News Release Date: May 27, 2010

LIPA Announces Another Rate Decrease
of 3%

Lowest Rate In 5 Years

Uniondale, NY — Today, the Long Island Power Authority President and CEO Kevin S. Law announced that he is reducing the Power Supply Charge by 6% for LIPA’s 1.1 million customers. LIPA’s Power Supply Charge includes the costs for fuel and energy the Authority purchases on behalf of its customers, which accounts for more than 50% of LIPA’s nearly $4 billion annual operating budget. Thus, the bill impact will equate to an overall bill reduction of 3%, approximately $4.70 for the average residential customer.

“I am pleased to be in a position to offer a rate reduction to our LIPA customers, said Kevin S. Law. “LIPA can offer this rate decrease due to lower than projected natural gas costs as well as our hedging program and the dual fuel capabilities at our power plants which allows us to use gas or oil, whichever is cheaper. This is the third reduction of the power supply charge within the past year. In these difficult economic times every little bit of help we can provide to Long Island families matters.”

The reduced Power Supply Charge will take effect June 1, 2010 and when it does, LIPA’s rates will be at their lowest level since October 2005.

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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