report focuses on National Grid’s operations in the United States during
fiscal year 2003, which encompasses the period April 1, 2002 through March 31, 2003.
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Table of Contents
Company Profile ........................................................................................................................4
A Message from the CEO ..........................................................................................................5
Vision and Values ......................................................................................................................6
Environmental Policy ....................................................................................................... 6
Framework for Responsible Business ................................................................................. 6
Programs .................................................................................................................................. 8
Reducing Pollution and Waste .......................................................................................... 8
Recycling ......................................................................................................................... 8
Spill Prevention ................................................................................................................ 9
SF6 Program ................................................................................................................... 10
Manufactured Gas Plant Site Remediation ...................................................................... 10
Minimizing Petroleum Releases ...................................................................................... 12
Solvent Reductions ........................................................................................................ 12
Brownfield Studies ......................................................................................................... 12
Protecting Wildlife............................................................................................................... 12
Osprey ........................................................................................................................... 12
Bald Eagles .................................................................................................................... 12
Integrated Vegetation Management Program .................................................................. 13
Wetlands Restoration ..................................................................................................... 13
Minimizing Climate Change ................................................................................................. 14
Greenhouse Gas Reporting ............................................................................................. 14
Energy Efficiency Programs ............................................................................................ 14
“Green” Electricity Offerings .......................................................................................... 15
Renewable Energy Trust Fund ......................................................................................... 15
Renewable Energy Collaborative ..................................................................................... 16
Photovoltaic Research ................................................................................................... 16
Alternatively Fueled and Hybrid Vehicles ......................................................................... 16
Conserving Natural Resources ............................................................................................. 17
Fuel Conservation .......................................................................................................... 17
Tree Line USA Program ................................................................................................... 17
Promoting Awareness.......................................................................................................... 18
Educational Programs .................................................................................................... 18
Customer Communication ............................................................................................... 18
Employee Communication ............................................................................................... 18
Performance Measurement...................................................................................................... 19
Environmental Organization ................................................................................................ 19
Environmental Management System ................................................................................... 19
Compliance Audit Program ................................................................................................. 20
Responses to Legal Notices ............................................................................................... 21
Environmental Training ....................................................................................................... 23
Sustainability Performance Metrics .................................................................................... 23
Electric and Magnetic Fields .................................................................................................. 26
Looking Ahead ........................................................................................................................ 26
Auditor’s Verification Statement .............................................................................................. 27
Appendices
A. Environmental Awards .................................................................................................... 28
B. Recycling Process for New England Operations ............................................................... 28
C. MGP Remediation Technologies ...................................................................................... 30
D. Energy Efficiency Programs ............................................................................................ 30
E. ISO 14001 ..................................................................................................................... 32
For More Information .............................................................................................................. 33
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Company Profile
National Grid USA is a wholly owned subsidiary of National Grid Transco, an international energy
delivery business with principal activities in the regulated electric and gas industries in the U.K. and U.S.
National Grid’s core U.S. business is the transmission and distribution of electricity and natural gas. The
company also has subsidiaries that provide telecommunications infrastructure and services.
National Grid’s five electricity distribution companies serve approximately 3.2 million customers across
29,400 square miles in New York, Massachusetts, Rhode Island, and New Hampshire. Our electricity distribution network includes approximately 72,000 miles of lines. The electricity distribution companies are:
■ Niagara Mohawk, which serves more than 1.5 million electricity customers in 669 communities
in upstate New York,
■ Massachusetts Electric, which serves approximately 1.2 million customers in 168 Massachusetts
communities,
■ Narragansett Electric, which serves approximately 465,000 customers in 38 Rhode Island
communities,
■ Granite State Electric, which serves more than 38,000 customers in 21 New Hampshire
communities, and
■ Nantucket Electric, which serves more than 10,000 year-round customers on the island
community of Nantucket, 30 miles off the coast of Cape Cod in Massachusetts.
Niagara Mohawk delivers natural gas to approximately 550,000 customers in 197 communities in central
and eastern New York. The company maintains more than 8,300 miles of main and distribution pipe
across a 4,500 square mile service territory.
National Grid owns and operates approximately 6,000 miles of electricity transmission lines in upstate
New York and 2,800 miles of transmission lines in New England. National Grid subsidiaries operate
converter facilities and high voltage direct current transmission lines as part of a New England-Hydro
Quebec interconnection.
National Grid’s telecommunications subsidiaries are Gridcom, which provides infrastructure and turnkey
services for the telecommunications industry, and NEESCom, which provides dark fiber optic capacity
and related services to businesses, telephone companies, and wireless providers.
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A Message from the CEO
Dear Environmental Stakeholder:
I’m pleased to provide you with National Grid’s U.S. Environmental Performance Report for fiscal year
(FY) 2003. In these pages, you’ll learn about our vision, policies, accomplishments, and challenges regarding environmental performance.
We have continued to maintain our environmental responsiveness as our organization evolves. Among
the highlights of the past year, we:
■ introduced a path-breaking program in New York and Massachusetts to help our customers support
electricity from renewable energy sources such as wind, solar, and hydro,
■ successfully integrated nearly all of the environmental procedures and policies of our New York
and New England operations following the 2002 merger of National Grid and Niagara Mohawk,
■ continued to achieve significant energy savings by customers, and obtain equivalent reductions
in air emissions, through our energy efficiency programs, and
■ earned national and regional recognition for our environmental efforts from a variety of organizations, including the regional office of the U.S. Environmental Protection Agency (see Appendix A
for a list of our 2003 awards).
We recognize that constant improvement is critical to our business success, and are committed to
work with all environmental stakeholders to achieve that improvement. Your input is important.
I encourage you to provide comments regarding our environmental efforts to the Environmental
Department personnel listed on page 33.
Rick Sergel
Chief Executive Officer
National Grid USA
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Vision and Values
In the U.S., National Grid and all of its subsidiaries must adhere to the following Environmental Policy
as well as the principles and procedures that flow from it.
Environmental Policy
National Grid USA is committed to the protection and enhancement of the environment, always seeking
new ways to minimize the environmental impacts of our past, present, and future activities. We believe
that everyone is responsible for good environmental performance as we incorporate environmental considerations into all our business activities. The following principles provide the framework to help us set
goals to promote continual improvements in environmental performance and to deliver and maintain a
culture that achieves the performance to which we aspire.
We:
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Expect management to provide visible leadership that promotes good environmental performance
and to commit the appropriate resources to achieve our environmental goals,
Meet and, where appropriate, exceed the requirements of environmental legislation, policies,
charters, and other commitments to which we subscribe,
Prevent pollution, including the releases of oil and hazardous materials, wherever we can, but if an
incident occurs, respond effectively to minimize impact on human health and the environment,
Minimize and properly manage the waste we generate, and reuse or recycle waste materials whenever
economically feasible,
Help protect the environment for future generations by making our contribution to minimizing
climate change,
Monitor electric and magnetic fields (EMF) research developments and assess continually the
implications for the way in which we operate,
Manage the risks associated with sites that have been contaminated from our past operations and
improve these sites where appropriate,
Protect and improve, where we can, the environmental status of the land on which we operate,
Require our contractors to demonstrate the same level of commitment as National Grid USA in
the management of the environment,
Ensure that our employees have the skills, knowledge, and resources necessary to contribute to our
environmental commitments,
Encourage open and constructive dialogue with employees, members of the public, and other stakeholders to continually challenge our performance,
Identify and manage risks associated with our activities and deliver any improvements through
effective environmental management systems, and
Monitor our environmental performance, audit the effectiveness of our management systems, and
report our performance to employees, shareholders, the public, and other stakeholders.
Framework for Responsible Business
Our U.S. operations are also guided by the Framework for Responsible Business, which delineates
National Grid Transco’s vision and values for its worldwide operations. Environmental considerations
constitute one element of the company’s multifaceted sustainability policy.
The Framework was created with the help of more than 4,000 National Grid employees and stakeholders
from outside the company, including representatives of government, special interest groups, news media,
investors, customers, and regulators.
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Sustainable Growth
We are constantly looking to expand and grow our business by transferring our skills to new markets.
Growth needs to be sustainable if we are to bring long-term value both to our shareholders and to others.
So we must:
■ Contribute to the economic growth of the countries in which we operate through the way in which
we manage and invest in our business,
■ Act with honesty and integrity as we undertake and develop our business,
■ Protect the future of our business by proactively managing existing and future non-financial and
environmental risks,
■ Employ and develop a talented and diverse workforce,
■ Employ the right number of people with the right skills for the work we have to do,
■ Treat our employees fairly,
■ Act in accordance with all laws and regulations, and
■ Respect human rights.
Profits with Responsibility
For our business to be sustainable, we must be profitable. However, increasing our profitability at any
cost is neither sustainable nor acceptable. We therefore have to be responsible in the way in which we
generate our profits.
So we must:
■ Improve our efficiency without compromising the reliability and integrity of our operations,
■ Maintain a sound system of internal financial control,
■ Be efficient in our use of natural resources,
■ Keep our waste to a minimum and increase the economic value of any waste we produce,
■ Help protect the environment for future generations, including making our contribution to
minimizing climate change,
■ Safeguard each other and those who work with us by operating an injury-free and healthy workplace
and protect the safety of the public through the integrity of our operations,
■ Help our employees balance work with their other commitments,
■ Respect our customers and suppliers by conducting our business in a professional manner, and
■ Be open and constructive in the dialogue we have with our stakeholders.
Investing in the Future
As a responsible business, our commercial success enables us to invest in the future in a way that benefits
our shareholders, our employees, the environment, and society. This investment is a reflection of our
desire to be a long-term business.
So we:
■ Seek to deliver progressively increasing returns for our shareholders,
■ Enable others to contribute to economic growth by providing high-quality dependable services,
■ Improve, where we can, the environmental status of the land on which we operate,
■ Contribute to the development of new laws and initiatives aimed at improving the environment
and the quality of life,
■ Develop our employees so that they can add value to the company, to themselves, and to society,
■ Recognize and reward our employees for the contribution they make, and
■ Encourage and support investment in the community through both the activities of our employees
and our financial contributions, with an emphasis on developing partnerships.
