Statement by Richard M. Kessel, Chairman Long Island Power Authority LIPA has no intention of selling its Transmission and Distribution system to National Grid or any private entity at this time. As part of its recently concluded long-term strategic review, LIPA determined that it would not be prudent to privatize its T&D system now given the significantly higher capital and tax costs of a private entity. That determination was made public last December and approved by LIPA's Board of Trustees in January. LIPA's focus at this time is to review National Grid's acquisition of KeySpan to determine what impact, if any, it might have on LIPA's decision to extend the Management Services Agreement with KeySpan until the year 2013. We want to be assured that LIPA's customers will receive the same high quality of service and reliability they have received as a result of the Authority's acquisition of the region's T&D system in May 1998, and that LIPA's customers benefit from the proceeds and/or synergy savings from the National Grid/KeySpan transaction in the form of lower electric. LIPA, a non-profit municipal electric utility, owns the retail electric Transmission and Distribution System (T&D) on Long Island and provides electric service to over 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. In terms of customers served, LIPA is the 3rd largest municipal electric system in the nation and the 6th largest in terms of electricity delivered. LIPA does not provide natural gas service or own any on-island electric generation assets. ### Contact Information: Press Release 3/01/06 5:49 PM Eastern |
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