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KeySpan, a major electricity and natural gas provider to New York City and Long Island, announced this week that U.K. company National Grid would acquire it in a $7.3 billion deal, making the resulting conglomerate the third largest energy provider in the United States.

KeySpan owns the Ravenswood power plant in Long Island City and, through a contract with the Long Island Power authority, also operates the distribution and transmission system on the Rockaway Peninsula. The company provides approximately 25 percent of New York City’s electricity and is the state’s larges distributor of natural gas.

The purchase, an all-cash deal, represents National Grid’s fourth U.S. acquisition in the last five years. Keyspan’s addition will nearly double the company’s natural gas resources and significantly add to its presence in the northeast.

“KeySpan is an excellent operational and geographic fit and a natural extension of our business and our strategy,” said Roger Urwin, chief executive of National Grid. “KeySpan is an acquisition which makes sense at every level and we look forward to its completion.”

ConEd, a company that already has a significant local presence, also had been in negotiations to acquire KeySpan, Bloomberg News reported.

Despite the change in ownership, it appears not much will change at KeySpan. National Grid plans to retain Keyspan’s corporate leadership and most of the employee base.

While staff reductions are expected, the total number of jobs that will be impacted is yet to be determined.

Assemblyman Mike Gianaris (D-Astoria) had been working with KeySpan, along with other Queens energy providers, to increase environmental protections at area power plants. He plans to speak with National Grid executives in coming weeks about continuing the environmental dialogue he started with KeySpan.

“It’s important to get assurances that they are community conscious and environmentally friendly as we move forward,” Gianaris said.

Before completing the deal, both companies must obtain shareholder support as well as approvals from state and federal regulatory agencies. Company officials hope the transaction will be completed by early 2007.

KeySpan shares had been rising in recent weeks over speculation that the company would be bought out. After the official announcement Monday morning, the stock dipped 50 cents to $40.91, less than a dollar from its 52-week high. Company officials were quick to portray the acquisition as a win-win situation for shareholders.

“This transaction will deliver significant value to shareholders and customers of both companies,” said Robert Catell, chief executive of

KeySpan. “KeySpan will become an important party of one of the largest and most efficient energy delivery companies in the world, and have access to additional financial resources to invest in our energy infrastructure and growth opportunities.”