To All Bay State Gas Marketers:
On February 1, 1999, the Massachusetts Department of Telecommunications and Energy (“MDTE”) issued an order (the “Order”) addressing, 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 the following changes to its portfolio.
| Changes to the Bay State Gas Portfolio | |||||
| Precedent Agreement | Union Gas | Pipeline | 27,350 | 11/01/06 | 10/31/17 |
| Precedent Agreement | TransCanada Pipeline | Pipeline | 27,350 | 11/01/06 | 10/31/17 |
| Terminated Contract | Husky | Supply | 6,424 | 1/1/00 | 10/31/05 |
Bay State has entered into two precedent agreements in order to purchase gas at the Dawn, Ontario, market hub. From this point, the gas will be transported on the above pipeline contracts to Waddington, New York. At Waddington, the gas will flow on Bay State’s existing Iroquois contract to Bay State’s service territories (via Algonquin Gas Transmission and Tennessee Gas Pipeline).
Bay State’s decision to contract for this capacity is based on the Dawn, Ontario, market hub being a much more liquid trading point for natural gas than Waddington, New York. Purchasing gas at Dawn will allow Bay State to secure supplies at the most competitive price.
Bay State will not renew its contract with Husky Gas when it terminates on October 31, 2005. This contract has an MDQ of 6,424 Dth/day and is received at Niagara, New York, for delivery into Tennessee Gas Pipeline. By terminating this contract, Bay State will now be able to release the associated downstream transportation contracts directly to marketers while eliminating another company managed supply.
Please feel free to contact me at
Sincerely,
Christopher A. Kahl
Analyst
Nisource Energy Supply Services
