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LIPA Announces Request for Proposals to Test Broadband Over Power Lines & Wireless Technology Applications on Long Island’s Power Grid

Uniondale, NY—February 15, 2006— The Long Island Power Authority (LIPA) today announced that it will conduct a two-year test to assess the potential for large-scale application of Broadband Over Power Lines (BPL) and wireless technology to LIPA’s electric Transmission and Distribution (T&D) system to enhance service reliability, and to also evaluate the long-term potential for offering BPL and Wireless-enhanced products and services to LIPA’s customers.

LIPA will issue a Request for Proposals (RFP) soliciting bids from firms experienced in BPL and wireless communications technology to conduct the demonstration project that will involve 105 of LIPA’s residential and commercial customers in the Hauppauge/Commack area.“

This is a significant demonstration project that will help LIPA make crucial decisions regarding the application of broadband and wireless technologies to its electric grid to enhance system operations and reliability,” said LIPA Chairman Richard M. Kessel. “At the same time, it will also help LIPA evaluate the potential for offering broadband and wireless technology related services such as Internet and telephone access over LIPA’s power lines.

"The large-scale use of cutting-edge broadband and wireless technology on LIPA’s electric transmission and distribution system could be an important step forward in creating a 21st Century power grid on Long Island to better serve our customers,” said Mr. Kessel.

During the two-year demonstration project, which LIPA plans to get underway during the second half of 2006, the long-term applications of BPL and wireless technology will be evaluated. Should the demonstration provide a positive business case for BPL and wireless, LIPA would issue an RFP for the wide-scale application of the technologies on its system by a third party under a long-term “landlord” arrangement.

BPL T&D System Applications
BPL and wireless technologies can be utilized on LIPA’s island-wide electric grid to increase system reliability by enhancing the ability to monitor and control various T&D system components such as Automatic Sectionalizing Units that detect faults and re-route service; the operation of transformers and capacitors; substation operations; and outage detection. It could also allow for the application of real-time, automated meter reading technology that could help customers modify their electricity use patterns and save money with “time of day” electric rates.

BPL Customer Applications
BPL could also provide LIPA’s residential and commercial customers with price competitive access to the Internet and Internet-related services such as Voice over Internet (VoIP), Instant Messaging (IM), and other broadband services.

RFP Schedule

• Issue RFP..............................................February 21, 2006
• Bidders Conference.............................March 10, 2006
• Deadline for Questions.......................March 17, 2006
• Submit Notice of Intent to Propose...March 24, 2006

• Proposal Due Date..............................April 28, 2006

The winning bidder will be awarded a three-year contract to perform the two-year BPL and wireless technology demonstration. The contract is also subject to approval by the LIPA Board of Trustees and the New York State Comptroller’s Office before it can be implemented.“

LIPA intends to fully evaluate BPL to determine its use to improve service to its customers while at the same time offering a competitively priced BPL service option to its customers,” concluded Mr. Kessel. “BPL has the potential to provide LIPA with additional revenues that will help hold down rates.”