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Programs
National Grid continues to work closely with federal and state agencies, environmental organizations,
local communities, and other interested parties to maximize environmental protection in our U.S.
operations. Our cooperative efforts are aimed at reducing pollution and waste, protecting wildlife,
helping to minimize climate change, conserving natural resources, and educating the general public
on environmental issues.
Reducing Pollution and Waste
Recycling
National Grid is committed to keeping our wastes to a minimum and, where feasible, finding uses for
any waste we produce. We recognize that recycling can save energy and natural resources, reduce pollution, ease the burdens on landfills, and when properly designed and administered, cut costs and increase
a company’s profitability.
National Grid’s Investment Recovery and Recycling Program focuses on several high-volume waste
streams that, in most cases, have economic value. The program allows identification, collection, tracking,
investment recovery, and recycling of several materials.
In New York, a significant portion of Niagara Mohawk’s recycling needs are met by our Investment
Recovery and Recycling Services facility. This center (see Close-up on page 9) represents an important
environmental benefit to National Grid from the merger with Niagara Mohawk in 2002.
In New England, we collect and ship a significant portion of our recyclable materials to approved vendors
who specialize in sorting, processing, cleaning, and restoring, and who then ship the recycled materials to
firms that use the raw materials for manufacturing new products or components. (See Appendix B for a
detailed description of this process.) During FY2003, we began to use our New York facility for nearly
all of the scrap metal from our New England operations.
National Grid’s U.S. operations recycled more than 13,000 tons of materials in FY2003. This includes
metals, electric equipment, non-PCB transformer oil, and lighting wastes. For the specific quantities
of selected recycled materials reported to our parent company as part of our Group Sustainability
Performance Metrics process, see Table 6 on page 25 (item 13).
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Close-up National Grid’s Investment Recovery Center
National Grid’s Investment Recovery and Recycling Services facility is the clearinghouse and
marketplace for the sale, disposal, and redeployment of surplus company assets.
Located in Syracuse, New York, the facility is ISO 14001-certified, and processes a wide variety
of materials from National Grid’s transmission and distribution operations, substations, corporate
offices, and vehicle fleet.
The facility handles three primary categories of materials:
■ Scraps/recyclables – Non-ferrous metals, ferrous metals, processed metals, processed wire and
cable, wood products, cardboard, paper, plastics, and porcelain,
■ Office equipment – Computers, furniture, excess supplies, toner
cartridges, and telecommunications equipment,
■ Electrical equipment (for sale, decommissioning, or reuse) –
Generator parts, refurbished hardware, distribution equipment,
substation equipment, transmission equipment, transformers,
cable/conduit hardware, meters, switches, and relays.
Among the recycling center’s services are the sale of excess inventory
and obsolete material, the sale of stock materials to other utilities,
and safe, environmentally sound disposal of unusable materials.
Advanced capabilities include the granulation of surplus electrical wire from power lines. This
involves grinding the wire in special equipment into increasingly small pieces, separating the
metals from the plastic, and producing pure, highly valuable metal nuggets that can be sold.
The polyethylene insulation gleaned from the wires is processed and sold as well.
The Investment Recovery center has been
in operation for nearly two decades. It was
chartered by Niagara Mohawk in 1984, and
moved into the $1.5 million recycling facility in 1991. The department includes a core
marketing staff that locates buyers, a team
of workers that operate the equipment, and,
through a contract with a state subsidized
agency, approximately 50 mentally or
physically handicapped adults who do a
variety of tasks.
The Investment Recovery facility provides
not only environmental and social benefits
to the community, but also significant financial benefits to National Grid. In FY2003, savings to the
company and income from sold materials represented approximately $4.1 million.
Spill Prevention
U.S. Environmental Protection Agency (EPA) regulations require Spill Prevention Controls and
Countermeasures (SPCC) improvements at certain facilities. Spill contingency plans and containment
structures are required at facilities that store quantities of oil that exceed regulatory thresholds and are
located where oil could migrate to waters of the U.S.
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In August 2002, major revisions to these regulations promulgated by the EPA went into effect. Due to
National Grid’s proactive stance, spill contingency plans were already in place at most of our facilities,
which simplifies the effort required to comply with the revised regulations.
In response to the revised rule, we will review and recertify our spill contingency plans as needed.
Minimal facility upgrades are anticipated in the New England region. In New York, interim plans
are in place and we expect to complete final plans and the required facility updgrades during the next
several years.
In our program, we continue to:
■ Periodically review and update our SPCC plans,
■ Construct improvements and develop SPCC plans for new construction projects, and
■ Construct improvements and develop SPCC plans at facilities and substations acquired as part of
mergers or acquisitions.
To help minimize our impact on the environment, National Grid has incorporated semi-permeable spill
containment structures into the standard specification for installation of new transformers in substations,
even where SPCC regulations may not require it.
Sulfur Hexafluoride (SF6) Program
Sulfur hexafluoride (SF6) is an effective insulating gas that serves as an excellent insulation medium
for high voltage electrical equipment. It has operational advantages over other insulating materials.
The use of SF6-filled equipment can reduce the size and visual impact of electrical substations because
the units are smaller than the oil-filled equivalent. In addition, SF6 is nonflammable. It is, however, a
potent greenhouse gas.
Both Niagara Mohawk and National Grid’s New England companies have been successful in their
ongoing efforts to reduce SF6 emissions. Combined calendar-year SF6 emissions related to substation
equipment totaled 19,660 pounds in 2000, 13,447 pounds in 2001, and 12,264 pounds in 2002, a 38
percent decrease over the three-year span.
Niagara Mohawk is a participant in a voluntary SF6 Emissions Reduction Partnership for Electric
Power Systems with the U.S. Environmental Protection Agency. Niagara Mohawk’s participation
began in December 2000. The program involves the setting of a baseline year for SF6 emissions and
then establishing, tracking, and reporting reductions on an annual basis. We are expanding our
program participation to include all of National Grid’s U.S. companies.
National Grid has set an objective to reduce the impacts of global warming from the operation of
electrical equipment containing SF6. In line with this objective, we are refining our leak rate monitoring
to account for certain criteria such as the gas that remained in cylinders returned to vendors, as well as
the gas used to fill new equipment. To accurately track SF6 usage, we have begun to develop reports on
a monthly, calendar year, and fiscal year basis in New England. The monthly and fiscal year reporting
process will be implemented in New York in FY2005.
During FY2003, we also looked into ways to reduce SF6 losses from first-generation, gas-insulated
substations. We developed a study to replace one such substation in Somerset, Massachusetts,
and are planning to move ahead with the project. Replacement studies of two other Massachusetts
gas-insulated substations will be undertaken as well.
Manufactured Gas Plant Site Remediation
As far back as the 1860s, former gas subsidiaries of National Grid’s predecessor companies had been
involved in manufacturing gas, primarily in Massachusetts, New York, and Rhode Island.
The processes used at manufactured gas plants (MGPs) created several by-products, including light oil,
tar, and ammonia, which were often sold as raw materials for other industries. Wastes generated at the
locations were often disposed of on-site. They include tar, oil-water emulsions, and ashes, some of which
contain small quantities of potentially harmful chemicals, such as polynuclear aromatic hydrocarbons,
volatile organics, and complex cyanide compounds.
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Disposal practices at MGP sites were guided by the environmental and technical knowledge of the time.
Today, however, with a better understanding of environmental issues, we realize that by-products and
wastes in soil or groundwater can pose risks to the environment and human health. At the same time,
we now have the benefit of modern technology (see Appendix C) to correct MGP-related environmental
problems inherited from prior generations.
National Grid continues to remediate former MGP sites for which we are responsible, in keeping with
the requirements of the Environmental Protection Agency, Massachusetts Department of Environmental
Protection, New York State Department of Environmental Conservation, and Rhode Island Department
of Environmental Management. Currently, we are conducting environmental studies or cleanup at 21
MGP sites or remote disposal locations in Massachusetts, 33 sites in New York, and six sites in Rhode
Island. Nine highly qualified project managers, who oversee technical efforts at the locations and serve
as liaisons between internal and external stakeholders, manage the former MGP sites.
In FY2003, we completed remedial construction at the Lynn and Marblehead MGPs in Massachusetts
and the Schenectady Seneca Street site in New York.
In some cases, former MGPs are used by National Grid for electric and/or gas operations. Massachusetts
Electric expanded an existing Beverly, Massachusetts substation to better meet demand in the area.
Because the construction area was within the limits of the former MGP, we carefully managed soil
excavation to ensure worker protection and to be consistent with the ultimate cleanup of the site,
which is scheduled for 2004. In New York, we completed the cleanup of a Schenectady Seneca Street
remote holder site. The site is currently used as a company training facility and once housed a 6 million
cubic foot gas holder. The remedial efforts consisted of removing more than 8,000 tons of contaminated
soil, backfilling, and re-paving to allow continued use by the company.
In 2004, we expect to achieve significant progress in assessing and remediating MGP sites in New
England and New York. This includes expected remedial construction at the Bart’s Farm site in
Leominster, Massachusetts.
Close-up Marblehead, Massachusetts MGP Site
Some MGP sites were used for residential purposes
after being decommissioned. The footprint of the
Marblehead, Massachusetts MGP, for example,
housed both residential and commercial structures
when investigated in 1994. Once assessment work
was complete, one of the residential properties was
purchased, remediated, and turned into public open
space. Two nearby residential lots were cleaned up
to meet residential standards through soil excavation.
After soil removal was complete, the two residential
lots and the open space were re-landscaped in keeping with the overall ambiance of the neighborhood.
Close coordination with property owners and town
officials was needed to keep the neighborhood relatively undisturbed during cleanup and restoration,
which occurred during 2002 and 2003.
