Remember when the RG&E really cared about it's Employees and Customers ?
Yes we all do, but that is not the case any longer. AND, please note the situation
at the RG&E today is not the fault of the "real" RG&E employees. It is the fault of
Kober, Laniak, Richards Energy East, Iberdrola and now Avangrid.
Shortly before I retired from the RG&E, Ron Gay gave me a list of several substations
that could no longer maintain load if one transformer failed. Plans were drawn up and parts were ordered.
However, when Energy East took over, all of this was scrapped, and parts that had arrived were sent back.
(I don't know if this was ever reversed)
Electric SubStations had over 120 very dedicated, well trained employees who Engineered, Tested, and Maintained
all of the substations on the system, including Russell, Bee Bee, Ginna Stations and all the Hydro Stations.
And ESD did a great job. ESD has less than 20 employees now. So you may draw your own conclusions as to how much
is being maintained.
The RG&E has very little Generation left. When the Grid goes down, and it will, Monroe County will be
in the dark until the Grid can be restored. Power plants are not self starting. When the Grid has gone down
in the past, we would route the power from Station 5 (Hydro) to Russell Station, which would allow Russell
to start up. With Russell, Bee Bee and the peaking units all gone, we do not have that ability now.
And some people who have installed Gas Generators feel safe. But in the event of a long Grid outage,
the Gas stops flowing as well.
Lastly, why in Hell did the PSC allow a foreign company to own our Public Utilites ?
Dave Kaspersin
|
The PSC has decided "We The Rate payers" have to pay to bail out Ginna Starting September, 2015.
(Actually we are bailing out the RG&E weak infrastructure)
I feel this is not in the best interest of "We The Rate payers".
1. Iberdrola and Energy East have not allowed the RG&E'S to keep its infrastructure up.
2. Does anyone believe that Exelon has 700 employees ALL doing Ginna work ?
3. I know first hand the RG&E needs Ginna to keep "We The Rate payers" in electricity.
4. But the charges should be paid by Iberdrola and Energy East, not "We The Rate payers".
5. Rochester-area rate payers will be required to pay $175 million in special surcharges over the next 3 1/2 years
to prop up the Wayne County plant.
(And I don't believe it will only be for 3 1/2 years)
6. Resident customers would pay about $163 more over that time period, while commercial and industrial could face
much higher surcharges.
7. I do not believe this figure - $163
8. A typical small restaurant (4,000 sq. ft.) in Rochester pays between $3,000 and $4,000 per month for Gas and Electric.
9. "We The Rate payers will pay for their increases as well.
Where the money went after de-regulation:
The only people who benefited from Utility de-regulation are the executives
from the companies who were ultimately in charge.
Tom Richards reportedly made off with $10M from RG&E, Wes Von Shack about
$60M. We saw on Yahoo Finance Insider Trading online where the
Constellation execs cashed in anywhere between $10M and $20M per month for
about 3 years. Those people literally made off with hundreds of millions of
dollars, all while kicking the butts of the people working for them. Their
stock went from $100+ per share down to about $12 after getting so far in
debt trading energy futures Enron-style. Warren Buffet bailed them out with
10 billion dollars short term, then the French bought half of all the
Constellation Nuke plants with the promise of building more plants in the US.
Peace & Justice - de-regulation article
|
Six reasons to say no to a smart meter
Smart meter' signals new era for utility customers
Dangers of Over Pruning
Or how the RG$E destroyed my property !
Wind Storm of 2017
Hazard at Bee Bee and Russell Station
PSC Case # psc811586 Jan 17, 2018
(The outage that wasn't ?)
PSC Case # 613798 Feb 12, 2016
psc811586.html
Request to suspend Demand Charges
and provide rebates to all demand billed customers,
with interest and penelties dating back to 2001
New York’s electricity market is a scam
State operators rig prices not to fall, thanks to lax regulators.
September 2, 2015
by David Cay Johnston
Biggest mistake Iberdrola, Energy East and The RG&E have ever made !
Click here for pictures of Iberdrola's Worst Mistake !
PSC Case # 518512 March 13, 2015 Concerns about RG&E'S ability to supply power.
PSC Case # 518512 March 24, 2015. Answer from the RG&E.
Click Here For An UPDATE on Ginna Station March 06, 2015
Click Here For An UPDATE on Russell Station January, 2015
Click Here For The Actual
Cost to Bail out Ginna and the RG$E
Russell Station Closing Brochure.PDF
In North Greenbush, Rensselaer County: The New York Independent System Operator,
which oversees the state's electrical grid, says there will be plenty of power
for the next 10 years, the Albany Times Union reports. NYISO tempers its optimism
by noting that if environmental policies change, or if one of the two Indian Point
nuclear reactors downstate is shut down, the outlook could change.
NY Independent System Operator
http://www.nyiso.com/public/index.jsp
http://www.ferc.gov/market-oversight/mkt-electric/new-york.asp
https://reports.energy.gov/BlackoutFinal-Web.pdf
The Unit 1 reactor at Indian Point, was shut down on October 31, 1974
because the emergency core cooling system did not meet regulatory requirements.
All spent fuel was removed from the reactor vessel by January 1976. T
he licensee, Entergy, plans to decommission Unit 1 with Unit 2.
The two additional reactors, Indian Point 2 and 3, were built in 1974 and 1976.
Together they generate 30% of the electricity used in New York City.
On May 2, 2007 the NRC announced that the "License Renewal Application for
Indian Point Nuclear Plant is available for Public Inspection". Entergy has
formally begun the lengthy process of applying to have the operating licenses
of each unit extended by 20 years.
Unit 2 - 1032 megawatts
Unit 3 - 1051 megawatts
The plants are 36 and 34 years old.
By comparison Ginna is 500 MW
Ginna went online in 1970.
It is 40 years old and was originally expected to last 20 years.
Russell Station generated almost 300 MW
Bee Bee Station 100 MW
So the 400 MW from the above are now being sucked out of the grid.
The Grid is destined to fail.
We only need a very hot summer or a few more plants to be shut down.
Update 01/15
Exelon Corp. (EXC), the biggest U.S. owner of nuclear reactors,
needs to almost double power prices to keep a New York plant running
in a move that promises to show just how far regulators will go to
keep uneconomic plants operating.
After recording losses that exceeded $100 million from 2011 to 2013,
Exelon will need to charge about 83 percent more than wholesale prices
to earn a profit at its Ginna plant, based on company cost estimates.
State regulators have set a Jan. 15 deadline for a new power contract
that’s rich enough to keep the Rochester-area plant running.
E-4.3 Need for the Proposed Project
During a long-term outage of the Ginna generation at a load level of 1,435 MW, subsequent loss
of the 345 kV/115 kV 462 MW transformer #5 at Station 80 will cause the Station 80 345
kV/115 kV transformers #1 and #3, and all the three Station 122 345 kV/115 kV transformers to
be at their full capacity. Thus at peak load levels reached in 2001, the system reached its full
capacity under single contingency conditions.
Dave's translation:
No Ginna
Grid fails
Rochester goes dark
"Part of the motivating factor behind that decision was the acknowledgement from both RG&E
and the Public Service Commission about the potential vulnerability of the Western New York
electrical grid if Ginna were to close."
Have your gas heating bills been very high all winter ?
Please tell me about it.
E-Mail:drk@dynrec.com
Please put "High Heating Bills" in the subject line.
If you live in Rochester, NY
and you are having problems with your appliances or electronic devices
HAVE YOUR VOLTAGE CHECKED by a company you trust.
With Russell Station off line I expect major low voltage problems!
Click For More on Voltage Problems.
