File No. 70-9089

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

POST-EFFECTIVE AMENDMENT NO.  7

TO

FORM U-1

APPLICATION/DECLARATION

UNDER

THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

(the Act)

GRANITE STATE ELECTRIC COMPANY (Granite)
MASSACHUSETTS ELECTRIC COMPANY (Mass Electric)
NANTUCKET ELECTRIC COMPANY (Nantucket)
THE NARRAGANSETT ELECTRIC COMPANY (Narragansett)
NEW ENGLAND ELECTRIC TRANSMISSION CORPORATION (NEET)
NEW ENGLAND ENERGY INCORPORATED (NEEI)
NEW ENGLAND HYDRO-TRANSMISSION ELECTRIC COMPANY, INC.(Mass Hydro)
NEW ENGLAND HYDRO-TRANSMISSION CORPORATION (NH Hydro)
NEW ENGLAND POWER COMPANY (Power Company)
NATIONAL GRID USA SERVICE COMPANY, INC. (Service Company)

and

NATIONAL GRID USA (National Grid USA)

(Names of companies filing this statement)

25 Research Drive, Westborough, Massachusetts 01582
407 Miracle Mile, Suite 1, Lebanon, NH 03766 (Granite)
25 Fairgrounds Road, Nantucket, MA 02554 (Nantucket)
280 Melrose Street, Providence, RI 02901 (Narragansett)

(Addresses of principal executive offices)

NATIONAL GRID GROUP plc

(Name of top registered holding company parent
of the participating companies herein)

John G. Cochrane     Kirk L. Ramsauer
Vice President and Treasurer     Deputy General Counsel
National Grid USA     National Grid USA
25 Research Drive     25 Research Drive
Westborough, Massachusetts 01582     Westborough, Massachusetts 01582

(Names and addresses of agents for service)

     Form U-1 Application/Declaration dated August 18, 1997 (Commission's File
No. 70-9089), which became effective by Order of the Commission dated October
29, 1997 (HCAR No. 26768), was amended by Post-Effective Amendment  Nos. 1 and
2 and, as amended, became effective by Order of the Commission dated June 2,
1998 (HCAR No. 26881), and was amended by Post-Effective Amendments No. 3, 4,
5, and 6, and is hereby further amended by this Post-
Effective Amendment No. 7 as follows:

Item 1.  Description of Proposed Transactions, as described in Post-Effective
Amendment No. 3  is hereby amended to read as follows:

Introduction
- -------------

     By Orders of the Commission dated October 29, 1997 (HCAR No. 26768) and
June 2, 1998 (HCAR No. 26881) in File No. 70-9089, certain subsidiaries of the
New England Electric System (NEES) (now, National Grid USA) were authorized to
enter into short-term borrowing arrangements through October 31, 2001.

     By Order of the Commission dated March 15, 2000 (HCAR No. 27154) in File
Nos. 70-9473 and 70-9519 (the March Order), the existing financing authority
was extended through May 31, 2003, and the addition as lenders to the Money
Pool of Intermediate Companies (as defined in the Order) and all other newly
formed or acquired or nonparticipating National Grid USA subsidiaries was
authorized.  (The March Order also authorized the acquisition of NEES by
National Grid plc.)

     By Orders of the Commission dated April 15, 1997 (HCAR No. 26704) and
March 20, 1998 (HCAR No. 26875) in File No. 70-8955, Eastern Utilities
Associates (EUA) and certain of its subsidiaries were authorized to enter into
certain borrowing arrangements through July 31, 2002.

     On April 19, 2000, pursuant to order of the Commission dated April 14,
2000 (HCAR No. 27166) in File No. 70-9537, EUA was merged into National Grid
USA.  On May 1, 2000, certain EUA subsidiaries were merged into certain
National Grid USA subsidiaries, as follows:




     EUA Company     National Grid USA Company

     

     Blackstone Valley Electric     Narragansett
     Company (Blackstone)

     Eastern Edison Company (Eastern)     Mass. Electric

     EUA Service Corporation (EUA Service)     Service Company

     Montaup Electric Company (Montaup)     Power Company

     Newport Electric Corporation     Narragansett
     (Newport)



The companies believe the short term borrowing authority of these EUA
companies granted in File No. 70-8955 terminated upon completion of these
mergers.