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Minimizing Petroleum Releases
As one of our FY2003 objectives, we sought to continue our effort to minimize the potential for releases
of petroleum products from under-utilized underground storage tanks. In line with this objective, we
removed two 20-year-old, 6,000-gallon tanks from our Spencer, Massachusetts satellite facility, as well
as two 6,000-gallon above-ground storage tanks at our switchyard in Littleton, New Hampshire.
Solvent Reductions
We are seeking to reduce, where possible, our use of chlorinated solvents and other chemicals with toxic
and/or potentially dangerous characteristics. During FY2003, National Grid’s Transportation Department
worked closely with the Environmental and Safety Departments to ensure that all chemicals purchased
for use in vehicle maintenance do not present an environmental hazard. All known products containing
chlorinated solvents were removed from the list of chemicals approved for use in vehicle maintenance.
In addition, our Environmental Department developed a list of restrictions to be followed when solvents
are purchased for our transportation operations.
Brownfield Studies
The redevelopment of brownfields (former industrial sites) provides a unique opportunity to expand the
economy, protect public health and the environment, and improve the quality of life within communities.
Niagara Mohawk has provided financial support during the past three years for the State University of
New York Center for Brownfield Studies at Harbor Point. The center provides advisory support to the
municipalities of upstate New York for the investigation, remediation, and redevelopment of brownfields.
The center also provides academic programs for the training of public and private sector staff in the
complex technical, regulatory, social, and financial issues surrounding these sites.
Protecting Wildlife
Osprey
In New York, Niagara Mohawk is actively seeking to share expertise from its 20-year-old osprey protection program. We have participated in an experimental project on Department of Transportation land in
which a natural-looking nesting area was sculpted atop a tree, in place of the usual man-made structure.
We want to learn whether this technique will increase the young osprey’s use of trees for nesting as the
birds reach maturity. This would both protect the osprey populations and prevent the safety and operational issues associated with osprey nests on electricity transmission structures.
Nantucket Electric first erected nesting poles for osprey in the 1970s. Environmental researchers on
Nantucket report that the island is home to a healthy population of ospreys and that 13 Nantucket
osprey young were reared from seven different nests during the 2002 season. Osprey breeding on the
island reached the highest level since the birds started nesting there in the late 1970s. Nantucket
Electric is continuing its support through contributions such as new and improved poles, accessibility
assistance through line crews and trucks, and exploration of additional funding sources.
In Rhode Island, Narragansett Electric’s efforts have played an important role in helping to restore
the osprey population. One-third of the osprey nests in Rhode Island are found on Narragansett Electric
power lines. We have installed new nesting platforms and retrofitted nesting-friendly devices on existing
power lines and poles where osprey presented an electrical safety issue.
Bald Eagles
American bald eagles are among the species attracted to electric utility poles and structures as a perching
location. This can cause electrical safety and reliability issues, as well as endanger the birds.
Niagara Mohawk modified five structures on its power lines in Fulton, New York during 2002 to prevent
physical injury to young eagles that take their “first steps” from their nest in a nearby tree. The company
built special perches atop the power line poles, to prevent the young eagles from making contact with
the lines.
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During 2003, for the second year in a row, we assisted the New York State Department of Environmental
Conservation’s eagle banding effort, and provided a bucket truck so that a department representative
could reach the nesting birds.
Massachusetts Electric, in collaboration with the Massachusetts Division of Fisheries & Wildlife
eagle project, has continued to support the annual mid-winter survey of the state’s bald eagle
populations on the shoreline and islands in the Quabbin Reservoir and an approximately 60-mile
stretch of the Connecticut River. The company provides a helicopter to enable the eagle project to
count nesting and wintering bald eagles. As they learn of new nest sites, the Division of Fisheries &
Wildlife implements protective strategies to promote the hatching and survival of the young eagles.
Integrated Vegetation Management Program
By keeping vegetation away from our power lines, poles, and substations, we help to prevent power outages and make the communities we serve safer places to live. Our electricity distribution and transmission
subsidiaries use nationally approved, environmentally sound techniques and procedures to maintain trees
and other vegetation near those facilities.
Because we use herbicides, we actively participate in the Pesticide Environmental Stewardship Program,
a voluntary partnership of the U.S. Environmental Protection Agency and users of pesticides and herbicides. The partnership works to reduce environmental impacts from the use of pesticides and herbicides.
Our use of herbicides is part of an integrated vegetation management (IVM) program for our transmission
rights-of-way. IVM produces a stable, low-growing plant community that provides a diverse wildlife
habitat within a landscape that is increasingly made up of mature forest. Over time, our right-of-way
management program is resulting in increased grasslands and shrubs that are conducive to songbird
and butterfly populations.
We continue to assess the environmental impacts of our right-of-way management activities, and during
FY2003 investigated the efficacy of sheep grazing as a method of vegetation management on rights-of-way.
We plan to collect additional data.
We are seeking to share our land management knowledge and methods. During FY2003, we took steps
to develop a partnership with the Massachusetts Department of Environmental Management, the
largest land-managing agency of the state’s Executive Office of Environmental Affairs (EOEA). We
are seeking to formalize land management objectives on National Grid’s transmission rights-of-way
located on EOEA lands.
Wetlands Restoration
National Grid’s power lines travel through wetlands within all four states we serve. In addition, some
of our transmission facilities traverse wetlands in Vermont. We recognize a responsibility to help protect
these areas and the wildlife that lives within them. To ensure that our operations do not have an adverse
impact on wetlands, the Environmental Department provides wetland protection training to operations
and engineering personnel.
During FY2003, Massachusetts Electric and other corporate partners continued to contribute money
and in-kind services to Massachusetts’ Corporate Wetlands Restoration Partnership (CWRP). This
partnership, established in 1999, was one of the first programs in the nation to enable corporations
to help restore degraded wetlands. Formerly managed by the Massachusetts Executive Office of
Environmental Affairs and its Wetlands Restoration & Banking Program, the partnership has
since become an independent organization.
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Narragansett Electric is a contributor to the Rhode Island CWRP, which was formed in 2001. The
company is currently a corporate leader in an ongoing effort to restore Town Pond, a 40-acre marsh in
the town of Portsmouth. The marsh was damaged by fill when nearby shipping channels were dredged
in the 1940s. Restoration would restore the flow of water as well as coastal vegetation to what was once
a salt pond.
Niagara Mohawk participated in an April 2002 seminar sponsored by the New York State Wetlands
Forum and has worked on collaborative projects with a number of organizations. The company’s teaching
modules, “Wetlands are More Than Just Wet Land” and “Understanding Wetlands,” have been in the
school systems of central New York since the early 1990s. They were created through a collaborative
effort with several regulatory agencies and the Centers for Nature Education.
Minimizing Climate Change
Greenhouse Gas Reporting
National Grid continues to participate in the Department of Energy’s Energy Information System
Voluntary Reporting of Greenhouse Gases program. The program recognizes utilities for “demonstrating
a commitment to voluntary approaches to environmental protection through actions taken to reduce or
capture emissions of greenhouse gases.” Prior to the completion of the Niagara Mohawk-National Grid
merger, separate reports were filed for Niagara Mohawk and National Grid’s New England companies.
We now file a single, combined report.
Energy Efficiency Programs
National Grid offers its electricity distribution customers a varied menu of programs to help them use
electricity more efficiently. These programs provide cost savings to customers as well as environmental
benefits that include reductions in air emissions.
The programs (see Appendix D) reach commercial, industrial, municipal, and residential customers.
We also collect and properly dispose of inefficient refrigerators, fluorescent lamps, and ballasts from
our New England customers.
Our energy efficiency programs are funded through a system benefits charge on customers’ monthly electric bills. Annually, state regulatory agencies review and approve funding of energy efficiency initiatives.
National Grid’s energy efficiency programs in New England are currently delivered, tracked, and reported
on a calendar year basis to meet state regulatory requirements. For this reason, data are reported on a calendar year basis in this Environmental Performance Report. During calendar year 2002, participating
customers in Massachusetts, Rhode Island, and New Hampshire saved approximately 163,306 megawatthours of electricity.
Table 1 shows greenhouse gas emissions and acid rain precursor emissions that were avoided during
calendar year 2002 as a result of energy efficiency programs implemented in that year.
Table 1
Emissions and Natural Resources Benefits from Energy Efficiency Programs Implemented in New England,
Calendar Year 2002
Approximate electricity usage saved
163,306 megawatt-hours
The annual electricity saving also
was the equivalent of a reduction
in consumption of:
47,032 tons of coal or 81,666 barrels of oil
Annual emissions avoided:
14
137,095 tons of carbon dioxide (CO2)
1,016 tons of sulfur dioxide (SO2)
211 tons of nitrogen oxide (NOx)
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Our goals for calendar year 2003 were to reduce the summer demand for electricity by approximately
33.2 megawatts, and to reduce annual electricity consumption by approximately 161,237 megawatt-hours.
Actual results will be communicated in FY2004.
Within our New York service territory, Niagara Mohawk provides energy efficiency information to
customers through bill inserts, the website, and responses to telephone inquiries. Niagara Mohawk
participates in the New York EnergySmart program, which provides energy saving information and
strategies for homeowners and other customers. EnergySmart is sponsored by the New York State
Energy Research and Development Authority and is funded by customers of most of the state’s
investor-owned utilities through the system benefits charge on their bills.
In 2003, Niagara Mohawk introduced its “Energy Efficiency in the Empire Zones” conservation program,
as part of the company’s economic development plan. This new program provides rebates to certified
Empire Zone Rider customers who implement eligible energy efficiency measures. (See Appendix D,
New York section, for details.)
“Green” Electricity Offerings
Our GreenUp program provides customers with the opportunity to meet their electricity needs with lesspolluting, renewable sources, or to match all or a portion of their electricity usage with renewable energy
certificates (RECs). RECs represent the non-price value, attributes, or credits associated with the generation of electricity from a renewable energy facility, such as reduced emissions or compliance with state
statutory requirements.
