MEGA and Sprague Announce Natural Gas Partnership

April 18th, 2012

Portsmouth, NH - April 18, 2012.  Sprague Operating Resources LLC ("Sprague") has been endorsed by the Municipal Electric and Gas Alliance ("MEGA"), in partnership with the New York State Association of Counties, to provide MEGA members and affiliated organizations with the option to purchase their own natural gas in the St. Lawrence Gas utility service area. Following a competitive bidding process, Sprague was selected to provide natural gas and related services to MEGA members in Northern New York.

MEGA members and affiliated organizations will now have a competitive choice - the ability to sign up for "basis" or fixed rate pricing options for an extended time period. By taking a proactive approach to energy procurement, municipalities will now be able to control their energy costs. "Our members are now able to budget their energy expenditures and achieve price stability instead of relying on utility service with their constantly changing utility gas rates," says MEGAE Executive Director Ron Feldstein.

"We are excited to work with prospective customers to lock in their rates now for the upcoming summer and winter months. We expect to help MEGA members save more than 10% compared with utility gas supply," says Michael Bartlett from Sprague.

Sprague has provided natural gas to municipal, industrial and commercial customers for over 18 years. It provides a consultative approach with its customers, tailoring each purchase based on customers' underlying energy needs and risk appetite. Instead of relying on a quoted price, customers are able to lock in prices or create more complex structures if desired.

About Sprague Operating Resources LLC:

Founded in 1870, Sprague is the leading independent supplier of energy products and related services in the Northeast with >350 million gallons of refined products storage at 15 owned and operated terminals. Sprague has been providing its retail, commercial, industrial, utility and wholesale customers with natural gas since 1994. It sells over 50 billion cubic feet of natural gas annually to over 4,000 accounts located behind 36 utilities in 11 states.