     On April 28, 2000, the Service Company filed an Application/Declaration
in File No. 70-9673 proposing, among other things, to restructure its
capitalization to reduce its equity capital by approximately $12 million.  The
recapitalization was effected on February 1, 2001, pursuant to Order of the
Commission dated January 5, 2001 (HCAR No. 27333).

     The below-listed companies now seek to amend their borrowing authority to
reflect their current corporate structures and cash requirements.

Borrowing Limits
- -----------------

     On May 1, 2000, the EUA operating companies and service company were
consolidated into the National Grid USA companies listed below.  As a result
of this consolidation, the existing borrowing authorities for the surviving
National Grid USA companies need to be increased.  This will cover their
expanded requirements following consolidation.  The companies propose to
adjust their maximum outstanding amounts as shown below:




     Borrowing Company     Borrowing Authority


          Old     Requested

     Mass. Electric     $150,000,000     $275,000,000
        (Eastern Edison)     $ 75,000,000

     Nantucket     $  5,000,000     $  6,000,000

     Narragansett     $100,000,000     $145,000,000
        (Blackstone)     $ 20,000,000
        (Newport)     $ 25,000,000

     Service Company       $ 12,000,000     $ 60,000,000
        (EUA Service)     $ 15,000,000



     As a result of the consolidation of Eastern Edison into Mass. Electric,
Mass. Electric's peak borrowing during May was very close to its borrowing
limit.  Furthermore, Mass. Electric has experienced a significant lag in the
recovery of its standard offer and default service costs.  At December 31,
2000, unrecovered standard offer and default service costs were approximately
$130 million.  These deferrals are expected to exceed $200 million by the
middle of the year 2001.  This money would be recovered over time, but, until
then, would obviously put significant pressure on Mass. Electric's short-term
borrowing capacity.  Based upon this potential cash requirement and upon the
previously existing borrowing authorizations, Mass. Electric is proposing that
its borrowing limit be increased to $275 million to cover peak borrowings.


     Nantucket is proposing that its borrowing limit be increased to $6
million to provide additional flexibility to cover peak borrowings.  During
the third quarter of 1999, Nantucket's peak borrowing was almost $5 million.

     As shown, the borrowing level for Narragansett reflects the previous
authority granted its component parts.

     Immediately prior to the merger with the Service Company, EUA Service
paid off $4 million of its existing 10.2% debt.  In 1994, the then NEES
Companies established a Rabbi Trust to provide additional security to
participants in certain executive benefit programs.  A rabbi trust provides
participants in nonqualified benefit plans protections similar to those of
qualified pension plan trusts, except the assets remain available to company
creditors, and is used by many, if not most, large employers.  The Rabbi Trust
is, therefore, necessary to obtain and retain company executives.  As a result
of benefits triggered by the merger of NEES and The National Grid Group plc,
the Service Company has transferred an additional $8 million into the Trust.
The Service Company has also made other compensation payments to executives as
a result of the National Grid USA merger and the acquisition of EUA. The
Service Company expects to undertake significant computer enhancements in
connection with the proposed merger between National Grid Group plc and
Niagara Mohawk Holdings, Inc. (File No. 70-9849).  The preliminary estimate of
the cost of consolidating the systems, including general ledger and other
operational systems, is in the neighborhood of $20 million.  After completion
of the project, the expenditures will be funded through a lease agreement;
however, prior thereto, the outlays will put pressure on the borrowing limits
of the Service Company.  Finally, as described above, the Service Company
reduced its equity capital by over $12 million.  Based upon these potential
cash demands and upon the previously existing borrowing authorizations, the
Service Company is proposing that its borrowing limit be increased to $60
million.

     No increase in borrowing authority is requested for the other Borrowing
Companies.  No extension of the effective term of the borrowing authority
beyond May 31, 2003, as provided in File No. 70-9519 is requested.

Sale of Commercial Paper to Dealers
- -----------------------------------

     Mass. Electric, Narragansett, and the Power Company (the CP Issuers)
propose to issue and sell commercial paper directly to one or more nationally
recognized commercial paper dealers (CP Dealer).  The CP Programs for Mass.
Electric and Narragansett are not now active.  Currently, the CP Dealer for
the Power Company is Merrill Lynch Money Markets Incorporated, but this may
change as warranted.

