10-Q

SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.  20549

FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the quarterly period ended  September 30, 2001

OR

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the transition period from             to            

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(A New York Corporation) P. O. Box 12904 Albany, New York 12212-2904 (518) 434-3049	14-1798693
1-5139	Central Maine Power Company(A Maine Corporation) 83 Edison Drive Augusta, Maine 04336 (207) 623-3521	01-0042740
1-3103-2	New York State Electric & Gas Corporation(A New York Corporation) P. O. Box 3287 Ithaca, New York 14852-3287 (607) 347-4131	15-0398550

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes    X      No        

As of October 31, 2001, shares of common stock outstanding for each registrant were:

Registrant	Description	Shares
Energy East Corporation Central Maine Power Company New York State Electric & Gas Corporation	Par value $.01 per share Par value $5 per share Par value $6.66 2/3 per share	116,532,239     31,211,471 (1) 64,508,477 (2)

(1) All shares are owned by CMP Group, Inc., a wholly-owned subsidiary of Energy East Corporation.
⁽²⁾ All shares are owned by Energy East Corporation.

This combined Form 10-Q is separately filed by Energy East Corporation, Central Maine Power Company and New York State Electric & Gas Corporation. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

Item	TABLE OF CONTENTS	Page
	PART I - FINANCIAL INFORMATION
1 2	Financial Statements Management's Discussion and Analysis of Financial Condition   and Results of Operations
	Energy East Corporation   Consolidated Statements of Income   Consolidated Balance Sheets   Consolidated Statements of Cash Flows   Consolidated Statements of Retained Earnings   Consolidated Statements of Comprehensive Income   Management's Discussion and Analysis of Financial Condition     and Results of Operations   (a) Liquidity and Capital Resources   (b) Results of Operations	1 2 4 5 5 6 14
	Central Maine Power Company   Consolidated Statements of Income   Consolidated Balance Sheets   Consolidated Statements of Cash Flows   Consolidated Statements of Retained Earnings   Consolidated Statements of Comprehensive Income   Management's Discussion and Analysis of Financial Condition     and Results of Operations   (a) Liquidity and Capital Resources   (b) Results of Operations	17 18 20 21 21 22 23
	New York State Electric & Gas Corporation   Statements of Income   Balance Sheets   Statements of Cash Flows   Statements of Retained Earnings   Statements of Comprehensive Income   Management's Discussion and Analysis of Financial Condition     and Results of Operations   (a) Liquidity and Capital Resources   (b) Results of Operations	25 26 28 29 29 30 31
	Notes to Financial Statements Forward-looking Statements	33 36
3	Quantitative and Qualitative Disclosures About Market Risk	37
	PART II - OTHER INFORMATION
6	Exhibits and Reports on Form 8-K (a) Exhibits (b) Reports on Form 8-K	37 37
Signatures		38
Exhibit Index		39

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

Energy East Corporation
Consolidated Statements of Income - (Unaudited)

	Three Months		Nine Months
Periods Ended September 30	2001	2000		2001	2000
	(Thousands, except per share amounts)
Operating Revenues
Sales and services	$798,848	$651,146		$2,918,997	$1,907,491
Operating Expenses
Electricity purchased and fuel     used in generation	359,677	281,263		1,051,774	730,392
Natural gas purchased	74,100	66,009		588,259	246,909
Other operating expenses	139,552	114,082		425,341	277,321
Maintenance	34,260	20,258		102,714	67,580
Depreciation and amortization	50,967	44,375		153,480	111,944
Other taxes	45,725	23,877		150,173	104,620
Total Operating Expenses	704,281	549,864		2,471,741	1,538,766
Operating Income	94,567	101,282		447,256	368,725
Writedown of Investment	78,422	-		78,422	-
Other (Income) and Deductions	(4,836)	(14,050)		(13,912)	(29,205)
Interest Charges, Net	52,487	39,156		164,741	96,732
Preferred Stock Dividends of Subsidiaries	5,835	287		6,790	485
Income (Loss) Before Income Taxes	(37,341)	75,889		211,215	300,713
Income Taxes (Benefit)	(16,284)	42,540		90,097	117,566
Net Income (Loss)	$(21,057)	$33,349		$121,118	$183,147
Earnings (Loss) Per Share, basic and diluted	$(.18)	$.30		$1.04	$1.62
Dividends Paid Per Share	$.23	$.22		$.69	$.66
Average Common Shares Outstanding	116,436	112,812		116,737	112,995

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Energy East Corporation
Consolidated Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Assets	(Thousands)
Current Assets
Cash and cash equivalents	$238,769	$143,626
Special deposits	1,558	21,516
Accounts receivable, net	539,807	536,280
Fuel, at average cost	103,122	65,496
Materials and supplies, at average cost	21,554	22,759
Accumulated deferred income tax benefits, net	563	5,007
Prepayments	56,875	57,720
Total Current Assets	962,248	852,404
Utility Plant, at Original Cost
Electric	4,705,034	4,784,312
Natural gas	1,725,122	1,665,386
Common	212,930	220,124
	6,643,086	6,669,822
Less accumulated depreciation	3,078,359	3,096,283
Net Utility Plant in Service	3,564,727	3,573,539
Construction work in progress	57,294	59,389
Total Utility Plant	3,622,021	3,632,928
Other Property and Investments, Net	260,753	259,708
Regulatory and Other Assets
Regulatory assets
Nuclear plant obligations	222,670	234,929
Unfunded future income taxes	191,630	184,570
Unamortized loss on debt reacquisitions	54,657	58,848
Demand-side management program costs	25,835	48,929
Environmental remediation costs	71,314	78,406
Other	257,195	241,396
Total regulatory assets	823,301	847,078
Other assets
Goodwill, net	912,290	952,358
Prepaid pension benefits	413,615	350,038
Other	116,104	119,214
Total other assets	1,442,009	1,421,610
Total Regulatory and Other Assets	2,265,310	2,268,688
Total Assets	$7,110,332	$7,013,728

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Energy East Corporation
Consolidated Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Liabilities	(Thousands)
Current Liabilities
Current portion of long-term debt	$83,759	$25,285
Notes payable	205,183	418,995
Accounts payable and accrued liabilities	230,963	345,424
Interest accrued	53,863	35,309
Taxes accrued	19,994	-
Other	148,732	211,784
Total Current Liabilities	742,494	1,036,797
Regulatory and Other Liabilities
Regulatory liabilities
Deferred income taxes	97,969	91,421
Deferred income taxes, unfunded future income taxes	89,171	75,473
Gain on sale of generation assets	204,298	232,041
Pension benefits	92,237	96,514
Other	68,802	76,813
Total regulatory liabilities	552,477	572,262
Other liabilities
Deferred income taxes	442,338	457,495
Nuclear plant obligations	222,670	234,929
Other postretirement benefits	288,321	279,864
Environmental remediation costs	90,287	91,811
Other	251,876	233,910
Total other liabilities	1,295,492	1,298,009
Total Regulatory and Other Liabilities	1,847,969	1,870,271
Long-term debt	2,391,846	2,346,814
Total Liabilities	4,982,309	5,253,882
Commitments	-	-
Preferred Stock of Subsidiaries  Company-obligated mandatorily redeemable trust preferred    securities of subsidiary holding solely parent debentures	345,000	-
Preferred stock redeemable solely at the option of subsidiaries	43,329	43,324
Common Stock Equity  Common stock	1,180	1,191
Capital in excess of par value	839,361	871,078
Retained earnings	958,594	918,016
Accumulated other comprehensive income (loss)	(20,501)	(34,823)
Treasury stock, at cost	(38,940)	(38,940)
Total Common Stock Equity	1,739,694	1,716,522
Total Liabilities and Stockholders' Equity	$7,110,332	$7,013,728

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Energy East Corporation
Consolidated Statements of Cash Flows - (Unaudited)

Nine Months Ended September 30	2001	2000
Operating Activities	(Thousands)
Net income	$121,118	$183,147
Adjustments to reconcile net income to net cash   provided by operating activities
Depreciation and amortization	153,480	111,944
Income taxes and investment tax credits deferred, net	(13,453)	(6,334)
Pension income	(55,637)	(49,233)
Writedown of investment	78,422	-
Changes in current operating assets and liabilities
Accounts receivable	148,473	84,984
Sale of accounts receivable program	(152,000)	-
Inventory	(36,421)	(26,577)
Prepayments	845	491
Accounts payable and accrued liabilities	(114,461)	(128,427)
Interest accrued	18,554	12,512
Taxes accrued	19,994	4,335
Other current liabilities	(63,052)	10,945
Other, net	4,307	(53,683)
Net Cash Provided by Operating Activities	110,169	144,104
Investing Activities
Acquisitions, net of cash acquired	-	(1,442,717)
Utility plant additions	(126,438)	(88,779)
Temporary investments, net	-	936,174
Other property and investments	(13,625)	12,286
Other	4,707	4,067
Net Cash Used in Investing Activities	(135,356)	(578,969)
Financing Activities
Issuance of common stock	3,547	-
Repurchase of common stock	(24,116)	(149,261)
Issuance of mandatorily redeemable trust preferred securities	345,000	-
Repayments of first mortgage bonds and preferred    stock of subsidiaries, including net premiums	(1,446)	(96,705)
Long-term note issuances	107,879	650,530
Long-term note retirements	(16,182)	(1,430)
Notes payable, net	(213,812)	53,886
Dividends on common stock	(80,540)	(73,611)
Net Cash Provided by Financing Activities	120,330	383,409
Net Increase (Decrease) in Cash and Cash Equivalents	95,143	(51,456)
Cash and Cash Equivalents, Beginning of Period	143,626	116,806
Cash and Cash Equivalents, End of Period	$238,769	$65,350
Supplemental Disclosure of Cash Flows Information
Cash paid during the period:   Interest, net of amounts capitalized   Income taxes	$139,871  $87,690	$79,389  $108,506
Acquisitions:   Fair value of assets acquired   Liabilities assumed   Common stock issued   Cash acquired	-       -       -       -	$2,526,971  (689,180) (373,708) (21,366)
Net cash paid for acquisitions	-	$1,442,717

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Energy East Corporation
Consolidated Statements of Retained Earnings - (Unaudited)

Nine Months Ended September 30	2001	2000
	(Thousands)
Balance, Beginning of Period	$918,016	$782,588
Add net income	121,118	183,147
Deduct dividends on common stock	80,540	73,611
Balance, End of Period	$958,594	$892,124

The notes on pages 33 through 36 are an integral part of the financial statements.

Energy East Corporation
Consolidated Statements of Comprehensive Income - (Unaudited)

	Three Months		Nine Months
Periods Ended September 30	2001	2000	2001	2000
	(Thousands)
Net income (loss)	$(21,057)	$33,349	$121,118	$183,147
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	-	7	86	(31)
Net unrealized loss on investments	(12,208)	(9,664)	(11,000)	(8,657)
Reclassification adjustment for losses       included in net income	45,748	-	45,748	-
Minimum pension liability adjustment	-	720	50	720
Unrealized gains (losses) on derivatives   qualified as hedges
Unrealized gains on derivatives qualified       as hedges arising during the period due       to cumulative effect of a change in       accounting principle	-	-	58,250	-
Unrealized losses on derivatives qualified       as hedges	(13,138)	-	(80,736)	-
Reclassification adjustment for losses       included in net income	14,436	-	1,924	-
Net unrealized gains (losses) on derivatives     qualified as hedges	1,298	-	(20,562)	-
Total other comprehensive income (loss)	34,838	(8,937)	14,322	(7,968)
Comprehensive income	$13,781	$24,412	$135,440	$175,179

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations

Energy East Corporation

(a) Liquidity and Capital Resources

RGS Energy Merger Agreement

In February 2001 Energy East Corporation (Energy East or the company) announced that it had entered into a merger agreement with RGS Energy Group, Inc. under which all of the outstanding common stock of RGS Energy would be exchanged for a combination of cash and Energy East common stock valued at approximately $1.4 billion in the aggregate. The company will also assume approximately $1.0 billion of RGS Energy debt. RGS Energy will become a wholly-owned subsidiary of the company and the transaction will be accounted for under the purchase method of accounting.

Under the merger agreement 45% of the RGS Energy common stock will be exchanged for Energy East common stock with a value of $39.50 per RGS Energy share, subject to restrictions on the minimum and maximum number of shares to be issued, and 55% of the RGS Energy common stock will be converted into $39.50 in cash per RGS Energy share. RGS Energy shareholders will be able to elect the form of consideration they wish to receive, subject to proration. The company intends to finance the cash portion of the transaction primarily through the issuance of long-term debt and trust preferred securities. (See Item 2 - Financing Activities.)

RGS Energy and Energy East each held their annual meeting on June 15, 2001: RGS Energy's shareholders approved the merger and Energy East's shareholders approved the issuance of Energy East shares in connection with the merger.

The merger is subject to, among other things, various regulatory approvals, including the New York State Public Service Commission (NYPSC), Federal Energy Regulatory Commission (FERC), Nuclear Regulatory Commission (NRC) and Securities and Exchange Commission (SEC). The company has made all required regulatory filings and received approval from FERC in September 2001. In addition, the transaction cleared anti-trust review by the U. S. Department of Justice in October 2001. The company expects to complete the merger in the first quarter of 2002.

Electric Delivery Business
(See the company's Form 10-K for the fiscal year ended December 31, 2000, Item 7 - Liquidity and Capital Resources , Electric Delivery Business and the company's Form 10-Q for the quarter ended June 30, 2001, Item 2(a) Liquidity and Capital Resources - Electric Delivery Business.)

Sale of Nine Mile Point 2: New York State Electric & Gas Corporation (NYSEG) owns an 18% interest in the Nine Mile Point 2 nuclear generating station (NMP2). In December 2000 Constellation Nuclear was announced as the successful bidder in the sale of 82% of the interest in NMP2, including NYSEG's 18% share. For its share of NMP2, NYSEG will receive $59 million at closing and five annual principal and interest payments totaling $78 million. On September 28, 2001, NYSEG and the Staff of the NYPSC reached agreement on a joint settlement with respect to the regulatory and ratemaking aspects of the sale of NYSEG's interest in NMP2. On October 26, 2001, the NYPSC issued an order approving the sale, which provides for an asset

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

sale gain account to be established at the time of closing. Disposition of the asset sale gain, which is estimated to be approximately $110 million, will be determined by the NYPSC, after consultation with NYSEG and interested parties. All regulatory approvals have been received and the transaction is expected to close in November 2001.

The sellers' pre-existing decommissioning funds will be transferred to Constellation, which will take responsibility for all future decommissioning funding.

The transaction includes a power purchase agreement that calls for Constellation to provide electricity to the sellers, at fixed prices, for 10 years. After the power purchase agreement is completed, a revenue sharing agreement will begin. The revenuesharing agreement could provide additional revenue to the sellers through 2021, which would mitigate increases in electricity prices. Both agreements are based on plant output.

Sale of Vermont Yankee: On August 15, 2001, Vermont Yankee Nuclear Power Corporation reached an agreement to sell the Vermont Yankee nuclear power plant to Entergy Corporation. Central Maine Power Company (CMP) has a 4% ownership interest in Vermont Yankee. The transaction includes a power purchase agreement that calls for Entergy to provide all of the plant's electricity to the sellers through 2012, the year the license for the plant expires. The sale is subject to the approval of the Public Service Board of Vermont, the NRC, the FERC and other regulatory authorities.

NYSEG Electric Rate Agreement: On August 3, 2001, NYSEG revised the Price Protection Plan it previously filed with the NYPSC on March 14, 2001. The more significant modifications to the Price Protection Plan include:

• The addition of a 3% price reduction on January 1, 2002, for all NYSEG electricity customers except energy-intensive customers who will receive a 5% price reduction on March 1, 2002.
• Offering two options, beginning January 1, 2003, to enhance competitive choices. Under one option, customers could choose a fixed price from NYSEG for electric supply and delivery to ensure price stability. Under a second option, customers could choose to pay NYSEG a fixed price for delivery and receive their supply from an energy services company. These new pro-competition options would be separate from NYSEG's existing customer choice program.
• Shortening the term of the Price Protection Plan. The plan would now end December 31, 2007, with the option for NYSEG to extend it one year with the NYPSC's approval.
• The addition of a mechanism, beginning in 2003, to share electric earnings above a threshold of $100 million with customers. NYSEG would also retain savings brought about by the merger between Energy East and RGS Energy.

NYPSC proceedings to review the Price Protection Plan are ongoing. In October 2001 the administrative law judges assigned to the Price Protection Plan established a schedule for parties to submit briefs on the Price Protection Plan and additional briefs on temporary rates. NYSEG believes there is no basis for consideration of temporary rates and such action is inconsistent with its electric Restructuring Agreement. NYSEG anticipates that the NYPSC will issue its decision later this year.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Retail Access Credit: In May 2000 the NYPSC instituted proceedings to review NYSEG's retail access credit (the amount backed out of a customer's bill when that customer participates in retail access). In September 2000 the NYPSC issued an order denying a petition NYSEG had filed in August 2000 related to issues concerning its retail access credit. In January 2001 the NYPSC issued an order directing NYSEG to adopt a market-based retail access credit, effective February 1, 2001. As a result of this order, NYSEG will be exposed to fluctuations in the spot price of electricity for customers who have chosen retail access.

On April 26, 2001, the NYPSC issued an order denying NYSEG's request to recover costs and lost revenues associated with the implementation of the market-based retail access credit. On May 24, 2001, NYSEG filed a petition for rehearing with the NYPSC. On May 25, 2001, NYSEG began an action in the New York State Supreme Court (Albany County) for review of the NYPSC order. On August 30, 2001, the NYPSC issued an order denying NYSEG's petition for rehearing.

Independent System Operators: The New York Independent System Operator (NYISO) has operational control over certain transmission facilities of each of the New York transmission-owning utilities, including NYSEG. The NYISO administers centralized capacity, energy, transmission and ancillary service markets, including operating reserves markets in New York.

In early 2000 the NYISO's operating reserves markets experienced problems that resulted in substantial charges to all customers required to buy operating reserves, including NYSEG. Several parties, including NYSEG, commenced FERC and court proceedings in response to these problems. In May 2000 the FERC ordered a bid cap for a portion of the operating reserves markets until the market problems are corrected and the NYISO demonstrates that all reserves markets are competitive, but did not order refunds of earlier higher operating reserves prices as sought by NYSEG. Several parties sought rehearing of FERC's order. On October 1, 2001, the United States District Court for the Northern District of New York issued a stay of NYSEG's action for a period of 12 months or until the FERC issues a decision on the parties' request for rehearing.

In response to complaints and other filings by NYSEG and other parties that raised concerns over energy market flaws, FERC approved in July 2000 a bid cap on energy of $1,000 per megawatt-hour in the NYISO's energy markets. FERC subsequently extended the bid cap until the Northeast Regional Transmission Organization (RTO) is operational and compliant with FERC's recently announced market design rulemaking. (See Regional Transmission Organization, below.) The bid cap may limit the price NYSEG pays or receives for energy it buys or sells in the NYISO energy markets.

In the second quarter of 2001 the NYISO filed with FERC an Automated Mitigation Procedure (AMP). The AMP is designed to mitigate certain unusually high bids so that market prices are not driven by bids that appear to be influenced by the exercise of market power. FERC approved the implementation of the AMP through October 31, 2001. The NYISO filed an application with FERC to extend the AMP.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Regional Transmission Organization: On July 12, 2001, FERC issued an order requiring the NYISO and neighboring New England and Mid-Atlantic independent system operators to negotiate to form a single Northeast RTO. The NYISO and other parties involved in negotiating the formation of the RTO participated in mediation facilitated by a FERC administrative law judge (ALJ) for 45 days, leading to a business plan detailing the process to develop a Northeast RTO. The business plan, coupled with an ALJ's report, have been submitted to the FERC. A FERC decision on the Northeast RTO is expected in the fourth quarter of 2001. In October 2001 FERC also commenced a proceeding to consider national standard market design issues and is expected to engage in a rulemaking proceeding soon. NYSEG and CMP have consistently advocated the formation of a Northeast/Mid-Atlantic RTO because they believe that a regional operator of the power transmission grid and wholesale power market is essential to facilitate greater market liquidity and competition.

Non-utility Generation: Petition to the FERC on NUGs: NYSEG petitioned the FERC in 1995 asking for relief from having to pay approximately $2 billion more than its avoided costs for power purchased over the term of two non-utility generation (NUG) contracts. NYSEG's electric restructuring agreement provides for the recovery of those costs for the term of the contracts through a form of a non-bypassable wires charge. The FERC denied NYSEG's petition and its subsequent request for a rehearing. NYSEG believes that the overpayments under the two contracts violate the Public Utility Regulatory Policies Act of 1978.

NYSEG commenced an action in the United States District Court for the Northern District of New York in August 1997. The complaint asked the District Court to either reform the two NUG contracts by reducing the price NYSEG must pay for electricity under the contracts, or send the matter back to the FERC or to the NYPSC with direction that they modify such contracts. The complaint also sought repayment of all monies paid above NYSEG's avoided costs. On September 29, 2000, the District Court dismissed NYSEG's complaint and endorsed the FERC decision denying NYSEG's petition. NYSEG appealed the District Court's decision to the United States Court of Appeals (Second Circuit). On October 5, 2001, the Second Circuit affirmed the District Court's decision. NYSEG is considering appealing the Second Circuit's decision to the United States Supreme Court or asking the Second Circuit for a rehearing.

New York State Energy Taxes: New York State legislation in 2000 included major changes to the taxation of electric and natural gas companies. Those changes included, among others, the repeal of certain gross receipts taxes and the imposition of a net income tax. On June 28, 2001, the NYPSC issued an order concerning the ratemaking treatment related to the implementation of those tax changes. The order placed certain limits on the recovery of state income taxes but authorized NYSEG to petition for recovery of such taxes. NYSEG filed a petition dated July 26, 2001, for recovery of all costs associated with the tax law changes consistent with its approved electric rate and restructuring agreement.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Central Maine Power Electricity Supply Responsibility: As a result of deregulation of electric generation in Maine in March 2000, CMP no longer has long-term electricity supply responsibilities. The Maine Public Utilities Commission (MPUC) can mandate that CMP be a standard offer provider for supply service should bids by competitive suppliers be deemed unacceptable by the MPUC. CMP is currently required to secure standard offer power for commercial and industrial customers through February 2002, but is permitted to recover any difference between the standard offer rate and its cost of procuring supply.

On September 18, 2001, the MPUC named Constellation Power Source Maine, LLC as the new supplier of standard-offer electricity to CMP's residential and small commercial standard offer class starting in March 2002. The standard-offer rates are in effect for three years until February 1, 2005.

MPUC Stranded Cost Proceeding: On May 8, 2001, the MPUC initiated a proceeding to reset CMP's stranded cost revenue requirement for the period beginning March 1, 2002. On July 16, 2001, CMP filed its recommended methodology for calculating stranded costs with the MPUC. On October 3, 2001, CMP filed its calculation of stranded costs for the period March 1, 2002, through February 28, 2005. The amount requested is approximately the same level as the level for the past two years. The MPUC is scheduled to establish, by February 2002, the level of stranded costs to be recovered in CMP's rates beginning March 1, 2002.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Natural Gas Delivery Business

NYSEG Natural Gas Rate Filings: On October 19, 2001, NYSEG filed a natural gas rate plan with the NYPSC requesting a $21 million natural gas delivery rate increase, as well as a gas adjustment clause for residential customers to flow through the actual commodity cost for natural gas and a weather normalization clause.

NYSEG's natural gas prices have been frozen for six years. The requested increases will allow NYSEG to recover and earn a return on over $250 million in infrastructure improvements since 1995, and ensure the continued safety and reliability of its natural gas delivery system. The rate plan is premised on an 11.5% return on equity and a 48% equity ratio. The new rates would become effective October 2002.

On October 29, 2001, NYSEG filed a petition with the NYPSC for the right to defer the difference between natural gas costs embedded in its residential gas sales rates and actual gas costs incurred for residential sales customers during the period November 1, 2001, through September 30, 2002. The petition is the result of sustained unanticipated high wholesale commodity costs. NYSEG expects the NYPSC to issue its decision later this year.

Connecticut Regulatory Proceedings: In January 2001 the Connecticut Office of Consumer Counsel (OCC) filed an appeal in State Superior Court arguing that the Connecticut Department of Public Utility Control's (DPUC) order in December 2000 approving The Southern Connecticut Gas Company (SCG) multi-year incentive rate plan (IRP) was unlawful. On March 30, 2001, the OCC filed a Motion to Stay the implementation of the DPUC's order, but the Court denied the motion on June 18, 2001.

In May 2001 the DPUC issued a decision for Connecticut Natural Gas' (CNG) IRP, approving a four-year term and replacing the proposed sharing in returns on equity with a graduated sharing in returns on equity in excess of 10.8%. The excess over 10.8% would be shared among shareholders and customers as follows: first 2% 75/25, next 4% 50/50 and over 6% 25/75. Performance and service measures were also adopted. After-tax merger-related natural gas cost savings are to be shared 50/50. On June 20, 2001, the OCC filed an appeal in Superior Court, arguing that the IRP approved by the DPUC for CNG was unlawful.

In August 2001 the appeals for SCG's and CNG's IRPs were combined.

On October 23, 2001, SCG and CNG reached a settlement agreement with the OCC which resolves numerous outstanding regulatory and legal proceedings. The settlement agreement has also been endorsed by Prosecutorial Staff of the DPUC.

The proceedings resolved by this settlement include a review of past SCG affiliate transactions, SCG's Purchased Gas Adjustment Clause (PGA) charges and credits, alleged over-earnings at SCG and CNG, and the above court appeal of the approved IRPs for SCG and CNG.

The settlement provides rate reductions of $1.5 million for SCG and $0.5 million for CNG, effective October 1, 2001. The settlement extends the approved IRPs for an additional year through September 2005 and maintains an earnings sharing mechanism that generally shares earnings above the authorized returns on equity 50/50 between shareholders and customers. In

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

addition, the settlement permits the recovery of SCG deferred gas costs through the PGA and through the customer portion of earnings sharing by the end of the IRP in 2005. Merger-enabled gas costs savings for both companies are also shared 50/50 between customers and shareholders, with the shareholder portion recovered through the PGA.

The settlement was filed with the DPUC on October 25, 2001, and SCG and CNG expect to receive DPUC approval of this settlement in November.

Other Businesses

Natural Gas Storage Facility: On August 3, 2001, Seneca Lake Storage, Inc. (SLSI), a subsidiary of Energy East Enterprises, Inc., announced plans to develop a high-deliverability natural gas storage facility in depleted salt caverns in the Town of Reading, New York. SLSI expects to begin operating the facility in November 2002. The storage facility will be linked to interstate pipelines, have a projected working gas capacity of 300,000 dekatherms (dth) and be capable of delivering up to 50,000 dth a day. SLSI will file with the FERC for authority to use the new facility to supply firm and interruptible natural gas storage services at market-based rates. State and local permits are also being sought from the appropriate agencies.

Other Matters

Accounting Issues: The Financial Accounting Standards Board (FASB), in July 2001, issued Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (Statement 142). Statement 142 requires that goodwill no longer be amortized, but instead be tested for impairment at least annually and an impairment loss recognized as appropriate. It also requires that recognized intangible assets be amortized over their useful lives and be reviewed for impairment, and that a recognized intangible asset with an indefinite life not be amortized until its life is determined to be no longer indefinite. A recognized intangible asset that is not amortized is to be tested for impairment annually and on an interim basis if there are indications that the asset might be impaired, and an impairment loss recognized as appropriate. The provisions of Statement 142 are to become effective in fiscal years beginning after December 15, 2001. The company will adopt Statement 142 as of January 1, 2002. The company is evaluating the effects that the adoption of Statement 142 is expected to have on its financial position and results of operations.

Investing and Financing Activities

Investing Activities: Capital spending for the nine months ended September 30, 2001 was $142 million, including nuclear fuel. For 2001 capital spending is projected to be $226 million, including nuclear fuel, and is expected to be paid for with internally generated funds. Capital spending will be primarily for the extension of energy delivery service, necessary improvements to existing facilities and compliance with environmental requirements.

In August 2001 the company provided a $100 million equity contribution to NYSEG. The contribution was used by NYSEG to repay $152 million in debt in connection with the termination of its sale of accounts receivable program. The equity contribution and debt repayment increased NYSEG's equity ratio to 40% at September 30, 2001.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Financing Activities: During the nine months ended September 30, 2001, the company repurchased 1.3 million shares of its common stock at an average price of $18.45 per share. This is a significantly lower pace of repurchases than in previous years. The company expects that future share repurchases will continue to be at a lower pace than previous years, but likely higher than the pace this year. The company is currently evaluating several factors that will impact the level of future share repurchases. Those factors include future expected cash flows and overall economic and market conditions.

In August 2001 the company began issuing shares through its Dividend Reinvestment and Stock Purchase Plan.

The company has renewed its revolving credit agreement with certain banks that provides for borrowing up to $300 million for a 364-day period, which the company expects to continue to renew annually.

On May 31, 2001, the company filed a shelf registration statement with the SEC to sell up to $1 billion in an unspecified combination of debt and trust preferred securities. The company plans to use the net proceeds to fund the cash portion of the consideration for the pending merger with RGS Energy. (See Item 2 - RGS Energy Merger Agreement.) The company may also use a portion of the proceeds for general corporate purposes, such as debt reduction, new facilities, working capital, repurchases of securities and to fund equity contributions to subsidiaries. In July 2001 a business trust subsidiary issued $345 million of 81/4% Capital Securities. The proceeds were used to purchase Energy East's 81/4% junior subordinated debt securities. Payments on such debt securities will be used by the trust to pay dividends on the Capital Securities. (See Item 1, Note 4 to the Financial Statements.)

CMP issued the following Series E Medium Term Notes (MTN), the proceeds of which were used to redeem debt and for general corporate purposes:

• On January 30, 2001, $25 million of 6.67% Series E MTNs due January 2006.
• On June 20, 2001, $10 million of 7% Series E MTNs due June 2011.
• On July 16, 2001, $5 million of 6 7/8% Series E MTNs due July 2008.
• On July 23, 2001, $20 million of 6 3/8% Series E MTNs due July 2005.
• On August 14, 2001, $15 million of 7% Series E MTNs due August 15, 2011.

On September 28, 2001, SCG issued $30 million of 6.59% Secured Medium-Term Notes due September 2011. The proceeds were used to repay short-term debt and for working capital purposes.

The company expects to issue $250 million of five-year notes in November 2001. The proceeds will be used to fund the $100 million equity contribution to NYSEG noted above and the RGS Energy merger.

Additional financing needed to complete the RGS merger, estimated at $400 million, is expected to be issued in the first quarter of 2002. Through financial instruments entered into in August 2001, the company has locked in the treasury rate component of that financing at an average rate of 5.05%.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

(b) Results of Operations

Due to the mergers completed in 2000 - Connecticut Energy Corporation (CNE) in February 2000 and CMP Group, Inc, CTG Resources, Inc. and Berkshire Energy Resources in September 2000 - the company's results of operations for the quarter and nine months ended September 30, 2001, include those merged companies. Results of operations for the quarter ended September 30, 2000, include CNE and include CMP Group, CTG Resources and Berkshire Energy beginning with September 1, 2000. Results of operations for the nine months ended September 30, 2000, include CNE beginning with February 2000 and include CMP Group, CTG Resources and Berkshire Energy beginning with September 1, 2000.

Three months ended September 30 (Thousands, except per share amounts)	2001	2000	Change
Operating Revenues	$798,848	$651,146	23%
Operating Income	$94,567	$101,282	(7%)
Net Income	$(21,057)	$33,349	(163%)
Average Common Shares Outstanding	116,436	112,812	3%
Earnings Per Share, basic and diluted	$(.18)	$.30	(160%)
Dividends Paid Per Share	$.23	$.22	5%

Earnings per share for the quarter were 21 cents compared to 34 cents for the prior year quarter, excluding a writedown of CMP Group's investment in NEON Communications, Inc. in 2001 and the sale of XENERGY, Inc. in 2000. The decrease is primarily due to the higher costs of wholesale electricity purchases and reduced electric transmission revenues, which was partially offset by cost control efforts.

Nine months ended September 30 (Thousands, except per share amounts)	2001	2000	Change
Operating Revenues	$2,918,997	$1,907,491	53%
Operating Income	$447,256	$368,725	21%
Net Income	$121,118	$183,147	(34%)
Average Common Shares Outstanding	116,737	112,995	3%
Earnings Per Share, basic and diluted	$1.04	$1.62	(36%)
Dividends Paid Per Share	$.69	$.66	5%

Earnings per share for the nine months of 2001 were $1.43 compared to $1.59 for the same period in 2000, excluding a writedown of CMP Group's investment in NEON Communications, Inc. in 2001, and the sale of XENERGY, Inc. and a non-recurring benefit from the sale of the company's coal-fired generation assets in 2000. The decrease is primarily due to the higher costs of natural gas and wholesale electricity purchases and reduced electric transmission revenues. Those decreases were partially offset by earnings from the merged companies, cost control efforts and the share repurchase program. Earnings are expected to be stronger in the fourth quarter of 2001, as compared to last year, due to the realization of merger synergies and lower earnings last year for NYSEG and The Energy Network.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Operating Results for the Electric Delivery Business

Three months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	5,863	4,322	36%
Operating Revenues	$623,997	$519,866	20%
Operating Expenses	$517,242	$380,332	36%
Operating Income	$106,755	$139,534	(23%)

The $104 million increase in operating revenues is primarily due to the addition of CMP's delivery revenues through August 31, 2001, partially offset by lower wholesale deliveries and lower transmission revenues.

Operating expenses increased $137 million primarily due to the addition of CMP's purchases for retail deliveries and its operating costs through August 31, 2001, and higher purchased power costs, partially offset by cost control efforts.

Nine months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	17,568	11,144	58%
Operating Revenues	$1,904,785	$1,390,501	37%
Operating Expenses	$1,508,370	$1,040,168	45%
Operating Income	$396,415	$350,333	13%

The $514 million increase in operating revenues is primarily due to the addition of CMP's delivery revenues through August 31, 2001, and higher retail deliveries because of colder weather in the first quarter this year. Those increases were partially offset by lower wholesale deliveries and lower transmission revenues.

Operating expenses increased $468 million primarily due to the addition of CMP's operating costs through August 31, 2001. That increase was partially offset by lower purchased power costs, primarily due to lower wholesale deliveries, and cost control efforts.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

Energy East Corporation

Operating Results for the Natural Gas Delivery Business

Three months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Dekatherms	23,637	12,660	87%
Operating Revenues	$113,356	$90,832	25%
Operating Expenses	$130,870	$113,068	16%
Operating Loss	$(17,514)	$(22,236)	(21%)

The $23 million increase in operating revenues is primarily due to the addition of CNG's and Berkshire Gas' delivery revenues through August 31, 2001, partially offset by lower natural gas prices for wholesale sales and lower retail deliveries.

Operating expenses increased $18 million primarily due to the addition of CNG's and Berkshire's operating costs through August 31, 2001, partially offset by lower purchased gas costs due to favorable market conditions and cost control efforts.

Nine months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Dekatherms	105,575	65,234	62%
Operating Revenues	$808,179	$407,175	98%
Operating Expenses	$746,605	$366,960	103%
Operating Income	$61,574	$40,215	53%

The $401 million increase in operating revenues is primarily due to the addition of SCG's delivery revenues for January 2001 and CNG's and Berkshire Gas' delivery revenues through August 31, 2001, and the recovery of increased natural gas costs caused by higher market prices.

Operating expenses increased $380 million primarily due to the addition of SCG's operating costs for January 2001 and CNG's and Berkshire's operating costs through August 31, 2001, and an increase in retail purchased gas costs caused by higher market prices.

Item 1.  Financial Statements
(CMP is a wholly-owned subsidiary of CMP Group, Inc. Effective September 1, 2000, CMP Group became a wholly-owned subsidiary of Energy East Corporation.)

