NYSEG and RG&E Extremely Disappointed With PSC Decision Not To Review Financial Condition of Companies

ALBANY, NY (04/07/2009)(readMedia)-- NYSEG and RG&E are extremely disappointed in the Public Service Commission's decision today granting Staff's motion to dismiss the Companies' requests for consideration of their financial condition and the need for rate review. The Companies cannot comment on the details of the ruling until they have had an opportunity to review it.

NYSEG and RG&E still face serious financial challenges that will cause their financial condition to fall to levels that would jeopardize their ability to provide safe and reliable service. The Companies have the lowest bond ratings of any major electric or gas utility in the state and have been put on "negative watch" or "negative outlook" by the major rating agencies.

"In the absence of a full review by the Commissioners of our financial condition and rates, the Companies' credit ratings may be reduced, which will increase the Companies' borrowing costs and further exacerbate our financial condition in this time of global financial turmoil. The result will not be beneficial to our customers or the state of New York", said James P. Laurito, president and chief executive officer of NYSEG and RG&E.

The Companies remain hopeful that the commissioners will find a way to work with the Companies to address these serious financial issues so that the Companies can maintain safe and reliable service - a priority that NYSEG, RG&E and the PSC share.

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About NYSEG and RG&E: NYSEG and RG&E are subsidiaries of Energy East Corporation, a super-regional energy services and delivery company in the Northeast. NYSEG serves 872,000 electricity customers and 256,000 natural gas customers across more than 40% of upstate New York. RG&E serves 360,000 electricity customers and 297,000 natural gas customers in a nine-county region centered on the City of Rochester. By providing outstanding customer service and meeting customers' energy requirements in an environmentally-responsible manner, NYSEG and RG&E will continue to be valuable assets to the communities they serve. For more information, visit nyseg.com and rge.com.