energy east Q12007ER

Energy East Corporation announced its first quarter 2007 financial results, with earnings per share of $0.90, relatively consistent with earnings of $0.91 per share in the first quarter of 2006. Favorable weather led to increased retail sales and higher margins in both electricity and natural gas delivery businesses. However, electric margins were reduced by $0.15 per share due to a 2006 rate order. Interest costs also declined by $0.04 per share due to debt refinancing. For the 12 months ended March 31, 2007, earnings increased to $1.77 per share from $1.60 per share in the same period of 2006, driven by higher sales margins from favorable weather and lower expenses.