The Connecticut Department of Public Utility Control approved afirm transportation agreement between Southern Connecticut Gas, CNEEnergy Services Group and Milford Power that requires Southern toinstall distribution lines and transport 96,000 Dth/d of gas to theproposed 544 MW Milford Power Plant. The electric generatingfacility has a targeted in-service date of February 2001.

The gas facilities include metering and odorization equipmentand a 150-foot, 16-inch steel lateral between the Iroquois GasTransmission System and the delivery point, which connects theMilford Power Plant and the distribution facilities.

The gas facilities will be financed through CNE Energy Services,a subsidiary of Energy East and an affiliate of Southern, whichserves 162,000 customers in the state. As a result, the cost ofconstruction of the facilities will not be included in Southern’srate base, and Southern’s customers will not be responsible for anycost of construction.

“The Agreement is beneficial to Southern’s customers for severalreasons,” said Southern President Sal A. Ardigliano. “Southern andits customers will realize a stable revenue stream from a firmtransportation customer at virtually no risk because there will beno capital costs incurred by Southern. In addition, the revenuestream also will offset a portion of Southern’s system-wide fixedcosts that otherwise would be borne by other firm customers.”

Milford Power is a joint venture between El Paso Energy andPower Development Co. of Boston.

Rocco Canonica

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