It's Official: KeySpan Is Now National Grid

The old KeySpan signs are coming down at the Jay Street headquarters of the KeySpan Corporation (once Brooklyn Union Gas). They are being replaced by silvery letters spelling out the name of the new corporation, 'National Grid.' (A graffiti artist loved the brushed metal simplicity of the new signs.)

After a lot of give and take, (including whistle blower suits, charges of collusion and rate-making tricks, a DOJ investigation and toxic site clean-up promises) the New York State Public Service Commission unanimously voted to approve UK-based National Grid's acquisition of KeySpan on Aug. 22. (Kudos to Newsday for their continuous coverage of the merger.)

The deal calls for a freeze on base gas delivery rates through 2012.

A member of the maintenance staff at KeySpan HQ in Brooklyn told McBrooklyn Wednesday that "it 's going to be a big job" changing all the signs, but that "National Grid is a better name. KeySpan... what kind of name is KeySpan?"

The best name, he said, was Brooklyn Union Gas. "But those days are gone."


Previous posts on the KeySpan/ National Grid merger:
- KeySpan Cleanup, and More Brooklyn Thursday News
- KeySpan Workers on Tinderhooks as Merger with National Grid Looms
- KeySpan/ National Grid Merger: Another Snag
- What Does KeySpan/ National Grid Merger Mean for Brooklyn?
- KeySpan, National Grid Merger One Step Closer
- British Co. to Take Over Brooklyn-Based Electric Business
- National Grid Offers Concessions in Pursuit Of Keyspan

Photo by MK Metz

National Grid's Catell Says Buh-Bye to His Million-a-Month Brooklyn Office

Newsday has a great story about the goings-on at National Grid's MetroTech headquarters.

National Grid (remember when it was called KeySpan? And before that Brooklyn Union Gas?) confirmed that it is in discussions with the landlord of its Downtown Brooklyn building. National Grid wants to vacate the top three floors to reduce costs and consolidate.

But there had been a little hitch, says Newsday: Former KeySpan chief executive Robert Catell, now executive chairman of National Grid USA, had "expressed a strong desire" to remain in his spellbindingly impressive 23rd floor office, which two sources said is leased for around $1.1 million a month.

After what we can assume was a bit of pushing and shoving -- Catell is said to have a "special bond" with his executive aerie -- we're told that the matter is now settled and that National Grid will fix up another office for Catell -- a bit lower.

Of course, hundreds of regular National Grid employees live in a different reality: All National Grid office employees below the vice president level are being shifted to workstations six by eight feet in size.

Catell's stock, retirement and potential separation package from National Grid has a value of $81.4 million if he departs this fall.

A Lower Perch for National Grid Chief Newsday

- It's Official: KeySpan is Now National Grid
- KeySpan Cleanup, and More Brooklyn Thursday News
- KeySpan Workers on Tinderhooks as Merger with National Grid Looms
- KeySpan/ National Grid Merger: Another Snag
- What Does KeySpan/ National Grid Merger Mean for Brooklyn?
- KeySpan, National Grid Merger One Step Closer
- British Co. to Take Over Brooklyn-Based Electric Business
- National Grid Offers Concessions in Pursuit Of Keyspan

Photos by MK Metz

TWU's National Grid Protest Jams Jay Street, Downtown Brooklyn - UPDATED

(See UPDATE at bottom of post.)
The rain didn't dampen a noisy, high-spirited TWU (Transit Workers Union) Local 101 protest at rush hour Thursday evening on Jay Street in Downtown Brooklyn. The rally was staged right in the street outside of the Brooklyn MetroTech headquarters of National Grid (which used to be called KeySpan, once known as  Brooklyn Union Gas).

Traffic slowed to a crawl as music blared, union workers chanted and blew whistles and sympathetic bus drivers leaned on their horns.

 The signs called National Grid "National Greed." TWU represents roughly 1,600 workers at National Grid, which, according to union workers, is threatening layoffs.

UPDATE: The Brooklyn Eagle has published a statement by National Grid.

Previous posts on National Grid / KeySpan / Brooklyn Union Gas:
- National Grid's Catell Says Buh-Bye to His Million-a-Month Brooklyn Office
- It's Official: KeySpan Is Now National Grid 
- KeySpan Cleanup, and More Brooklyn Thursday News
- KeySpan Workers on Tinderhooks as Merger with National Grid Looms
- KeySpan/ National Grid Merger: Another Snag
- What Does KeySpan/ National Grid Merger Mean for Brooklyn?
- KeySpan, National Grid Merger One Step Closer
- British Co. to Take Over Brooklyn-Based Electric Business
- National Grid Offers Concessions in Pursuit Of Keyspan

 Photos by MK Metz

Go to McBrooklyn's HOME PAGE.

