ALBANY, N.Y., and PORTLAND, Maine, Oct. 24, 2002 — As part of its ongoing system-wide integration, Energy East Corp. announced a voluntary early retirement program for salaried employees of its six operating utilities which include The Berkshire Gas Company, Central Maine Power Company, Connecticut Natural Gas Corporation, New York State Electric & Gas Corporation, Rochester Gas and Electric Corporation, and The Southern Connecticut Gas Company.
Full-time salaried employees who will be at least age 55 and have 10 or more years of service by March 31, 2003 will be eligible for the program. Approximately 550 employees meet those eligibility requirements.
“This voluntary early retirement program is an important step in the comprehensive integration and efficiency initiative we began this spring,” said Wes von Schack, Energy East’s chairman, president and chief executive officer. The Integrating EExcellence initiative has involved hundreds of employees throughout the organization who are redefining how the company will run its business in the future. The savings from this initiative are essential for us to meet the efficiency targets imputed in utility rates by regulators, as well as meet the expectations of our customers and investors.”
In addition to the voluntary early retirement program, Energy East also stated an involuntary severance program would be utilized by the operating companies after they determine the additional positions that must be eliminated to achieve optimum organizational efficiency and effectiveness.
The number of employees affected by an involuntary program will be determined in the first quarter of 2003. More details on the results of the company’s integration efforts will become available later this year. Energy East expects to incur a one-time restructuring charge of between $50-$100 million in the fourth quarter of 2002.
About Energy East:
Energy East is a super regional energy services and delivery company that our customers can depend upon every day. It serves nearly 3 million customers (1.8 million electricity, 1 million natural gas and 200,000 other retail energy customers) throughout upstate New York and New England.