Central Maine Power Company
Consolidated Statements of Income - (Unaudited)

	Three Months				Nine Months
Periods Ended Sep. 30	2001	From Acquisition 2000	Predecessor To Acquisition 2000	2001		From Acquisition 2000	Predecessor To Acquisition 2000
	(Thousands)
Operating Revenues
Sales and services	$200,229	$64,920	$155,121	$622,861		$64,920	$613,475
Operating Expenses
Electricity purchased and     fuel used in generation	109,165	34,655	94,225	342,825		34,655	351,112
Other operating expenses	42,937	14,175	44,723	128,476		14,175	151,245
Maintenance	9,594	2,478	6,318	30,342		2,478	24,468
Depreciation and     amortization	9,102	3,435	5,168	27,342		3,435	23,661
Other taxes	5,349	1,725	3,052	15,327		1,725	12,961
Total Operating         Expenses	176,147	56,468	153,486	544,312		56,468	563,447
Operating Income	24,082	8,452	1,635	78,549		8,452	50,028
Other (Income) and   Deductions	(157)	(1,239)	(2,383)	(2,240)		(1,239)	(13,035)
Interest Charges, Net	7,060	2,229	4,111	20,125		2,229	31,072
Recovery of Non-  Provided Deferred   Income Taxes	-	(274)	(781)	-		(274)	(75,421)
Income Before   Income Taxes	17,179	7,736	688	60,664		7,736	107,412
Income Taxes	5,904	3,430	(965)	23,369		3,430	77,534
Net Income	11,275	4,306	1,653	37,295		4,306	29,878
Preferred Stock   Dividends	361	186	372	1,082		186	1,490
Earnings Available for   Common Stock	$10,914	$4,120	$1,281	$36,213		$4,120	$28,388

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Central Maine Power Company
Consolidated Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Assets	(Thousands)
Current Assets
Cash and cash equivalents	$12,453	$17,933
Accounts receivable, net	123,014	135,707
Materials and supplies, at average cost	9,030	9,052
Accumulated deferred income tax benefits, net	76	4,533
Prepayments	23,099	9,574
Other	39	38
Total Current Assets	167,711	176,837
Utility Plant, at Original Cost
Electric	1,301,302	1,392,693
Less accumulated depreciation	483,050	571,275
Net Utility Plant in Service	818,252	821,418
Construction work in progress	17,782	16,682
Total Utility Plant	836,034	838,100
Other Property	6,586	6,526
Investment in Associated Companies, at Equity	30,267	33,952
Regulatory and Other Assets
Regulatory assets
Nuclear plant obligations	222,670	234,929
Unfunded future income taxes	85,293	80,999
Unamortized loss on debt reacquisitions	10,741	12,057
Demand-side management program costs	15,681	20,563
Environmental remediation costs	6,492	8,217
Other	135,195	118,480
Total regulatory assets	476,072	475,245
Other assets
Goodwill, net	331,700	342,306
Prepaid pension benefits	29,819	32,070
Other	17,425	23,761
Total other assets	378,944	398,137
Total Regulatory and Other Assets	855,016	873,382
Total Assets	$1,895,614	$1,928,797

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Central Maine Power Company
Consolidated Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Liabilities	(Thousands)
Current Liabilities
Current portion of long-term debt	$62,221	$12,946
Notes payable	38,000	46,500
Accounts payable and accrued liabilities	58,842	77,075
Interest accrued	2,410	5,084
Other	42,716	57,423
Total Current Liabilities	204,189	199,028
Regulatory and Other Liabilities  Regulatory liabilities
Deferred income taxes	43,133	28,812
Deferred income taxes, unfunded future income taxes	34,803	33,051
Gain on sale of generation assets	204,298	232,041
Pension benefits	44,920	47,632
Other	26,281	37,796
Total regulatory liabilities	353,435	379,332
Other liabilities
Deferred income taxes	23,133	20,065
Nuclear plant obligations	222,670	234,929
Other postretirement benefits	69,801	69,808
Environmental remediation costs	3,846	4,147
Other	93,735	99,710
Total other liabilities	413,185	428,659
Total Regulatory and Other Liabilities	766,620	807,991
Long-term debt	235,869	222,309
Total Liabilities	1,206,678	1,229,328
Commitments	-	-
Preferred Stock  Preferred stock	35,571	35,571
Capital in excess of par value	(3,363)	(3,503)
Common Stock Equity  Common stock	162,213	162,213
Capital in excess of par value	498,996	500,897
Retained earnings	14,519	23,291
Treasury stock, at cost	(19,000)	(19,000)
Total Common Stock Equity	656,728	667,401
Total Liabilities and Stockholder's Equity	$1,895,614	$1,928,797

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Central Maine Power Company
Consolidated Statements of Cash Flows - (Unaudited)

Periods Months Ended Sep. 30	Nine Months 2001	From Acquisition 2000	Predecessor To Acquisition 2000
	(Thousands)
Operating Activities
Net income	$37,295	$4,306	$29,878
Adjustments to reconcile net income to net   cash provided by operating activities
Depreciation and amortization	27,342	3,435	23,661
Income taxes and investment tax credits deferred, net	19,596	1,355	(9,981)
Power supply costs recovered with asset sale	-	257	(8,355)
Changes in current operating assets and liabilities
Accounts receivable	12,693	81	29,067
Inventory	22	(78)	405
Prepayments	(13,525)	(417)	(14,137)
Accounts payable and accrued liabilities	(18,233)	(23,394)	(21,835)
Other current liabilities	(14,707)	(4,084)	19,700
Changes in deferred balances and related carrying costs	(1,080)	(195)	15,170
Asset sale settlement costs	(12,000)	-	-
Deferred NUG costs	(13,459)	-	-
Other, net	(3,194)	(5,457)	14,073
Net Cash Provided by (Used in) Operating Activities	20,750	(24,191)	77,646
Investing Activities
Utility plant additions	(34,362)	(2,247)	(60,671)
Contributions in aid of construction, net	-	116	35,896
Other property and investments, net	(94)	3	856
Net Cash Used in Investing Activities	(34,456)	(2,128)	(23,919)
Financing Activities
Long-term note issuances	75,000	30,000	125,000
Long-term note retirements	(12,207)	(242)	(61,955)
Notes payable, net	(8,500)	-	-
Liquidating dividends	-	(190,000)	-
Dividends on common and preferred stock	(46,067)	-	(35,384)
Net Cash Provided by (Used in) Financing Activities	8,226	(160,242)	27,661
Net (Decrease) Increase in Cash and Cash Equivalents	(5,480)	(186,561)	81,388
Cash and Cash Equivalents, Beginning of Period	17,933	194,260	112,872
Cash and Cash Equivalents, End of Period	$12,453	$7,699	$194,260
Supplemental Disclosure of Cash Flows Information
Cash paid during the period:
Interest, net of amounts capitalized	$20,277	$2,099	$10,316
Income taxes	$11,427	$50	$24,553

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

Central Maine Power Company
Consolidated Statements of Retained Earnings - (Unaudited)

Periods Ended Sep. 30	Nine Months 2001	From Acquisition 2000	Predecessor To Acquisition 2000
	(Thousands)
Balance, beginning of period	$23,291	-	$100,754
Add net income	37,295	$4,306	29,878
	60,586	4,306	130,632
Deduct dividends on capital stock
Preferred	1,082	-	1,676
Common	44,985	-	33,708
Adjustment to retained earnings	-	-	95,075
Amortization of reacquired capital stock	-	15	173
	46,067	15	130,632
Balance, end of period	$14,519	$4,291	-

The notes on pages 33 through 36 are an integral part of the financial statements.

Central Maine Power Company
Consolidated Statements of Comprehensive Income - (Unaudited)

	Three Months			Nine Months
Periods Ended Sep. 30	2001	From Acquisition 2000	Predecessor To Acquisition 2000	2001	From Acquisition 2000	Predecessor To Acquisition 2000
	(Thousands)
Net income	$11,275	$4,306	$1,653	$37,295	$4,306	$29,878
Other comprehensive loss,    net of tax
Net unrealized loss     on investments	(184)	-	-	-	-	-
Total other     comprehensive loss	(184)	-	-	-	-	-
Comprehensive income	$11,091	$4,306	$1,653	$37,295	$4,306	$29,878

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations

Central Maine Power Company

(a) Liquidity and Capital Resources

Electric Delivery Business

Sale of Vermont Yankee: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Regional Transmission Organization: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Central Maine Power Electricity Supply Responsibility: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

MPUC Stranded Cost Proceeding: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Other Matters

Accounting Issues: See Energy East Corporation's Item 2(a), Other Matters, for the discussion of this item.

Investing and Financing Activities

Investing Activities: Capital spending for the nine months ended September 30, 2001 was $34 million, including nuclear fuel. For 2001 capital spending is projected to be $45 million, including nuclear fuel, and is expected to be paid for with internally generated funds. Capital spending will be primarily for the extension of electric delivery service, necessary improvements to existing facilities and compliance with environmental requirements.

Financing Activities: CMP issued the following Series E Medium Term Notes (MTN), the proceeds of which were used to redeem debt and for general corporate purposes:

• On January 30, 2001, $25 million of 6.67% Series E MTNs due January 2006.
• On June 20, 2001, $10 million of 7% Series E MTNs due June 2011.
• On July 16, 2001, $5 million of 6 7/8% Series E MTNs due July 2008.
• On July 23, 2001, $20 million of 6 3/8% Series E MTNs due July 2005.
• On August 14, 2001, $15 million of 7% Series E MTNs due August 15, 2011.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations

Central Maine Power Company

(b) Results of Operations

Three months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	2,367	2,404	(2%)
Operating Revenues	$200,229	$220,041	(9%)
Operating Expenses	$176,147	$209,954	(16%)
Operating Income	$24,082	$10,087	139%
Earnings Available for Common Stock	$10,914	$5,401	102%

Earnings for the quarter increased about $6 million primarily due to cost control efforts, partially offset by a decrease in other income.

Operating revenues for the quarter decreased about $20 million primarily because CMP no longer supplies electricity unless it is directed by the MPUC to be the standard offer provider. CMP is currently the standard offer provider for commercial and industrial rate classes.

Operating expenses decreased $34 million primarily due to decreased purchased power expenses, because CMP no longer supplies electricity to certain customers, and as a result of cost control efforts.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations

Central Maine Power Company

Nine months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	7,006	7,072	(1%)
Operating Revenues	$622,861	$678,395	(8%)
Operating Expenses	$544,312	$619,915	(12%)
Operating Income	$78,549	$58,480	34%
Earnings Available for Common Stock	$36,213	$32,508	11%

Earnings for the nine months increased $4 million primarily due to cost control efforts. A decrease in other income was offset by a decrease in interest charges. The deregulation of Maine's electric industry affected operating revenues and expenses for the period as discussed below. CMP no longer supplies electricity unless it is directed by the MPUC to be the standard offer provider. CMP is currently the standard offer provider for commercial and industrial rate classes.

The $56 million decrease in operating revenues is primarily because CMP no longer supplies electricity to certain retail customers, and a rate reduction that began March 1, 2000. Those decreases were partially offset by higher transmission revenues and asset sale gain amortization.

Operating expenses decreased $76 million primarily due to decreased purchased power expenses, because CMP no longer supplies electricity to certain customers, and as a result of cost control efforts.

Item 1.  Financial Statements

New York State Electric & Gas Corporation
Statements of Income - (Unaudited)

	Three Months		Nine Months
Periods Ended September 30	2001	2000	2001	2000
	(Thousands)
Operating Revenues
Electric	$423,676	$457,149	$1,281,658	$1,327,785
Natural gas	36,318	41,457	259,337	241,828
Total Operating Revenues	459,994	498,606	1,540,995	1,569,613
Operating Expenses
Electricity purchased and fuel     used in generation	223,243	215,308	618,559	638,291
Natural gas purchased	23,226	31,462	185,742	140,997
Other operating expenses	59,858	71,582	176,654	188,786
Maintenance	21,560	16,287	62,433	61,977
Depreciation and amortization	25,251	27,292	76,380	82,029
Other taxes	32,702	17,544	98,605	87,643
Total Operating Expenses	385,840	379,475	1,218,373	1,199,723
Operating Income	74,154	119,131	322,622	369,890
Interest Charges, Net	25,356	26,660	79,121	76,835
Other (Income) and Deductions	(6,408)	1,701	(4,942)	1,954
Income Before Income Taxes	55,206	90,770	248,443	291,101
Income Taxes	23,099	48,394	103,520	110,569
Net Income	32,107	42,376	144,923	180,532
Preferred Stock Dividends	99	99	297	297
Earnings Available for Common Stock	$32,008	$42,277	$144,626	$180,235

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

New York State Electric & Gas Corporation
Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Assets	(Thousands)
Current Assets
Cash and cash equivalents	$12,974	$17,618
Special deposits	1,424	21,440
Accounts receivable, net	273,082	200,846
Fuel, at average cost	39,649	28,677
Materials and supplies, at average cost	7,033	7,395
Prepayments	36,842	27,893
Accumulated deferred income tax benefits, net	3,986	3,943
Total Current Assets	374,990	307,812
Utility Plant, at Original Cost
Electric	3,403,732	3,391,619
Natural gas	646,868	635,563
Common	132,935	140,020
	4,183,535	4,167,202
Less accumulated depreciation	2,163,952	2,116,787
Net Utility Plant in Service	2,019,583	2,050,415
Construction work in progress	21,634	25,006
Total Utility Plant	2,041,217	2,075,421
Other Property and Investments, Net	80,657	76,737
Regulatory and Other Assets
Regulatory assets
Unfunded future income taxes	45,062	44,610
Unamortized loss on debt reacquisitions	43,917	46,791
Demand-side management program costs	10,154	28,366
Environmental remediation costs	52,900	58,200
Other	30,296	30,386
Total regulatory assets	182,329	208,353
Other assets
Prepaid pension benefits	313,909	250,826
Goodwill, net	11,295	11,582
Other	19,072	22,254
Total other assets	344,276	284,662
Total Regulatory and Other Assets	526,605	493,015
Total Assets	$3,023,469	$2,952,985

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

New York State Electric & Gas Corporation
Balance Sheets - (Unaudited)

	Sep. 30, 2001	Dec. 31, 2000
Liabilities	(Thousands)
Current Liabilities
Current portion of long-term debt	$292	$1,088
Notes payable	23,000	123,000
Accounts payable and accrued liabilities	101,531	160,654
Interest accrued	27,074	15,925
Taxes accrued	33,040	9,006
Other	66,583	71,510
Total Current Liabilities	251,520	381,183
Regulatory and Other Liabilities  Regulatory liabilities
Deferred income taxes	38,626	50,306
Deferred income taxes, unfunded future income taxes	18,848	18,848
Other	26,906	16,975
Total regulatory liabilities	84,380	86,129
Other liabilities
Deferred income taxes	304,513	287,560
Other postretirement benefits	190,641	183,666
Environmental remediation costs	76,500	77,500
Derivative liabilities	11,602	-
Other	96,180	100,148
Total other liabilities	679,436	648,874
Total Regulatory and Other Liabilities	763,816	735,003
Long-term debt	1,189,889	1,189,249
Total Liabilities	2,205,225	2,305,435
Commitments	-	-
Preferred Stock  Preferred stock redeemable solely at NYSEG's option	10,159	10,159
Common Stock Equity  Common stock	430,057	430,057
Capital in excess of par value	270,835	170,678
Retained earnings	114,413	35,329
Accumulated other comprehensive income (loss)	(7,220)	1,327
Total Common Stock Equity	808,085	637,391
Total Liabilities and Stockholder's Equity	$3,023,469	$2,952,985

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

New York State Electric & Gas Corporation
Statements of Cash Flows - (Unaudited)

Nine Months Ended September 30	2001	2000
Operating Activities	(Thousands)
Net income	$144,923	$180,532
Adjustments to reconcile net income to net   cash provided by operating activities
Depreciation and amortization	76,380	82,029
Income taxes and investment tax credits deferred, net	9,562	(3,366)
Pension income	(53,992)	(48,739)
Changes in current operating assets and liabilities
Accounts receivable	79,764	33,838
Sale of accounts receivable program	(152,000)	-
Loan receivable, affiliated company	-	17,789
Inventory	(10,610)	(18,873)
Prepayments	(8,949)	5,347
Accounts payable and accrued liabilities	(59,123)	(26,655)
Interest accrued	11,149	10,693
Taxes accrued	24,034	(4,579)
Other current liabilities	(4,927)	10,936
Other, net	30,956	9,540
Net Cash Provided by Operating Activities	87,167	248,492
Investing Activities
Utility plant additions	(52,009)	(58,595)
Other property and investments	4,009	597
Other	22,028	3,398
Net Cash Used in Investing Activities	(25,972)	(54,600)
Financing Activities
Equity infusion	100,000	-
Notes payable, net	(100,000)	(112,240)
Dividends on common and preferred stock	(65,839)	(168,622)
Net Cash Used in Financing Activities	(65,839)	(280,862)
Net Decrease in Cash and Cash Equivalents	(4,644)	(86,970)
Cash and Cash Equivalents, Beginning of Period	17,618	114,494
Cash and Cash Equivalents, End of Period	12,974	$27,524
Supplemental Disclosure of Cash Flows Information
Cash paid during the period:   Interest, net of amounts capitalized   Income taxes	$64,313  $64,112	$62,102  $107,468

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 1.  Financial Statements (Cont'd)

New York State Electric & Gas Corporation
Statements of Retained Earnings - (Unaudited)

Nine Months Ended September 30	2001	2000
	(Thousands)
Balance, Beginning of Period	$35,329	$26,731
Add net income	144,923	180,532
	180,252	207,263
Deduct Dividends on Capital Stock
Preferred	297	297
Common	65,542	168,325
	65,839	168,622
Balance, End of Period	$114,413	$38,641

The notes on pages 33 through 36 are an integral part of the financial statements.

New York State Electric & Gas Corporation
Statements of Comprehensive Income - (Unaudited)

	Three Months		Nine Months
Periods Ended September 30	2001	2000	2001	2000
	(Thousands)
Net income	$32,107	$42,376	$144,923	$180,532
Other comprehensive income (loss), net of tax
Net unrealized gain (loss) on investments	(27)	390	57	1,284
Minimum pension liability adjustment	-	721	50	(630)
Unrealized gains (losses) on derivatives   qualified as hedges
Unrealized gains on derivatives qualified       as hedges arising during the period due       to cumulative effect of a change in       accounting principle	-	-	54,602	-
Unrealized losses on derivatives qualified       as hedges	(3,255)	-	(64,975)	-
Reclassification adjustment for losses included       in net income	14,119	-	1,719	-
Net unrealized gains (losses) on derivatives     qualified as hedges	10,864	-	(8,654)	-
Total other comprehensive income (loss)	10,837	1,111	(8,547)	654
Comprehensive income	$42,944	$43,487	$136,376	$181,186

The notes on pages 33 through 36 are an integral part of the financial statements.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations

New York State Electric & Gas Corporation

(a) Liquidity and Capital Resources

Electric Delivery Business

Sale of Nine Mile Point 2: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

NYSEG Electric Rate Agreement: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Retail Access Credit: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Independent System Operators: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Regional Transmission Organization: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Non-utility Generation: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

New York State Energy Taxes: See Energy East Corporation's Item 2(a), Electric Delivery Business, for the discussion of this item.

Natural Gas Delivery Business

NYSEG's Natural Gas Rate Filings: See Energy East Corporation's Item 2(a), Natural Gas Delivery Business, for the discussion of this item.

Other Matters

Accounting Issues: See Energy East Corporation's Item 2(a), Other Matters, for the discussion of this item.

Investing Activities

Investing Activities: Capital spending for the nine months ended September 30, 2001 was $50 million, including nuclear fuel. For 2001 capital spending is projected to be $75 million, including nuclear fuel, and is expected to be paid for with internally generated funds. Capital spending will be primarily for the extension of energy delivery service, necessary improvements to existing facilities and compliance with environmental requirements.

Financing Activities: In August 2001, Energy East Corporation provided a $100 million equity contribution to NYSEG. The contribution was used by NYSEG to repay $152 million in debt in connection with the termination of its sale of accounts receivable program. The equity contribution and debt repayment increased NYSEG's equity ratio to 40% at September 30, 2001.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

New York State Electric & Gas Corporation

(b) Results of Operations

Three months ended September 30 (Thousands)	2001	2000	Change
Operating Revenues	$459,994	$498,606	(8%)
Operating Income	$74,154	$119,131	(38%)
Earnings Available for Common Stock	$32,008	$42,277	(24%)

Earnings for the third quarter decreased $10 million due to higher costs of electricity purchases and lower electric transmission revenues. Those decreases were partially offset by cost control efforts and favorable natural gas purchase prices.

Nine months ended September 30 (Thousands)	2001	2000	Change
Operating Revenues	$1,540,995	$1,569,613	(2%)
Operating Income	$322,622	$369,890	(13%)
Earnings Available for Common Stock	$144,626	$180,235	(20%)

Earnings for the nine months decreased $28 million, excluding a non-recurring benefit in 2000 from the sale of an affiliate's coal-fired generation assets. The decrease is primarily due to higher prices of natural gas purchased and lower electric transmission revenues. Those decreases were partially offset by higher retail electricity deliveries because of colder winter weather, and cost control efforts.

Operating Results for the Electric Delivery Business

Three months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	3,496	3,558	(2%)
Operating Revenues	$423,676	$457,149	(7%)
Operating Expenses	$341,001	$323,831	5%
Operating Income	$82,675	$133,318	(38%)

The $33 million decrease in operating revenues is primarily due to lower wholesale deliveries and lower transmission revenues.

Operating expenses increased $17 million for the quarter due to higher purchased power costs. That increase was partially offset by lower purchased power volume caused by lower wholesale deliveries, and cost control efforts.

Item 2.  Management's Discussion and Analysis of Financial Condition
              and Results of Operations (Cont'd)

New York State Electric & Gas Corporation

Nine months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Megawatt-hours	10,563	10,380	2%
Operating Revenues	$1,281,658	$1,327,785	(3%)
Operating Expenses	$963,785	$983,666	(2%)
Operating Income	$317,873	$344,119	(8%)

The $46 million decrease in operating revenues is primarily due to lower wholesale deliveries and lower transmission revenues. Those decreases were partially offset by higher retail deliveries because of colder winter weather earlier this year.

Operating expenses decreased $20 million due to lower purchased power costs primarily due to lower wholesale deliveries, and cost control efforts.

Operating Results for the Natural Gas Delivery Business

Three months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Dekatherms	6,939	7,229	(4%)
Operating Revenues	$36,318	$41,457	(12%)
Operating Expenses	$44,839	$55,644	(19%)
Operating Loss	$(8,521)	$(14,187)	(40%)

The $5 million decrease in operating revenues is primarily due to lower natural gas prices for wholesale sales.

Operating expenses decreased $11 million primarily due to lower purchased natural gas costs because of favorable market conditions and cost control efforts.

Nine months ended September 30 (Thousands)	2001	2000	Change
Retail Deliveries - Dekatherms	40,676	42,030	(3%)
Operating Revenues	$259,337	$241,828	7%
Operating Expenses	$254,588	$216,057	18%
Operating Income	$4,749	$25,771	(82%)

The $18 million increase in operating revenues is primarily due to the recovery of increased natural gas costs for non-residential deliveries in the first quarter this year, partially offset by lower wholesale sales and retail deliveries.

Operating expenses increased $39 million primarily due to an increase in the price of natural gas. That increase was partially offset by cost control efforts.

Item 1.  Financial Statements

Notes to Financial Statements
for
Energy East Corporation
Central Maine Power Company
New York State Electric & Gas Corporation

Notes to Financial Statements of Registrants:

Registrant	Applicable Notes
Energy East	1, 2, 3, 4, 5, 6
CMP	1, 2, 5, 6
NYSEG	1, 5, 6

Note 1. Unaudited Financial Statements

The accompanying unaudited financial statements reflect all adjustments which are necessary, in the opinion of the management of the registrants, for a fair presentation of the interim results. All such adjustments are of a normal, recurring nature.

Energy East's financial statements and CMP's financial statements consolidate their majority-owned subsidiaries after eliminating all intercompany transactions.

The accompanying unaudited financial statements for each registrant should be read in conjunction with the financial statements and notes contained in the report on Form 10-K filed by each registrant for the year ended December 31, 2000. Due to the seasonal nature of the registrants' operations, financial results for interim periods are not necessarily indicative of trends for a 12-month period.

Note 2. Acquisitions of Connecticut Energy, CMP Group, CTG Resources and Berkshire Energy

Due to completion of the company's merger with CNE on February 8, 2000, and its mergers with CMP Group, CTG Resources and Berkshire Energy on September 1, 2000, the company's consolidated financial statements include CNE's results beginning with February 2000 and include CMP Group's, CTG Resources' and Berkshire Energy's results beginning with September 2000.

Amounts presented in the consolidated financial statements for CMP for the periods from July 1, 2000, to the date of acquisition and January 1, 2000, to the date of acquisition, reflect the historical predecessor amounts reported by CMP prior to its acquisition by Energy East. Amounts reported for the three months and nine months ended September 30, 2001, include the amortization of goodwill related to the acquisition of CMP by Energy East.

The four merger transactions were accounted for using the purchase method. In each transaction the purchase price was allocated to the assets acquired and liabilities assumed based on values on the date of purchase. The cost in excess of the fair value of the net assets acquired in each transaction was recorded as goodwill and will be amortized on a straight-line basis over the estimated useful life. (See Energy East Corporation's Item 2(a), Other Matters - Accounting Issues.) The useful life is determined based on the individual characteristics of each acquired company and the lives range from four to 40 years. Goodwill has been adjusted over the 12 months following the mergers as actual amounts for estimated liabilities became known.

The following pro forma information for the company for the three months and nine months ended September 30, 2000, which is based on unaudited data, gives effect to the company's four mergers as if they had been completed January 1, 2000. This information does not reflect future revenues or cost savings that may result from the mergers and is not indicative of actual results of operations had the mergers occurred at the beginning of the period presented or of results that may occur in the future.

Periods Ended September 30, 2000 (Thousands, except per share amounts)	Three Months	Nine Months
Revenues	$853,143	$2,853,967
Net income	$19,535	$205,204
Earnings per share of common stock	$.16	$1.69

Pro forma adjustments reflected in the amounts presented above include: (1) additional depreciation and amortization related to adjusting the four merged companies' non-utility assets to fair value based on an independent appraisal, (2) amortization of goodwill, (3) elimination of merger costs, (4) lower investment income due to the sale of temporary investments to complete the mergers (5) interest expense due to the issuance of merger-related debt and (6) adjustments for estimated tax effects of the above adjustments.

Note 3. Fair Value of Financial Instruments

The company has been evaluating the carrying value of CMP Group's $90 million investment in NEON Communications, Inc. because there has been a significant decline in the market value of NEON common shares over the past twelve months. That decline is consistent with the market performance of telecommunications businesses as a whole. During the third quarter of 2001, the company determined that the decline in NEON's market value was other than temporary and wrote down the cost basis of the investment in NEON Communications to $12 million. The write-down, which totaled $46 million after taxes, or 39 cents per share, is reflected in the company's earnings for the third quarter of 2001.

Note 4. Trust Preferred Securities

In July 2001 Energy East Capital Trust I, a Delaware business trust subsidiary of the company, issued $345 million of company-obligated mandatorily redeemable 81/4% Capital Securities. The trust is a 100% owned finance subsidiary of the company. The assets of the trust consist solely of the company's 81/4% junior subordinated debt securities maturing on July 31, 2031. The company has fully and unconditionally guaranteed the trust's payment obligations with respect to the Capital Securities.

Note 5. Segment Information

Energy East's electric delivery business consists of its regulated transmission, distribution and generation operations in New York and Maine; and its natural gas delivery business consists of its regulated transportation, storage and distribution operations in New York, Connecticut, Maine and Massachusetts. Other includes: the company's corporate assets, interest costs and operating expenses; intersegment eliminations; and non-utility businesses.

CMP's electric delivery business consists of its transmission and distribution operations. CMP operates in the State of Maine. Other includes CMP's corporate assets.

NYSEG's electric delivery business consists of its transmission, distribution and generation operations; and its natural gas segment consists of its transportation, storage and distribution operations. NYSEG operates in the State of New York. Other includes NYSEG's corporate assets.

Selected financial information for Energy East's, CMP's and NYSEG's business segments is presented in the following table.

	Electric      Delivery	Natural Gas     Delivery	Other	Total
		(Thousands)
Three Months Ended
Sep. 30, 2001
Operating Revenues    Energy East    CMP    NYSEG	$623,997  $200,229  $423,676	$113,356  -       $36,318	$61,495  -       -	$798,848  $200,229  $459,994
Net Income (Loss)    Energy East    CMP    NYSEG	$45,381  $11,275  $39,213	$(18,005) -       $(7,106)	$(48,433) -       -	$(21,057) $11,275  $32,107
Sep. 30, 2000
Operating Revenues    Energy East    CMP (From acquisition)    CMP (Predecessor)    NYSEG	$519,866  $64,920  $155,121  $457,149	$90,832  -       -       $41,457	$40,448  -       -       -	$651,146  $64,920  $155,121  $498,606
Net Income (Loss)    Energy East    CMP (From acquisition)    CMP (Predecessor)    NYSEG	$60,021  $4,306  $1,653  $55,804	$(19,725) -       -       $(13,428)	$(6,947) -       -       -	$33,349  $4,306  $1,653  $42,376
Nine Months Ended
Sep. 30, 2001
Operating Revenues    Energy East    CMP    NYSEG	$1,904,785  $622,861  $1,281,658	$808,179  -       $259,337	$206,033  -       -	$2,918,997  $622,861  1,540,995
Net Income (Loss)    Energy East    CMP    NYSEG	$168,720  $37,295  $148,920	$8,292  -       $(3,997)	$(55,894) -       -	$121,118  $37,295  $144,923
Sep. 30, 2000
Operating Revenues    Energy East    CMP (From acquisition)    CMP (Predecessor)    NYSEG	$1,390,501  $64,920  $613,475  $1,327,785	$407,175  -       -       $241,828	$109,815  -       -       -	$1,907,491  $64,920  $613,475  $1,569,613
Net Income (Loss)    Energy East    CMP (From acquisition)    CMP (Predecessor)    NYSEG	$179,092  $4,306  $29,878  $175,039	$6,010  -       -       $5,493	$(1,955) -       -       -	$183,147  $4,306  $29,878  $180,532

	Electric      Delivery	Natural Gas     Delivery	Other	Total
		(Thousands)
Total Assets
Sep. 30, 2001    Energy East    CMP    NYSEG	$4,210,317  $1,886,380  $2,181,132	$2,455,506  -       $676,035	$444,509  $9,234  $166,302	$7,110,332  $1,895,614  $3,023,469
December 31, 2000    Energy East    CMP    NYSEG	$4,212,623  $1,919,630  $2,116,933	$2,406,848  -       $639,684	$394,257  $9,167  $196,368	$7,013,728  $1,928,797  $2,952,985

Note 6. Reclassifications

Certain amounts have been reclassified on the unaudited financial statements to conform with the 2001 presentation.

Forward-looking Statements

This Form 10-Q contains certain forward-looking statements that are based upon management's current expectations and information that is currently available. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements in certain circumstances. Whenever used in this report, the words "estimate," "expect," "believe," or similar expressions are intended to identify such forward-looking statements.

In addition to the assumptions and other factors referred to specifically in connection with such statements, factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, among others: the deregulation and continued regulatory unbundling of a vertically integrated industry; the companies' ability to compete in the rapidly changing and increasingly competitive electricity and natural gas utility markets; regulatory uncertainty in a politically-charged environment of rising energy prices; the operation of the New York Independent System Operator (NYISO) and ISO New England, Inc.; the operation of a regional transmission organization; the ability to control non-utility generator and other costs; changes in fuel supply or cost and the success of strategies to satisfy power requirements now that all of the company's coal-fired generation assets have been sold; the company's ability to expand its products and services, including its energy infrastructure in the Northeast; the company's ability to integrate the operations of CNE, CMP Group, CTG Resources, Berkshire Energy and RGS Energy with its operations; market risk; the ability to obtain adequate and timely rate relief; nuclear or environmental incidents; legal or administrative proceedings; changes in the cost or availability of capital; growth in the areas in which the companies are doing business; weather variations affecting customer energy usage; and other considerations that may be disclosed from time to time in the companies publicly disseminated documents and filings. The companies undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
(See reports on Form 10-K for Energy East, CMP and NYSEG for fiscal year ended December 31, 2000, Item 7A- Quantitative and Qualitative Disclosures About Market Risk.)

Interest Rate Risk: Additional financing needed to complete the RGS Energy merger, estimated at $400 million, is expected to be issued in the first quarter of 2002. Through financial instruments entered into in August 2001, the company has locked in the treasury rate component of that financing at an average rate of 5.05%.

In July 2001 the company entered into a fixed-to-floating interest rate swap on an 8.05% bond due November 2010. The company will receive a semi-annual fixed rate of 8.05% and will pay a rate based on the six month London Interbank Offered Rate plus 1.875%, on a notional amount of $200 million through November 2010.

Based on current interest rates, the company believes that the market risk for the above arrangements is not material.

Commodity Price Risk: The company's natural gas supply alliance with BP Energy provides the company with additional tools and expertise in natural gas price risk management. (See the company's Form 10-Q for the quarter ended June 30, 2001, Item 2(a) Liquidity and Capital Resources - Natural Gas Delivery Business - Natural Gas Supply Alliance.)

NYSEG has hedged approximately 93% of its expected residential natural gas load through April 2002 with gas in storage, futures and option contracts. For its remaining unhedged positions through April 2002, a $1.00 per dekatherm change in the cost of natural gas changes natural gas costs by about $1.6 million.

NYSEG uses electricity contracts and contracts for differences (CFDs) to manage against fluctuations in the cost of electricity. Those contracts allow NYSEG to fix margins on the majority of its retail electricity sales. The cost or benefit of those contracts is included in the amount expensed for electricity purchased when the electricity is sold. NYSEG has CFDs, generation and other electricity contracts, which provide for 97% of its expected electric energy requirements for the remainder of 2001, 93% for 2002 and 67% for 2003.

NYSEG is also exposed to price fluctuations in the price of electricity. In situations where the electricity contracts do not cover requirements, NYSEG must buy electricity in the market. Conversely, when NYSEG has contracts for more electricity than its requirements, it must sell the excess in the market. NYSEG uses a cash flow at risk (CFAR) calculation to measure price risk for electricity. At October 31, 2001, the CFAR for electricity requirements was approximately $9 million for the next 12-month period. The CFAR indicates the amount by which the fair value of NYSEG's net position could vary from its current level over a 12-month period, with a 97.5% certainty, assuming all unhedged positions during that period are filled in the market.

PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits - See Exhibit Index.

(b)  Reports on Form 8-K

No reports on Form 8-K were filed during the quarter.

Signatures

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

	ENERGY EAST CORPORATION                   (Registrant)
Date:  November 5, 2001	By  /s/Robert E. Rude                                                      Robert E. Rude            Vice President and Controller            (Chief Accounting Officer)

	CENTRAL MAINE POWER COMPANY                   (Registrant)
Date:  November 5, 2001	By  /s/Curtis I. Call                                                            Curtis I. Call            Treasurer            (Chief Accounting Officer)

	NEW YORK STATE ELECTRIC & GAS CORPORATION                   (Registrant)
Date:  November 5, 2001	By  /s/Sherwood J. Rafferty                                              Sherwood J. Rafferty            Senior Vice President and            Chief Financial Officer            (Principal Financial Officer)

EXHIBIT INDEX

The following exhibits are delivered with this report:

Registrant	Exhibit No.	Description of Exhibit
Energy East Corporation	4-4	Subordinated Indenture between the Company and The Chase Manhattan Bank, as Trustee, dated as of July 24, 2001.
Energy East Corporation	4-5	First Supplemental Indenture between the Company and The Chase Manhattan Bank, as Trustee, dated as of July 24, 2001, related to the Subordinated Indenture between the Company and The Chase Manhattan Bank, as Trustee, dated as of July 24, 2001.
Energy East Corporation	(A) 10-31	First Amendment dated as of August 1, 2001, to Employment Agreement dated as May 19, 2000, for W. W. von Schack.
Energy East Corporation	(A) 10-32	First Amendment dated as of August 1, 2001, to Employment Agreement dated as May 19, 2000, for K. M. Jasinski.
Energy East Corporation	(A) 10-33	Supplemental Executive Retirement Plan.
Energy East Corporation	(A) 10-34	Energy East Management Corporation Supplemental Executive Retirement Plan.
New York State Electric & Gas   Corporation	(A) 10-31	Supplemental Executive Retirement Plan, amended and restated effective August 1, 2001.

