CLF, NEW ENGLAND ELECTRIC AND INDEPENDENT POWER PRODUCERS FILE JOINT BLUEPRINT FOR ELECTRICITY COMPETITION IN MASSACHUSETTS.

WESTBOROUGH, Mass.--(BUSINESS WIRE)--April 3, 1995-- A major electric utility, two independent power producer trade organizations, and the region's leading environmental organization have filed with Massachusetts regulators a proposed set of principles to promote increasing competition in a restructured state electric industry.

Seeking to avoid the logjam that has stymied similar efforts in California and elsewhere, the proposal calls for allowing customers to choose their electric supplier; allowing utilities to recover the cost of power plants and other facilities which were built in the past to serve customer demand; and for clean-up of older coal and oil power plants toward the more stringent standards met by new plants; along with provisions for utilities to continue to invest in energy conservation and renewable energy programs.

"This agreement upon a set of principles for increasing competition responds to the Massachusetts Department of Public Utilities' Investigation into Electric Utility Restructuring. If implemented, these principles will help accomplish the most fundamental change in the electricity business in 100 years," said John W. Rowe, President and Chief Executive Officer of New England Electric System, one of the sponsors of the proposal. "Over time, our proposal will allow customers to shop for their source of power, much as they do today for long-distance telephone service. We propose to do this while honoring the utilities' past commitments to serve demand, and ensuring that the new system is environmentally cleaner than before."

"The electric industry has an enormous impact on the state and region's public health, air, land and water," said Douglas I. Foy, Executive Director of the Conservation Law Foundation, another sponsor of the plan. "This proposal would allow competition in the industry to proceed while ensuring continued environmental clean-up through reduced emissions at existing plants, investments in improving energy efficiency, and the development and deployment of clean energy sources such as wind, biomass, solar, and fuel cells."

Also sponsoring the plan, and representing the independent power industry, which would compete with existing utilities to sell electricity under the plan, are the New England Cogeneration Association (NECA) and the Coalition Of Non-Utility Generators (CONUG). Peter Brown, President of NECA, stated: "This plan offers a way to move toward real competition for electricity. It holds out the promise of a significantly more efficient electric industry to the benefit of Massachusetts consumers and their economy. We look forward to working with Mass Electric, CLF and the DPU in the transition to robust competition."

The three-party blueprint was submitted to the Department of Public Utilities (DPU) in a DPU investigation now under way regarding ways to restructure the state's electric industry to introduce more competition. If approved by the DPU, the blueprint would serve as the basis for more detailed negotiations among utilities, independent power producers, consumers, environmental advocates, regulators and other interested parties.

CLF is the nation's oldest environmental law organization. New England Electric is the region's second-largest electric utility system. NECA is the region's largest trade association representing the electric power industry's competitive sector. CONUG is a trade organization representing New England non-utility generators.

CONTACT: Mary Akylas, NEES, 508/366-9011

Armond Cohen, CLF, 617/350-0990

Peter Brown (NECA), Brown, Olson & Wilson, 603/225-9716