LIPA’s 2009 Year in Review: Stabilized Rates and a Large Investment in Energy Efficiency, Renewable Energy and Smart Grid Projects

Commitment to reform, transparency, efficiency and renewables continues to grow under Law’s Leadership.

Strategic planning for LIPA’s future to continue in 2010

Uniondale, NY—The Long Island Power Authority (LIPA) today released its 2009 year in review, which highlights its commitment to energy efficiency, renewable energy and greater transparency at the Authority.

Along with the LIPA Board of Trustees, LIPA President and CEO Kevin Law has been aggressive in his efforts to promote energy efficiency, increasing LIPA’s renewable energy portfolio, making LIPA more transparent with respect to its overall operations and working to stimulate Long Island’s economy through the creation of new clean energy jobs, all while stabilizing rates which have been reduced to 2006 levels.

As he enters into his third year at the helm of LIPA, Law intends to make strategic planning for Long Island’s energy future the priority for the new year. He spent the better part of his first full year in 2008 reforming and fixing LIPA. In 2009, he set the foundation for a clean energy future: launching Efficiency Long Island, the largest energy efficiency program for any public utility in the country, securing the largest solar energy project in the State of New York; planning for what could be the largest off-shore wind project in the country; and began to introduce Smart Meters, the prelude to Smart Grid, throughout Long Island. Now, as we begin 2010, LIPA will examine if the current public/private business model, it now has with National Grid, is the best model for delivering electricity for our customers.

The following is a summary of some of the larger accomplishments achieved by LIPA in 2009 under Law’s leadership with the support of Governor David A. Paterson and the LIPA Board of Trustees in the key areas of Ethics and Reform, Budget and Management, Renewable Energy and Energy Efficiency, Energy Planning, Partnering to Make Long Island More Energy Efficient, National and Regional Recognition, Economic Development and Bringing Federal Money to Long Island.

A. Ethics and Reform

Issued RFP for an independent review of the utility’s criticized Power Supply Charge. The findings of this review were delivered directly to the Department of Public Service and the New York State Comptroller’s Office as well as to the Long Island Senate and Assembly Delegation;
Issued Executive Directive mandating disclosure of total contract costs for all energy projects;
Issued an Executive Directive to establish a budget review committee to review and evaluate spending prioritization and to review budget administration, performance monitoring, and expenditure control;
Required mandatory training of all employees regarding Ethics, Sexual Harassment and Workplace Violence;
Improved transparency on customer bills with separate lines for NYS Assessment charge and Efficiency and Renewable program costs.

B. Budget and Management

Delivered an on-time fiscally conservative 2010 budget which froze the delivery charge, decreased the power supply charge by 4%, and increased funding for renewable and efficiency programs;
Continued to reduce sponsorships, advertising, travel and conferences not related to LIPA’s core mission;
Created a $10 million program to assist income-eligible seniors pay electric bills;
Cut the power supply charge by 6% in May 2009 negating the 3.2% bill impact contained in the 2009 Budget;
Returned an additional $144 million dollars to ratepayers in the form of bill credits due to lower than projected fuel prices;
Announced with U.S. Senator Charles Schumer new federal legislation allowing LIPA to refinance nearly $7 billion in outstanding debt at a lower interest rate as a way to ultimately save ratepayers hundreds of millions in interest costs each year;
Continued to explore ways to reduce the $500 million in taxes LIPA pays to state and local jurisdictions;
Hired Lazard Frères & Co. LLC to assist LIPA with its strategic planning.