     The commercial paper so issued and sold will satisfy the requirements of
Section 3(a)(3) of the Securities Act of 1933 and be in the form of unsecured
promissory notes having varying maturities of not more than 270 days.  Actual
maturities will be determined by market conditions, the effective interest
cost to the issuer, and the issuer's cash requirements at the time of
issuance.  The commercial paper will be in denominations of not less than
$50,000.  The terms of the commercial paper will not provide for prepayment
prior to maturity.  The commercial paper will be purchased by the CP Dealer
from the issuer at a discount which will not be in excess of the discount then
prevailing for commercial paper of comparable quality and maturity which is
sold by public utility issuers to commercial paper dealers.  The CP Dealer

will initially reoffer the commercial paper at a discount rate not more than
1/8 of 1% per annum less than the prevailing discount rate to the issuer.

     The effective interest cost to the issuer of commercial paper will
generally not exceed the effective interest cost of the base lending rate at
Fleet/Boston (formerly BankBoston).  However, the effective interest cost of
such paper is based on the supply of, and demand for, similar paper at the
time of sale.  Specifically, on several previous occasions short-term money
markets have become very volatile during brief periods of extraordinary
demand, and the interest costs of commercial paper have exceeded bank base
rates.  Bank borrowing agreements, under which the CP Issuers must borrow as
an alternative to selling commercial paper, generally provide that the
interest rate of such borrowings shall be the then current money market rate.
Although under the described circumstances the interest cost of commercial
paper may exceed the bank base rate, it may still be less than the alternative
money market rates at which the CP Issuers would otherwise then be forced to
borrow.  Likewise, the CP Issuers may be able to negotiate a shorter borrowing
period in the commercial paper market than from banks.  Because such volatile
market conditions usually exist for brief periods, it is not anticipated that
any sale of commercial paper with interest costs in excess of bank base rates
would have a significant marginal impact on the annual interest cost of the CP
Issuers.

     The CP Issuers will issue commercial paper or borrow from banks if there
are not sufficient surplus funds available from the Money Pool to meet their
needs.  The decision to borrow from banks or issue commercial paper will be
based on the cost of such funds and their availability for the anticipated
borrowing period.

Borrowings from and Loans to the Money Pool
- --------------------------------------------

     The Borrowing Companies propose to reduce their need for outside
borrowing through the continued use of the Money Pool.  Under the Money Pool,
surplus funds that may be available from day to day in the treasuries of the
Participating Companies are used to make loans to the Borrowing Companies in
need of short-term funds.  The CP Issuers will pay interest at a rate equal to
the rated monthly average of the rates of their individual outstanding
commercial paper.  For periods when a CP Issuer does not have outstanding
commercial paper, its rate will be the monthly average of the rate for high
grade 30-day commercial paper as published in the Wall Street Journal.  The
rate for all other borrowing will be 108% of the monthly average of the rate
for high grade 30-day commercial paper sold through dealers by major
corporations as published in the Wall Street Journal.  Although there are no
stated maturities, the loans made by the Money Pool are payable on demand, and
may be prepaid by the borrower without penalty.  Borrowings may, but need not
be, evidenced by notes.  Borrowings will be available first to the wholly
owned subsidiaries of National Grid USA (The Group I Borrowers).  Thereafter,
if the Money Pool still has additional funds, these will be available to the
non-wholly owned subsidiaries of National Grid USA participating in the pool
(the Group II Borrowers) before external investments are made.  All funds
borrowed by the Group II Borrowers will be used for their own internal
financing and will not be loaned to stockholders.  Each of the companies
listed on the cover hereof, including National Grid USA, (the Participating
Companies) has been granted authority to lend money in the Money Pool under
the current terms thereof.  As noted under "Introduction" above, all National
Grid USA subsidiaries, including former EUA companies, are authorized to
participate in the Money Pool.

     Each member determines each day, on the basis of cash flow projections,
the amount of surplus funds it has available for investment in the Money
Pool.  The surplus funds are transferred to a Service Company account.  The
Service Company administers and maintains, as agent, the Money Pool for the
member companies.

     The current terms of the Money Pool are unchanged (authorized in
Commission's File No. 70-8675 and shown in Exhibit G thereto).

