Old School We're Not

We approach energy differently.

Driving Cost out of our business

Better, faster and at a lower cost-our goal is to achieve $180 million in productivity gains by 2008. Our objective is to lower the per unit cost of what we do.

Up to $150 million of our planned productivity gains will come from our generation fleet, where we're increasing the output of our plants, reducing expenses and streamlining our processes.

Over the past year, using productivity programs like Six Sigma, we have successfully implemented new systems and processes that have boosted efficiency throughout our company, and we anticipate realizing further benefits from these initiatives.

INVESTING TO ACHIEVE SUPERIOR RETURNS

Our strong cash flow helps us further strengthen our already strong balance sheet-our aim is a 40 percent debt-to-total capitalization ratio by 2006-and will enable us to invest in opportunities to grow our business.

We're cautious consumers of capital, continually looking at the best way to invest in our business.

We have a proven track record of successful acquisition and integration. The Ginna Nuclear Power Plant and NewEnergy-along with the follow-on competitive supply acquisitions we have made in natural gas and electricity-have produced earnings that are significantly higher than initial projections.

We'll continue to look for investments that will build our competitive energy business and create additional value for our shareholders.