[en] Deregulation of gas utilities requires a radical rethinking of the local distribution company's (LDC) business. Key strategies and immediate changes implemented at Bay State, an LDC in Massachusetts, were described, among them complete system unbundling, development of strategic relationships with retail energy companies, accelerated information system implementation, performance-based rate implementation to provide financial incentives for lowering costs and improving customer service, and aggressive growth of the energy products and services business. Five immediate changes made at Bay State to accelerate growth opportunities were: (1) introducing a company-wide restructuring, (2) initiating the first natural gas residential choice pilot program in New England, (3) aggressively expanding the energy products and services business, (4) selling Bay State's interest in the Massachusetts Power cogeneration facility