Borrowings from Banks
- ----------------------

     The proposed borrowings by the Borrowing Companies from banks will be
evidenced by notes maturing in less than one year from the date of issuance.
The Borrowing Companies will negotiate with the banks the interest costs of
such borrowings.  The Borrowing Companies maintain lines of credit for limited
amounts with banks.  In connection with these lines, the Borrowing Companies
pay commitment fees in lieu of compensating balances.  The effective
interest cost of borrowings from a bank will not exceed the greater of the
bank's base or prime lending rate, or the rate published in the Wall Street
Journal as the high federal funds rate, plus, in either case, one percent.
Based on the current base lending rate of 8.5% and an equivalent or lower high
federal funds rate, the effective interest costs of such a borrowing today
would not exceed 9.5% per annum.

     Certain of such borrowings may be without prepayment privileges.  Payment
of any short-term promissory notes prior to maturity will be made on the basis
most favorable to the Borrowing Companies, taking into account fixed
maturities, interest rates, and any other relevant financial considerations.

     The Borrowing Companies have made arrangements with certain banks for
lines of credit, for various purposes, including support of commercial paper.

Direct Loans by National Grid USA
- ----------------------------------

     The Service Company and National Grid USA further seek authorization for
the option of meeting the Service Company's borrowing requirements by direct
loans from National Grid USA to the Service Company.  As previously agreed to
with the Commission staff in connection with the Staff's audit of the Service
Company, such loans would be at the rate equal to the prime rate for
Fleet/Boston less 1%.  Based on the current prime rate of 9.5%, the effective
interest costs of such borrowings would be 8.5%.  Although there will be no
stated maturities, such borrowings may be prepaid by the Service Company
without penalty.  The borrowings may, but need not, be evidenced by notes.

Filing of Certificates of Notification
- ---------------------------------------------

     Within 45 days after the end of each calendar quarter, the Participating
Companies will file a certificate of notification covering the transactions
effected pursuant to the authority requested herein during such quarter.  Such
certificate will show the names of the borrowers, and for each borrower, the
dates and amounts of all new money borrowings, whether by issuance of notes to
banks, or by sale of commercial paper (including money borrowed from banks to
pay the Money Pool or CP Dealers, or borrowed from the Money Pool to pay banks

or CP Dealers, or borrowed by sale of commercial paper to pay the Money Pool
or banks), the names of the lenders, the maximum concurrent amount of notes
outstanding to banks, the Money Pool and CP Dealers, the aggregate total
outstanding at any one time, and the aggregate total outstanding at the end of
such quarter.  Each certificate will include, with respect to the issue and
sale of commercial paper, the effective interest cost for such promissory note
issued as commercial paper.  The final certificate of notification will be
accompanied by the required past tense opinion of counsel.

Rule 54 Analysis
- -----------------

     Under Rule 54, the Commission may not consider the effect of the
capitalization or earnings of any subsidiary which is an exempt wholesale
generator (EWG) or foreign utility company (FUCO) upon the registered holding
company system "if Rules 53(a), (b) and (c) are satisfied."  National Grid
Group plc currently meets all of the conditions of Rule 53(a), except for
clauses (1) and (2)./fn1/  Due to the level of National Grid Group plc's
aggregate investment in EWGs and FUCOs and the lack of U.S. GAAP books and
records for its FUCO investments, National Grid Group plc cannot comply with
Rule 53(a) and consequently, it must demonstrate that it complies with Rule
53(c).

     National Grid Group plc's aggregate investment, as defined in Rule 53
(a), in EWGs and FUCOs as of September 30, 2000, was $4,034,303,800.  As of
September 30, 2000, National Grid Group plc's consolidated retained earnings
calculated in accordance with U.S. GAAP was $3,296,256,000.  Consequently,
National Grid Group plc's aggregate investment in EWGs and FUCOs as a
percentage of its consolidated retained earnings was 122% as of September 30,
2000./fn2/  In the Commission's March Order, National Grid Group plc was
authorized to invest $3,532 million plus up to 50% of its retained earnings in
EWGs and FUCOs.

