EAS Energy East Corp

PORTLAND, Maine, July 31 /PRNewswire-FirstCall/ -- Energy East Corporation (NYSE:EAS) today announced its second quarter financial results. Earnings per basic share for the second quarter 2008 were 10 cents compared to 12 cents per share earned in the second quarter 2007. For the 12 months ended June 30, 2008, earnings per basic share were $1.56 compared with $1.68 per share for the 12 months ended June 30, 2007. Earnings per basic share for the second quarter of 2008 were 2 cents lower than second quarter 2007 earnings of 12 cents per share. Results for the quarter included a charge of two cents per share resulting from provisions of Central Maine Power Company (CMP)'s new rate plan which was approved by the Maine Public Utilities Commission in June 2008. As part of this rate plan, CMP was required to write off $5.2 million in previously deferred costs, including $4.1 million in storm costs. Merger Update To date, all regulatory approvals have been received for Energy East's acquisition by Iberdrola with the exception of approval from the New York State Public Service Commission (NYPSC). The New York merger approval proceeding culminated in early July with the submittal of Briefs Opposing Exceptions to the Administrative Law Judge's recommended decision, and Energy East and Iberdrola are awaiting a NYPSC decision. Energy East is currently unable to predict either the outcome of this proceeding or the timing of a NYPSC decision. Unaudited Consolidated Statements of Income and Energy Distribution and Weather Statistics are presented on the following pages. In addition, Energy East today filed its Form 10-Q with the Securities and Exchange Commission. The document contains additional details regarding second quarter 2008 financial results and is available on Energy East's website: http://www.energyeast.com/. Shareholders may obtain a free copy of our Form 10-Q by contacting Investor Relations at (207) 688-4386. Forward Looking Statement: This communication contains forward-looking information and statements about Energy East. Forward-looking statements are statements that are not historical facts. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects," "anticipates," "believes," "intends," "estimates" and similar expressions. Although the management of Energy East Corporation believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Energy East Corporation shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Energy East Corporation, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward- looking information and statements. These risks and uncertainties include those discussed or identified in the public documents sent by Energy East to their regulators and under "Risk Factors" in their annual and quarterly reports filed with the SEC. Except as required by applicable law, Energy East undertakes no obligation to update any forward-looking information or statements. About Energy East: Energy East 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 friendly manner, Energy East will continue to be a valuable asset to the communities we serve. Energy East Corporation Consolidated Statements of Income - (Unaudited) Three Months Twelve Months Period Ended June 30, 2008 2007 2008 2007 (Thousands, except per share amounts) Operating Revenues Utility $957,915 $977,006 $4,581,291 $4,718,605 Other 124,361 112,020 542,979 506,387 Total Operating Revenues 1,082,276 1,089,026 5,124,270 5,224,992 Operating Expenses Electricity purchased and fuel used in generation Utility 317,416 351,412 1,360,625 1,472,205 Other 96,490 85,164 379,193 353,791 Natural gas purchased Utility 195,634 174,232 1,145,871 1,110,286 Other 14,189 12,120 91,456 80,632 Other operating expenses 199,936 203,503 841,178 801,295 Maintenance 43,769 48,809 165,691 216,855 Depreciation and amortization 69,513 68,273 278,433 280,176 Other taxes 61,451 58,787 260,806 252,204 Total Operating Expenses 998,398 1,002,300 4,523,253 4,567,444 Operating Income 83,878 86,726 601,017 657,548 Other (Income) (7,426) (10,752) (33,100) (48,523) Other Deductions 2,577 1,423 10,019 21,085 Interest Charges, Net 69,234 67,855 277,654 291,217 Preferred Stock Dividends of Subsidiaries 282 282 1,128 1,129 Income Before Income Taxes 19,211 27,918 345,316 392,640 Income Taxes 4,256 8,427 99,893 141,549 Net Income $14,955 $19,491 $245,423 $251,091 Earnings per Share, basic $.10 $.12 $1.56 $1.68 Earnings per Share, diluted $.09 $.12 $1.55 $1.67 Dividends Declared per Share $.31 $.30 $1.23 $1.19 Average Common Shares Outstanding, basic 157,016 157,112 157,137 149,627 Average Common Shares Outstanding, diluted 158,299 158,122 158,277 150,500 Energy East Corporation Energy Distribution Statistics - (Unaudited) Three Months Twelve Months Periods Ended June 30, 2008 2007 % change 2008 2007 % change Electricity (thousands of megawatt-hours) Residential 2,648 2,784 (5%) 12,257 12,428 (1%) Commercial 2,351 2,470 (5%) 9,892 9,887 - Industrial 1,857 1,945 (5%) 7,337 7,167 2% Other 564 545 3% 2,338 2,249 4% Total retail 7,420 7,744 (4%) 31,824 31,731 - Wholesale 1,005 1,783 (44%) 5,836 8,050 (28%) Total Deliveries 8,425 9,527 (12%) 37,660 39,781 (5%) Natural Gas (thousands of dekatherms) Residential 9,901 11,493 (14%) 74,110 75,846 (2%) Commercial 3,439 4,234 (19%) 24,397 25,567 (5%) Industrial 486 539 (10%) 3,495 3,564 (2%) Other 2,692 2,698 - 13,025 13,494 (3%) Transportation of customer-owned gas 16,927 16,885 - 79,315 77,955 2% Total retail 33,445 35,849 (7%) 194,342 196,426 (1%) Wholesale 86 267 (68%) 1,777 638 179% Total Deliveries 33,531 36,116 (7%) 196,119 197,064 - Energy East Corporation Weather Statistics - (Unaudited) Three Months Ended June 30, 2008 2007 Normal New York Heating degree days 806 910 957 (Warmer) than prior year (11%) (Warmer) than normal (16%) New England Heating degree days 731 824 835 (Warmer) than prior year (11%) (Warmer) than normal (12%) DATASOURCE: Energy East Corporation CONTACT: Energy East Corporation, Investor Relations, +1-207-688-4386 Web site: http://www.energyeast.com/

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