CITIZEN POWER ALLIANCE

WASHINGTON - With questions surrounding Iberdrola’s bid to takeover Energy East – parent company of Rochester Gas and Electric and New York State Electric and Gas, U.S. Senator Charles Schumer Wednesday called for the New York State Public Service Commission to ease stringent demands it has placed on the energy company as a condition for approving the merger.

Currently, the PSC is insisting that Iberdrola give up all its wind power assets across the state and pledge not to develop any wind power in the future. Schumer today argued that this condition runs counter to the state’s goals of developing a robust renewable energy portfolio and could sacrifice economic development opportunities around the State. He urged the PSC to concentrate its negotiations with the utility on issues surrounding customer rates, system reliability and the overall health of the company.

As part of the regulatory approval process, the PSC has also urged that the company sell off Russell Station, a coal- burning Rochester area plant. However, the prospect of a new Russell Station owner raises many questions – including what impact it could have on customer electric rates. Energy East recently agreed to accept divestiture of Russell Station, but Schumer called on the PSC to jettison that condition. With Rochester customers paying some of the lowest utility rates in the state, Schumer insisted that the PSC and Iberdrola must more thoroughly analyze the impact that selling the 300+ MW facility would have on ratepayers. Russell Station supplies 25 percent of Rochester's power.