Rochester Transmission Project Segment 5, circuit 927
And I didn't even have to doctor it. They sent it out this way :)
Received May 30, 2018
06/22/05
BREAKING NEWS IN WHITE COLLAR CRIME
IN Rotten' ROCHESTER NY
KODAK, The TOWN OF GREECE AND The RG$E
HAVE SCREWED ALL OF US !
Updated 01/05
The RG$E, Energetix and Energy East have come up with a way to cash in on the so called Rate Freeze.
Check your bills carefully and if you see something
that doesn't make sense, send your questions and concerns to me.
Send to Dave Kaspersin:
E-Mail:drk@dynrec.com
Some Points:
If you chose the RG$E Fixed Price Option,
it consists of a fixed RG$E supply charge
AND A FIXED TRANSISTION CHARGE.
The fixed supply charge includes the cost
of electricity PLUS the costs of procurring electricity
and
(Now Get This)
managing the RISK of a fixed supply charge.
What the RG$E fails to mention is,
no matter which "choice" the consumer makes
the RG$E levies a delivery charge.
And this is where they get us !
Also what I found buried in the gibberish is the fact that by choosing
the"fixed rate" you are paying more than energy has been in the
last 6 or more months. You are choosing to pay higher than the
current variable rate as a hedge against extreme price volatility.
Remember RG$E, Energetix and Energy East are ONE AND THE SAME.
==================================================================
Our Heritage
Energetix, Inc. is a full-service energy supplier providing natural gas and
electricity along with energy related products and services for homes
and businesses. Energetix, founded in 1998, has become the leading
unregulated energy supplier in upstate New York serving over 90,000 customers.
Headquartered in Rochester, New York, Energetix is a wholly owned subsidiary of
Energy East Corporation and an affiliate of Rochester Gas and Electric Corporation
==================================================================
More To Come. I am digging for answers right now.
Updated 05/04
Rate freeze for RG&E
(May 20, 2004) — After many months of debate, it’s finally official.
Rochester Gas and Electric Corp. can proceed with plans to sell its
Ginna nuclear power plant. And the utility must freeze the rates it
charges for delivering electricity and natural gas through 2008.
The state Public Service Commission, meeting for the first time ever
in Rochester, voted Wednesday to approve both those plans, including
the resolution of the utility’s rate case, first announced in March.
”Businesses and residential people can make decisions, whether it be
on their monthly bills or businesses going forward on where their
energy prices are going to be,” PSC Chairman William Flynn said during
Wednesday’s meeting.
But even with the rate freeze, the bill for the average customer will
rise slightly. That’s because of new charges and increased fees for
hookup to RG&E’s systems, also approved as part of the rate case.
RG&E will raise the basic service charge for residential customers
from $19 to $20. The residential basic service charge, or fee to be
hooked up to the gas system, will increase from $13.50 to $15 a month.
The result The average residential electricity customer — someone who
uses 600 kilowatt hours per month — will pay 68 cents more per month,
about $8.16 a year.
The average residential gas customer — someone who uses 90 therms per month —
will pay $2.53 more per month, an annual increase of about $30 a year.
Bills could also rise due to the price of natural gas, since the utility can
adjust those costs based on fluctuations in the market.
Charles Straka of Perinton, who represented ratepayers in the rate negotiations
between the PSC and RG&E, supports the commission’s ruling. RG&E has 356,000
electricity and 292,000 natural gas customers.
”It provides a degree of price stability in a market that basically is going crazy,
” Straka said.
The approved increases are significantly less than the 12.4 percent average
electric and 6.4 average natural gas increase RG&E had sought.
The utility argued that it needed to raise rates because of rising costs
and decreasing earnings.
”This new agreement will present a significant challenge for RG&E,” Jim Laurito,
president of RG&E, said in a statement issued Wednesday. The utility did not
have a spokesperson at the meeting.
The Robert E. Ginna nuclear power station will be sold to Baltimore-based
Constellation Generation Group for $422.6 million. The agreement also
requires RG&E to return $110 million over the next four years to customers
from the proposed sale of Ginna.
The average residential electric customer is guaranteed an initial check of $46
shortly after Ginna is sold. “The sale is consistent with our policy goals and
assists in fostering the competitive generation market in New York,” Flynn said.
RG&E still needs approval from the Nuclear Regulatory Commission and other
agencies before the sale can be completed. The utility expects to complete
the sale by the end of June. The NRC announced Wednesday that it extended
the plant’s operating license until Sept. 18, 2029, based on findings of a
nearly two-year review.
Updated 01/04
Rochester Gas and Electric
has issued a statement in response to a Public Service Commission staff report
urging that RG&E’s request to increase gas and electricity rates be denied.
The company statement said that
“while costs have continued to rise,
rates for residential electric have decreased 10 percent since 1996."
Considering inflation, this amounts to an 18 percent decrease in electric rates.
This next part is really hilarious Because the RG$E hasn't
provided "essential electricity service" for at least the last 10 years !
And if they wern't a MONOPOLY they couldn't issue a threat like this !
"With costs rising and with no increase in rates over the past 10 years,
(RG&E) can no longer maintain the quality of its operations and provide
essential electricity service.”
Instead of a rate increase
what they need is a corporate pay decrease
starting with von Schack !
Enron Energy East Utility paid chief $5.1 million !
And it would be a good idea to make
Tom Richards should give his $10.4 million payout back !
Dave Kaspersin
**NEWSFLASH**
Rochester Gas &Electric Corporation
Punishes Customers With Slow Reconnects !
CLICK HERE!!!
**NEWSFLASH**
Rochester Gas &Electric Corporation displaces
customer disabled with Multiple Chemical Sensitivity
from her home for more than 20 months.
CLICK HERE!!!
Updated 11/03
ALL RG$E top management have been
replaced by Enron East people.
I mean Energy East people.
So much for the merger promises:
The merger papers provided to me (Dave Kaspersin)
by Energy East and Mellon Investor Services,
clearly state on pages 65 and 66, that Tom Richards
would be in control and that the corporate offices
would remain in Rochester. Page 65 Mr. Richard's Employment Agreement.
We and Mr. Richards have entered into an employment
agreement that will become effective when the merger is completed.
Corporate Offices.
At and subsequent to the effective time of the merger,
the corporate headquarters of the surviving company,
RG&E, NYSEG and Energy East Management Corporation,
a wholly owned subsidiary of Energy East, will be located in
Rochester, New York. Energy East Management will have
approximately forty employees in Rochester as of the
effective time of merger. The operating headquarters of NYSEG
will remain in Binghamton, New York. Page 66 Transition Management.
The parties will create a special task force, jointly chaired by
Mr. Richards and Mr. Jasinski, with an equal number of members
appointed by RGS Energy and Energy East. This task force will
assist in transition management of the surviving company and subsidiaries.
Rochester Gas and Electric. Following the completion of the merger,
there will be four members of the board of directors of RG&E.
Each of Energy East and RGS Energy will appoint two members.
Energy East intends to appoint Mr. von Schack and Mr. Jasinski,
and RGS Energy intends to appoint Mr. Richards and one other person.
The officers of RG&E will be those in office immediately prior to
the effective time of the merger, plus new officers recommended
by the transition management task force. Each of the officers
and directors will continue to serve until his or her successor
is duly appointed or elected.
RGS/Energy East Merger Is Generating Questions About Broken Promises
Don't be left in the DARK. Read This.
Dave Kaspersin
CORPORATE DOWNSIZING
Dear Valued Employee,
Due to the recent economic downturn, our Christmas bonuses are not
as big as we expected. The members of the board have agreed
to a series of cost cutting measures….
YOU are going to be sacked.
The cost cutting measures will be across all departments,
which will include but not limited to streamlining costs...
no rise in salary again...and cross training....
you'll be asked to do twice as much and still get paid the same salary
just to keep your job.