The program was launched in September 2002 by Niagara Mohawk for its customers and made available
in October 2003 to Massachusetts Electric and Nantucket Electric customers. Narragansett Electric
expects that GreenUp will be available to its Rhode Island customers in 2004.
Participating customers choose a renewable energy offering from one of the participating renewable
energy companies. The renewable energy company then purchases, on the customer’s behalf, renewable
electricity to be placed on the grid or the equivalent quantity of RECs. A surcharge is reflected in the
customer’s monthly electric bills. The customer continues to be served by one of our National Grid
distribution companies, and all other services remain unaffected by participation in the program.
GreenUp in Massachusetts is supported by the Massachusetts Division of Energy Resources, the
Conservation Law Foundation, Inc., and the Associated Industries of Massachusetts. As of November
2003, more than 1,000 customers had enrolled.
More than 9,000 customers are participating in Niagara Mohawk’s GreenUp program, which was honored
by the New York Chapter of the League of Conservation Voters and praised by the Citizen Campaign
for the Environment.
To celebrate GreenUp’s successful first year in New York, the Niagara Mohawk Foundation and the
participating renewable energy companies in New York (Community Energy, Inc., Green Mountain
Energy Co., Sterling Planet Inc., and EnviroGen) awarded grants to four non-profit organizations to
enable those organizations to participate in GreenUp. The grant recipients were Syracuse Habitat for
Humanity, the Syracuse Real Food Co-op, the Albany-based Environmental Advocates and Sierra Club
New York Chapter, and the Buffalo-based Lexington Real Food Co-op.
Renewable Energy Trust Fund
Massachusetts Electric supports and contributes to the Massachusetts Renewable Energy Trust Fund.
Created in 1997, the trust is charged with accelerating the use of cleaner sources of electricity in
Massachusetts by investing in the state’s renewable energy industry. Technologies include solar, wind,
biomass, and fuel cells. A National Grid executive serves on the board of directors of the Massachusetts
Technology Collaborative, the non-profit economic development organization that administers the trust.
In addition, a National Grid principal engineer has served on two advisory boards regarding solar photovoltaic systems and fuel cells. Funding for the trust comes from a monthly charge to electricity customers
in Massachusetts.
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Renewable Energy Collaborative
Narragansett Electric participates in the Rhode Island Renewable Energy Collaborative, which helps to
bring affordable renewable electric power to customers in the state. Through its participation, the company has supported the installation of photovoltaic systems, wind energy systems, and a fuel cell in Rhode
Island. Renewable energy funds are collected through a monthly charge to all electricity customers in
Rhode Island (other than those on Block Island). The funds are then used by the Rhode Island State
Energy Office to offer financial incentives to commercial and industrial electricity customers for installation of renewable energy equipment.
Photovoltaic Research
Massachusetts Electric continues to conduct research into the performance of photovoltaic (PV)
arrays and the long-term performance of PV systems, which directly convert sunlight into electricity.
Our Gardner, Massachusetts PV project, which began in 1985, is the longest-running large-scale test of
residential and institutional PV installations in the United States. Useful information has been gained
on the performance of PV modules, inverters, and other system components.
In a separate project, our New England distribution companies’ headquarters building in Northborough,
Massachusetts is equipped with three interconnected photovoltaic arrays that combine to produce 6 kilowatts of PV power under peak conditions. This system is expected to generate, on average, about 6,600
kilowatt-hours of energy annually for use in the facility, and provides associated benefits in terms of
avoided emissions of carbon dioxide, sulfur dioxide, and nitrogen oxides.
In a study that began in 2001, a National Grid solar monitoring system is comparing the expected
performance of seven PV systems distributed in central Massachusetts with their actual energy output.
Alternatively Fueled and Hybrid Vehicles
The U.S. Energy Policy Act of 1992 created programs that facilitate the introduction of alternatively
fueled (i.e., non-gasoline-fueled) vehicles, including those powered by natural gas, hydrogen, ethanol,
and electricity. National Grid has several efforts underway in alternatively fueled transportation.
During FY2003, we used soy-based biodiesel fuel in a number of our trucks in Providence, Rhode Island.
Biodiesel is made through a chemical process in which glycerin is separated from fat or vegetable oil.
Biodiesel fuels are biodegradable, nontoxic, and essentially free of sulfur and aromatics. We obtain the
fuel from a retail fuel distributor that has obtained state funds to pay the incremental cost over the
street price for diesel. We have applied to participate in a pilot project in New Hampshire.
We are working with the New York State Energy Research and Development Authority for a grant
that would allow us to use about 180,000 gallons of B20 (20 percent soy) fuel in our Syracuse, New
York vehicles. If the grant is approved, many or all of our diesel-fueled vehicles in Syracuse would be
biodiesel-fueled.
We are also exploring the use of hybrid vehicles (gasoline/electric). They employ gasoline as the primary
energy source and do not fall under the Energy Policy Act. However, they could offer significant environmental benefits. Through energy storage via batteries, their
overall efficiency is much higher than a similar conventional
gasoline-powered vehicle. National Grid has purchased two
hybrid sedans for use in our corporate car pools in Syracuse,
New York and Westborough, Massachusetts. Pending the
results of the pilot program, we may purchase more of these
vehicles.
Several hundred vehicles in National Grid’s U.S. fleet have
dual fuel capability (gasoline or ethanol), but we will be
unable to make use of ethanol in these vehicles until ethanolequipped supply stations become available within our service
territory.
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Conserving Natural Resources
Fuel Conservation
Fuel for transportation poses an environmental challenge for National Grid. Our U.S. fleet ranges from
heavy-duty flatbeds and trailer trucks, to medium duty repair trucks, to light duty delivery vans and cars.
In total, our vehicles travel more than 50 million miles each year, as we make repairs, deliver equipment,
and perform other functions.
Table 2 below shows our diesel and unleaded gasoline consumption during the calendar years 2000
through 2003.
Table 2
National Grid Combined New York – New England Regions, Gallons of Diesel and Unleaded Gasoline Consumed, Calendar
Years 2000-2003
Year
Diesel
Unleaded Gas
Total
2000
1,939,857
3,386,999
5,326,856
2001
1,827,622
4,011,208
5,838,830
2002
2,330,193
3,439,844
5,770,037
2003
2,430,911
3,459,490
5,890,401
Total consumption was nearly 5.9 million gallons in CY 2003. We are cognizant of the environmental
impacts of burning this quantity of fuel, and are committed to achieving a reduction over the long term.
In 2003, we introduced a Fuel Conservation Initiative that is targeted at changing behavior, improving fuel
efficiency of vehicles, implementing policies and practices that will reduce fuel, and making use of cleaner
fuels. Our goal is a five percent reduction in diesel/unleaded gasoline use. Among recent efforts, we have
introduced an employee communication campaign to limit the idling of vehicles, promote ride-sharing,
and encourage meetings through teleconferencing and other technologies rather than driving to meeting
locations. We also are researching options to limit idling on light-duty vehicles, and have changed the
specifications for future purchases of line trucks in New York so that, like their New England counterparts,
they can be turned off and on from the “bucket,” allowing the vehicles to be running only when needed.
Our proposed biodiesel efforts, if approved, and our exploration of hybrid vehicles (see page 16) may also
contribute in the future to reducing our use of fossil fuels for transportation.
Tree Line USA Program
In 2003, National Grid was recognized for its contribution to improve community forests with Tree Line
USA awards from the National Arbor Day Foundation and the National Association of State Foresters.
The 2003 award was the fourth successive year for Niagara Mohawk, and the third year in a row for our
New England companies.
The three requirements that National Grid met for designation as a Tree Line USA utility are: a program
of quality tree care, annual worker training in quality tree care practices, and a tree planting and public
education program.
In celebration of Arbor Day and Earth Day, National Grid donated trees and seeds to many towns throughout its service territory and participated in several tree-planting ceremonies at schools, municipal offices,
parks, and other community facilities. Among our 2003 activities in New York, we helped to prune, remove,
plant, and fertilize trees in the restoration of historic Cazenovia Park in the City of Buffalo, and planted the
first of many trees in a demonstration arboretum in Syracuse. National Grid made a donation of $15,000 to
The Massachusetts Department of Environmental Management’s Mass Releaf program; a $10,000 donation
to the Rhode Island Tree Council; and a $5,000 donation to the New Hampshire Department of Economic
Development and Natural Resources. For Arbor Day 2002, Niagara Mohawk had donated $35,760 to the
city of Syracuse to pay for tree plantings.
The planted trees act as CO2 sinks, offsetting the emissions of CO2 equivalents from our activities.
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Promoting Awareness
Educational Programs
National Grid’s subsidiaries offer educational literature, posters, and videotapes for grades K-8 at no
cost to schools within our service territory. All materials have an environmental, energy, or electricity/gas
safety content, and are designed to stimulate critical thinking and enhance the classroom curriculum.
During the 2002-2003 school year, more than 250,000 student booklets and 2,400 videos were requested
through our educational resource catalog. The publication is mailed to all schools in our service territory
and is accessible through our company websites.
National Grid supports the New York, Massachusetts, and Rhode Island Envirothons, an environmental
education program for high-school students that culminates in an annual statewide competitive event.
Teams of five students from schools and community organizations throughout each state are tested on
their knowledge in five categories: aquatics, forestry, soils, wildlife, and a current environmental issue
that changes each year. The winning high-school-age team from each state then travels to compete
against all states at the Canon National Envirothon.
In addition to financially supporting the New York, Massachusetts, and Rhode Island Envirothons,
National Grid employees often volunteer their time organizing and judging the annual state competition,
and the company contributes in-kind services, such as printing, when possible.
Customer Communication
National Grid makes use of printed materials, website content, and other tools to familiarize
customers and other stakeholders with our environmental values and initiatives.
Bill inserts and newsletters to customers have included information on topics such as renewable energy
and school programs.
Our websites allow us to communicate environmental and other information electronically to both
customers and to a worldwide audience with less impact on the environment than if we used printed
materials. Our distribution companies’ environmental web pages were visited more than 8,000 times
in calendar year 2003. We seek increased use of electronic communication to customers via the web
in place of printed documents, both to save money and reduce use of paper.
