News Release Date: December 12, 2007

LIPA and National Grid/KeySpan Issue RFP for Repowering Study of The Northport and Port Jefferson Power Stations

Community Input to be Solicited

Uniondale, NY—The Long Island Power Authority (LIPA) and KeySpan, now part of National Grid, today issued a Request for Proposals (RFP) to conduct a repowering study of the Northport and Port Jefferson Power Stations.

The repowering study will investigate options for these two sites using both traditional “hybrid” repowering scenarios which utilize the existing steam turbines and “backyard” or site repowering scenarios in which a new, highly efficient combined cycle facility is constructed on the existing site.

LIPA is also reviewing the option it has under its contract with National Grid to acquire other local power plants owned by National Grid and operated under contract to LIPA for possible repowering. These include the E.F. Barrett in Island Park, Far Rockaway, and Shoreham/Wading River generating facilities.

The main goal of these studies is to assess the engineering, environmental and economic feasibility of repowering projects at these sites. The benefits of repowering existing plants include greater efficiency, increased capacity and reduced emission rates.

“As part of LIPA’s commitment to delivering clean, safe, reliable and economical electric service to customers, this RFP is essential for us to assess the environmental benefits and the economic costs of repowering the Port Jefferson and Northport power plants,” said LIPA President and CEO Kevin S. Law.

“The feasibility of repowering our power plants is an issue we’ve been studying with LIPA for some time now,” said Robert B. Catell, Chairman of National Grid US. “This RFP is the first
step in determining the achievable environmental and operational benefits as well as the potential rate impacts of repowering these plants.”

In performing the repowering study, LIPA and National Grid will jointly establish a Stakeholder Committee, which will include community, environmental, business, and government representatives. The Committee will be provided study information for review and comment and will interact with LIPA, National Grid and the selected consultant as the study proceeds.

The Port Jefferson and Northport Power Stations, located on the north shore of Long Island, were completed in 1960 and 1977 respectively and are strategically equipped to utilize either fuel oil and/or natural gas for economic electric power production.

The Port Jefferson and Northport repowering study will be performed in two phases. Phase I will provide a scoping study of repowering scenarios that will be ranked based on emission reductions, net power output, efficiency improvement, capital cost, operating costs, constructability, and licensing feasibility. Phase I will identify the most feasible re-powering options and an analysis of the rationale for their selection and the rejection of the other options examined.

The Phase II work will contain a detailed analysis of the recommended repowering cases. At a minimum, one hybrid case and one backyard case at each site will be studied in detail including the potential rate implications.

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 2008, 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
Vanessa Baird-Streeter
Phone - (516) 719-9230
Cell - (516) 640-0168
Media Pager - (516) 229-7248
media.relations@lipower.org


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