_________________________________
(A) Management contract or compensatory plan or arrangement.

EX-4.4

Exhibit 4-4

ENERGY EAST CORPORATION

and

THE CHASE MANHATTAN BANK
Trustee

INDENTURE

Dated as of July 24, 2001

JUNIOR SUBORDINATED DEBT SECURITIES

TABLE OF CONTENTS

	ARTICLE I DEFINITIONS	1
1.1	Certain Terms Defined	1
	ARTICLE II ISSUE, DESCRIPTION, EXECUTION, REGISTRATION OF TRANSFER AND EXCHANGE OF SECURITIES	9
2.1	Amount, Series and Delivery of Securities	9
2.2	Form Of Securities And Trustee's Certificate	13
2.3	Denominations Of And Payment Of Interest On Securities	14
2.4	Execution Of Securities	15
2.5	Registration, Transfer And Exchange Of Securities	16
2.6	Temporary Securities	18
2.7	Mutilated, Destroyed, Lost Or Stolen Securities	18
2.8	Cancellation And Destruction Of Surrendered Securities	19
2.9	Authenticating Agents	20
2.10	Deferrals Of Interest Payment Dates	21
2.11	Right Of Set-Off	22
2.12	Shortening Or Extension Of Stated Maturity	22
2.13	Agreed Tax Treatment	22
2.14	CUSIP Numbers	23
	ARTICLE III REDEMPTION OF SECURITIES	23
3.1	Applicability Of Article	23
3.2	Mailing Of Notice Of Redemption	23
3.3	When Securities Called For Redemption Become Due And Payable	24
	ARTICLE IV PARTICULAR COVENANTS OF THE COMPANY	25
4.1	Payment Of Principal Of and Interest On Securities	25
4.2	Maintenance Of Offices Or Agencies For Registration Of Transfer, Exchange And Payment Of Securities	26
4.3	Appointment To Fill A Vacancy In The Office Of Trustee	26
4.4	Duties of Paying Agent	26
4.5	Further Assurances	27
4.6	Officers' Certificate As To Defaults; Notices Of Certain Defaults	27
4.7	Waiver Of Covenants	28
4.8	Additional Tax Sums	28
4.9	Additional Covenants	28
4.10	Calculation Of Original Issue Discount	29
	ARTICLE V SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	29
5.1	Company To Furnish Trustee Information As To The Names And Addresses Of Securityholders	29
5.2	Trustee To Preserve Information As To Names And Addresses Of Securityholders Received By It	30
5.3	Annual And Other Reports To Be Filed By Company With Trustee	30
5.4	Trustee To Transmit Annual Report To Securityholders	31
	ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	32
6.1	Events Of Default Defined	32
6.2	Covenant Of Company To Pay To Trustee Whole Amount Due On Securities On Default In Payment Of Interest Or Principal	35
6.3	Application of Moneys Collected By Trustee	37
6.4	Limitation On Suits By Holders Of Securities	37
6.5	On Default Trustee May Take Appropriate Action; Direct Action	38
6.6	Rights Of Holders Of Majority In Principal Amount Of Securities To Direct Trustee And To Waive Default	39
6.7	Trustee To Give Notice Of Defaults Known To It, But May Withhold In Certain Circumstances	39
6.8	Requirement Of An Undertaking To Pay Costs In Certain Suits Under The Indenture Or Against The Trustee	40
	ARTICLE VII CONCERNING THE TRUSTEE	40
7.1	Upon Event Of Default Occurring And Continuing, Trustee Shall Exercise Powers Vested In It, And Use Same Degree Of Care And Skill In Their Exercise, As A Prudent Man Would Use	40
7.2	Reliance On Documents, Opinions, Etc	41
7.3	Trustee Not Liable For Recitals In Indenture Or In Securities	43
7.4	May Hold Securities	43
7.5	Moneys Received By Trustee To Be Held In Trust Without Interest	43
7.6	Trustee Entitled To Compensation, Reimbursement and Indemnity	43
7.7	Right Of Trustee To Rely On Officers' Certificate Where No Other Evidence Specifically Prescribed	44
7.8	Disqualification; Conflicting Interests	44
7.9	Requirements For Eligibility Of Trustee	44
7.10	Resignation And Removal Of Trustee	45
7.11	Acceptance By Successor Trustee	46
7.12	Successor To Trustee By Merger, Consolidation Or Succession To Business	47
7.13	Limitations on Preferential Collection Of Claims By The Trustee	48
	ARTICLE VIII CONCERNING THE SECURITYHOLDERS	48
8.1	Evidence Of Action By Securityholders	48
8.2	Proof Of Execution Of Instruments And Of Holding Of Securities	48
8.3	Who May Be Deemed Owners Of Securities	49
8.4	Securities Owned By Company Or Controlled Or Controlling Persons Disregarded For Certain Purposes	49
8.5	Instruments Executed By Securityholders Bind Future Holders	50
	ARTICLE IX SECURITYHOLDERS' MEETINGS	50
9.1	Purposes For Which Meetings May Be Called	50
9.2	Manner Of Calling Meetings	50
9.3	Call Of Meeting By Company Or Securityholders	51
9.4	Who May Attend And Vote At Meetings	51
9.5	Regulations May Be Made By Trustee	51
9.6	Manner Of Voting At Meetings And Record To Be Kept	52
9.7	Exercise Of Rights Of Trustee, Securityholders and Holders Of Preferred Securities Not To Be Hindered Or Delayed	52
	ARTICLE X SUPPLEMENTAL INDENTURES	53
10.1	Purposes For Which Supplemental Indentures May Be Entered Into Without Consent Of Securityholders	53
10.2	Modification Of Indenture With Consent Of Holders Of A Majority In Principle Amount Of Securities	54
10.3	Effect Of Supplemental Indentures	56
10.4	Securities May Bear Notation Of Changes By Supplemental Indentures	56
10.5	Revocation And Effect Of Consents	56
10.6	Conformity With Trust Indenture Act	57
	ARTICLE XI CONSOLIDATION, MERGER, SALE OR CONVEYANCE	57
11.1	Company May Consolidate, Etc., On Certain Terms	57
11.2	Successor Corporation Substituted	57
11.3	Opinion Of Counsel To Trustee	58
	ARTICLE XII SATISFACTION AND DISCHARGE OF INDENTURE, UNCLAIMED MONEYS	58
12.1	Satisfaction And Discharge Of Indenture	58
12.2	Application By The Trustee Of Funds Deposited For Payment Of Securities	59
12.3	Repayment Of Moneys Held By Paying Agent	59
12.4	Repayment Of Moneys Held By Trustee	59
	ARTICLE XIII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS, DIRECTORS AND EMPLOYEES	59
13.1	Incorporators, Stockholders, Officers, Directors And Employees Of Company Exempt From Individual Liability	59
	ARTICLE XIV SUBORDINATION OF SECURITIES	60
14.1	Agreement To Subordinate	60
14.2	Obligation Of The Company Unconditional	62
14.3	Limitations On Duties To Holders Of Senior Indebtedness Of The Company	62
14.4	Notice To Trustee Of Facts Prohibiting Payment	62
14.5	Application By Trustee Of Moneys Deposited With It	63
14.6	Subrogation	63
14.7	Subordination Rights Not Impaired By Acts Or Omissions Of Company Or Holders Of Senior Indebtedness Of The Company	63
14.8	Authorization Of Trustee To Effectuate Subordination Of Securities	64
14.9	No Payment When Senior Indebtedness In Default	64
14.10	Right Of Trustee To Hold Senior Indebtedness Of The Company	64
14.11	Article Fourteen Not To Prevent Defaults	65
	ARTICLE XV MISCELLANEOUS PROVISIONS	65
15.1	Successors And Assigns Of Company Bound By Indenture	65
15.2	Acts Of Board, Committee Or Officer Of Successor Corporation Valid	65
15.3	Required Notices Or Demands May Be Served By Mail	65
15.4	Officers' Certificate And Opinion Of Counsel To Be Furnished Upon Applications Or Demands By The Company	65
15.5	Payments Due On Saturdays, Sundays, And Holidays	66
15.6	Provisions Required By Trust Indenture Act To Control	66
15.7	Indenture And Securities To Be Construed In Accordance With The Laws Of The State Of New York	67
15.8	Provisions Of The Indenture And Securities For The Sole Benefit Of The Parties And The Securityholders	67
15.9	Indenture May Be Executed In Counterparts	67
15.10	Securities In Foreign Currencies	67
15.11	Table Of Contents, Headings, Etc	67

THIS INDENTURE, dated as of the 24^Th day of July, 2001 between ENERGY EAST CORPORATION, a corporation duly organized and existing under the laws of the State of New York (hereinafter sometimes referred to as the "Company"), party of the first part, and THE CHASE MANHATTAN BANK, a New York banking corporation (hereinafter sometimes referred to as the "Trustee"), party of the second part.

WITNESSETH:

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance from time to time of its unsecured junior subordinated debt securities or other evidences of indebtedness (hereinafter referred to as the "Securities"), without limit as to principal amount, issuable in one or more series, the amount and terms of each such series to be determined as hereinafter provided, including, without limitation, Securities issued to evidence loans made to the Company of the proceeds from the issuance from time to time by one or more business trusts (each an "Energy East Trust," and collectively, the "Energy East Trusts") of preferred interests in such Trusts, having the rights provided for in such Trusts (the "Preferred Securities" which may also be referred to, without limitation, as the "Capital Securities") and common interests in such Trusts, having the rights provided for in such Trusts (the "Common Securities," and collectively with the Preferred Securities, the "Trust Securities"); to be authenticated by the Trustee; and, to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and

WHEREAS, all acts and things necessary to make the Securities when executed by the Company and authenticated and delivered by the Trustee as in this Indenture provided, the valid, binding and legal obligations of the Company, and to constitute these presents a valid indenture and agreement according to its terms, have been done and performed and the execution of this Indenture and the issue hereunder of the Securities have in all respects been duly authorized, and the Company, in the exercise of the legal rights and power vested in it, executes this Indenture and proposes to make, execute, issue and deliver the Securities;

NOW, THEREFORE, in order to declare the terms and conditions upon which the Securities are authenticated, issued and delivered, and in consideration of the premises and of the purchase and acceptance of the Securities by the holders thereof, the Company covenants and agrees with the Trustee, for the equal and proportionate benefit of the respective holders from time to time of the Securities or of series thereof, as follows:

ARTICLE I

DEFINITIONS

1.1 Certain Terms Defined. For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

(a) The terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

(b) All other terms used herein which are defined in the Trust Indenture Act (as defined herein), whether directly or by reference therein, have the meanings assigned to them therein (except as otherwise expressly provided);

(c) All accounting terms used herein and not expressly defined herein shall have the meanings assigned to them in accordance with generally accepted accounting principles in the United States of America, and, except as otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation; provided, that when two or more principles are so generally accepted, it shall mean that set of principles consistent with those in use by the Company; and

(d) The terms "herein," "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

The term "Additional Interest" means the interest, if any, that shall accrue on any interest on the Securities of any series the payment of which has not been made on the applicable interest payment date and which shall accrue at the rate per annum specified or determined as specified in such Security.

The term "Additional Tax Sums" has the meaning specified in Section 4.8.

The term "Administrative Trustee" means, in respect of any Energy East Trust, each Person identified as an "Administrative Trustee" in the related Trust Agreement, solely in such Person's capacity as Administrative Trustee of such Energy East Trust under such Trust Agreement and not in such Person's individual capacity, or any successor administrative trustee appointed as therein provided.

The term "Authenticating Agent" means any Authenticating Agent appointed by the Trustee pursuant to Section 2.9.

The term "Authorized Newspaper" means a newspaper in an official language of the place of publication, customarily published at least once a day for at least five days in each calendar week and of general circulation in each place in connection with which the term is used or in the financial community of each such place. Whenever successive publications are required to be made in an Authorized Newspaper, the successive publications may be made in the same or in a different newspaper meeting the foregoing requirements and in each case on any day of the week. If it is impossible or, in the opinion of the Trustee, impracticable to publish any notice in the manner herein provided, then such publication in lieu thereof as shall be made with the approval of the Trustee shall constitute a sufficient publication of such notice.

The term "Board of Directors," when used with reference to the Company, means the Board of Directors of the Company or the executive committee or any other committee of or created by the Board of Directors of the Company duly authorized to act hereunder.

The term "Business Day" means any day which is not a Saturday or Sunday or a day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to close or a day on which the principal corporate trust office of the Trustee or the applicable Property Trustee is closed for business.

The term "Capital Securities" has the meaning specified in the recitals to this Indenture.

The term "Capital Stock" means shares of capital stock of any class of any corporation whether now or hereafter authorized regardless of whether such capital stock shall be limited to a fixed sum or percentage in respect of the rights of the holders thereof to participate in dividends and in the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up.

The term "Commission" means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties on such date.

The term "Common Securities" has the meaning specified in the recitals to this Indenture.

The term "Common Stock" means the common stock, par value $0.01 per share, of the Company.

The term "Company" means Energy East Corporation, a corporation duly organized and existing under the laws of the State of New York and, subject to the provisions of Article XI, shall also include its successors and assigns.

The term "Depositary" means, with respect to the Securities of any series issuable or issued in whole or in part in the form of one or more global Securities, the person designated as Depositary by the Company pursuant to Section 2.1 until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter the term "Depositary" shall mean or include each person who is then a Depositary hereunder and if at any time there is more than one such person, the term "Depositary" as used with respect to the Securities of any series shall mean the Depositary with respect to the Securities of such series.

The term "Direct Action" has the meaning specified in Section 6.5.

The term "Distributions," with respect to the Trust Securities issued by an Energy East Trust, means amounts payable in respect of such Trust Securities as provided in the related Trust Agreement and referred to therein as "Distributions."

The term "Energy East Guarantee" means the guarantee by the Company of distributions on the Preferred Securities of an Energy East Trust to the extent provided in the Guarantee (as defined in the related Trust Agreement).

The terms "Energy East Trust" and "Energy East Trusts" each have the meaning specified in the recitals to this Indenture.

The term "Event of Default" with respect to Securities of any series shall mean any event specified as such in Section 6.1 and any other event as may be established with respect to the Securities of such series as contemplated by Section 2.1.

The term "Exchange Act" has the meaning specified in Section 2.2.

The term "Extension Period" has the meaning specified in Section 2.10.

The term "Indenture" means this instrument as originally executed, or, if amended or supplemented as herein provided, then as so amended or supplemented, and shall include the form and terms of particular series of Securities established as contemplated by Sections 2.1 and 2.2.

The term "Maturity" when used with respect to any Security means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

The term "Notice of Default" has the meaning specified in Section 6.1.

The term "Officers' Certificate" shall mean a certificate signed by the Chairman, the Chief Executive Officer, the President, or any Vice President of the Company (whether or not designated by a number or a word or words added before or after the title Vice President) and by the Treasurer, the Controller or the Corporate Secretary of the Company and delivered to the Trustee. Each such certificate shall include the statements provided for in Section 15.4, if and to the extent required by the provisions thereof and will comply with Section 314 of the Trust Indenture Act.

The term "Opinion of Counsel" shall mean a written opinion of counsel, who shall be reasonably satisfactory to the Trustee, and who may be an employee of, or counsel to, the Company. Each such opinion shall include the statements provided for in Section 15.4, if and to the extent required by the provisions thereof and will comply with Section 314 of the Trust Indenture Act.

The term "Original Issue Date" means the first date of issuance of each Security.

The term "Original Issue Discount Security" shall mean any Security which provides for an amount less than the principal amount thereof to be due and payable upon declaration pursuant to Section 6.1.

The term "outstanding," when used with reference to Securities and subject to the provisions of Section 8.4, means as of any particular time, all Securities authenticated and delivered by the Trustee under this Indenture, except

(a)  Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

(b)  Securities, or portions thereof, for the payment or redemption of which moneys in the necessary amount shall have been deposited in trust with the Trustee or with any Paying Agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent), provided that such Securities shall have reached their Stated Maturity or, if such Securities are to be redeemed prior to the Stated Maturity thereof, notice of such redemption shall have been given as in Article III provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and

(c)  Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered or which have been paid pursuant to the terms of Section 2.7 unless proof satisfactory to the Trustee is presented that any such Securities are held by a bona fide purchaser in whose hands any of such Securities is a valid, binding and legal obligation of the Company.

In determining whether the holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.1.

The term "Paying Agent" means the Trustee or any Person or Persons authorized by the Company to pay the principal or interest on any Securities on behalf of the Company.

The term "Person" or "person" means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association or government or any agency or political subdivision thereof, or any other entity of whatever nature.

The term "Preferred Securities" has the meaning specified in the recitals to this Indenture.

The term "principal," whenever used with reference to the Securities or any Security or any portion thereof, shall be deemed to include "and premium, if any."

The term "Property Trustee" means, in respect of any Energy East Trust, the commercial bank or trust company identified as the "Property Trustee" in the related Trust Agreement, solely in its capacity as Property Trustee of such Energy East Trust under such Trust Agreement and not in its individual capacity, or its successor in interest in such capacity, or any successor property trustee appointed as therein provided.

The term "ranking junior to the Securities" when used with respect to any obligation of the Company means any other obligation of the Company which (a) ranks junior to and not equally with or prior to the Securities (or any other obligations of the Company ranking on a parity with the Securities) in right of payment upon the happening of any event of the kind specified in the first sentence of the second paragraph of Section 14.1, or (b) is specifically designated as ranking junior to the Securities by express provision in the instrument creating or evidencing such obligation.

The securing of any obligations of the Company, otherwise ranking junior to the Securities, shall be deemed to prevent such obligations from constituting obligations ranking junior to the Securities.

The term "ranking on a parity with the Securities" when used with respect to any obligation of the Company means any obligation of the Company which (a) ranks equally with and not prior to the Securities in right of payment upon the happening of any event of the kind specified in the first sentence of the second paragraph of Section 14.1, (b) any Energy East Guarantee of Preferred Securities of any Energy East Trust or other entity affiliated with the Company that is a financing entity of the Company, or (c) is specifically designated as ranking on a parity with the Securities by express provision in the instrument creating or evidencing such obligation.

The securing of any obligations of the Company, otherwise ranking on a parity with the Securities, shall not be deemed to prevent such obligations from constituting obligations ranking on a parity with the Securities.

The term "record date" has the meaning specified in Section 2.3.

The terms "redemption," "redeem" and "redeemable" when used with respect to any Security, shall include, without limitation, any prepayment or repayment provisions applicable to such Security.

The term "Register" has the meaning specified in Section 2.5.

The term "Resolution of the Company" means a resolution of the Company, in the form of a resolution of the Board of Directors, or in the form of a resolution of a duly constituted committee of the Board of Directors, authorizing, ratifying, setting forth or otherwise validating agreements, execution and delivery of documents, the issuance, form and terms of Securities, or any other actions or proceedings pursuant or with respect to this Indenture.

The term "Responsible Officer," when used with respect to the Trustee, means the chairman and vice chairman of the board of directors, the president, the chairman and vice chairman of the executive committee of the board of directors, every vice president or officer senior thereto, every assistant vice president, the secretary, every assistant secretary, the treasurer, every assistant treasurer, every corporate trust officer, every assistant corporate trust officer, and every other officer and assistant officer of the Trustee customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his knowledge of, and familiarity with, a particular subject.

The term "Rights Plan" means a plan of the Company providing for the issuance by the Company to all holders of its Common Stock of rights entitling the holders thereof to subscribe for or purchase shares of Common Stock or any class or series of preferred stock, which rights (i) are deemed to be transferred with such shares of Common Stock, (ii) are not exercisable and (iii) are also issued in respect of future issuances of Common Stock, in each case until the occurrence of a specified event or events.

The term "Security" or "Securities" means any security or securities of the Company, as the case may be, without regard to series, authenticated and delivered under this Indenture.

The term "Securities Act" means the Securities Act of 1933, as amended.

The terms "Securityholder," "holder of Securities," "registered holder" or other similar term, mean any person who shall at the time be the registered holder of any Security or Securities on the Register kept for that purpose in accordance with the provisions of this Indenture.

The term "Senior Indebtedness of the Company" means (i) any indebtedness of the Company for borrowed or purchased money, whether or not evidenced by bonds, debentures, notes or other written instruments, (ii) obligations of the Company for reimbursement under letters of credit, banker's acceptances, security purchase facilities or similar facilities issued for the account of the Company, (iii) any indebtedness or other obligations of the Company with respect to commodity contracts (including but not limited to contracts in the spot, forward and futures markets, options, and contracts for differences), interest rate commodity and currency swap agreements, cap, floor and collar agreements, currency spot and forward contracts, and other similar agreements or arrangements designed to protect against fluctuations in commodity prices, currency exchange or interest rates, and (iv) any guarantees, endorsements (other than by endorsement of negotiable instruments for collection in the ordinary course of business) or other similar contingent obligations in respect of obligations of others of a type described in (i), (ii) or (iii) above, whether or not such obligation is classified as a liability on a balance sheet prepared in accordance with generally accepted accounting principles, in each case listed in (i), (ii), (iii) and (iv) above whether outstanding on the date of execution of this Indenture or thereafter incurred, other than obligations ranking on a parity with the Securities or ranking junior to the Securities; provided, however, that "Senior Indebtedness of the Company" does not include (a) obligations to trade creditors or (b) any indebtedness of the Company to any of its Subsidiaries.

The term "Stated Maturity" when used with respect to any Security or any installment of principal thereof or interest thereon means the date specified pursuant to the terms of such Security as the date on which the principal of such Security or such installment of interest is due and payable, in the case of such principal, as such date may be shortened or extended as provided pursuant to the terms of such Security and this Indenture.

The term "Subsidiary" means any corporation (or the equivalent type of entity in other jurisdictions) more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition, "voting stock" means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.

The term "Tax Event" means the receipt by the Company and an Energy East Trust of a Tax Event Opinion (as defined in the relevant Trust Agreement) to the effect that, as a result of any amendment to, or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative written decision, pronouncement or action, or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement, decision or action is announced on or after the date of issuance of the Preferred Securities of such Energy East Trust, there is more than an insubstantial risk that (i) the Energy East Trust is, or will be within 90 days after the date of such Tax Event Opinion, subject to United States federal income tax with respect to income received or accrued on the corresponding series of Securities issued by the Company to such Energy East Trust, (ii) interest payable to the Energy East Trust by the Company on such corresponding series of Securities is not, or within 90 days of the date of such Tax Event Opinion, will not be, deductible by the Company, in whole or in part, for United States federal income tax purposes, or (iii) the Energy East Trust is, or will be within 90 days after the date of such Tax Event Opinion, subject to a material amount of other taxes, duties or other governmental charges.

The term "Trust Agreement" means the Trust Agreement, as amended from time to time, governing any Energy East Trust, whether now existing or created in the future, which purchased the Securities of any series.

The term "Trustee" means the Person named as the "Trustee" in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, "Trustee" as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. The term "principal office" of the Trustee shall mean the principal corporate trust office of the Trustee in The City of New York, State of New York, at which the corporate trust business of the Trustee shall, at any particular time, be principally administered. The present address of the office at which the corporate trust business of the Trustee is administered is 450 West 33rd Street, New York, New York 10001 (Attention: Institutional Trust Services).

Except as herein otherwise expressly provided or unless the context requires otherwise, the term "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as amended by the Trust Indenture Reform Act of 1990, as in force at the date as of which this Indenture was originally executed; provided, however, that, in the event that the Trust Indenture Act is amended after such date, then "Trust Indenture Act" means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

The term "Trust Securities" has the meaning specified in the recitals to this Indenture.

ARTICLE II

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION OF TRANSFER
AND EXCHANGE OF SECURITIES

2.1 Amount, Series And Delivery Of Securities. The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.

The Securities may be issued in one or more series. The terms of each series (which terms shall not be inconsistent with the provisions of this Indenture), shall either be established in or pursuant to a Resolution of the Company and set forth in an Officers' Certificate, or set forth in one or more indentures supplemental hereto, prior to the issuance of Securities of any series and shall specify:

(a) The designation of the Securities of such series (which shall distinguish the Securities of the series from all other Securities and which shall include the word "subordinated" or a word of like meaning);

(b) Any limit upon the aggregate principal amount of the Securities of such series which may be executed, authenticated and delivered under this Indenture; provided, however, that nothing contained in this Section or elsewhere in this Indenture or in such Securities or in a Resolution of the Company and related Officers' Certificate or supplemental indenture is intended to or shall limit execution by the Company or authentication and delivery by the Trustee of Securities under the circumstances contemplated by Sections 2.5, 2.6, 2.7, 3.2, 3.3 and 10.4;

(c) The date or dates (if any) on which the principal of the Securities of such series is payable;

(d) The rate or rates at which the Securities of such series shall bear interest, if any, the rate or rates and extent to which Additional Interest or other interest, if any, shall be payable, the date or dates from which such interest shall accrue, the dates on which such interest shall be payable, the record date for the interest payable on any interest payment date and the right of the Company to defer or extend an interest payment date;

(e) The place or places where Securities of such series may be presented for payment and for the other purposes provided in Section 4.2;

(f) Any price or prices at which, any period or periods within which, and any terms and conditions upon which, Securities of such series may be redeemed or prepaid, in whole or in part, at the option of the Company;

(g) If other than denominations of $1,000 and any whole multiple thereof, the denominations in which Securities of such series shall be issuable;

(h) If other than the principal amount thereof, the portion of the principal amount of Securities of such series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.1;

(i) If other than such coin or currency of the United States of America as at the time of payment is legal tender for payment of public or private debts, the coin or currency (which may be a composite currency) in which payment of the principal of and interest, if any, on the Securities of such series shall be payable;

(j) If the principal of or interest, if any, on the Securities of such series are to be payable, at the election of the Company or a holder thereof, in a coin or currency (including composite currency) other than that in which the Securities of such series are stated to be payable, the period or periods within which, and the terms and conditions upon which, such election may be made;

(k) If the amounts of payments of principal of or interest, if any, on the Securities of such series may be determined with reference to an index based on a coin or currency (including composite currency) other than that in which the Securities of such series are stated to be payable, the manner in which such amounts shall be determined;

(l) If the Securities of such series are payable at Maturity or upon earlier redemption in securities of the Company or other property, the terms and conditions upon which such payment shall be made;

(m) The person or persons who shall be registrar for the Securities of such series, and the place or places where the Register of Securities of the series shall be kept;

(n) Any Events of Default with respect to the Securities of such series, if not set forth herein;

(o) Any addition to or change in the covenants set forth in Article IV which applies to Securities of such series;

(p) Whether any Securities of such series are to be issuable in global form with or without coupons, and, if so, the Depositary for such global Securities and whether beneficial owners of interests in any such global Security may exchange such interests for definitive Securities of such series and of like tenor of any authorized form and denomination and the circumstances under which, and the place or places where, any such exchanges may occur, if other than in the manner provided in Section 2.5;

(q) The form of the related Trust Agreement and Energy East Guarantee, if applicable;

(r) Whether any Securities of such series are subject to any securities law or other restrictions on transfer; and

(s) Any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture);

or in any case, the method for determining such terms, the persons authorized to determine such terms and the limits, if any, within which any such determination of such terms is to be made.

The Securities of all series shall be subordinate to Senior Indebtedness of the Company as provided in Article XIV. The applicable Resolution of the Company and Officers' Certificate or supplemental indenture may provide that Securities of any particular series may be issued at various times, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or different methods by which interest may be determined, with different dates from which such interest shall accrue, with different dates on which such interest may be payable or with any different terms other than Events of Default but all such Securities of a particular series shall for all purposes under this Indenture including, but not limited to, voting and Events of Default, be treated as Securities of a single series.

If any of the terms of any series of Securities are established by action taken pursuant to a Resolution of the Company, a copy of an appropriate record of such action shall be certified by the Corporate Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers' Certificate or supplemental indenture setting forth the terms of the series.

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication by it, and the Trustee shall thereupon authenticate and deliver such Securities to or upon the written order of the Company, signed by its Chairman, or its Chief Executive Officer, or its President, or any Vice President of the Company (whether or not designated by a number or a word or words added before or after the title Vice President), and by its Treasurer or its Controller or its Corporate Secretary, without any further corporate action by the Company. If the form or terms of the Securities of the series have been established in or pursuant to a Resolution of the Company and set forth in an Officers' Certificate, or set forth in one or more supplemental indentures hereto, as permitted by this Section and Section 2.2, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon:

(a)  an Opinion of Counsel to the effect that:

(i) the form or forms and terms, or if all Securities of such series are not to be issued at one time, the manner of determining the terms of such Securities, have been established in conformity with the provisions of this Indenture;

(ii) all conditions precedent provided for in this Indenture to the authentication and delivery of such Securities have been complied with and that such Securities when completed by appropriate insertions, executed under the Company's corporate seal and attested by duly authorized officers of the Company, delivered by duly authorized officers of the Company to the Trustee for authentication pursuant to this Indenture, and authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as enforcement thereof may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, arrangement, fraudulent conveyance, fraudulent transfer or other similar laws relating to or affecting creditors' rights generally, and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law); and

(iii) if the Securities of such series have been registered under the Securities Act, that this Indenture has been qualified under the Trust Indenture Act;

and

(b)  an Officers' Certificate stating that, to the best knowledge of the Persons executing such certificate, no event which is, or after notice or lapse of time would become, an Event of Default with respect to any of the Securities shall have occurred and be continuing.

The Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee's own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

If all the Securities of any series are not to be issued at one time, it shall not be necessary to deliver either an Opinion of Counsel or an Officers' Certificate at the time of issuance of each Security, provided that such Opinion of Counsel and Officers' Certificate, with appropriate modifications, are instead delivered at or prior to the time of issuance of the first Security of such series.

Each Security shall be dated the date of its authentication.

2.2 Form Of Securities And Trustee's Certificate. The Securities of each series shall be substantially of the tenor and terms as shall be authorized in or pursuant to a Resolution of the Company and set forth in an Officers' Certificate, or set forth in an indenture or indentures supplemental hereto in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification or designation and such legends or endorsements thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or automated quotation system on which the Securities may be listed, or to conform to usage. If the form of Securities of any series is authorized by action taken pursuant to a Resolution of the Company, a copy of an appropriate record of such action shall be certified by the Corporate Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers' Certificate contemplated by Section 2.1 setting forth the terms of the series.

The Securities may be printed, lithographed or fully or partly engraved.

The Trustee's certificate of authentication shall be in substantially the following form:

"This is one of the Securities, of the series designated therein, referred to in the within-mentioned Indenture.

THE CHASE MANHATTAN BANK, as
Trustee

By: _____________________________
Authorized Officer"

If Securities of a series are issuable in global form, as specified pursuant to Section 2.1, then, notwithstanding clause (g) of Section 2.1 and the provisions of Section 2.3, such Security shall represent such amount of the outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of outstanding Securities of such series from time to time endorsed thereon and that the aggregate amount of outstanding Securities of such series represented thereby may from time to time be increased or reduced to reflect exchanges or transfers (in any event, not to exceed the aggregate principal amount authorized from time to time pursuant to Section 2.1). Any endorsement of a Security in global form to reflect the amount, or any increase or decrease in the amount, of outstanding Securities represented thereby shall be made by the Trustee in such manner and upon instructions given by such person or persons as shall be specified in such Security or by the Company. Subject to the provisions of Section 2.4 and, if applicable, Section 2.6, the Trustee shall deliver and redeliver any Security in global form in the manner and upon written instructions given by the person or persons specified in such Security or by the Company. Any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form after the original issuance of the Securities of such series shall be in writing, and shall not be objected to in writing by the Depositary, but need not comply with Section 15.4 and need not be accompanied by an Opinion of Counsel.

Unless otherwise specified pursuant to Section 2.1, payment of principal of and any premium and any interest on any Security in global form shall be made to the person or persons specified therein.

The owners of beneficial interests in any global Security shall have no rights under this Indenture with respect to any global Security held on their behalf by a Depositary, and such Depositary may be treated by the Company, the Trustee, and any agent of the Company or the Trustee as the sole holder and owner of such global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by a Depositary, or impair, as between a Depositary and its participants in any global Security, the operation of customary practices governing the exercise of the rights of a holder of a Security of any series, including, without limitation, the granting of proxies or other authorization of participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action that a holder is entitled to give or take under this Indenture.

Neither the Company, the Trustee nor any Authenticating Agent will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

Each Depositary designated pursuant to Section 2.1 for a global Security must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and any other applicable statute or regulation.

2.3 Denominations Of And Payment Of Interest On Securities. The Securities of each series shall be issuable as fully registered Securities without coupons in such denominations as shall be specified as contemplated by Section 2.1 (except as provided in Section 2.2 and Section 2.6). In the absence of any such provisions with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and integral multiples of $1,000 in excess thereof.

If the Securities of any series shall bear interest, each Security of such series shall bear interest from the applicable date at the rate or rates per annum, and such interest shall be payable on the dates, specified on, or determined in the manner provided in, the Security. The person in whose name any Security is registered at the close of business on any record date (as defined below) for the Security with respect to any interest payment date for such Security shall be entitled to receive the interest payable thereon on such interest payment date notwithstanding the cancellation of such Security upon any registration of transfer or exchange thereof subsequent to such record date and prior to such interest payment date, unless such Security shall have been called for redemption on a date fixed for redemption subsequent to such record date and prior to such interest payment date or unless the Company shall default in the payment of interest due on such interest payment date on such Security, in which case such defaulted interest shall be paid to the person in whose name such Security (or any Security or Securities issued upon registration of transfer or exchange thereof) is registered at the close of business on the record date for the payment of such defaulted interest, or except as otherwise specified as contemplated by Section 2.1. The term "record date" as used in this Section with respect to any regular interest payment date for any Security shall mean such day or days as shall be specified as contemplated by Section 2.1; provided, however, that in the absence of any such provisions with respect to any Security, such term shall mean: (1) if such interest payment date is the first day of a calendar month, the fifteenth day of the calendar month next preceding such interest payment date; or (2) if such interest payment date is the fifteenth day of a calendar month, the first day of such calendar month; provided, further, that (except as otherwise specified as contemplated by Section 2.1) if the day which would be the record date as provided herein is not a Business Day, then it shall mean the Business Day next preceding such day. Such term, as used in this Section, with respect to the payment of any defaulted interest on any Security shall mean (except as otherwise specified as contemplated by Section 2.1) the fifth day next preceding the date fixed by the Company for the payment of defaulted interest, established by notice given by first class mail by or on behalf of the Company to the holder of such Security not less than 10 days preceding such record date, or, if such fifth day is not a Business Day, the Business Day next preceding such fifth day.

2.4 Execution Of Securities. The Securities shall be signed on behalf of the Company, manually or in facsimile, by its Chairman, or its Chief Executive Officer, or its President, or any Vice President of the Company (whether or not designated by a number or a word or words added before or after the title Vice President), under its corporate seal and attested by its Treasurer or its Controller or its Corporate Secretary which may be affixed thereto or printed, engraved or otherwise reproduced thereon, by facsimile or otherwise. Only such Securities as shall bear thereon a certificate of authentication substantially in the form recited herein, executed by or on behalf of the Trustee manually by an authorized officer, shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate of authentication by the Trustee upon any Security executed by the Company shall be conclusive evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. Typographical or other errors or defects in the seal or facsimile signature on any Security or in the text thereof shall not affect the validity or enforceability of such Security if it has been duly authenticated and delivered by the Trustee.

In case any officer of the Company who shall have signed any of the Securities, manually or in facsimile, shall cease to be such officer before the Securities so signed shall have been authenticated and delivered by the Trustee, or disposed of by the Company, such Securities nevertheless may be authenticated and delivered or disposed of as though the person who signed such Securities had not ceased to be such officer of the Company; and any Security may be signed on behalf of the Company, manually or in facsimile, by such persons as, at the actual date of the execution of such Security, shall be the proper officers of the Company, although at the date of the execution of this Indenture any such person was not such officer.

2.5 Registration, Transfer And Exchange Of Securities. Securities of any series (other than a global Security, except as set forth below) may be exchanged for a like aggregate principal amount of Securities of the same series of the same tenor and terms of other authorized denominations. Securities to be exchanged shall be surrendered at the offices or agencies to be maintained by the Company in accordance with the provisions of Section 4.2 and the Company shall execute and the Trustee shall authenticate and deliver, or cause to be authenticated and delivered, in exchange therefor the Security or Securities which the Securityholder making the exchange shall be entitled to receive.

