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

News Release
Yankee Gas Announces 2002 System Expansion Plans;
Four Towns Targeted for Expanded Energy Options, Growth
MEDIA CONTACT:Sandy St. Pierre
Office:(860) 665-6211
After Hours:(860) 279-1173
BERLIN, Conn., July 30, 2002, (NYSE:NU) – Yankee Gas Services Company, part of the Northeast Utilities (NU) system, has announced plans to move ahead with the second year of a multi-year expansion of its natural gas distribution system. This year’s expansion efforts represent an investment of approximately $4.5 million to install 12 miles of new gas mains and services in four communities in Connecticut. The 2002 expansion builds upon the foundation of growth begun last year, when Yankee installed nearly 34 miles of new gas mains throughout the state, supporting important economic development initiatives and extending fuel diversity to more Connecticut residents and businesses. One community that was part of Yankee’s 2001 growth initiative, Prospect, had never before been served by natural gas.

“Our commitment to invest in expanding our gas distribution system is important to ensuring Connecticut continues to have energy options that support both economic development and consumer demands. In today’s technology-driven economy, having reliable energy, as well as energy options are critical to business and consumer lifestyle. As customers, we always expect that a reliable energy source is there when we want it or need it,” said Dennis E. Welch, president & COO of Yankee Gas. “By continuing to grow our system, we’re putting the infrastructure in place that will ensure our ability to meet those demands now and in the future.” Additional projects are being evaluated and could be added to this year’s list of expansion efforts.

Expansion to support business, residential needs
All of the planned expansion projects this year will serve commercial businesses, industrial sites, including industrial parks, and residential areas. This year’s projects will include expansions in South Windsor, Ellington, Oxford and East Lyme. East Lyme has never been served by natural gas before. Providing natural gas availability in these communities will support important local economic development initiatives.

“We believe the expansion of natural gas into our commercial district will be a great leveler for East Lyme,” said Wayne Fraser, First Selectman. “It will make the town more competitive, helping us attract potential new businesses and give existing businesses greater flexibility in their energy choices,” he added.

In addition to offering more energy choices to businesses, this expansion will deliver
natural gas options to new and existing residential customers in these communities. Natural gas
has many residential uses, from traditional heating and water heating to cooking, grilling, hearth products and outdoor lighting.

Power reliability increasingly important
Today, when power reliability is critical to keeping businesses running and the economy on track, having an uninterrupted energy supply is a necessity. Companies can meet this need by using natural gas to run equipment that generates an uninterrupted supply of electric power. Natural gas can also be used for cooling, heating, cooking or process applications that are critical to business success. In addition, businesses with bi-fuel capabilities can cost-effectively balance their energy needs while ensuring power reliability.

Work to begin soon
Construction is expected to begin this summer on all four projects. The company is working closely with local municipal officials to minimize any disruptions to businesses and homeowners due to construction and to ensure local concerns are properly addressed.

Meanwhile, work is continuing on some projects begun in 2001. For example, a portion of a planned expansion in Middlebury was deferred to coincide with a municipal water project to be done this year, providing savings for both the town and Yankee while minimizing the effects of construction locally. And, in Darien, Yankee is enhancing expansion work done in 2001 by installing additional gas main extensions on Tokeneke Road, Noroton Avenue and Old Kings Highway, to serve more commercial businesses. This extension is the result of new demand and opportunity to serve additional customers following last year’s expansion through Darien’s central business district. An extension of last year’s Prospect expansion will include installing a section of main this year onto Great Hill Road in Naugatuck.

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 191,000 customers in 70 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 – 2002 System Expansion Overview
CommunityProject DetailsEstimated Start
Ellington 23,620 feet of main (4.5 miles)
Route -- Starts at intersection of Route 83 & Pease Farm Rd. (Rte 140) and heads north approximately 11,400 feet, past Ellington Airport area to Kibbe Rd.; Also, starts at intersection of Rte 83 at Maple St. (Rte 140) and heads west along Maple St,. approx. 4,400 feet. Starts at intersection of Rte 83 at Main St. (Rte 286) heading west along Main St., approx. 3,800 ft., past center of town. Also, Lower Butcher Rd.
Central business district
South Windsor 3,900 feet of main
Route – Buckland Road; from the intersection of Deming Rd., heading south to Manchester town line.
Oxford 12,300 feet of main (2.3 miles)
Route – Christian St. and Jacks Hill Rd. to and including intersection of Riggs St.
To serve commercial/industrial sites, industrial parks & residential community
East Lyme 26,000 feet of main (6.25 miles)
Route – Starts in Waterford at Cross Road and Oil Mill Rd., heads west to intersection along Rte 161 (Chesterfield Rd), also known as Flanders Four Corners; heads south from here along Rte 161 (Flanders Rd); also heads north on Chesterfield Rd. to East Lyme High School.
Central business district

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