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O&R Media Relations • Michael W. Donovan • 845-577-2430

Regulators OK PCL&P Electric Service Improvement Pact

MILFORD, PA February 29, 2008 — The Pennsylvania Public Utilities Commission (PAPUC) yesterday approved the joint settlement of a complaint case brought by Pike County and a number of other parties against Pike County Light & Power Company (PCL&P).

The case posed questions about PCL&P's electric delivery service and electric supply rates that went into place in January 2006 when price caps were removed in compliance with orders from the Pennsylvania Public Utilities Commission (PAPUC). The settlement resolves these questions.

As part of the settlement agreement PCL&P has announced a set of far-reaching plans aimed at substantially fortifying its electric system in Pennsylvania and improving service to its electric customers in the state over the next five years and beyond.

Those plans feature the opening of a new customer service office in Milford, the establishment of a Community Advisory Council, more frequent and aggressive vegetation management to reduce the frequency and extent of outages caused by tree-related interference and the construction of several major new electric service reliability projects, including the possible construction of a new electric substation in the Milford area and the installation of a new third main transmission line to feed Pike County.

PCL&P Vice President of Customer Service James J. O'Brien said, "Under this joint settlement, our system will have more thorough maintenance requirements, stronger customer support goals and a deeper commitment to the community it serves."

PCL&P is a regulated utility that provides electric service in Pike County, Pa. to approximately 4,500 customers in the Townships of Westfall, Milford and the northern part of Dingman and in the Boroughs of Milford and Matamoras. PCL&P also serves 1,200 gas customers in Westfall Township and the Borough of Matamoras.

Pike County Light & Power Company (PCL&P) is a wholly owned subsidiary of Orange and Rockland Utilities, Inc. (O&R), which is a wholly owned subsidiary of Consolidated Edison,