Claverack, Tri-County RECs announce pending acquisition
of Corning Natural Gas

CORNING, NY (May 12, 2006) - Claverack and Tri-County Rural Electric Cooperatives announce that their jointly owned holding company, C&T Enterprises, has reached an
agreement to acquire the stock of the Corning Natural Gas Corp.

The companies will file jointly to transfer ownership of Corning Natural Gas (CNG) from
its stockholders to C&T Enterprises, a jointly owned subsidiary of Claverack Rural Electric Cooperative, based in Wysox, Pa., and Tri-County Rural Electric Cooperative, with headquarters in
Mansfield, Pa..

“CNG is extremely pleased to be able to merge with a relatively small but financially strong
organization that will allow us to retain our local identity, retain our fine employees and provide us
with ready access to capital markets that will enable us to ensure both reliable and safe service well
into the future,” said Thomas K. Barry, chairman and CEO of Corning Natural Gas.

“Corning Natural Gas will be a good fit for our family of energy companies,” noted Bobbi

Kilmer, president and chief executive officer of Claverack. “It’s a small, nearby company that
should integrate nicely with our existing operations.”

C&T Enterprises, with headquarters in Lewisburg, Pa., and an office in Wellsboro, Pa.,
owns one natural gas distribution company, Valley Energy of Sayre, Pa., with a division located in
Waverly, N.Y., along with two electric utilities, Wellsboro Electric Co. of Wellsboro and Citizens’
Electric Co. of Lewisburg.

Under terms of the sales agreement, finalized earlier today, C&T will acquire all of the
stock of CNG and assume all of the assets and liabilities of the regulated component of the
company. The acquisition, expected to be completed by the end of the year, will require approval
from the New York State Department of Public Service.

Once the transfer of ownership takes place, there will be just one share of Corning Natural
Gas stock, to be owned by C&T Enterprises. No individuals, directors or management will have
any ownership stake in the company.

The gas company will be governed by a board of directors made up of citizens from the
Corning community as well as directors from the C&T operating companies. The company will
continue to be regulated by the Department of Public Service.

Long-time Corning Natural Gas executives Thomas K. Barry and Kenneth J. Robinson,
executive vice president, have announced plans to retire upon completion of the transfer of ownership. C&T plans to initially utilize members of its senior management team to fill those key
positions.

There are no immediate plans to change the remaining management team or the employment makeup at Corning Natural Gas, according to company officials. The utility employs 46
workers.

“Over the next several years, some CNG operations will be assimilated into the C&T operation,” said Craig Eccher, president and CEO of Tri-County REC. “The company will benefit
from the economies of scale, operating efficiencies and synergies that can be achieved in partnership with our family of companies. Customers can be assured that we will be working to provide
them with reliable natural gas service at a reasonable price.”

C&T Enterprises provides shared management services to all of its affiliated companies in
the areas of human resources, payroll, information technology, communications and media relations, safety and compliance, and key accounts. In addition, the company operates the C&T Call
Center, which provides after-hours telephone and dispatching services to all of the C&T operating
companies.

“C&T will be providing a number of basic and necessary services to CNG that will help us
to operate more efficiently and assist us in providing a higher level of customer services,” stated
Barry.

The group of energy companies affiliated with C&T Enterprises employs approximately
200 workers and serves more than 55,000 consumers, primarily across Pennsylvania’s Northern
Tier.

Corning Natural Gas, with headquarters in Corning, N.Y., is natural gas distribution
utility that serves approximately 14,500 customers in the New York counties of Steuben and
Chemung.

* * *

Penn Lines

Press Releases

Mansfield University Scholarship

Youth Tour