National Grid to reorganize, cut 1,200 jobs

National Grid U.S. said Monday that it would restructure U.S. operations along regional lines, eliminating 1,200 jobs and saving $200 million -- though it doesn't expect savings to result in lower bills anytime soon.

National Grid U.S. president Tom King said the moves, which will take effect in April, won't impact service at its gas and electric operations in the region but will make it a "leaner, quicker, more responsive company."

In an interview, King said it was too early to say how many of the 1,200 jobs would come from Long Island. Unionized workers will not be impacted, National Grid said, nor will any employees who work under its contract with the Long Island Power Authority.

National Grid has 17,000 U.S. employees, with just over 4,100 management and union workers on Long Island. Around 1,100 are directly dedicated to LIPA, the company said. LIPA chief operating officer Michael Hervey said the authority had been apprised of the restructuring in advance and "assured . . . that the same level of personnel and resources dedicated to LIPA" under its contract would stay in place.

"This will put us in a much better position to deliver on local expectations," King said. Also, former senior vice president John Bruckner was named president of Long Island electric operations to oversee work for LIPA.

King said restructuring would help the company focus on its contract to manage the local electric grid - a contract that expires at the end of 2013, and which LIPA last year put out to bid. National Grid owns 17 local plants. LIPA recently issued a request for proposals to add or displace some 2,500 megawatts of power on the Island, a plan that could see some plants overhauled and others retired.

Despite National Grid's promise of greater efficiencies, some questioned the potential impact of the restructuring.

"Will Suffolk's ratepayers see a corresponding rate decrease in line with National Grid's spending cuts?" said Legis. Wayne R. Horsley (D-Babylon).

National Grid spokesman Alberto Bianchetti said current rate structures don't permit cuts in the short term, though he expects future "benefits" for customers.