RG&E Proposes Redevelopment of Russell Station Power Plant Site

Rochester, NY, May 1, 2007 – RG&E today informed the New York Independent System Operator (NYISO) that it plans to build a new 300-megawatt (mw) electricity generating plant at the site of Russell Station, the company’s coal-fired power plant in the Town of Greece. The submittal to the NYISO represents the first formal step in siting and building the new power plant.

RG&E will operate the current plant until the Rochester Transmission Project (RTP) is completed. The proposed plant will replace the existing plant.

The new plant will meet an electricity reliability deficiency anticipated in the Rochester region in 2014 as identified by the NYISO in its March 2007 Reliability Needs Assessment. As a Responsible Transmission Owner, RG&E is required to develop a solution to address the NYISO’s projected electricity reliability deficiency.

The submittal to the NYISO includes conceptual design information and licensing and construction schedules for a 300-mw fluidized bed combustion plant (a clean coal technology) and a 300-mw natural gas combined cycle plant. Both technologies are suitable for the Russell Station site.

“The construction of a new power plant at the Russell Station site is essential to enable us to meet the energy and economic needs of the Rochester region,” said Jim Laurito, president and CEO of RG&E. “In keeping with our commitment to environmental stewardship, we have selected leading edge technologies that are consistent with state and federal environmental policy. The redevelopment of this brownfield site is in the best interest of RG&E customers.”

The lead time for permitting and construction of the new plant is approximately six years. So, the project will need to start by early in the fourth quarter of 2007 in order to be in commercial operation in time to meet the electricity reliability need in 2014.
Completion of this project will provide direct benefits to the environment by significantly reducing greenhouse gas emissions compared to levels from the older, less efficient plant now at the site.

“This project, combined with previously announced improvements at our hydroelectric generating plants on the Genesee River, are indicative of our continued commitment to the environmental and economic vitality of the Rochester region,” Laurito said.
The next step in the process is a determination by the NYISO that the project will, if completed, satisfy the reliability needs. The determination will be made in the NYISO’s Comprehensive Reliability Plan due to be issued in August 2007.

The new 300-mw generating plant will produce enough electricity to serve approximately 210,000 homes.

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.