South Shore, LI – April 22, 2002 – The Long Island Power Authority (LIPA) released a study today evaluating the potential for using ocean-located wind generators to produce electricity for Long Island. The first-ever study shows that a maximum of about 5200 megawatts (MW) of electricity could be produced by wind generators placed in a 314 square-mile band that stretches three to six nautical miles off Long Island’s south shore and east of Montauk Point.

By restricting the placement of offshore wind turbines to a smaller, 135 square-mile band about three nautical miles from shore, with water depths of 50 feet or less, about 2,250 MW of wind-generated power could be produced to meet Long Island’s ever-growing demand for electricity.

Before any offshore wind turbines are constructed, however, additional study would be needed to determine potential environmental impacts – such as the potential impact on water foul, migratory birds and marine life – and the costs associated with building and connecting the wind generators to LIPA’s on-island electric grid.

LIPA Chairman Richard M. Kessel said that LIPA would hold a pre-proposal meeting for interested wind generation developers on Tuesday, June 25^th, to gather further information and begin the process of soliciting proposals for offshore wind generation projects before the end of the year. Mr. Kessel invited environmental groups to participate in the selection process.

Working with the local, state and federal entities that have oversight on the development of such a project, it would take three to five years to plan, review, approve and construct offshore wind generators.

The study entitled Long Island’s Offshore Wind Energy Development Potential: A Preliminary Assessment was co-funded by LIPA and the New York State Energy Research and Development Authority (NYSERDA). Requested by Governor George Pataki, STAR, and former Brookhaven National Laboratory president John Marburger, the study can be downloaded from LIPA’s Web site.

"The study shows that harnessing the wind to produce electricity for Long Island has tremendous potential," said LIPA Chairman Richard M. Kessel. "It’s not without challenges, but the preliminary study demonstrates that it’s certainly worth moving forward with follow-up assessments to determine the best locations for siting offshore turbines, and to obtain more detailed information on the costs and environmental benefits of offshore wind generation."

"Under Governor Pataki’s leadership, New York State is now the home to two of the largest wind farms in the Eastern United States," said NYSERDA President William M. Flynn. "Developing additional wind power resources in the State is a key component of the State’s overall energy strategy, as noted in the State’s 2002 Draft Energy Plan, to reduce our dependence on energy that is produced by burning fossil fuels."

"A steady supply of power is important to each of us as well as the economic health of Long Island,’ said Thomas P. DiNapoli (D-Thomaston), Chairman of the Assembly Environmental Conservation Committee. "LIPA is to be commended for continuing to advance the use of alternative energy sources, such as solar and wind power, and in assisting residential and commercial customers in making a concerted effort to conserve energy."

"Wind power is a win-win for Long Island," said Neal Lewis, Executive Director of the Long Island Neighborhood. "It is non-polluting and can provide Long Island with an energy source free of Middle East political entanglements. Long Island environmental groups need to support this proposal and participate in a cooperative fashion in the review process that will now take place before the final plan is approved."

"Making Long Island more energy self-sufficient by developing renewable, non-polluting energy capacity has been the dream of many environmentalists," said Sara J. Meyland, Executive Director and General Counsel of Citizens Campaign for the Environment. "The announcement of this new study by LIPA on the potential for large-scale, offshore wind energy stations is a good way to help make that dream become a reality. Every effort to curb our reliance on fossil fuels helps the Long Island environment and global health. The announcement is an excellent way to celebrate Earth Day, and LIPA should be congratulated for talking the initiative to advance wind energy."

"Wind power is a clean and inexhaustible source of energy," stated Kathleen Whitley, Program Manager for the Sustainable Energy Alliance (SEA). "In addition, it promotes stable energy pricing and will bring jobs to the local economy. These are win-win benefits for LIPA, Long Island residents and the environment."

"This study shows that great potential exists for wind energy in Long Island waters," said Scott Cullen, Executive Director of the STAR Foundation. "Offshore wind power is a proven technology that can produce significant amounts of energy that is clean, safe and renewable. LIPA should be commended for this initiative because commitment to renewable energy is responsible and forward thinking."

"This is a good ground-breaking report in that it shows that a major portion of Long Island’s electricity can be harvested right here in our offshore water from clean and renewable wind energy," said Gordian Raacke, Executive Director for the Citizens Advisory Panel. "LIPA and NYSERDA must be commended for commissioning this excellent study and we pledge to work with them to make wind energy production as reality on Long Island."

