CMP Natural Gas, a joint venture between Energy East Corp.(formerly NYSEG) and Central Maine Power Group, started servingcustomers in Windham, ME, last week, giving CMP Natural a bigadvantage over Bangor Gas, the other company vying to distributegas in the state.

Although CMP Natural is only serving Windham presently, it plansto expand distribution to 35 cities and towns within the Bethel,greater Bangor, Waterville and Augusta, as well as the Falmouth andBath coastal communities before the end of the year. None of thesecities or towns previously had a gas distribution-system in place.

The company is buying gas from companies with capacity onPortland Natural Gas Transmission System pipeline (PNGTS). TimKelley, a CMP spokesman, said the company is in negotiations withPNGTS to purchase its own capacity on the line. He added theMaritimes pipeline, which begins service next year, will bolsterCMP’s expansion efforts.

Kelley said CMP hopes to sign up “several hundred thousand”customers but could not forecast annual gas demand on the system.

The announcement is a setback for Bangor Gas, a joint venturebetween Bangor Hydro and Sempra Energy. Bangor has plans toimplement a competing distribution program, but Denise King, aspokesperson for the company, said service will not begin until theMaritimes pipeline goes into service. King added that Bangor isstill confident about its chances. “They [CMP Natural] say they’regoing to distribute in Bangor, but we’re the ones who already havepipe in the ground.”

John Norris

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