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CHANGES CONFRONTING THE UTILITY INDUSTRY

 CHANGES CONFRONTING THE UTILITY INDUSTRY
 ROCHESTER, N.Y., May 20 /PRNewswire/ -- In his prepared remarks


at the annual meeting of shareholders, Rochester Gas & Electric Corporation's (NYSE: RGS) ("RG&E") chairman, president and CEO, Roger W. Kober, spoke of changes confronting the utility industry.
 "Some utilities are resisting this change," said Kober. "They've looked over the hill and they've seen what's coming: more competition, more technology, more environmental regulation. They've decided to try to stop it before it happens. Your company will not do that. We are excited by the future. We are confident that it presents opportunities to add value to your investment."
 Kober cited four changes that are already facing utilities and presented the company's plan to meet these changes.
 The first, competition, is already affecting the gas division. Major natural gas customers are now able to shop around for a supplier and use only RG&E's pipelines for transportation. In the future, large industrial customers may also be able to shop for low cost electricity, using the company's lines for distribution.
 "It challenges us to find innovative methods to keep those customers by offering the best service at the best price," said Kober.
 The second, the environment, leaves RG&E with two choices - either spend money continually cleaning up air and water pollution or make more modest investments in programs that avoid pollution.
 A third force that is driving the utility industry is new technology. Kober explained that RG&E is learning about new ways to generate electricity. This new generation may be cheaper and cleaner and offer the opportunity for beneficial partnerships with some of the company's large customers.
 "And finally, a fourth knock at our door is coming from our customers," said Kober. "Their message is simple: 'Listen to us. Our needs are changing.' Our reply needs to be: 'We're listening and we hear you. We're changing, too.'
 In order to meet the new challenges, Kober introduced the company's New Business Plan. The plan spells out the performance expected from all employees over the next five years.
 The goals are in six areas:
 CUSTOMER SERVICE
 THE PRICE OF GAS AND ELECTRICITY
 SAFETY
 EMPLOYEE ACHIEVEMENT AND PRODUCTIVITY
 PUBLIC ACCEPTANCE
 FINANCIAL PERFORMANCE
 "The results of our work in the first five goals will produce results in the sixth - financial performance," said Kober. "A company which gives its customers the service they want at a competitive price, delivered safely by productive, innovative employees and with strong public approval - that's a company most likely to achieve solid financial performances," Kober added.
 Kober gave specific examples of achievements to date and cited goals the Company has set for the future.
 He concluded his remarks with a mention of RG&E's corporate vision.
 "This vision is a statement about what we are as a company, and what we want to become. It is at the very beginning of our business plan. It reminds us that the best interests of all of us - customers, employees, regulators, the public and shareholders - are joined as we set out on this mission of change. The vision concludes by saying: 'Our performance will be the standard of excellence against which other utilities are measured.' We mean to achieve that," said Kober.
 -0- 5/20/92
 /CONTACT: Richard Peck of RG&E, 716-724-8813/
 (RGS) CO: Rochester Gas & Electric Corporation ST: New York IN: UTI SU:


CG -- CL021 -- 2434 05/20/92 15:44 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:May 20, 1992
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