CSGServices, Inc. Sells $1.8 Million of Renewable Energy Certificates to Massachusetts Electric Company.

Energy Editors/Business Editors/Environment Writers

WESTBOROUGH, Mass.--(BUSINESS WIRE)--May 1, 2003

New market provides additional value to renewable generators; encourages development of new, "green" energy sources

CSGServices, Inc. (CSGS) today announced the sale of $1.8 million of Renewable Energy Certificates (RECs) to Massachusetts Electric Company, a subsidiary of National Grid. The certificates, sold in a single agreement on the New England Generation Information System (NE-GIS) market, meet the Massachusetts Renewable Portfolio Standard (MA-RPS). Gas Recovery Systems, Inc. (GRS), of Livermore, Calif., the owner and operator of the renewable generating plants, supplied the certificates from its methane recovery plants in Mass.

The NE-GIS market opened in July of 2002 as part of electric utility restructuring legislation enacted in 1998. The MA-RPS calls for, beginning in 2003, retail electricity providers in Mass. to purchase a minimum of their customer demand from qualified new renewable generation sources such as wind, biomass and solar that began producing power in 1998 or after. The law was created to establish a baseline of demand for cleaner, newer power plants and reward these cleaner technologies for their increased environmental performance when compared to conventional power plants. The REC certificates sold to Massachusetts Electric represent renewable energy generated from the third quarter 2002 through the end of 2004.

Massachusetts Electric's purchase of these certificates demonstrates the company's efforts in complying with this law and provides a clear market signal that generators will receive an additional revenue stream based on their environmental characteristics.

Michael J. Hager heads up energy supply procurement for Massachusetts Electric. He said, "We are happy to see a system where renewable generators can be rewarded and that National Grid can play a role in this market to ensure its future success. Diversifying our energy supply by supporting renewable energy is good for our customers, the environment and our future."

CSGS, an affiliate of Conservation Services Group (CSG), facilitates trading between generators and electric suppliers by aggregating certificates for convenient purchase, assisting renewable generators in applying for Division of Energy Resource (DOER) qualification, as well as marketing and selling their generation to purchasers. Stephen L. Cowell, CEO of CSG commented, "We are pleased to be taking an active role in this emerging market, supplying renewable energy credits to Massachusetts Electric. This clearly demonstrates to generators that the market is working and that there is healthy demand for new, renewable generation."

CSG has been working with National Grid and its subsidiaries on energy efficiency programs for more than 20 years. Cowell said, "We are excited to be expanding the scope of our work with Massachusetts Electric."

GRS operates methane recovery plants throughout the United States. Plants that supplied certificates for Massachusetts Electric are located in Fall River and Randolph, Mass. Stephen Probyn is CEO of Clean Power, Inc., administrator of the Clean Power Income Fund that supports GRS. He stated, "We are pleased to see the market for the green attributes of power generation developing in New England. Through the efforts of CSGS, GRS is realizing a 30-40 percent gain beyond the value of generation for its methane recovery plants."

According to DOER commissioner David L. O'Connor, "Massachusetts Electric and CSGS are helping to grow the renewable energy market here in the Bay State. Now, more than ever, we need to support renewable energy sources like solar, wind, landfill gas and biomass. By doing this, we increase our fuel diversity and decrease our reliance on imported fuels. Our RPS regulations are designed to provide these benefits at the least cost to Massachusetts homes and businesses."

CSGServices, Inc., a for profit affiliate of CSG, was founded in 2002. The company offers a broad array of products and services including appliance recycling, renewable energy, mechanical engineering, lighting design and energy information. CSG, a non-profit organization based in Westborough, Mass., has been providing energy-saving strategies, services and technologies to consumers and businesses nationwide since 1984. CSG and CSGS represent approximately $40 million in sales and employ 250 people in 14 offices nationwide.

Massachusetts Electric serves approximately 1.2 million customers in 168 communities throughout the state and is an electricity distribution subsidiary of National Grid.