For long serving staff....the ones who were climbing the corporate
"career ladder" ... and senior management ...
top heavy management fat cats...,
the board has agreed a comprehensive retirement package...
the senior management will get fat cat bonuses and be hired
back as "consultants", the "career ladder" climbers will
be given a severance package which will not be enough to
buy their children shoes.
We sincerely regret this course of action and will be
available to answer and address your concerns...
security will escort you off the premises should you ask for a valid explanation.
Sincerely,
Corporate Greed
Update 05/01/03
Democrat and Chronicle
(May 1, 2003) — Energy East Corp. said that about 245 jobs at
Rochester Gas and Electric Corp. and 260 at
New York State Electric & Gas Corp.
were eliminated as a result of early retirement programs and layoffs.
Energy East said it expects more job reductions early next year.
RG&E had 1,916 workers as of Jan. 31, the latest figure made available by the utility
Update 04/11/03
RG&E asks to recover $15 million in storm costs
By Todd Grady
Democrat and Chronicle
(April 11, 2003) — Rochester Gas and Electric Corp. has
started the process of recovering its costs from the ice storm.
The utility has asked the state Public Service Commission
to allow it to include $15 million in estimated expenses
as a possible factor in determining future rates. RG&E
has also asked the PSC to consider $16.3 million for
replacement power that will be needed during
refueling of the Ginna nuclear power plant this fall.
Michael Tomaino, former senior vice president and
general counsel for RG&E, said ice storm costs of
this magnitude are eventually recovered from customers.
“The rates that are in place now are not set with any
extraordinary costs of this nature in mind,” he said.
Following the 1991 ice storm, RG&E tallied about
$36 million in costs and asked the PSC to recover
$29 million through rates. The PSC allowed
$20.8 million in rates, to be allocated over 10 years,
after ruling that RG&E wasn’t prepared for the serious storm.
RG&E President Paul Wilkens said Thursday that storm
repair costs are “likely to be in excess or perhaps
significantly in excess of $15 million, (but) it
would be a while before we get a final accounting.”
Much of the costs go to reimbursing the 29 companies
that sent crews to help restore power.
In the letter to the PSC, RG&E asked for expedited
consideration of its request, saying the utility is in
“financial distress.”
In March, the PSC denied RG&E’s request for an
electricity rate increase.
“Provided there is full-cost recovery of this kind of
extraordinary event, then it by itself will not impact
the financial health of the company,” Wilkens said.
PSC spokesman David Flanagan said it’s too early
to say when the costs might show up in customers’ bills.
“That all depends on what the commission ultimately
does with this request,” Flanagan said.
RG&E needs PSC approval to raise rates.
Wilkens said he is confident the utility’s full costs
can be recouped in rates.
“The history of the Public Service Commission with
this kind of event has been as long as the costs
are prudent, there would be recovery,” Wilkens said.
But he added there’s no guarantee the PSC will
approve the request.
RG&E doesn’t expect costs for this storm to be as high
as they were in 1991.
“This time around, I think the organization has
performed much more quickly,” Wilkens said.
--------------------------------------------------------------------------------------
And here is the truth about the storm outages:
What made this storm bad was a lack of tree trimming.
Something that has been scaled back over the last 10 years.
Instead of wasting Millions on the execs, and Richards,
they should be spending it on the system!
If they were running their business right,
they would not need rate increases.
The Sodus district got hit the hardest because that is where
tree trimming was cut back first.
Dave Kaspersin
Update 03/06/03
PSC denies full RG&E rate increases
By Jay Gallagher and Todd Grady
Democrat and Chronicle
(March 6, 2003) — Rochester Gas and Electric Corp.
customers will pay slightly more to get natural gas
delivered, just as an already expensive winter heating
season comes to an end.
On Wednesday, the state Public Service Commission
unanimously approved a 1.7 percent increase in
natural gas delivery rates for 296,000 customers
in RG&E’s territory. But the PSC voted against
changing base electricity rates.
As a result, RG&E will be forced to file another
case on an emergency basis because the
commission’s ruling “ignores actual costs the
company has incurred and will continue to incur
in providing safe and reliable electric
and gas service,” RG&E said in a statement.
The utility also said it will appeal the decision to the courts.
Company spokesman Mike Power declined to
answer any questions or provide additional comment.
The PSC ruling gives RG&E far less rate
relief than the utility had requested. Electricity
rates have been declining since 1996, while
natural gas rates have remained almost flat
since 1994. Meanwhile, the utility said its
costs have risen significantly.
“This decision will provide adequate revenues
to allow RG&E to significantly reduce a
substantial amount of deferred costs it has
on its books and realize a fair return on
equity,” said PSC Chairman William Flynn.
“Deferred costs” are bills the utility has built up in
previous years with the intention of paying them off later.
RG&E was also given the go-ahead to raise the
basic monthly service charge for electricity from
$17.50 to $19 and the natural gas service charge
-- part of that 1.7 percent increase -- from $12 to $13.50.
The average residential customer, who uses 600
kilowatt hours a month, will see no impact.
Generally, those who use small amounts of
electricity will see a small increase because of a
$1.50-a-month increase in the basic user fee.
The new rates go into effect Tuesday,
said David Flanagan, PSC spokesman.
The new rate year began Jan. 15, but charges
won’t show up on customer’s bills until
March because the PSC structured the rates
in such a way to allow RG&E to recoup
its money without retroactive billing.
“It’s unfortunate that the gas rate is going
up 1.7 percent at a time when usage is
very high,” said Charles Straka, a ratepayer
from Perinton who was involved in the rate negotiations.
Flynn said the commission would be watching RG&E
closely because of some complaints about the
company since it became part of Energy East Corp.
He said the commission has received complaints that
RG&E and Energy East have broken some promises
made when they were seeking commission
permission to merge.
Under the terms of the merger,
former RG&E Chief Executive Thomas S. Richards
was to run RG&E and New York State Electric & Gas Corp.
from Rochester. But Richards resigned hours after the
companies merged in what was reported to be a
disagreement with Energy East management.
In addition, Energy East said it would move about
40 jobs to Rochester but hasn’t done so.
RG&E was supposed to get three spots
on the parent company’s board but has only one.
RG&E is also in the process of laying off workers
after promising any job reduction would be made
through attrition. RG&E has targeted 254 jobs for elimination.
“I am instructing staff today to continue to monitor
those matters,” Flynn said. “Specifically,
I am today requesting staff provide me with a
status report on each of those issues.”
E-mail addresses: tgrady@DemocratandChronicle.com
jggannett@yahoo.com
Jay Gallagher is Albany bureau chief.
Update 01/18/03
RG&E cutting 225, offers choice
By Todd Grady
Democrat and Chronicle
(January 18, 2003)
— Rochester Gas and Electric Corp.
is cutting 225 positions, and the company said Friday
that people holding those jobs can accept a severance
package or apply for other positions within RG&E or
the other five Energy East utilities.
RG&E employs about 2,000 people. Nearly 200 were offered
voluntary early retirement in October, but the utility
has not disclosed how many accepted.
“The economic, competitive and regulatory climate continues
to pressure RG&E,” Paul Wilkens, president of RG&E, said in
a Jan. 8 memo to workers obtained by the Democrat and Chronicle.
“It became apparent that RG&E needs to streamline operations
and reduce the size of our work force to address these pressures.”
RG&E is asking the state Public Service Commission to approve
an increase in gas and electric rates. The PSC staff wants RG&E
to reduce its rates; RG&E said that would lead to further layoffs.
“The commission doesn’t like to see people lose their jobs,
but the company management is responsible for decisions
like this,” said PSC spokesman Edward Collins.
