Southbridge Power & Thermal Signs Energy Agreement With Southbridge Business Center; SP&T an affiliate of Connecticut's Yankee Energy Services Company

Business Wire, July 22, 1998

MERIDEN, Conn.--(BUSINESS WIRE)--July 22, 1998--(NYSE:YES)-- Southbridge Power & Thermal L.L.C. (SP&T) of Southbridge, Mass., has signed a 20-year agreement with Southbridge Business Center (SBC), giving SP&T the exclusive right to operate its existing powerhouse and to sell utilities, including electricity, thermal energy, water and compressed air to the SBC. The agreement also calls for a multi-million dollar renovation of the SBC's utility distribution system and upgrade of its electric generation system.

Southbridge Power & Thermal is a limited liability company with Yankee Energy Services Company (YESCo), a member of Yankee Energy System, Inc., as its managing member. The SBC, an American Optical Corporation limited partnership, is an industrial and commercial complex consisting of over 1.2 million square feet of rentable space.

The agreement calls for SP&T to manage the daily operations of the SBC's central energy plant. As additional tenants are added, SP&T will expand existing energy generation capabilities.

The SBC is located at 14 Mechanic Street, Southbridge, Mass. Yankee Energy Services Company (YESCo) provides consulting, procurement and development for on-site generation and cogeneration systems, as well as comprehensive building automation and HVAC equipment services. In addition to Yankee Energy Services Company, Yankee Energy System, Inc. Is the parent company of Yankee Gas Services Company, the largest natural gas distribution company in Connecticut, serving approximately 181,000 customers in 68 cities and towns.

   CONTACT: Public Relations Information:
             Geralyn A. Johnson, APR
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             E-mail: johnsong@yankeeenergy.com
                 or
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             Thomas D. Dorsey
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             E-mail: invest@yankeeenergy.com