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LIPA and National Grid Create Repowering Stakeholder Committee for Northport and Port Jefferson Power Stations

Uniondale, NY—February 15, 2008— A Repowering Stakeholder Committee created by the Long Island Power Authority (LIPA) and National Grid consisting of government, environmental, and business representatives held its initial meeting today at National Grid’s Melville offices.

LIPA and National Grid issued an RFP in December of 2007 for a study to investigate the economic and technical feasibility of repowering options at the Northport and Port Jefferson Power Stations. The Stakeholder Committee was formed to assist LIPA and National Grid in this effort.

“The Stakeholder Committee is an essential element of the repowering study,” said LIPA President and CEO Kevin S. Law. “LIPA is committed to delivering clean, safe, reliable and economical electric service to its customers. The Committee will help us to determine if we can achieve these goals through repowering options at these sites.”

"National Grid has been working on this issue for some time now," said Robert B. Catell, Chairman of National Grid US. "We are encouraged that Kevin Law is showing tremendous leadership in this important issue."

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. The benefits of repowering existing plants include greater efficiency, increased capacity and reduced emission rates. This study will also look at the financial implications to ratepayers as repowering our plants could indeed be very expensive.

The Stakeholder Committee will be provided information for review and comment throughout the study period and will interact with LIPA, National Grid and Shaw Stone & Webster, the consultant selected to perform the study, as the study proceeds.

Items that must be thoughtfully considered include engineering and technical feasibilities, economics, and environmental impacts. These are only several of many factors which will weigh in the ultimate decision, which is why LIPA/National Grid assembled this panel of individuals who know Long Island and care deeply about its future to assist in reviewing the available options.

“The formation of the Repowering Stakeholder Committee is the first step in a very important process to determine the most efficient and effective way to generate power at the Port Jefferson and Northport Power Stations,” said Senator Kenneth P. LaValle. “I look forward to working with LIPA, National Grid and the community to ensure that any decision will be environmentally sound and serve the best interests of ratepayers.”

“The LIPC strongly believes that Long Island power plants should be repowered,” said Lisa Tyson, Stakeholder Committee member and Director of the Long Island Progressive Coalition. “We are excited that LIPA and National Grid have created this Committee and we are pleased that the LIPC is involved and will have its voice heard as part of this process.”

For more information on the repowering RFP visit the LIPA Web site at http://www.lipower.org/company/papers/rfp/repowering.html.

In the US, National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority. National Grid is the largest power producer in New York State, owning 6,650 megawatts of electricity generation that provides power to over one million customers on Long Island and supplies roughly a quarter of New York City’s electricity needs. It is also the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in New York, Massachusetts, New Hampshire and Rhode Island.

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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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