     The Applicants also note that none of the conditions described in
paragraph (b) of Rule 53 is applicable.  Specifically, (1) there has been no
bankruptcy of any National Grid Group plc associate company in which a plan of
reorganization has not been confirmed, (2) the average consolidated retained
earnings for the two most recent semiannual periods has not decreased by 10
percent from the average for the previous two semiannual periods, and (3) in
the past fiscal year, National Grid Group plc has not reported operating
losses attributable to its direct or indirect investments in EWGs and FUCOs.
Indeed, National Grid Group plc's interests in EWGs and FUCOs have contributed
positively to its consolidated earnings during the period since the March
Order.

____________________

     1 As the Commission noted in the March Order, National Grid Group plc has
preexisting foreign operations and cannot at this time commit to maintain the
books and records of these interests in conformity with U.S. GAAP.  National
Grid Group plc will, however, comply full with the substantive provisions of
Rule 53.

     2 National Grid Group plc's consolidated capitalization was 33.5% common
stock and 66.5% debt as of September 30, 2000.  National Grid USA's
consolidated capitalization was 65% common stock (net of good will), 2%
preferred stock, and 33% debt as of September 30, 2000.

     National Grid Group plc is in full compliance with the conditions of Rule
53 (c).  Under Rule (c), "[a]n applicant that is unable to satisfy the
requirements of paragraphs (a) and (b) of this section must affirmatively
demonstrate that the proposed issue and sale of a security to finance the
acquisition of an exempt wholesale generator, or the guarantee of a security
of an exempt wholesale generator (1) will not have a substantial adverse
impact upon the financial integrity of the registered holding company system;
and (2) will not have an adverse impact on any utility subsidiary of the
registered holding company, or its customers, or on the ability of state
commissions to protect such subsidiary or customers."

     The action requested in the instant filing will not have an adverse
effect on the financial integrity of National Grid Group plc system, or an
adverse impact on National Grid Group plc's public-utility subsidiaries, their
customers, or the ability of State commissions to protect such public-utility
customers.

     The lack of any adverse effect associated with National Grid Group plc's
current financing plan was fully demonstrated in National Grid Group plc's
Application in File No. 70-9519 and confirmed by the Commission in its March
Order.  The financing transactions proposed in the instant filing do not
require a different conclusion.  The March Order notes that in its application
National Grid Group plc demonstrated (1) that it had an investment grade
credit rating, (2) a history of positive contributions to earnings from
National Grid Company (the most significant part of National Grid Group plc's
FUCO operations),  (3) that the application contained various commitments by
National Grid Group plc to maintain its financial strength, and (4) that the
public utility subsidiaries in National Grid Group plc system were insulated
from the direct effects of the EWG and FUCO investments.  Lastly, the
application noted that National Grid Group plc has demonstrated expertise and
sound management skills with respect to its operation of the high voltage
system in England and Wales and that its project review procedures are
stringent.  Based on all these factors, the Commission found in the March
Order that "National Grid Group plc has made the requisite showing under rule
53 (c)."/fn3/

     Given National Grid Group plc's continued compliance with the terms of
the March Order, the Commission should find the terms of Rule 54 satisfied.










     3 March Order at 64

SIGNATURES

   Pursuant to the requirements of the Public Utility Holding Company Act of
1935, each undersigned company has duly caused this Post-Effective Amendment
No. 7, Commission's File No. 70-9089, to be signed on its behalf by the
undersigned officers thereunto duly authorized.

     NATIONAL GRID USA
     NATIONAL GRID USA SERVICE COMPANY, INC.
     NEW ENGLAND ELECTRIC TRANSMISSION CORPORATION
     NEW ENGLAND ENERGY INCORPORATED
     NEW ENGLAND HYDRO-TRANSMISSION CORPORATION
NEW ENGLAND HYDRO-TRANSMISSION ELECTRIC COMPANY, INC.
     NEW ENGLAND POWER COMPANY


          s/ John G. Cochrane
     By ______________________________
          John G. Cochrane
          Treasurer



     GRANITE STATE ELECTRIC COMPANY
     MASSACHUSETTS ELECTRIC COMPANY
     NANTUCKET ELECTRIC COMPANY
     THE NARRAGANSETT ELECTRIC COMPANY


          s/ Nancy B. Kellogg
     By _______________________________
          Nancy B. Kellogg
          Assistant Treasurer




Date: April 24, 2001