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For Immediate Release

December 3, 2001

         RESERVOIRS AT DROUGHT LEVELS - EMERGENCY HEARING SCHEDULED

(WEST TRENTON, N.J.) - Storage in three large water supply reservoirs at
the headwaters of the Delaware River has dropped from drought warning to
drought levels, automatically triggering additional reductions in the
amount of water released from the reservoirs into the river and the amount
diverted out of the Delaware River Basin to New York City and New Jersey.

The reductions are required under the Delaware River Basin Commission's
(DRBC's) drought operating plan which is based on storage levels in the
three reservoirs (Cannonsville, Pepacton, and Neversink). The impoundments
are located in New York State's Catskill Mountains region and owned by New
York City.

A public hearing on whether to declare a drought emergency and implement
additional water conservation measures is scheduled for December 18th at
the commission's offices in West Trenton, N.J.

As of December 3, combined storage in the three reservoirs was 66 billion
gallons, over 100 billion gallons below normal, and 24 percent of capacity.

Under the commission's drought operating plan, which has been implemented
in stages over the past month, the allowable water supply diversions to New
York City have been lowered from a normal of 800 to 520 million gallons per
day (mgd), and diversions to northern New Jersey through the Delaware and
Raritan Canal have been lowered from the normal of 100 to 65 mgd. In
addition, minimum flow targets in the Delaware River have been lowered from
1,750 to 1,350 cubic feet per second (cfs) at Montague, N.J., and from
3,000 to 2,500 cfs at Trenton, N.J.

Smaller cutbacks in the out-of-basin diversions and flow targets
automatically took effect on November 4 when falling reservoir storage
triggered a drought warning.

"These water-conserving actions in place now save up to 540 million gallons
per day of storage in the New York City reservoirs," noted Carol R.
Collier, the DRBC's executive director.

Over 17 million people rely on the waters of the Delaware River Basin. New
York City, which lies outside the watershed, gets roughly half its water
from its Upper Delaware reservoirs.

In addition, Merrill Creek Reservoir, located near Phillipsburg, N.J., and
constructed by a consortium of electric utilities in the late 1980s, has
been releasing water to the Delaware River to replace evaporation losses
caused by power generation. The releases are triggered by operating
criteria approved by the commission.

Rainfall is approximately 10 inches below normal for the year in the upper
basin. The last five months have been very dry in the central portion of
the watershed, particularly in the Philadelphia area, central and southern
New Jersey, and in extreme northern Delaware. Southern Delaware has not
been as hard hit by the dry spell.

In response to the parched conditions, the Commonwealth of Pennsylvania
last month declared drought warnings in the Delaware River Basin counties
of Chester, Lancaster, and Lebanon, and drought watches in Berks, Bucks,
Carbon, Delaware, Lehigh, Monroe, Montgomery, Northampton, Philadelphia,
Pike, Schuylkill, and Wayne counties. New Jersey declared a drought warning
on November 21 for the portion of the state located within the Delaware
Basin, mainly the counties that flank the Delaware River. New York State
has declared drought watches for the eight counties in the Delaware River
Watershed  Broome, Chenango, Delaware, Greene, Orange, Schoharie,
Sullivan, and Ulster.

Voluntary conservation measures are being requested in these areas, a move
that is strongly supported by the commission.

The declarations by the states are based on comprehensive sets of drought
indicators including precipitation, storage, and ground water and stream
flow levels. The commission's drought plan is unique in that it is
triggered solely by declining reservoir storage. The plan is designed to
manage river flows to protect aquatic life and control the upstream
migration of salty water, which can cause corrosion problems for riverbank
industry and increase water treatment costs for municipalities.

"With cooler weather and generally reduced demand for water, the dry
conditions are not as noticeable in day-to-day activities as they would be
during the summer, " said Ms. Collier. "However, refilling the large
reservoirs will require above normal rain and snow during the winter and
spring. For this reason, additional conservation measures may be required
if rainfall continues at below normal levels."

A drought emergency declaration by the commission on December 18 would
enable it to enact special management provisions under its drought
operating plan. These special actions are aimed at conserving storage in
the regional reservoir system, and to provide for tighter control of
salinity intrusion in the tidal Delaware River. They could include
directing the use of storage in Lake Wallenpaupack, a hydropower facility
located near Hawley, Pa., and the Mongaup hydropower reservoirs in New York
State. Additional water could be stored in Francis E. Walter Reservoir, a
U.S. Army Corps of Engineers' impoundment located at the headwaters of the
Lehigh River which normally is designated exclusively for flood control.

In addition, Lake Nockamixon, a state-operated reservoir situated in Bucks
County, Pa., could be used for supporting the Trenton flow target.

The commission's drought operating plan, which is designed for managing
regional storage, complements the plans of the states which respond to
local water supply conditions. Reduction in non-essential water use lowers
water demand and subsequently will allow for better recovery of ground and
surface water systems during the winter and spring period.

The Delaware River Basin Commission is an interstate-federal agency
responsible for managing the water resources within the 13,539 square-mile
watershed, which drains portions of New York State, Pennsylvania, New
Jersey, and Delaware. Commission members are the governors of those four
states and a federal representative appointed by the President.

                                    ***

           Contacts: Christopher Roberts, 609-883-9500 ext. 205,
                        croberts@drbc.state.nj.us ;
      Clarke Rupert, 609-883-9500 ext. 260, crupert@drbc.state.nj.us

                                    ***

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