The Company shall keep, at one of the offices or agencies to be maintained by the Company in accordance with the provisions of Section 4.2 with respect to the Securities of each series, a Register (the "Register") in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities of such series and the transfer of Securities of such series as in this Article provided. Such Register shall be in written form or in any other form capable of being converted into written form within a reasonable time. At all reasonable times the Register shall be open for inspection by the Trustee and any registrar of the Securities of such series other than the Trustee. Upon due presentment for registration of transfer of any Security of any series at the offices or agencies of the Company to be maintained by the Company in accordance with Section 4.2 with respect to the Securities of such series, the Company shall execute and register and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Security or Securities of the same series of like tenor and terms for a like aggregate principal amount of authorized denominations.

Every Security issued upon registration of transfer or exchange of Securities pursuant to this Section shall be the valid obligation of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Security or Securities surrendered upon registration of such transfer or exchange.

All Securities of any series presented or surrendered for exchange, registration of transfer, redemption or payment shall, if so required by the Company or any registrar of the Securities of such series, be accompanied by a written instrument or instruments of transfer, in form satisfactory to the Company and such registrar, duly executed by the registered holder or by his attorney duly authorized in writing.

No service charge shall be made for any exchange or registration of transfer of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto.

Neither the Company nor the Trustee shall be required to exchange or register the transfer of (a) any Securities of any series during a period beginning at the opening of business fifteen days before the day of the mailing of a notice of redemption of outstanding Securities of such series and ending at the close of business on the relevant redemption date, or (b) any Securities or portions thereof called or selected for redemption, except, in the case of Securities called for redemption in part, the portion thereof not so called for redemption.

Notwithstanding any other provision of this Section, unless and until it is exchanged in whole or in part for Securities in definitive form, a global Security representing all or a portion of the Securities of a series may not be transferred, except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary.

Notwithstanding the foregoing, except as otherwise specified pursuant to Section 2.1, any global Security shall be exchangeable pursuant to this Section only as provided in this paragraph. If at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series, or if at any time the Depositary for the Securities of such series shall cease to be a "clearing agency" registered under the Exchange Act, the Company shall appoint a successor Depositary with respect to the Securities of such series. If (a) a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility (thereby automatically making the Company's election pursuant to Section 2.1 no longer effective with respect to the Securities of such series), (b) the beneficial owners of interests in a global Security are entitled to exchange such interests for definitive Securities of such series and of the same tenor and terms, as specified pursuant to Section 2.1, (c) there shall have occurred and be continuing an Event of Default with respect to the Securities of such series, or (d) the Company in its sole discretion determines that the Securities of any series issued in the form of one or more global Securities shall no longer be represented by such global Security or Securities, then without unnecessary delay, but, if appropriate, in any event not later than the earliest date on which such interest may be so exchanged, the Company shall deliver to the Trustee definitive Securities in aggregate principal amount equal to the principal amount of such global Security, executed by the Company and authenticated by the Trustee. On or after the earliest date on which such interests are or may be so exchanged, such global Security shall be surrendered by the Depositary to the Trustee, as the Company's agent for such purpose, to be exchanged, in whole or from time to time in part, for definitive Securities upon payment by the beneficial owners of such interest, at the option of the Company, of a service charge for such exchange and of a proportionate share of the cost of printing such definitive Securities, and the Trustee shall authenticate and deliver, (a) to each person specified by the Depositary in exchange for each portion of such global Security, an equal aggregate principal amount of definitive Securities of the same series of authorized denominations and of the same tenor and terms as the portion of such global Security to be exchanged, and (b) to such Depositary a global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered global security and the aggregate principal amount of definitive Securities delivered to holders thereof; provided, however, that no such exchanges may occur during a period beginning at the opening of business 15 days before any selection of Securities of that series to be redeemed and ending on the relevant redemption date. If a Security is issued in exchange for any portion of a global Security after the close of business at the office or agency where such exchange occurs on (i) any record date and before the opening of business at such office or agency on the relevant interest payment date, or (ii) any record date for the payment of defaulted interest and before the opening of business at such office or agency on the related proposed date for payment of defaulted interest, then interest or defaulted interest, as the case may be, will not be payable on such interest payment date or proposed date for payment of defaulted interest, as the case may be, in respect of such Security, but will be payable on such interest payment date or proposed date for payment of defaulted interest, as the case may be, only to the person to whom interest in respect of such portion of such global Security is payable in accordance with the provisions of this Indenture and such global Security.

2.6 Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute and the Trustee shall, upon the written order of the Company, authenticate and deliver temporary Securities of such series (printed or lithographed) of any denomination and substantially in the form of the definitive Securities of such series, but with or without a recital of specific redemption prices and with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Temporary Securities may contain such reference to any provisions of this Indenture as may be appropriate. Every such temporary Security shall be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the definitive Securities. Without unreasonable delay the Company will execute and deliver to the Trustee definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor, at the offices or agencies to be maintained by the Company as provided in Section 4.2 with respect to the Securities of such series, and the Trustee shall, upon the written order of the Company, authenticate and deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities of such series. Until so exchanged, the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

2.7 Mutilated, Destroyed, Lost Or Stolen Securities. In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company, in the case of any mutilated Security shall, and in the case of any destroyed, lost or stolen Security in its discretion may, execute, and upon its request the Trustee shall authenticate and deliver, or cause to be authenticated and delivered, a new Security of the same series of like tenor and terms in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost or stolen. In case any such Security shall have matured or shall be about to mature, instead of issuing a substituted Security, the Company may pay or authorize payment of the same (without surrender thereof, except in the case of a mutilated Security). In every case the applicant for a substituted Security or for such payment shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and to the Trustee evidence to their satisfaction of the destruction, loss or theft of such Security and of the ownership thereof. The Trustee may authenticate any such substituted Security and deliver the same, or the Trustee or any Paying Agent of the Company may make any such payment, upon the written request or authorization of any officer of the Company. Upon the issue of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses connected therewith (including the fees and expenses of the Trustee).

To the extent permitted by mandatory provisions of law, every substituted Security issued pursuant to the provisions of this Section in substitution for any destroyed, lost or stolen Security shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be found at any time, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder.

To the full extent legally enforceable, all Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities and shall preclude any and all other rights or remedies notwithstanding any law or statute now existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

2.8 Cancellation And Destruction Of Surrendered Securities. All Securities surrendered for the purpose of payment, redemption, exchange, substitution or registration of transfer, shall, if surrendered to the Company or any agent of the Company or of the Trustee, be delivered to the Trustee, and the same, together with Securities surrendered to the Trustee for cancellation, shall be canceled by it, and no Securities shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of canceled Securities in accordance with its customary procedures and deliver a certificate of disposition thereof to the Company unless by an Officers' Certificate, the Company shall direct that canceled Securities be returned to it. If the Company shall purchase or otherwise acquire any of the Securities, however, such purchase or acquisition shall not operate as a payment, redemption or satisfaction of the indebtedness represented by such Securities unless and until the Company, at its option, shall deliver or surrender the same to the Trustee for cancellation.

2.9 Authenticating Agents. The Trustee may from time to time appoint one or more Authenticating Agents with respect to one or more series of Securities, which shall be authorized to act on behalf of the Trustee and subject to its direction in authenticating and delivering Securities of such series pursuant hereto in connection with exchanges, registrations of transfer or redemptions, as fully to all intents and purposes as though any such Authenticating Agent had been expressly authorized to authenticate and deliver Securities of such series, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as though authenticated by the Trustee. Wherever reference is made in this Indenture to the authentication or delivery of Securities by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication or delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall at all times be a corporation (including a banking association) organized and doing business under the laws of the United States or any State or territory thereof or of the District of Columbia, having a combined capital and surplus of at least fifty million dollars ($50,000,000) authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal, state, territorial, or District of Columbia authorities. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect herein specified in this Section.

Any corporation succeeding to the corporate agency business of an Authenticating Agent shall continue to be an Authenticating Agent, if such successor corporation is otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent or such successor corporation.

Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent herein. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section.

Any Authenticating Agent by the acceptance of its appointment shall be deemed to have agreed with the Trustee that: it will perform and carry out the duties of an Authenticating Agent as herein set forth, including among other things the duties to authenticate and deliver Securities of any series for which it has been appointed an Authenticating Agent when presented to it in connection with exchanges, registrations of transfer or any redemptions thereof; it will furnish from time to time as requested by the Trustee appropriate records of all transactions carried out by it as Authenticating Agent and will furnish the Trustee such other information and reports as the Trustee may reasonably require; it is eligible for appointment as Authenticating Agent under this Section and will notify the Trustee promptly if it shall cease to be so qualified; and it will indemnify the Trustee against any loss, liability or expense incurred by the Trustee and will defend any claim asserted against the Trustee by reason of any acts or failures to act of the Authenticating Agent but it shall have no liability for any action taken by it at the specific written direction of the Trustee.

2.10 Deferrals Of Interest Payment Dates. If specified as contemplated by Section 2.1 or Section 2.2 with respect to the Securities of a particular series, so long as no Event of Default has occurred and is continuing, the Company shall have the right, at any time during the term of such series, from time to time to defer the payment of interest on such Securities for such period or periods as may be specified as contemplated by Section 2.1 (each, an "Extension Period") during which Extension Periods the Company shall have the right to make partial payments of interest on any interest payment date. No Extension Period shall end on a date other than an interest payment date or extend beyond the Stated Maturity. At the end of any such Extension Period the Company shall pay all interest then accrued and unpaid on the Securities (together with Additional Interest or other interest thereon, if any, at the rate specified for the Securities of such series to the extent permitted by applicable law); provided, however, that no Extension Period shall extend beyond the Stated Maturity of the principal of the Securities of such series; provided, further, that during any such Extension Period, the Company shall not, and shall not permit any Subsidiary of the Company to, (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the Company's Capital Stock (which includes Common Stock and preferred stock), or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company that rank pari passu with or junior in interest to the Securities of such series or make any guarantee payments with respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company that by their terms rank pari passu with or junior in interest to the Securities of such series (other than (a) dividends or distributions in Common Stock; (b) any declaration of a dividend in connection with the implementation of a Rights Plan, or the issuance of Capital Stock of the Company under any Rights Plan, or the redemption or repurchase of any rights distributed pursuant to a Rights Plan; (c) payments under any Energy East Guarantee; and (d) purchases of Common Stock related to the issuance of Common Stock or rights under the Company's dividend reinvestment plan or under any of the Company's benefit plans for its directors, officers, employees, consultants or advisors). Prior to the termination of any such Extension Period, the Company may further extend the interest payment period, provided that no Extension Period shall exceed the period or periods specified in such Securities or extend beyond the Stated Maturity of the principal of such Securities. Upon termination of any Extension Period and upon the payment of all accrued and unpaid interest and any Additional Tax Sums and Additional Interest then due on any interest payment date, the Company may elect to begin a new Extension Period, subject to the above requirements. No interest shall be due and payable during an Extension Period, except at the end thereof. The Company shall give the holders of the Securities of such series and the Trustee notice of its election to begin or extend any such Extension Period at least five Business Days prior to the next succeeding interest payment date on which interest on Securities of such series would be payable but for such deferral or, with respect to the Securities of a series issued to an Energy East Trust so long as such Securities are held by such Energy East Trust prior to the earlier of (i) the next succeeding date on which Distributions on the Preferred Securities of such Energy East Trust would be payable but for such deferral, or (ii) the date the Property Trustee of such Energy East Trust is required to give notice to any securities exchange or other applicable self-regulatory organization or to holders of such Preferred Securities of the record date or the date such Distributions are payable, but in any event not less than five Business Days prior to such record date.

The Trustee shall promptly give notice of the Company's election to begin any such Extension Period to the holders of the outstanding Securities of such series.

2.11 Right Of Set-Off. With respect to the Securities of a series issued to an Energy East Trust, notwithstanding anything to the contrary in this Indenture (but subject to the last paragraph of Section 6.5), the Company shall have the right to set off any payment it is otherwise required to make thereunder in respect of any such Security to the extent the Company has theretofore made, or is concurrently on the date of such payment making, such payment under the Energy East Guarantee relating to such Security or under Section 6.5 of this Indenture.

2.12 Shortening Or Extension Of Stated Maturity. If specified as contemplated by Section 2.1 or Section 2.2 with respect to the Securities of a particular series, the Company shall have the right to (i) shorten the Stated Maturity of the principal of the Securities of such series at any time to any date not earlier than the first date on which the Company has the right, if any, to redeem the Securities of such series, and (ii) extend the Stated Maturity of the principal of the Securities of such series at any time at its election for one or more periods, but in no event to a date later than the 49th anniversary of the first interest payment date following the Original Issue Date of the Securities of such series; provided that, if the Company elects to exercise its right to extend the Stated Maturity of the principal of the Securities of such series pursuant to this clause (ii), at the time such election is made and at the time of extension (A) the Company is not in bankruptcy, otherwise insolvent or in liquidation, (B) the Company is not in default in the payment of any interest or principal on such Securities, (C) in the case of any series of Securities issued to an Energy East Trust, such Energy East Trust is not in arrears on payments of Distributions on the Preferred Securities issued by such Energy East Trust and no deferred Distributions are accumulated, and (D) such Securities are rated not less than BBB- by Standard & Poor's Ratings Services or Baa3 by Moody's Investors Service, Inc. or the equivalent by any other nationally recognized statistical rating organization. In the event the Company elects to shorten or extend the Stated Maturity of the Securities of a particular series, it shall give notice to the Trustee (not less than 45 days prior to the effectiveness thereof), and the Trustee shall give notice of such shortening or extension to the holders not less than 30 nor more than 60 days prior to the effectiveness thereof.

2.13 Agreed Tax Treatment. Each Security issued hereunder shall provide that the Company and, by its acceptance of a Security or a beneficial interest therein, the holder of, and any Person that acquires a beneficial interest in, such Security agree that for United States federal, state and local tax purposes it is intended that such Security constitute indebtedness.

2.14 CUSIP Numbers. The Company in issuing the Securities may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to holders of Securities; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers.

ARTICLE III

REDEMPTION OF SECURITIES

3.1 Applicability Of Article. Securities of any series which are redeemable prior to Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 2.1 for Securities of any series) in accordance with this Article.

3.2 Mailing Of Notice Of Redemption. In case the Company shall desire to exercise any right to redeem all or, as the case may be, any part of the Securities of any series pursuant to this Indenture, it shall give notice of such redemption to holders of the Securities to be redeemed as hereinafter in this Section provided.

The Company covenants that it will pay to the Trustee or one or more Paying Agents, by 11:00 a.m., New York City time, on the date of such redemption, a sum in cash sufficient to redeem on the redemption date all the Securities so called for redemption at the applicable redemption price, together with any accrued interest on the Securities to be redeemed to but excluding the date fixed for redemption.

Notice of redemption shall be given to the holders of Securities to be redeemed as a whole or in part by mailing by first class mail, postage prepaid, a notice of such redemption not less than 20 nor more than 60 days prior to the date fixed for redemption to their last addresses as they shall appear upon the Register, but failure to give such notice by mailing in the manner herein provided to the holder of any Security designated for redemption as a whole or in part, or any defect therein, shall not affect the validity of the proceedings for the redemption of any other Security.

Any notice which is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the holder receives the notice.

Each such notice of redemption shall identify the Securities to be redeemed (including CUSIP numbers) and specify the date fixed for redemption and the redemption price at which Securities are to be redeemed (or if the redemption price cannot be calculated prior to the time the notice is required to be given, the manner of calculation thereof), and shall state that payment of the redemption price of the Securities or portions thereof to be redeemed will be made at any of the offices or agencies to be maintained by the Company in accordance with the provisions of Section 4.2 with respect to the Securities to be redeemed, upon presentation and surrender of such Securities or portions thereof, and that, if applicable, interest accrued to the date fixed for redemption will be paid as specified in said notice and on and after said date interest thereon will cease to accrue.

If less than all the Securities of any series are to be redeemed, the notice of redemption to each holder shall specify such holder's Securities of such series to be redeemed as a whole or in part. In case any Security is to be redeemed in part only, the notice which relates to such Security shall state the portion of the principal amount thereof to be redeemed (which shall be equal to an authorized denomination for Securities of such series), and shall state that on and after the redemption date, upon surrender of such Security, the holder will receive the redemption price in respect to the principal amount thereof called for redemption and, without charge, a new Security or Securities of the same series of authorized denominations for the principal amount thereof remaining unredeemed.

In the case of any redemption at the election of the Company, the Company shall, at least 45 days prior to the date fixed for redemption (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such redemption date, the basis for such redemption and of the principal amount of Securities of the applicable series to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or that is subject to compliance with conditions provided in the terms of such Securities, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such restriction or conditions.

If less than all the Securities of such series are to be redeemed, thereupon the Trustee shall select, by lot, or in any manner it shall deem fair, the Securities of such series to be redeemed as a whole or in part and shall thereafter promptly notify the Company in writing of the particular Securities of such series or portions thereof to be redeemed. If the Securities of any series to be redeemed consist of Securities having different dates on which the principal or any installment of principal is payable or different rates of interest, if any, or different methods by which interest may be determined or have any other different tenor or terms, then the Company may, by written notice to the Trustee, direct that Securities of such series to be redeemed shall be selected from among groups of such Securities having specified tenor or terms and the Trustee shall thereafter select the particular Securities to be redeemed in the manner set forth in the preceding sentence from among the group of such Securities so specified.

3.3 When Securities Called For Redemption Become Due And Payable. If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities specified in such notice shall become due and payable on the date and at the place or places stated in such notice at the applicable redemption price, together, if applicable, with any interest accrued (including any Additional Interest or other interest) to but excluding the date fixed for redemption, and on and after such date fixed for redemption (unless the Company shall default in the payment of such Securities at the applicable redemption price, together with any interest accrued to the date fixed for redemption) any interest on the Securities or portions of Securities so called for redemption shall cease to accrue, and, except as provided in Sections 7.5 and 12.4, such Securities shall cease from and after the date fixed for redemption to be entitled to any benefit or security under this Indenture, and the holders thereof shall have no right in respect of such Securities except the right to receive the redemption price thereof and any unpaid interest accrued to but excluding the date fixed for redemption. On presentation and surrender of such Securities at said place of payment in said notice specified, such Securities or portions thereof shall be paid and redeemed by the Company at the applicable redemption price, together with any interest accrued to but excluding the date fixed for redemption; provided, however, that, except as otherwise specified as contemplated by Section 2.1, any regular payment of interest becoming due on the date fixed for redemption shall be payable to the holders of the Securities registered as such on the relevant record date as provided in Article II hereof. Upon surrender of any Security which is redeemed in part only, the Company shall execute and the Trustee shall authenticate and deliver at the expense of the Company a new Security of the same series of like tenor and terms of authorized denomination in principal amount equal to the unredeemed portion of the Security so surrendered; except that if a global Security is so surrendered, the Company shall execute, and the Trustee shall authenticate and deliver to the Depositary for such global Security, without service charge, a global Security in a denomination equal to and in exchange for the unredeemed portion of the principal of the global Security so surrendered. If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the date fixed for redemption at the rate borne by or prescribed therefor in the Security, or, in the case of a Security which does not bear interest, at the rate of interest set forth therefor in the Security to the extent permitted by law.

ARTICLE IV

PARTICULAR COVENANTS OF THE COMPANY

The Company covenants as follows:

4.1 Payment Of Principal Of and Interest On Securities. The Company will duly and punctually pay or cause to be paid the principal of and interest (including any Additional Interest and/or Additional Tax Sums due thereon), if any, on each of the Securities at the time and places and in the manner provided herein and in the Securities. Except as otherwise specified as contemplated by Section 2.1, if the Securities of any series bear interest, each installment of interest on the Securities of such series may at the option of the Company be paid (i) by mailing a check or checks for such interest payable to the Person entitled thereto pursuant to Section 2.3 to the address of such person as it appears on the Register of the Securities of such series or (ii) by transfer to an account maintained by the Person entitled thereto as specified in the Register of Securities, provided that proper transfer instructions have been received by the record date.

4.2 Maintenance Of Offices Or Agencies For Registration Of Transfer, Exchange And Payment Of Securities. So long as any of the Securities shall remain outstanding, the Company will maintain an office or agency where the Securities may be presented for registration, exchange and registration of transfer as in this Indenture provided, and where notices and demands to or upon the Company in respect of the Securities or of this Indenture may be served, and where the Securities may be presented for payment. In case the Company shall designate and maintain some office or agency other than the previously designated office or agency, it shall give the Trustee prompt written notice thereof. In case the Company shall fail to maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof to the Trustee, presentations and demands may be made and notices may be served at the principal office of the Trustee.

In addition to such office or agency, the Company may from time to time constitute and appoint one or more other offices or agencies for such purposes with respect to Securities of any series, and one or more paying agents for the payment of Securities of any series, in such cities or in one or more other cities, and may from time to time rescind such appointments, as the Company may deem desirable or expedient, and as to which the Company has notified the Trustee.

4.3 Appointment To Fill A Vacancy In The Office Of Trustee. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee with respect to each series of Securities hereunder.

4.4 Duties of Paying Agent.

(a) If the Company shall appoint a Paying Agent other than the Trustee with respect to Securities of any series, it will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section and Section 12.3,

(i) that it will hold all sums held by it as such agent for the payment of the principal of or interest, if any, on the Securities of such series (whether such sums have been paid to it by the Company or by any other obligor on the Securities of such series) in trust for the benefit of the holders of the Securities of such series entitled to such principal or interest and will notify the Trustee of the receipt of sums to be so held,

(ii) that it will give the Trustee notice of any failure by the Company (or by any other obligor on the Securities of such series) to make any payment of the principal of or interest on the Securities of such series when the same shall be due and payable, and

(iii) that it will at any time during the continuance of any Event of Default, upon the written request of the Trustee, deliver to the Trustee all sums so held in trust by it.

(b) Whenever the Company shall have one or more Paying Agents with respect to the Securities of any series, it will, prior to each due date of the principal of or any interest on a Security of such series (except as provided in Section 3.2), deposit with a Paying Agent of such series a sum sufficient to pay the principal or interest so becoming due, such sum to be held in trust for the benefit of the holders of Securities of such series entitled to such principal or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

(c) If the Company shall act as its own Paying Agent with respect to the Securities of any series, it will, on or before each due date of the principal of or any interest on a Security of such series, set aside, segregate and hold in trust for the benefit of the holder of such Security, a sum sufficient to pay such principal or interest so becoming due and will notify the Trustee of such action, or any failure by it or any other obligor on the Securities of such series to take such action and will at any time during the continuance of any Event of Default, upon the written request of the Trustee, deliver to the Trustee all sums so held in trust by it.

(d) Anything in this Section to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge of this Indenture with respect to one or more or all series of Securities hereunder, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust for such series by it, or any Paying Agent hereunder, as required by this Section, such sums to be held by the Trustee upon the trust herein contained.

(e) Anything in this Section to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section is subject to the provisions of Sections 12.3 and 12.4.

4.5 Further Assurances. From time to time whenever reasonably demanded by the Trustee, the Company will make, execute and deliver or cause to be made, executed and delivered any and all such further and other instruments and assurances and take all such further action as may be reasonably necessary or proper to carry out the intention of or to facilitate the performance of the terms of this Indenture or to secure the rights and remedies hereunder of the holders of the Securities of any series.

4.6 Officers' Certificate As To Defaults; Notices Of Certain Defaults. The Company will, so long as any of the Securities are outstanding, deliver to the Trustee no later than 120 days after the end of each calendar year, beginning with the year 2001, a certificate signed by the Company's principal executive officer, principal financial officer or principal accounting officer stating that a review has been made under his or her supervision of the activities of the Company during such year and of the performance under this Indenture and, to the best of his or her knowledge, the Company has complied with all conditions and covenants under this Indenture throughout such calendar year, or if there has been a default in the fulfillment of any such obligation, specifying each such default known and the nature and status thereof. For purposes of this Section, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture. In addition, the Company shall give the notice to the Trustee as and when required by the fourth paragraph of Section 14.1.

4.7 Waiver Of Covenants. The Company may omit in any particular instance to comply with any covenant or condition specifically contained in this Indenture for the benefit of one or more series of Securities, if before the time for such compliance the holders of a majority in principal amount of the Securities of all series affected (all series voting as one class) at the time outstanding (determined as provided in Section 8.4) shall waive such compliance in such instance, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect.

4.8 Additional Tax Sums. In the case of the Securities of a series issued to an Energy East Trust, so long as no Event of Default has occurred and is continuing and except as otherwise specified as contemplated by Section 2.1 or Section 2.2, in the event that (i) an Energy East Trust is the holder of all of the Outstanding Securities of such series, (ii) a Tax Event in respect of such Energy East Trust shall have occurred and be continuing and (iii) the Company shall not have (a) redeemed the Securities of such series or (b) terminated such Energy East Trust pursuant to the termination provisions of the related Trust Agreement, the Company shall pay to such Energy East Trust (and any permitted successor or assign under the related Trust Agreement) for so long as such Energy East Trust (or its permitted successor or assignee) is the registered holder of any Securities of such series, such additional amounts as may be necessary in order that the amount of Distributions then due and payable by such Energy East Trust on the related Preferred Securities and Common Securities that at any time remain outstanding in accordance with the terms thereof shall not be reduced as a result of any additional taxes, duties and other governmental charges to which such Energy East Trust has become subject as a result of such Tax Event (but not including withholding taxes imposed on holders of such Preferred Securities and Common Securities) (the "Additional Tax Sums"). Whenever in this Indenture or the Securities there is a reference in any context to the payment of principal of or interest on the Securities, such reference shall be deemed to include payment of the Additional Tax Sums provided for in this paragraph to the extent that, in such context, Additional Tax Sums are, were or would be payable in respect thereof pursuant to the provisions of this Section and express reference to the payment of Additional Tax Sums (if applicable) in any provisions hereof shall not be construed as excluding Additional Tax Sums in those provisions hereof where such express reference is not made; provided, however, that the deferral of the payment of interest pursuant to Section 2.10 on the Securities shall not defer the payment of any Additional Tax Sums that may be then due and payable.

4.9 Additional Covenants. The Company covenants and agrees with each holder of Securities of a series issued to an Energy East Trust that it shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any shares of the Company's Capital Stock (which includes Common Stock and preferred stock), or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Company that rank on a parity with or junior to the Securities of such series or make any guarantee payments with respect to any guarantee by the Company of debt securities of any Subsidiary that by its terms ranks on a parity with or junior to the Securities of such series (other than (a) dividends or distributions in Common Stock; (b) any declaration of a dividend in connection with the implementation of a Rights Plan, the issuance of any Capital Stock of the Company under any Rights Plan or the redemption or repurchase of any rights distributed pursuant to a Rights Plan; (c) payments under any Energy East Guarantee; and (d) purchases of Common Stock related to the issuance of Common Stock or rights under the Company's dividend reinvestment plan, or under any of the Company's benefit plans for its directors, officers, employees, consultants or advisors) if at such time (i) there shall have occurred any event of which the Company has actual knowledge that (a) with the giving of notice or the lapse of time or both, would constitute an Event of Default hereunder and (b) in respect of which the Company shall not have taken reasonable steps to cure, (ii) the Company shall be in default with respect to its payment of any obligations under the related Energy East Guarantee or (iii) the Company shall have given notice of its election to begin an Extension Period as provided in Section 2.10 and shall not have rescinded such notice, or such Extension Period, or any extension thereof, shall be continuing.

The Company also covenants with each holder of Securities of a series issued to an Energy East Trust (i) to maintain directly or indirectly 100% ownership of the Common Securities of such Energy East Trust; provided, however, that any permitted successor or assignee of the Company hereunder may succeed to the Company's ownership of such Common Securities, (ii) not to voluntarily terminate, wind up or liquidate such Energy East Trust, except (a) in connection with a prepayment in full of the Securities or a distribution of the Securities of such series to the holders of Preferred Securities in liquidation of such Energy East Trust or (b) in connection with certain mergers, consolidations or amalgamations permitted by the relevant Trust Agreement and (iii) to use its reasonable efforts, consistent with the terms and provisions of such Trust Agreement, to cause such Energy East Trust to remain classified as a grantor trust and not an association taxable as a corporation for United States federal income tax purposes.

4.10 Calculation Of Original Issue Discount. The Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on outstanding Securities as of the end of such year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

ARTICLE V

SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE

5.1 Company To Furnish Trustee Information As To The Names And Addresses Of Securityholders. The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semiannually not more than 5 days after each record date for payment of interest, and at such other times as the Trustee may request in writing within 30 days after receipt by the Company of any such request, a list in such form as the Trustee may reasonably require containing all information in the possession or control of the Company, or any Paying Agent or any registrar of the Securities of each series, other than the Trustee, as to the names and addresses of the holders of Securities of such series obtained (in the case of each list other than the first list) since the date as of which the next previous list was furnished; provided, however, that if the Trustee shall be the registrar of the Securities of such series, no such list need be furnished; and provided further that the Company shall not be obligated to provide such a list of Securityholders at any time the list of Securityholders does not differ from the most recent list of Securityholders given to the Trustee by the Company. Any such list may be dated as of a date not more than fifteen days prior to the time such information is furnished or caused to be furnished, and need not include information received after such date.

5.2 Trustee To Preserve Information As To The Names And Addresses Of Securityholders Received By It. The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of the Trust Indenture Act.

Each and every holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any Paying Agent nor any registrar shall be held accountable by reason of the disclosure of any information as to the names and addresses of the holders of Securities in accordance with Section 312(b) of the Trust Indenture Act, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 312(b) of the Trust Indenture Act.

5.3 Annual And Other Reports To Be Filed By Company With Trustee.

(a) The Company covenants and agrees to file with the Trustee within fifteen days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of such Sections, then it will file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations.

(b) The Company covenants and agrees to file with the Trustee and the Commission, in accordance with the rules and regulations prescribed from time to time by the Commission, such additional information, documents, and reports with respect to compliance by the Company with the conditions and covenants provided for in this Indenture as may be required from time to time by such rules and regulations.

(c) The Company covenants and agrees to transmit to the holders of Securities within 30 days after the filing thereof with the Trustee, in the manner and to the extent provided in subsection (c) of Section 5.4 with respect to reports pursuant to subsection (a) of said Section 5.4, such summaries of any information, documents and reports required to be filed by the Company pursuant to subsections (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

(d) Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers' Certificates).

5.4 Trustee To Transmit Annual Report To Securityholders.

(a) Within 60 days after the first May 15 which occurs not less than 60 days following the first date of issuance of Securities of any series under this Indenture and within 60 days after May 15 in every year thereafter, so long as any Securities are outstanding hereunder, the Trustee shall transmit to the Securityholders as hereinafter in this Section provided, a brief report dated as of such May 15 with respect to any of the following events which may have occurred within the previous twelve (12) months (but if no such event has occurred within such period no report need be transmitted):

(i) Any change to its eligibility under Section 7.9, and its qualifications under Section 7.8;

(ii) The creation of or any material change to a relationship which, with the occurrence of an Event of Default, would create a conflicting interest within the meaning of the Trust Indenture Act;

(iii) The character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) which remain unpaid on the date of such report, and for the reimbursement of which it claims or may claim a lien or charge prior to that of the Securities of any series on any property or funds held or collected by it as Trustee, except that the Trustee shall not be required (but may elect) to report such advances if such advances so remaining unpaid aggregate not more than one-half of one percent of the principal amount of the Securities of all series outstanding as of the date of such report;

(iv) Any change to the amount, interest rate, and maturity date of all other indebtedness owing by the Company (or by any other obligor on the Securities) to the Trustee in its individual capacity, on the date of such report, with a brief description of any property held as collateral security therefor, except indebtedness based upon a creditor relationship arising in any manner described in paragraph (2), (3), (4), or (6) of subsection (b) of Section 311 of the Trust Indenture Act;

(v) Any change to the property and funds, if any, physically in the possession of the Trustee (as such) on the date of such report;

(vi) Any additional issue of Securities which the Trustee has not previously reported to Securityholders; and

(vii) Any action taken by the Trustee in the performance of its duties under this Indenture which it has not previously reported to Securityholders and which in its opinion materially affects the Securities of any series, except action in respect of a default, notice of which has been or is to be withheld by it in accordance with the provisions of Section 6.7.

(b) The Trustee shall transmit to the Securityholders, as hereinafter provided, a brief report with respect to the character and amount of any advances (and if the Trustee elects so to state, the circumstances surrounding the making thereof) made by the Trustee (as such) since the date of the last report transmitted pursuant to the provisions of subsection (a) of this Section (or if such report has not yet been so transmitted, since the date of execution of this Indenture), for the reimbursement of which it claims or may claim a lien or charge prior to that of the Securities of any series on property or funds held or collected by it as Trustee, and which it has not previously reported pursuant to this subsection, except that the Trustee shall not be required (but may elect) to report such advances if such advances so remaining unpaid aggregate not more than 10 percent of the principal amount of Securities of all series outstanding as of the date of such report, such report to be transmitted within 90 days after such time.

(c) Reports pursuant to this Section shall be transmitted by mail to all holders of Securities of any series, as the names and addresses of such holders shall appear upon the Register of the Securities of such series.

(d) A copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with each stock exchange upon which the Securities of any series are listed and also with the Commission. The Company will promptly notify the Trustee when and as the Securities of any series become listed on any stock exchange.

ARTICLE VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON
EVENT OF DEFAULT

6.1 Events Of Default Defined. The term "Event of Default" whenever used herein with respect to Securities of any series shall mean any one of the following events:

(a) default in the payment of any installment of interest upon any of the Securities of such series as and when the same shall become due and payable, and continuance of such default for a period of 30 days (subject to the deferral of any due date in the case of an Extension Period); or

(b) default in the payment of all or any part of the principal of any of the Securities of such series as and when the same shall become due and payable whether upon Maturity, upon any redemption, by declaration or otherwise; or

(c) failure on the part of the Company duly to observe or perform any other covenant or agreement (other than covenants to pay interest, principal and premium, which are subject to subsections (a) and (b) above of this Section) on the part of the Company in the Securities or in this Indenture (including any supplemental indenture or pursuant to any Officers' Certificate as contemplated by Section 2.1) which are for the benefit of the Securities of such series, for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee, or to the Company and the Trustee by the holders of not less than 25% in principal amount of the Securities of such series and all other series so benefited (all series voting as one class) at the time outstanding under this Indenture a written notice specifying such failure and stating that such notice is a "Notice of Default" hereunder, unless the Trustee, or the Trustee and the Holders of a principal amount of Securities of such series not less than the principal amount of Securities the Holders of which gave such notice, as the case may be, shall agree in writing to an extension of such period prior to its expiration; provided, however, that the Trustee or the Trustee and the Holders of such principal amount of Securities of such series, as the case may be, shall be deemed to have agreed to an extension of such period if corrective action is initiated by the Company within such period and is being diligently pursued; or

(d) the commencement by the Company of a voluntary case under Chapter 7 or Chapter 11 of the federal Bankruptcy Code or any other similar state or federal law now or hereafter in effect, or the consent by the Company to the entry of a decree or order for relief in an involuntary case under any such law, or the consent by the Company to the appointment of or the taking possession by a liquidating agent or committee, conservator or receiver for the Company or any substantial part of its property, or the general assignment by the Company for the benefit of its creditors, or the admission by the Company in writing of its inability to pay its debts as they become due; or

(e) the entry of a decree or order for relief by a court having jurisdiction in the premises in respect of the Company in an involuntary case under Chapter 7 or Chapter 11 of the federal Bankruptcy Code or any other similar state or federal law now or hereafter in effect, and the continuance of any such decree or order unstayed and in effect for a period of 60 days, or the appointment of or the taking possession by a liquidating agent or committee, conservator or receiver for the Company or any substantial part of its property, and the continuance of any such appointment unstayed and in effect for a period of 60 days.

If an Event of Default shall have occurred and be continuing, unless the principal of all the Securities shall have already become due and payable, either the Trustee or (i) the holders of not less than 25% in principal amount of all the then outstanding Securities of the series as to which such Event of Default under clauses 6.1(a), 6.1(b) or 6.1(c) has occurred (each such series voting as a separate class in the case of an Event of Default under clauses 6.1(a) or 6.1(b), and all such series voting as one class in the case of an Event of Default under clauses 6.1(c)), or (ii) the holders of not less than 25% in principal amount of all of the outstanding Securities in the case of an Event of Default under clauses 6.1(d) or 6.1(e), by notice in writing to the Company (and to the Trustee if given by Securityholders) may declare the principal amount (or if Securities of any series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) of all the Securities of such series in the case of an Event of Default under clauses 6.1(a), 6.1(b) or 6.1(c) or of all the outstanding Securities in the case of an Event of Default under clauses 6.1(d) or 6.1(e), in each case together with any accrued interest, to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable; provided, however, that in the case of the Securities of a series issued to an Energy East Trust, if upon an Event of Default, the Trustee or the holders of at least 25% in principal amount of the outstanding Securities of such series fail to declare the principal of all the Securities of that series to be immediately due and payable, the holders of at least 25% in aggregate liquidation amount of the corresponding series of Preferred Securities then outstanding shall have such right by a notice in writing to the Company and the Trustee.

