8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_____________________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 23, 2006
_____________________

Commission File Number	Exact name of Registrant as specified in its charter, State of incorporation, Address and Telephone number	IRS Employer Identification No.
1-14766	Energy East Corporation(Incorporated in New York) 52 Farm View Drive New Gloucester, Maine 04260-5116 (207) 688-6300 www.energyeast.com	14-1798693

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01     Other Events

NYSEG Electric Rate Plan Extension

On August 23, 2006, the New York State Public Service Commission (NYPSC) issued an order requiring New York State Electric & Gas Corporation (NYSEG), a wholly owned subsidiary of Energy East Corporation (Energy East), to reduce its electric distribution rates effective January 1, 2007, by approximately $36 million or 6%. A copy of a news release issued by NYSEG is provided as Exhibit 99-1.

Additional details of the NYPSC's order include:

• The NYPSC, based on its advisory staff's recommendation, changed the Administrative Law Judges' recommended decision and used Energy East's consolidated common equity ratio of 41.6% to set rates (rather than NYSEG's actual 50.6% equity ratio), applied to an electric rate base of $1.46 billion. The authorized return on equity (ROE) is 9.55%. The use of a 41.6% equity ratio instead of NYSEG's actual equity ratio has the effect of providing a debt return on approximately $120 million of NYSEG equity.

• Significantly modifying NYSEG's commodity options program, including:

• Use of a variable rate supply option as the default for all customers not making a supply election, as opposed to the current fixed price option default.
• A reduction in the allowance, from 35% to 24%, used to set the supply rate to cover the costs of providing fixed price electricity at retail.
• The use of an earnings collar for supply of plus/minus $5 million with 80/20 (customers/shareholders) sharing outside the collar. NYSEG currently can earn 300 basis points ROE on supply (approximately $21 million) after which earnings are shared 50/50 between customers and shareholders.

• Requiring NYSEG to provide a one-time refund to customers of $77 million from its asset sale gain account. The exact timing and method of refund is to be determined in a proceeding to be initiated in the next 30 days.

• Imposing significant new reporting requirements and requiring a separate proceeding to examine NYSEG's accounting for post-retirement medical (OPEB) costs since 1999. The NYPSC staff has alleged that NYSEG should increase its OPEB reserve by $57 million and reduce rate base accordingly.

NYSEG is required to provide the fixed price option to customers for 2007. This provision is optional for 2008 and NYSEG must petition the NYPSC if it desires to continue the fixed price option after 2008.

The NYPSC order will have a significant adverse effect on NYSEG's profitability, cash flows and financial condition. Therefore, NYSEG will be forced to take a series of major cost reduction initiatives. In addition, NYSEG intends to pursue all legal avenues to recover legitimate costs and earn a just and reasonable return.

NYSEG and Energy East continue to evaluate the effects of the NYPSC order and are currently unable to predict the extent to which those effects can be mitigated.

Item 9.01     Financial Statements and Exhibits

(d)     Exhibits

99-1 New York State Electric & Gas Corporation's news release dated August 23, 2006.

Forward-looking Statements: This Form 8-K contains certain forward-looking statements that are based on management's current expectations and information that is currently available. Whenever used in this report, the words "estimate," "expect," "believe," "anticipate," or similar expressions are intended to identify such forward-looking statements. For a discussion of the risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Forward-looking Statements" in Energy East's Annual Report on Form 10-K for the year ended December 31, 2005, and subsequent Quarterly reports on Form 10-Q.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  August 25, 2006 ENERGY EAST CORPORATION
              (Registrant)


By   /s/Robert D. Kump                                             
           Robert D. Kump
           Vice President, Controller &
           Chief Accounting Officer

EX-99.1

Exhibit 99-1

PSC ADOPTS DECISION IN NYSEG RATE CASE WHICH WILL LEAD TO A DETERIORATION IN
CUSTOMER SERVICE
* * *
Commission Adopts Ill-Advised Staff Recommendations

FOR IMMEDIATE RELEASE

      Rochester, NY, August 23, 2006 - NYSEG said today that the Public Service Commission's (PSC) decision to reduce the company's electricity delivery rates is arbitrary and does not cover the company's expenses nor provides the opportunity to earn a fair return on its investment.

      "In order to comply with the Commission's decision, we will be forced to take drastic actions which will seriously impact our ability to provide the high level of service our customers have come to expect," said Jim Laurito, NYSEG's president and CEO. "This means that customers will unfortunately have to wait longer to have their service restored when winter and summer storms occur."

       NYSEG has not had an electricity delivery rate increase since 1995, while other electric utilities in New York State including Con Ed, Orange & Rockland, Central Hudson Gas & Electric, and National Grid have all received rate increases in the past year.

      "After over 10 years without a delivery rate increase and several rate decreases, and with the cost of operating and maintaining a complex energy delivery system continuing to increase, we sorely needed a delivery rate increase," Laurito said. "Since we have been ordered to further reduce delivery rates, this will have a serious impact on our employees and our customers. In this decision, the Commission has assumed higher sales for the company despite a stagnate Upstate economy. It also ignored true and legitimate costs for running a business such as medical and pension costs, and factored in a 3% productivity adjustment. These items in the aggregate amount to over $30 million on an annual basis or about 400 jobs."

      Laurito said NYSEG has already cut its delivery work force by 25% since 2000 and significantly reduced its expenses, even in the face of ever-increasing costs.

      "Our resources were stretched in responding to the catastrophic flooding in the Southern Tier earlier this summer," Laurito said. "Under the onus of the Commission's decision, I shudder to think what will happen when we are called upon to respond to future emergencies. Clearly, the PSC's decision to follow staff's recommendations is ill-advised. This decision does not provide NYSEG sufficient revenues to cover its expenses and to attract the necessary capital needed to improve its aging electricity infrastructure.

      "The PSC's decision is unfortunate", Laurito further said, "A top priority of a new Governor next year must be a review of how the PSC functions and makes its decisions. As it stands now, the Senior Staff of the PSC not only directs the prosecution of the case, but advises the Chairman, Commissioners and Judges as well. This is clearly a conflict of interest. There is no way to get a fair and balanced decision with this type of organizational structure. The net result is bad public policy. The Chairman and the Commissioners should have an independent staff to assist them in reviewing the recommendations of the PSC prosecutorial staff like in other states. This would have been especially helpful in this proceeding since 3 of the 5 Commissioners were recently appointed by the Governor when the eleven-month proceeding was essentially completed. Ordering a rate reduction, which will amount to about five cents/per day for the average customer politically looks good in the short run, but will ultimately hurt customers in the long run."

      The Company plans to pursue all legal avenues to recover legitimate costs and earn a just and reasonable return.

About NYSEG: NYSEG is a subsidiary of Energy East Corporation [NYSE:EAS], a super-regional energy services and delivery company in the Northeast. We serve 860,000 electricity customers and 254,000 natural gas customers across more than 40% of upstate New York. By providing outstanding customer service, promoting competition and focusing on growth, we will continue to be a valuable asset to the communities we serve. For more information about NYSEG, visit nyseg.com.

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Contact:	Bob Bergin
	585.771.2294