Employee Communication
The company requires that new employees receive fundamental classroom training on environmental
policies and procedures. In addition, employees receive videotaped refresher training. The messages are
reinforced throughout the year by articles in the employee newspaper, which is published every other
month. This publication, Network USA, included more than a dozen environmental stories during
2003, covering environmental policies, incidents, awards, and programs. In addition, a brochure called
Connecting with the Future was distributed to all employees to familiarize them with our Framework for
Responsible Business, which includes statements of National Grid Transco’s environmental policy for
its worldwide operations.
We have increased our use of teleconferences in place of meetings requiring transportation, and have
begun to distribute an environmental newsletter to a number of employees.
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Performance Measurement
Environmental Organization
A highly trained and experienced environmental staff manages and monitors our conformance with the
Environmental Policy. The staff consists of a vice president of environmental, a manager of site investigation and remediation (SIR), a New York manager of environmental compliance, a New England manager
of environmental compliance, and a number of professionally trained environmental engineers.
We are divided into New England and New York functional areas for electricity distribution. Each
functional area is broken down into divisions, with environmental engineers on staff who manage environmental compliance with regulatory requirements and company environmental policies within the local
division. Our transmission organization also has its own environmental engineers, who monitor environmental requirements associated with transmission line construction and transmission operations in New
England and New York.
Environmental Management System
Our Environmental Management System (EMS) has matured over the past decade, and continued
refinements are helping us to improve our environmental performance. We adhere to the international
consensus standard for Environmental Management Systems, ISO 14001, to guide environment-related
operations. (See Appendix E for a description of the ISO 14001 standard.) We believe this helps us
manage compliance assurance and environmental performance, and facilitates continual improvement
of our EMS.
During FY2003, we continued to meet the ISO 14001 standard by:
■ Reviewing our environmental aspects and impacts associated with operations, such as management
of air quality, solid and hazardous wastes, natural resources, and emergency response,
■ Preparing, revising, and updating procedures to minimize the identified environmental impacts and
to improve operational controls,
■ Setting objectives and targets consistent with our environmental policy, the prevention of pollution,
and the enhancement of environmental performance,
■ Documenting our EMS to incorporate continual improvement,
■ Training operations employees to conduct their activities to minimize adverse environmental
impacts, and
■ Conducting internal and external audits of the EMS.
We maintained our transmission certification for EMS in 2002-2003, which includes undergoing surveillance audits. In June 2003, we completed the process of integrating the Transmission EMS into a single
ISO 14001 registration for our New York and New England transmission operation.
For our electricity distribution companies in New England, we have developed an Environmental
Management System that is compatible with ISO 14001. We have maintained conformance in New
England to the ISO 14001 standard, and have brought the New York electricity and gas distribution
operations EMS into conformance with the ISO 14001 standard as well.
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Compliance Audit Program
The goal of National Grid’s Environmental Compliance Audit Program is to provide independent
verification and assurance to management that:
■ The company’s operations are performed in accordance with applicable environmental statutes
and regulations,
■ The company’s operations conform with internal environmental policies and procedures, and
■ Environmental management systems are in place to ensure continued conformance.
In support of this goal, environmental audits are conducted frequently throughout the company and
its associated operations. During FY2003, these audits focused primarily on compliance issues at specific
facilities. However, a specific management system and a gap analysis were reviewed as well during the
fiscal year.
National Grid has two executive committees that review all legal notices received from federal, state, or
local regulatory agencies that allege failure of the company to comply with environmental statutory and
regulatory requirements. These committees also review the corrective actions taken by the responsible
parties for appropriateness, timeliness, and suitability for mitigating any recurrence.
Our parent company has implemented a Group-wide environmental audit program, under which a threetiered audit approach may be undertaken. Tier 1 audits are reserved for Group-related issues, while Tiers 2
and 3 are undertaken by the operating company. The three tiers referenced by the program are:
■ Tier 1 Group – Environmental Policy audits
■ Tier 2 Operating company – System audits
■ Tier 3 Operating company – Environmental compliance audits
In addition, audits of the company’s EMS are conducted by the Environmental Department. These
audits are separate from the Environmental Compliance Audit Program.
During FY2003, the Environmental Compliance Audit Program successfully merged the former audit
functions in the New England and New York regions into one functional group. Also, the activity
used to monitor environmental audits was transitioned from a company goal to the planned audits.
This transition better reflected the objectives of the merged audit functions.
Table 3 shows the number of planned Tier 2 (System) audits compared with the number of actual Tier 2
audits conducted during calendar years 2000 through 2003 within the U.S. operations of National Grid.
Table 3
Summary of System Audits, Planned Versus Conducted During Calendar Years 2000-2003
Internal, Third Party, and Registrar Audits
Organization
2001
20021
2003
Transmission
Company goal
Planned
Actual
1
1
4
4
4
4
-
Distribution
Company goal
Planned
Actual
1
1
2
2
2
2
3
22
1
2
20
2000
In 2002, the Environmental Compliance Audit Program transitioned from calendar to fiscal year audit schedules.
One of the planned System audits was replaced with a Compliance audit at the request of management.
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Table 4 provides a summary of the number of Tier 3 Compliance audits planned, vs. the number of Tier 3
Compliance audits actually conducted during the years 2000 through 2003.
Table 4
Summary of Compliance Audits (Tier 3) Planned Versus Conducted
During Calendar Years 2000 and 2001 and Fiscal Years (FY) 2002 and 2003
Organization
National Grid
1
2
Company goal
Planned
Actual
2000
2001
12
13
12
12
20021
11
11
2003
24
232
In 2002, the Environmental Compliance Audit Program transitioned from calendar to fiscal year audit schedules.
Two of the Planned Compliance audits were removed and one Compliance audit was added at the request of management.
In December 2002, our parent company revised the existing Group-wide environmental audit program.
The revisions referenced the necessity of developing and implementing an audit approach that focuses
primarily on high-risk aspects. Starting in FY2004, the planned environmental audits will review these
high-risk aspects by revising a modified application of the company’s existing environmental aspects
analyses.
As a result, the Environmental Compliance Audit Program will conduct significantly more Tier 2 System
audits than Tier 3 Compliance audits. Also, the scope of the Tier 2 audits will typically encompass activities in both the New England and New York regions. This system-wide approach will better reflect the
environmental activities of the merged U.S. operations of National Grid.
Responses to Legal Notices
National Grid takes a number of measures to comply with local, state, and federal environmental laws
and regulations in our operations. Where we are found in violation of such laws or regulations, we strive
to take quick and effective remedial action and examine each case to prevent recurrence.
During FY2003, National Grid received the following notices of alleged environmental violations
related to its U.S. operations. Our subsequent responses and/or remedial actions are described in Table 5.
Table 5
FY2003 Legal Notices and Responses/Remedial Actions
New England
Issuer and Date of Notice
Description of
Alleged Violation
Remedial Actions Taken
by National Grid
New Hampshire Dept. of
Environmental Services (DES),
May 29, 2002
DES inspector gave the High Voltage
Direct Current facility in Monroe, NH a
National Pollutant Discharge Elimination
System Inspection Worksheet, identifying
five deficiencies in discharge monitoring and
reporting, and requiring corrective action
within 30 days.
All corrective actions were completed
within the deadline.
Rhode Island Department of
Environmental Management (DEM),
June 10, 2002
Warning Letter to Narragansett Electric
stated that more than 3 cubic yards of solid
waste (used vehicle tires) were observed on
a right-of-way in Charlestown, RI, constituting
a violation of RI solid waste laws. Required
removal and proper disposal of the waste.
All tires removed from the right-of-way and
disposed of at the Central Landfill on June 24,
2002. A response letter with documentation of
proper disposal was submitted to DEM on June
26, 2002, within 30-day deadline specified in
Warning Letter.
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Table 5 (continued)
FY2003 Legal Notices and Responses/Remedial Actions
New England
Issuer and Date of Notice
Description of
Alleged Violation
Remedial Actions Taken
by National Grid
Massachusetts Department of
Environmental Protection (DEP),
August 9, 2002
Legal Notice to Massachusetts Electric
regarding results of DEP audit of the
company’s Worcester Garage hydraulic
lift spill site. DEP cited failure to submit
Phase IV Remedial Implementation Plan
within prescribed regulatory deadline.
Massachusetts Electric had previously submitted
letter to DEP stating need for revisions of
remedial implementation and action plans, and
that revised plans would be submitted to DEP
under alternate schedule. Massachusetts
Electric is in compliance with the alternate
schedule presented in the letter.
City of Pawtucket,
August 13, 2002
Violation Notice issued to Narragansett
Electric for “high grass and weeds” at a
former substation property on Overland
Avenue in Pawtucket, RI.
Narragansett Electric immediately addressed this
issue. City considers matter closed.
Narragansett Bay Commission,
August 16, August 30, and
September 18, 2002
Notices of Non-Compliance to Narragansett
Electric in response to three separate
exceedances of the oil and grease permit
limitation for Providence, RI truck wash.
Truck wash shut down until modifications to oil
water separator could be evaluated.
City of Gloucester,
November 18, 2002
Notification of Cross Connection Violation to
Massachusetts Electric in response to a
backflow preventer failing a required semi-annual
test administered by city on November 13, 2002.
Massachusetts Electric immediately repaired the
failed device, and it successfully passed re-test
by city on November 19, 2002.
Massachusetts Department of
Environmental Protection (DEP),
received on November 19, 2002
“Notice of Audit Finding” to Massachusetts
Electric relating to audit of 21E response
actions conducted at former Centreville
Substation in Winchendon, MA. DEP
identified a “Violation Not Requiring Correction”
associated with laboratory analysis that
was performed.
In discussions with DEP during audit, DEP
accepted rationale for the selected laboratory
analysis. However, since rationale was not
included in Massachusetts Electric’s previously
submitted report, DEP considered it to be
a violation.