The foregoing provisions, however, are subject to the condition that if, at any time after the principal amount (or specified portion thereof) of the Securities of any one or more series (or of all the Securities, as the case may be) shall have been so declared due and payable, and before any judgment or decree for the payment of moneys due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of such series (or upon all the Securities, as the case may be) and the principal of any and all Securities of such series (or of any and all the Securities, as the case may be) which shall have become due otherwise than by declaration (with interest on overdue installments of interest to the extent permitted by law and on such principal at the rate or rates of interest borne by, or prescribed therefor in, the Securities of each such series to the date of such payment or deposit) and the amounts payable to the Trustee under Section 7.6, and any and all defaults under the Indenture with respect to Securities of such series (or all Securities, as the case may be), other than the nonpayment of principal of and any accrued interest on Securities of such series (or any Securities, as the case may be) which shall have become due by declaration, shall have been cured, remedied or waived as provided in Section 6.6, then and in every such case the holders of a majority in principal amount of the Securities of such series (or of all the Securities, as the case may be) then outstanding and as to which such Event of Default has occurred (such series or all series voting as one class, if more than one series are so entitled) by written notice to the Company and to the Trustee, may rescind and annul such declaration and its consequences. In the case of Securities issued to an Energy East Trust, should the holders of such Securities fail to annul such declaration and waive such default, the holders of a majority in aggregate liquidation preference of related Preferred Securities shall have such right; but no such rescission and annulment shall extend to or shall affect any subsequent default, or shall impair any right consequent thereon.

In case the Trustee, any holder of Securities or any holder of Preferred Securities shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, such holder of Securities or such holder of Preferred Securities then and in every such case the Company, the Trustee, the holders of the Securities of such series (or of all the Securities, as the case may be) and the holders of Preferred Securities shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee, the holders of the Securities of such series (or of all the Securities, as the case may be) and the holders of Preferred Securities shall continue as though no such proceedings had been taken.

6.2 Covenant Of Company To Pay To Trustee Whole Amount Due On Securities On Default In Payment Of Interest Or Principal. The Company covenants that (1) in case default shall be made in the payment of any installment of interest on any of the Securities of any series as and when the same shall become due and payable, and such default shall have continued for a period of 30 days (subject to the deferral of any due date in the case of an Extension Period), or (2) in case default shall be made in the payment of all or any part of the principal of any of the Securities of any series as and when the same shall become due and payable, whether upon Maturity, upon any redemption, by declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of such series, the whole amount that then shall have become due and payable on all such Securities of such series for principal or interest, or both, as the case may be, with interest upon the overdue principal and installments of interest (to the extent permitted by law) at the rate or rates of interest borne by or prescribed therefor in the Securities of such series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents and counsel, and any expenses or disbursements reasonably incurred, and all reasonable advances made hereunder by the Trustee, its agents, attorneys and counsel, except as a result of its negligence or bad faith.

In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or any other obligor upon such Securities, and collect in the manner provided by law out of the property of the Company or any other obligor upon such Securities wherever situated the moneys adjudged or decreed to be payable.

The Trustee shall be entitled and empowered, either in its own name or as trustee of an express trust, or as attorney-in-fact for the holders of the Securities of any series, or in any one or more of such capacities (irrespective of whether the principal of the Securities of such series shall then be due and payable, whether upon Maturity, upon any redemption, by declaration or otherwise, and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section) to file and prove a claim or claims for the whole amount of principal (or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of such series) and interest owing and unpaid in respect of the Securities of such series and to file such other documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation of the Trustee, its agents and counsel, and for reimbursement of all expenses and disbursements reasonably incurred, and all reasonable advances made hereunder by the Trustee, its agents and counsel, except as a result of its negligence or bad faith) and of the holders of the Securities of such series allowed in any equity receivership, insolvency, bankruptcy, liquidation, arrangement, readjustment, reorganization or any other judicial proceedings relative to the Company or any other obligor on the Securities of such series or their creditors, or their property. The Trustee is hereby irrevocably appointed (and the successive respective holders of the Securities of each series by taking and holding the same shall be conclusively deemed to have so appointed the Trustee) the true and lawful attorney-in-fact of the respective holders of the Securities of such series, with authority to make and file in the respective names of the holders of the Securities of such series, or on behalf of the holders of the Securities of such series as a class, any proof of debt, amendment of proof of debt, claim, petition or other document in any such proceeding and to receive payment of any sums becoming distributable on account thereof, and to execute any such other papers and documents and to do and perform any and all such acts and things for and on behalf of such holders of the Securities of such series, as may be necessary or advisable in the opinion of the Trustee in order to have the respective claims of the Trustee and of the holders of the Securities of such series allowed in any such proceeding, and to receive payment of or on account of such claims and to distribute the same, and any receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the holders, to pay to the Trustee any amount due to it under Section 7.6; provided, however, that nothing herein shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of such series or the rights of any holder thereof, or to authorize the Trustee to vote in respect of the claim of any holder of Securities of such series in any such proceeding.

All rights of action and of asserting claims under this Indenture, or under any of the Securities of any series, may be enforced by the Trustee without the possession of any of the Securities of such series, or the production thereof on any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee, shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of such Trustee, its agents and counsel, for the ratable benefit of the holders of the Securities of such series.

6.3 Application Of Moneys Collected By Trustee. Any moneys collected by the Trustee pursuant to Section 6.2 shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such moneys, upon presentation of the several Securities in respect of which moneys have been collected, and stamping thereon the payment, if only partially paid, and upon surrender thereof if fully paid:

First: To the payment of reasonable costs and expenses of collection, and of all amounts payable to the Trustee under Section 7.6;

Second: In case the principal of the outstanding Securities in respect of which moneys have been collected shall not have become due and be unpaid, to the payment of any unpaid interest on such Securities, in the order of the maturity of the installments of such interest, with interest upon the overdue installments of interest (so far as permitted by law and to the extent that such interest has been collected by the Trustee) at the rate or rates of interest borne by, or prescribed therefor in, such Securities, such payments to be made ratably to the persons entitled thereto, without discrimination or preference;

Third: In case the principal of the outstanding Securities in respect of which such moneys have been collected shall have become due and be unpaid, whether upon Maturity, upon any redemption, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon such Securities for principal and interest, if any, with interest on the overdue principal and any installments of interest (so far as permitted by law and to the extent that such interest has been collected by the Trustee) at the rate or rates of interest borne by, or prescribed therefor in, such Securities; and in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon such Securities, then to the payment of such principal and interest, without preference or priority of principal over interest, or of interest over principal, or of any installment of interest over any other installment of interest, or of any Security over any other Security, ratably to the aggregate of such unpaid principal and interest; and

Fourth: To the payment of the remainder, if any, to the Company, its successors or assigns, or to whomsoever may be lawfully entitled to receive the same, or as a court of competent jurisdiction may direct.

6.4 Limitation On Suits By Holders Of Securities. No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as hereinbefore provided, and unless also the holders of not less than a majority in principal amount of all the Securities at the time outstanding (considered as one class) shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.6; it being understood and intended, and being expressly covenanted by the taker and holder of every Security with every other taker and holder and the Trustee, that no one or more holders of Securities shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

Notwithstanding any other provisions in this Indenture, the right of any holder of any Security to receive payment of the principal of and interest on such Security, on or after the respective due dates expressed in such Security (or, in the case of redemption on or after the date fixed for redemption), or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such holder.

6.5 On Default Trustee May Take Appropriate Action; Direct Action. In case of an Event of Default hereunder the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. Except as provided in the last paragraph of Section 2.7, all powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee, of any holder of any of the Securities or any holder of Preferred Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 8.4, every power and remedy given by this Article or by law to the Trustee, to the Securityholders or the holders of Preferred Securities may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee, by the Securityholders or by the holders of Preferred Securities, as the case may be.

In the case of Securities of a series issued to an Energy East Trust, any holder of the corresponding series of Preferred Securities issued by such Energy East Trust shall have the right, upon the occurrence of an Event of Default described in Section 6.1(a) or (b) above, to institute a suit directly against the Company (a "Direct Action") for enforcement of payment to such holder of principal of (including premium, if any) and interest (including any Additional Interest) on the Securities having a principal amount equal to the aggregate liquidation amount of such Preferred Securities of the corresponding series held by such holder. Notwithstanding any payments made to a holder of such Preferred Securities by the Company pursuant to a Direct Action initiated by such holder, the Company shall remain obligated to pay the principal of or interest due on the Securities, and the Company shall be subrogated to the rights of the holder of such Preferred Securities with respect to payments on the Preferred Securities to the extent of any payments made by the Company to such holder in any Direct Action.

6.6 Rights Of Holders Of Majority In Principal Amount Of Securities To Direct Trustee And To Waive Default. The holders of at least a majority in principal amount of the Securities of any one or more series or of all the Securities, as the case may be (voting as one class), at the time outstanding (determined as provided in Section 8.4) shall have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee under this Indenture with respect to such one or more series; provided, however, that subject to Section 7.1, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by Opinion of Counsel determines that the action so directed may not lawfully be taken, or if the Trustee in good faith shall, by a Responsible Officer or Officers of the Trustee, determine that the proceedings so directed would be illegal or involve it in personal liability or be unduly prejudicial to the rights of Securityholders of such one or more series not parties to such direction, and provided further that nothing in this Indenture shall impair the right of the Trustee to take any action deemed proper by the Trustee and which is not inconsistent with such direction by such Securityholders of such one or more series. The holders of at least a majority in principal amount of the Securities of all series as to which an Event of Default hereunder has occurred (all series voting as one class) at the time outstanding (determined as provided in Section 8.4) and, in the case of any Preferred Securities of a series issued to an Energy East Trust, the holders of at least a majority in aggregate liquidation amount of the Preferred Securities issued by such Energy East Trust, may waive any past default hereunder with respect to such series and its consequences, except a default in the payment of the principal of or interest on any of such Securities or Preferred Securities or in respect of a covenant or provision hereof which under Article X cannot be modified or amended without the consent of the holder of each Security so affected. Upon any such waiver, such default shall cease to exist and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. Any such waiver shall be deemed to be on behalf of the holders of all the Securities of such series or, in the case of a waiver by holders of Preferred Securities issued by such Energy East Trust, on behalf of all holders of Preferred Securities issued by such Energy East Trust.

6.7 Trustee To Give Notice Of Defaults Known To It, But May Withhold In Certain Circumstances. The Trustee shall, within 90 days after the occurrence of any default hereunder with respect to the Securities of any series, give to the holders of the Securities of such series in the manner and to the extent provided in subsection (c) of Section 5.4 with respect to reports pursuant to subsection (a) of said Section 5.4, notice of such default actually known to the Trustee unless such default shall have been cured, remedied or waived before the giving of such notice (the term "default" for the purposes of this Section being hereby defined to be the events specified in clauses (c), (d) and (e) of Section 6.1 and default in the payment of the principal of or interest on Securities of any series, not including any periods of grace provided for therein, and irrespective of the giving of written notice specified therein); provided, however, that, except in the case of default in the payment of the principal of or interest on any of the Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the Board of Directors, the executive committee, or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the holders of the Securities of such series.

6.8 Requirement Of An Undertaking To Pay Costs In Certain Suits Under The Indenture Or Against The Trustee. All parties to this Indenture agree, and each holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any holder of Securities of any series, or group of such Securityholders, holding in the aggregate more than 10 percent in principal amount of all the Securities (all series considered as one class) outstanding, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of or interest on any Security, on or after the due date expressed in such Security (or in the case of any redemption, on or after the date fixed for redemption).

ARTICLE VII

CONCERNING THE TRUSTEE

7.1 Upon Event Of Default Occurring And Continuing, Trustee Shall Exercise Powers Vested In It, And Use Same Degree Of Care And Skill In Their Exercise, As A Prudent Man Would Use. The Trustee, prior to the occurrence of an Event of Default and after the curing, remedying or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (which has not been cured, remedied or waived) the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct; provided, however, that

(a) Prior to the occurrence of an Event of Default and after the curing, remedying or waiving of all Events of Default which may have occurred:

(i) the duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

(ii) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

(b) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made;

(c) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of Securities pursuant to Section 6.6 relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

(d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 7.1; and

(e) None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

7.2 Reliance On Documents, Opinions, Etc. Except as otherwise provided in Section 7.1:

(a) The Trustee may rely and shall be fully protected in acting or refraining from acting in good faith upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, appraisal, bond, debenture, note, other evidence of indebtedness or other paper or document reasonably believed by it to be genuine and to have been signed, sent or presented by the proper party or parties;

(b) Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officers' Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any Resolution of the Company may be evidenced to the Trustee by a copy thereof certified by the Corporate Secretary of the Company;

(c) The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel with respect to legal matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Securityholders pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee such adequate security or indemnity against the costs, expenses (including attorneys' fees and expenses) and liabilities that might be incurred by it in complying with such request or direction;

(e) The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

(f) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval, bond, debenture, note, other evidence of indebtedness or other paper or document, unless requested in writing to do so by the holders of Securities pursuant to Section 6.6, but the Trustee may make such further inquiry or investigation into such facts or matters as it may see fit; provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require adequate indemnity against such costs, expenses or liabilities as a condition to so proceeding; and provided further, that nothing in this subsection (f) shall require the Trustee to give the Securityholders any notice other than that required by Section 6.7. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand;

(g) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it hereunder; provided, however, that the Trustee shall be responsible for its own negligence or recklessness with respect to the selection of any such agent or attorney;

(h) The Trustee shall be under no responsibility for the approval by it in good faith of any expert for any of the purposes expressed in this Indenture; and

(i) The Trustee shall not be deemed to have notice of any Event of Default unless a Responsible Officer of the Trustee in its principal office has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the principal office of the Trustee from the Company or any Securityholder, and such notice references the Securities and this Indenture.

7.3 Trustee Not Liable For Recitals In Indenture Or In Securities. The recitals contained herein and in the Securities (other than the certificate of authentication on the Securities) shall be taken as the statements of the Company, and the Trustee does not assume any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the use or application by the Company of the proceeds of the Securities of any series.

7.4 May Hold Securities. The Trustee or any agent of the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Section 7.8, with the same rights it would have if it were not Trustee or such agent.

7.5 Moneys Received By Trustee To Be Held In Trust Without Interest. Subject to the provisions of Section 12.4, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder.

7.6 Trustee Entitled To Compensation, Reimbursement And Indemnity. The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such compensation as shall be agreed to in writing between the Company and the Trustee (which shall not be limited by any provision of law in regard to the compensation of a trustee of any express trust), and, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in connection with the acceptance or administration of its trust under this Indenture (including the reasonable compensation and the reasonable expenses and disbursements of its agents and counsel and of all persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence or bad faith. The Company also covenants and agrees to indemnify each of the Trustee, any predecessor Trustee and their agents for, and to hold them harmless against, any loss, liability or expense incurred without negligence or bad faith on their part and arising out of or in connection with the acceptance or administration of this trust and performance of their duties hereunder, including the reasonable costs and expenses (including reasonable fees and disbursements of their counsel) of defending themselves against any claim or liability in connection with the exercise or performance of any of the powers or duties hereunder. The obligations of the Company under this Section to compensate the Trustee, to pay or reimburse the Trustee for expenses, disbursements and advances and to indemnify and hold harmless the Trustee shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture and the resignation or removal of the Trustee. Such additional indebtedness shall be secured by a lien prior to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of or interest, if any, on particular Securities.

Without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 6.1(d) or Section 6.1(e), the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or other similar law.

7.7 Right Of Trustee To Rely On Officers' Certificate Where No Other Evidence Specifically Prescribed. Except as otherwise provided in Section 7.1, whenever in the administration of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting to take any action hereunder, the Trustee (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on its part, request and rely upon an Officers' Certificate which, upon receipt of such request, shall be promptly delivered by the Company.

7.8 Disqualification; Conflicting Interests. If the Trustee has or shall acquire any conflicting interest, within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

7.9 Requirements For Eligibility Of Trustee. There shall at all times be a Trustee hereunder that is a corporation, organized and doing business under the laws of the United States of America, any state thereof or the District of Columbia, eligible under Sections 310(a)(1) and (5) of the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act and that has a combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000 subject to supervision or examination by federal or state authority. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

7.10 Resignation And Removal Of Trustee.

(a) The Trustee, or any trustee or trustees hereafter appointed, may at any time resign with respect to one or more or all series of Securities by giving written notice of such resignation to the Company and by giving to the holders of Securities of the applicable series notice thereof in the manner and to the extent provided in subsection (c) of Section 5.4 with respect to reports pursuant to subsection (a) of Section 5.4. Upon receiving such notice of resignation and if the Company shall deem it appropriate evidence satisfactory to it of such mailing, the Company shall promptly appoint a successor Trustee with respect to the applicable series (it being understood that any successor Trustee may be appointed with respect to the Securities of one or more or all of such series and at any time there shall be only one Trustee with respect to the Securities of any particular series) by written instrument, in duplicate, executed pursuant to a Resolution of the Company, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor Trustee. If no successor Trustee shall have been so appointed with respect to any series and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee, or any Securityholder who has been a bona fide holder of a Security or Securities of the applicable series for at least six months may, subject to the provisions of Section 6.8, on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor Trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor Trustee.

(b) In case at any time any of the following shall occur:

(i) The Trustee shall fail to comply with Section 7.8 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities of the applicable series for at least six months, or

(ii) The Trustee shall cease to be eligible in accordance with the provisions of Section 7.9 and shall fail to resign after written request therefor by the Company or by any such Securityholder, or

(iii) The Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Company may remove the Trustee with respect to the applicable series and appoint a successor Trustee with respect to the applicable series by written instrument, in duplicate, executed pursuant to a Resolution of the Company, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor Trustee, or, subject to the provisions of Section 6.8, any Securityholder who has been a bona fide holder of a Security or Securities of the applicable series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the applicable series. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor Trustee.

(c) The holders of a majority in principal amount of the Securities of any one series voting as a separate class or all series voting as one class at the time outstanding (determined as provided in Section 8.4) may at any time remove the Trustee with respect to the applicable series or all series, as the case may be, and appoint a successor Trustee with respect to the applicable series or all series, as the case may be, by written instrument or instruments signed by such holders or their attorneys-in-fact duly authorized, or by the affidavits of the permanent chairman and permanent secretary of a meeting of the Securityholders (as elected in accordance with Section 9.5) evidencing the vote upon a resolution or resolutions submitted thereto with respect to such removal and appointment (as provided in Article IX), and by delivery thereof to the Trustee so removed, to the successor Trustee and to the Company.

(d) Any resignation or removal of the Trustee and any appointment of a successor Trustee pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor Trustee as provided in Section 7.11.

7.11 Acceptance By Successor Trustee. Any successor Trustee with respect to all series of Securities appointed as provided in Section 7.10 shall execute, acknowledge and deliver to the Company and to its predecessor Trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor Trustee with respect to all series shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties with respect to such series of its predecessor hereunder, with like effect as if originally named as Trustee herein; but, on the written request of the Company or of the successor Trustee, the Trustee ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of Section 7.6, execute and deliver an instrument transferring to such successor Trustee all the rights and powers with respect to such series of the Trustee so ceasing to act. Upon the request of any such successor Trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor Trustee all such rights and powers. Any Trustee ceasing to act shall, nevertheless, retain a lien upon all property or funds held or collected by such Trustee or any successor Trustee to secure any amounts then due it pursuant to the provisions of Section 7.6.

In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of such series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of such series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of such series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-Trustees of the same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of such series to which the appointment of such successor Trustee relates; but, on written request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of such series to which the appointment of such successor Trustee relates.

No successor Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Trustee shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section 7.9.

Upon acceptance of appointment by a successor Trustee as provided in this Section, the successor Trustee shall at the expense of the Company transmit notice of the succession of such Trustee hereunder to the holders of Securities of any applicable series in the manner and to the extent provided in subsection (c) of Section 5.4 with respect to reports pursuant to subsection (a) of said Section 5.4.

7.12 Successor To Trustee By Merger, Consolidation Or Succession To Business. Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be qualified under the provisions of Section 7.8 and eligible under the provisions of Section 7.9, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

7.13 Limitations on Preferential Collection Of Claims By The Trustee. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

ARTICLE VIII

CONCERNING THE SECURITYHOLDERS

8.1 Evidence Of Action By Securityholders. Whenever in this Indenture it is provided that the holders of a specified percentage in principal amount of the Securities of any or all series may take any action (including the making of any demand or request, the giving of any notice, consent, or waiver or the taking of any other action), the fact at the time of taking any such action the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by such Securityholders in person or by agent or proxy appointed in writing, or (b) by the record of such holders of Securities voting in favor thereof at any meeting of such Securityholders duly called and held in accordance with the provisions of Article IX, or (c) by a combination of such instrument or instruments and any such record of such a meeting of such Securityholders.

If there shall be more than one Trustee acting hereunder with respect to separate series of Securities, such Trustees shall collaborate, if necessary, in acting under Article IX and in determining whether the holders of a specified percentage in principal amount of the Securities of any or all series have taken any such action.

8.2 Proof Of Execution Of Instruments And Of Holding Of Securities. Subject to the provisions of Sections 7.1, 7.2 and 9.5, proof of the execution of any instrument by a Securityholder or his agent or proxy and proof of the holding by any person of any of the Securities shall be sufficient if made in the following manner:

The fact and date of the execution by any such person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

The ownership of Securities of any series shall be proved by the Register of such Securities of such series, or by certificates of the Security registrar thereof.

The Trustee shall not be bound to recognize any person as a Securityholder unless and until title to the Securities held by him is proved in the manner in this Article VIII provided.

The record of any Securityholders' meeting shall be proved in the manner provided in Section 9.6.

The Trustee may accept such other proof or require such additional proof of any matter referred to in this Section as it shall deem reasonable.

8.3 Who May Be Deemed Owners Of Securities. Prior to due presentment for registration of transfer of any Security, the Company, the Trustee and any agent of the Company or the Trustee may deem and treat the person in whose name such Security shall be registered upon the Register of Securities of the series of which such Security is a part as the absolute owner of such Security (whether or not payments in respect of such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or an account of the principal of and interest, subject to Section 2.3, on such Security and for all other purposes; and neither the Company nor the Trustee nor any agent of the Company or the Trustee shall be affected by any notice to the contrary. All such payments so made to any such holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Security.

8.4 Securities Owned By Company Or Controlled Or Controlling Persons Disregarded For Certain Purposes. In determining whether the holders of the requisite principal amount of Securities have concurred in any demand, direction, request, notice, vote, consent, waiver or other action under this Indenture, Securities which are owned by the Company or any other obligor on the Securities or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any other obligor on the Securities shall be disregarded and deemed not to be outstanding for the purpose of any such determination, provided that for the purposes of determining whether the Trustee shall be protected in relying on any such demand, direction, request, notice, vote, consent, waiver or other action, only Securities which a Responsible Officer of the Trustee assigned to its principal office actually knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to vote such Securities and that the pledgee is not a person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers' Certificate listing and identifying all Securities, if any, known by the Company to be owned or held by or for the account of the Company or any other obligor on the Securities or by any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any other obligor on the Securities; and, subject to the provisions of Section 7.1, the Trustee shall be entitled to accept such Officers' Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not listed therein are outstanding for the purpose of any such determination.

8.5 Instruments Executed By Securityholders Bind Future Holders. At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.1, of the taking of any action by the holders of the percentage in principal amount of the Securities specified in this Indenture in connection with such action, any holder of a Security which is shown by the evidence to be included in the Securities the holders of which have consented to such action may, by filing written notice with the Trustee at its principal office and upon proof of holding as provided in Section 8.2, revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the holder of any Security and any direction, demand, request, notice, waiver, consent, vote or other action of the holder of any Security which by any provisions of this Indenture is required or permitted to be given shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in lieu thereof or upon registration of transfer thereof, irrespective of whether any notation in regard thereto is made upon such Security. Any action taken by the holders of the percentage in principal amount of the Securities of any or all series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all of the Securities of such series subject, however, to the provisions of Section 7.1.

ARTICLE IX

SECURITYHOLDERS' MEETINGS

9.1 Purposes For Which Meetings May Be Called. A meeting of holders of Securities of any or all series may be called at any time and from time to time pursuant to the provisions of this Article for any of the following purposes:

(a) To give any notice to the Company or to the Trustee, or to give any directions to the Trustee, or to consent to the waiving of any default hereunder and its consequences, or to take any other action authorized to be taken by holders of Securities of any or all series, as the case may be, pursuant to any of the provisions of Article VI;

(b) To remove the Trustee and appoint a successor Trustee pursuant to the provisions of Article VII;

(c) To consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.2; or

(d) To take any other action authorized to be taken by or on behalf of the holders of any specified principal amount of the Securities of any or all series, as the case may be, under any other provision of this Indenture or under applicable law.

9.2 Manner Of Calling Meetings. The Trustee may at any time call a meeting of Securityholders to take any action specified in Section 9.1, to be held at such time and at such place in the Borough of Manhattan, City of New York, as the Trustee shall determine. Notice of every meeting of Securityholders setting forth the time and place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed not less than 15 nor more than 90 days prior to the date fixed for the meeting.

9.3 Call Of Meeting By Company Or Securityholders. In case at any time the Company, pursuant to a resolution of its Board of Directors, or the holders of not less than 10 percent in principal amount of the Securities of any or all series, as the case may be, then outstanding, shall have requested the Trustee to call a meeting of holders of Securities of any or all series, as the case may be, to take any action authorized in Section 9.1 by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed notice of such meeting within 20 days after receipt of such request, then the Company or such holders of Securities in the amount above specified may determine the time and place in the Borough of Manhattan, City of New York for such meeting and may call such meeting to take any action authorized in Section 9.1, by mailing notice thereof as provided in Section 9.2.

9.4 Who May Attend And Vote At Meetings. To be entitled to vote at any meeting of Securityholders a person shall (a) be a holder of one or more Securities with respect to which the meeting is being held, or (b) be a person appointed by an instrument in writing as proxy by such holder of one or more Securities. The only persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

9.5 Regulations May Be Made By Trustee. Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Securityholders, in regard to proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit. Except as otherwise permitted or required by any such regulations, the holding of Securities shall be proved in the manner specified in Section 8.2 and the appointment of any proxy shall be proved in the manner specified in said Section 8.2; provided, however, that such regulations may provide that written instruments appointing proxies regular on their face, may be presumed valid and genuine without the proof hereinabove or in said Section 8.2 specified.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Securityholders as provided in Section 9.3, in which case the Company or the Securityholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by majority vote of the meeting.

Subject to the provisions of Section 8.4, at any meeting each Securityholder or proxy shall be entitled to one vote for each $1,000 principal amount of Securities held or represented by him, provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not outstanding and ruled by the permanent chairman of the meeting to be not outstanding; provided, further, that each holder of Original Issue Discount Securities shall be entitled to one vote for each $1,000 amount which would be due upon acceleration of his Original Issue Discount Security on the date of the meeting. Neither a temporary nor a permanent chairman of the meeting shall have a right to vote other than by virtue of Securities held by him or instruments in writing as aforesaid duly designating him as the person to vote on behalf of other Securityholders. Any meeting of Securityholders duly called pursuant to the provisions of Section 9.2 or 9.3 may be adjourned from time to time, and the meeting may be held so adjourned without further notice.

At any meeting of Securityholders, the presence of persons holding or representing Securities in principal amount sufficient to take action on the business for the transaction of which such meeting was called shall constitute a quorum, but, if less than a quorum is present, the person or persons holding or representing a majority in principal amount of the Securities represented at the meeting may adjourn such meeting with the same effect for all intents and purposes, as though a quorum had been present.

9.6 Manner Of Voting At Meetings And Record To Be Kept. The vote upon any resolution submitted to any meeting of Securityholders shall be by written ballots on which shall be subscribed the signatures of the holders of Securities or of their representatives by proxy and the principal amount or principal amounts of the Securities held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the permanent secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the permanent secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 9.2. The record shall show the principal amount or principal amounts of the Securities voting in favor of, against, or abstaining from voting on, any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and permanent secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

Any record so signed and verified shall be conclusive evidence of the matters therein stated.

9.7 Exercise Of Rights Of Trustee, Securityholders and Holders Of Preferred Securities Not To Be Hindered Or Delayed. Nothing in this Article contained shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Securityholders or any rights expressly or impliedly conferred hereunder to make such call any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee, to the Securityholders or the holders of Preferred Securities under any of the provisions of this Indenture or of the Securities.

ARTICLE X

SUPPLEMENTAL INDENTURES

10.1 Purposes For Which Supplemental Indentures May Be Entered Into Without Consent Of Securityholders. Without the consent of any Securityholders or any holders of Preferred Securities, the Company, when authorized by a Resolution of the Company, and the Trustee may from time to time, and at any time enter into an indenture or indentures supplemental hereto, in form satisfactory to such Trustee (which shall comply with the provisions of the Trust Indenture Act as then in effect), for one or more of the following purposes:

(a) To evidence the succession of another corporation to the Company, or successive successions, and the assumption by the successor corporation of the covenants, agreements and obligations of the Company pursuant to Article XI hereof;

(b) To add to the covenants of the Company such further covenants, restrictions or conditions as the Company and the Trustee shall consider to be for the protection of the holders of all or any series of Securities (and if such covenants, restrictions or conditions are to be for the benefit of less than all series of Securities, stating that such covenants, restrictions or conditions are expressly being included solely for the benefit of such series), and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided, however, that in respect to any such additional covenant, restriction or condition such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default;

(c) To add or change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons;

(d) To change or eliminate any of the provisions of this Indenture; provided, however, that any such change or elimination shall become effective only when there is no Security of any series outstanding created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision;

(e) To establish the form or terms of Securities of any series as permitted by Section 2.1 and 2.2;

(f) To cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may be defective or inconsistent with any other provisions contained herein or in any supplemental indenture, or to make such other provision in regard to matters or questions arising under this Indenture or any supplemental indenture; provided, however, that such action shall not adversely affect the interest of the holders of Securities of any series in any material respect or, in the case of the Securities of a series issued to an Energy East Trust and for so long as any of the corresponding series of Preferred Securities issued by such Energy East Trust shall remain outstanding, the holders of such Preferred Securities;

(g) To mortgage or pledge to the Trustee as security for the Securities any property or assets which the Company may desire to mortgage or pledge as security for the Securities; and

(h) To qualify, or maintain the qualification of, the Indenture under the Trust Indenture Act.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, mortgage, pledge or assignment of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Securities at the time outstanding, notwithstanding any of the provisions of Section 10.2.

10.2 Modification Of Indenture With Consent Of Holders Of A Majority In Principal Amount Of Securities. With the consent (evidenced as provided in Section 8.1) of the holders of not less than a majority in principal amount of the Securities of all series at the time outstanding (determined as provided in Section 8.4) affected by such supplemental indenture (voting as one class), the Company, when authorized by a Resolution of the Company, and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall be in conformity with the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Securities of each such series; provided, however, that no such supplemental indenture shall (i) change the fixed Maturity of any Securities, or reduce the rate or extend the time of payment of any interest thereon or on any overdue principal amount or reduce the principal amount thereof, or change the provisions pursuant to which the rate of interest on any Security is determined if such change could reduce the rate of interest thereon, or reduce the minimum rate of interest thereon, or reduce any amount payable upon any redemption or the maturity thereof, or make the principal thereof or any interest thereon or on any overdue principal amount payable in any coin or currency other than that provided in the Security, or reduce the principal of an Original Issue Discount Security or any other Security which would be due and payable upon a declaration of acceleration of Maturity thereof pursuant to Section 6.1 without the consent of the holder of each Security so affected, (ii) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture without the consent of the holders of all Securities then outstanding, (iii) modify any of the provisions of this Section, Section 4.7 or Section 6.6, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the holders of all Securities then outstanding or (iv) modify the provisions of Article XIV with respect to the subordination of outstanding Securities of any series in a manner adverse to the holders thereof without the consent of the holder of each Security so affected; provided, however, that, in the case of the Securities of a series issued to an Energy East Trust, so long as any of the corresponding series of Preferred Securities issued by such Energy East Trust remains outstanding, (i) no such amendment shall be made that adversely affects the holders of such Preferred Securities in any material respect, and no termination of this Indenture shall occur, and no waiver of any Event of Default with respect to such series or compliance with any covenant with respect to such series under this Indenture shall be effective, without the prior consent of the holders of at least a majority of the aggregate liquidation amount of such Preferred Securities then outstanding unless and until the principal (and premium, if any) of the Securities of such series and all accrued and unpaid interest (including any Additional Interest) thereon have been paid in full; and (ii) no amendment shall be made to Section 6.5 of this Indenture that would impair the rights of the holders of such Preferred Securities provided therein or to this Indenture that requires the consent of each holder of the Securities of such series without the prior consent of each holder of such Preferred Securities then outstanding unless and until the principal (and premium, if any) of the Securities of such series and all accrued and unpaid interest (including any Additional Interest) thereon have been paid in full.

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities or Preferred Securities, or which modifies the rights of holders of Securities or holders of Preferred Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the holders of Securities or holders of Preferred Securities of any other series.

Upon the request of the Company, accompanied by a copy of a Resolution of the Company certified by the Corporate Secretary of the Company authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Securityholders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture.

It shall not be necessary for the consent of the Securityholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Company shall mail a notice to the holders of Securities of each series so affected, setting forth in general terms the substance of such supplemental indenture. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

10.3 Effect Of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant to the provisions of this Article, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

The Trustee shall be entitled to receive, and subject to the provisions of Section 7.1 shall be entitled to rely upon, an Opinion of Counsel as conclusive evidence that any such supplemental indenture complies with the provisions of this Article.

10.4 Securities May Bear Notation Of Changes By Supplemental Indentures. Securities authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article, or after any action taken at a Securityholders' meeting pursuant to Article IX, may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture or as to any action taken at any such meeting. If the Company or the Trustee shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Securities then outstanding.

10.5 Revocation And Effect Of Consents. Subject to Section 8.5, until an amendment, supplement, waiver or other action becomes effective, a consent to it by a Securityholder of a Security is a continuing consent conclusive and binding upon such Securityholder and every subsequent Securityholder of the same Security or portion thereof, and of any Security issued upon the registration of transfer thereof or in exchange therefor or in place thereof, even if notation of the consent is not made on any such Security.

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Securityholders entitled to consent to any amendment, supplement or waiver. If a record date is fixed, then, notwithstanding the preceding paragraph, those Persons who were Securityholders at such record date (or their duly designated proxies), and only such Persons, shall be entitled to consent or revoke such consent to such amendment, supplement or waiver, whether or not such Persons continue to be Securityholders after such record date. No such consent shall be valid or effective for more than 180 days after such record date.

After an amendment, supplement, waiver or other action becomes effective, it shall bind every Securityholder.

10.6 Conformity With Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act.

ARTICLE XI

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

11.1 Company May Consolidate, Etc., On Certain Terms. The Company covenants that it will not merge or consolidate with any other corporation or sell or convey all or substantially all of its assets to any Person unless (i) either the Company shall be the continuing corporation, or the successor corporation (if other than the Company) shall be a corporation organized and existing under the laws of the United States of America or any state or the District of Columbia and such corporation shall expressly assume the due and punctual payment of the principal of and interest on all the Securities, according to their tenor, and the due and punctual performance and observance of all of the covenants and conditions of this Indenture to be performed by the Company by supplemental indenture in form satisfactory to the Trustee, executed and delivered to the Trustee by such corporation, (ii) the Company or such successor corporation, as the case may be, shall not, immediately after such merger or consolidation, or such sale or conveyance, be in default in the performance of any such covenant or condition, and (iii) in the case of Securities of a series issued to an Energy East Trust, such consolidation, merger, sale or conveyance is permitted under the relevant Trust Agreement and Energy East Guarantee and does not give rise to any breach or violation of such Trust Agreement or Energy East Guarantee.

