Reduction Negates January, 2009 3.2% Hike

(Uniondale, N.Y.) - Long Island Power Authority President and CEO Kevin S. Law today announced that he is rolling back rates 3.2% for LIPA’s 1.1 million customers. The reduction will fully negate the 3.2% increase that took effect in January of this year.

The rate reduction is possible primarily as a result of lower-than budgeted fuel costs in 2009.

“In these challenging economic times, I am pleased to be able to provide this modest rate relief to our customers,” said Law. “With the price of oil and natural gas taking us on a wild ride in 2008, we planned for similar volatility in 2009.  Thus far, costs have been lower than budgeted and we are in a position to return those savings to our customers at a time when all of us could use a little good news.”

LIPA will lower it Power Supply Charge by 6.02%, which accounts for roughly half of customers’ bills, resulting in a net 3.2% bill decrease. LIPA’s Power Supply Charge includes the costs for fuel and power the Authority purchases on behalf of its customers, which accounts for more than 50% of LIPA’s nearly $4 billion annual operating budget.

The 3.2% decrease will take effect May 1st, 2009 and will save the typical LIPA customer approximately $5.11 a month.

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 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. 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