The battle over the next gas distribution frontier is continuingin Maine with the Maine Public Utilities Commission (MPUC) grantingBangor Gas Co. unconditional authority to provide gas distributionservice to five municipalities in the greater Bangor area. BangorGas, a joint venture of Bangor Hydro and Energy Pacific, iscompeting for market share in the area with CMP Natural Gas, ajoint venture of Central Maine Power and New York State Electric& Gas. Both projects are intended to provide new gas serviceonce Maritimes and Northeast comes on line in November 1999.

“Yep, there could be two projects serving the same area. Therecould even be three. In March 1997, the Maine PUC granted afranchise in the same area to Mid-Maine Gas. We haven’t seen anysigns of life from them since. But at the time, they requested anexclusive franchise and the PUC said it didn’t have authority todistinguish between exclusive and non-exclusive,” said CMP’s ClarkIrwin.

“It’s conceivable that you might have your lateral heading inone direction picking up a paper mill or a hospital and somebodyelse will have another lateral going in another direction serving adowntown area and some neighborhoods.

“But in reality, it’s commitments of customers [that will decidethe fate of these projects]. CMP has been in discussions with allthe municipalities and has executed confidentiality agreements withseveral large potential customers. Bangor Gas is doing the same.Obviously there’s the question of who will get enough marketsupport to finance the project.”

Bangor Gas said it already is gearing up to begin constructionon its systems this summer. Company officials estimate the cost tobuild and implement the new Bangor Gas system will be $40 million.Meanwhile, CMP Natural is still awaiting final franchise approval.It plans to serve Bangor as well as other cities along the PortlandNatural Gas Transmission System. It is expecting final approval ofits project in the next several weeks.

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