11.2 Successor Corporation Substituted. In case of any such consolidation, merger, sale or conveyance and upon any such assumption by the successor corporation, such successor corporation shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of the first part. Such successor corporation thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Securities issuable hereunder which theretofore shall not have been delivered to the Trustee; and upon the order of such successor corporation, instead of the Company, and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities which previously shall have been signed and delivered by the officers of the Company to the Trustee, and any Securities which such successor corporation thereafter shall cause to be signed and delivered to the Trustee. All the Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date of the execution hereof.

In case of any such consolidation, merger, sale or conveyance such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

11.3 Opinion Of Counsel To Trustee. The Trustee shall be entitled to receive, and subject to the provisions of Section 7.1 shall be entitled to rely upon, an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale or conveyance and any such assumption, complies with the provisions of this Article and that all conditions precedent herein provided for relating to such transaction have been complied with.

ARTICLE XII

SATISFACTION AND DISCHARGE OF INDENTURE, UNCLAIMED MONEYS

12.1 Satisfaction And Discharge Of Indenture. If (a) the Company shall deliver to the Trustee for cancellation all Securities of any series theretofore authenticated (other than any Securities of such series which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.7 and Securities for whose payment money has theretofore been deposited in trust by the Company and thereafter repaid to the Company, as provided in Section 12.4) and not theretofore canceled, or (b) all the Securities of such series not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee as trust funds the entire amount sufficient to pay at Maturity or upon redemption all of such Securities not theretofore canceled or delivered to the Trustee for cancellation, including principal and any interest due or to become due to such date of Maturity or redemption date, as the case may be, and if in either case the Company shall also pay or cause to be paid all other sums payable hereunder by the Company with respect to Securities of such series, then this Indenture shall cease to be of further effect with respect to Securities of such series, (except as to (i) remaining rights of registration of transfer, substitution and exchange and the Company's right of optional redemption of Securities of such series, (ii) rights hereunder of holders to receive payments of principal of, and any interest on, the Securities of such series, and other rights, duties and obligations of the holders of Securities of such series as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee, and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on demand of the Company, and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. The Company hereby agrees to compensate the Trustee for any services thereafter reasonably and properly rendered and to reimburse the Trustee for any costs or expenses theretofore and thereafter reasonably and properly incurred by the Trustee in connection with this Indenture or the Securities of such series.

Notwithstanding the satisfaction and discharge of this Indenture with respect to the Securities of any or all series, the obligations of the Company to the Trustee under Section 7.6 shall survive.

12.2 Application By The Trustee Of Funds Deposited For Payment Of Securities. Subject to Section 12.4, all moneys deposited with the Trustee pursuant to Section 12.1 shall be held in trust and applied by it to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent), to the holders of the particular Securities of such series, for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due thereon for principal and interest.

12.3 Repayment Of Moneys Held By Paying Agent. In connection with the satisfaction and discharge of this Indenture with respect to Securities of any series, all moneys with respect to Securities of such series then held by any Paying Agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.

12.4 Repayment Of Moneys Held By Trustee. Any moneys deposited with the Trustee or any Paying Agent for the payment of the principal of or any interest on any Securities of any series and not applied but remaining unclaimed by the holders of Securities of such series for two years after the date upon which such payment shall have become due and payable, shall, at the request of the Company, be repaid to the Company by the Trustee or by such Paying Agent; and the holder of any of the Securities of such series entitled to receive such payment shall thereafter look only to the Company for the payment thereof; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once a week for two successive weeks (in each case on any day of the week) in an Authorized Newspaper, or mailed to the registered holders thereof, a notice that said moneys have not been so applied and that after a date named therein any unclaimed balance of said money then remaining will be returned to the Company.

ARTICLE XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS,
DIRECTORS AND EMPLOYEES

13.1 Incorporators, Stockholders, Officers, Directors And Employees Of Company Exempt From Individual Liability. No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, stockholder, officer, director or employee, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers, directors or employees, as such, of the Company or any successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against every such incorporator, stockholder, officer, director or employee, as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or implied therefrom are hereby expressly waived and released as a condition of and as a consideration for, the execution of this Indenture and the issue of such Securities.

ARTICLE XIV

SUBORDINATION OF SECURITIES

14.1 Agreement To Subordinate. The Company, for itself, its successors and assigns, covenants and agrees, and each holder of a Security of any series likewise covenants and agrees by his acceptance thereof, that the obligation of the Company to make any payment on account of the principal of and interest on each and all of the Securities of any series shall be subordinate and junior in right of payment to the Company's obligations to the holders of Senior Indebtedness of the Company.

In the case of any insolvency, receivership, conservatorship, reorganization, readjustment of debt, marshaling of assets and liabilities or similar proceedings or any liquidation or winding-up of or relating to the Company as a whole, whether voluntary or involuntary, all obligations of the Company to holders of Senior Indebtedness of the Company shall be entitled to be paid in full before any payment shall be made on account of the principal of or interest on any of the Securities. In the event of any such proceeding, after payment in full of all sums owing with respect to Senior Indebtedness of the Company, the holders of the Securities of each series, together with the holders of any obligations of the Company ranking on a parity with the Securities, shall be entitled to be paid from the remaining assets of the Company the amounts at the time due and owing on account of unpaid principal of and interest on the Securities of any series before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any capital stock or any obligations of the Company ranking junior to the Securities. In addition, in the event of any such proceeding, if any payment or distribution of assets of the Company of any kind or character whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of the Securities of any series shall be received by the Trustee or the holders of the Securities of any series before all Senior Indebtedness of the Company is paid in full, such payment or distribution shall, except as provided in Section 14.4, be held in trust for the benefit of and shall be paid over to the holders of such Senior Indebtedness of the Company or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness of the Company may have been issued, ratably, for application to the payment of all Senior Indebtedness of the Company remaining unpaid until all such Senior Indebtedness of the Company shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness of the Company. The obligations of the Company in respect of the Securities of all series shall rank on a parity with any obligations of the Company ranking on a parity with the Securities. Nothing in this Article shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.6.

The subordination provisions of the foregoing paragraph and Section 14.9 shall not be applicable to amounts at the time due and owing on the Securities of any series on account of the unpaid principal of or interest on the Securities of such series for the payment of which funds have been deposited in trust with the Trustee or any Paying Agent or have been set aside by the Company in trust in accordance with the provisions of this Indenture; nor shall such provisions impair any rights, interests, or powers of any secured creditor of the Company in respect of any security the creation of which is not prohibited by the provisions of this Indenture.

The Company shall give written notice to the Trustee within 10 Business Days after the occurrence of (i) any insolvency, receivership, conservatorship, reorganization, readjustment of debt, marshaling of assets and liabilities or similar proceedings or any liquidation or winding-up of or relating to the Company as a whole, whether voluntary or involuntary, (ii) any Event of Default described in 6.1(d) or 6.1(e), or (iii) any event specified in Section 14.9. The Trustee, subject to the provisions of Section 7.1, shall be entitled to assume that, and may act as if, no such event referred to in the preceding sentence has occurred unless a Responsible Officer of the Trustee assigned to the Trustee's corporate trust department has received at the principal office of the Trustee from the Company or any one or more holders of Senior Indebtedness of the Company or any trustee or representative therefor (who shall have been certified or otherwise established to the satisfaction of the Trustee to be such a holder or trustee or representative) written notice thereof. Upon any distribution of assets of the Company referred to in this Article, the Trustee and holders of the Securities of each series shall be entitled to rely upon any order or decree of a court of competent jurisdiction in which proceedings relating to any event specified in the first sentence of this paragraph are pending for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon, and all other facts pertinent thereto or to this Article, and the Trustee, subject to the provisions of Article VII, and the holders of the Securities of each series shall be entitled to rely upon a certificate of the liquidating trustee or agent or other person making any distribution to the Trustee or to the holders of the Securities of each series for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article. In the absence of any such liquidating trustee, agent or other person, the Trustee shall be entitled to rely upon a written notice by a Person representing himself to be a holder of Senior Indebtedness of the Company (or a trustee or representative on behalf of such holder) as evidence that such Person is a holder of such Senior Indebtedness (or is such a trustee or representative). In the event that the Trustee determines, in good faith, that further evidence is required with respect to the right of any Person, as a holder of Senior Indebtedness of the Company, to participate in any payment or distribution pursuant to this Article, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior Indebtedness held by such Person, as to the extent to which such Person is entitled to participation in such payment or distribution, and as to other facts pertinent to the rights of such Person under this Article, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

14.2 Obligation Of The Company Unconditional. Nothing contained in this Article or elsewhere in this Indenture is intended to or shall impair, as between the Company and the holders of the Securities of each series, the obligation of the Company, which is absolute and unconditional, to pay to such holders the principal of and interest on such Securities of each series when, where and as the same shall become due and payable, all in accordance with the terms of such Securities, or is intended to or shall affect the relative rights of such holders and creditors of the Company other than the holders of the Senior Indebtedness of the Company, nor shall anything herein or therein prevent the Trustee or the holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article of the holders of Senior Indebtedness of the Company in respect of cash, property, or securities of the Company received upon the exercise of any such remedy.

14.3 Limitations On Duties To Holders Of Senior Indebtedness Of the Company. With respect to the holders of Senior Indebtedness of the Company, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article, and no implied covenants or obligations with respect to the holders of Senior Indebtedness of the Company shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Company, except with respect to moneys held in trust pursuant to the second paragraph of Section 14.1.

14.4 Notice To Trustee Of Facts Prohibiting Payment. Notwithstanding any of the provisions of this Article or any other provisions of this Indenture, the Trustee shall not at any time be charged with knowledge of the existence of any facts which would prohibit the making of any payment of moneys to or by the Trustee unless and until a Responsible Officer of the Trustee assigned to its corporate trust department shall have received at the principal office of the Trustee written notice thereof from the Company or from one or more holders of Senior Indebtedness of the Company or from any trustee therefor or representative thereof who shall have been certified by the Company or otherwise established to the reasonable satisfaction of the Trustee to be such a holder or trustee or representative; and, prior to the receipt of any such written notice, the Trustee, subject to the provisions of Section 7.1, shall be entitled in all respects to assume that no such facts exist; provided, however, that, if prior to the fifth Business Day preceding the date upon which by the terms hereof any such moneys may become payable for any purpose, or in the event of the execution of an instrument pursuant to Section 12.1 acknowledging satisfaction and discharge of this Indenture, then if prior to the second Business Day preceding the date of such execution, the Trustee shall not have received with respect to such moneys the notice provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys and/or apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such date; provided, however, no such application shall affect the obligations under this Article of the Persons receiving such moneys from the Trustee.

14.5 Application By Trustee Of Moneys Deposited With It. Anything in this Indenture to the contrary notwithstanding, any deposit of moneys by the Company with the Trustee or any agent (whether or not in trust) for any payment of the principal of or interest on any Securities shall, except as provided in Section 14.4, be subject to the provisions of Sections 14.1 and 14.9.

14.6 Subrogation. Subject to the payment in full of all Senior Indebtedness of the Company, the holders of the Securities of each series shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments or distributions of assets of the Company applicable to such Senior Indebtedness until the Securities shall be paid in full, and none of the payments or distributions to the holders of such Senior Indebtedness to which the holders of the Securities of any series or the Trustee would be entitled except for the provisions of this Article or of payments over pursuant to the provisions of this Article to the holders of such Senior Indebtedness by the holders of such Securities or the Trustee shall, as among the Company, its creditors other than the holders of such Senior Indebtedness, and the holders of such Securities, be deemed to be a payment by the Company to or on account of such Senior Indebtedness; it being understood that the provisions of this Article are and are intended solely for the purpose of defining the relative rights of the holders of such Securities, on the one hand, and the holders of the Senior Indebtedness of the Company, on the other hand.

14.7 Subordination Rights Not Impaired By Acts Or Omissions Of Company Or Holders Of Senior Indebtedness Of The Company. No right of any present or future holders of any Senior Indebtedness of the Company to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof with which any such holder may have or be otherwise charged. The holders of Senior Indebtedness of the Company may, at any time or from time to time and in their absolute discretion, change the manner, place or terms of payment, change or extend the time of payment of, or renew or alter, any such Senior Indebtedness of the Company, or amend or supplement any instrument pursuant to which any such Senior Indebtedness of the Company is issued or by which it may be secured, or release any security therefor, or exercise or refrain from exercising any other of their rights under the Senior Indebtedness of the Company including, without limitation, the waiver of default thereunder, all without notice to or assent from the holders of the Securities of each series or the Trustee and without affecting the obligations of the Company, the Trustee or the holders of such Securities under this Article.

14.8 Authorization Of Trustee To Effectuate Subordination Of Securities. Each holder of a Security of any series, by his acceptance thereof, authorizes and expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate, as between the holders of such Securities and the holders of Senior Indebtedness of the Company, the subordination provided in this Article. If, in the event of any proceeding or other action relating to the Company referred to in the second paragraph of Section 14.1, a proper claim or proof of debt in the form required in such proceeding or action is not filed by or on behalf of the holders of the Securities of any series prior to fifteen days before the expiration of the time to file such claim or claims, then the holder or holders of Senior Indebtedness of the Company shall have the right to file and are hereby authorized to file an appropriate claim for and on behalf of the holders of such Securities.

14.9 No Payment When Senior Indebtedness In Default. In the event and during the continuation of any default in the payment of principal of or interest on any Senior Indebtedness, or in the event that any event of default with respect to any Senior Indebtedness shall have occurred and be continuing and shall have resulted in such Senior Indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable, unless and until such event of default shall have been cured, waived or remedied or shall have ceased to exist and such acceleration shall have been rescinded or annulled or all amounts due on such Senior Indebtedness are paid in full in cash or other permitted consideration, or in the event any judicial proceeding shall be pending with respect to any such default in payment or such event or default (unless and until all amounts due on such Senior Indebtedness are paid in full in cash or other permitted consideration), then no payment or distribution of any kind or character, whether in cash, properties or securities shall be made by the Company on account of principal of (or premium, if any) or interest (including any Additional Interest) if any, on the Securities or on account of the purchase or other acquisition of Securities by the Company or any Subsidiary.

In the event that, notwithstanding the foregoing, the Company shall make any payment to the Trustee or the holder of any Security prohibited by the foregoing provisions of this Section, and, except as provided in Section 14.4, if such fact shall, at or prior to the time of such payment, have been made known to the Trustee or, as the case may be, such holder, then and in such event payment shall be paid over and delivered forthwith to the Company.

14.10 Right Of Trustee To Hold Senior Indebtedness Of The Company. The Trustee shall be entitled to all of the rights set forth in this Article in respect of any Senior Indebtedness of the Company at any time held by it in its individual capacity to the same extent as any other holder of such Senior Indebtedness, and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder.

14.11 Article Fourteen Not To Prevent Defaults. The failure of the Company to make a payment pursuant to the terms of Securities of any series by reason of any provision in this Article shall not be construed as preventing the occurrence of an Event of Default under this Indenture.

ARTICLE XV

MISCELLANEOUS PROVISIONS

15.1 Successors And Assigns Of Company Bound By Indenture. All the covenants, stipulations, promises and agreements in this Indenture contained by or in behalf of the Company shall bind its successors and assigns, whether so expressed or not.

15.2 Acts Of Board, Committee Or Officer Of Successor Corporation Valid. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer or officers of the Company shall and may be done and performed with like force and effect by the like board, committee or officer or officers of any corporation that shall at the time be the lawful sole successor of the Company.

15.3 Required Notices Or Demands May Be Served By Mail. Any notice or demand which by any provisions of this Indenture is required or permitted to be given or served by the Trustee, by the holders of Securities or by the holders of Preferred Securities to or on the Company may be given or served by registered mail postage prepaid addressed (until another address is filed by the Company with the Trustee for such purpose), as follows: Energy East Corporation, P.O. Box 12904, Albany, New York 12212-2904, Attention: Treasurer. Any notice, direction, request, demand, consent or waiver by the Company, by any Securityholder or by any holder of a Preferred Security to or upon the Trustee shall be deemed to have been sufficiently given, made or filed, for all purposes, if given, made or filed in writing at the principal corporate trust office of the Trustee, 450 West 33rd Street, New York, New York 10001, Attention: Institutional Trust Services.

15.4 Officers' Certificate And Opinion Of Counsel To Be Furnished Upon Applications Or Demands By The Company. Except as otherwise expressly provided in this Indenture, upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents or any of them is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture, other than certificates provided pursuant to Section 4.6, shall include (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

Any certificate, statement or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any certificate, statement or opinion of counsel may be based, insofar as it relates to factual matters, upon the certificate, statement or opinion of or representations by an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows that the certificate, statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous.

Any certificate, statement or opinion of an officer of the Company or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants, unless such officer or counsel, as the case may be, knows that the certificate or opinion or representations with respect to the accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that such firm is independent.

15.5 Payments Due On Saturday, Sundays, And Holidays. In any case where the date of payment of interest on or principal of the Securities of any series or the date fixed for any redemption of any Security of any series shall not be a Business Day, then payment of interest or principal need not be made on such date, but shall be made on the next succeeding Business Day with the same force and effect as if made on the date fixed for the payment of interest on or principal of the Security or the date fixed for any redemption of any Security of such series, and no additional interest shall accrue for the period after such date and before payment; except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on such payment date or redemption date.

15.6 Provisions Required By Trust Indenture Act To Control. If and to the extent that any provision of this Indenture limits, qualifies or conflicts with another provision included in this Indenture which is required to be included in this Indenture by any of Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of Section 318 thereof, such required provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

15.7 Indenture And Securities To Be Construed In Accordance With The Laws Of The State Of New York. This Indenture and each Security shall be governed by the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State (without regard to conflicts of laws principles thereof).

15.8 Provisions Of The Indenture And Securities For The Sole Benefit Of The Parties And The Securityholders. Nothing in this Indenture or in the Securities, expressed or implied, shall give or be construed to give any person, firm or corporation, other than the parties hereto, their successors and assigns, the holders of the Securities, and the holders of any Senior Indebtedness of the Company, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition and provision herein contained; all its covenants, conditions and provisions being for the sole benefit of the parties hereto and their successors and assigns and of the holders of the Securities and, to the extent expressly provided in Sections 4.9, 6.1, 6.5, 6.6, 9.7, 10.1 and 10.2, the holders of Preferred Securities.

15.9 Indenture May Be Executed In Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

15.10 Securities In Foreign Currencies. Whenever this Indenture provides for any action by, or any distribution to, holders of Securities denominated in United States dollars and in any other currency, in the absence of any provision to the contrary in the form of Security of any particular series, the relative amount in respect of any Security denominated in a currency other than United States dollars shall be treated for any such action or distribution as that amount of United States dollars that could be obtained for such amount on such reasonable basis of exchange and as of such date as the Company may specify in a written notice to the Trustee.

15.11 Table Of Contents, Headings, Etc. The Table of Contents and the titles and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

The Chase Manhattan Bank, the party of the second part, hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions, hereinabove set forth.

IN WITNESS WHEREOF, ENERGY EAST CORPORATION, the party of the first part, has caused this Indenture to be signed and acknowledged by its Vice President and Treasurer, and THE CHASE MANHATTAN BANK, the party of the second part, has caused this Indenture to be signed and acknowledged by one of its Assistant Vice Presidents, all as of the day and year first written above.

ENERGY EAST CORPORATION

By:   /s/Robert D. Kump               
Name:  Robert D. Kump
Title:    Vice President and Treasurer

THE CHASE MANHATTAN BANK,
as trustee

By:  /s/Natalia Rodriguez              
Name:  Natalia Rodriguez
Title:    Assistant Vice President

EX-4.5

Exhibit 4-5

ENERGY EAST CORPORATION

Issuer

TO

THE CHASE MANHATTAN BANK

Trustee

___________________

First Supplemental Indenture

Dated as of July 24, 2001

___________________

8 1/4% Junior Subordinated Debt Securities

Due July 31, 2031

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

1.1 Definition of Terms 2

ARTICLE II

GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED
DEBT SECURITIES

2.1	Designation and Principal Amount	4
2.2	Stated Maturity	4
2.3	Form and Payment, Minimum Transfer Restriction	4
2.4	Exchange and Registration of Transfer of Junior Subordinated Debt Securities; Restrictions on Transfers; Depositary	5
2.5	Interest	7
2.6	Direct Action	8
2.7	Subordination	8

ARTICLE III

REDEMPTION OF THE JUNIOR SUBORDINATED DEBT SECURITIES

3.1	Tax Event or Investment Company Event Redemption	8
3.2	Optional Redemption by Company	9
3.3	Notice of Redemption	9

ARTICLE IV

EXTENSION OF INTEREST PAYMENT PERIOD

4.1	Extension of Interest Payment Period	9
4.2	Notice of Extension	10

ARTICLE V

EXPENSES

5.1	Payment of Expenses	10
5.2	Payment Upon Resignation or Removal	11

ARTICLE VI

FORM OF JUNIOR SUBORDINATED DEBT SECURITY

6.1 Form of Junior Subordinated Debt Security 11

ARTICLE VII

ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBT SECURITIES

7.1 Original Issue of Junior Subordinated Debt Securities 12

ARTICLE VIII

MISCELLANEOUS

8.1	Ratification of Base Indenture; First Supplemental Indenture Controls	12
8.2	Trustee Not Responsible for Recitals	12
8.3	Governing Law	12
8.4	Separability	13
8.5	Counterparts	13

FIRST SUPPLEMENTAL INDENTURE

THIS FIRST SUPPLEMENTAL INDENTURE, dated as of July 24, 2001 (the "First Supplemental Indenture"), is between ENERGY EAST CORPORATION, a New York corporation (the "Company"), and THE CHASE MANHATTAN BANK, as trustee (the "Trustee") under the Indenture, dated as of July 24, 2001, between the Company and the Trustee, (the "Base Indenture," and as supplemented by this First Supplemental Indenture, the "Indenture").

WHEREAS, the Company executed and delivered the Base Indenture to the Trustee to provide for the future issuance of the Company's unsecured junior subordinated debt securities (the "Debt Securities") to be issued from time to time in one or more series as might be determined by the Company under the Indenture, in an unlimited aggregate principal amount which may be authenticated and delivered as provided in the Base Indenture;

WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment of a series of its Debt Securities, to be known as its 8 1/4% Junior Subordinated Debt Securities due July 31, 2031 (the "Junior Subordinated Debt Securities"), the form and substance of such Junior Subordinated Debt Securities and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this First Supplemental Indenture;

WHEREAS, Energy East Capital Trust I, a Delaware statutory business trust (the "Trust"), has offered to the underwriters (the "Underwriters") named in Schedule A to the Underwriting Agreement, dated July 17, 2001 (the "Underwriting Agreement"), among the Underwriters, the Trust and the Company $300,000,000 aggregate liquidation amount of its 8 1/4% Capital Securities (plus up to an additional aggregate liquidation amount of $45,000,000 in the event of an issuance of additional Capital Securities to cover over-allotments, if any) (the "Capital Securities"), representing undivided beneficial interests in the assets of the Trust and proposes to invest the proceeds from the sale of the Capital Securities, together with the proceeds of the sale by the Trust to the Company of $9,278,350 aggregate liquidation amount of its Common Securities (plus up to an additional aggregate liquidation amount of $1,391,750 to meet the capital requirements of the Trust in the event of an issuance of additional Capital Securities to cover over-allotments, if any), in $309,278,350 aggregate principal amount of the Junior Subordinated Debt Securities (plus up to an additional principal amount of $46,391,750 in the event of an issuance of additional Capital Securities to cover over-allotments, if any); and

WHEREAS, the Company has requested that the Trustee execute and deliver this First Supplemental Indenture and all requirements necessary to make this First Supplemental Indenture a valid instrument in accordance with its terms, and to make the Junior Subordinated Debt Securities, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this First Supplemental Indenture has been duly authorized in all respects;

NOW, THEREFORE, in consideration of the purchase and acceptance of the Junior Subordinated Debt Securities by the Trust, and for the purpose of setting forth, as provided in the Base Indenture, the form and substance of the Junior Subordinated Debt Securities and the terms, provisions and conditions thereof, the Company covenants and agrees with the Trustee as follows:

ARTICLE I
DEFINITIONS

1.1 Definition of Terms. For all purposes of this First Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires:

(a) the terms not otherwise defined herein which are defined in the Base Indenture have the same meanings when used in this First Supplemental Indenture;

(b) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

(c) all other terms used herein which are defined in the Trust Indenture Act of 1939, as amended, whether directly or by reference therein, have the meanings assigned to them therein;

(d) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States of America, and, except as otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation; provided, that when two or more principles are so generally accepted, it shall mean that set of principles consistent with those in use by the Company;

(e) a reference to a Section or Article is to a Section or Article of this First Supplemental Indenture unless otherwise stated;

(f) the words "herein," "hereof" and "hereunder" and other words of similar import refer to this First Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision;

(g) headings are for convenience of reference only and do not affect interpretation;

(h) the term "Capital Securities" as used herein means "Preferred Securities" as such term is used in the Base Indenture and has the meaning specified in the third recital to this First Supplemental Indenture; and

(i) the following terms have the meanings given to them in the Trust Agreement (as defined herein): (i) Administrative Trustee, (ii) Business Day, (iii) Closing Date, (iv) Delaware Trustee, (v) Distributions, (vi) Property Trustee, and (vii) Common Security.

"Additional Interest" has the meaning specified in Section 2.5.

"Coupon Rate" has the meaning specified in Section 2.5(a).

"Debt Securities" has the meaning specified in the first recital to this First Supplemental Indenture.

"Definitive Debt Security Certificates" means Debt Securities issued in definitive, fully registered form.

"Extension Period" has the meaning specified in Section 4.1.

"Global Debt Security" has the meaning specified in Section 2.4(a).

"Interest Payment Date" has the meaning specified in Section 2.5(a).

"Investment Company Event" means the receipt by the Trust of an opinion of a nationally recognized independent counsel (an "Investment Company Act Opinion"), to the effect that, as a result of the occurrence of a change in law or regulation or a written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority (a "Change in 1940 Act Law"), there is more than an insubstantial risk that the Trust is or will be considered an "investment company" that is required to be registered under the Investment Company Act of 1940, as amended, which Change in 1940 Act Law becomes effective on or after the initial Closing Date.

"Junior Subordinated Debt Securities" has the meaning specified in the second recital to this First Supplemental Indenture.

"Liquidation Amount" means the stated amount of $25.00 per Capital Security.

"Optional Redemption Price" has the meaning specified in Section 3.2.

"Record Date" has the meaning specified in Section 2.5(a).

"Special Event Redemption Price" has the meaning specified in Section 3.1.

"Tax Event" means the receipt by the Company and the Trust of an opinion of independent tax counsel experienced in such matters ("Tax Event Opinion"), to the effect that, as a result of (a) any amendment to, change in or announced prospective change in the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or (b) any official administrative written decision, pronouncement or action, or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement, decision or action is announced on or after the initial Closing Date, there is more than an insubstantial risk that (i) the Trust is, or will be within 90 days of the date of such opinion, subject to the United States federal income tax with respect to income received or accrued on the Junior Subordinated Debt Securities, (ii) interest payable to the Trust by the Company on the Junior Subordinated Debt Securities is not, or within 90 days of the date of such opinion will not be, deductible, in whole or in part, by the Company for United States federal income tax purposes, or (iii) the Trust is, or will be within 90 days of the date of such opinion, subject to a material amount of other taxes, duties or other governmental charges.

"Trust" has the meaning specified in the third recital to this First Supplemental Indenture.

"Trust Agreement" means the Amended and Restated Trust Agreement of Energy East Capital Trust I dated as of July 24, 2001 among the Company, as Sponsor, The Chase Manhattan Bank, as Property Trustee, Chase Manhattan Bank USA, National Association, as Delaware Trustee, the Administrative Trustees named therein and the holders, from time to time, of undivided beneficial interests in the assets of the Trust.

"Trust Securities" means the Common Securities and the Capital Securities.

ARTICLE II
GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED
DEBT SECURITIES

2.1 Designation and Principal Amount. There is hereby authorized one series of Debt Securities, to be designated the "8 1/4% Junior Subordinated Debt Securities due July 31, 2031 in the initial aggregate principal amount of $309,278,350, (plus up to an additional principal amount of $46,391,750 in the event of an issuance of additional Capital Securities to cover over-allotments, if any) which amount shall be as set forth in any written orders of the Company for the authentication and delivery of Junior Subordinated Debt Securities pursuant to Section 2.1 of the Base Indenture and Section 7.1 hereof. Additional Junior Subordinated Debt Securities without limitation as to amount, and without the consent of the holders of the then Outstanding Junior Subordinated Debt Securities, may also be authenticated and delivered in the manner provided in Section 2.1 of the Base Indenture. Any such additional Junior Subordinated Debt Securities will have the same Stated Maturity and other terms as those initially issued.

2.2 Stated Maturity. The Stated Maturity of the Junior Subordinated Debt Securities is July 31, 2031.

2.3 Form and Payment; Minimum Transfer Restriction.

(a) The Junior Subordinated Debt Securities shall be issued to the Property Trustee in fully registered definitive form without coupons in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof. Principal and interest on the Junior Subordinated Debt Securities issued in definitive form will be payable, the transfer of such Junior Subordinated Debt Securities will be registrable and such Junior Subordinated Debt Securities will be exchangeable for Junior Subordinated Debt Securities bearing identical terms and provisions at the principal office of the Trustee; provided, however, that payment of interest may be made at the option of the Company (i) by check mailed to the address of the person entitled thereto at such address as shall appear in the Register or (ii) by transfer to an account maintained by the person entitled thereto as specified in the Register; provided that proper transfer instructions have been received by the paying agent by the Record Date. Notwithstanding the foregoing, so long as the registered holder of any Junior Subordinated Debt Securities is the Property Trustee, the payment of the principal of and interest (including Additional Interest and Additional Tax Sums, if any) on such Junior Subordinated Debt Securities held by the Property Trustee will be made at such place, or by wire transfer of immediately available funds to such account, as may be designated by the Property Trustee. The Register for the Junior Subordinated Debt Securities shall be kept at the principal office of the Trustee and the Trustee is hereby appointed registrar for the Junior Subordinated Debt Securities.

(b) The Junior Subordinated Debt Securities may be transferred or exchanged only in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof, and any attempted transfer, sale or other disposition of Junior Subordinated Debt Securities in a denomination of less than $25.00 shall be deemed to be void and of no legal effect whatsoever. Any such transferee shall be deemed not to be the holder of such Junior Subordinated Debt Securities for any purpose, including but not limited to the receipt of payments in respect of such Junior Subordinated Debt Securities and such transferee shall be deemed to have no interest whatsoever in such Junior Subordinated Debt Securities.

2.4 Exchange and Registration of Transfer of Junior Subordinated Debt Securities; Restrictions on Transfers; Depositary. If distributed to holders of Capital Securities pursuant to Section 8.2 of the Trust Agreement, the Junior Subordinated Debt Securities will be issued to such holders in the same form as the Capital Securities that such Junior Subordinated Debt Securities replace in accordance with the following procedures:

(a) So long as Junior Subordinated Debt Securities are eligible for book-entry settlement with the Depositary, or unless required by law, all Junior Subordinated Debt Securities that are so eligible will be represented by one or more Junior Subordinated Debt Securities in global form (a "Global Debt Security") registered in the name of the Depositary or the nominee of the Depositary. Except as provided in Section 2.4(c) below, beneficial owners of a Global Debt Security shall not be entitled to have Definitive Debt Security Certificates registered in their names, will not receive or be entitled to receive physical delivery of Definitive Debt Security Certificates and will not be registered holders of such Global Debt Securities.

(b) The transfer and exchange of beneficial interests in Global Debt Securities shall be effected through the Depositary in accordance with the Indenture and the procedures and standing instructions of the Depositary and the Trustee shall make appropriate endorsements to reflect increases or decreases in principal amounts of such Global Debt Securities.

(c) Notwithstanding any other provisions of the Indenture (other than the provisions set forth in this Section 2.4(c)), a Global Debt Security may not be exchanged in whole or in part for Junior Subordinated Debt Securities registered, and no transfer of a Global Debt Security may be registered, in the name of any person other than the Depositary or a nominee thereof unless (i) such Depositary (A) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Debt Security or (B) has ceased to be a clearing agency registered as such under the Exchange Act and no successor Depositary has been appointed by the Company within 90 days after its receipt of such notice or its becoming aware of such ineligibility, (ii) there shall have occurred and be continuing an Event of Default, or any event which after notice or lapse of time or both would be an Event of Default under the Indenture, with respect to such Debt Security, or (iii) the Company, in its sole discretion, instructs the Trustee to exchange such Global Debt Security for a Junior Subordinated Debt Security that is not a Global Debt Security (in which case such exchange shall be effected by the Trustee).

The Depositary shall be a clearing agency registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the Global Debt Securities. Initially, any Global Debt Securities shall be registered in the name of Cede & Co., as the nominee of the Depositary, and deposited with the Trustee as custodian for Cede & Co.

Definitive Junior Subordinated Debt Securities issued in exchange for all or a part of a Global Debt Security pursuant to this Section 2.4(c) shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such definitive Junior Subordinated Debt Securities to the person in whose names such definitive Junior Subordinated Debt Securities are so registered.

So long as Junior Subordinated Debt Securities are represented by one or more Global Debt Securities, (i) the registrar for the Junior Subordinated Debt Securities and the Trustee shall be entitled to deal with the clearing agency for all purposes of the Indenture relating to such Global Debt Securities as the sole holder of the Junior Subordinated Debt Securities evidenced by such Global Debt Securities and shall have no obligations to the holders of beneficial interests in such Global Debt Securities; and (ii) the rights of the holders of beneficial interests in such Global Debt Securities shall be exercised only through the clearing agency and shall be limited to those established by law and agreements between such holders and the clearing agency and/or the participants in the clearing agency.

At such time as all interests in a Global Debt Security have been paid, redeemed, exchanged, repurchased or canceled, such Global Debt Security shall be, upon receipt thereof, canceled by the Trustee in accordance with standing procedures and instructions of the Depositary. At any time prior to such cancellation, if any interest in a Global Debt Security is exchanged for definitive Junior Subordinated Debt Securities, redeemed by the Company pursuant to Article III or canceled, or transferred for part of a Global Debt Security, the principal amount of such Global Debt Security shall, in accordance with the standing procedures and instructions of the Depositary be reduced or increased, as the case may be, and an endorsement shall be made on such Global Debt Security by, or at the direction of, the Trustee to reflect such reduction or increase.

2.5 Interest.

(a) Each Junior Subordinated Debt Security will bear interest at the rate of 8 1/4% per annum (the "Coupon Rate") from July 24, 2001 until the principal thereof becomes due and payable, and will bear interest on any overdue principal at the Coupon Rate and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at the Coupon Rate ("Additional Interest"), compounded quarterly, payable (subject to the provisions of Article IV) quarterly in arrears on the 31^st day of January, July and October and the 30^th day of April of each year (each, an "Interest Payment Date"), commencing on October 31, 2001 to the Person in whose name such Junior Subordinated Debt Security is registered, subject to certain exceptions, at the close of business on the Record Date next preceding such Interest Payment Date. The "Record Date" for payment of interest will be the Business Day next preceding the Interest Payment Date, unless such Junior Subordinated Debt Security is registered to a holder other than the Property Trustee or a nominee of the Depositary, in which case the Record Date for payment of interest will be the fifteenth calendar day preceding the applicable Interest Payment Date, whether or not a Business Day. Until liquidation, if any, of the Trust, each Junior Subordinated Debt Security will be held in the name of the Property Trustee in trust for the benefit of the holders of the Trust Securities.

(b) The amount of interest payable for any period will be computed on the basis of a 360-day year of twelve 30-day months. In the event that any date on which interest is payable on the Junior Subordinated Debt Securities is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the next preceding day which is a Business Day, in each case with the same force and effect as if made on the date such payment was originally payable.

(c) The Company will also pay any Additional Tax Sums as additional distributions on the Junior Subordinated Debt Securities if the Trust is required to pay any additional taxes, duties or other governmental charges as a result of a Tax Event.

2.6 Direct Action. In addition to any right of Direct Action granted under Section 3.8(e) of the Trust Agreement to the holders of Capital Securities, if the Property Trustee fails to enforce its rights under the Trust Agreement or the Indenture to the fullest extent permitted by law and subject to the terms of the Trust Agreement and the Indenture, then a holder of Capital Securities may directly institute a proceeding against the Company to enforce the Property Trustee's rights under the Trust Agreement or the Indenture without first instituting a legal proceeding against the Property Trustee or any other person.