Massachusetts Department of
Environmental Protection (DEP),
received on December 5, 2002
Notice of Noncompliance to Massachusetts
Electric for failure to submit Phase II and
Phase III Reports for Spencer manufactured
gas plant site within regulatory deadline.
Massachusetts Electric had previously notified
DEP that submittal would be delayed in order to
conduct additional investigation of the site to
fully delineate the extent of the contamination.
Massachusetts Electric is in compliance with the
alternate schedule presented in the letter.
Massachusetts Department of
Environmental Protection (DEP),
December 30, 2002
Notice of Noncompliance to Massachusetts
Electric for failure to submit the Phase III
and Phase IV reports for Leominster, MA.
manufactured gas plant site within regulatory
deadline.
Massachusetts Electric had previously notified
DEP that submittal would be delayed so it could
conduct an Immediate Response Action to
remove separate phase contamination from
the subsurface as well as conduct additional
investigation of the site. Massachusetts Electric
is in compliance with the alternate schedule
presented in the letter.
Following NYSDEC inspections at North
Albany, NY facility on March 14, 2002
and April 15, 2002, Notice of Violation to
Niagara Mohawk for non-compliance with
NYSDEC hazardous waste regulations due
to alleged violations in handling/labeling
of fluorescent lamps, spill response, and
spill reporting.
Internal corrective action program implemented.
DEC advised of actions taken. Received letter
from NYSDEC on May 3, 2002, noting
satisfaction with actions taken.
New York
New York State Department of
Environmental Conservation
(NYSDEC), April 16, 2002
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Table 5 (continued)
FY2003 Legal Notices and Responses/Remedial Actions
New York
Issuer and Date of Notice
Description of
Alleged Violation
Remedial Actions Taken
by National Grid
Saratoga County Sewer District
(SCSD), October 17, 2002
Notice of Violation received by Niagara
Mohawk for non-compliance with Saratoga
County Industrial Wastewater Discharge
Permit sampling requirements due to alleged
deficiencies associated with monthly
discharge reports for the groundwater
treatment system at Saratoga Manufactured
Gas Plant site.
Contractor who built and operated the treatment
system apparently did not provide sampling
data for second half of September due to
misunderstanding over whether system had
been officially turned over to Niagara Mohawk.
A new contractor was hired to perform the
required sampling and reporting. SCSD was advised
of actions by letter. Matter is considered closed.
Saratoga County Sewer District
(SCSD), November 25, 2002.
Notice of Violation to Niagara Mohawk for
non-compliance with Saratoga County
Industrial Wastewater Discharge Permit
discharge limitation due to alleged
exceedance of permit effluent limitation
for benzene at Saratoga MGP site.
Problem traced to activated carbon in filtering
device. Carbon replaced same day notice was
received, and subsequent sample was within
permit limit. County advised of actions taken.
Town of Tonawanda,
January 8, 2003
Notice of Violation to Niagara Mohawk for
non-compliance with Town’s Sewer Use
Ordinance due to alleged discharge of low
pH water from Cherry Farm groundwater
treatment system.
Problem traced to malfunctioning pH probe and
damaged caustic addition pump. Corrective
actions were completed and town advised of
actions taken.
Saratoga County Sewer District
(SCSD), February 25, 2003
Notice of Violation to Niagara Mohawk
alleging exceedance of permit effluent
limitation for arsenic at Saratoga MGP
groundwater treatment facility.
Facility was shut down pending evaluation and
implementation of potential corrective actions.
Explanation of cause of the violation and plan
to correct and/or prevent future violations
submitted to SCSD on March 7, 2003. Follow-up
monitoring report also submitted. Niagara
Mohawk coordinated with the county and the
NYSDEC to satisfactorily resolve the matter.
Environmental Training
National Grid’s Environmental Training Program in the U.S. ensures that employees involved in activities that could have a significant environmental impact (including hazardous waste management and spill
response) receive training specific to their job responsibilities and in accordance with federal, state, and
local requirements. This program also ensures that employees are aware of and familiar with National
Grid’s Environmental Policy, Environmental Management Systems, and environmental and operating
procedures that apply to their specific job functions.
The Environmental Training Program is administered by the company’s Environmental Department and
may include in-person training by Department personnel or use of an informational videotape produced
specifically by and for National Grid.
Group Sustainability Performance Metrics
As part of the sustainability performance report for National Grid Transco’s worldwide operations, we
compile and report data on U.S. operations in areas such as energy, water, and fuel usage, and dollars
spent on community and environmental efforts. We have increased the number of measured areas from
16 in FY 2002 to 21 in FY2003, reflecting National Grid’s participation in ISO 14001 and expanded
holdings in the U.S. (including gas operations) through the acquisition of Niagara Mohawk.
U.S. metrics for FY2003 are shown in Table 6 on the following page.
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Table 6
National Grid U.S. Sustainability Performance Metrics FY 2003
24
Metric #
Environmental Performance Metric
Result
1
Environmental Incidents – Category 1 (total #)
Measures oil spills and other chemical releases to water, oil spills
> 100 gallons, PCB spills, and other incidents as determined by
Environmental Dept.
17
2
Environmental Incidents – Category 2 (total #)
Measures all incidents not classified as Category 1.
560
3
ISO 14001 Count – Total number of operating systems with number
of personnel per system
Measures actual registrations and conformances with the International
Organization for Standardization (ISO) Environmental Management
System (EMS) Standard 14001.
Registrations 2
Transmission 130 personnel
Investment recovery 18 personnel
Conformances 2
NE Distribution 2,412 personnel
NY Distribution 4,291 personnel
4
Electricity Use (total kilowatt-hours)
Measures electricity used by all National Grid U.S. facilities.
108,153,009 kWh
5
Percentage of Electricity Purchased from Renewable Sources
(hydro, wind, and waste)
For New England, data available for Massachusetts Electric and Nantucket
Electric only, from Department of Telecommunications and Energy (DTE)
Disclosure Labels. For New York, data from Niagara Mohawk financial
reports for Calendar Year 2002.
NE: 7 to 8%
NY: 36%
6
Fuel Use – Facilities and Network:
Measures the fuel oil (gallons), natural gas (Therms), and propane
(gallons) used by all National Grid U.S. facilities (excludes
emergency generators in New England).
Fuel oil 78,513 gallons
Natural gas 1,311,629 Therms
Propane 22,000 gallons
7
Fuel Use – Fleet/Transportation:
Measures unleaded gas, diesel fuel, aviation fuel, and personal vehicle
use associated with National Grid’s U.S. transportation fleet/use.
(Note: compressed natural gas not measured due to infrequent use.)
Unleaded gas 3,439,843 gallons
Diesel 2,330,194 gallons
Aviation fuel 107,317 gallons
Personal vehicle use 7,841,335 miles
8
Water Use (gallons)
Measures the amount of water used by all National Grid U.S. facilities
(based on metered/billed and estimated usage).
24,734,323 gallons
9
Natural Gas Losses (Dth)
Reports the “unaccounted-for gas” representing aggregated total losses
from metering errors, theft of service, gas used internally, leakage, venting,
and other losses (applicable only to NY and based on calendar year 2002).
Note 1 Dth = 10 Therms or one million Btus (1 MMBtu) or 1,000 cubic feet.
1,646,000 Dth
10
Electricity Losses – T&D (mWh)
Measures electricity losses across the New England portion of National Grid’s
U.S. transmission and distribution system (based on calendar year 2002).
New York data is currently unavailable.
Transmission losses 908,175 mWh (2.86%)
Distribution losses 1,155,748 mWh (3.74%)
11
Solid Waste (tons)
Reports the total solid waste disposed of by National Grid’s U.S. facilities
(based on vendor records).
6,060 tons
12
Hazardous Waste (tons)
Reports the total hazardous waste disposed of by National Grid’s U.S.
facilities (based on federal RCRA hazardous waste and vendor/manifest
records).
421 tons
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Table 6 (continued)
National Grid U.S. Sustainability Performance Metrics FY 2003
Metric #
Environmental Performance Metric
13
Recycled Waste (tons)
Reports the metal, electric equipment, non-PCB transformer oil,
wood, and lighting wastes that were recycled by National Grid’s U.S.
operations (based on Investment Recovery and procurement records).
Note The Investment Recovery facility in New York began receiving certain
New England materials in the fall of 2002. During FY2003, the Investment
Recovery facility recycled some other materials that were not previously
specified for this metric. These other materials and amounts were:
paper (846 tons), plastics (57 tons), glass (234 tons), meters
(201.8 tons), and electronics (4.5 tons). These materials and
amounts are not included in the reported total.
Result
Total waste recycled: 13,521 tons, broken
down as follows:
Copper wire/cable 881.5 tons
Aluminum wire, cable, and poles
1,123.5 tons
Lead cable 684.5 tons
Iron and steel 1,838.5 tons
Transformers (Distribution) 1,438.5 tons
(excludes 7,806 elecrical equipment pieces
from NY; weight unknown)
Non-PCB capacitors (Distribution) 24.4 tons
(excludes NY; not available)
Non-PCB transformer oil (Distribution)
802.5 tons (NE only; unavailable for NY)
Wood waste 4,207 tons of treated wood
waste (NE) and 180.3 tons of clean wood
waste (NY) (pallets, reels, miscellaneous)
Wood chips (NE only) 1,800 tons
Customer lighting ballasts (NE only)
444,662 Kg or 490.2 tons
Customer lighting lamps (NE only)
802,399 linear feet or 50.2 tons
14
SF6 Losses (pounds)
Reports the amount of Sulfur Hexafluoride lost from electric substation
equipment (based on calendar year 2002 for NY and 4/1/02 to 3/31/03
for NE; total SF6 in use is 133,439 pounds).
12,856 pounds
15
Cable Oil Losses (gallons)
Reports the quantity of fluid lost from underground transmission cables
due to leaks (releases) and the quantity of fluid added to balance calibration
or for other maintenance reasons.
