• 6,830 Megawatts - a New High - Available to Meet Demand
• Extreme Heat Could Push Peak Demand to 6,000 MWs for First Time
• Normal Summer Peak Demand Could Surpass 5,399 MWs
• Since 2001, LIPA Has Added Nearly 1,860 MWs of New Supply to Help Meet
  Ever-Growing Demand

New Cassel, NY - June 28, 2006 - The Long Island Power Authority (LIPA) announced today that the Authority will have a sufficient supply of electricity to meet both the base summer peak demand of about 5,399 megawatts (MW) for the Long Island Control Area (LICA), and an extreme peak demand that could be reached during extreme heat or extended periods of high temperatures and humidity of 5,963 MW.

During periods of extreme heat and humidity, when temperatures reach into the high 90s and above for several days, it’s entirely possible that the extreme peak electric demand on Long Island could exceed the 6,000 MW level for the first time in Long Island’s history.

LIPA will have 6,830 MWs of supply available from both on- and off-island resources for summer 2007.  LIPA has added about 1,860 MWs - including the new 660MW Neptune cable - of supply capability since 2001, which is the most for any region in the State.

“We’re entering this year’s summer season in excellent shape with our available energy supply,” said LIPA CEO/President Richard M. Kessel. “We’ve gone from a region teetering on the brink of blackouts just a few
years ago to a region with enough resources to meet an extreme demand with a comfortable margin to spare.

“It’s been an historic undertaking to get the Neptune cable and all of the new energy supply resources on line and infrastructure upgrades successfully completed over the years, and LIPA’s dedicated and hard working employees should be complimented for staying focused on getting the job done to keep Long Island’s lights on,” said Mr. Kessel.

“We can’t rest on our laurels, however,” said Mr. Kessel. “We need to press forward with the Caithness Long Island Energy Center project, which is currently under construction and will provide 350 megawatts of energy to an area that is one of the fastest growing locations on the Island; and we will need to redouble our efforts to get LIPA’s customers to use electricity more efficiently.”

$2.5 Billion in System Improvements
Mr. Kessel noted that by the end of 2006, LIPA invested over $2.5 billion in Transmission and Distribution System capital improvements since 1998.  System improvements included projects such as: new substations and substation upgrades; new transmission lines and transmission line upgrades; interconnections with new power supplies
such as the Cross-Sound  and Neptune cables and new on-island power supplies; and numerous distribution system upgrades to enhance the reliability of delivering electricity to LIPA’s customers.

10% Increase Summer Peak Demand
LIPA’s all time peak summer demand record of 5,792 MWs was set last year during extreme hot and humid weather conditions on August 3.  Last year’s record was 525 MWs, or 10%, higher that 2005’s peak of 5,267 MWs.

In fact, LIPA’s average summer peak demand island-wide has increased by 1,444 MWs, or 33%, since LIPA became Long Island’s non-profit electric utility in 1998, according to Mr. Kessel.  In 1998, the first summer that LIPA owned the T&D system, the peak demand was 4,348 MW.  LIPA now hits 4,700 to 5,000 megawatts as a matter of routine on normal hot summer days.

LIPA’s resource projection for summer 2007 considers that all on-island generation is operating without limitations, and that all of the tie-lines that carry electric supplies from off-island resources are operating without restrictions.

Air conditioning use is the biggest driver of electricity consumption during periods of high heat and humidity, with as much as 40 percent of the electricity used during heat waves attributed to both commercial and residential air conditioning use, according to LIPA.

LIPA Programs to Help Reduce Demand During Heat Waves
Despite the availability of a sufficient supply of energy, LIPA continues to urge customers to use energy efficiently during peak use periods.  For example, when LIPA anticipates an extremely high demand day, three significant demand side management programs can be activated to help reduce electricity consumption.

Each year, LIPA recruits major businesses to participate in its Peak Load Reduction Partnership.  Businesses participating in this program agree to reduce electricity use during peak demand hours, which usually occur between 2 PM and 6 PM, when requested.

The LIPAedge program involves nearly 30,000 residential and small businesses customers with central air conditioning (CAC) systems.  LIPA installed programmable thermostats on the CAC units that allow LIPA to remotely control the temperature setting and AC compressor. By elevating the temperature of the AC unit, or by turning off the compressor unit for 30 minutes every hour during the peak demand period, island-wide electric demand can be reduced.

LIPA also has a volunteer program called “Watts Going Down,” which recruits both residential and commercial customers who agree to reduce consumption on high demand days by following basic energy conservation measures.  Over 20,000 volunteers have been recruited for the program.

Combined, these programs can save about 79 MWs of electricity when activated and can help reduce peak demand.

Public appeals for conservation can also cause people to reduce energy use.

While LIPA has a sufficient supply of electricity to meet this year’s summer demand, everyone is still urged to use electricity wisely and conserve as much as possible during heat waves.

LIPA has a wide range of energy conservation and efficiency programs and helpful tips that can help consumers reduce electric use and lower monthly bills.  To find out more about these programs, customers can log on to www.lipower.org, or call LIPA’s Energy Infoline, at 1-800-692-2626.

LIPA, a non-profit municipal electric utility, owns the electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million electric customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens.  LIPA is the 3rd largest municipal electric utility in the nation in terms of
customers served and the 6th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not own
any on-island generation assets and does not provide natural gas service.

For additional documentation regarding this release please visit
http://www.lipower.org/newscenter/pr/2007/062807_summer.html

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LIPA Contact Information:
Media Relations: (516) 222-7700
Media Pager: (516) 525-LIPA
media.relations@lipower.org

LIPA News Center
http://www.lipower.org/newscenter