News Release Date: April 5, 2007

Statement by Richard M. Kessel
Chief Executive Officer & President,
Long Island Power Authority on Dowling Study of LIPA’s Offshore Wind Park Proposal

 
“As stated previously, LIPA is committed to reducing Long Island’s dangerous dependence on oil and other fossil fuels by adding renewable energy technologies, such as our proposed Offshore Wind Project, to its electric resource mix.“

"The Dowling study is narrow-focused and short-sighted, since it does not take into consideration potential oil and fossil fuel cost savings that could be derived from the project at either current or future prices.

“Nine years ago, crude oil sold for $18 per barrel. Last summer the price went over $77 per barrel. More recently, the price has ranged from the mid to high 60s.

“Renewable energy resources such as wind may seem to be more expensive today when compared with traditional power plants, but how much will crude oil and natural gas cost 10, 15, 20 years from now? Future prices of oil, which depend on the volatile Middle East, world-wide demand and supply, and the profiteering of oil companies, could ultimately make wind generation more price competitive over the long term.

“Again, as previously stated, it is impossible to arrive at any meaningful conclusions about LIPA’s Offshore Wind project unless and until LIPA enters into a formal Power Purchase Agreement to acquire the power. Any study that states otherwise is flawed and incomplete.

“LIPA will conduct an updated economic analysis of the wind project and will not enter into any agreement that would affect rates more than a traditional power plant would.”

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 2010, LIPA outperformed all other overhead electric utilities in New York State for frequency of service interruptions, and ranked second for duration of service interruptions. 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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Media Contact Information
Mark Gross
Phone - (516) 719-9892
Media Pager - (516) 229-7248
media.relations@lipower.org


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