"We are fundamentally not recovering our costs with Niagara Mohawk," he said.

King said National Grid will continue to invest in maintenance of its lines in the region, but it won't make major capital investments to replace the aging infrastructure because of the state funding restrictions.

"We will not go beyond what the commission is funding," he said, adding that service to customers will not be negatively impacted by the changes.

Asked if National Grid would try to sell the unprofitable Niagara Mohawk unit, King said the company is committed to staying in the U.S., and that New York represents about 60 percent of its domestic business.

He noted that one of the five presidents named under the coinciding leadership shuffle, Ken Daly, will be dedicated to New York.

In addition to job cuts, National Grid is reorganizing its leadership to emphasize regional oversight after four years with a more global focus.

National Grid has named five new regional presidents who will report to King and be responsible for all aspects of operation in their territories. The goal is to improve responsiveness, not only in operations but with customers and regulators.