PNGTS welcomes Northeast Utilities.

PORTLAND, Maine--(BUSINESS WIRE)--Jan. 13, 1997--Portland Natural Gas Transmission System (PNGTS) is pleased to announce that Northeast Utilities, New England's largest electric utility, has chosen PNGTS to transport incremental natural gas supplies and also will join PNGTS as an equity partner.

Northeast Utilities (NU) has executed agreements with CoEnergy Trading Company and TransCanada Gas Services, Inc., two of PNGTS's principal shippers, to transport 60 million cubic feet per day (MMcf/day) of natural gas using off-peak (non-heating season) capacity for deliveries to electric generation facilities in Newington, New Hampshire and other locations. In addition, NU has acquired a five percent equity interest in the proposed U.S. $302 million project.

"We are very pleased to have Northeast Utilities as part of our team," noted Michael A. Minkos, president of PNGTS Operating Co., LLC. "NU represents one of the largest potential gas markets in New England and their presence as both a customer and an investor represents yet another significant milestone in the development of our project," he added.

On behalf of Northeast Utilities, Keith R. Marvin, vice president, Purchasing and General Services, stated that, "Natural gas is going to be playing an increasingly important role as a clean and cost-effective fuel for our utility system." He added that, "PNGTS represents a very desirable capacity addition to the region and complements our efforts to provide cost-effective and reliable service to our customers."

Note to editors: Portland Natural Gas Transmission System (PNGTS) is a proposed 272-mile, U.S. $302 million project sponsored by an international consortium of energy companies including subsidiaries of: Bay State Gas Company; El Paso Energy; Gaz Metropolitain and Company, Limited Partnership; MCN Investment Corporation; Northeast Utilities; TransCanada PipeLines; and US Generating Company. PNGTS will transport natural gas from an interconnection with TransCanada PipeLines near Pittsburg, New Hampshire, to an interconnection with Tennessee Gas Pipeline near Haverhill, Massachusetts proposes to beginning in November, 1998.

Northeast Utilities is the parent company of the NU system (collectively referred to as NU). NU is the largest electric utility system in New England and among the 20 largest systems in the country, with about 8,800 employees serving approximately 1,700,000 customers in Connecticut, New Hampshire, and western Massachusetts. The major electric operating subsidiaries are The Connecticut Light and Power Company (CL&P), Holyoke Water Power Company, Public Service Company of New Hampshire (PSNH) and Western Massachusetts Electric Company (WMECO).

For questions about Northeast Utilities, please contact: Jody TenBrock NU Manager, Fuels Management, at [phone].

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