Connecticut Energy and Conectiv Joint Venture Receives Rate Approval.

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Aug. 21, 1998--Total Peaking Services LLC (TPS), a liquid natural gas (LNG) joint venture, has received Federal Energy Regulatory Commission (FERC) approval of the market-based tariffs filed by TPS.

The joint venture is a partnership of CNE Energy Services Group Inc., a subsidiary of Connecticut Energy Corp. (NYSE:CNE), and Conectiv (NYSE:CIV), a Delaware-based energy company and utility. The approval, issued Aug. 14, clears the way to begin operations at a 1.2 billion cubic foot LNG storage facility.

The LNG facility is located in Milford, Conn. and will provide LNG storage and liquefaction service for customers. The existing facility has access to three major natural gas pipelines in New England -- Algonquin Gas Transmission Co., Iroquois Gas Transmission System L.P. and Tennessee Gas Pipeline Co. It is able to receive natural gas in both liquid or vapor form for storage, to be held until it is needed.

"We are pleased to now be able to providean in-region storage service which will enhance the reliability and flexibility of energy marketers who operate in the Northeast," said Larry S. McGaughy, president of CNE Energy Services.

"This is one more step toward realizing our intent to make Conectiv a major regional supplier of energy and energy-related products and services," said Thomas S. Shaw, executive vice president of Conectiv. "This builds on another of Conectiv's strengths, in this case, our experience with winter peaking facilities in the Mid-Atlantic region."

Connecticut Energy Corp. (NYSE:CNE) is a holding company primarily engaged in the retail distribution of natural gas through The Southern Connecticut Gas Co., its principal subsidiary, which delivers natural gas in 22 Connecticut communities to over 157,000 customers. Through its subsidiary, CNE Energy Services Group Inc., the company also provides an array of energy products and services to commercial and industrial customers throughout New England. The company also participates in a natural gas purchasing cooperative through another subsidiary, CNE Development Corp. A third unregulated subsidiary, CNE Venture-Tech Inc., invests in companies that produce technologically advanced energy-related products.

Conectiv (NYSE:CIV) is the name of the holding company which was formed as a result of the merger involving Delmarva Power & Light Co. and Atlantic Energy Inc. Conectiv's regulated utilities -- Delmarva Power and Atlantic Electric -- now span five states, and have more than 1 million electric customers and about 100,000 natural gas customers. Conectiv's competitive businesses, including Conectiv Energy, now have more than 130,000 customers. Conectiv has revenues of more than $2 billion and assets of nearly $6 billion. Conectiv is moving toward becoming a major provider of energy and energy-related services and products in the Mid-Atlantic region.

    CONTACT: Connecticut Energy Corp., Bridgeport
              Judith E. Falango
              203/382-8156