Colonial Gas Company Seeks Regulatory Approval to Adopt a Holding Company Structure.LOWELL, Mass.--(BUSINESS WIRE)--July 22, 1998--Colonial Gas Company (NYSE NYSE See: New York Stock Exchange :CLG CLG College CLG Ceiling CLG Collagenase CLG Cumann Lúthchleas Gael (Club of the Gaelic Athletic Association) CLG Community Liaison Group CLG Calling Line CLG Change to Lower Grade (civilian personnel) ) announced that it has formally petitioned the Massachusetts Department of Telecommunications and Energy (DTE (Data Terminating Equipment) A communications device that is the source or destination of signals on a network. It is typically a terminal or computer. Contrast with DCE.  DTE - Data Terminal Equipment ) for approval to form a holding company which will be called Colonial Energy. The Company's proposal to restructure into a holding company received shareholder approval at the 1998 Annual Meeting of Stockholders. "As recently recognized by the DTE in other proceedings, a holding company structure is designed to provide increased financial, managerial, and organizational flexibility," said F.L. Putnam, Jr., Chairman of the Board and Senior Executive Officer of Colonial. "Management believes that increased flexibility will better position the Company to operate in the rapidly evolving energy industry and thereby assist in achieving continued success." Subject to DTE approval, Colonial plans to have the holding company structure in place by the end of 1998. Following the restructuring, Colonial Gas expects to transfer ownership of its energy trucking subsidiary, Transgas Inc., to the holding company -- making both Colonial Gas Company and Transgas Inc. wholly-owned subsidiaries of Colonial Energy. Colonial Gas Company is the fastest-growing, lowest-cost natural gas utility in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . Formed as a Massachusetts corporation in 1849, Colonial distributes natural gas to over 150,000 residential and commercial customers in 24 communities located northwest of Boston and on Cape Cod Cape Cod, narrow peninsula of glacial origin, 399 sq mi (1,033 sq km), SE Mass., extending 65 mi (105 km) E and N into the Atlantic Ocean. It is generally flat, with sand dunes, low hills, and numerous lakes. . In addition, the Company is involved in several related business activities including the sales, rental, installation, service, and financing of natural gas products for home heating, water heating Water heating is a thermodynamic process using an energy source to heat water above its initial temperature. Typical domestic uses of hot water are for cooking, cleaning, bathing, and space heating. In industry both hot water and water heated to steam have many uses. , central air conditioning, and industrial applications. Colonial also owns and operates Transgas Inc., the world's largest over-the-road transporter of liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. .
CONTACT: Colonial Gas Company
Brian Norris, 978/322-3435
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