RG&E and Constellation Generation Group LLC File Joint Section 70 Petition On Sale of Ginna Nuclear Generating Station ROCHESTER, N.Y., Dec. 18 /PRNewswire-FirstCall/ -- RG&E (Rochester Gas and Electric Corporation) a utility subsidiary of Energy East Corporation announced today that it has jointly filed with Constellation Generation Group LLC a revised Section 70 petition with the New York State Public Service Commission (NYPSC) which includes, among other things, all the transaction documents, details of the auction process, and RG&E's proposed accounting and ratemaking treatment for the sale of the R.E. Ginna Nuclear Generating Station (Ginna). RG&E's ratemaking proposal includes an incentive payment for having maximized the proceeds from the sale of Ginna and 50/50 customer/stockholder sharing of any net gain on the sale of Ginna, to the extent that RG&E's earned return on equity exceeds 10.45%, its currently authorized return at the expected time of closing. RG&E's sale of Ginna is conditioned on receiving all required regulatory approvals, including reasonably satisfactory accounting and ratemaking treatment. (Logo: http://www.newscom.com/cgi-bin/prnh/20021030/RGELOGO ) RG&E also announced today that it has encountered an impasse in negotiations with the Staff of the NYPSC and, as a result, has thus far been unable to reach agreement with the parties on detailed electric and natural gas joint proposals. Previously, RG&E announced that it had reached an Agreement in Principle on five-year electric and natural gas rate plans with the Staff of the NYPSC and other parties. RG&E had requested a one-month extension of the statutory suspension period for its 2003 Electric and Gas Rate Proceeding to permit time for the preparation and execution of detailed electric and natural gas joint proposals to settle all issues in this proceeding. RG&E now expects parties to file their direct cases in the litigated 2003 Electric and Gas Rate Proceeding by December 31, 2003. About RG&E: RG&E serves approximately 355,000 electricity customers and 291,000 natural gas customers in the areas in and around Rochester, New York. RG&E is a wholly owned subsidiary of RGS Energy, which merged with Energy East Corporation (NYSE:EAS) in 2002. About Energy East: Energy East is a respected super-regional energy services and delivery company that our customers can depend on every day. We are a motivated and skilled team of professionals dedicated to creating shareholder value through our focus on profitable growth, operational excellence and strong customer partnerships. We serve about 3 million customers throughout upstate New York and New England. http://www.newscom.com/cgi-bin/prnh/20021030/RGELOGODATASOURCE: Rochester Gas and Electric Corporation CONTACT: Clyde Forbes, +1-585-771-4802, for RG&E

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