CNG Fuel Waiver's for March

For the balance of March, CNG has granted ENA fuel waivers from
Iroq/Canajoharie to the following CNG citygates; NIMO (East & West), NYSEG,
and Hanley & Bird. According to this morning's sheet, we are delivering
about 11,000 dt to these 4 delivery points.

Following are 2 ways of getting the gas into CNG at Canajoharie.

1. Idle some of our Tenn Z6 capacity and flow Iroquois in to CNG. At
today's prices we save:

Savings
Tenn Variable $.0491 at $3.00
CNG Fuel $.0672 at $2.88
------------
Total Savings $.1151

At these prices, if the Tenn Z6 and CNG pool spread is inside $.1100, we
should idle Tenn capacity and deliver Iroq to Canajoharie

2. Buy Waddington, get an IT discount from Wadd to Canajoharie. We save the
CNG fuel cost. This usually only works when Iroq shows a discounted rate of
$.04 to $.06.

Last year, CNG granted most of these fuel waivers all summer.