SCG Making Preparations to Reduce Workforce as a Result of DPUC Denial

Bridgeport, CT, September 21, 2005 - The Connecticut Department of Public Utility Control (DPUC) today denied a settlement agreement that resolved Southern Connecticut Gas Company’s (SCG) request for rate relief, which had been reached between SCG and the Office of Consumer Counsel (OCC).

“The Company is surprised and very disappointed that the DPUC has rejected the settlement agreement,” said Robert M. Allessio, President and Chief Executive Officer for SCG. “The Company and OCC negotiated in good faith to reach an agreement that was in the best interest of consumers and had no consumer opposition.”

“Because of the denial of the settlement, the company is now being forced to make preparations to eliminate hundreds of jobs by the end of the year,” Allessio concluded.