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RG&E AND THE STATE SETTLE DISPUTE REGARDING RUSSELL STATION
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Agreement Further Demonstrates Company’s Commitment to the Environment and Community

FOR IMMEDIATE RELEASE

 Rochester, NY, February 20, 2008 – RG&E and the State of New York have settled the state’s claim that the company made major upgrades to Russell Station in the mid-1980s without installing required pollution controls. RG&E says that modifications to the plant were merely routine maintenance and were therefore exempt from “new source review” pollution control requirements.
 

Under the terms of the settlement, RG&E will pay $500,000 to the New York State Research and Development Authority for Rochester-area energy efficiency or pollution reduction projects authorized by the state and $200,000 to the state Department of Environmental Conservation (DEC).

 “This agreement further demonstrates RG&E’s commitment to environmental stewardship and the Rochester community,” said Jim Laurito, president and CEO of RG&E. “We worked cooperatively with Attorney General Andrew Cuomo and DEC Commissioner Pete Grannis and the end result is a win for the citizens of the Rochester region.”
 

Laurito said that completion of the Rochester Transmission Project this spring after four years of planning and construction will enable the company to shut down Russell Station. He said a new natural gas-fired plant the company plans to build at the Russell Station site, provided that regulatory approvals are obtained, together with the energy efficiency and pollution reduction projects called for in the settlement will yield significant environmental benefits for the Rochester region and the state.
 Russell Station began producing electricity in 1948. Over the years, the economical power from Russell Station has been a major factor in keeping electricity prices in the Rochester region among the lowest in New York State.

 

About RG&E: RG&E is a subsidiary of Energy East Corporation [NYSE:EAS], a super-regional energy services and delivery company in the Northeast. We serve 359,000 electricity customers and 296,000 natural gas customers in a nine-county region centered on the City of Rochester. By providing outstanding customer service and meeting our customers’ energy requirements in an environmentally-responsible manner, we will continue to be a valuable asset to the communities we serve. For more information about RG&E, visit rge.com.