KeySpan/ National Grid Merger: Another Snag

Newsday reports that Long Island Power Authority chairman Kevin Law demanded today that Brooklyn-based KeySpan Corp. present "in writing" a detailed plan for investigating and cleaning up old, toxic gas-plant sites before LIPA votes on a lucrative service agreement for KeySpan and its prospective owner, National Grid.

This unexpected move adds to the "rising chorus of calls for KeySpan to take action on the manufactured natural gas plants and gas storage sites, which have languished for decades under prior owners and which KeySpan acquired in 1998," Newsday says. LIPA has decided to delay a vote on the National Grid agreement.

See full story here.

See previous postings (with other possible merger complications) here.

Photo of the KeySpan logo, taken at company headquarters in Downtown Brooklyn, by photojournalist MK Metz.

KeySpan Workers on Tinderhooks as Merger with National Grid Looms

Both Brooklyn-based KeySpan and National Grid -- the British company close to taking over KeySpan, once known as Brooklyn Union Gas -- have initiated an early retirement offer for management-level employees in an effort to cut some 700 jobs, according to Newsday.

The job cuts are crucial for "the promised hundreds of millions of dollars in so-called synergy savings" from the merger. If the voluntary program doesn't do the job, however, the two companies will "review other options."

One KeySpan veteran said the planned cuts have affected worker morale. "Everybody is walking on eggshells," said the worker.

More here.

Previous posts about the KeySpan/ National Grid merger here.

Photo by MK Metz

What Does KeySpan/ National Grid Merger Mean for Brooklyn?

Long Islanders seem to be expressing themselves much more than Brooklynites about the soon-to-be-accomplished KeySpan/ National Grid merger. Do the Islanders have more of a beef?

At a public info session in Smithtown Friday Long Islanders expressed "a mix of concern and optimism" about Long Island Power Authority's proposed service agreements with National Grid and KeySpan, reports Newsday. Long Island residents want National Grid to overhaul the region's "antiquated" power plants, Newsday says.

A representative for Assemblyman Marc Alessi said he was concerned Long Islanders were signing on to "subpar service for their hard-earned money" given National Grid's much criticized service record in the Northeast. So what does that mean for Brooklyn?

(History: The Long Island Lighting Co. (LILCO) merged with Brooklyn Union Gas in 1998 to form KeySpan.)

Previous stories about the KeySpan/ National Grid merger here.

British Co. to Take Over Brooklyn-Based Electric Business

Prelude to Merger?

England's National Grid and (Brooklyn and Long Island's) Keyspan have announced an "amended agreement" with the Long Island Power Authority to operate the electricity and power transmission business on Long Island until 2013. This brings us one step closer to the controversial merger of National Grid and Keyspan, expected to go through mid 2007.

Not everyone sees this as a good thing, of course. According to Newsday, legislators and experts who were "already wary of the proposed buyout of KeySpan by National Grid" were unmoved by the news, saying that the $236 million-plus in promised benefits "fall short."

U.S. Senator Charles Schumer said, "I remain skeptical that the merger will benefit ratepayers."

According to Long Island Business News, "The State Department of Public Service issued a 200-page report that slams the proposed merger between KeySpan and National Grid, calling it a bad deal for customers."

For a previous story about the merger, see here.

KeySpan, National Grid Merger One Step Closer

National Grid, a British utility, has agreed to give pay raises to its 3,210 unionized employees across upstate New York in return for union support of the company's contested merger with Brooklyn-based KeySpan Corp., reports the AP via Newsday.

As recently as two months ago, union officials had criticized the KeySpan deal in testimony to state regulators, according to this report.

See here for previous posts about the KeySpan/ National Grid merger.

National Grid Offers Concessions in Pursuit Of Keyspan

But What About the Ducklings?

Bloomberg.com carries an analysis of the moves England's National Grid Plc is making in its bid to win New York State approval for its purchase of KeySpan Corp (once called Brooklyn Union Gas, with headquarters at MetroTech -- and a window full of ducklings every spring).

