DPUC Approves Revenue Increase for Southern.

Business Editors

BRIDGEPORT, Conn.--(BUSINESS WIRE)--Jan. 31, 2000

The Connecticut Department of Public Utility Control (DPUC) on January 28, 2000 issued its final decision, approving a $502,000 annual revenue increase for The Southern Connecticut Gas Company.

This amounts to approximately a .2% increase over current rates for firm sales customers.

The rate increase will be effective for sales on and after February 1, 2000.

&uot;We appreciate that the Commission took into account much of the information we provided in our written exceptions and oral arguments, and revised its draft decision. We are disappointed that additional revisions were not made,&uot; said Romilda Anderson, Southern's Director of Public Affairs. &uot;We will continue our review of the decision to determine how best to address these issues. We will be working to revise our performance based rate making plan to meet the Commission's concerns.

&uot;It is especially important that the Commission treated most of our deferred expenses, which are a major portion of our rate request, as requested,&uot; said Anderson. &uot;The decision allows the gradual recovery of expenses that the Company has incurred for state-mandated programs, but for which it has not yet collected from customers. These state-mandated programs include the Three Way Payment Plan for hardship assistance, economic development expenses and for state-mandated conservation expenses.

&uot;We will continue our efforts to optimize efficiencies and continue to provide excellent service to our customers.&uot;

Southern Connecticut Gas Company is the principal subsidiary of Connecticut Energy Corporation (NYSE:CNE). Southern distributes natural gas to approximately 158,000 customers in 22 Connecticut communities. Through Connecticut Energy's subsidiary, CNE Energy Services Group, Inc., the Company also provides an array of energy commodities and services to commercial and industrial customers throughout New England and parts of New York. CNE Development Corporation participates in bulk purchases and storage of natural gas, and CNE Venture-Tech invests in ventures that offer technologically advanced energy-related products. Further information on the Company is available at www.ConnEnergy.com.

In December 1999, Connecticut Energy Corporation received the approval from the Connecticut DPUC to merge with Energy East Corporation. Connecticut Energy had announced the merger agreement last April, and shareholders approved the merger in September.

Energy East Corporation (NYSE:NEG) is 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. Upon completion of its mergers with Connecticut Energy Corporation (NYSE:CNE), CMP Group (NYSE:CTP), CTG Resources (NYSE:CTG) and Berkshire Energy Resources (Nasdaq:BERK) and including its current energy delivery subsidiary, NYSEG - Energy East will serve 2 million customers (1.4 million electricity and 600,000 natural gas) in upstate New York and New England.

This press release contains forward-looking statements about the projected financial performance of Connecticut Energy Corporation. While the Company believes such statements to be reasonable at the date of this press release and makes them in good faith, Connecticut Energy cautions that they may vary from actual results. Investors should be aware of important factors that could have a material impact on future results, such as the availability and terms of capital; competition for energy services; actions by federal and state regulatory authorities; legislative and judicial developments which affect the Company or significant groups of its customers; and other uncertainties.