United Illuminating : Natural Gas Pipeline Provides Essex With More Options

NEWS RELEASE
September 18, 2014

Media Contacts:
Michael A. West Jr. 203-499-3858

Natural Gas Pipeline Provides Essex With More Options
Project expands footprint of UIL's Southern Connecticut Gas Company

ORANGE, Conn. - Sept 18, 2014 - The Southern Connecticut Gas Company (SCG), a subsidiary of UIL Holdings Corporation (NYSE: UIL), is now providing natural gas service to the town of Essex as it expands its territorial footprint in Connecticut.

This franchise expansion, completed this summer, represents an investment of approximately $3.0 million to install 5.5 miles of new gas mains and services in a Connecticut community that has never been served by natural gas before.

This expansion builds upon Connecticut's Comprehensive Energy Strategy, announced by Gov. Dannel Malloy in 2012 and enacted last year, which seeks to add some 280,000 new natural gas customers statewide over 10 years in support of economic development and fuel diversity.

"Our commitment to invest in and expand our gas distribution system is important to ensure that our region has energy options that support both economic development and consumer demands," said Anthony Marone, UIL's senior vice president for customer and business services. "As we continue to grow and serve more neighborhoods and communities in Connecticut, we're providing residents with an additional option for reliable energy that is critical to business development and consumer lifestyles."

Officials from the Town of Essex, the State of Connecticut and UIL gathered at Essex Town Hall on Sept. 18 to acknowledge the support that helped to bring this project to fruition, and to recognize community supporters. This project would not have been possible without the Comprehensive Energy Strategy and support from the Malloy administration.

"We created our state's first-ever Comprehensive Energy Strategy with the goal of providing cleaner, cheaper and more reliable energy to Connecticut's residents," Governor Malloy said.  "This expansion in Essex is doing just that - reducing energy costs for residents and businesses while creating construction jobs and putting into place the infrastructure to support a growing economy that leads to long-term job growth."

"I commend SCG for responding to so many Essex consumers by bringing natural gas to their town.  We enacted the state's comprehensive energy strategy to provide businesses and residential consumers with a full range of cleaner, more affordable energy options. Natural gas expansion is a complicated process with lots of regulatory challenges and it cannot happen without the kind of company commitment that SCG has demonstrated in Essex," said State Representative Lonnie Reed, co-chair of the energy and technology committee.

Supporting business, municipal and residential needs
The Essex expansion serves commercial businesses, a municipal school system and residential areas. Providing natural gas in this community will support important local economic development initiatives. Along the newly extended main, there are 90 commercial and industrial prospects. As of the beginning of September, 33 commercial accounts had signed up for natural gas service.  

The expansion also will make natural gas an option for residences along Route 153. Clean-burning natural gas, which is currently about half the price of oil for equivalent heating output, has many residential uses, from heating and hot water to cooking, grilling, hearth products and outdoor lighting.

Of the 143 residential units along the route, 67 have signed up for gas service; this number also includes the new Essex Glen construction project, which represents 55 units. SCG continues to field inquiries and enter contracts for new gas service.

"We believe the expansion of natural gas service into Essex will make the town more competitive, helping us attract new businesses and giving existing businesses greater flexibility in their energy choices," said Essex First Selectman Norman Needleman, who attended the event. "It will also provide another fuel option for the residents of the area served by the new natural gas main, potentially helping them to lower their energy costs and reduce their impact on the environment."

Power reliability is important to keeping businesses running and the economy on track, and 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 power. Natural gas can also be used for cooling, heating, cooking or process applications that are critical to business success.

"There was a lot of forward thinking involved with this project," said Leighton Lee IV, facilities manager of The Lee Company, an Essex-based manufacturer that served as one of the "anchor" customers for the project. "SCG held community information sessions and worked with us as they began construction. They listened to the concerns in the community and understood our needs."

About the new main
Anchor customers like The Lee Company are a key part of a gas main expansion project, since they create the critical mass of demand that's required by state law in order to justify the cost. Other anchor customers include Essex Elementary School, Essex Meadows and Lifecare Retirement Community.

The new main begins at Route 153 and Pettipaug Road in Westbrook and runs into Essex up Route 153.

Here are some other current SCG natural gas main extension projects:

New Haven   - All American Waste NGV Station-  New natural gas station for waste removal trucks. 1,600'    Sept. 2014

Westbrook    - Pilots Point Marina -   Eight buildings in Brewer Pilots Point Marina Complex. New main will passes 134 homes.  5,300'  Sept. 2014

Guilford    -  Calvin Leete Elementary School - New main will service Calvin Leete Elementary School, Bethel Assembly of God Church and Daycare;  passes 65 homes.   5,000' Sept. 2014

North Haven - CSX Railroad Operations Center - New main will serve boiler operations center; gas will be used to warm freight. 2,300' Oct. 2014

About UIL Holdings Corporation:
Headquartered in New Haven, Connecticut, UIL Holdings Corporation (NYSE:UIL) is a diversified energy delivery company serving more than 700,000 electric and natural gas utility customers in 66 communities across two states, with combined total assets of over $5 billion.

UIL is the parent company of The United Illuminating Company (UI), The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG), and The Berkshire Gas Company (Berkshire), each more than 100 years old. UI provides for the transmission and delivery of electricity and other energy related services for Connecticut's Greater New Haven and Bridgeport areas. SCG and CNG are natural gas distribution companies that serve customers in Connecticut, while Berkshire Gas serves natural gas customers in western Massachusetts. UIL employs more than 1,850 people in the New England region.

Front row Left to right: DEEP Deputy Commissioner Katie Dykes, UIL's Senior Vice President for Customer and Business Services Anthony Marone and Essex First Selectman Norman Needleman.  Back Row left to right: Leighton Lee IV of The Lee Company and State Representative Phillip J. Miller