Article: Bay State Gas Receives Regulatory Approval for Unique Two-Year Rate Plan.

Westborough, Mass.--(BUSINESS WIRE)--Jan. 9, 1998--

Company, Government Agencies, and Union Collaborate on

Innovative Plan

Bay State Gas Company (NYSE: BGC) recently received approval from the Massachusetts Department of Telecommunications and Energy (formerly the Department of Public Utilities) for new rates associated with a unique "two-year rate plan," which is a price-cap incentive rate mechanism. The plan was developed through a settlement process involving the Massachusetts Attorney General's Office, the Massachusetts Division of Energy Resources, and Local 273 of the Utility Workers Union of America.

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