The ratings for KeySpan Energy Delivery-Long Island (KED Long Island) reflect the company's low-risk business profile and solid financial condition. KED Long Island's business profile is supported by strong state regulatory treatment, a solid gas supply portfolio, a significant base of firm customers (more than 90% of margins), above-average sales growth, improving operations, and regional infrastructure limitations that mitigate the threat of bypass in a competitive environment. These strengths are somewhat tempered by minimal economic growth in the service territory, rates which exceed the U.S. national average for gas distributors, and are high compared with neighboring gas utilities. KED Long Island also faces competition from other sources of fuel. KED Long Island's strong regulatory environment is a function of the