2.7 Subordination. The indebtedness evidenced by the Junior Subordinated Debt Securities shall be, to the extent and in the manner set forth in the Base Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior Indebtedness of the Company and the Junior Subordinated Debt Securities shall rank pari passu in right of payment with each other series of Debt Securities issued under the Indenture.

ARTICLE III
REDEMPTION OF THE JUNIOR SUBORDINATED DEBT SECURITIES

3.1 Tax Event or Investment Company Event Redemption. If a Tax Event or Investment Company Event (either a "Special Event") shall occur and be continuing, the Company may redeem the Junior Subordinated Debt Securities at any time within 90 days after the occurrence of that Special Event, in whole but not in part, at a redemption price (the "Special Event Redemption Price") equal to 100% of the principal amount of the Junior Subordinated Debt Securities plus accrued and unpaid interest thereon to but excluding the redemption date. The Special Event Redemption Price shall be paid prior to 2:00 p.m., New York City time, on the date of such redemption, provided that the Company shall deposit with the Trustee an amount sufficient to pay the Special Event Redemption Price by 11:00 a.m., New York City time, on the date such Special Event Redemption Price is to be paid.

3.2 Optional Redemption by Company. The Company shall have the option to redeem the Junior Subordinated Debt Securities at any time on or after July 24, 2006, in whole or in part, at a redemption price (the "Optional Redemption Price") equal to 100% of the principal amount of the Junior Subordinated Debt Securities to be redeemed plus accrued and unpaid interest thereon to but excluding the redemption date. The Optional Redemption Price shall be paid prior to 2:00 p.m., New York City time, on the date of such redemption, provided that the Company shall deposit with the Trustee an amount sufficient to pay the Optional Redemption Price by 11:00 a.m., New York City time, on the date such Optional Redemption Price is to be paid.

3.3 Notice of Redemption. Subject to Article III of the Base Indenture, notice of any redemption pursuant to this Article III will be mailed at least 20 days but not more than 60 days before the redemption date to each holder of Junior Subordinated Debt Securities to be redeemed at such holder's registered address. Unless the Company defaults in payment of the applicable redemption price, on and after the redemption date interest shall cease to accrue on such Junior Subordinated Debt Securities called for redemption.

ARTICLE IV
EXTENSION OF INTEREST PAYMENT PERIOD

4.1 Extension of Interest Payment Period. So long as no Event of Default under Section 6.1 of the Base Indenture has occurred and is continuing, the Company shall have the right, subject to the provisions of Section 2.10 of the Base Indenture, at any time during the term of the Junior Subordinated Debt Securities, from time to time to defer the payment of interest by extending the interest payment period of such Junior Subordinated Debt Securities for a period not exceeding 20 consecutive quarterly periods (an "Extension Period"), during which Extension Period the Company shall not have the right to make partial payments of interest. No Extension Period shall end on a date other than an Interest Payment Date or extend beyond the Stated Maturity of the Junior Subordinated Debt Securities. To the extent permitted by applicable law, interest, the payment of which has been deferred because of an Extension Period imposed pursuant to this Section 4.1, will bear Additional Interest compounded quarterly. At the end of the Extension Period, the Company shall pay all interest then accrued and unpaid on the Junior Subordinated Debt Securities, including any Additional Interest and Additional Tax Sums, if applicable, to the holders of the Junior Subordinated Debt Securities in whose names the Junior Subordinated Debt Securities are registered in the Register on the first Record Date preceding the end of the Extension Period. Before the termination of any Extension Period, the Company may further extend such Extension Period, provided that such period together with all such further extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Stated Maturity. At any time following the termination of any Extension Period and upon the payment of any accrued and unpaid Additional Interest and Additional Tax Sums, if applicable, then due, the Company may elect to begin a new Extension Period, subject to the foregoing requirements. No interest shall be due and payable during an Extension Period, except at the end thereof.

During any such Extension Period, the Company shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company's Capital Stock or (ii) make any payment of principal of or interest on or repay, repurchase or redeem any debt securities of the Company that rank on a parity with or junior to the Junior Subordinated Debt Securities or make any guarantee payments with respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company that by its terms ranks on a parity with or junior to the Junior Subordinated Debt Securities (other than (a) dividends or distributions in Common Stock, (b) any declaration of a dividend in connection with the implementation of a Rights Plan, the issuance of any Capital Stock of the Company under any Rights Plan or the redemption or repurchase of any rights distributed pursuant to a Rights Plan, (c) payments under any Energy East Guarantee, and (d) purchases of Common Stock related to the issuance of Common Stock or rights under the Company's dividend reinvestment plan, or under any of the Company's benefit plans for its directors, officers, employees, consultants or advisors).

4.2 Notice of Extension.

(a) If the Property Trustee is the only registered holder of the Junior Subordinated Debt Securities at the time the Company elects to begin or extend an Extension Period, the Company shall give written notice to the Property Trustee, the Administrative Trustees and the Trustee of its election to begin or extend any Extension Period at least five Business Days prior to the earlier of (i) the next succeeding date on which Distributions on the Capital Securities issued by the Trust would have been payable but for the election to begin or extend such Extension Period or (ii) subject to applicable principles of federal securities law, the date the Administrative Trustees are required to give notice to any securities exchange or other applicable self-regulatory organization or to holders of such Capital Securities of the record date or the date such Distributions are payable, but in any event not less than five Business Days prior to such record date. An Administrative Trustee shall give notice of the Company's election to begin or extend an Extension Period to the holders of such Capital Securities.

(b) If the Property Trustee is not the only holder of the Junior Subordinated Debt Securities at the time the Company elects to begin or extend an Extension Period, the Company shall give the holders of the Junior Subordinated Debt Securities, the Administrative Trustees and the Trustee written notice of its election to begin or extend such Extension Period at least 10 Business Days prior to the earlier of (i) the next succeeding Interest Payment Date or (ii) subject to applicable principles of federal securities law, the date the Company is required to give notice of the record or payment date of such interest payment to any applicable self-regulatory organization or to holders of the Junior Subordinated Debt Securities.

(c) The quarterly period in which any notice is given pursuant to paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the 20 consecutive quarterly periods permitted in the maximum Extension Period permitted under Section 4.1 herein.

ARTICLE V
EXPENSES

5.1 Payment of Expenses. In connection with the offering, sale and issuance of the Junior Subordinated Debt Securities to the Property Trustee and in connection with the offering, sale and issuance of the Trust Securities by the Trust, the Company, in its capacity as borrower with respect to the Junior Subordinated Debt Securities, shall:

(a) pay all costs and expenses relating to the offering, sale and issuance of the Junior Subordinated Debt Securities and the Trust Securities, including commissions to the Underwriters payable pursuant to the Underwriting Agreement and compensation of the Trustee under the Indenture in accordance with the provisions of Section 7.6 of the Base Indenture;

(b) pay all costs and expenses of the Trust (including, but not limited to, costs and expenses relating to the organization of the Trust, the fees and expenses of the Property Trustee and the Delaware Trustee, the costs and expenses relating to the operation of the Trust, including without limitation, costs and expenses of accountants, attorneys, statistical or bookkeeping services, expenses for printing and engraving and computing or accounting equipment, paying agent(s), registrar(s), transfer agent(s), duplicating, travel and telephone and other telecommunications expenses and costs and expenses incurred in connection with the acquisition, financing, and disposition of Trust assets);

(c) pay all costs and expenses related to the enforcement by the Property Trustee of the rights of the registered holders of the Capital Securities;

(d) be primarily liable for any indemnification obligations arising with respect to the Trust Agreement and the Underwriting Agreement; and

(e) pay any and all taxes and all liabilities, costs and expenses with respect to such taxes of the Trust (but not including withholding taxes imposed on holders of Capital Securities or Common Securities of the Trust).

5.2 Payment Upon Resignation or Removal. Upon termination of this Supplemental Indenture or the Base Indenture or the removal or resignation of the Trustee pursuant to Section 7.10 of the Base Indenture, the Company shall pay to the Trustee all amounts owed to it under Section 7.6 of the Base Indenture accrued to the date of such termination, removal or resignation. Upon termination of the Trust Agreement or the removal or resignation of the Delaware Trustee or the Property Trustee, as the case may be, pursuant to Section 6.6 of the Trust Agreement, the Company shall pay to the Delaware Trustee or the Property Trustee, as the case may be, and their respective counsel, all amounts owed to them under Section 4.2 of the Trust Agreement accrued to the date of such termination, removal or resignation.

ARTICLE VI
FORM OF JUNIOR SUBORDINATED DEBT SECURITY

6.1 Form of Junior Subordinated Debt Security. The Junior Subordinated Debt Securities and the Trustee's Certificate of Authentication to be endorsed thereon are to be substantially in the form attached hereto as Exhibit A.

ARTICLE VII
ORIGINAL ISSUE OF JUNIOR SUBORDINATED DEBT SECURITIES

7.1 Original Issue of Junior Subordinated Debt Securities. Junior Subordinated Debt Securities in the initial aggregate principal amount of up to $309,278,350 (plus up to an additional principal amount of $46,391,750 in the event of an issuance of additional Capital Securities to cover over-allotments, if any) may be executed by the Company and delivered to the Trustee for authentication by it, and the Trustee shall thereupon authenticate and deliver said Junior Subordinated Debt Securities to or upon the written order of the Company, signed by its Chairman, the Chief Executive Officer, the President or any Vice President (whether or not designated by a number or word or words added before or after the title Vice President) and by its Treasurer, Controller or its Corporate Secretary without any further corporate action by the Company. Additional Junior Subordinated Debt Securities without limitation as to amount, and without the consent of the holders of the then outstanding Junior Subordinated Debt Securities, may also be authenticated and delivered in the manner provided in Section 2.1 of the Base Indenture. Any such additional Junior Subordinated Debt Securities will have the same Stated Maturity and other terms as those initially issued.

ARTICLE VIII
MISCELLANEOUS

8.1 Ratification of Base Indenture; First Supplemental Indenture Controls. The Base Indenture, as supplemented by this First Supplemental Indenture, is in all respects ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. The provisions of this First Supplemental Indenture shall supersede the provisions of the Base Indenture to the extent the Base Indenture is inconsistent herewith.

8.2 Trustee Not Responsible for Recitals. The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this First Supplemental Indenture.

8.3 Governing Law. This First Supplemental Indenture and each Junior Subordinated Debt Security shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be governed by and construed in accordance with the laws of said State, without regard to the conflicts of law principles thereof.

8.4 Separability. In case any one or more of the provisions contained in this First Supplemental Indenture or in the Junior Subordinated Debt Securities shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this First Supplemental Indenture or of the Junior Subordinated Debt Securities, but this First Supplemental Indenture and the Junior Subordinated Debt Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

8.5 Counterparts. This First Supplemental Indenture may be executed in any number of counterparts each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the date first above written.

ENERGY EAST CORPORATION

By:  /s/ Robert D. Kump              
Name:  Robert D. Kump
Title:    Vice President and Treasurer

THE CHASE MANHATTAN BANK,
  as Trustee

By:  /s/ Natalia Rodriguez             
Name:  Natalia Rodriguez
Title:    Assistant Vice President

EXHIBIT A
(FORM OF FACE OF JUNIOR SUBORDINATED DEBT SECURITY)

[THIS DEBT SECURITY IS A GLOBAL DEBT SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS DEBT SECURITY IS EXCHANGEABLE FOR JUNIOR SUBORDINATED DEBT SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS DEBT SECURITY (OTHER THAN A TRANSFER OF THIS DEBT SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.]*

[UNLESS THIS DEBT SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY DEBT SECURITY ISSUED IS REGISTERED IN THE NAME OF [CEDE & CO.] OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO [CEDE & CO.], ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [CEDE & CO.], HAS AN INTEREST HEREIN.]*

THE DEBT SECURITIES EVIDENCED HEREBY WILL BE ISSUED, AND MAY BE TRANSFERRED, ONLY IN BLOCKS HAVING A PRINCIPAL AMOUNT OF NOT LESS THAN $25.00. ANY TRANSFER, SALE OR OTHER DISPOSITION OF SUCH DEBT SECURITIES IN A BLOCK HAVING A PRINCIPAL AMOUNT OF LESS THAN $25.00 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH DEBT SECURITIES FOR ANY PURPOSE, INCLUDING BUT NOT LIMITED TO THE RECEIPT OF PAYMENTS IN RESPECT OF SUCH DEBT SECURITIES, AND SUCH TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH DEBT SECURITIES.

                        
*Insert in Global Debt Securities

ENERGY EAST CORPORATION
==========================

[Up to]* $___________
8 1/4% JUNIOR SUBORDINATED

DEBT SECURITY DUE JULY 31, 2031

Dated: JULY 24, 2001

NUMBER  _______ [CUSIP NO:                                  ]

Registered Holder:

ENERGY EAST CORPORATION, a corporation duly organized and existing under the laws of the State of New York (herein referred to as the "Company," which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to the Registered Holder named above, the principal sum [of ____ Dollars]** [specified in the Schedule annexed hereto]*** on July 31, 2031 (the "Stated Maturity"), in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debt. The Company further promises to pay to the registered Holder hereof as hereinafter provided (a) interest on said principal sum (subject to deferral as set forth herein) at the rate per annum specified in the title of this debt security (the "Debt Security"), in like coin or currency, quarterly in arrears on the 31st day of each January, July and October and the 30^th day of each April (each an "Interest Payment Date") commencing October 31, 2001, from the Interest Payment Date next preceding the date hereof to which interest has been paid or duly provided for (unless (i) no interest has yet been paid or duly provided for on this Debt Security, in which case from July 24, 2001, or (ii) the date hereof is before an Interest Payment Date but after the related Record Date (as defined below), in which case from such following Interest Payment Date; provided, however, that if the Company shall default in payment of the interest due on such following Interest Payment Date, then from the next preceding Interest Payment Date to which interest has been paid or duly provided for), until the principal hereof is paid or duly provided for, plus (b) Additional Interest, as defined in the Indenture, to the extent permitted by applicable law, on any interest payment that is not made on the applicable Interest Payment Date, which shall accrue at the rate per annum specified in the title of this Debt Security, compounded quarterly.

                          
*Insert in Global Debt Securities and Junior Subordinated Debt Securities issued to the Property Trustee.
**Insert in Junior Subordinated Debt Securities other than Global Debt Securities and Junior Subordinated Debt Securities issued to the Property Trustee.
***Insert in Global Debt Securities and Junior Subordinated Debt Securities issued to the Property Trustee.

The interest so payable will, subject to certain exceptions provided in the Indenture hereinafter referred to, be paid to the person in whose name this Debt Security is registered at the close of business on the Record Date next preceding such Interest Payment Date. The Record Date shall be the Business Day next preceding the Interest Payment Date, unless this Debt Security is registered to a holder other than the Property Trustee or a nominee of The Depository Trust Company, in which case the Record Date will be the fifteenth calendar day preceding such Interest Payment Date whether or not a Business Day. This Debt Security may be presented for payment of principal and interest at the principal corporate trust office of The Chase Manhattan Bank, as paying agent for the Company, maintained for that purpose in the Borough of Manhattan, The City of New York; provided, however, that payment of interest may be made at the option of the Company (i) by check mailed to such address of the person entitled thereto as the address shall appear on the Register of the Debt Securities or (ii) by transfer to an account maintained by the Person entitled thereto as specified in the Register, provided that proper transfer instructions have been received by the paying agent by the Record Date. Interest on this Debt Security will be computed on the basis of a 360-day year of twelve 30-day months.

So long as no Event of Default has occurred and is continuing, the Company shall have the right, at any time during the term of this Debt Security, from time to time to defer the payment of interest by extending the interest payment period of this Debt Security for a period not exceeding 20 consecutive quarterly periods (an "Extension Period"), during which Extension Period the Company shall not have the right to make partial payments of interest. No Extension Period shall end on a date other than an Interest Payment Date or extend beyond the Stated Maturity of this Debt Security. To the extent permitted by applicable law, interest, the payment of which has been deferred because of an Extension Period, will bear Additional Interest compounded quarterly. At the end of the Extension Period, the Company shall pay all interest then accrued and unpaid on this Debt Security, including any Additional Interest and Additional Tax Sums, if applicable, to the Person in whose name this Debt Security is registered in the Register on the first Record Date preceding the end of the Extension Period. Before the termination of any Extension Period, the Company may further extend such Extension Period, provided that such period together with all such further extensions thereof shall not exceed 20 consecutive quarterly periods, or extend beyond the Stated Maturity. At any time following the termination of any Extension Period and upon the payment of any accrued and unpaid Additional Interest and Additional Tax Sums, if applicable, then due, the Company may elect to begin a new Extension Period, subject to the foregoing requirements. No interest shall be due and payable during an Extension Period, except at the end thereof.

During any such Extension Period, the Company shall not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company's Capital Stock or (ii) make any payment of principal of or interest on or repay, repurchase or redeem any debt securities of the Company that rank on a parity with or junior to this Debt Security or make any guarantee payments with respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company that by its terms ranks on a parity with or junior to this Debt Security (other than (a) dividends or distributions in Common Stock, (b) any declaration of a dividend in connection with the implementation of a Rights Plan, the issuance of any Capital Stock of the Company under any Rights Plan or the redemption or repurchase of any rights distributed pursuant to a Rights Plan, (c) payments under any Energy East Guarantee, and (d) purchases of Common Stock related to the issuance of Common Stock or rights under the Company's dividend reinvestment plan or under any of the Company's benefit plans for its directors, officers, employees, consultants or advisors).

If the Property Trustee is the only registered holder of the Debt Securities of this series at the time the Company elects to begin or extend an Extension Period, the Company shall give written notice to the Property Trustee, the Administrative Trustees and the Trustee of its election to begin or extend any Extension Period at least five Business Days prior to the earlier of (i) the next succeeding date on which Distributions on the Capital Securities issued by the Trust would have been payable but for the election to begin or extend such Extension Period or (ii) subject to applicable principles of federal securities law, the date the Administrative Trustees are required to give notice to any securities exchange or other applicable self-regulatory organization or to holders of such Capital Securities of the record date or the date such Distributions are payable, but in any event not less than five Business Days prior to such record date. An Administrative Trustee shall give notice of the Company's election to begin or extend an Extension Period to the holders of such Capital Securities.

If the Property Trustee is not the only holder of the Debt Securities of this series at the time the Company elects to begin or extend an Extension Period, the Company shall give the holders of the Debt Securities of this series, the Administrative Trustees and the Trustee written notice of its election to begin or extend such Extension Period at least 10 Business Days prior to the earlier of (i) the next succeeding Interest Payment Date or (ii) subject to applicable principles of federal securities law, the date the Company is required to give notice of the record or payment date of such interest payment to any applicable self-regulatory organization or to holders of the Debt Securities of this series.

The quarterly period in which any notice is given pursuant to the two preceding paragraphs shall be counted as one of the 20 consecutive quarterly periods permitted in the maximum Extension Period.

This Debt Security is issued pursuant to an Indenture, dated as of July 24, 2001, between the Company, as issuer, and The Chase Manhattan Bank, a New York banking corporation, as trustee, as supplemented by a First Supplemental Indenture dated as of July 24, 2001 (the "Indenture"). Reference is made to the Indenture for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders (the word "Holder" or "Holders" meaning the registered holder or registered holders) of the Debt Securities. Capitalized terms used herein but not defined herein shall have the respective meanings assigned thereto in the Indenture. By acceptance of this Debt Security, the Holder hereof agrees to be bound by the provisions of the Indenture.

The Debt Securities of this series shall have an initial aggregate principal amount of _________________________________ Dollars ($__________).

The Debt Securities evidenced by this Certificate may be transferred or exchanged only in minimum denominations of $25.00 and integral multiples of $25.00 in excess thereof, and any attempted transfer, sale or other disposition of Debt Securities in a denomination of less than $25.00 shall be deemed to be void and of no legal effect whatsoever.

The indebtedness of the Company evidenced by this Debt Security, including the principal hereof and interest hereon, is, to the extent and in the manner set forth in the Indenture, subordinate and junior in right of payment to the Company's obligations to Holders of Senior Indebtedness of the Company and each Holder of this Debt Security, by acceptance hereof, agrees to and shall be bound by such provisions of the Indenture and all other provisions of the Indenture.

This Debt Security shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trustee under the Indenture.

IN WITNESS WHEREOF, ENERGY EAST CORPORATION has caused this instrument to be signed, manually or in facsimile, by its Executive Vice President, General Counsel and Secretary and by its Vice President and Treasurer under the corporate seal of Energy East Corporation.

ENERGY EAST CORPORATION

[SEAL]

By:______________________________________
Name:  Robert D. Kump
Title:    Vice President and Treasurer

Attest:

______________________________________
Name:  Kenneth M. Jasinski
Title:    Executive Vice President, General Counsel
             and Secretary

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities, of the series designated herein, referred to in the within-mentioned Indenture.

THE CHASE MANHATTAN BANK, as Trustee

By: ______________________________________
Authorized Officer

REVERSE OF DEBT SECURITY

As provided in and subject to the provisions in the Indenture, the Company shall have the option to redeem the Debt Securities of this series at any time on or after July 24, 2006, in whole or in part, at the Optional Redemption Price. In addition, if a Special Event shall occur and be continuing, the Company may redeem the Debt Securities of this series at any time within 90 days after the occurrence of that Special Event, in whole but not in part, at the Special Event Redemption Price.

In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of all of the Debt Securities of this series may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture.

Any consent or waiver by the Holder of this Debt Security given as provided in the Indenture (unless effectively revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders of this Debt Security and of any Debt Security issued in exchange, registration of transfer, or otherwise in lieu hereof irrespective of whether any notation of such consent or waiver is made upon this Debt Security or such other Debt Securities. No reference herein to the Indenture and no provision of this Debt Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Debt Security, at the places, at the respective times, at the rate and in the coin or currency herein prescribed.

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Debt Security may be registered on the Register of the Debt Securities of this series upon surrender of this Debt Security for registration of transfer at the offices maintained by the Company or its agent for such purpose, duly endorsed by the Holder hereof or his attorney duly authorized in writing, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities registrar duly executed by the Holder hereof or his attorney duly authorized in writing, but without payment of any charge other than a sum sufficient to reimburse the Company for any tax or other governmental charge incident thereto. Upon any such registration of transfer, a new Debt Security or Debt Securities of authorized denomination or denominations for the same aggregate principal amount will be issued to the transferee in exchange herefor.

Prior to due presentment for registration of transfer of this Debt Security, the Company, the Trustee, and any agent of the Company or the Trustee may deem and treat the person in whose name this Debt Security shall be registered upon the Register of the Debt Securities of this series as the absolute owner of this Debt Security (whether or not this Debt Security shall be overdue and notwithstanding any notation of ownership or other writing hereon) for the purpose of receiving payment of or on account of the principal hereof and, subject to the provisions on the face hereof, interest due hereon and for all other purposes; and neither the Company nor the Trustee nor any such agent shall be affected by any notice to the contrary.

No recourse shall be had for the payment of the principal of or interest on this Debt Security, or for any claim based hereon or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any stockholder, officer, director or employee, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as a part of the consideration for the issue hereof, expressly waived and released.

The Company and, by acceptance of this Debt Security or a beneficial interest in this Debt Security, each holder hereof and any person acquiring a beneficial interest herein, agree that for United States federal, state and local tax purposes it is intended that this Debt Security constitute indebtedness.

This Debt Security shall be deemed to be a contract made under the laws of the State of New York (without regard to conflicts of laws principles thereof) and for all purposes shall be governed by, and construed in accordance with, the laws of said State.

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto _______________________________________________________________________.           (please insert Social Security or other identifying number of assignee)

_______________________________________________________________________.

_______________________________________________________________________.

_______________________________________________________________________.

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE

the within Debt Security and all rights thereunder, hereby irrevocably constituting and appointing

_______________________________________________________________________.

_______________________________________________________________________.

_______________________________________________________________________.

_______________________________________________________________________.

_______________________________________________________________________.

_______________________________________________________________________.

agent to transfer said Debt Security on the books of the Company, with full power of substitution in the premises.

Dated: ___________, 20__

            ____________________

NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

[FORM OF SCHEDULE FOR ENDORSEMENTS ON GLOBAL DEBT SECURITIES AND DEBT SECURITIES ISSUED TO THE PROPERTY TRUSTEE TO REFLECT CHANGES IN PRINCIPAL AMOUNT]*

The initial principal amount of this Debt Security is $ ____

Changes in Principal Amount of Global Debt Security and Debt Security issued to the
Property Trustee

Date Principal Amount by which this Debt Security is to be Decreased or Increased and the Reason for the Increase or Decrease Remaining Principal Amount of this Debt Security Signature of Authorized Officer of Trustee

* Insert Schedule in Global Debt Securities and Debt Securities issued to the Property Trustee.

EX-10.31

Exhibit 10-31

FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT

          This FIRST AMENDMENT to the EMPLOYMENT AGREEMENT, dated as of May 19, 2000 (the "Agreement"), by and between Energy East Corporation, a New York corporation ("Energy East") and Wesley W. von Schack (the "Executive") is dated as of August 1, 2001. Capitalized terms used and not defined herein shall have the meanings given to them in the Agreement.

          Energy East and the Executive desire to amend the Agreement as set forth below.

1. The Agreement is hereby amended by (i) substituting for the clause "NYSEG's Supplemental Executive Retirement Plan" wherever it appears in the Agreement the clause "the Company's Supplemental Executive Retirement Plan", and (ii) substituting for the clause "NYSEG's Long Term Executive Incentive Share Plan" wherever it appears in the Agreement the clause "the Company's Long Term Executive Incentive Share Plan."
2. The second sentence of the second paragraph of Section 5.2 of the Agreement is hereby amended to read in its entirety as follows:

Notwithstanding the foregoing sentence of this Section 5.2, and any provision of the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, if the Executive Retires from the Company subsequent to April 15, 2004, there shall instead be paid to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan) an amount that shall be determined by (i) giving the Executive, for purposes of that plan, service credit for 40 years of service, (ii) deeming the Executive to be a "Key Person" as defined in, and for all purposes under, that plan and (iii) deeming the Executive's "highest three consecutive years of earnings within the last five years of employment" for purposes of that plan to be equal to the Executive's Base Salary at the rate in effect at the time he Retires plus the average of the highest three consecutive incentive compensation awards earned by the Executive within the last five years of employment under the AEIP (as hereinafter defined), or any successor annual executive incentive compensation plan.

3. The first and second paragraphs of Section 9.1(C) of the Agreement are hereby amended to read in their entirety as follows:

The second paragraph of Section 5.2 hereof shall be inapplicable, and notwithstanding any provision of the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, the Company shall pay to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan) an amount that shall be determined by (i) deeming the Executive (a) to have 40 years of service credit, for purposes of that plan, (b) to be at least 60 years of age and (c) to be a "Key Person" as defined in, and for all purposes under, that plan and (ii) deeming the Executive's "highest three consecutive years of earnings within the last five years of employment" for purposes of that plan to be equal to the Executive's Base Salary as determined pursuant to Section 9.1(A)(i) hereof plus the average of the highest three consecutive incentive compensation awards earned by the Executive within the last five years of employment under the AEIP, or any successor annual executive incentive compensation plan, and such benefits shall be determined without regard to any amendment to the Company's Supplemental Executive Retirement Plan (or any successor plan) made subsequent to a Change-in-Control and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation of retirement benefits thereunder.

Notwithstanding any provision in the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, the benefits otherwise payable to the Executive pursuant to this Section 9.1(C) shall be paid to the Executive in a lump sum payment that is equal in amount to the present value (determined in accordance with the methodology used to calculate the "Actuarial Equivalent" pursuant to Section 6(C) of the Company's Supplemental Executive Retirement Plan (or any successor plan)) of such benefits and such payments shall be in lieu of payments to which the Executive otherwise would have been entitled under the Company's Supplemental Executive Retirement Plan (or any successor plan) and shall satisfy any obligations that the Company would otherwise have to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan). Such lump sum payment shall be paid to the Executive no later than the due date of the first payment that is or would be due to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor Plan) assuming that the Executive were entitled to receive payments thereunder.

4. Section 19(F) of the Agreement is hereby amended to read in its entirety as follows:

          (F)  A "Change-in-Control" shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs (i), (ii), (iii) or (iv) shall have been satisfied during the Term:

(i)     an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (l) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (4) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or

(ii)     a change in the composition of the Board such that the individuals who, as of August 1, 2001, constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 19(F), that any individual who becomes a member of the Board subsequent to August 1, 2001, whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least two-thirds of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board, but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or

(iii)     consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company ("Corporate Transaction"); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or any entity controlled by the Company or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of the Company resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

(iv)     the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

5. Subparagraph (III) of Section 19(O) of the Agreement is hereby amended to read in its entirety as follows:

          (III)  requiring the Executive to be based anywhere that is not within a 50-mile radius of his current residence (1035 Fifth Avenue, New York, New York 10028), except for required travel on the Company's business to an extent substantially consistent with the Executive's present business travel obligations;

6. Section 19(U) of the Agreement is hereby amended to read in its entirety "Intentionally Left Blank".
7. The Agreement is in all other aspects ratified and confirmed without amendment.

          IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above written.

ENERGY EAST CORPORATION


By:   /s/ Kenneth M. Jasinski                
      Kenneth M. Jasinski
      Executive Vice President,
      General Counsel and Secretary

EXECUTIVE


  /s/ Wesley W. von Schack                  
WESLEY W. von SCHACK

EX-10.32

Exhibit 10-32

FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT

          This FIRST AMENDMENT to the EMPLOYMENT AGREEMENT, dated as of May 19, 2000, (the "Agreement"), by and between Energy East Corporation, a New York corporation ("Energy East") and Kenneth M. Jasinski (the "Executive") is dated as of August 1, 2001. Capitalized terms used and not defined herein shall have the meanings given to them in the Agreement.

          Energy East and the Executive desire to amend the Agreement as set forth below.

1. The Agreement is hereby amended by (i) substituting for the clause "NYSEG's Supplemental Executive Retirement Plan" wherever it appears in the Agreement the clause "the Company's Supplemental Executive Retirement Plan", and (ii) substituting for the clause "NYSEG's Long Term Executive Incentive Share Plan" wherever it appears in the Agreement the clause "the Company's Long Term Executive Incentive Share Plan."
2. The first paragraph of Section 5.1 of the Agreement is hereby amended to read in its entirety as follows:

          5.1 Base Salary. The Company shall pay the Executive a base salary ("Base Salary") during the period of the Executive's employment hereunder, which shall be at an initial rate of Four Hundred Twenty-Five Thousand Dollars ($425,000.00) per annum. The Base Salary shall be paid in substantially equal bi-weekly installments, in arrears. The Base Salary may be discretionarily increased by the Board from time to time as the Board deems appropriate in its reasonable business judgment. The Base Salary in effect from time to time shall not be less than the Base Salary of any other Executive Vice President of the Company and shall not be decreased during the Term. During the period of the Executive's employment hereunder, the Board shall make an annual review of the Executive's compensation.

3. The second sentence of the second paragraph of Section 5.2 of the Agreement is hereby amended to read in its entirety as follows:

Notwithstanding the foregoing sentence of this Section 5.2, and any provision of the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, if the Executive Retires from the Company subsequent to October 15, 2008, there shall instead be paid to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan) an amount that shall be determined by (i) giving the Executive, for purposes of that plan, service credit for 40 years of service, (ii) deeming the Executive to be a "Key Person" as defined in, and for all purposes under, that plan and (iii) deeming the Executive's "highest three consecutive years of earnings within the last five years of employment" for purposes of that plan to be equal to the Executive's Base Salary at the rate in effect at the time he Retires plus the average of the highest three consecutive incentive compensation awards earned by the Executive within the last five years of employment under the AEIP (as hereinafter defined), or any successor annual executive incentive compensation plan.

4. The first and second paragraphs of Section 9.1(C) of the Agreement are hereby amended to read in their entirety as follows:

The second paragraph of Section 5.2 hereof shall be inapplicable, and notwithstanding any provision of the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, the Company shall pay to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan) an amount that shall be determined by (i) deeming the Executive (a) to have 40 years of service credit, for purposes of that plan, (b) to be at least 60 years of age and (c) to be a "Key Person" as defined in, and for all purposes under, that plan and (ii) deeming the Executive's "highest three consecutive years of earnings within the last five years of employment" for purposes of that plan to be equal to the Executive's Base Salary as determined pursuant to Section 9.1(A)(i) hereof plus the average of the highest three consecutive incentive compensation awards earned by the Executive within the last five years of employment under the AEIP, or any successor annual executive incentive compensation plan, and such benefits shall be determined without regard to any amendment to the Company's Supplemental Executive Retirement Plan (or any successor plan) made subsequent to a Change-in-Control and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation of retirement benefits thereunder; provided that the award earned by the Executive for 1998, if applicable, shall be divided by the number of full months that the Executive was employed in such year and multiplied by twelve and such annualized amount shall be used for purposes of determining such average.

Notwithstanding any provision in the Company's Supplemental Executive Retirement Plan (or any successor plan) that may be to the contrary, the benefits otherwise payable to the Executive pursuant to this Section 9.1(C) shall be paid to the Executive in a lump sum payment that is equal in amount to the present value (determined in accordance with the methodology used to calculate the "Actuarial Equivalent" pursuant to Section 6(C) of the Company's Supplemental Executive Retirement Plan (or any successor plan)) of such benefits and such payments shall be in lieu of payments to which the Executive otherwise would have been entitled under the Company's Supplemental Executive Retirement Plan (or any successor plan) and shall satisfy any obligations that the Company would otherwise have to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor plan). Such lump sum payment shall be paid to the Executive no later than the due date of the first payment that is or would be due to the Executive under the Company's Supplemental Executive Retirement Plan (or any successor Plan) assuming that the Executive were entitled to receive payments thereunder.

5. Section 19(F) of the Agreement is hereby amended to read in its entirety as follows:

          (F)  A "Change-in-Control" shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs (i), (ii), (iii) or (iv) shall have been satisfied during the Term:

(i)     an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (l) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (4) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or

(ii)     a change in the composition of the Board such that the individuals who, as of August1, 2001, constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 19(F), that any individual who becomes a member of the Board subsequent to August 1, 2001, whose election, or nomination for election by the Company's shareholders, was approved by a vote of at least two-thirds of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board, but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or

(iii)     consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company ("Corporate Transaction"); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or any entity controlled by the Company or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of the Company resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

(iv)     the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

6. Subparagraph (III) of Section 19(O) of the Agreement is hereby amended to read in its entirety as follows:

          (III)  requiring the Executive to be based anywhere that is not within a 50-mile radius of his current address (145 Corlies Avenue, Pelham, New York 10803), except for required travel on the Company's business to an extent substantially consistent with the Executive's present business travel obligations;

7. Section 19(S) of the Agreement is hereby amended to read in its entirety "Intentionally Left Blank".
8. The Agreement is in all other aspects ratified and confirmed without amendment.

          IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first above written.

ENERGY EAST CORPORATION


By:   /s/ Wesley W. von Schack               
      Wesley W. von Schack
      Chairman, President and
      Chief Executive Officer

EXECUTIVE


  /s/ Kenneth M. Jasinski                      
KENNETH M. JASINSKI

EX-10.33

Exhibit 10-33

ENERGY EAST CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective August 1, 2001

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

1. Establishment of the Plan and Effective Date. Energy East Corporation (hereinafter called the "Corporation") hereby establishes a Supplemental Executive Retirement Plan (hereinafter called the "Plan"). The Corporation is the Plan Sponsor.
        The Corporation is the common parent of an "affiliated group", within the meaning of Section 1504 of the Internal Revenue Code of 1986, as amended (hereinafter that affiliated group is called the "EEC Group"). The Corporation is one of the members of the EEC Group.
        The purpose of the Plan is to increase retirement benefits for certain employees beyond those currently provided by the tax qualified pension plan adopted or sponsored by the Corporation. The Plan is effective as of August 1, 2001 and will continue in effect unless terminated or modified by the Corporation.

2. Plan Administrator. The Plan Administrator is the Corporation.

3. Plan Year. The Plan Year shall be the calendar year (beginning January 1 and ending December 31).

4. Year of Service. A Year of Service shall be credited for each twelve consecutive month period of employment with the EEC Group. A partial Year of Service shall be credited for each period of employment with the EEC Group of less than twelve consecutive months.

