To All Bay State Gas Marketers:
On February 1, 1999, the Massachusetts Department of Telecommunications and Energy ("MDTE") issued an order (the "Order") adddressing, among other things, issues relating to the contract renewal and supply planning process of the local distribution companies. In the spirit of that Order, Bay State Gas Company ("Bay State") has listed below its decisions with regard to two contracts due to expire on March 31, 2003 and which require at least 1 year advance notice. Consistent with its Long-Range Forecast and Supply Plan, which was reviewed in a public hearing before the MDTE in March, 1999, Bay State has decided not to renew the contracts listed below.
| Contracts Terminating March 31, 2003 | ||||
| Dominion | 100009 | FTNN | 03/31/03 | One Year |
| National Fuel | E00516 | EFT | 03/31/03 | One Year |
In addition, Bay State has listed below its decisions with regard to two contracts due to expire on January 14, 2003 and also requiring at least 1 year advance notice. Consistent with its Long-Range Forecast and Supply Plan, Bay State has decided to renew these contracts. One of these contracts (no. 2069) will be converted from rate schedule CGT-NE (part 157) to rate schedule FT-A (part 284). This will reduce the monthly per unit demand cost from $16.96 to $4.93. Also, effective April 1, 2003, the capacity paths corresponding to these contracts (path Nos. 17 & 18) will no longer be company managed and, therefore, directly released to all assigned marketers.
| Tennessee | 2069 | CGT-NE | FT-A | 1/14/03 | 3/31/05 | One Year |
| Tennessee | 5291 | FT-A | FT-A | 1/14/03 | 3/31/05 | One Year |
With regard to the supply planning process, Bay State Gas has determined that its Brockton service territory will need additional pipeline capacity commencing in the winter of 2003-2004. Bay State is considering contracting for 15,000 to 20,000 Dth/day of pipeline capacity from Duke Energy’s Hub Line Project, which interconnects with the Maritimes Phase III project and the existing Algonquin pipeline. Bay State is in the initial stages of the planning process and welcomes any comments.
Please feel ree to contact me with any questions you may have at
Sincerely,
Christopher A. Kahl