"Up until now, there has been an empty blackboard for this region when it comes to offshore wind power," said Todd Stebbins of NYPIRG. "This study actually looks at the implementation of theories and issues for Long Islanders to tap into an abundant resource for years to come."

"Because wind power has no fuel price risk and zero emissions, it must be part of a portfolio of resources for meeting the energy demand of Long Island," said Alexander Perera, Research Associate, Natural Resources Defense Council. "Tapping into the potential for wind power, solar power, energy efficiency, and repowering of older power plants would allow LIPA to meet all its energy needs in a way that reduces consumer costs and improves the environment."

Since offshore wind development is new to the United States and has only taken place in northern Europe, the study focuses on broad issues relating to the state-of-the art technology and its applicability to the Long Island environment.

The main objective of the study was to identify offshore areas that appear to have the best potential for wind energy development, and to also examine the implications of delivering offshore-generated electricity into LIPA’s on-island transmission system.

The study found that:

• the most feasible offshore area for wind generators is a 314 square-mile band that stretches along the entire south shore and to the east of Montauk Point;
• a 100 MW offshore project would cost about $150 to $180 million;
• interconnections costs would range from $40 to $70 million;
• developing wind generators within the entire south shore band (which runs three to six miles offshore) could produce about 5,200 MW of electricity;
• developing wind generators in a smaller, 135 square mile band running three miles offshore could produce as much as 2,250 MW of power;
• most offshore wind generation developed in Europe has been done in water 50 feet or less in depth;
• the rotor hub for an offshore wind turbine would be 262 feet above the surface of the water, and rotor blades 164 feet long would make the tip of the rotor reach a height of 426 feet above the surface of the water;
• an initial assessment suggests the avian impacts should not be ecologically significant; however a more detailed study would be needed at specific site locations; and
• the permitting process, due to multiple oversight entities, would take a minimum of three years.

According to Mr. Kessel, the offshore wind generation study is part of LIPA’s Clean Energy Initiative (CEI), which is a multi-year, $170 million program implemented at Governor George Pataki’s direction to promote energy conservation and efficiency, and to research, develop and implement the use of alternative energy technologies such as solar, wind, geothermal and fuel cells. Under its CEI program, LIPA has: instituted a Solar Pioneer program to encourage the use of solar power systems; developed fuel cell technology in partnership with Plug Power, Inc., and currently has 75 grid-connected units producing electricity for LIPA’s grid; increased the

application of geothermal technology for heating and cooling systems islandwide; undertaken an aggressive market transformation program to promote the use of Energy Star-rated appliances and energy efficient lights and lighting fixtures.

"No doubt about it, offshore wind generation for Long Island holds promise for the future," said Mr. Kessel. "We’re going to move forward with a more detailed evaluation of its potential so that we can develop some specific recommendations for the placement of wind generators off Long Island’s south shore."

According to LIPA, the June 25^th, meeting would bring together interested Long Island groups and wind generation developers to provide information to eventually draft an offshore wind generation Request For Proposals (RFP). Further studies would be planned. The meeting will begin at 11:00AM at Sheraton Long Island.

NYSERDA, a public benefit corporation, supports research to develop and demonstrate technologies that help New York businesses, municipalities and residents save energy and reduce emissions. NYSERDA also helps New York State businesses develop energy and environmental products, commercializing the type of high-value-added products that give New York State businesses a real chance to compete in the expanding global marketplace. In addition, NYSERDA helps New York State businesses, residents and municipalities identify and implement cost-effective energy efficiency measures that lower operating costs and reduce environmental emissions.

Information about NYSERDA’s programs may be obtained by going to www.nyserda.org.

In May 1998, LIPA reduced electric rates across the board by an average of 20% islandwide. Over the last four years that rate reduction has saved Long Island’s electricity consumers more than $2 billion. LIPA also offers a wide rage of programs that can help consumers lower electricity costs through energy conservation and efficiency. Information on these programs can be obtained by calling LIPA’s EnergyWise Infoline at 1-800-692-2626, or by going to LIPA’s Web site at www.lipower.org.

LIPA provides electric service to approximately 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. LIPA does not provide natural gas service.