Energy East, parent of RG&E, said 531 employees throughout the
company are eligible for enhanced severance. Central Main Power Co.,
another Energy East utility, said 68 of its workers are eligible
for the enhanced severance.
At RG&E, the eligible workers include a vice president
and 13 managers, according to documents obtained
by the Democrat and Chronicle.
“This effort will result in the elimination of some
current positions while creating new career
opportunities in other areas,” Wilkens said in his memo.
Openings are expected to be posted in three rounds
beginning on or about Feb. 3, according to the memo.
Some affected workers may apply to the
Energy East Management Corp. unit as well as the Energy East utilities.
The memo said some workers moving to new jobs would take a pay cut.
RG&E issued a statement saying it is focusing on placing
workers in other jobs. Energy East declined to comment
on how many jobs are available.
RG&E workers who are not placed have been told they will
receive two weeks base pay for each year worked, $7,500 in cash
and one year of health and life insurance coverage, according
to an internal memo obtained by the Democrat and Chronicle.
Their last scheduled day of work is April 30.
Update 10/24/02
RG&E announced lay offs to start!
Now that didn't take long !
Read how simple it is to fix ALL Of These Problems !
It Really Is !
TO: All Rochester Gas and Electric Employees
FR: Paul C. Wilkens
RE: Employee Transition Program
Dear Employee:
Over the years, Rochester Gas and Electric has made a number of changes in
an effort to better manage our costs and our business. The reality is that
our regulators, competitors, and the economic climate continue to pressure
the Company to reduce expenses while improving service and reliability.
This is a difficult balance to achieve, not only for RG&E but also for many
other companies in our industry.
As a result, on November 1 the Company will offer a Voluntary Early
Retirement Program to all full-time employees who will be at least age 55
and have 10 or more years of service by March 31, 2003. Eligible employees
who accept the offer must retire on April 1, 2003. Generation employees
(namely Ginna Station, Nuclear Engineering Services, Nuclear Assessment,
Nuclear Training, the Chief Nuclear Officer, and Fossil-Hydro) are not
eligible for this Program.
After the Voluntary Program, the Company will determine the additional
positions that must be eliminated. We will attempt to redeploy affected
employees. However, those employees who are not redeployed will receive an
enhanced severance package consisting of two weeks of base pay for every
year of service, a lump sum cash payment of $7,500, plus one year of health
and life insurance coverage comparable to coverage provided to retirees.
Employees can also continue to use the
services of the Employee Assistance Program for one year under the terms of
the program. In addition, employees will be eligible for outplacement
benefits for up to six months.
If your position will be eliminated in the first quarter of 2003, you will
be notified on or about February 28, 2003, and you'll receive complete
details about your severance payment as well as your benefits. The last
day of employment for affected employees will be on or before April 30,
2003. Employees who elect to receive the Enhanced Severance Program will
be required to sign an acknowledgement of the above benefits including a
release.
These are very difficult decisions to make, but they are necessary in order
to help us balance our cost structure with our need to invest for the
future. I appreciate your support and continued commitment during these
challenging times.
A letter with more information on these programs will be mailed to
non-generation employee's homes. Additional details will be provided soon.
============================================================
Subject: RG&E buyouts 'generous'
One year's pay, full pension offered for voluntary retirement
By Todd Grady
Democrat and Chronicle
(November 9, 2002) —
Rochester Gas and Electric Corp. employees eligible for
voluntary early retirement are being offered a year’s
salary and full pension benefits under an Energy East Corp. plan.
Payment is being made from RG&E’s pension plan, according
to documents obtained by the Democrat and Chronicle.
The documents were mailed to 194 eligible RG&E workers last week,
including two executives and a company spokesman.
Workers eligible for the early retirement program make up
about 10 percent of RG&E’s work force.
Energy East announced Oct. 24 that to cut costs it would
offer early retirement to workers at its six utility subsidiaries.
RG&E declined to comment on the details of the early retirement program.
David Edwards, principal at Rochester-based Mercer
Human Resource Consulting, said many companies have
cut back severance packages to six months, so RG&E’s
offer appears to be a good deal.
“Firms that are still offering a year’s pay and providing full,
unreduced annuity for retirement would be considered
reasonably generous,” he said.
Energy East plans to take a one-time restructuring charge
in the fourth quarter of $50 million to $100 million
to cover the buyouts.
RG&E workers who take the retirement package can also
participate in current retiree medical plan options.
The early retirement payout being offered at RG&E
mirrors the program offered to about 220 workers
at another Energy East subsidiary, New York State Electric & Gas Corp.
But an involuntary package also being offered by
Energy East to RG&E employees differs from the packages
being offered to workers at at least two other utilities it owns.
The involuntary severance program will be available to
workers cut after the voluntary retirements are in place.
For RG&E workers whose jobs are cut, Energy East is offering
a $7,500 cash payment. That’s lower than the $10,000 offered
to workers who may be cut at NYSEG and Central Maine Power Co.,
according to documents given to workers.
But RG&E workers could get more pay. Their involuntary severance
offers two weeks of pay for every year of service, while NYSEG
workers would get two weeks of pay for every year of service
up to a maximum equal to one year’s pay, according to documents.
Edwards said it’s not unusual for a parent company to offer
workers at individual subsidiaries different severance.
Energy East said the involuntary cuts are expected to be
announced sometime during the first quarter of 2003.
Workers at RG&E affected by involuntary cuts are expected
to be notified on or about Feb. 28.
The early retirement is being offered to full-time RG&E
workers who are 55 years old and have at least 10 years
of service by March 31. Employees who work in power generation,
including those at the Ginna nuclear power plant in Ontario,
Wayne County, are not eligible.
Among those eligible are Mark Keogh, vice president,
treasurer and corporate secretary; Clifton B. Olson,
vice president of energy supply; and Mike Power,
the company’s spokesman.
Eligible employees have until Dec. 16 to sign up for
early retirement that becomes effective April 1.
Update 04/24/03
E-mail from an employee:
It appears like you have a lot of inside information about
what is going on at RG&E since the Energy East so called "merger"
Dig around some more, and you will see that the so
called 3rd round job offerings have been revoked.
Current employees that applied for jobs with Energy East
in the 3rd round received phone calls saying that the jobs
have been eliminated and they have no jobs. Now even
more people are out of work. Energy East could care
less about it's employees, they only care about the bottom line.
Update 04/01/03
RG&E TO GET UNION
By Todd Grady
Democrat and Chronicle
(April 1, 2003) — Rochester Gas and Electric Corp. will get its first union,
as eligible workers have voted to organize.
The vote was 253 to 22 in favor of joining Local 36 of
the International Brotherhood of Electrical Workers,
according to results released Tuesday by
the National Labor Relations Board in Buffalo.
The new union will represent about 400 of RG&E’s
approximately 1,900 employees, including line workers,
natural gas service workers, troubleshooters and cable splicers.
“With the selling of RG&E and losing local control,
the employees needed some type of representation,”
said Craig Rode, an RG&E utility inspector,
who voted in favor of unionizing.
The IBEW said it hopes to begin preliminary
negotiations early next month and have a contract
in place by late July or early August, but said it’s
premature to comment on the length of the contract.
Efforts to organize workers at RG&E started in
August after Energy East Corp. purchased the
utility on June 28 of last year.
Officials at RG&E did not have any immediate comment.
Letter I sent to the PSC.
I am a retired RG&E employee.
I called RG&E, Mellon Investor Services,
(who handled the merger), Energy East,
and T.Rowe Price, who has my RG&E Savings Plus Plan.
No one "could" tell me anything as to why Tom Richards resigned.
