UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF FOSSIL ENERGY








USGEN NEW ENGLAND, INC. (Successor to New England Power Company)

FE DOCKET NO. 90-09-NG







ORDER TRANSFERRING LONG-TERM AUTHORIZATION

TO IMPORT NATURAL GAS FROM CANADA












DOE/FE ORDER NO. 551-E














New England Power Company (NEP) was authorized by DOE/FE Opinion and Order No. 551 (1) (Order 551), as amended by DOE/FE Order Nos. 551-A (2), 551-B (3), 551-C(4), and 551-D(5), to import up to 50,000 Mcf of natural gas per day through October 31, 2008, under purchase contracts with two Canadian producers, Renaissance Energy limited (15,000 Mcf per day) and Sceptre Resources Limited (35,000 Mcf per day).

On May 11, 1998, NEP and USGen New England, Inc. (USGenNE), a wholly-owned, indirect subsidiary of PG&E Corp., jointly filed an application with the Office of Fossil Energy (FE) of the Department of Energy (DOE), under section 3 of the Natural Gas Act (NGA)(6) and DOE Delegation Order Nos. 0204-111 and 0204-127, requesting the transfer of NEP's import authority to USGenNE, effective on the date USGenNE acquires certain NEP assets. That acquisition, expected to take place between July and September of 1998, will result from an electric industry restructuring action. Related transportation contract and gas supply agreements will transfer from NEP to USGenNE as part of the asset sale agreement.

Accordingly, pursuant to section 3 of the Natural Gas Act, the import authorization conferred by DOE/FE Opinion and Order No. 551, as amended, is transferred from New England Power Company (NEP) to USGen New England, Inc. (USGenNE) effective as of the closing date of the asset sale between NEP and USGenNE. USGenNE shall be bound by all terms and conditions set forth in Order 551, as amended. In addition, USGenNE shall notify the Office of Natural Gas & Petroleum Import and Export Activities, in writing, of the exact closing date of the asset sale between USGenNE and NEP.

Issued in Washington, D.C., on May 20, 1998.









____________________________

John W. Glynn

Manager, Natural Gas Regulation

Office of Natural Gas & Petroleum

Import and Export Activities

Office of Fossil Energy



1. 1/ 1 FE ¶ 70,502.

2. 2/ 1 FE ¶ 70,956.

3. 3/ 1 FE ¶ 71,146.

4. 4/ 1 FE ¶ 71,218.

5. 5/ 1 FE ¶ 71,363.

6. 6/ 15 U.S.C. § 717b.