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FOR IMMEDIATE RELEASE
June 20, 2006

Contact Information:
Media Relations: (516) 719-9892
Media Pager: (516) 525-LIPA
media.relations@lipower.org

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LIPA Projects Sufficient Electricity Supply for Summer 2006
6,170 Megawatts Available to Meet Demand

Extreme Heat Could Push Peak Demand as High as 5,800 Megawatts Island-wide
Normal Summer Peak Demand Could Reach 5,300 MWs

Since 2001, Nearly 1,200 Megawatts of New Supply Added to Help Meet Ever-Growing Demand

East Meadow, NY – June 20, 2006 – The Long Island Power Authority (LIPA) announced today that under normal summer weather conditions, the Authority will have a sufficient supply of electricity to meet a base summer peak demand of about 5,300 megawatts (MW) for the Long Island Control Area (LICA).

During periods of extreme heat and humidity, when temperatures reach into the high 90s and above for several days, the extreme peak electric demand on Long Island could reach 5,800 MWs, more than 500 MWs over normal summer demand, according to LIPA.

To meet this year’s summer demand for electricity, LIPA will have 6,170 MWs of supply available from both on- and off-island resources. LIPA has added nearly 1,200 MWs of supply capability since 2001, which is the most for any region in the State.

“We’re entering this year’s summer season in better shape with our available supply than at any other time in Long Island’s history,” said LIPA Chairman Richard M. Kessel. “We’ve gone from a region teetering on the brink of blackouts during heat waves due to potential supply shortages to a region with enough resources to meet an extreme demand with a reasonable margin to spare.

“It’s been a huge undertaking to get all of the new resources on line over the years,” said Mr. Kessel. “And while it’s been one of LIPA’s most significant accomplishments to date, in looking ahead we need to add more resources to keep up with Long Island’s ever-growing demand for electricity, and to provide a wider margin should a major power plant or cable connection to off-island resources fail to operate when needed most.

“This is no time to rest on our laurels,” said Mr. Kessel. “We need to press ahead with the Caithness Long Island Energy Center, which will provide 350 megawatts of power to an area that is one of the fastest growing locations on the Island; we need to get the Neptune cable completed, which will add an additional 660 megawatts of supply by next summer; and we also need to advance the proposed Offshore Wind Project, which will add another 140 megawatts of wind-generated electricity to help diversify our resources.”

“KeySpan’s generating facilities met the challenge last year when LIPA hit an all time peak summer demand record,” said Robert Catell, KeySpan Chairman and CEO. “Throughout the year KeySpan’s highly trained workforce have conducted inspections and performed maintenance on all of our facilities so that the KeySpan generation is available on the hottest summer days.”

$2.2 Billion In System Improvements
Mr. Kessel noted that by the end of 2006 LIPA will have invested over $2.2 billion in Transmission and Distribution System capital improvements since 1998. System improvements include projects such as: new substations and substation upgrades; new transmission lines and transmission line upgrades; interconnections with new power supplies such as the Cross-Sound Cable and new on-island power supplies; and numerous distribution system upgrades to enhance the reliability of delivering electricity to LIPA’s customers.

21% Increase In Average Residential Electric Use
The average annual household electricity use on Long Island has increased by over 21% since 1998 to 9,903 kilowatt hours in 2005. The year-to-year increase of 467 kWh between 2004 and 2005 is the largest single-year increase in LIPA’s history.

“We need to stay ahead of the growing demand and maintain an adequate margin between the resources available and extreme peak demand. I shudder to think of the adverse public safety and economic consequences of not having enough electricity to meet Long Island’s demand.”

Previous Summer Peak Record Set August 5, 2005
LIPA’s all time peak summer demand record of 5,267 MWs was set last year on August 5th. In fact, LIPA set a new record last summer with a total of 13 days when demand exceeded 5,000 MWs. Previously, LIPA had exceeded the 5,000 MW mark only twice.

According to Mr. Kessel, LIPA’s average summer peak demand island-wide has increased by about 1,000 MWs since LIPA became Long Island’s non-profit electric utility in 1998. During the first summer that LIPA owned the system it set a peak demand record of 4,208 MWs on July 22. LIPA now hits 4,700, 4,800, 4,900 megawatts as a matter of routine, and many summer days reach 5,000 MWs or more.

LIPA’s resource projection for summer 2006 considers that all on-island generation is operating without limitations, and that all of the tie-lines that carry electric supplies from off-island resources are operating without restrictions.

Air conditioning use is the biggest driver of electricity consumption during periods of high heat and humidity, with as much as 40 percent of the electricity used during heat waves attributed to both commercial and residential air conditioning use, according to LIPA.

LIPA Programs to Help Reduce Demand During Heat Waves
Despite the added margin this year, LIPA continues to urge customers to conserve and use energy efficiently during peak use periods. For example, when LIPA anticipates an extremely high demand day – a Critical Demand Day – three significant demand side management programs can be activated to help reduce electricity consumption.

Each year, LIPA recruits major businesses to participate in its Peak Load Reduction Partnership. Businesses participating in this program agree to reduce electricity use during peak demand hours, which usually occur between 2 PM and 6 PM.

The LIPAedge program, which has nearly 30,000 participants islandwide, recruits residential customers and small businesses with central air conditioning (CAC) systems. Programmable thermostats have been installed on the CAC units that allow LIPA to remotely control the temperature setting and AC compressor. By elevating the temperature of the unit, or by turning off the compressor unit for 30 minutes every hour during the peak demand period, island-wide electric demand can be reduced.

LIPA also has a volunteer program called “Watts Going Down,” which recruits both residential and commercial customers who agree to reduce consumption on high demand days by following  basic energy conservation measures. Over 20,000 volunteers have been recruited for the program.

Combined, these programs can save about 111 MWs of electricity when activated on a Critical Demand Day and can help reduce peak demand.

Public appeals for conservation can also cause people to reduce energy use. For example, earlier in June, LIPA conducted its second annual voluntary emergency response drill that encouraged public participation by reducing non-essential electric use. It is estimated that business and residential customers reduced electricity use by about 70 MWs between the hours of noon and 3PM, which is enough to power about 70,000 averaged sized homes on Long Island.

While LIPA has a sufficient supply of electricity to meet this year’s summer demand, everyone is still urged to use electricity wisely and conserve as much as possible during heat waves.

To help stretch Long Island’s electricity supply, LIPA suggests the following:

  • Reduce non-essential electrical consumption, such as decorative outdoor lights;
  • Put air conditioners on timers; don’t leave them on when not at home;
  • Set AC units at 78 degrees;
  • Clean and replace AC filters regularly for maximum efficiency;
  • Use fans to circulate cool air, which will help cut AC use;
  • Set refrigerator/freezer units at the most efficient temperatures;
  • Install attic exhaust fans to reduce cooling needs; and
  • Purchase appliances, lighting fixtures and light bulbs with the highest energy efficiency.

LIPA has a wide range of energy conservation and efficiency programs and helpful tips that can help consumers reduce electric use and lower monthly bills. To find out more about these programs, customers can log on to www.lipower.org, or call LIPA’s EnergyInfoline, at
1-800-692-2626.

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LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org

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