LIPA Announces Plan to Convert $293.6 million of Auction Rate Securities

Uniondale, NY – April 22, 2008 – As a further step in addressing the market-wide issues in the auction rate securities market, LIPA announced its plans late last week to convert seven series of its 2003 bonds which are currently in auction mode to weekly variable rate demand bonds. The following bonds will be converted on the corresponding date:

Series	CUSIP	Total Par Outstanding	Conversion Date
2003I	542690VV1	$65,600,000.00	May 9, 2008
2003J	542690WD0	$47,000,000.00	May 5, 2008
2003K	542690VX7	$47,000,000.00	May 5, 2008
2003L	542690WA6	$47,000,000.00	May 7, 2008
2003M	542690WC2	$20,000,000.00	May 8, 2008
2003N	542690VW9	$47,000,000.00	May 6, 2008
2003O	542690VN9	$20,000,000.00	May 8, 2008

Total Par Value to be Converted		$293,600,000.00

In accordance with the requirements of these bonds, all bonds being converted are subject to mandatory tender and the bondholders of record will be provided instructions as to the proper handling of their bonds for redemption.

On February 12, 2008, LIPA, as well as other municipal issuers of insured auction rate securities, began to experience “failed auctions” as a result of the market’s growing concern over the various municipal bond insurers. The auction market has yet to correct this situation which is market-wide and is in no way a reflection of LIPA’s creditworthiness.

LIPA had previously redeemed four series of 2001 auction rate securities totaling $200 million insured by XL Capital using available liquidity.

LIPA continues to evaluate its options available with respect to its remaining insured variable rate bonds. “The conversion of the 2003I-O bonds represents the next step in the process of addressing LIPA’s exposure to insured variable rate bonds” said Elizabeth McCarthy, Senior Vice President and Chief Financial Officer. “We will continue to evaluate our portfolio of auction rate securities in the current challenging and volatile credit market situation to determine the best alternatives for the portfolio.”

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.

Media Contact Information
Mark Gross
Phone - (516) 719-9892
Media Pager - (516) 229-7248
media.relations@lipower.org

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