1. Proposal to adjust investment lead times Transmission Workstream 4 th May 2006

2. Release of incremental capacity  UNC B2.2.3 (c) (i) obliges National Grid to release incremental capacity at each ASEP to the level of either  150% of NTS SO baseline;  or an amount determined by the application of the IECR  The IECR allows National Grid to  Extend the investment lead time governing the release of incremental entry capacity  Undertake a 14 day consultation on the proposals  Submit the consultation report and proposals to the Authority  This is only undertaken in the event that we are unable to physically provide up to 150% of NTS SO baseline at the ASEP with a 3 year lead time

3. Incremental Capacity release Q4 2009 to Q3 2010 ASEPBaseline (GWh)% above baseline Incremental Capacity available Milford Haven950251191 Bacton1745202095 St Fergus167761790 Easington1062321407 150% of NTS SO Baseline available from October 2010

4. Requirement for adjusting investment lead time  Milford Haven  Any incremental capacity in excess of 25% of NTS SO baseline will require a duplicate pipeline which will take 4 years to deliver  Obtaining consent under the Environmental Impact Assessment  Planning permission  Easements from landowners  Easington, Bacton and St Fergus  Any incremental capacity in excess of the % shown in the previous table will require a greenfield compressor  From auction gate closure to commercial availability of a greenfield compressor is approximately 44 months  Completion of a public enquiry  Approval of HV electric power supply  Parallel working  There may be a requirement for an additional consultation if new ASEPs wish to take part in the September QSEC auction.

5. Consultation process  Consultation issued on 28 th April  Representations to  To be received by 17:00 on 12 th May 2006 Dave Adlam NG House Warwick Technology Park Gallows Hill Warwick CV34 6DA Email: dave.adlam@uk.ngrid.comdave.adlam@uk.ngrid.com