FOR IMMEDIATE RELEASE
June 1, 2000

CONTACT:
Media Relations
(516) 222-7700


LIPA Announces Energy Efficient Air Conditioner Rebate Program


Uniondale, NY-June 1, 2000- The Long Island Power Authority (LIPA) announced today that it is offering its customers a $10 to $20 Bonus Coupon rebate for the purchase of energy efficient, EnergyStar-rated room air conditioners. These Bonus Coupons can be used towards any purchase from LIPA's EnergyWise catalog of energy saving products.

The LIPA program is being announced in response to extraordinary growth in demand for electricity during the past summer season. LIPA's 20% rate reduction, Long Island's booming economy and the growth in appliance use, especially room air conditioners, have contributed to this growth. According to an internal survey, Long Islanders purchased approximately 470,000 air conditioners last year, almost three times the number sold in 1998.

"This summer season is forecasted to be very warm, and the electric supply for Long Island and New York State, may be very tight as well. We will all have to do our part to conserve electricity and use our energy resources wisely," said LIPA Chairman, Richard M. Kessel. "LIPA's EnergyStar-rated room air conditioner rebate program will help to defray some of the anticipated energy demand over the summer season, while saving LIPA's customers money and protecting the environment."

"We're very excited about being involved with LIPA's rebate program," said Pat Dehner, Senior Sales Trainer for P. C. Richard and Sons. "There has been a tremendous response with rebates on other products such as the TumbleWash washing machine. "LIPA's rebates are a win-win for the customer, the retailer and the manufacturer. All benefit from having energy-efficient appliances."

When LIPA customers purchase an EnergyStar-rated room air conditioner, they will receive a bonus coupon ranging from $10 to $20 off any purchase from LIPA's EnergyWise catalog. LIPA's EnergyWise catalog offers a wide range of elegant fixtures, stylish table lamps and light bulbs in a variety of wattages. All lighting products are not only EnergyStar-rated products, but are offered at instantly reduced prices. Additionally, the EnergyWise catalog has an extensive selection of innovative, environmentally friendly products.

EnergyStar-rated room air conditioners feature high-efficiency compressors, fan motors, and heat transfer surfaces. In an air conditioner, the air is cooled when it passes over the refrigerant coils which have fins, similar to an automobile radiator. The compressor sends the cooled refrigerant through the coils, and cools the air as it is forced over the coils. By using advanced heat transfer technologies, more of the heat from the air is transferred into the coils than in conventional models, saving energy required to compress the refrigerant. EnergyStar-rated room air conditioners must exceed minimum federal standards for energy consumption by at least 15%.

Kessel said that, "consumers should select the right size when purchasing an air conditioner. Many people buy an air conditioner that is too large for the space, thinking it will cool better. An oversized air conditioner will actually be less effective than one that is the correct size, and waste energy at the same time. Air conditioners remove heat and humidity from the air. Humidity is removed when the air in a room passes over the cooling coils of an air conditioner. If the unit is too large, it will cool the room quickly, but only remove a portion of the humidity.

This leaves the room with a damp, clammy feeling to the air, since the air will not have been circulated enough. A properly sized unit will remove humidity effectively as it cools. Running a smaller unit for a longer time will use less energy to completely condition a room than running a larger unit for a shorter time. LIPA recommends determining air conditioner size by multiplying the area of the room in square feet by 20. The result is the cooling capacity needed, expressed in BTU's per hour. This figure can be found among the air conditioner's specifications."

LIPA's room air conditioning rebate program will run through August 31, 2000, as part of its Clean Energy Initiative. At Governor Pataki's request, LIPA established a $160 million Clean Energy Program to fund conservation programs and new technologies including solar, wind and fuel cells.

Last week, Kessel announced that while LIPA's capacity for this summer exceeds the forecasted extreme weather demand by nearly two hundred and fifty megawatts (MW). Customers must be vigilant in their use of electricity especially during an extreme heat wave. LIPA is expecting a high demand forecast of 4893 MW with a capacity of 5140 MW.

For a list of LIPA's EnergyStar retail appliance store partners and further information on energy conservation, visit LIPA's Web site at www.lipower.org or call LIPA's EnergyWise Infoline number at 1-800-692-2626.

The Long Island Power Authority owns the retail electric system on Long Island. LIPA provides electric service to nearly 1.1 million customers in Nassau and Suffolk Counties, and the Rockaway Peninsula in Queens.

-30-