5. Provisions Applicable to All Salaried Employees Concerning Pension Benefits. Key Persons, as defined in Paragraph 6D, who terminate employment with the EEC Group prior to becoming eligible for the benefit provided by Paragraph 6 of this Plan, shall receive the amount of benefits specified under the tax qualified defined benefit pension plan adopted or sponsored by the member of the EEC Group in which the Key Person is a participant, without regard to any limitations imposed on these pension benefits by any provision of the Internal Revenue Code of 1986, as amended, and the regulations thereunder, whether now existing or as may hereafter be adopted. For purposes of determining the benefit provided by this Paragraph 5, the Key Person's tax qualified pension plan shall be determined by defining earnings as base pay, plus any Annual Incentive Awards paid to the Key Person in the applicable year. The benefit payable pursuant to this Paragraph 5 shall be calculated by subtracting any amounts payable to the Key Person from any tax qualified defined benefit pension plan adopted or sponsored by the member of the EEC Group in which the Key Person is a participant. In addition, any benefits provided pursuant to the terms of this Paragraph 5 shall be determined by applying the same reduction in benefits for commencement prior to age 65 as is applied under the defined benefit pension plan adopted or sponsored by the member of the EEC Group in which the Key Person is a participant. Payment of the benefit provided by this Paragraph 5 shall be made in the same form as elected by the Key Person under the tax qualified defined benefit pension plan adopted or sponsored by the member of the EEC Group in which the Key Person is a participant. Key Persons shall be entitled to receive the benefit described in Paragraph 5 as long as the Participant has completed five full Years of Service with the EEC Group prior to termination of employment by the EEC Group.

6. Supplemental Pension Benefits.

A) Determination of Benefit. All Key Persons who retire from the EEC Group either voluntarily or by reason of a disability at age 55 or later with five full Years of Service with the EEC Group shall be entitled to receive a total retirement benefit equivalent to the percentage of the average of such Key Person's highest three consecutive years of earnings within the last five years of employment with the EEC Group that is determined as follows: the percentage benefit shall be (i) 3% for each full Year of Service with the EEC Group up to fifteen years of service; (ii) 1.2% for each additional full Year of Service with the EEC Group up to a maximum of 75% for forty or more years of service. In addition, for each partial Year of Service completed by the Key Person, the percentage benefit shall be prorated by multiplying the applicable percentage by a fraction, the numerator of which is equal to the number of months completed in the partial Year of Service, and the denominator of which is equal to twelve.
        For purposes of this Paragraph 6, earnings shall be defined as base pay, plus any Annual Incentive Awards paid to the Key Person in the applicable year.
        From the amount determined in accordance with the provisions of the above paragraph there shall be subtracted (i) any amounts received by the Key Person from any defined benefit pension plan adopted or sponsored by the EEC Group in which the Key Person participates, payable at age 65 (or actual age, if greater) as a straight life annuity and (ii) any Social Security benefits which the Key Person is eligible or expected to become eligible to receive as determined by the Plan Administrator. If after the subtraction there remains a positive amount, that amount shall be paid by the Corporation as an additional benefit to the Key Person in accordance with the terms of this Plan. The amount described in the preceding sentence shall be decreased by three percentage points for each year that a Key Person is less than 60 years of age on the date of the Key Person's commencement of benefit payments.
        For purposes of making the subtraction set forth in the immediately preceding paragraph, if (i) a Key Person retires at or after age 55 and prior to age 62, or (ii) benefits are payable to a Key Person upon and after a Change in Control prior to age 62 (as permitted by Paragraph 9), the amount of Social Security benefits subtracted will be the amount of estimated Social Security benefits that the Plan Administrator estimates that the Key Person would have received if the Key Person had retired at age 62.

B) Survivor's Benefit. One-half of any amount being paid to a Key Person pursuant to Paragraph 6A hereof after retirement will be paid to the surviving spouse of the Key Person during the spouse's lifetime upon the death of the Key Person after retirement. If a Key Person dies prior to retirement and such Key Person would have been entitled to payments pursuant to Paragraph 6A hereof if, at the time of the Key Person's death, the Key Person had retired rather than died, the Key Person's spouse shall be paid during the spouse's lifetime the amount specified in the next sentence of this Paragraph 6B. Said amount shall be determined by applying the first sentence of this Paragraph 6B as if the Key Person had retired on the date of his death, rather than dying on such date, and survived long enough to receive the first payment due to the Key Person pursuant to Paragraph 6A hereof. In the event a Key Person receives a lump sum payment of his accrued benefit, pursuant to Paragraph 6C or 9, no additional survivor benefits shall be payable from the Plan. For the purposes of this Paragraph 6B, a Key Person's "spouse" shall mean the spouse who survives the Key Employee and to which the Key Person is legally married: (i) in the case of a Key Person who dies prior to retirement, on the date of the Key Person's death or (ii) in the case of a Key Person who dies after retirement, on each of the date of the Key Person's retirement and the date of the Key Person's death. No benefits are payable pursuant to this Paragraph 6B upon the death of a Key Person who is (x) unmarried or (y) no longer married to the spouse who was the Key Employee's spouse on the date of the Key Person's retirement.

C) Payment of Benefit. Except as otherwise provided herein, benefits payable under Paragraph 6A of this Plan shall be payable monthly to the Key Person.
        All benefits payable pursuant to Paragraphs 6A and 6B of this Plan will cease upon the death of the surviving spouse of the Key Person or, if there is no surviving spouse, upon the death of the Key Person. No rights shall accrue under this paragraph to (i) the estate of the Key Person, (ii) any beneficiary of the Key Person other than a surviving spouse or (iii) the estate of the surviving spouse.
        Except as specifically provided in the first three sentences of Paragraph 9 hereof or in the second and third sentences of Paragraph 6B hereof, no benefits will be paid to the Key Person or any surviving spouse pursuant to this plan if the Key Person dies prior to retirement from the EEC Group.
        The benefit payable to the Participant pursuant to the terms of Paragraph 6A of this Plan hereunder may be paid in a lump sum if (i) the Key Person files an election or an amended election in the form of Exhibit "B" attached hereto and made a part hereof at least twelve months and one day prior to the date on which benefits hereunder shall become payable to such Key Person; or (ii) an employee's request for a lump sum payment is approved by the Board of Directors of the Corporation. The lump sum benefit payable from the Plan to the Participant shall be the Actuarial Equivalent of the benefit payable under Paragraphs 6A and 6B, taking into account a maximum age differential between the Key Person and the Key Person's spouse of five years. The Actuarial Equivalent lump sum value of the benefit payable to the Key Person pursuant to this paragraph, shall be determined based upon the mortality table prescribed by the Treasury pursuant to Section 417(e) of the Code and the annual rate of interest on 30-year Treasury securities in effect as of the last day of the year preceding the year of distribution.

D) Definition of Key Person. For purposes of this Plan, the term "Key Person" means those employees of the Corporation or the EEC Group, as designated by the Executive Compensation Committee of the Board of Directors of the Corporation after recommendation of the Chairman of the Board of Directors of the Corporation, set forth on Exhibit "A" attached hereto and made a part hereof.

7. Other Provisions. The Corporation reserves the right to terminate or modify the Plan in whole or in part at any time by action of the Board of Directors of the Corporation. Any such termination or modification shall not affect rights previously accrued. Participation in the Plan shall not be deemed to be an employment contract. A participant's rights and benefits under the Plan may not be assigned, pledged, or encumbered by the participant, his estate or beneficiary. The Plan Administrator will make such decisions, rules and regulations as are necessary to administer the Plan and interpret the provisions of the Plan.

8. Funding. There will be no funding of any amounts to be paid pursuant to this Plan; provided, however, that the Corporation, in its discretion, may establish a trust to pay such amounts, which trust shall be subject to the claims of the Corporation's creditors in the event of the Corporation's bankruptcy or insolvency; and provided, further, that the Corporation shall remain responsible for the payment of any such amounts which are not so paid by any such trust.

9. Change in Control. Upon and after a Change in Control (as defined below), Key Persons whose employment is terminated from the Corporation for any reason other than death or Cause (as defined herein) shall be entitled to receive the retirement benefit described in Paragraph 6 as long as the Participant has completed five full Years of Service with the EEC Group as of the date of the Change in Control. Further, following the Key Person's termination of employment with the EEC Group, the vested benefit described in the preceding sentence may be immediately distributed to each Key Person in a lump sum which will be equal to the present value of such vested benefit payable at the greater of (i) age 55 or (ii) such Key Person's age on the date of termination. A Participant must make an election to receive a lump sum distribution of his benefit from the Plan following termination of employment after a Change in Control at the time the Participant's name is added to Appendix A, by filing an election or an amended election in the form of Exhibit "B" attached hereto and made a part hereof.
        A "Change in Control" shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs shall have been satisfied:

1. an acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (l) the then outstanding shares of common stock of the Corporation (the "Outstanding Company Common Stock") or (2) the combined voting power of the then outstanding voting securities of the Corporation entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); excluding, however, the following: (1) any acquisition directly from the Corporation, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Corporation, (2) any acquisition by the Corporation, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any entity controlled by the Corporation, or (4) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or
2. a change in the composition of the Board such that the individuals who, as of August 1, 2001, constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 11, that any individual who becomes a member of the Board subsequent to August 1, 2001, whose election, or nomination for election by the Corporation's shareholders, was approved by a vote of at least two-thirds of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board, but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or
3. consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Corporation ("Corporate Transaction"); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Corporation or all or substantially all of the Corporation's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (other than the Corporation, any employee benefit plan (or related trust) of the Corporation or any entity controlled by the Corporation or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of the Corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or
4. the approval by the stockholders of the Corporation of a complete liquidation or dissolution of the Corporation.

        For purposes of the definition of Change in Control in this Paragraph 9:

"Beneficial Owner" shall have the meaning defined in Rule 13d-3 under the Exchange Act.

"Board" shall mean the Board of Directors of the Corporation.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

"Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) (2) and 14(d) (2) thereof.

"Cause" for termination from the Corporation of a Key Person's employment (for purposes of this Plan), after any Change in Control, shall mean (i) the willful and continued failure by the Key Person to substantially perform the Key Person's duties with the Corporation (other than any such failure resulting from the Key Person's incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Key Person by the Board of the Corporation which demand specifically identifies the manner in which the Board of Directors of the Corporation believes that the Key Person has not substantially performed the Key Person's duties, or (ii) the willful engaging by the Key Person in conduct which is demonstrably and materially injurious to the Corporation, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, no act, or failure to act, on the Key Person's part shall be deemed "willful" unless done, or omitted to be done, by the Key Person not in good faith and without reasonable belief that the Key Person's act, or failure to act, was in the best interest of the Corporation.

10. Cessation of Participation. If, while in the active employment of the EEC Group, an employee of the EEC Group included in Appendix A ceases to be either an officer of Energy East or an employee of the EEC Group, such employee's participation in this Plan shall cease as of the date of the change in status. In the event an employee has not reached age 55 prior to the date of such change in status, no benefits will be payable from this Plan to the employee.

* * * * *

IN WITNESS WHEREOF OF THE ADOPTION OF THIS PLAN, Energy East Corporation has set its hand and seal to this plan as of the 1st day of August, 2001.

ENERGY EAST CORPORATION

By /s/ Kenneth M. Jasinski            
          Kenneth M. Jasinski
          Executive Vice President,
          General Counsel & Secretary

Attest /s/ Richard R. Benson               
                Richard R. Benson
                Vice President
                Human Resources

STATE OF NEW YORK     )

                                               ) SS.:

COUNTY OF                       )

        On this 13th day of August , in the year 2001, before me, the undersigned, personally appeared     Richard R. Benson                                               ,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

   /s/  Darlene E. Beach                      

          Notary Public

EXHIBIT "A"

Participating Employees

Robert Allessio

Richard R. Benson

Sara Burns

Kenneth M. Jasinski

Robert D. Kump

James P. Laurito

F. Michael McClain

Robert E. Rude

Angela M. Sparks

Ralph R. Tedesco

Wesley W. Von Schack

Denis E. Wickham

EXHIBIT "B"

Lump Sum Elections

ENERGY EAST CORPORATION

Supplemental Executive Retirement Plan

Initial Lump Sum Election Form

I, ___________________________, request that if I am entitled to a benefit under the Energy East Corporation Supplemental Executive Retirement Plan (the "SERP"), upon my retirement from the Corporation, that my benefit be paid to me in a lump sum as provided in Paragraph 6 of the SERP, as soon as administratively feasible to do so. I understand that this election must be filed with Energy East Corporation on or prior to twelve months and one day prior to the date on which I become eligible to receive benefits under the SERP.

______________________________

                Employee _____________________________

                Date

ENERGY EAST CORPORATION

Supplemental Executive Retirement Plan

Lump Sum Election Form - Change in Control

I, ___________________________, request that if I am entitled to a benefit under the Energy East Corporation Supplemental Executive Retirement Plan (the "SERP"), following a Change in Control (as defined herein), I, __do __do not request my benefit be paid to me in a lump sum as provided for in Paragraph 6 of the SERP. I understand that this election must be filed with Energy East Corporation at the time I become eligible for SERP benefits provided by Paragraph 6 (regardless as to whether I have satisfied the age and service eligibility requirements at that time.)

______________________________

                Employee _____________________________

                Date

ENERGY EAST CORPORATION

Supplemental Executive Retirement Plan

Change in Election

I , ___________________________, request that if I am entitled to a benefit under the Energy East Corporation Supplemental Executive Retirement Plan (the "SERP"), upon my retirement from the Corporation, that my benefit be paid to me:

_______ in a lump sum as provided in Paragraph 6 of the SERP, as soon as administratively feasible to do so.

________ in monthly installments as described in Paragraph 6 of the SERP.

I understand that this election must be filed with Energy East Corporation on or prior to twelve months and one day prior to the date on which I become eligible to receive benefits under the SERP.

This change in payment election is effective with respect to the SERP and replaces the election form on file with Energy East Corporation dated ________________________.

______________________________

                Employee _____________________________

                Date

Consented to: Energy East Corporation

______________________________

                Officer _____________________________

                Date

EX-10.34

Exhibit 10-34

ENERGY EAST MANAGEMENT CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective August 1, 2001

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

1. Establishment of the Plan and Effective Date. Energy East Management Corporation (hereinafter called the "Corporation") has established a Supplemental Executive Retirement Plan (hereinafter called the "Plan"). The Corporation is the Plan Sponsor.
           Energy East Corporation (hereinafter called "EEC") is the common parent of an "affiliated group", within the meaning of Section 1504 of the Internal Revenue Code of 1986, as amended (hereinafter that affiliated group is called the "EEC Group"). The Corporation is one of the members of the EEC Group.
           The purpose of the Plan is to increase retirement benefits for certain salaried employees of the Corporation beyond those currently provided for by the tax qualified pension plan adopted or sponsored by the Corporation in which the salaried employee participates. The Plan was established effective August 1, 2001 and will continue in effect unless terminated or modified by the Corporation.
2. Plan Administrator. The Plan Administrator is the Corporation.
3. Plan Year. The Plan Year shall be the calendar year (beginning on January 1 and ending on December 31.)
4. Year of Service. A Year of Service shall be credited for each twelve consecutive month period of employment with the Corporation. A partial Year of Service shall be credited for each period of employment with the Corporation of less than twelve consecutive months.
5. Pension Benefits for Designated "Exhibit A" Key Persons.

1. Determination of Benefit. Key Persons, as defined in Paragraph 5D, who retire from the Corporation either voluntarily or by reason of a disability at age 60 or later shall be entitled to receive a total retirement benefit equivalent to the percentage of the average of such Key Person's highest three years of earnings within the last ten years of employment with the EEC Group that is determined as follows: (i) the percentage benefit shall be 45% for each Key Person who has ten Years of Service with the EEC Group; (ii) the percentage amount shall be increased by one percentage point per year for each additional full Year of Service with the EEC Group up to a maximum of 75% for forty or more years of service. In addition, for each partial Year of Service completed by the Key Person, the percentage benefit shall be prorated by multiplying the applicable percentage by a fraction, the numerator of which is equal to the number of months completed in the partial Year of Service, and the denominator of which is equal to twelve.
           For purposes of this Paragraph 5, earnings shall be equal to the Key Person's "Basic Compensation" as defined under the tax qualified pension plan adopted or sponsored by the Corporation, excluding any amounts received pursuant to EEC's Annual Executive Incentive Plan or Long Term Executive Incentive Share Plan (or their respective predecessor plans, the Annual Executive Incentive Compensation Plan and the Performance Share Plan, or any successor or other incentive plan of EEC or the Corporation).
           From the amount determined in accordance with the provisions of this paragraph there shall be subtracted (i) any amounts received by the Key Person from any defined benefit pension plan adopted or sponsored by the EEC Group in which the Key Person participates, payable at age 60 (or actual age, if greater) as a straight life annuity and (ii) any Social Security benefits which the Key Person is eligible or expected to become eligible to receive as determined by the Plan Administrator. If after the subtraction there remains a positive amount, that amount shall be paid by the Corporation as an additional benefit to the Key Person in accordance with the terms of this Plan.
           For purposes of making the subtraction set forth in the immediately preceding paragraph, if (i) a Key Person retires at or after age 60 and prior to age 62, or (ii) a Key Person's employment is terminated, upon and after a Change in Control (as defined in Paragraph 9 hereof), for any reason other than death or Cause (as defined in Paragraph 9 hereof) at or after age 55 and prior to age 62, the amount of Social Security benefits subtracted will be the amount of estimated Social Security benefits that the Plan Administrator estimates that the Key Person would have received if he had retired at age 62.
2. Survivor's Benefit. One-half of any amount being paid to a Key Person pursuant to Paragraph 5A hereof after retirement will be paid to the surviving spouse of the Key Person during the spouse's lifetime upon the death of the Key Person after retirement. If a Key Person dies prior to retirement and such Key Person would have been entitled to payments pursuant to Paragraph 5A hereof if, at the time of his death, he had retired rather than died, his spouse shall be paid during her lifetime the amount specified in the next sentence of this Paragraph 5B. Said amount shall be determined by applying the first sentence of this Paragraph 5B as if the Key Person had retired on the date of his death, rather than dying on such date, and survived long enough to receive the first payment due to him pursuant to Paragraph 5A hereof. For the purposes of this Paragraph 5B, a Key Person's "spouse" shall mean the spouse who survives the Key Employee and to which the Key Person is legally married: (i) in the case of a Key Person who dies prior to retirement, on the date of the Key Person's death or (ii) in the case of a Key Person who dies after retirement, on each of the date of the Key Person's retirement and the date of the Key Person's death. No benefits are payable pursuant to this Paragraph 6B upon the death of a Key Person who is (x) unmarried or (y) no longer married to the spouse who was the Key Employee's spouse on the date of the Key Person's retirement.
3. Payment of Benefit. Benefits payable under Paragraph 5A of this Plan shall be payable monthly to the Key Person.
           All benefits payable pursuant to Paragraphs 5A and 5B of this Plan will cease upon the death of the surviving spouse of the Key Person or, if there is no surviving spouse, upon the death of the Key Person. No rights shall accrue under this paragraph to (i) the estate of the Key Person, (ii) any beneficiary of the Key Person other than a surviving spouse or (iii) the estate of the surviving spouse.
           Except as specifically provided in the last two sentences of Paragraph 5B hereof or in Paragraph 9, no benefits will be paid to the Key Person or any surviving spouse pursuant to this plan if the Key Person dies prior to retirement from the Corporation or the employment of the Key Person is terminated by the Corporation.
4. Definition of Key Person. For purposes of Paragraph 5, the term "Key Person" means each employee of the Corporation set forth on Exhibit "A" attached hereto and made a part hereof.

6. Pension Benefits for Designated "Exhibit B" Key Persons.

1. Determination of Benefit. A Key Person, as defined in Paragraph 6C, who retires from the Corporation either voluntarily or by reason of a disability at age 55 or later shall be entitled to receive a total retirement benefit equivalent to the benefit determined under the terms of the tax qualified pension plan adopted by the Corporation, in which the Key Person participates, taking into account all Years of Service and Basic Compensation for the Key Person's total period of employment with the EEC Group. From the amount determined in accordance with the provisions of this paragraph there shall be subtracted any amounts payable to the Key Person from a tax qualified defined benefit retirement plan sponsored by the EEC Group, payable at age 55 (or actual age, if greater) as a straight life annuity. If after the subtraction there remains a positive amount, that amount shall be paid by the Corporation as an additional benefit to the Key Person in accordance with the terms of this Plan.
2. Payment of Benefit. Benefits payable under this Paragraph 6 shall be made in the same form as elected by the Key Person under the tax-qualified pension sponsored by the Corporation.
3. Definition of Key Person. For purposes of benefits provided by this Paragraph 6, the term "Key Person" means each employee of the Corporation set forth on Exhibit "B" attached hereto and made a part hereof.

7. Other Provisions. The Corporation reserves the right to terminate or modify the Plan in whole or in part at any time by action of the Board of Directors of the Corporation. Any such termination or modification shall not affect rights previously accrued. Participation in the Plan shall not be deemed to be an employment contract. A participant's rights and benefits under the Plan may not be assigned, pledged, or encumbered by the participant, his estate or beneficiary. The Plan Administrator will make such decisions, rules and regulations as are necessary to administer the Plan and interpret the provisions of the Plan.
8. Funding. There will be no funding of any amounts to be paid pursuant to this Plan; provided, however, that the Corporation, in its discretion, may establish a trust to pay such amounts, which trust shall be subject to the claims of the Corporation's creditors in the event of the Corporation's bankruptcy or insolvency; and provided, further, that the Corporation shall remain responsible for the payment of any such amounts which are not so paid by any such trust.
9. Change in Control Provisions. Upon and after a Change in Control (as defined in Paragraph 9 hereof), Key Persons, defined in Paragraph 5D, whose employment is terminated from the Corporation at age 55 or later for any reason other than death or Cause (as defined herein) shall be entitled to receive the retirement benefit described in Paragraph 5A. For purposes of the benefits payable pursuant to the immediately preceding sentence, the benefit described in the preceding sentence shall be decreased by three percentage points for each year that a Key Person is less than 60 years of age on the date of the Key Person's commencement of benefit payments.
           A "Change in Control" shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs shall have been satisfied:

1. an acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (l) the then outstanding shares of common stock of EEC (the "Outstanding EEC Common Stock") or (2) the combined voting power of the then outstanding voting securities of EEC entitled to vote generally in the election of directors (the "Outstanding EEC Voting Securities"); excluding, however, the following: (1) any acquisition directly from EEC, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from EEC, (2) any acquisition by EEC, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by EEC or any entity controlled by EEC, or (4) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or
2. a change in the composition of the Board such that the individuals who, as of August 1, 2001, constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section, that any individual who becomes a member of the Board subsequent to August 1, 2001, whose election, or nomination for election by EEC's shareholders, was approved by a vote of at least two-thirds of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board, but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or
3. consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of EEC ("Corporate Transaction"); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding EEC Common Stock and Outstanding EEC Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns EEC or all or substantially all of EEC's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding EEC Common Stock and Outstanding EEC Voting Securities, as the case may be, (2) no Person (other than EEC, any employee benefit plan (or related trust) of EEC or any entity controlled by EEC or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of EEC resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or
4. the approval by the stockholders of EEC of a complete liquidation or dissolution of EEC.

        For purposes of the definition of Change in Control in this Paragraph 9:

"Beneficial Owner" shall have the meaning defined in Rule 13d-3 under the Exchange Act.

"Board" shall mean the Board of Directors of EEC.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

"Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) (2) and 14(d) (2) thereof.

"Cause" for termination from the Corporation of a Key Person's employment (for purposes of this Plan), after any Change in Control, shall mean (i) the willful and continued failure by the Key Person to substantially perform the Key Person's duties with the Corporation (other than any such failure resulting from the Key Person's incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Key Person by the Board of Directors of the Corporation which demand specifically identifies the manner in which the Board of Directors of the Corporation believes that the Key Person has not substantially performed the Key Person's duties, or (ii) the willful engaging by the Key Person in conduct which is demonstrably and materially injurious to the Corporation, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, no act, or failure to act, on the Key Person's part shall be deemed "willful" unless done, or omitted to be done, by the Key Person not in good faith and without reasonable belief that the Key Person's act, or failure to act, was in the best interest of the Corporation.

10. Transferred Employees. In the event an employee of the Corporation included in this Plan transfers employment from the Corporation to another member of the EEC Group, such employee's participation in this Plan shall cease as of the date of such transfer. In the event an employee has not reached age 60 prior to the date of such transfer, no benefits will be payable from this Plan to the employee.

* * * * *

IN WITNESS WHEREOF OF THE ADOPTION OF THIS PLAN, Energy East Management Corporation has set its hand and seal to this plan as of the 1st day of August, 2001.

ENERGY EAST MANAGEMENT CORPORATION

By  /s/Richard R. Benson                   
          Richard R. Benson
          Vice President
          Human Resources

Attest  /s/Kenneth M. Jasinski              
                Kenneth M. Jasinski
                Executive Vice President,
                General Counsel & Secretary

STATE OF NEW YORK     )

                                               ) SS.:

COUNTY OF                       )

        On this 13th day of August                  , in the year 2001, before me, the undersigned, personally appeared  Kenneth M. Jasinski , personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 /s/Darlene E. Beach                        

          Notary Public

EXHIBIT "A"

Participating Employees

Mark V. Dolan

Michael I. German

Eric C. McClelland

EXHIBIT "B"

Participating Employees

Steve Garwood

EX-10.31

Exhibit 10-31

NEW YORK STATE ELECTRIC & GAS CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Amended and Restated Effective August 1, 2001

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

1. Establishment of the Plan and Effective Date. New York State Electric & Gas Corporation (hereinafter called the "Corporation") has established a Supplemental Executive Retirement Plan (hereinafter called the "Plan"). The Corporation is the Plan Sponsor.
               Energy East Corporation (hereinafter called "EEC") is the common parent of an "affiliated group", within the meaning of Section 1504 of the Internal Revenue Code of 1986, as amended (hereinafter that affiliated group is called the "EEC Group"). The Corporation is one of the members of the EEC Group.
               The purpose of the Plan is to provide designated salaried employees of the Corporation with a supplemental retirement benefit. The Plan was established effective as of September 7, 1984, was last amended and restated effective August 1, 2001 and will continue in effect unless terminated or modified by the Corporation.
2. Plan Administrator. The Plan Administrator is the Corporation.
3. Plan Year. The Plan Year shall be the calendar year (beginning on January 1 and ending on December 31.)
4. Year of Service. A Year of Service shall be credited for each twelve consecutive month period of employment with the Corporation. A partial Year of Service shall be credited for each period of employment with the Corporation of less than twelve consecutive months.
5. Supplemental Pension Benefits.

A. Determination of Benefit. All Key Persons (as defined in Paragraph 5D) who retire from the Corporation either voluntarily or by reason of a disability at age 60 or later shall be entitled to receive a total retirement benefit equivalent to the percentage of the average of such Key Person's highest three years of earnings within the last ten years of employment with the Corporation that is determined as follows: (i) the percentage benefit shall be 45% for each Key Person who has ten Years of Service with the Corporation; (ii) the percentage amount shall be increased by one percentage point per year for each additional full Year of Service with the Corporation up to a maximum of 75% for forty or more years of service. In addition, for each partial Year of Service completed by the Key Person, the percentage benefit shall be prorated by multiplying the applicable percentage by a fraction, the numerator of which is equal to the number of months completed in the partial Year of Service, and the denominator of which is equal to twelve.
            For purposes of this Paragraph 5, earnings shall be equal to the Key Person's "Basic Compensation" as defined under the tax qualified pension plan adopted or sponsored by the Corporation, excluding any amounts received pursuant to EEC's Annual Executive Incentive Plan or Long Term Executive Incentive Share Plan (or their respective predecessor plans, the Annual Executive Incentive Compensation Plan and the Performance Share Plan, or any successor or other incentive plan of EEC or the Corporation).
            From the amount determined in accordance with the provisions of this paragraph there shall be subtracted (i) any amounts received by the Key Person from any defined benefit pension plan adopted or sponsored by the EEC Group in which the Key Person participates, payable at age 60 (or actual age, if greater) as a straight life annuity and (ii) any Social Security benefits which the Key Person is eligible or expected to become eligible to receive as determined by the Plan Administrator. If after the subtraction there remains a positive amount, that amount shall be paid by the Corporation as an additional benefit to the Key Person in accordance with the terms of this Plan.
            For purposes of making the subtraction set forth in the immediately preceding paragraph, if (i) a Key Person retires at or after age 60 and prior to age 62, or (ii) a Key Person's employment is terminated, upon and after a Change in Control (as defined in Paragraph 8), for any reason other than death or Cause (as defined in Paragraph 8) at or after age 55 and prior to age 62, the amount of Social Security benefits subtracted will be the amount of estimated Social Security benefits that the Plan Administrator estimates that the Key Person would have received if he had retired at age 62.

B. Survivor's Benefit. One-half of any amount being paid to a Key Person pursuant to Paragraph 5A hereof after retirement will be paid to the surviving spouse of the Key Person during the spouse's lifetime upon the death of the Key Person after retirement. If a Key Person dies prior to retirement and such Key Person would have been entitled to payments pursuant to Paragraph 5A hereof if, at the time of his death, he had retired rather than died, his spouse shall be paid during her lifetime the amount specified in the next sentence of this Paragraph 5B. Said amount shall be determined by applying the first sentence of this Paragraph 5B as if the Key Person had retired on the date of his death, rather than dying on such date, and survived long enough to receive the first payment due to him pursuant to Paragraph 5A hereof. For the purposes of this Paragraph 5B, a Key Person's "spouse" shall mean the spouse who survives the Key Employee and to which the Key Person is legally married: (i) in the case of a Key Person who dies prior to retirement, on the date of the Key Person's death or (ii) in the case of a Key Person who dies after retirement, on each of the date of the Key Person's retirement and the date of the Key Person's death. No benefits are payable pursuant to this Paragraph 6B upon the death of a Key Person who is (x) unmarried or (y) no longer married to the spouse who was the Key Employee's spouse on the date of the Key Person's retirement.

C. Payment of Benefit. Benefits payable under Paragraph 5A of this Plan shall be payable monthly to the Key Person.
            All benefits payable pursuant to Paragraphs 5A and 5B of this Plan will cease upon the death of the surviving spouse of the Key Person or, if there is no surviving spouse, upon the death of the Key Person. No rights shall accrue under this paragraph to (i) the estate of the Key Person, (ii) any beneficiary of the Key Person other than a surviving spouse or (iii) the estate of the surviving spouse.
            Except as specifically provided in the last two sentences of Paragraph 5B or in accordance with Paragraph 8, no benefits will be paid to the Key Person or any surviving spouse pursuant to this plan if the Key Person dies prior to retirement from the Corporation or the employment of the Key Person is terminated by the Corporation.

D. Definition of Key Person. For purposes of this Plan, the term "Key Person" means each employee of the Corporation set forth on Exhibit "A" attached hereto and made a part hereof. Participation in this Plan shall terminate when a Key Person is no longer employed by the Corporation.

6. Other Provisions. The Corporation reserves the right to terminate or modify the Plan in whole or in part at any time by action of the Board of Directors of the Corporation. Any such termination or modification shall not affect rights previously accrued. Participation in the Plan shall not be deemed to be an employment contract. A participant's rights and benefits under the Plan may not be assigned, pledged, or encumbered by the participant, his estate or beneficiary. The Plan Administrator will make such decisions, rules and regulations as are necessary to administer the Plan and interpret the provisions of the Plan.
7. Funding. There will be no funding of any amounts to be paid pursuant to this Plan; provided, however, that the Corporation, in its discretion, may establish a trust to pay such amounts, which trust shall be subject to the claims of the Corporation's creditors in the event of the Corporation's bankruptcy or insolvency; and provided, further, that the Corporation shall remain responsible for the payment of any such amounts which are not so paid by any such trust.
8. Change in Control Provisions and Definition of Cause. Upon and after a Change in Control (as defined in Paragraph 8 hereof), all Key Persons whose employment is terminated from the Corporation at age 55 or later for any reason other than death or Cause (as defined herein) shall be entitled to receive the retirement benefit described in Paragraph 5A. For purposes of the benefits payable pursuant to the immediately preceding sentence, the benefit described in the preceding sentence shall be decreased by three percentage points for each year that a Key Person is less than 60 years of age on the date of the Key Person's commencement of benefit payments.
             A "Change in Control" shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs shall have been satisfied:

(i)      an acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (1) the then outstanding shares of common stock of EEC (the "Outstanding EEC Common Stock") or (2) the combined voting power of the then outstanding voting securities of EEC entitled to vote generally in the election of directors (the "Outstanding EEC Voting Securities"); excluding, however, the following: (1) any acquisition directly from EEC, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from EEC, (2) any acquisition by EEC, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by EEC or any entity controlled by EEC, or (4) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or
(ii)      a change in the composition of the Board such that the individuals who, as of August 1, 2001, constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section, that any individual who becomes a member of the Board subsequent to August 1, 2001, whose election, or nomination for election by EEC's shareholders, was approved by a vote of at least two-thirds of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board, but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or
(iii)      consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of EEC ("Corporate Transaction"); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding EEC Common Stock and Outstanding EEC Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns EEC or all or substantially all of EEC's assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding EEC Common Stock and Outstanding EEC Voting Securities, as the case may be, (2) no Person (other than EEC, any employee benefit plan (or related trust) of EEC or any entity controlled by EEC or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 25% or more of, respectively, the outstanding shares of common stock of EEC resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or
(iv)      the approval by the stockholders of EEC of a complete liquidation or dissolution of EEC.

For purposes of the definition of Change in Control in this Paragraph 9:

"Beneficial Owner" shall have the meaning defined in Rule 13d-3 under the Exchange Act.

"Board" shall mean the Board of Directors of EEC.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

"Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) (2) and 14(d) (2) thereof.

"Cause" for termination from the Corporation of a Key Person's employment (for purposes of this Plan), after any Change in Control, shall mean (i) the willful and continued failure by the Key Person to substantially perform the Key Person's duties with the Corporation (other than any such failure resulting from the Key Person's incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Key Person by the Board of Directors of the Corporation which demand specifically identifies the manner in which the Board of Directors of the Corporation believes that the Key Person has not substantially performed the Key Person's duties, or (ii) the willful engaging by the Key Person in conduct which is demonstrably and materially injurious to the Corporation, monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, no act, or failure to act, on the Key Person's part shall be deemed "willful" unless done, or omitted to be done, by the Key Person not in good faith and without reasonable belief that the Key Person's act, or failure to act, was in the best interest of the Corporation.

9.       Transferred Employees. In the event an employee of the Corporation included in this Plan transfers employment from the Corporation to another member of the EEC Group, such employee's participation in this Plan shall end as of the date of such transfer. In the event an employee has not reached age 60 prior to the date of such transfer, no benefits will be payable from this Plan to the employee.

* * * * *

            IN WITNESS WHEREOF OF THE ADOPTION OF THIS AMENDED AND RESTATED PLAN, NYSEG has set its hand and seal to this amended and restated plan as of the 1st day of August, 2001.

NEW YORK STATE ELECTRIC & GAS CORPORATION

By /s/Sherwood J. Rafferty                  
          Sherwood J. Rafferty
          Senior Vice President and
          Chief Financial Officer

Attest    Elaine Du Brava                    
              Elaine DuBrava, Secretary

STATE OF NEW YORK                 )

                                             ) SS.:

COUNTY OF                       )

          On this 13th day of August               , in the year 2001, before me, the undersigned, personally appeared SHERWOOD J. RAFFERTY, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 /s/Darlene E. Beach                         
          Notary Public

EXHIBIT "A"

Participating Employees

Robert D. Badertscher	Robert E. Martin
Richard H. Cerchiara	William G. McCann
William J. Cooney, Jr.	Sherwood J. Rafferty
Francis DiTommaso	James W. Rettberg
Thomas F. Dorazio	Susan T. Shattschnieder
Michael D. Eastman	Jeffrey K. Smith
Brian J. Eldridge	Teresa M. Turner
Joseph C. Fleury	Dennis R. Urgento
Raymond E. Jensen	Michael C.Y. Van
Arthur E. Kruppenbacher	William K. Von Iderstein
Robert L. Malecki