NATIONAL Grid Group, owner of Britain's electricity transmission network, became the latest UK company to enter the American utility fray by declaring yesterday that it was looking for a US acquisition likely to be worth more than #1000m.

The US is in the process of dismantling its regional electricity monopolies to form a competitive, large-scale power generating industry. As this process has gained pace during the past nine months, National Grid has grown increasingly interested in the markets emerging there.

The group joins British Energy, which is looking in the US and Canada, and state-owned British Nuclear Fuels, whose consortium is reportedly in the running for the Westinghouse nuclear business.

''We are looking at a number of regions, but we are at the first stages of that,'' chief executive David Jones said. ''We have weighed up the pros and cons of various regions, and we have also looked at specific companies.''

The group has initiated ''very early-stage'' discussions, but is months away from detailed negotiations. Jones refused to identify which companies or geographical areas might head up a list of targets.

These overseas intentions were revealed in conjunction with National Grid's year-end results. Profits for the year to March 31, before tax and exceptionals, fell 21% to #467.7m.

The decline followed the introduction of price cuts imposed by electricity regulator OFFER in 1996. The group said this 20% reduction in revenues dealt a #56m blow to its bottom line.

The effects of this price restructuring were mitigated by a 14% reduction in controllable transmission costs. The profit figure also excluded a one-off gain of #107.1m from the flotation of nearly 26% of National Grid's Energis telecoms business.

Jones pointed out that the group's remaining 74.3% stake is now worth #1900m, compared to #600m at flotation on December 9. There are no plans to further run down this share holding, he added.

''We certainly wouldn't be contemplating selling the Energis stake to finance (a US acquisition),'' Jones said. ''It's very difficult to say in the absence of a deal on the table, but we would most likely handle it by taking on debt.''

Unlike other potential expansion opportunities in countries such as India, Brazil and Australia, National Grid is not looking for a partner in the US. However, the strategy in all of these areas is to help overcome flat earnings growth in the UK.

''The important thing is looking forward as to where is the value stream going to come beyond this current (three-year) price control period,'' Jones said. ''And that, in one word, is summed up as

'international'.''

The group's final dividend is 7.24p for a yearly total of 12.07p. Shares in National Grid closed up 15p at 387p.

FACT FILE

Final19981997

Turnover#1519m#1369m

Pre-tax profit #467.7m #591.4m

EPS19.8p24.3p

Dividend12.07p11.13p