The merger papers provided to me by Energy East and Mellon Investor Services,
clearly state on pages 65 and 66, that Tom Richards would be in control and that
the corporate offices would remain in Rochester.
Something has gone wrong with this merger and I feel the PSC
should start an immediate investigation. I and many fellow RG&E
retirees and employees are worried about a possible "Enron" situation.
I spoke to a good friend at the RG&E who was present at the meeting on Friday,
when Tom Richards quit. He said Richards alluded to being thrown out.
This will not be good for Rochester if Energy East has pulled something.
Sincerely,
Dave Kaspersin
President
Dynamic Recording Studios
2844-46 Dewey Ave.
Rochester N. Y. 14616 USA
http://www.dynrec.com
drk@dynrec.com
585-621-6270 voice
585-621-6278 fax
Spoke with the PSC and filed a complaint.
They assured me they will look into it.
However, it was made clear that if Tom Richards won't
talk about why he resigned, they may not be able to do anything.
Filed complaint with SEC:
In regards to the RGS / Energy East Merger.
I am a retired RG&E employee.
I called RG&E, Melon Investor Services,
(who handled the merger), Energy East,
and T.Rowe Price, who has my RG&E Savings Plus Plan.
No one "could" tell me anything as to why Tom Richards resigned.
The merger papers provided to me by Energy East and Melon Investor Services,
clearly state on pages 65 and 66, that Tom Richards would be in control and
that the corporate offices would remain in Rochester.
Something has gone wrong with this merger and I feel the SEC should
start an immediate investigation. I and many fellow RG&E retirees and
employees are worried about an "Enron" situation.
According to the stock transfer papers I signed I have three business
days to reconsider from the date of the merger. Due to the fact that
I cannot get any information
about what went wrong, I would hope the SEC will step in and
extend this deadline. I also wonder if Energy East picked the
Friday before a holiday week to do this for a reason.
UPDATE 08/08/02
Just got a call from the RG&E Director of Activities.
He said he had recieved two complaints about a Democrat and Chronicle newspaper
reporter being present at the RG&E retire'e picnic yesterday and
wanted to know his name.
The truth is everyone I spoke with at the picnic was very happy to
talk to the reporter except a few men who said they would like
to talk to him, but were afraid to, because they had sons or daughters
working at the RG&E !
And everyone there expressed concern that NO ONE from management
was there who could answer questions about the merger and the
future of the RG&E and the retire's benifits.
I AM SO GLAD THAT I DON'T WORK THERE ANY MORE!!!
And I really feel sorry for my friends that still do!
Dave Kaspersin
UPDATE 08/31/02
PSC asked to track Energy East
By Todd Grady
Democrat and Chronicle
(August 31, 2002)
Monroe County legislators want Energy East Corp.
to follow through on commitments it made to gain
regulatory approval for its acquisition of RGS Energy Group Inc.
Nine legislators sent a letter to the state
Public Service Commission on Aug. 22 asking for help.
They want the commission to monitor how the
Energy East-RGS merger proceeds. Energy East
promised to move the corporate headquarters
of subsidiaries New York State Electric and Gas Corp.
and Energy East Management Corp. to Rochester.
About 40 employees were to be added locally.
"What we're asking the Public Service Commission is,
'Hey there were agreements here with the
Make sure that we're protected here,' " said Jack Driscoll, R-Henrietta.
Energy East also promised to leave RGS headquarters in Rochester.
It has not made any announcements regarding local operations
since acquiring RGS, the parent of Rochester Gas and Electric Corp.
"They certainly seem to be pulling away from a focus on
Monroe County as a locale for their business," said
Ray Santirocco, R-Penfield. He joined Driscoll in
signing the letter sent to the commission.
Energy East spokesman Fausto Gentile did not return calls seeking comment.
David Flanagan, spokesman for the commission,
said he did not think the commission has replied
to the letter from legislators.
But the commission has said it is "monitoring
circumstances to ensure proper implementation."
The reason: The merger was completed differently than proposed.
Thomas S. Richards, former chief executive officer of RGS,
was supposed to head local operations of the merged companies,
but resigned hours after the merger was completed on June 28.
"As time goes on we're becoming more and more alarmed,
"Driscoll said. "Nothing is happening that meets the
original understanding. Given the business climate
today, you have to ask yourself have we been made
a victim of some corporate chicanery?"
UPDATE 09/07/02
RG&E pushes for rate increases
Parent company Energy East also plans to add 40 jobs here
By Todd Grady
Democrat and Chronicle
(September 7, 2002) — Rochester Gas and Electric Corp.
wants to increase electric and natural gas rates in 2003.
The utility is asking the state Public Service Commission
to approve a 9.4 percent increase in electric rates and a
6.6 percent increase in natural gas rates.
RG&E also wants to raise the basic monthly charge for electric service
from $17.50 to $20.50 and the basic monthly charge for natural gas
delivery from $12 to $18.
RG&E's parent company, Energy East Corp., also will add up to
40 local jobs, said RG&E President Paul Wilkens. Energy East
plans to locate its data center at an RG&E building on West Avenue by next summer.
"This, I think, will be good news to the folks in the community
who have been concerned about our need to provide additional jobs here," Wilkens said.
Energy East at this point will not move to Rochester the corporate
headquarters of another subsidiary, New York State Electric and Gas Corp.,
as was planned under the merger, he said. The company's financial
situation and other factors have changed.
It is unclear what terms of the RG&E merger Energy East is bound
to follow; the PSC has vowed to watch the situation closely.
The proposed rate increases would provide RG&E an extra
$59 million in electric rate revenue and $19 million in natural gas delivery revenue.
RG&E electric rates are down 10 percent since 1996;
gas delivery rates are 1 percent less than they were in 1994, the company said.
"We feel that the rate case is something we really have
to have to be able to maintain the reliable, safe service
that we provide to the customers and maintain the financial
wherewithal and stability of the company," Wilkens said.
The PSC could rule on the rates by year's end.
RG&E had been trying to negotiate a multi-year rate plan
with the PSC since March but talks broke down.
The latest proposal would be a one-year settlement.
E-mail address: tgrady@DemocratandChronicle.com
UPDATE 09/10/02
RG&E SAYS LAYOFFS PLANNED
Cut in profit prompts utility to also consider closing offices
By Todd Grady
Democrat and Chronicle
Paul Wilkens President says RG&E is studying economies.
(September 10, 2002) Rochester Gas and Electric Corp.
said it expects to lay off workers and close offices,
but it is still developing a plan for the cost cuts.
"We're really just now getting into the thick of trying to do
that assessment," said Paul Wilkens, president of RG&E.
The utility, which was part of a merger with Energy East Corp.
on June 28, employs about 2,000.
RGS Energy Group Inc., parent of RG&E, said when the merger
was announced Feb. 20, 2001, that it did not expect to use
layoffs to achieve savings.
Instead cuts would be covered by attrition, the company said.
"The economic system dictates that we take a look at doing things
a bit differently if we can, in order to remain financially sound,"
said Mike Power, spokesman for RG&E.
RG&E blames a revenue drop and increasing costs for the anticipated cuts.
It reported net income of $3.7 million for the first six months of 2002,
compared with $54.4 million for the period a year ago.
Lower wholesale prices for electricity had the biggest effect.
"In our mind, we can't keep going in that direction
or you lose the ability to deliver what your customers expect,"
Power said. "That's reliable service."
Officials in Henrietta and Geneseo said RG&E has stopped work
to upgrade electric substations in their communities while it
re-evaluates the projects.
Typically, RG&E spends about $100 million annually to
upgrade its natural gas and electric systems, Power said.
