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August 21, 2013

MNG, Summit to face off again for state contract

Maine Natural Gas and Summit Natural Gas of Maine plan to compete again for a contract to provide natural gas to 30 state buildings in central Maine.

The Kennebec Journal reported both companies, which battled over the awarding of a previous natural gas contract with the state, plan to submit bids in response to a new request for proposals the state issued earlier this month.

The previous contract was awarded to Maine Natural Gas, an Iberdrola subsidiary, but an appeals board invalidated that award after determining the evaluation process was not fair. Maine Natural Gas responded with a lawsuit, settled in March, after its winning bid and all others were rejected.

Both Summit, a subsidiary of the Colorado-based Summit Utilities, and Maine Natural Gas have begun building out natural gas pipelines in the Kennebec Valley to vie for municipal and corporate clients.

The state says the latest 23-page RFP is simpler than its predecessor and calls for a 10-year contract with a company to provide a distribution system for natural gas. A contract to supply the gas itself, the paper reported, would be awarded in a separate process.

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