O&R Gas Pilot Program Seeks to Create New Jobs; Economic Growth Aim of Orange County Project

PEARL RIVER, NY October 1, 2007 — In an effort to help further stimulate economic growth in Orange County, O&R is investing a half-million dollars in an innovative pilot program aimed at making prime underutilized properties, in good locations zoned for business, more attractive to commercial development by installing natural gas service.

Normally, if gas service is not already available to a building or the building is newly constructed, the customer must request gas service from O&R and the Company then will install new gas mains in the street with individual service lines to the building's door.

Under the pilot program approved by the New York State Public Service Commission (NYSPSC), O&R is building the delivery service in commercially zoned areas that the two pilot towns have targeted for development in anticipation of new customers arriving, developing the properties and requesting service for new buildings.

O&R Vice President – Operations Jim Tarpey said, "This program underscores our faith in the future of these communities and further demonstrates that we are partners in the community's prosperity. This new strategy helps achieve that prosperity in three ways: it further directs commercial growth to areas specified by the town, it creates jobs for community residents and it stabilizes taxes by broadening the tax base."

The pilot program is aimed at making high-value properties into very high- value properties by taking the pro-active step of installing gas mains. That step significantly increases the property's worth and dramatically reduces the time for a new building to open for business.

O&R collaborated with the Orange County Partnership to identify growth corridors and proper zoning to site the pilot projects throughout O&R's Orange County service area.

Maureen Halahan, President and CEO of the Orange County Partnership, said, "This type of forward-thinking construction of infrastructure is just what we need now in Orange County," she said. "With this pro-active approach, customers will avoid the normal wait times associated with connection to the utility."

The pilot program, which has been dubbed the Gas Economic Development Pilot Program (GED) has developed two projects.