RGS and Energy East agreed to provide $50 million in annual savings
over the next five years. The savings, to be split between ratepayers
of RG&E and Energy East subsidiary New York State Electric and Gas Corp.,
were necessary to get the merger approved by the
state Public Service Commission.
David Flanagan, spokesman for the commission, said those
savings would be factored into RG&E's current rate negotiations.
RG&E said Friday that it is asking the commission to approve
higher gas and electric rates for next year and increasing
the basic service charge for delivery. It also said Energy East
would add 40 jobs here.
James Smith, spokesman for Monroe County Executive Jack Doyle,
said the county was assured the merger would be a positive thing for the community.
"Clearly, now there's some questions," he said.
Do layoffs and adding 40 jobs make any sense to anyone ???
Doesn't one cancel the other one out ???
Dave Kaspersin
"I think it's a really dark day for our community,"
said Rochester Mayor William Johnson.
Instead of job gains, Johnson fears job losses.
He also bemoans the loss of local control of a company
that's been around for a century.
"That would be a serious blow to our economy.
It means that we would lose another homegrown company
and this company would be run out of New York City," said Johnson.
"This decision today by Energy East is a terrible way
to start a relationship with Rochester,"
said Assemblyman Joseph Morelle, D-Irondequoit.
Morelle To Question PSC About RGS-Energy East Merger
(WROC-TV)
7/1/2002 6:00 PM
Angered by what is being branded as broken promises, state assemblyman
Joe Morelle says he's writing the Public Service Commission,
asking them to check into certain stipulations of the RGS-Energy East merger.
At issue are two things: the resignation of former RGS CEO Tom Richards,
and the promimse of an upstate headquarters of the new company in Rochester.
Morelle wants to know if either events are in violation of an agreement
reached by state officials in approving the merger. As News 8 Now first
reported last Friday, local lawmakers cried foul when news of Richards
resignation came out. They say he was supposed to stay on as a high-ranking
official in the combined company.
Mayor William Johnson and Morelle also say Energy East is reneging on
a deal to create an upstate headquarters in Rochester - a stipulation
they say was part of the merger deal.
If the PSC finds the merger meets stipulations, lawmakers could choose
to hold legislative hearings.
Update 09/26/2002
Maureen Helmer, Chairman
Public Service Commission
Agency Building 3, Empire State Plaza
Albany, New York 12223
Dear Ms. Helmer:
I am writing on behalf of my constituents and the greater Rochester
community in regards to Case 01-M-0404, the merger between Energy East
Corporation and RGS Energy Group.
Just hours after the merger was finalized, our community learned that
Thomas Richards, the CEO of Rochester Gas & Electric, was stepping down
from his position. The news of Mr. Richard's departure raised a number of
issues relative to the merger since he was scheduled to assume
responsibilities as CEO of Energy East's New York operations.
In addition, media reports suggested the upstate headquarters of the new
company was to be located in Rochester. The Rochester community would have
greatly benefited from the new jobs that were to be created in the
economically depressed upstate region. It appears, however, that no plans
exist for the new company to be located here.
I have reviewed the merger documents, and find no mention of Mr. Richards'
role within the company, nor of a Rochester-based headquarters. However,
assurances were made that the merger would be beneficial to our community,
increasing jobs and lowering energy rates. Energy East has recently
announced it will be reducing its workforce in New York state and is going
to petition for higher gas and electric rates for next year.
I am writing to request that the Public Service Commission review the
Energy East/RGS Energy Group merger to assure the public that it meets the
conditions set forth in the petition. Our community relied on many
commitments that were made to us, and we want Energy East to meet those
commitments.
Thank you in advance for your attention to this matter. If I can be of any
further assistance to you, please do not hesitate to contact me.
Warmest personal regards,
Joseph D. Morelle
Memeber of Assembly
NOTE:
The merger papers provided to me (Dave Kaspersin)
by Energy East and Mellon Investor Services,
clearly state on pages 65 and 66, that Tom Richards would be in control and that
the corporate offices would remain in Rochester.
Page 65
Mr. Richard's Employment Agreement.
We and Mr. Richards have entered into
an employment agreement that will become
effective when the merger is completed.
Corporate Offices.
At and subsequent to the effective time of the merger,
the corporate headquarters of the surviving company, RG&E, NYSEG and Energy
East Management Corporation, a wholly owned subsidiary of Energy East, will
be located in Rochester, New York. Energy East Managment will have
approximately forty employees in Rochester as of the effective time of
merger. The operating headquarters of NYSEG will remain in Binghamton, New
York.
Page 66
Transition Management.
The parties will create a special task force,
jointly chaired by Mr. Richards and Mr. Jasinski, with an equal number of
members appointed by RGS Energy and Energy East. This task force will
assist in transition management of the surviving company and subsidiaries.
Rochester Gas and Electric.
Following the completion of the merger, there
will be four members of the board of directors of RG&E. Each of Energy
East and RGS Energy will appoint two members. Energy East intends to
appoint Mr. von Schack and Mr. Jasinski, and RGS Energy intends to appoint
Mr. Richards and one other person. The officers of RG&E will be those in
office immediately prior to the effective time of the merger, plus new
officers recommended by the transition management task force. Each of the
officers and directors will continue to serve until his or her successor is
duly appointed or elected.
The three pages highlighted below have been removed from the RG&E Web Site
along with any trace of Richards...
Press Releases
· RG&E Reports Power Plant Emissions
· RG&E Honored For Work Safety
· Key Facts - Summer Energy Supplies
· RG&E Establishes Scholarships for Area Colleges
· RG&E offers 40 ways to save on your gas bill
· RG&E Files Plan To Hold Customer Rates Steady Through 2002
· Important Power Outage Safety Tips
· State Energy Plan Must Support Reliability, Competitive Prices, RG&E Testifies
· Key Facts - New RG&E Operations and Training Center, 1300 Scottsville Road, Chili NY
· RG&E Begins Aerial Survey of Electric Lines
· Red Cross, RG&E Expand Heating Fund
· Statement Regarding National Guard Deployment
· RG&E Assures Customers Electricity Supplies Are Solid, Prices Are Stable
· RGS Shareholders Approve Merger
· Energy East And RGS Energy Group Announce Strategic Combination
· RG&E Names Thomas Vice President for Human Resources
· RG&E Files Plan To Reduce Gas Delivery Rates
Found this on Yahoo the day of the merger. But the link was already gone - - -
DRAFT PRESS RELEASE
... with the SEC, including risks and uncertainties relating to: failure to obtain and
retain expected synergies from the merger between RGS and Energy East and ...
http://www.rge.com/MergerRelease06152001.html
More Results From: www.rge.com
http://www.rge.com/MergerRelease06152001.html
And how about this ?
RGE-Press Releases
... Wes von Schack, chairman, president and chief executive officer of Energy East,
said, "RGS Energy and Energy East share a common vision for upstate New York. ...
http://www.rge.com/pressRel022001.html
RGS/Energy East Merger Raising Questions About Broken Promises
Jane Flasch
WOKR-TV
07/01/02
Rochester, NY -- Friday's merger between RGS, the parent company of
Rochester Gas and Electric (RG&E), and Energy East is raising a lot of questions.
Complete Story...
RGS/Energy East Merger Raising Questions About Broken Promises
Jane Flasch
Rochester, NY -
Friday's merger between RGS, the parent
company of Rochester Gas and Electric (RG&E), and Energy East
is raising a lot of questions.
The deal, which was approved by shareholders and the state
public service commission, was to have kept the RGS headquarters
in Rochester and RG&E's CEO Tom Richards on as a vice president.
However, just hours after the merger, Tom Richards abruptly resigned,
leaving the future of Rochester's 150-year-old, home-grown company in
the hands of Energy East.