Among the concessions offered: National Grid says it will share merger savings with natural-gas customers (for three years) and spend $1.4 billion upgrading its Niagara Mohawk utility, blamed for an unusually high number of blackouts. Debt at National Grid would rise $11.4 billion to finance the purchase, an amount that threatens its credit rating unless the state agrees to "unreasonably high rates'' for gas customers, reports Bloomberg.

"Staff's testimony appears to consist largely of a series of speculative assertions about 'worst case' possible outcomes,'' KeySpan Chief Executive Office Robert Catell said in written testimony, adding that the merger will moderate rate hikes that would otherwise hit 11 percent.

The Public Service Commission is expected to rule on the merger this summer.

Update: The Times reports that the former top spokesman of KeySpan claims in a federal lawsuit that he was improperly fired four years ago as punishment for alerting executives to allegations of accounting irregularities involving hundreds of millions of dollars. See story here.

(Duckling photo courtesy of Gamenerd under Creative Commons license.)

National Grid Down One Truck on Brooklyn's Atlantic Ave.

The front of this National Grid truck was totally staved on Monday morning around 8:30 when it ran into the rear of another truck (the MXI truck, shown below) at the intersection of Atlantic Ave. and Bond in Boerum Hill, Brooklyn.

The MXI truck appeared to suffer no particular damage, while the National Grid truck appears to be a total loss. We didn't see the moment of impact, so we're not sure if anyone was hurt -- but no one seemed to be carrying on.

Through the rear window of the National Grid cab, you can read the words "No Rats!"

National Grid used to be KeySpan, which used to be Brooklyn Union Gas.

Previous posts about National Grid/ KeySpan here.

Photos by MK Metz

Go to McBrooklyn's HOME PAGE.

Rock, Paper, Scissors Tournament at KeySpan Park

You know that there's at least one sport you can do: Rock, Paper, Scissors.

On Saturday, September 1st, the Brooklyn Cyclones will hold a "Rock, Paper, Scissors" tournament, with a grand prize of two 2008 Cyclones' season tickets and two round-trip JetBlue domestic airline tickets. The Rock, Paper, Scissors tourney will take place on the field at KeySpan Park, with four finalists advancing to the Cyclones' RPS Final Four, to be held during that night's game against the Staten Island Yankees.

More here.

Photo by Everyskyline, Creative Commons license

KeySpan Cleanup, and More Brooklyn Thursday News

- The state Department of Environmental Conservation and Keyspan have reached an expanded agreement on cleaning up several highly contaminated sites in Brooklyn, including two in Gowanus and one in Williamsburg. The most prominent of the sites is the one known as Public Place in Gowanus. Gowanus Lounge

- The city announced this week a $2 million project to commemorate abolitionist activity in Downtown Brooklyn -- but still plans to raze Duffield Street homes, which may actually have been stops on the Underground Railroad. Brooklyn Eagle

- A Bob Dylan video was shot Tuesday in Williamsburg. Dylan wasn't there, but a look-a-like was there along with "a ton of faux-hippies." Gothamist

- Rapper Foxy Brown has been charged with felony assault for allegedly attacking her Brooklyn neighbor last month. PR Inside

- More Atlantic Yards demolitions, one around the base of the future Miss Brooklyn. Brownstoner

Brooklyn's Bear Stearns' Employees to 'Jump Ship?'

The mood is "basically one of panic,” one of Bear Stearns' 1,500 MetroTech employees told the Brooklyn Eagle Monday. “I’m young, so I don’t care,” he said. “But many of the older guys who have families, I expect many of them to be jumping ship during the next year or so."

One-tenth of Bear Stearns' employees currently work at MetroTech in Downtown Brooklyn.

Bear Stearns was sold to JPMorgan Chase for $2 a share, in a deal brokered by the Federal Reserve Bank. (Bear shares had been as high as $172.61 a share last year.)

Check out the 47-page Merger Agreement and 5-page Guaranty Agreement, as seen on the Bear Stearns Web site Monday. How in the world did they whip that together so fast?

Many Brooklynites aren't aware that the Brooklyn outpost of Bear Stearns is located at 1 MetroTech Center, in a building it shares with National Grid (once called KeySpan, before that called Brooklyn Union Gas).

There's no telling how long Bear Stearns will stay at 1 MetroTech, though legal considerations (such as a lease with landlord Forest City Ratner Companies) may keep them for a while. (Luckily, JPMorgan Chase is just a hop, skip and a jump away, at 3 MetroTech.)