Releases 553 gallons
Calibration 154 gallons
16
Potentially Contaminated Sites (number of acres, owned vs. non-owned)
Reports the total number and acreage of sites managed by Environmental
Department’s Site Investigation and Remediation (SIR) program.
Total sites 135
Owned 76
Non-owned 59
Total acres 1,332
Owned 704
Non-owned 628
17
Sites Under Remediation (number, owned vs. non-owned)
Reports the total number of sites subject to actual remediation, as
managed by Environmental Department’s Site Investigation and
Remediation (SIR) program.
Total sites 31
Owned 20
Non-owned 11
18
Remediated Properties Sold (number)
Reports the total number of any properties that were remediated and sold.
0
19
Spend on Remediation (owned vs. non-owned)
Reports the total costs incurred for actual remediation of
contaminated sites.
Total $16.95 million
Owned $14.14 million
Non-owned $2.81 million
20
Spend on Vegetation Management ($)
Reports the total costs incurred to manage vegetation on
National Grid’s U.S. rights-of-way.
$41.3 million
21
Emissions From Major Generators
Reports emission data for the Nantucket generating units, based on
14,717 gallons of diesel fuel used during 2002.
NOx .95 tons
SO2 .19 tons
CO2 165 tons
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Electric and Magnetic Fields (EMF)
Electric and magnetic fields (EMFs) are produced by anything that carries electricity, such as overhead
power lines and underground cables, or by anything that uses electricity, such as household appliances and
many transport systems. They also occur naturally. Currents in the earth’s core create a
magnetic field, and electric fields are caused by electrical activity in the upper
atmosphere. Fields are also present in our bodies.
During the last 20 years, major research programs throughout
the world have explored whether EMFs have an adverse impact
on health. Although the balance of the evidence is against a link
between ill health and EMFs, there is some scientific evidence
suggesting that exposure to EMFs may be harmful to health.
International bodies such as the World Health Organization, the
International Agency for Research on Cancer (IARC), and, in the
United Kingdom, the National Radiological Protection Board have
investigated this issue and have concluded that there is no established
cause and effect link between EMFs and ill health. They have, however,
recognized that the possibility cannot be ruled out. We believe that any
suggestions of a health risk must be taken seriously and for that reason, and
as part of our policy on EMFs, we support high-quality independent research
into this issue, in the U.K., the U.S., and internationally.
Our EMF policy and brochure is available (in PDF format) on our website at:
www.nationalgridus.com/commitment/d3-3_emfs.asp.
For the complete text of National Grid Transco’s Group Public Position Statement on Electric and
Magnetic Fields, please visit: www.ngtgroup.com/about/mn_corp_govern.html and click on “Electric
and Magnetic Fields” at the bottom of the page.
Looking Ahead
National Grid management and staff are committed to continuing our responsible, proactive
management of environmental risks. We want to assure that National Grid remains a responsible,
sustainable business for the long-term.
Our goals for FY2004 include:
■ Strengthening those programs that are already successful, such as our training efforts, ISO 14001
conformance, recycling, and Environmental Management System,
■ Evaluating the causes of our oil spill incidents in New York and New England, developing
recommendations to prevent such incidents, and reducing their numbers and severity,
■ Finding causes and remedies for those other areas where we have not yet met our objectives,
including incidents that may result in fines or notices of violations,
■ Negotiating a revised Memorandum of Understanding between the U.S. Environmental Protection
Agency and National Grid that more precisely reflects the combined New England and New York
SF6 programs,
■ Increasing our employees’ awareness of regulatory changes, lessons learned, and environmental audit
findings, and
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■
Incorporating, where feasible, the sustainability reporting guidelines of the Global Reporting Initiative
(GRI) in preparing the content, format, and data of our future Environmental Performance Reports.
GRI is an international effort to achieve global consistency in sustainability reporting. The intended
result is to help environmental stakeholders more accurately gauge the relative sustainability performance of varied companies and organizations.
Our sustainability effort calls for continued partnerships between National Grid and regulators, communities, customers, and others. We will actively seek ideas from each of these interests as we formulate our
programs and priorities.
Verification Statement of ESS Group, Inc.
ESS Group, Inc. (ESS) has been contracted by National Grid USA Service Company to perform
an independent verification review of National Grid’s U.S. Environmental Performance Report (the
Report) for its fiscal year 2003 (April 1, 2002 through March 31, 2003). We have reviewed the Report
using the approach discussed below to examine the reliability of data used to support the assertions of
environmental performance made by National Grid regarding its U.S. operations.
ESS performed the technical review of key portions of the Report’s contents with senior level environmental compliance staff under the direction of a Qualified Environmental Professional (QEP). At the
outset, we reviewed National Grid’s Environmental Policy and documents related to its Environmental
Management System. We then reviewed the Report for compatibility and consistency with National
Grid’s corporate environmental goals.
ESS visited three National Grid facilities and reviewed a representative sample of data included in the
Report. We also interviewed those who were responsible for the Report’s contents. Our specific purpose
was to determine if internal processes and controls were providing reliable data and information. Based
on the documentation gathered and discussions conducted, ESS is able to present an opinion regarding
the validity and reliability of the information presented in the Report.
ESS’s Approach
Specifically, ESS reviewed the Report and prepared its verification statement by performing the
following tasks:
1. Reviewed the next-to-final draft of the Report for consistency with National Grid’s Environmental
Policy and Environmental Management System,
2. Reviewed content for readability and provided appropriate suggestions for editorial improvements,
3. Reviewed samples of source data used to compile numerical values provided in the Report and
reviewed other related records and supporting documentation,
4. Conducted on-site interviews in Syracuse, New York; Westborough, Massachusetts; and
Northborough, Massachusetts with the appropriate source content providers. Participated in
follow-up telephone conversations, as necessary, to confirm the validity of the methods and data
used to compile the Report content,
5. Reviewed the Report methodology to verify that National Grid has internal processes, systems, and
controls for assuring the accuracy and reliability of the source data. This included verifying a sample
of the environmental metrics included in the Report, but not all of the environmental metric data,
6. Reviewed all final editorial changes to the Report for adherence to the accuracy standards previously
described, and
7. Prepared the following independent Verification Statement under the direction of ESS’s QEP, who
provided oversight for ESS’s review and assessment of the Report.
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ESS’s Opinion
Upon completion of the verification activities described above, ESS makes the following findings
regarding National Grid’s Report:
■
■
■
The Environmental Management System in place for National Grid’s U.S. operations provides the
corporation with the tools necessary to manage, track, and report and enhance performance related
to environmental goals,
The environmental performance data to create the Report has been accurately compiled and
represented in the Report, and
The Report consistently reflects National Grid’s U.S. corporate environmental goals as stated in
its Environmental Policy.
ESS Group, Inc.
ESS Group, Inc. is a multidisciplinary environmental engineering and consulting firm located
in East Providence, Rhode Island; Wellesley, Massachusetts; and Sandwich, Massachusetts. ESS has
extensive experience related to the environmental compliance of the energy sector in the northeastern
United States.
Appendices
Appendix A
Environmental Awards
During FY2003, National Grid’s efforts received:
■ An Environmental Award for Corporate Leadership from the Environmental Business Council of
New England, in recognition of our Massachusetts and Rhode Island programs in wetlands restoration, land preservation, support of wildlife, manufactured gas plant remediation, energy efficiency,
and ISO 14001-certification of our transmission operations,
■ Tree Line USA certification from the National Arbor Day Foundation and the National Association
of State Foresters, for our contributions to improved community forests,
■ An Environmental Champion Award from the New York League of Conservation Voters for Niagara
Mohawk’s “GreenUp” program, which provides customers with the ability to contract for electricity
supplies from renewable sources such as wind, biomass, and hydropower,
■ Recognition of five of our energy-efficiency programs as among the nation’s best by the Washington
D.C.-based American Council for an Energy-Efficient Economy, a non-profit organization dedicated
to research and policy development to advance energy efficiency as a means of promoting both economic prosperity and environmental protection, and
■ National Electronics Recycling Award from Onyx, an environmental services company, for our
history of promoting environmental stewardship by including lamp and ballast recycling in our
New England energy conservation programs and for our overall recycling program.
In addition, in early FY2004, we received a Merit Award from the U.S. Environmental Protection
Agency for our energy efficiency programs’ contribution to preserving the environment in the New
England – New York region.
Appendix B
Recycling Process for Materials in National Grid’s New England Operations
Scrap copper, aluminum wire, aluminum cable, and lead cable are generated as we build and maintain our
distribution and transmission systems. The scrap wire and cable are collected at various facilities and
projects, shipped to National Grid’s Investment Recovery and Recycling Services facility in Syracuse,
New York, processed, and sold as raw material for manufacturing processes.
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Scrap iron and steel are generated when we build, maintain, or demolish our buildings and transmission
towers. As with scrap wire and cable, the metals are collected at more than 40 New England locations,
shipped to scrap metal dealers for sorting and processing, and subsequently transported to steel mills for
use as a raw material in the manufacturing of new steel.
Scrap electrical equipment results from equipment failure or obsolescence. The items have salvage value
because they contain copper, aluminum, and steel. The equipment is collected at various National
Grid facilities. The oil is sampled and analyzed for PCB content. The items are then transported to
an approved recycling vendor that specializes in electrical equipment. That equipment is drained of
oil, the metal components are separated and cleaned, and the metals are shipped to smelters and mills
for use as a raw material in the manufacture of new copper, aluminum, and steel.
Transformer oil is another waste product that has useful value. Most of the oil removed from electrical
equipment is suitable for recycling as a fuel source in power generation facilities or cement kilns.
Inefficient lighting lamps and ballasts are collected as part of our energy-efficient lighting programs for
customers. Our company has a comprehensive program to replace and recycle these items. The lamps
and ballasts are separated into their individual components. The recyclable metals are then cleaned
and shipped to smelters and mills for use as a raw material in the manufacture of new copper and steel
products. Metallic mercury is also recovered from the lamps and reused in a variety of chemical and
instrumentation products. Non-recyclable lighting waste components are disposed of in licensed
incinerators and landfills.
