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N.H. Approves Liberty Utilities Contract For Firm Capacity on Northeast Energy Direct

October 6, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The New Hampshire PUC approved a settlement agreement between Liberty Utilities (EnergyNorth Natural Gas) and the Commission Staff and approved a 20-year contract for long-term, firm natural gas pipeline capacity on the proposed Northeast Energy Direct pipeline.

The approved terms include up to 115,000 deckatherms per day of firm capacity, at a fixed rate on the proposed Northeast Energy Direct Market Path pipeline project. Service is expected to commence on November 1, 2018, unless certain delays occur or certain preconditions are not met.

Of the total 115,000 Dth per day of capacity contracted for in the Precedent Agreement, 50,000 Dth per day is replacement of existing TGP capacity and 65,000 Dth per day is new or incremental capacity. The existing 50,000 Dth per day has a receipt point at Dracut, Massachusetts, and delivery points on the Concord Lateral. The Concord Lateral is TGP’s northernmost branch pipeline originating in Dracut, which carries natural gas to primary delivery points at city gate meters in Nashua, Manchester, and Concord (the city gate meter in Concord is referred to as the Laconia meter), for delivery to EnergyNorth’s customers in New Hampshire. The Precedent Agreement provides firm capacity from the primary receipt point at Wright, New York, to EnergyNorth’s existing delivery points in New Hampshire, as well as a new delivery point in West Nashua.

In approving the agreement, the PUC noted that EnergyNorth has experienced, "significant growth and reverse migration of large capacity-exempt customers."

"Accelerated reverse migration has occurred for several years now and is likely to continue based on volatile natural gas pricing arising from constrained pipeline capacity in New England," the PUC said

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