Company Files Letter of Intent to Recover Uncontrollable Costs

Bridgeport, CT, March 29, 2005 - The Southern Connecticut Gas Company (SCG) has provided notice to the Connecticut Department of Public Utility Control (DPUC) that it intends to file an application seeking rate relief to help restore its financial stability and deterioration of cash flow and collect prudently incurred costs that are not currently reflected in rates.

“As a result of the DPUC’s denial of SCG’s recovery of nearly $20 million in uncontrollable costs in October 2004 and since the company has not had an increase in delivery rates since 2000, the company is forced to file an 11% increase,” said Robert M. Allessio, Executive Vice President and Chief Operating Officer for SCG.

In its letter of intent, the company has informed the DPUC that it will request an increase in rates and charges of approximately $35 million. SCG customers have not experienced an increase in delivery rates since 2000.

“Over the last five years, SCG has worked hard to cut costs. Without a rate increase, the company will have to take more drastic cost-cutting measures including reducing the workforce and canceling infrastructure improvement projects which will all lead to a deterioration of service,” Allessio concluded.

Editor’s note: The Southern Connecticut Gas Company is a subsidiary of Energy East Corporation [NYSE:EAS], a super-regional energy services and delivery company in the Northeast. Energy East is a leader in promoting competition and is committed to profitably growing its energy infrastructure. Energy East serves nearly three million customers (1.8 million electric, one million natural gas and 200,000 other retail energy customers) throughout upstate New York and New England.