PORTLAND, Maine, March 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Energy East
Corporation [NYSE: EAS] today announced it will seek to issue up to 10 million
common shares generating gross proceeds of approximately $240 million. These
common shares are to be offered by a group of underwriters led by Morgan
Stanley under Energy East's effective shelf registration statement filed with
the Securities and Exchange Commission.
Proceeds from the offering will be used for the redemption of debt and for
general corporate purposes, including regulated construction expenditures.
The company plans to invest over $3 billion through 2011. Major planned
investments include:
- $500 million for advanced metering infrastructure in New York and Maine.
This investment will provide customers with pricing information
throughout the day, promote conservation and improve operational
efficiencies
- $500 million in transmission investments, predominately in Maine, which
will improve electric grid reliability and promote renewable generation
- $500 million for the repowering the Russell Station power plant using
clean coal technologies.
The company estimates that these efficiency investments could result in
CO2 reductions of close to 1 million tons annually, the equivalent of taking
175,000 cars off the road.
About Energy East: Energy East Corporation [NYSE: EAS] is a respected
super-regional energy services and delivery company serving about 3 million
customers throughout upstate New York and New England. By providing
outstanding customer service and meeting customers' energy requirements in an
environmentally-responsible manner, Energy East will continue to be a valuable
asset to the communities we serve.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any sale
of these securities, in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The offering of these securities may
be made only by means of the prospectus and related prospectus supplement
relating to the offering. Energy East has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus in
that registration statement for this offering and other documents Energy East
has filed with the SEC for more complete information about Energy East and
this offering. You may get these documents for free by visiting EDGAR on the
SEC Web site at www.sec.gov. Alternatively, Energy East, any underwriter or
any dealer participating in the offering will arrange to send you the
prospectus if you request it by contacting Morgan Stanley & Company Inc. by
phone at 1-866-718-1649, by email at prospectus@morganstanley.com or by mail
Morgan Stanley & Co. Incorporated, Prospectus Department, 180 Varick Street,
New York, NY, 10014.
This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such forward-
looking statements with respect to revenues, earnings, performance,
strategies, prospects and other aspects of the businesses of Energy East are
based on current expectations that are subject to risks and uncertainties. A
number of factors could cause actual results or outcomes to differ materially
from those indicated by such forward-looking statements. These factors
include, but are not limited to, risks and uncertainties set forth in Energy
East's filings with the SEC, including risks and uncertainties relating to:
adverse conditions contained in any regulatory orders, changes in laws or
regulations, economic or weather conditions affecting future sales and
margins, changes in markets for electricity and natural gas, availability and
pricing of fuel and other energy commodities, legislative and regulatory
changes (including revised environmental and safety requirements),
availability and cost of capital and other similar factors. Readers are
referred to Energy East's most recent reports filed with the SEC.
SOURCE Energy East Corporation
Marc Siwak, Director - Investor Relations, +1-207-688-4336
http://www.prnewswire.com