C. Renewable Energy & Energy Efficiency

Approved two separate power purchase agreements to generate 50 Megawatts of solar energy on Long Island, creating the largest solar project in the history of New York State;
Announced the launch of “Efficiency Long Island,” one of the most ambitious energy efficiency programs for any public utility in the country which emphasizes peak demand reduction and complements Governor Paterson’s 45 x 15 program. The energy efficiency program features an investment of nearly one billion dollars over ten years and is designed to avoid the need for construction of the next Long Island power generating facility. The program seeks to reduce summer peak demand by 500 MW by 2018, substantially reduce emissions, and stimulate the economy through the creation of clean energy jobs;
Surpassed 2,300 residential solar roofs installed on Long Island. LIPA’s Solar Pioneer and Solar Entrepreneur programs have rebated over $60 million for solar panels, representing an increased awareness locally of residential, commercial and municipal customers’ ability to control their own energy futures;
Issued an RFI for the country’s largest off shore wind farm proposal in partnership with Con Edison, New York Power Authority, New York City and other state agencies. Developed Wind Collaborative to “share the cost and share the power of the wind farm”;
Commenced new Backyard Wind initiative providing rebates to homeowners, businesses, municipalities, and nonprofits seeking to harness power from the wind through the use of land-based wind turbines;
Increased funding for energy efficiency and renewable programs by 37% in 2010 operating budget;
Hosted solar model zoning code conference with Long Island municipalities;
Announced the creation of a new Solar Thermal program in 2010;
Successfully negotiated $6 million in grants from NYSERDA for LIPA’s successful solar programs;
Announced plans for a new refrigerator replacement, removal, and recycling rebate program (“Cash for Clunkers”) aimed at promoting the elimination of old, inefficient, energy guzzling refrigerators for residential customers.
Awarded rebate to Osprey’s Dominion Vineyard to move forward with the installation of a 20kW wind turbine; the first vineyard to receive rebate under LIPA’s backyard wind initiative.

D. Energy Planning

Continued to meet with Advisory Panel consisting of elected officials, energy experts and business and financial leaders from Long Island to help map out the future of the Authority and to determine the best model for delivering energy to its 1.1 million customers;
Prepared an update of Energy Master Plan for Long Island and garnered public input for plan;
Conducted studies evaluating the engineering, environmental, and economic feasibility of developing repowering projects at aging power plants owned by National Grid;
Selected winner of an RFP issued by LIPA and its Shoreham Advisory Committee to explore options for the future use and redevelopment of the 59 acres surrounding and including the decommissioned Shoreham Nuclear Power Plant owned by LIPA.

E. Partnering with Schools, Businesses and Towns to make Long Island More Energy Efficient

Awarded Green Building Incentive to New York State’s first Gold LEED Certified Supermarket in Oceanside;
Partnered with New York Institute of Technology to research solar carports that charge electric hybrids;
Partnered with Hampton Bays Middle School which became the first New York State LEED Certified Public School;
Partnered with Smithtown, Lindenhurst, Herricks and Seaford school districts to install solar systems and/or provide energy efficiency upgrades to their respective schools;
Worked with the Town of Islip and the Rinx at Hidden Ponds Park to provide rebates for energy efficiency upgrades;
Awarded Cold Spring Harbor Laboratory nearly $250,000 in energy efficiency upgrades.

F. National and Regional Recognition and Speaking Engagements

Selected by US Senator Kirsten Gillibrand to testify in front of United States Senate regarding the Clean Energy Jobs and American Power Act;
Served as Key Presenter at National American Wind Energy Association (AWEA);
Honored with the New York Solar Energy Industries Association’s 2009 Energy Policy Leadership Award;
Recognized by Solar Electric Power Association (SEPA) for a second consecutive year as one of the top 10 utilities in the United States for having the most solar energy integrated into their energy portfolio. LIPA was one of only two utilities on the East coast so recognized.

G. Bringing in Federal Funds to Long Island

Obtained $12.5 million in federal stimulus money for the Rt.110 Smart Energy Corridor project;
Announced with US Representative Steve Israel that $1.75 million in federal funds were secured for the 50MW solar energy project;
Announced with U.S. Senator Kirsten Gillibrand that a key Senate panel approved $500,000 for LIPA’s Solar Pioneer and Solar Entrepreneur programs;
Announced with U.S. Rep. Gary Ackerman that $500,000 was secured for the LI-NYC Offshore Wind farm project;
Secured $713,000 in federal funds through Congressman Steve Israel to enhance a smart meter pilot program;
Continued to pursue funding under the American Recovery and Reinvestment Act in the amount of $15 million for 50MW solar project.

H. Promoting Long Island’s Economy

Delivered 15 megawatts of low-cost hydropower to Brookhaven National Laboratory with New York Power Authority;
Continued outreach to LI companies to assist in promoting energy efficiency including the following companies; Leviton, Canon, Cox, and Constance Foods;
Assisted companies with payment plans and rate structures to ensure their financial viability through LIPA’s Rate Relief Programs.

For more information on LIPA initiatives and programs visit http://www.lipower.org.

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.

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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