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 potential changes to its portfolio.
| Potential Changes to the Bay State Gas Portfolio | ||||||
| Potential Contract | DTE Energy | Storage | 25,500 | 04/01/06 | 03/31/16 | |
| Potential Contract | Vector Pipeline | Pipeline | 25,500 | 04/01/06 | 03/31/16 | |
On October 31, 2005, the MDTE approved Bay State’s contracts with Union Gas and TransCanada Pipelines. These contracts allow Bay State direct access to more diverse and economic supplies at the Dawn, Ontario market hub with the potential to access the Chicago hub through Vector Pipeline. In addition, the approved capacity provides Bay State with increased access to underground storage opportunities through Union Gas and DTE Energy. Storage gas in this region can be transported a short distance to Dawn where it can then flow on the Union and TranCanada PipeLine contracts to Waddington, New York. At Waddington, gas flows on Bay State’s existing Iroquois contract to Bay State’s service territories (via Algonquin Gas Transmission and Tennessee Gas Pipeline).
In an effort to strengthen the reliability, flexibility and diversity of its portfolio, Bay State is currently considering obtaining a storage service from DTE Energy along with associated pipeline transportation from Vector Pipeline. These resources would allow Bay State to acquire storage capacity in Michigan, and transport storage gas to Dawn, Ontario where it would then be transported to Bay State on the Company’s existing contracts (including those listed above). The Vector Pipeline, in addition to moving storage gas, will also allow Bay State direct access to the cost effective Chicago market. Overall, these resources will allow Bay State to increase the amount of storage in its portfolio and allow greater flexibility in acquiring supplies at the lowest cost.
Please feel free to contact me at
Sincerely,
Christopher A. Kahl
Analyst
Nisource Energy Supply Services