NewsSource 13 has learned that three hours after the merger
was completed, Tom Richards met with top RG&E employees and said,
"I'm stepping down and that's all I can say."
One man, who was present at that meeting and asked not to be identified,
said it's clear Richards was being forced out.
It's also clear that Energy East's promises to keep the corporate
headquarters are no longer guaranteed.
Dave Kaspersin took an early retirement buyout after 26 years with RGE.
As a shareholder, he has documents which show the merger was based
on an agreement that promised to keep the corporate headquarters
in Rochester and Richards at the helm.
"I think Tom Richards owes the employees, the retirees, the city of Rochester,
and all of his customers an explanation of what happened here. I feel we were
sold down the river," he said. "This is not what Rochester should be getting
from our public utility. This is wrong,"
State Assemblyman Joe Morelle said he has a list of questions
for Energy East officials and is contacting the public service commission.
"The thing that is so disturbing is that we relied on certain commitments
that were made to us, and as a result, the scrutiny of the public service
commission was less than it would have been," he said.
Rochester is able to generate much of its power through the Ginna nuclear
power plant and the coal plant at Russel Station. RG&E was to have retained
local control of those plants, but now that is up in the air.
It could effect how much we pay for power and whether there is enough of it.
When NewsSource 13 tried to reach Energy East on Monday,
we were told the company spokesperson was in meetings and unavailable to comment.
Good guy that was duped by Energy East ?
Or Bad guy who took the money and ran ?
Former RGS head got $4.25 Million Separation Package
By Todd Grady
Democrat and Chronicle
(August 14, 2002)
Thomas S. Richards received a separation package
worth more than $4.25 million following his June 28 resignation
as president, chairman and chief executive officer
of RGS Energy Group Inc., according to a federal securities filing.
The filing was made by Energy East Corp. which merged with
RGS Energy Group Inc., parent of Rochester Gas and Electric Corp., on June 28.
Richards announced his resignation just hours after the merger was completed.
The package included a base salary for three years worth $491,150 per year
and a target bonus for three years worth $343,805 per year.
Richards was also given a pension differential valued at $1.5 million,
$100,000 for outplacement and relocation, $150,000 for up to 500 hours
of consulting services that he agreed to provide Energy East
over the next year, and three years of health and life insurance.
Update 03/08/03
EX-RGS EXEC LEFT WITH RICH BAILOUT !
$10.4 million payout exceeds what was first reported to SEC
By Todd Grady
Democrat and Chronicle
(March 8, 2003) — Thomas S. Richards, who resigned in June
as chief executive of RGS Energy Group Inc, received more
than $10 million in compensation and proceeds from
stock sales in 2002, according to recent regulatory filings.
That included about $6.8 million in cash compensation,
which is higher than the $4.1 million Energy East Corp. --
which owns RGS, parent company of Rochester Gas
and Electric Corp. --
reported to the Securities and Exchange Commission in August.
Energy East spokesman Fausto Gentile refused repeated requests
for comment and would not explain why the pay amounts were different.
The Feb. 27 SEC filings also reported that Richards exercised
options on 195,358 shares of RGS, valued at about $3.6 million.
Richards was allowed to exercise those options when he resigned June 28 --
the same day as the merger between RGS and Energy East was completed --
in what was reportedly a dispute with Energy East management.
The largest portion of Richards’ compensation was about
$6.4 million pertaining to an employment agreement with
Energy East that included severance compensation.
It is common for corporations to pay large severance
sums to executives. Xerox Corp., for example, is paying
its former CEO G. Richard Thoman $800,000 a year for life.
Still, such compensation packages don’t always sit well with shareholders.
“I am rather surprised by the large dollar amount,”
said Charles Straka of Perinton, a shareholder who
has been involved in the company’s rate negotiations
with state regulators. “It is my personal view RG&E
would have been better served if he (Richards) had
remained at the helm of the company.”
The filing comes as the utility cuts jobs to reduce costs.
RG&E, saying the cost of business has increased while service
rates have been flat or declining, has also asked the state to
allow it to increase revenues through higher gas and electric rates.
On Wednesday, the state Public Service Commission denied the
utility’s full rate request, approving instead a slight increase
in gas delivery rates, while holding electric rates flat.
RG&E said it will file for emergency rate relief and appeal
the decision to the courts.
Richards, who is currently chairman of the Greater Rochester Enterprise,
a public-private economic development group, was succeeded as
president by Paul Wilkens. Wilkens was the utility’s next highest
paid employee in 2002, receiving $584,973 in cash compensation,
according to the SEC filing.
Click here for A "DIALOG BETWEEN DAVE KASPERSIN
AND THE "MERGER" PRINCIPLES"
Comments welcome. Send to Dave Kaspersin:
E-Mail:drk@dynrec.com
585-621-6270
Energy East chief got $3M
By Todd Grady
Democrat and Chronicle
(April 29, 2003) —
The chairman of Energy East Corp., which owns two
major utilities in the Rochester area, received nearly
$3 million in cash compensation in 2002.
The base salary for Wes von Schack, 58, also chief executive
and president of Energy East, was $700,000 --
unchanged from 2000 and 2001. Von Schack’s 2002 bonus was
about $1.2 million, $265,574 less than in 2001,
according to the company’s annual proxy statement.
Von Schack also cashed in his options on 100,000 shares
of Energy East common stock valued at $1.1 million.
Energy East’s compensation and management succession committee
evaluated von Schack’s performance and reported its findings
in the proxy, which was filed Monday with the Securities and Exchange Commission.
“The CEO continues to focus on positioning the company to
effectively manage the significant risks inherent in the
energy markets today, including energy price volatility,
changes in regulation, and unforeseen consequences that
may result from dramatic and sudden market changes in
energy supply,” the committee wrote.
Von Schack’s compensation package also included 400,000
new options on shares of Energy East common stock.
Based on a rough formula used by compensation experts,
the options could be worth $2.6 million.
Energy East owns Rochester Gas and Electric Corp.
and New York State Electric & Gas Corp.
Energy East did not return calls seeking comment.
The proxy also said that G. Jean Howard, executive
director of Wilson Commencement Park, is up for
election to serve a two-year term on Energy East’s board.
Howard, 59, was on the board of RGS Energy Group Inc.
and became an Energy East board member after
the utilities merged last June.
The company’s annual meeting will be June 13 at the
Citicorp/Citibank auditorium in Manhattan.
07/03/02
Rochester, NY - New information about the merger between RG&E's
parent company, RGS, and Energy East is generating questions
about Energy East's commitment to Rochester.
Monroe County Executive Jack Doyle called the merger a takeover.
He is calling the state Public Service Commission to intervene.
Hours before the merger with Energy East was to go through,
it appeared the deal was off the table.
A document obtained by NewsSource 13 said the companies failed
to obtain expected synergies. Moments later, the document was removed.
The deal was pushed through, based on a last-minute resolution.
RGS CEO Thomas Richards, who was to stay on as a vice president,
abruptly resigned.
Doyle said, "Energy East forced through a resolution.
We don't know what it said, but in essence it's a takeover...
It looks like we got sandbagged."
Energy East told shareholders that RGS would retain its corporate headquarters
and bring new jobs to Rochester. The company now said it has formed a
task force to decide future moves. The future of Rochester's
two power generating facilities are also undecided at this point.
In the past, whenever Energy East has acquired power plants,
it has quickly sold them off.
The sale of Russell Station or the Ginna Nuclear Power Plant could
affect the supplies and cost of power the Rochester area now takes for granted.
Doyle has written a letter asking the Public Service Commission to intervene.
Energy East's Acquisition Carries Credit Risks
Excerpt: Standard & Poor's recently lowered its ratings on Energy East Corp.
