Dynegy has agreed to manage all of Rochester Gas &Electric’s (RG&E) gas supply, transportation and storageassets, and help find ways to cut costs and optimize assets.

The two-year deal, effective July 1, is a full-service energysupply and asset management transaction. Dynegy will managecitygate delivery of about 450 MMcf/d of firm capacity combinedwith 12 Bcf of firm storage. Dynegy will become a major gassupplier to RG&E and act as agent for all third-party supplycontracts.

“We believe that relationships such as this represent the futureof local distribution company asset management,” said SteveBergstrom, Dynegy senior vice president.

“RG&E views this agreement as a significant opportunity toenhance our ability to provide reliable and cost effective serviceto our customers,” said Clif Olson, RG&E energy supply groupmanager.

Dynegy currently manages more than 3 Bcf/d of transportation, 50Bcf of storage and 550 MMcf/d of natural gas supplies on behalf ofits customers. RG&E supplies electric and gas services withinthe New York state and is engaged in production, transmission,distribution and sale of service in the nine county areasurrounding Rochester. RG&E serves 280,000 gas customers and350,000 power customers.

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