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Yankee Gas Services Company
P.O. Box 270
Hartford, CT 06141-0270
(800) 989-0900

www.yankeegas.com
News Release
  
Yankee Gas Services Company Completes First Phase of System Expansion in 2001
 
MEDIA CONTACT:Sandy St. Pierre
Office:(203) 639-4423
After Hours:(860) 279-1173
 
MERIDEN, Conn., January 16, 2002, (NYSE: NU) –Yankee Gas Services Company, part of the Northeast Utilities System (NU), has successfully completed the first phase of a multi-year expansion of its natural gas distribution system. Launched last spring, Yankee Gas installed nearly 34 miles (more than 179,000 feet) of new natural gas piping by the end of the year in 10 Connecticut communities, including Prospect, a town that has never been served by natural gas. "It is exciting to bring a new energy choice to a town and extend natural gas lines into new areas of many other communities we already serve, " said Dennis E. Welch, president and COO of Yankee Gas, Connecticut’s largest natural gas distribution company.

Fuel diversity welcomed by towns
Yankee Gas worked closely with town leaders and economic development officials during the planning phases of the expansion. "Establishing a good working relationship with each town long before construction began led to a positive reception of the company's expansion, from both the business community and homeowners," said Welch. In Suffield, natural gas mains were extended from the perimeter of town into the central business district and to three residential areas.

“We were pleased with Yankee’s plans to extend natural gas to more businesses and homeowners in town,” said Suffield First Selectman Elaine Sarsynski. “The town is really in a growth mode right now. We're seeing a lot of retail and commercial growth, so the expansion of natural gas in the area will support continued growth and provide businesses with energy options," Sarsynski added.

As part of the system expansion project, Yankee Gas placed significant emphasis on communication with town businesses and residents. The company hosted multiple events in each community for local officials, businesses and homeowners, explaining the benefits of the expansion projects and providing details on where and for how long construction would last. Mailings were also sent to businesses and residents in each town, especially along construction routes, keeping potential customers informed on the progress of the expansion project and marketing the opportunity to connect to natural gas.

Central business districts, industrial parks benefit from expansion
The expansion effort included extending gas mains through the central business districts of the towns of Suffield, Darien, Prospect and Woodbury. (See attached chart for a brief description of each project.) “We're glad to have natural gas in more areas of town," said Dick Crane,
Woodbury's First Selectman. "It is a welcome energy option for our businesses, residents, and especially for town buildings," he added.

In 2001, expansion of gas mains to industrial parks in the towns of Oxford, Seymour and Prospect were completed, giving these businesses greater flexibility to meet their energy needs. In addition, since 1996, Connecticut businesses have been able to choose their natural gas supplier. That allows commercial and industrial customers to buy natural gas from gas marketers, often at competitive rates that are more cost-effective for their businesses.

More growth in 2002
The company’s system expansion is expected to continue this year. Yankee Gas' system expansion reflects the company’s commitment to growth of its gas distribution system, as agreed to with state regulators in its merger with NU in 2000. It extends greater fuel diversity to Connecticut consumers by offering another energy choice and supports key economic development efforts in the state.

Yankee Energy System, Inc.,(YES) which is part of the Northeast Utilities system, includes Yankee Gas Services Company, the largest natural gas distribution company in Connecticut serving approximately 187,000 customers in 69 cities and towns throughout the state. Yankee Energy also includes Yankee Energy Financial Services Company, which provides a full range of residential and commercial energy equipment financing options. Further information about YES can be obtained from its Web sites: www.yankeeenergy.com, www.yankeegas.com and www.yankeefinancialservices.com.

Yankee Gas Services Company – 2001 System Expansion
CommunityProject Details/StatusStatus
Oxford –
Willenbrock Industrial Park		· 9,600 feet of mainCompleted
      Seymour –
      Silvermine Industrial Park
· 7,500 feet of main
· First system expansion gas meter installed and set in August at Microboard Processing 		Completed
Middlebury· 10,200 feet of main
· First phase: 7,450 feet of main energized to
accommodate two new homes that were ready for meters. The meters were set in mid-December.
    · Second phase: Central business district.
      		First phase completed by end of 2001.

      Second phase to begin in spring 2002 to coincide with town’s plans to install water service in central business area.
      Woodbury· 38,200 feet of mainMain energized in early December. Construction completed and services being installed.
      Prospect· 32,000 feet of main
      · Ties Naugatuck & Waterbury distribution system together
      · Central business district and industrial parks      		Mains energized by early December. All construction completed.
      Suffield -- Residential· 12,300 feet of main
      8,000 feet completed in 2001 as phase 1
      4,300 feet proposed in 2002 as phase 2      		Phase 1 Main completed and energized in mid November.
      Suffield – Business District· 46,940 feet of main
      · Residential and business district
      · 34,500 feet completed in 2001 as phase 1
      · 12,440 feet proposed in 2002 as phase 2      		Phase 1 main completed and energized in early December.
      Ellington· 15,500 feet of main
      · Two subdivisions
      · 5,900 feet completed in 2001 as phase 1
      · 9,600 feet proposed in 2002 as phase 2      		Phase 1 with one sub-division completed and energized in 2001.
      Enfield· 2,400 feet of main
      · One subdivision      		Completed in 2001.
      Waterford · Thames Landing Condominiums in northern section of town11,500-foot main installation completed to site of planned condominium project.
      Darien· 22,200 feet of main
      · Central business district      		Construction scheduled for completion and all mains energized by mid-January
      January 2002







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