(BBB+/Negative/--) and its subsidiaries (New York State Electric & Gas Corp.,
Central Maine Power Co., Southern Connecticut Gas Co., and Connecticut Natural Gas Corp.)
and Rochester Gas &...
Energy East's Proposed $400 Million Notes Rated 'BBB'
Excerpt: NEW YORK (Standard & Poor's) June 10, 2002--Standard & Poor's said today
it assigned its triple-'B' senior unsecured debt rating to utility holding company
Energy East Corp.'s proposed $400 million senior unsecured notes due 2012.
The proceeds will be us...
http://www.standardandpoors.com/
Click search
type in "Energy East"
07/09/02
Bush: 'No capitalism without conscience'
Calling for a "new ethic" in the wake of the "high profile
acts of deception" that have rocked Wall Street and shaken
consumer confidence, President Bush today told a Wall Street
crowd that "in the end, there is no capitalism without conscience,
no wealth without character." The president is calling for an
executive task force, more money for SEC enforcement,
stiffer jail penalties for fraud and explanations
from CEOs about their compensation packages.
Energy East shares hit a 52-week low
Todd Grady
Democrat and Chronicle
(July 24, 2002) — Shares of Energy East Corp. hit a 52-week
low on Tuesday as the utility sector was plagued by news from
Citigroup Inc. and JP Morgan Chase & Co.
Congressional investigators allege Citigroup and JP Morgan
helped Enron Corp. disguise loans as commodity trades and
skirt legal and accounting requirements.
Investigators also allege Citigroup's Salomon Smith Barney
division proposed similar Enron-style financings to other
utilities including Williams Companies Inc., Dynegy Inc.
and American Electric Power Co. Inc.
"The trend right now is to paint everybody with the same brush,
so all utility stocks have actually been killed in here,"
said Ted Levy, managing director at Brighton-based McDonald Investments.
Shares of Energy East closed on Tuesday at $17.25, down 95 cents,
but off its low for the day of $16.55.
The news wasn't good for investors who elected to take
Energy East stock as a result of the utility's merger with
RGS Energy Group Inc., parent of Rochester Gas and Electric Corp.
"I think we all got duped," said Dave Kaspersin, a retired
RG&E employee and shareholder, who elected to convert
his 1,303 RGS shares into half cash and half stock.
Energy East's stock has fallen 24 percent since its
merger with RGS was completed on June 28.
The Albany-based utility is scheduled to report
second-quarter earnings on Friday.
RGS shareholders are still waiting for their payout
from Energy East. The utility did not return two calls
Tuesday seeking comment and has not returned several
other calls over the past three weeks. On July 9,
Energy East said in a statement that shareholders
will receive stock or cash at a preliminary ratio of
1.7626 for every share of RGS. Mellon Investor Services LLC
is handling the exchange.
RGS shareholder Chuck Straka of Perinton said he has been
told by Mellon that he'll receive the payout by the
end of this week.
Corporate Ethics Cops Could Result In Jail Time For Executives
Jane Flasch WOKR TV
07/09/02
Rochester, NY - Corporate scandals at major companies
like Global Crossing, Xerox, and Arthur Andersen have
cost local residents jobs and/or their retirement savings.
Tuesday, President Bush called for a new ethic in
corporate America and a task force to root out further scandals.
Bush would impose harsher penalties such as longer
jail terms for offenders and for CEOs to accept
responsibility for their financial reporting.
Some of these expanded powers could first be used against
corporate leaders--with ties to one of Rochester's largest employers.
Under federal scrutiny, Xerox paid a record $10 million fine
and has agreed to change its accounting practices.
Now the Securities and Exchange Commission said it will
take a closer look at the actions of former
CEOs Paul Allaire and Rick Thoman.
Both Allaire and Thoman and other top executives are accused
of knowingly inflating profits in order to cash in on large
bonuses tied to company performance.
President Bush wants to freeze money unfairly gained by
corporate leaders. He said hitting them in the pocketbook
is not enough.
Joe Ryan of Brighton Securities said, "They have destroyed companies.
WorldCom cut 17,000 jobs, effective immediately.
That's far greater than the damage that was done by terrorists.
Until someone is made to pay...we're going to continue to find that."
Among those who are applauding Bush's call for tougher criminal
penalties--including jail time--is Kay Whitmore,
the former CEO of Eastman Kodak.
Whitmore said, "They have been punished to some degree
and should be punished even more. If they can be convicted
in a court of law, there should be criminal penalties."
Richards keeps community role
By Todd Grady
Democrat and Chronicle
(July 10, 2002) — Thomas S. Richards said he is committed
to continuing his community leadership role in Rochester,
but he declined to say what led to his leaving RGS Energy Group Inc.
"It's not going to change anything and I really want to
make sure that the people at RG&E get their feet on the ground,"
said Richards, former chairman and chief executive of the utility,
in his first public comments since his June 28 departure.
"I think the best thing to do in that regard is wish them well
and stay out of the way."
Just hours after the merger was completed between RGS and
Energy East Corp., executives of Energy East announced Richards' resignation.
There has been a great deal of speculation that Richards --
who was to become an executive vice president of Energy East --
was forced out of his job. But Richards refused to comment on the rumors,
other than to say that leaving RGS was not "some great plan on my part."
Richards spoke to a reporter before addressing a meeting of
Digital Rochester on plans for the Greater Rochester Enterprise,
the private economic development group of which he is chairman.
"My intention with GRE was to stick with it until it got
up and running and on its feet," he said. "And I intend to do exactly that."
Richards, who turned 59 on Monday, was supposed to receive a
minimum salary of $475,000 in his new role with the merged
utility, according to the proxy outlining the merger.
Upon leaving, he received a stock option-and-dividend package
worth an estimated $3.6 million.
Richards said he is uncertain what career plans his future holds.
"I'm going to spend the summer sorting that out," said Richards,
who began his career as a lawyer.
"I have at least one more job left in me and I want to make sure
I think about that and make the right decision. It might be a
different one than I ever made before."
Subject: Re: RGS / Energy East
From: Customer_Service@rge.com
To: Dynamic Recording
Cc:
Sender: Customer_Service@rge.com
Date: Wed, 10 Jul 2002 11:38:45 -0400
Mr. Kaspersin,
Thank you for your inquiry concerning Mr. Richards. There is an article in
today's D&C about Mr. Richards on the Business page. This might answer any
questions you have concerning his leaving. There will be no statement
issued either from RGS or Energy East. Our response has been and will be a
no comment answer.
We appreciate your concern and interest at this time.
Jeanette Miiller
=================================================
To:customer_service@rge.com
07/07/02 12:34 PM Subject: RGS / Energy East
Doesn't anyone at the RG&E / RGS feel a statement should be issued ?
Dave Kaspersin.
2008 The four Generators at Russell have been shut down.
And after reading all of this,
if you want a laugh, Click Here to listen to this actual
sound clip from an RG&E radio ad when Russell Station-7
was first being built over 75 years ago !
And lastly - - -
Just a little note to let you know we understand
your anger in our recent price hike.
But it should be noted that you have no choice.
We are a big company
and you will pay what we tell you.
You have no choice.
We have the power, you need the power.
So sad, too bad. Sucks to be you.
Have nice day and keep those checks
coming, loser !
Your Local Power Company
Click For More on Voltage Problems.
Click For More on Demand Metering.
Who Killed Montana Power?
Tapes Prove Enron plotted to shut down power plant .
Feds Find Power Manipulation in Calif.
400,000 to Keep Russell Station on line - - -
$75 Million to close it down - - -
Enron East/RGS/RG$E Give Ginna Station Away !