National Grid is giving up a few choice floors in the same building, and that has KeySpan chief executive Robert Catell, now executive chairman of National Grid USA, a bit miffed.

Catell had "expressed a strong desire" to remain in his spellbindingly impressive 23rd floor office, said to be leased for around $1.1 million a month, according to Newsday.

Probably can't expect Bear Stearns to take over the space.

- Former Bear Stearns’ Offices Seen Staying in Brooklyn Brooklyn Eagle
- National Grid's Catell Says Buh-Bye to His Million-a-Month Brooklyn Office

Photo by MK Metz

Italian Heritage Celebrated at Borough Hall with Food, Frenetic Dancing

Thursday night at Brooklyn Borough Hall, BP Marty Markowitz hosted a gala to celebrate Italian-American Heritage Month. The music and dancing filled the Rotunda, and the food, provided by local Italian restaurants, was mouth-watering. There was one dish where the chef dropped hot oiled noodles onto the middle of a huge round of Parmesan cheese. The cheese melted and coated the noodles -- delicious. (I think Marco Polo was the restaurant behind that one.)

The Borough President honored Robert Catell, Chairman of (what used to be called KeySpan) National Grid US; RoseAnn C. Branda, President of the Brooklyn Bar Association; and Lella De Angelis and the Gargiulo Restaurant Family, among others.

A group of traditionally costumed ladies danced the tarantella -- which, according to Wikipedia, is associated with the large "tarantula" spider, whose bite was allegedly deadly and could be cured only by frenetic dancing. One variation of the legend said the dancer must dance the most joyous dance of her life or she would die.

UPDATE: More photos here.

Photos by MK Metz

The Brooklyn Portfolio: Investing in Brooklyn

Isn't this stock market just crazy?

We at McBrooklyn decided we wanted in -- so we're setting up The Brooklyn Portfolio.

The Brooklyn Portfolio includes shares in companies that have a strong Brooklyn presence, started in Brooklyn or have some other significant connection to Brooklyn. We'll carefully screen each company (that might even include looking them up somewhere). We can add a stock (for example, if someone points out a Brooklyn-based company that we didn't know about, and it seems like a good buy), or drop a stock (for example, if it's sinking like a rock thrown into the waters off Coney Island).

Some famous companies which began in Brooklyn (like Cumberland Packing Co., makers of Sweet'N Low) are privately owned so we can't buy their stock. But others, like the drug company Pfizer, producers of Viagra, are fair game.

Every once in a while we'll check how the portfolio is doing. (We might even create a fancy bar chart.) If the portfolio is up, that will be good news for Brooklyn. If it's down we'll cry and pound the table.

Here are our initial stock considerations:

Pfizer (PFE) -- Is a global pharmaceutical company which started in Brooklyn. It was selling for $17.48 yesterday. It's down 1.7% year to date. PE=15.8; yields 3.66*

Dime Community Bancshares, Inc.(DCOM) -- The parent company of The Dime Savings Bank of Williamsburgh. It was selling for $11.59 yesterday, and is down almost 13% year to date. PE= 16.33, and it yields 4.83%.

National Grid (NGG) -- Is an international electricity and gas corporation based in great Britian that bought KeySpan, which started out as Brooklyn Union Gas. Its shares were selling for $49.42 yesterday, down roughly 2% year to date. PE=16.2; yields 7.06

Bristol-Myers Squibb Company (BMY) -- Makes pharmaceuticals and nutritionals. Bristol-Meyers merged with Brooklyn's ER Squibb (as in Squibb Park in Brooklyn Heights). It was selling for $22.69 yesterday. It's down 2.4% year to date. PE=13.24; yields 5.46

Corning Incorporated (GLW) -- Used to be known as Corning Glass. They started as the Brooklyn Flint Glass Works. Now they're big in liquid crystal flat panel displays, fiber optics, ceramics, glass and plastics for scientific applications. It was selling for 15.51 yesterday. It's up 63% year to date. PE=14.84; yields 1.29%

Nathan's Famous (NATH) -- Started at their famous Coney Island hotdog outlet, now they own restaurants and sell doggies nationwide. It was selling for 14.46 yesterday. It's up 14% year to date. PE=16.96; no yield.

That gives us exposure to pharma, financials, industrials, restaurants, and energy. Any other quality investments we've forgotten about?

