NATIONAL GRID AND LIPA REDUCE AIR POLLUTANT EMISSIONS AT NORTHPORT AND PORT JEFFERSON POWER PLANTS

$100 million modernization of plants will enhance our environment by cutting Carbon Dioxide (CO2) emissions by 85,000 to 140,000 tons per year

HICKSVILLE, N.Y, July 21, 2010 – In their ongoing commitment to energy efficiency and improving Long Island’s environment, National Grid and the Long Island Power Authority (LIPA) are pleased to announce the completion of the first phase of the Nitrogen Oxide (NOX) reduction/turbine efficiency project at the Northport Power Station. The project which is designed to reduce emissions and fuel use from these units has been completed on Northport Unit 3.

The $100 million investment involves the implementation of new steam turbine technology at the Northport plant as well as installing advanced (NOX) control systems at the Northport and Port Jefferson Plants. NOX is a precursor to ozone (smog) formation that occurs during the summer months; this project resulted in a 40 percent reduction in emissions.

“While LIPA continues to plan for its energy future by moving forward with more renewable energy and improvements in energy efficiency, the reality is that in order to meet our reliability obligations set forth by the state there is still a need for fossil fuel plants on Long Island for the foreseeable future,” said LIPA President and CEO Kevin S. Law. “By making these plants run more efficiently we can reduce carbon and NOX emissions, reduce operating costs, improve air quality and delay or forego the construction of the next power plant on Long Island. This leads to lower electricity costs to Long Islanders.”

This commitment was made as part of the Merger and Acquisition Agreement associated with National Grid’s purchase of KeySpan and the subsequent amendment to the Power Supply Agreement (PSA) between LIPA and National Grid. The cost of the investment will be funded through the fuel and emissions savings realized by the investment.

“These projects are a great example of National Grid's environmental leadership team work with LIPA and our combined commitment to the community,” said Robert Teetz, National Grid Vice President of Environmental Services. “The 40 percent NOX reduction will make this facility's NOX emission rate lower than 70 percent of the plants in the United States. The improvement in plant efficiency will cut CO2 greenhouse gas emissions about 25,000 tons per year and pay for itself through reduced fuel costs."

A projected reduction of 25,000 tons of CO2 will result from each unit, which is the equivalent of taking 4,200 cars off the road.

“We are very pleased with the performance improvements realized with Northport Unit #3 which has exceeded our expectations,” said Richard Hohlman, National Grid Vice President of Generations Operations. “These investments illustrate National Grid and LIPA's commitment to improving the environment."

The “dense pack turbine efficiency” and NOX reduction (SOFA) modifications will be installed on the other three Northport units over the next three years. Installation on Northport Unit 4 will begin this fall. In addition, the SOFA modification was successfully installed on Port Jefferson Unit 4 and will be installed on Port Jefferson Unit 3 later this year.

About National Grid
National Grid is an international energy delivery company. In the U.S., 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 (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.

About LIPA
LIPA is a non-profit municipal electric provider which 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. LIPA outperformed all other overhead electric utilities in New York State for frequency of service interruptions, and ranked second for duration of service interruptions.

Statements of Support

“Cleaner energy isn’t just about protecting our air quality; it’s about protecting our wallets. By improving efficiency at Northport and Port Jefferson, we are reducing pollution and burning less fuel. I urge LIPA and National Grid to continue these kinds of investments in Long Island’s future.” -Congressman Tim Bishop

“For our state and region to succeed, reducing the impact energy usage has on the environment is essential and today’s announcement is a great step towards a better future for all of us. And while reducing reliance on fossil fuels is an important goal, it is imperative that we do so without harming our economy and this program is a wonderful piece of that solution. By undertaking this project, LIPA and National Grid are demonstrating that they are ready to be the energy-efficient leaders our region needs and I applaud them for their efforts.”-Senator John Flanagan

“I am pleased that LIPA and National Grid are moving forward with plans to reduce emissions and improve performance at existing power plants. The investment made will create a more efficient operation and will be of significant value to the public in terms of environmental protection and reduced energy costs for Long Island consumers.”- Senator Kenneth P. LaValle

“Working together, LIPA and National Grid are leading the way on efficiency and emerging energy technologies that will power our communities and our economy with cleaner electricity. Their dedication to cutting emissions will lower electricity bills, curb our addiction to dirty, high-carbon power and protect the precious Long Island environment for years to come.”- Senator Carl L. Marcellino

“I commend LIPA and National Grid for taking steps to improve the quality of the air that Brookhaven residents breathe and for finding a way to creatively finance this project so it does not impact the ratepayer.”-Brookhaven Supervisor Mark Lesko

“I thank the leadership of LIPA and National Grid for their significant investment in their long-term commitment to Port Jefferson plants. The modernization and green upgrades of both plants will protect area residents by immediately reducing pollution emissions and improving the plant's efficiency.”-Brookhaven Town Councilman Steve Fiore-Rosenfeld

“National Grid and LIPA's commitment to reducing carbon dioxide emissions at the Northport Power Plant indicates that in the Town of Huntington, we are once again on the forefront of energy efficiency. This initiative will improve air quality and energy efficiency in the Town of Huntington. I would like to commend National Grid and LIPA for their dedication to this initiative and I am looking forward to the completion of the nitrogen oxide reduction/turbine efficiency project.” –Huntington Town Councilwoman Susan Berland

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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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