Contaminated soils are generated by National Grid as it responds to current and historical spills of oil.
These soils are suitable for recycling, and so may be kept out of landfills. The soils may be processed
into asphalt or aggregate, using a variety of treatment techniques. The resulting materials can be reused
in paving projects. We are evaluating several methods to track the volumes of recyclable, contaminated
soils generated throughout our operations.
Wood waste from our operations consists mostly of old or damaged utility poles. We also produce a small
volume of untreated wood waste from scrap shipping pallets and cable reels. During FY2003, we were able
to recycle treated wood waste and are seeking solutions for the renewed recycling of these materials.
We must control vegetation within our power line rights-of-way to reduce the impact of tree-related
outages on transmission and distribution circuits. As part of their tree-trimming process, tree crews in
our northern division in Massachusetts, hired by National Grid, deliver wood chips generated from treetrimming activities to centralized storage facilities on company property. The chips are then picked up
by a private firm and utilized as industrial boiler fuel, economy grade mulch, and erosion control chip
bales. As industrial boiler fuel, the wood chips are in high demand due to the increased cost of petroleumbased fuels.
Erosion control chip bales can be substituted for, and have some advantages over, hay bales for sedimentation and erosion control on construction sites. National Grid, in collaboration with a private firm, is
working on development of the manufacturing process for chip bales. During FY2003, National Grid
promoted the use of wood chip bales through circulation of promotional literature to municipalities,
conservation commissions, and other organizations, and presentations at utility and forestry conferences
in Nebraska, Massachusetts, and Rhode Island. In FY2003, we sold wood chip bales to conservation commissions in two Massachusetts towns and to the Army Corps of Engineers. National Grid has developed
a relationship with American Training, a non-profit business enterprise for the disadvantaged, which provides the labor force for the bagging process. In FY2003, American Training provided National Grid with
a partnership recognition award at its annual meeting.
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Appendix C
Manufactured Gas Plant (MGP) Remediation Technologies
Remediation technologies used at former MGP sites include:
■ When feasible, removing concentrated coal tars and other MGP process wastes and disposing of the
wastes at licensed disposal facilities such as soil roasting plants, incinerators, and secure landfills,
■ Using both active and passive groundwater treatment technologies when necessary,
■ Chemical oxidation of contaminants in situ (in place) to reduce the contaminants to harmless
carbon dioxide and water,
■ Biologically treating MGP process wastes on-site using naturally occurring bacteria to biodegrade
them into nitrogen, carbon, and water, and
■ Eliminating potential exposure to any remaining wastes by installing physical barriers, controlling
the future use of the properties, and implementing deed restrictions on properties.
Appendix D
Energy Efficiency Programs
New England
Since 1987, National Grid has invested more than $500 million in energy efficiency improvements
at facilities owned by our customers. More than 50 percent of our 1.7 million New England customers
have been served by at least one of our programs. During the period 1998-2003, our residential programs
reached more than 250,000 homeowners and tenants and our business programs served approximately
3,000 businesses each year.
For Commercial, Industrial, and Municipal Customers
Design 2000plus
Design 2000plus provides financial incentives and technical assistance to developers, customers, and
design professionals to encourage use of high-performance design features and efficient electrical equipment that optimize energy efficiency in their new construction, renovation, or remodeling projects.
These services also target opportunities for equipment replacement.
Energy Initiative
Energy Initiative assists customers in replacing existing equipment with energy-efficient alternatives. It
is designed to help the customer reduce energy bills and improve the facility’s overall efficiency, while
helping to promote environmental responsibility. The following services are available:
■ Technical assistance to help customers identify energy efficiency opportunities,
■ Commissioning to ensure that the equipment and systems are operating as designed,
■ Financing to provide customers with a vehicle for funding projects,
■ Ballast and lamp recycling to dispose of equipment in an environmentally appropriate manner, and
■ Business Energy Analysis to help customers learn about energy usage and savings opportunities
in their facilities, track their progress, and take action. This on-line analysis tool is available on
our electricity distribution companies’ websites.
Small Business Service (SBS) Program
SBS helps small business customers (less than 100 kilowatts of demand) to reduce their energy use while
saving hundreds of dollars annually. Among the energy efficiency improvements available through this
program are energy-saving lighting upgrades, walk-in cooler efficiency measures, photocells for outdoor
lighting, energy-efficient time clocks, programmable thermostats, and occupancy sensors.
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For Residential Customers
ENERGY STAR® Appliances & Lighting
National Grid is part of a regional effort to promote ENERGY STAR® appliances and lighting. We work
on this program with the Environmental Protection Agency and the Department of Energy. National
Grid also supports training for retailers.
ENERGY STAR® Appliances use 10 to 50 percent less energy than other appliances. ENERGY STAR®
lighting costs less than half as much to operate as standard models. Rebates are offered on such items as
clothes washers and room air conditioners in cooperation with manufacturers and retailers. Rebates may
also be available on indoor and exterior lighting fixtures, ceiling fans, torchieres, and light bulbs. A mail
order catalog is available. Rebates vary throughout the year and by state.
ENERGY STAR® Homes
ENERGY STAR® Homes are state-of-the-art homes designed for energy efficiency and comfort.
National Grid offers a variety of incentives and technical support to help customers meet national
ENERGY STAR® Home standards. ENERGY STAR® Homes are nationally recognized for greater
value, lower operating costs, and increased durability, comfort, and safety.
Home Energy Audit and Energy Improvement Rebates
National Grid offers a variety of in-home energy audits for customers. Services are also available on the
web and by phone. Residential customers can perform a home energy audit online by visiting the website
www.energyguide.com. Customers may use the home energy audit to see how their energy usage and
costs compare with similar homes.
Through our EnergyWise program, free home energy audits are available to all residential customers and
apartment building owners. Rebates are available to help pay for improved insulation and the installation
of ENERGY STAR® lighting and refrigerators. The type of assistance varies depending on heating fuel
and the number of units in the facility.
Our Home Energy Services program allows customers to receive rebates of 33 to 75 percent of the cost
of replacing inefficient refrigerators and heating systems and adding insulation and air sealing. General
information about energy efficiency and renewable energy is also available by phone.
Special services are available to low-income customers through our Appliance Management Program,
which helps reduce electricity usage and lower electric bills. These customers can obtain information
about the program and services through their local community action agency or from Massachusetts
Electric, Nantucket Electric, Narragansett Electric, or Granite State Electric.
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New York
Niagara Mohawk’s “Energy Efficiency in the Empire Zones” conservation program is part of the company’s
Economic Development Plan. This new program provides rebates to certified Empire Zone Rider (EZR)
customers who implement eligible energy efficiency measures.
Empire Zone businesses represent a promising opportunity for Niagara Mohawk’s limited return to direct
demand-side management (DSM), because these New York State-designated revitalization areas typically
are dominated by relatively old, inefficient buildings. In addition:
■ EZR customers pay deeply discounted delivery rates, and therefore have very little financial
incentive to conserve energy.
■ Empire Zone businesses are among a very few number of customer groups who do not pay the
Systems Benefit Charge, which is the funding mechanism for New York State Energy Research
and Development Authority energy efficiency programs. This new program therefore fills an
important DSM gap for that group of customers.
■ For these deeply discounted customers, doing something on the demand side now will help to
temper the impact of their return to standard tariffs at the end of their 10-year discount term.
Appendix E
ISO 14001
The International Organization for Standardization (ISO) is a worldwide federation of national standards
bodies from more than 140 countries.
ISO is a non-governmental organization established in 1947. The mission of ISO is to promote the development of standardization and related activities in the world, with a view to facilitating the international
exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific,
technological, and economic activity. ISO’s work results in international agreements that are published
as international standards.
In September 1996, the ISO promulgated ISO 14001 for environmental management systems. It is a
voluntary standard. The U.S. is a signatory country.
ISO 14001 integrates 17 operative clauses into a systematic format for controlling the impact of an
organization’s activities, products, and services on the environment. Under the guiding principle of
continuous improvement, the standard requires an environmental policy that is based on a comprehensive analysis of environmental aspects for significance, and a commitment to pollution prevention and
compliance with environmental laws and regulations.
The following elements flow from the policy:
■ planning (objectives and targets),
■ implementation and operation,
■ checking and corrective/preventive action, and
■ management review.
ISO 14001 is not a regulatory compliance standard. In the U.S., certification is granted to a facility upon
successfully completing a formal conformance (registration) audit by an accredited Registrar. ANSI-RAB
is the accreditation body in the U.S.
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For More Information
For additional information about National Grid’s U.S. environmental programs, or to provide
comments/suggestions on this Environmental Performance Report, please contact:
Philip B. George
Lead Senior Environmental Engineer
National Grid
300 Erie Boulevard West
Syracuse NY 13202
Tel: 315/428-6685
E-mail: [email protected]
or
Joseph Kwasnik
Vice President – Environmental
National Grid
25 Research Drive
Westborough MA 01582
Tel: 508/389-4290
E-mail: [email protected]
The web address for National Grid’s U.S. environmental pages is:
■ www.nationalgridus.com/commitment/d2-1_environment.asp
Our electric/gas subsidiaries’ websites are:
■ www.niagaramohawk.com
■ www.massachusettselectric.com
■ www.narragansettelectric.com
■ www.granitestateelectric.com
■ www.nantucketelectric.com
For a progress report on how we are meeting the principles of our Framework for
Responsible Business, please visit:
■ www.nationalgrid.com/responsibility/goals-progress/fr-goals-progress.html
For general information about National Grid’s U.S. operations, please visit
www.nationalgridus.com or write to:
National Grid
Corporate Communications Department
25 Research Drive
Westborough MA 01582
E-mail: [email protected]
The cover and seasonal photographic images are by Patrick Pacheco Zephyr, Pelham, MA
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This document was printed on recycled paper
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25 Research Drive
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