UPDATE: Suggestions so far include Berkshire Hathaway, which bought Brooklyn's Benjamin Moore paint company; Novartis, which took over Brooklyn's Ex-Lax (which, as our commenter pointed out, has a history on Atlantic Ave. like Benjamin Moore); and Brooklyn Federal Savings Bank. We like all of these companies, but we agree with commenter 1 that Berkshire Hathaway "is a bit rich for our blood." At almost $100,000 a share for the class A shares and $3,292 for the B shares, Berkshire would overwhelm our other holdings.

UPDATE 2: The Brooklyn Portfolio takes shape here.

UPDATE 3: The Brooklyn Portfolio: Fully Funded and Ready for Business


* Yields as reported by Google Finance; may vary

Photo by Don Hankins, Creative Commons license

http://www.flickr.com/photos/23905174@N00/ / CC BY 2.0

Go to McBrooklyn's HOME PAGE.

Cindy Jasmin Talks, and More Brooklyn Briefs

- Cindy Jasmin, a “person of interest” in the investigation of the hit-and-run that left Brooklyn resident Erinn Phelan gravely injured, has met with New York City detectives. Brooklyn Eagle 

- Pratt Station Post Office is closing temporarily. Councilmember Tish James has more details here. 

- Whole Foods has begun cleaning its toxic site along the Gowanus Canal. But that doesn't mean they'll build there. Brooklyn Paper

- This Saturday, February 27th you can join the second annual (Nearly) "Naked” Polar Bear Cruise to benefit the Wildlife Conservation Society. Circle Line

- Lefferts Garden Charter School having a bumpy ride. Hawthorne Street 

- Energy company KeySpan Corp. (once known as Brooklyn Union Gas, now National Grid) has agreed to pay $12 million to settle allegations that it broke antitrust laws that likely led to higher electricity prices in NYC.  Crain's NY

Go to McBrooklyn's HOME PAGE.

Brooklyn Bridge Celebration -- What's On For Saturday

The 125th birthday party for the Brooklyn Bridge continues! Here's what's on for Saturday:

Brooklyn Bridge Film Series: Learn all sorts of information about the bridge from Brooklyn Bridge (1981), a documentary directed by Ken Burns. Seating is limited at this event presented by the Brooklyn Academy of Music. The film begins at 4:30pm; tickets available starting at 1:30pm. Free. (30 Lafayette Avenue, Brooklyn)

Enjoy the views from the foot of the Brooklyn Bridge and sing along to the musical It Happened in Brooklyn (1947), starring Frank Sinatra as a Brooklynite returning home from the war. The feature will be preceded by two short historic films—Panorama from the Tower of the Brooklyn Bridge (1903) and Manhatta (1921). DJs will begin spinning tunes at 6pm; film starts at 8:30pm. This event is free—along with the popcorn. (Empire-Fulton Ferry State Park, enter at Main Street, Brooklyn)

Lecture Series: In honor of the Bridge’s 125th birthday, the Brooklyn Historical Society will host of weekend of lectures and readings at their headquarters (128 Pierrepont Street at Clinton Street, Brooklyn, 718-222-4111) each hour from 1–4pm. Additional lectures will be held at Surrogates Court (31 Chambers Street, Room 209, Manhattan) from 1–3pm. Seating is limited at all readings. For a complete schedule, visit the Official Guide to the Brooklyn Bridge 125th Birthday Celebration. Free.

Brooklyn Bridge Walking Tour: Ron Schweiger, the official historian for Brooklyn, will give a tour of the Brooklyn Bridge at 11am. Call 718-802-3846 for more information. Free. (Meet at Manhattan-side arch of the Brooklyn Bridge)

Brooklyn Icons Mini-Golf: This mini-golf course features some of Brooklyn’s most famous sites, including the Brooklyn Bridge, Grand Army Plaza and the Brooklyn Cyclones’ baseball stadium, KeySpan Park. Golf clubs and balls are provided on-site. This event will be held Saturday and Sunday, 1–5pm. For more information, go to visitbrooklyn.org or call 718-802-3846. Free. (Empire-Fulton Ferry State Park, enter on Main Street, Brooklyn)

The Amazing Telectroscope: If you missed it yesterday, not to worry. The Telectroscope is operating till June 15. Fulton ferry Landing.

The whole weekend's schedule can be found at nycvisit.com.

Photo by MK Metz