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Consolidated Edison Co. of New York, Inc.

United States of America, Department of Energy office of Fossil Energy

October 22, 2007

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC. DOE/FE ORDER No. 2423

          ORDER GRANTING BLANKET AUTHORIZATION TO IMPORT AND EXPORT NATURAL GAS FROM AND TO CANADA

         I. DESCRIPTION OF REQUEST

         On October 17, 2007, Consolidated Edison Company of New York, Inc. (Consolidated Edison) filed an application with the Office of Fossil Energy of the Department of Energy (DOE), under section 3 of the Natural Gas Act (NGA), [1] for blanket authorization to import and export natural gas from and to Canada, up to a combined total of 125 billion cubic feet of natural gas. The applicant requests the authorization be granted for a two-year term beginning on January 1, 2008.[2] Consolidated Edison is a New York corporation with its principal place of business in New York, New York.

         II. FINDING

         The application has been evaluated to determine if the proposed import arrangement meets the public interest requirement of section 3 of the NGA, as amended by section 201 of the Energy Policy Act of 1992 (Pub. L. 102-486). Under section 3(c), the import and export of natural gas, including liquefied natural gas (LNG), from and to a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas and the import of LNG from other international sources are deemed to be consistent with the public interest and must be granted without modification or delay. The authorization sought by Consolidated Edison to import and export natural gas from and to Canada, a nation with which a free trade agreement is in effect, meets the section 3(c) criterion and, therefore, is consistent with the public interest. This Order authorizes transactions with terms of no longer than two years.

         ORDER

         Pursuant to section 3 of the Natural Gas Act, it is ordered that:

         A. Consolidated Edison Company of New York, Inc. (Consolidated Edison) is authorized to import and export natural gas from and to Canada, up to a combined total of 125 billion cubic feet of natural gas pursuant to transactions that have terms of no longer than two years. This authorization shall be effective for a two-year term beginning on January 1, 2008, and extending through December 31, 2009.

         B. This natural gas may be imported and exported at any point on the borders between the United States and Canada.

         C. Monthly Reports: With respect to the natural gas imports and exports authorized by this Order, Consolidated Edison shall file with the Office of Natural Gas Regulatory Activities, within 30 days following the last day of each calendar month, a report indicating whether imports or exports of natural gas have been made. Monthly reports must be filed whether or not initial deliveries have begun. If no imports and/or exports have been made, a report of "no activity" for that month must be filed. If imports and/or exports of natural gas have occurred, the report must give the following details: (1) for imports, country of origin; (2) for exports, the country of destination; (3) the point(s) of entry and exit; and (4) the total volume at each import or export point in thousand cubic feet (Mcf) for the month. [OMB No.: 1901-0294]

         D. The first monthly report required by this Order is due not later than February 29, 2008, and should cover the reporting period from January 1, 2008 through January 31, 2008.

         E. Quarterly Reports: With respect to the natural gas imports and exports authorized by this Order, Consolidated Edison shall file with the Office of Natural Gas Regulatory Activities, within 30 days following the last day of each calendar quarter, reports indicating whether imports and/or exports of natural gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun. If no imports and/or exports of natural gas have been made, a report of "no activity" for that calendar quarter must be filed. If imports or exports of natural gas have occurred, the report must give the details of each transaction, including: (1) the total monthly volumes in Mcf; (2) the average purchase price of gas per million British thermal units (MMBtu) at the international border; (3) the name of the supplier(s); (4) the name of the purchaser(s); (5) the estimated or actual duration of the supply agreement(s); (6) the name of the United States transporter(s); (7) the point(s) of entry or exit; and (8) for imports, the geographic market(s) served, by State. [OMB No. 1901-0294]

         F. The first quarterly report required by this Order is due not later than April 30, 2008, and should cover the reporting period from January 1, 2008 through March 31, 2008.

         G. Both the monthly and quarterly reports shall be filed with the U.S. Department of Energy, Office of Natural Gas Regulatory Activities, FE-34, P.O. Box 44375, Washington, D.C. 20026-4375.

          R.F. Corbin Manager, Natural Gas Regulatory Activities Office of Oil and Gas Global Security and Supply Office of Fossil Energy

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Notes:

[1]15 U.S.C. § 717b. This authority is delegated to the Assistant Secretary for Fossil Energy pursuant to Redelegation Order No. 00.002.04C (January 30, 2007).

[2] Consolidated Edison's blanket authorization granted in DOE/FE Order No. 2162 on December 28, 2005, extends through December 31, 2007 (2 FE ¶ 71, 238).

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