Prospectus Supplement Filing Under
Dated: October 8, 1997 Rules 424(b)(3) and 424(c)
To Prospectus dated May 31, 1996
Registration
File No.
333-04863
KEYSPAN ENERGY CORPORATION
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EMPLOYEE SAVINGS PLAN
Effective immediately following the close of business on September 29,
1997, KeySpan Energy Corporation ("KeySpan") became the parent holding company
of The Brooklyn Union Gas Company ("Brooklyn Union") pursuant to a mandatory
exchange of shares which was approved by Brooklyn Union common shareholders at
Brooklyn Union's Special Meeting held on August 7, 1997. As a result, holders of
Brooklyn Union common stock, including holders of Brooklyn Union common stock
under the Employee Savings Plan, have become holders of KeySpan common stock on
a one share-for-one share basis. KeySpan common stock, par value $.33 1/3 per
share, is listed on the New York Stock Exchange and trades under the symbol
"KSE".
As of the effective date, The Brooklyn Union Gas Company Employee
Savings Plan was assumed by KeySpan as successor to Brooklyn Union, and is now
the "KeySpan Energy Corporation Employee Savings Plan". The Plan will be
administered in the same manner as previously administered under Brooklyn Union.
In terms of the Prospectus, dated May 31, 1996, relating to the
Employee Savings Plan:
- References to the "Company" should be read to mean KeySpan rather than
Brooklyn Union, unless the context otherwise requires.
- References to the "Common Stock" should be read to mean the common
stock of KeySpan rather than the common stock of Brooklyn Union.
- Referring to pages 24-25 under "Description of Common Stock" and
"Legal Opinions" in the Prospectus, the statements thereunder with
respect to Brooklyn Union common stock continue to be the case with
respect to KeySpan common stock, except that KeySpan currently has no
outstanding preferred stock. It should also be noted that, at least
initially, dividends on KeySpan common stock will depend upon
dividends paid by Brooklyn Union on its common stock owned by KeySpan.
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Any questions regarding the KeySpan Energy Corporation Employee
Savings Plan should be directed to a KeySpan representative at (718) 403-3196.
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This Prospectus Supplement should be affixed to your copy of the
Prospectus dated May 31, 1996.
